Document:

exv10w1

Exhibit 10.1

CREDIT AGREEMENT

among

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.,

TOWN SPORTS INTERNATIONAL, LLC,

VARIOUS LENDERS

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as ADMINISTRATIVE AGENT

 

Dated as of May 11, 2011

 

DEUTSCHE BANK SECURITIES INC.

and

KEYBANK NATIONAL ASSOCIATION,

as JOINT LEAD ARRANGERS and JOINT BOOK RUNNING MANAGERS,

and

KEYBANK NATIONAL ASSOCIATION,

as SYNDICATION AGENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	SECTION 1. Definitions and Accounting Terms	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.01	 	 	Defined Terms
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	SECTION 2. Amount and Terms of Credit	 	 	39	 
	 	 	 	 	 
	 	 	 	 
	 	2.01	 	 	The Commitments
	 	 	39	 
	 	2.02	 	 	Minimum Amount of Each Borrowing
	 	 	42	 
	 	2.03	 	 	Notice of Borrowing
	 	 	42	 
	 	2.04	 	 	Disbursement of Funds
	 	 	43	 
	 	2.05	 	 	Notes
	 	 	44	 
	 	2.06	 	 	Conversions
	 	 	44	 
	 	2.07	 	 	Pro Rata Borrowings
	 	 	45	 
	 	2.08	 	 	Interest
	 	 	45	 
	 	2.09	 	 	Interest Periods
	 	 	46	 
	 	2.10	 	 	Increased Costs, Illegality, etc.
	 	 	47	 
	 	2.11	 	 	Compensation
	 	 	49	 
	 	2.12	 	 	Change of Lending Office
	 	 	50	 
	 	2.13	 	 	Replacement of Lenders
	 	 	50	 
	 	2.14	 	 	Incremental Term Loan Commitments
	 	 	51	 
	 	2.15	 	 	Incremental RL Commitments
	 	 	54	 
	 	2.16	 	 	Extension of Term Loans and Revolving Loan Commitments
	 	 	56	 
	 	2.17	 	 	Reverse Dutch Auction Repurchases
	 	 	59	 
	 	2.18	 	 	Defaulting Lenders
	 	 	61	 
	 	 	 	 	 
	 	 	 	 
	SECTION 3. Letters of Credit	 	 	63	 
	 	 	 	 	 
	 	 	 	 
	 	3.01	 	 	Letters of Credit
	 	 	63	 
	 	3.02	 	 	Maximum Letter of Credit Outstandings; Final Maturities
	 	 	63	 
	 	3.03	 	 	Letter of Credit Requests; Minimum Stated Amount
	 	 	64	 
	 	3.04	 	 	Letter of Credit Participations
	 	 	65	 
	 	3.05	 	 	Agreement to Repay Letter of Credit Drawings
	 	 	66	 
	 	3.06	 	 	Increased Costs
	 	 	67	 
	 	3.07	 	 	Extended Revolving Loan Commitments
	 	 	68	 
	 	 	 	 	 
	 	 	 	 
	SECTION 4. Commitment Commission; Fees; Reductions of Commitment	 	 	68	 
	 	 	 	 	 
	 	 	 	 
	 	4.01	 	 	Fees
	 	 	68	 
	 	4.02	 	 	Voluntary Termination of Unutilized Revolving Loan Commitments
	 	 	70	 
	 	4.03	 	 	Mandatory Reduction of Commitments
	 	 	71	 
	 	 	 	 	 
	 	 	 	 
	SECTION 5. Prepayments; Payments; Taxes	 	 	72	 
	 	 	 	 	 
	 	 	 	 
	 	5.01	 	 	Voluntary Prepayments
	 	 	72	 

(i)

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	5.02	 	 	Mandatory Repayments
	 	 	73	 
	 	5.03	 	 	Method and Place of Payment
	 	 	78	 
	 	5.04	 	 	Net Payments
	 	 	78	 
	 	 	 	 	 
	 	 	 	 
	SECTION 6. Conditions Precedent to Credit Events on the Initial Borrowing Date	 	 	80	 
	 	 	 	 	 
	 	 	 	 
	 	6.01	 	 	Effective Date; Notes
	 	 	80	 
	 	6.02	 	 	Officer’s Certificate
	 	 	81	 
	 	6.03	 	 	Opinions of Counsel
	 	 	81	 
	 	6.04	 	 	Corporate Documents; Proceedings; etc.
	 	 	81	 
	 	6.05	 	 	Existing Holdings Notes Redemption and Discharge
	 	 	81	 
	 	6.06	 	 	Refinancing
	 	 	82	 
	 	6.07	 	 	Adverse Change, Approvals
	 	 	82	 
	 	6.08	 	 	Litigation
	 	 	82	 
	 	6.09	 	 	Pledge Agreement
	 	 	82	 
	 	6.10	 	 	Security Agreement
	 	 	83	 
	 	6.11	 	 	Subsidiaries Guaranty
	 	 	83	 
	 	6.12	 	 	Financial Statements; Pro Forma Financials; Projections; etc.
	 	 	83	 
	 	6.13	 	 	Solvency Certificate; Insurance Certificates
	 	 	83	 
	 	6.14	 	 	Fees, etc.
	 	 	84	 
	 	6.15	 	 	Public Debt Ratings
	 	 	84	 
	 	6.16	 	 	PATRIOT Act
	 	 	84	 
	 	 	 	 	 
	 	 	 	 
	SECTION 7. Conditions Precedent to All Credit Events	 	 	84	 
	 	 	 	 	 
	 	 	 	 
	 	7.01	 	 	No Default; Representations and Warranties
	 	 	84	 
	 	7.02	 	 	Notice of Borrowing; Letter of Credit Request
	 	 	84	 
	 	 	 	 	 
	 	 	 	 
	SECTION 8. Representations, Warranties and Agreements	 	 	85	 
	 	 	 	 	 
	 	 	 	 
	 	8.01	 	 	Organizational Status
	 	 	85	 
	 	8.02	 	 	Power and Authority
	 	 	86	 
	 	8.03	 	 	No Violation
	 	 	86	 
	 	8.04	 	 	Approvals
	 	 	86	 
	 	8.05	 	 	Financial Statements; Financial Condition; Undisclosed Liabilities;
Holdings’ Projections
	 	 	86	 
	 	8.06	 	 	Litigation
	 	 	88	 
	 	8.07	 	 	True and Complete Disclosure
	 	 	88	 
	 	8.08	 	 	Use of Proceeds; Margin Regulations
	 	 	88	 
	 	8.09	 	 	Tax Returns and Payments
	 	 	89	 
	 	8.10	 	 	Compliance with ERISA
	 	 	89	 
	 	8.11	 	 	The Security Documents
	 	 	91	 
	 	8.12	 	 	Properties
	 	 	91	 
	 	8.13	 	 	Capitalization
	 	 	91	 
	 	8.14	 	 	Subsidiaries
	 	 	92	 
	 	8.15	 	 	Compliance with Statutes, etc.
	 	 	92	 
	 	8.16	 	 	Investment Company Act
	 	 	92	 

(ii)

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	8.17	 	 	Environmental Matters
	 	 	92	 
	 	8.18	 	 	Labor Relations
	 	 	93	 
	 	8.19	 	 	Intellectual Property, etc.
	 	 	93	 
	 	8.20	 	 	Indebtedness
	 	 	93	 
	 	8.21	 	 	Insurance
	 	 	94	 
	 	8.22	 	 	Legal Names; Type of Organization (and Whether a Registered Organization);
Jurisdiction of Organization; etc.
	 	 	94	 
	 	 	 	 	 
	 	 	 	 
	SECTION 9. Affirmative Covenants	 	 	94	 
	 	 	 	 	 
	 	 	 	 
	 	9.01	 	 	Information Covenants
	 	 	94	 
	 	 	 	 	(a) Quarterly Financial Statements
	 	 	94	 
	 	 	 	 	(b) Annual Financial Statements
	 	 	95	 
	 	 	 	 	(c) Management Letters
	 	 	95	 
	 	 	 	 	(d) Budgets
	 	 	95	 
	 	 	 	 	(e) Officer’s Certificates
	 	 	95	 
	 	 	 	 	(f) Notice of Default, Litigation and Material Adverse Effect
	 	 	96	 
	 	 	 	 	(g) Environmental Matters
	 	 	96	 
	 	 	 	 	(h) Patriot Act
	 	 	97	 
	 	 	 	 	(i) Other Information
	 	 	97	 
	 	9.02	 	 	Books, Records and Inspections; Annual Meetings
	 	 	97	 
	 	9.03	 	 	Maintenance of Property; Insurance
	 	 	97	 
	 	9.04	 	 	Existence; Franchises
	 	 	98	 
	 	9.05	 	 	Compliance with Statutes, etc.
	 	 	98	 
	 	9.06	 	 	Compliance with Environmental Laws
	 	 	99	 
	 	9.07	 	 	ERISA
	 	 	99	 
	 	9.08	 	 	End of Fiscal Years; Fiscal Quarters
	 	 	100	 
	 	9.09	 	 	Interest Rate Protection
	 	 	100	 
	 	9.10	 	 	Payment of Taxes
	 	 	101	 
	 	9.11	 	 	Use of Proceeds
	 	 	101	 
	 	9.12	 	 	Additional Security; Further Assurances; etc.
	 	 	101	 
	 	9.13	 	 	Ownership of Subsidiaries; etc.
	 	 	102	 
	 	9.14	 	 	Maintenance of Ratings
	 	 	102	 
	 	9.15	 	 	Permitted Acquisitions
	 	 	102	 
	 	9.16	 	 	Cash on Hand at the Captive Insurance Company and the License Subsidiary
	 	 	103	 
	 	9.17	 	 	Contributions
	 	 	104	 
	 	9.18	 	 	Account Control Agreements
	 	 	104	 
	 	 	 	 	 
	 	 	 	 
	SECTION 10. Negative Covenants	 	 	104	 
	 	 	 	 	 
	 	 	 	 
	 	10.01	 	 	Liens
	 	 	104	 
	 	10.02	 	 	Consolidation, Merger, Purchase or Sale of Assets, etc.
	 	 	107	 
	 	10.03	 	 	Dividends
	 	 	109	 
	 	10.04	 	 	Indebtedness
	 	 	111	 
	 	10.05	 	 	Advances, Investments and Loans
	 	 	112	 
	 	10.06	 	 	Transactions with Affiliates
	 	 	115	 

(iii)

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	10.07	 	 	Interest Expense Coverage Ratio; Total Leverage Ratio
	 	 	116	 
	 	10.08	 	 	Limitations on Modifications of Certificate of Incorporation, By-Laws and
Certain Other Agreements, etc.
	 	 	116	 
	 	10.09	 	 	Limitation on Certain Restrictions on Subsidiaries
	 	 	118	 
	 	10.10	 	 	Limitation on Issuance of Capital Stock
	 	 	119	 
	 	10.11	 	 	Business, etc.
	 	 	119	 
	 	10.12	 	 	Change of Legal Names; Type of Organization (and Whether a Registered
Organization); Jurisdiction of Organization etc.
	 	 	120	 
	 	10.13	 	 	Capital Expenditures
	 	 	120	 
	 	 	 	 	 
	 	 	 	 
	SECTION 11. Events of Default	 	 	121	 
	 	 	 	 	 
	 	 	 	 
	 	11.01	 	 	Payments
	 	 	121	 
	 	11.02	 	 	Representations, etc.
	 	 	121	 
	 	11.03	 	 	Covenants
	 	 	121	 
	 	11.04	 	 	Default Under Other Agreements
	 	 	121	 
	 	11.05	 	 	Bankruptcy, etc.
	 	 	122	 
	 	11.06	 	 	ERISA
	 	 	122	 
	 	11.07	 	 	Security Documents
	 	 	123	 
	 	11.08	 	 	Guaranties
	 	 	123	 
	 	11.09	 	 	Judgments
	 	 	123	 
	 	11.10	 	 	Change of Control
	 	 	124	 
	 	 	 	 	 
	 	 	 	 
	SECTION 12. The Administrative Agent	 	 	124	 
	 	 	 	 	 
	 	 	 	 
	 	12.01	 	 	Appointment
	 	 	124	 
	 	12.02	 	 	Nature of Duties
	 	 	124	 
	 	12.03	 	 	Lack of Reliance on the Administrative Agent
	 	 	125	 
	 	12.04	 	 	Certain Rights of the Administrative Agent
	 	 	125	 
	 	12.05	 	 	Reliance
	 	 	126	 
	 	12.06	 	 	Indemnification
	 	 	126	 
	 	12.07	 	 	The Administrative Agent in its Individual Capacity
	 	 	126	 
	 	12.08	 	 	Holders
	 	 	127	 
	 	12.09	 	 	Resignation by the Administrative Agent
	 	 	127	 
	 	 	 	 	 
	 	 	 	 
	SECTION 13. Miscellaneous	 	 	128	 
	 	 	 	 	 
	 	 	 	 
	 	13.01	 	 	Payment of Expenses, etc.
	 	 	128	 
	 	13.02	 	 	Right of Setoff
	 	 	129	 
	 	13.03	 	 	Notices
	 	 	130	 
	 	13.04	 	 	Benefit of Agreement; Assignments; Participations
	 	 	130	 
	 	13.05	 	 	No Waiver; Remedies Cumulative
	 	 	132	 
	 	13.06	 	 	Payments Pro Rata
	 	 	133	 
	 	13.07	 	 	Calculations; Computations
	 	 	133	 
	 	13.08	 	 	GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
	 	 	134	 
	 	13.09	 	 	Counterparts
	 	 	135	 

(iv)

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	13.10	 	 	Effectiveness
	 	 	135	 
	 	13.11	 	 	Headings Descriptive
	 	 	136	 
	 	13.12	 	 	Amendment or Waiver; etc.
	 	 	136	 
	 	13.13	 	 	Survival
	 	 	138	 
	 	13.14	 	 	Domicile of Loans
	 	 	138	 
	 	13.15	 	 	Register
	 	 	138	 
	 	13.16	 	 	Confidentiality
	 	 	139	 
	 	13.17	 	 	PATRIOT Act
	 	 	140	 
	 	13.18	 	 	No Advisory or Fiduciary Responsibility
	 	 	140	 
	 	13.19	 	 	Interest Rate Limitation
	 	 	141	 
	 	 	 	 	 
	 	 	 	 
	SECTION 14. Credit Agreement Parties Guaranty	 	 	141	 
	 	 	 	 	 
	 	 	 	 
	 	14.01	 	 	Guaranty
	 	 	141	 
	 	14.02	 	 	Bankruptcy
	 	 	141	 
	 	14.03	 	 	Nature of Liability
	 	 	142	 
	 	14.04	 	 	Independent Obligation
	 	 	142	 
	 	14.05	 	 	Authorization
	 	 	142	 
	 	14.06	 	 	Reliance
	 	 	143	 
	 	14.07	 	 	Subordination
	 	 	143	 
	 	14.08	 	 	Waiver
	 	 	144	 
	 	14.09	 	 	Payments
	 	 	145	 
	 	14.10	 	 	Maximum Liability
	 	 	145	 

	 	 	 

	SCHEDULES
	 	 
	 
	 	 
	SCHEDULE I

	 	Commitments
	SCHEDULE II

	 	Lender Addresses
	SCHEDULE III

	 	Existing Letters of Credit
	SCHEDULE IV

	 	Real Property
	SCHEDULE V

	 	Plans
	SCHEDULE VI

	 	Subsidiaries
	SCHEDULE VII

	 	Existing Indebtedness
	SCHEDULE VIII

	 	Insurance
	SCHEDULE IX

	 	Legal Names, Type of Organization (and Whether a Registered Organization); Jurisdiction of Organization; etc.
	SCHEDULE X

	 	Existing Liens
	SCHEDULE XI

	 	Existing Investments
	SCHEDULE XII

	 	Reverse Dutch Auction Procedures
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	EXHIBIT A-1

	 	Notice of Borrowing
	EXHIBIT A-2

	 	Notice of Conversion/Continuation
	EXHIBIT B-1

	 	Initial Term Note
	EXHIBIT B-2

	 	Revolving Note
	EXHIBIT B-3

	 	Swingline Note

(v)

 

	 	 	 

	EXHIBIT B-4

	 	Incremental Term Note
	EXHIBIT C

	 	Letter of Credit Request
	EXHIBIT D

	 	Section 5.04(b)(ii) Certificate
	EXHIBIT E

	 	Opinion of Simpson Thacher & Bartlett LLP
	EXHIBIT F

	 	Officers’ Certificate
	EXHIBIT G

	 	Pledge Agreement
	EXHIBIT H

	 	Security Agreement
	EXHIBIT I

	 	Subsidiaries Guaranty
	EXHIBIT J

	 	Solvency Certificate
	EXHIBIT K

	 	Compliance Certificate
	EXHIBIT L

	 	Assignment and Assumption Agreement
	EXHIBIT M

	 	Joinder Agreement
	EXHIBIT N

	 	Subordination Provisions
	EXHIBIT O-1

	 	Incremental Term Loan Commitment Agreement
	EXHIBIT O-2

	 	Incremental RL Commitment Agreement

(vi)

 

          CREDIT AGREEMENT, dated as of May 11, 2011, among TOWN SPORTS INTERNATIONAL HOLDINGS, INC., a
Delaware corporation (“Holdings”), TOWN SPORTS INTERNATIONAL, LLC, a New York limited liability
company (the “Borrower”), the Lenders party hereto from time to time, and DEUTSCHE BANK
TRUST COMPANY AMERICAS, as administrative agent (in such capacity, the “Administrative
Agent”). All capitalized terms used herein and defined in Section 1 are used herein as
therein defined.

W I T N E S S E T H:

          WHEREAS, subject to and upon the terms and conditions set forth herein, the Lenders are
willing to make available to the Borrower the respective credit facilities provided for herein;

          NOW, THEREFORE, IT IS AGREED:

          SECTION 1. Definitions and Accounting Terms.

          1.01 Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of the terms defined):

          “Account” shall mean any Deposit Account or Securities Account.

          “Account Control Agreement” shall mean a “control agreement” in form and substance
reasonably acceptable to the Administrative Agent and containing terms regarding the treatment of
all cash, Cash Equivalents and other amounts on deposit in (or credited to) the respective Account
governed by such Account Control Agreement.

          “Acquired Entity or Business” shall mean either (x) the assets and liabilities
constituting a business, division or product line of any Person not already a Subsidiary of the
Borrower or (y) 100% of the Equity Interests of any such Person, which Person shall, as a result of
such stock acquisition, become a Wholly-Owned Domestic Subsidiary of the Borrower (or shall be
merged with and into the Borrower or a Subsidiary Guarantor, with the Borrower or such Subsidiary
Guarantor being the surviving Person), provided that any foreign operations of any such
Person may be held by one or more Foreign Subsidiaries of such Person to the extent otherwise
permitted under this Agreement.

          “Additional Security Documents” shall have the meaning provided in Section
9.12.

          “Adjustable Applicable Margins” shall have the meaning provided in the definition of
“Applicable Margin”.

          “Adjusted Consolidated Net Income” shall mean, for any period, Consolidated Net Income
for such period plus the sum of the amount of all net non-cash charges (including,

 

 

without
limitation, depreciation, amortization, deferred tax expense, non-cash interest expense and
non-cash stock or stock option compensation expense) and net non-cash losses which were included in
arriving at Consolidated Net Income for such period, less the amount of all net non-cash gains and
non-cash credits which were included in arriving at Consolidated Net Income for such period.

          “Adjusted Consolidated Working Capital” shall mean, at any time, Consolidated Current
Assets (but excluding therefrom all cash and Cash Equivalents) less Consolidated Current
Liabilities at such time.

          “Administrative Agent” shall mean DBTCA, in its capacity as Administrative Agent for
the Lenders hereunder, and shall include any successor to the Administrative Agent appointed
pursuant to Section 12.09.

          “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling (including, but not limited to, all directors and officers of such Person),
controlled by, or under direct or indirect common control with, such Person. A Person shall be
deemed to control another Person if such Person possesses, directly or indirectly, the power (i) to
vote 5% or more of the securities having ordinary voting power for the election of directors (or
equivalent governing body) of such Person or (ii) to direct or cause the direction of the
management and policies of such other Person, whether through the ownership of voting securities,
by contract or otherwise; provided, however, that neither the Administrative Agent
nor any Affiliate thereof shall be considered an Affiliate of Holdings or any Subsidiary thereof.

          “Agent-Related Person” shall have the meaning provided in Schedule XII.

          “Agreement” shall mean this Credit Agreement, as modified, supplemented, amended,
restated (including any amendment and restatement hereof), extended or renewed from time to time.

          “Applicable Excess Cash Flow Repayment Percentage” shall mean 75%; provided
that, so long as no Default or Event of Default exists on the respective Excess Cash Flow Payment
Date, (i) if the Secured Leverage Ratio as of the last day of the respective Excess Cash Flow
Payment Period is less than or equal to 3.00:1.00 but greater than 2.50:1.00, then the Applicable
Excess Cash Flow Repayment Percentage instead shall be 50%, (ii) if the Secured Leverage Ratio as
of the last day of the respective Excess Cash Flow Payment Period is less than or equal to
2.50:1.00 but greater than 2.00:1.00, then the Applicable Excess Cash Flow Repayment Percentage
instead shall be 25%, and (iii) if the Secured Leverage Ratio as of the last day of the respective
Excess Cash Flow Payment Period is less than or equal to 2.00:1.00, then the Applicable Excess Cash
Flow Repayment Percentage instead shall be 0%.

          “Applicable Margin” shall mean a percentage per annum equal to: (i) in the case of
Initial Term Loans maintained as (x) Base Rate Loans, 4.50%, and (y) Eurodollar Loans, 5.50%; (ii)
in the case of Revolving Loans and Swingline Loans maintained as (x) Base Rate Loans, initially
4.50%, and (y) Eurodollar Loans, initially 5.50%; (iii) in the case of Swingline
Loans, initially 4.50%; and (iv) in the case of any Type of Incremental Term Loan of a given
Tranche that is not an Initial Term Loan, that percentage per annum set forth in, or calculated in

-2-

 

accordance with, Section 2.14 and the respective Incremental Term Loan Commitment
Agreement. From and after each day of delivery of any certificate delivered in accordance with
the first sentence of the following paragraph indicating an entitlement to a different margin for
any Revolving Loans or Swingline Loans than that described in the immediately preceding sentence
(each, a “Start Date”) to and including the applicable End Date described below, the
Applicable Margins for such Tranches of Loans (hereinafter, the “Adjustable Applicable
Margins”) shall be those set forth below opposite the Secured Leverage Ratio indicated to have
been achieved in any certificate delivered in accordance with the following sentences:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving Loan and
	 	 	Revolving Loan	 	Swingline Loan
	Secured Leverage Ratio	 	Eurodollar Margin	 	Base Rate Margin
	Greater than 3.00 to 1.00
	 	 	5.50	%	 	 	4.50	%
	 
	 	 	 	 	 	 	 	 
	Greater than 2.75 to 1.00
but less than or equal to 3.00 to 1.00
	 	 	5.25	%	 	 	4.25	%
	 
	 	 	 	 	 	 	 	 
	Less than or equal to 2.75 to 1.00
	 	 	5.00	%	 	 	4.00	%

          The Secured Leverage Ratio used in a determination of Adjustable Applicable Margins shall be
determined based on the delivery of a certificate of Holdings (each, a “Quarterly Pricing
Certificate”) by an Authorized Financial Officer of Holdings to the Administrative Agent (with
a copy to be sent by the Administrative Agent to each Lender), within 45 days after the last day of
any fiscal quarter of Holdings (or within 90 days after the last day of the fourth fiscal quarter
of Holdings). The Quarterly Pricing Certificate shall set forth the calculation of the Secured
Leverage Ratio as at the last day of the Test Period ended immediately prior to the relevant Start
Date and the Adjustable Applicable Margins which shall be thereafter applicable (until such
Adjustable Applicable Margins are changed or cease to apply in accordance with the following
sentences). The Adjustable Applicable Margins so determined shall apply, except as set forth in
the succeeding sentence, from the relevant Start Date to the earlier of (x) the date on which the
next Quarterly Pricing Certificate is delivered to the Administrative Agent or (y) the date which
is 45 days (or 90 days in the case of the fourth fiscal quarter of Holdings) following the last day
of the fiscal quarter of Holdings for which the Adjustable Applicable Margins were most recently
determined pursuant to this definition (such earlier date, the “End Date”), at which time,
if no Quarterly Pricing Certificate has been delivered to the Administrative Agent indicating an
entitlement to new Adjustable Applicable Margins (and thus commencing a new Start Date), the
Adjustable Applicable Margins shall be those set forth in the first sentence of this definition
(such Adjustable Applicable Margins as so determined, the “Highest Adjustable Applicable
Margins”). Notwithstanding anything to the contrary contained above in this definition, (A)
the Adjustable Applicable Margins for Revolving Loans and Swingline Loans shall be the Highest
Adjustable Applicable Margins (x) at all times during which an Event of Default shall occur and be
continuing and (y) at all times prior to the date of delivery of the financial statements of
Holdings pursuant to Section 9.01(a) for the fiscal quarter of Holdings ending September
30, 2011, (B) the Applicable Margins in respect of any Tranche of Term Loans shall be increased as,
and to the extent, necessary to comply with Section 2.14(a), (C) the Applicable Margins and
Adjustable Applicable Margins in respect of Revolving
Loans and
Swingline Loans shall be increased as, and to the extent, necessary to comply with
Section 2.15(a), (D) the Applicable Margins in respect of any Tranche of Revolving Loans
and 

-3-

 

Swingline Loans made pursuant to any Extended Revolving Loan Commitments shall be the
applicable percentages per annum set forth in the relevant Extension Offer and (E) the Applicable
Margins in respect of any Tranche of Extended Term Loans shall be the applicable percentages per
annum set forth in the relevant Extension Offer.

          Notwithstanding anything to the contrary contained in this Agreement, if it is subsequently
determined that the Secured Leverage Ratio set forth in any Quarterly Pricing Certificate delivered
to the Administrative Agent is inaccurate for any reason and the result thereof is that the RL
Lenders received interest or Letter of Credit Fees for any period at an Applicable Margin that is
less than that which would have been applicable thereto had the Secured Leverage Ratio been
accurately determined, then the Borrower shall pay to the Administrative Agent for the account of
each RL Lender such additional interest and/or Letter of Credit Fees for such period in an amount
equal to the remainder of (x) the amount of interest and/or Letter of Credit Fees to which such RL
Lenders would have received had the Secured Leverage Ratio been correctly computed minus
(y) the amount of interest and/or Letter of Credit Fees actually paid to such RL Lenders for such
period, together with interest on such additional amounts (to the extent permitted by law) for such
period at a rate per annum equal to the Base Rate that was in effect from to time during such
period plus the Applicable Margin during such period (reflecting the correct Secured Leverage
Ratio) for Revolving Loans maintained as Base Rate Loans. Such additional interest and/or Letter
of Credit Fees shall be due and payable within three (3) Business Days after the Borrower obtains
knowledge (including by way of notification thereof from the Administrative Agent or the Required
Lenders) that the Secured Leverage Ratio was inaccurately computed. Upon the payment in full of
any accrued additional interest and/or Letter of Credit Fees pursuant to this paragraph, any
Default or Event of Default that may have arisen solely as a result of the Quarterly Pricing
Certificate miscalculating the Secured Leverage Ratio for purposes of calculating the Applicable
Margin (but not for purposes of calculating the Secured Leverage Ratio under Section 10.07
or any other Section of this Agreement or as a result of any other inaccuracy or misrepresentation
set forth in such Quarterly Pricing Certificate) shall be deemed cured.

          “Applicable Threshold Price” shall have the meaning provided in Schedule XII.

          “Asset Sale” shall mean any sale, transfer or other disposition by Holdings or any of
its Subsidiaries to any Person (including by way of redemption by such Person) other than to a
Credit Party of any asset (including, without limitation, any capital stock or other securities of,
or Equity Interests in, another Person) other than sales of assets pursuant to Sections
10.02(ii), (vi), (vii), (x), (xi), (xii) and
(xiii).

          “Assignment and Assumption Agreement” shall mean an Assignment and Assumption
Agreement substantially in the form of Exhibit L (appropriately completed).

          “Auction” shall have the meaning provided in Section 2.17.

          “Auction Amount” shall have the meaning provided in Schedule XII.

          “Auction Assignment and Assumption” shall have the meaning provided in Schedule
XII.

-4-

 

          “Auction Manager” shall have the meaning provided in Section 2.17.

          “Auction Notice” shall have the meaning provided in Schedule XII.

          “Authorized Financial Officer” of any Person shall mean the chief financial officer,
the vice-president finance, the treasurer or assistant treasurer of such Person or, if there is no
chief financial officer, vice-president finance, treasurer or assistant treasurer of such Person,
any other senior executive officer of such Person designated by the president of such Person as
being a financial officer authorized to deliver and certify financial information under this
Agreement.

          “Authorized Officer” shall mean, with respect to (i) delivering Notices of Borrowing,
Notices of Conversion/Continuation and similar notices, any person or persons that has or have been
authorized by the board of directors of the Borrower to deliver such notices pursuant to this
Agreement and that has or have appropriate signature cards on file with the Administrative Agent,
the Swingline Lender or the respective Issuing Lender, (ii) delivering financial information and
officer’s certificates pursuant to this Agreement, an Authorized Financial Officer of Holdings or
the Borrower, and (iii) any other matter in connection with this Agreement or any other Credit
Document, any officer (or a person or persons so designated by any two officers) of Holdings or the
Borrower.

          “Bankruptcy Code” shall have the meaning provided in Section 11.05.

          “Base Rate” shall mean, at any time, the highest of (i) the Prime Lending Rate at such
time, (ii) 1/2 of 1% in excess of the overnight Federal Funds Rate at such time, (iii) the
Eurodollar Rate for a Eurodollar Loan with a one-month Interest Period commencing on such day
plus 1.00%, (iv) with respect to Initial Term Loans, 2.50%, and (v) with respect to any
Tranche of Incremental Term Loans, such percentage as may be agreed to in the respective
Incremental Term Loan Commitment Agreement. For purposes of this definition, the Eurodollar Rate
shall be determined using the Eurodollar Rate as otherwise determined by the Administrative Agent
in accordance with the definition of Eurodollar Rate, except that (x) if a given day is a Business
Day, such determination shall be made on such day (rather than two Business Days prior to the
commencement of an Interest Period) or (y) if a given day is not a Business Day, the Eurodollar
Rate for such day shall be the rate determined by the Administrative Agent pursuant to preceding
clause (x) for the most recent Business Day preceding such day. Any change in the Base Rate due to
a change in the Prime Lending Rate, the Federal Funds Rate or such Eurodollar Rate shall be
effective as of the opening of business on the day of such change in the Prime Lending Rate, the
Federal Funds Rate or such Eurodollar Rate, respectively.

          “Base Rate Loan” shall mean (i) each Swingline Loan and (ii) each other Loan
designated or deemed designated as such by the Borrower at the time of the incurrence thereof or
conversion thereto as provided herein.

          “Borrower” shall have the meaning set forth in the first paragraph of this Agreement.

-5-

 

          “Borrowing” shall mean the borrowing of one Type of Loan of a single Tranche from all
the Lenders having Commitments of the respective Tranche (or from the Swingline Lender in the case
of Swingline Loans) on a given date (or resulting from a conversion or conversions on such date)
having in the case of Eurodollar Loans the same Interest Period, provided that Base Rate
Loans incurred pursuant to Section 2.10(b) shall be considered part of the related
Borrowing of Eurodollar Loans.

          “BRS” shall mean Bruckmann, Rosser, Sherrill & Co. Management, L.P, a Delaware limited
partnership.

          “BRS Investors” shall mean collectively: BRS; Bruce Bruckmann, an individual and his
family members; Elizabeth McShane, an individual; Beverly Place, an individual; Kurt Bruckmann, an
individual; William Bruckmann, an individual; BCB Family Partners, L.P.; NAZ Family Partners, L.P.;
Bruce C. Bruckmann Family 1996 Trust; Bruce C. Bruckmann 1999 Gift Trust; Bruce C. Bruckmann 2007
Gift Trust; Nancy Zweng, an individual; Harold O. Rosser, an individual, his family members and any
trust, the beneficiaries of which include only him, his spouse, parents, siblings, or direct lineal
descendants; Stephen Sherrill, an individual, his family members and any trust, the beneficiaries
of which include only him, his spouse, parents, siblings, or direct lineal descendants; Paul D.
Kaminski, an individual; and Merrill Lynch Pierce Fenner & Smith, Custodian for the Benefit of Paul
D. Kaminski IRA.

          “Business Day” shall mean (i) for all purposes other than as covered by clause (ii)
below, any day except Saturday, Sunday and any day which shall be in New York, New York, a legal
holiday or a day on which banking institutions are authorized or required by law or other
government action to close and (ii) with respect to all notices and determinations in connection
with, and payments of principal and interest on, Eurodollar Loans, any day which is a Business Day
described in clause (i) above and which is also a day for trading by and between banks in U.S.
dollar deposits in the London interbank Eurodollar market.

          “Calculation Period” shall mean, with respect to any Permitted Acquisition, any
Significant Asset Sale or any other event expressly required to be calculated on a Pro Forma Basis
pursuant to the terms of this Agreement, the Test Period most recently ended prior to the date of
any such Permitted Acquisition, Significant Asset Sale or other event for which financial
statements are available.

          “Capital Expenditures” shall mean, with respect to any Person, all expenditures by
such Person which should be capitalized in accordance with generally accepted accounting principles
and, without duplication, the amount of Capitalized Lease Obligations incurred by such Person.

          “Capitalized Lease Obligations” shall mean, with respect to any Person, all rental
obligations of such Person which, under generally accepted accounting principles, are or will be
required to be capitalized on the books of such Person, in each case taken at the amount thereof
accounted for as indebtedness in accordance with such principles.

          “Captive Insurance Company” shall mean TSI Insurance, Inc., a New York captive
insurance company and a Wholly-Owned Domestic Subsidiary of the Borrower.

-6-

 

          “Cash Equivalents” shall mean, as to any Person, (i) securities issued or directly and
fully guaranteed or insured by the United States or any agency or instrumentality thereof
(provided that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than six months from the date of acquisition, (ii)
marketable direct obligations issued by any state of the United States or any political subdivision
of any such state or any public instrumentality thereof maturing within six months from the date of
acquisition thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from either S&P or Moody’s, (iii) Dollar denominated time deposits, certificates of
deposit and bankers acceptances of any Lender or any commercial bank having, or which is the
principal banking subsidiary of a bank holding company having, a long-term unsecured debt rating of
at least “A” or the equivalent thereof from S&P or “A2” or the equivalent thereof from Moody’s with
maturities of not more than six months from the date of acquisition by such Person, (iv) repurchase
obligations with a term of not more than seven days for underlying securities of the types
described in clause (i) above entered into with any bank meeting the qualifications specified in
clause (iii) above, (v) commercial paper issued by any Person incorporated in the United States
rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody’s and in each case maturing not more than six months after the date of acquisition by such
Person, (vi) investments in money market funds substantially all of whose assets are comprised of
securities of the types described in clauses (i) through (v) above, and (vii) in the case of
Foreign Subsidiaries of the Borrower only (in addition to instruments referred to in clauses (i)
through (vi) above), instruments equivalent to those referred to in clauses (i) through (vi) above
denominated in a foreign currency, which are substantially equivalent in credit quality and tenor
to those referred to above and customarily used by businesses for short term cash management
purposes in any jurisdiction outside the United States to the extent reasonably required in
connection with any business conducted by any Foreign Subsidiary of the Borrower organized in such
jurisdiction.

          “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as the same has been amended and may hereafter be amended from time to time,
42 U.S.C. § 9601 et seq.

          “Change of Control” shall mean any of (i) from and after the Effective Date (x) any
“Person” or “Group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act as in
effect on the Effective Date), other than BRS, the BRS Investors and their Permissible Transferees,
(A) is or shall become the “beneficial owners” (as defined in Rules 13(d)-3 and 13(d)-5 under the
Exchange Act as in effect on the Effective Date), directly or indirectly, of 35% or more on a fully
diluted basis of the Voting Equity Interests of Holdings, unless BRS, the BRS Investors and their
Permissible Transferees are the “beneficial owners” (as so defined) of at least a majority of such
Voting Equity Interests on a fully diluted basis, or (B) shall have obtained the power (whether or
not exercised) to elect a majority of Holdings’ directors or (y) the board of directors of Holdings
shall cease to consist of a majority of Continuing Directors, (ii) Holdings shall cease to own 100%
of the Equity Interests of the Borrower, or (iii) a “change of control” (or similar term) pursuant
to, and as defined in, any Permitted Unsecured Debt Document shall occur.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder. Section references to the

-7-

 

Code are to
the Code as in effect at the date of this Agreement and any subsequent provisions of the Code
amendatory thereof, supplemental thereto or substituted therefor.

          “Collateral” shall mean all property (whether real or personal) with respect to which
any security interests have been granted (or purported to be granted) pursuant to any Security
Document, including, without limitation, all Pledge Agreement Collateral, all Security Agreement
Collateral and all cash and Cash Equivalents delivered as collateral pursuant to Section
2.18(a), 4.02(c), 5.02 or 11.

          “Collateral Agent” shall mean the Administrative Agent acting as collateral agent for
the Secured Creditors pursuant to the Security Documents.

          “Commitment” shall mean any of the commitments of any Lender, i.e., an Initial Term
Loan Commitment, an Incremental Term Loan Commitment or a Revolving Loan Commitment.

          “Commitment Commission” shall have the meaning provided in Section 4.01(a).

          “Consolidated Current Assets” shall mean, at any time, the consolidated current assets
of Holdings and its Subsidiaries at such time. 

          “Consolidated Current Liabilities” shall mean, at any time, the consolidated current
liabilities of Holdings and its Subsidiaries at such time, but excluding the current portion of any
Indebtedness under this Agreement and the current portion of any other long-term Indebtedness which
would otherwise be included therein. 

          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period (without giving effect to (w) any extraordinary gains, (x) any non-cash income or gains
(other than any non-cash income that may be recognized over time in accordance with generally
accepted accounting principles in the U.S. in the ordinary course of business of the Borrower and
its Subsidiaries on a basis consistent with past practices where cash payments to the Borrower and
its Subsidiaries are made upfront in respect of initiation fees, personal training coupons and
similar types of programs), (y) any after-tax effect of income or loss from the early
extinguishment of (i) Indebtedness (including obligations under any Interest Rate Protection
Agreements or Other Hedging Agreements) or (ii) other derivative instruments, and (z) any gains or
losses from sales of assets other than inventory sold in the ordinary course of business), adjusted
by (A) adding thereto (in each case to the extent deducted in determining Consolidated Net Income
for such period and not otherwise excluded from the calculation of Consolidated EBITDA pursuant to
clauses (w), (x), (y) and (z) above in this definition), without duplication, the amount of (i)
total interest expense (inclusive of amortization of deferred financing fees and other original
issue discount and banking fees, charges and commissions (e.g., letter of credit fees and
commitment fees)) of Holdings and its Subsidiaries determined on a consolidated basis for such
period, (ii) provision for taxes based on income and foreign withholding taxes for Holdings and its
Subsidiaries determined on a consolidated basis for such period, (iii) all depreciation and
amortization expense of Holdings and its Subsidiaries determined on a
consolidated basis for such period, (iv) the amount of all Transaction Expenses for such
period, (v) the amount of all deferred rent expense of Holdings and its Subsidiaries determined on a

-8-

 

consolidated basis for such period, (vi) the amount of all non-cash deferred compensation expense
of Holdings and its Subsidiaries determined on a consolidated basis for such period resulting from
the issuance of capital stock, stock options or stock appreciation rights to former or current
directors, officers or employees of Holdings or any Subsidiary of Holdings, or the exercise of such
options or rights, (vii) the amount of all non-cash deferred compensation expense of Holdings and
its Subsidiaries determined on a consolidated basis for such period resulting from the repurchase
of capital stock, options and rights described in preceding clause (vi), (viii) the amount of all
non-cash charges of Holdings and its Subsidiaries determined on a consolidated basis for such
period resulting from discontinued operations to the extent otherwise permitted by FAS 141 to the
extent that same were deducted in arriving at Consolidated Net Income for such period, (ix) the
amount of all non-cash charges relating to the impairment or write-down of fixed assets, intangible
assets or goodwill for such period, (x) the amount of all other non-cash charges of Holdings and
its Subsidiaries determined on a consolidated basis for such period, and (xi) the amount of all
prepayment premiums paid in connection with any retirement of Indebtedness, and (B) subtracting
therefrom (to the extent not otherwise deducted in determining Consolidated Net Income for such
period) (i) the amount of any payment of rent during such period that was deferred in a previous
period and (ii) the amount of all cash payments and cash charges made during such period relating
to any non-cash charges taken in a previous period pursuant to preceding clause (A)(viii) or (x).
For the avoidance of doubt, it is understood and agreed that, to the extent any amounts are
excluded from Consolidated Net Income by virtue of the proviso to the definition thereof contained
herein, add backs to Consolidated Net Income in determining Consolidated EBITDA as provided above
shall be limited (or denied) in a fashion consistent with the proviso to the definition of
Consolidated Net Income contained herein.

          “Consolidated Indebtedness” shall mean, at any time, the remainder of (A) the sum of
(without duplication) (i) all Indebtedness of Holdings and its Subsidiaries (on a consolidated
basis) as would be required to be reflected as debt or Capitalized Lease Obligations on the
liability side of a consolidated balance sheet of Holdings and its Subsidiaries in accordance with
GAAP, (ii) all Indebtedness of Holdings and its Subsidiaries of the type described in clause (ii)
of the definition of Indebtedness and (iii) all Contingent Obligations of Holdings and its
Subsidiaries in respect of Indebtedness of any third Person of the type referred to in preceding
clauses (i) and (ii); provided that the aggregate amount available to be drawn
(i.e., unfunded amounts) under all letters of credit, bankers’ acceptances, bank
guaranties, surety bonds and similar obligations issued for the account of Holdings or any of its
Subsidiaries (but excluding, for avoidance of doubt, all unpaid drawings or other matured monetary
obligations owing in respect of such letters of credit, bankers’ acceptances, bank guaranties,
surety bonds and similar obligations) shall not be included in any determination of “Consolidated
Indebtedness” minus (B) the lesser of (x) the aggregate amount of all Unrestricted cash and
Cash Equivalents on hand of the Borrower and the Subsidiary Guarantors at such time and (y)
$25,000,000.

          “Consolidated Interest Expense” shall mean, for any period, (i) the total consolidated
cash interest expense of Holdings and its Subsidiaries (including, without limitation, all
commissions, discounts and other commitment and banking fees and charges (e.g., fees with
respect to letters of credit, Interest Rate Protection Agreements and Other Hedging
Agreements) for such period (calculated without regard to any limitations on payment thereof),
adjusted to exclude (to the extent same would otherwise be included in the calculation above in

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this clause (i)) the amortization of any deferred financing costs and original issue discount for
such period, plus (ii) without duplication, that portion of Capitalized Lease Obligations
of Holdings and its Subsidiaries on a consolidated basis representing the interest factor for such
period, minus (iii) the aggregate amount of cash interest income of Holdings and its Subsidiaries
during such period.

          “Consolidated Net Income” shall mean, for any period, the net income (or loss) of
Holdings and its Subsidiaries for such period, determined on a consolidated basis (after any
deduction for minority interests), provided that (i) in determining Consolidated Net
Income, the net income of any other Person which is not a Subsidiary of Holdings or is accounted
for by Holdings by the equity method of accounting shall be included only to the extent of the
payment of cash dividends or cash distributions by such other Person to Holdings or a Subsidiary
thereof during such period, (ii) the net income of any Subsidiary of Holdings (other than the
Borrower) shall be excluded to the extent that the declaration or payment of cash dividends or
similar cash distributions by that Subsidiary of that net income is not at the date of
determination permitted by operation of its charter or any agreement, instrument or law applicable
to such Subsidiary, (iii) except for determinations expressly required to be made on a Pro
Forma Basis, the net income (or loss) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or all or substantially all of the property or assets of such Person are
acquired by a Subsidiary of the Borrower and (iv) for purposes of calculating the Interest Expense
Coverage Ratio, cash interest income of Holdings and its Subsidiaries shall be excluded.

          “Consolidated Secured Indebtedness” shall mean, at any time, the aggregate amount of
all Consolidated Indebtedness of Holdings and its Subsidiaries at such time that is secured by a
Lien on any asset of Holdings and/or any of its Subsidiaries (including, without limitation, the
Obligations).

          “Contingent Obligation” shall mean, as to any Person, without duplication, any
obligation of such Person as a result of such Person being a general partner of any other Person,
unless the underlying obligation is expressly made non-recourse as to such general partner, and any
obligation of such Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends
or other obligations (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor, (ii) to advance or supply funds
(x) for the purchase or payment of any such primary obligation or (y) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary obligor to make
payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof; provided, however, that the
term Contingent Obligation shall not include endorsements of instruments for deposit or collection
in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be
an amount equal to the stated or determinable amount of the primary obligation in respect of which
such Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is required to
perform thereunder) as determined by such Person in good faith.

-10-

 

          “Continuing Directors” shall mean the directors of Holdings on the Effective Date and
each other director of Holdings if such director’s nomination for election to the board of
directors of Holdings is recommended by a majority of the then Continuing Directors.

          “Credit Agreement Party” shall mean and include Holdings and the Borrower.

          “Credit Agreement Party Guaranty” shall mean the guaranty of the Credit Agreement
Parties pursuant to Section 14.

          “Credit Documents” shall mean this Agreement and, after the execution and delivery
thereof pursuant to the terms of this Agreement, each Note, the Subsidiaries Guaranty, each
Security Document, each Joinder Agreement, each Incremental Term Loan Commitment Agreement and each
Incremental RL Commitment Agreement.

          “Credit Event” shall mean the making of any Loan or the issuance of any Letter of
Credit.

          “Credit Party” shall mean Holdings, the Borrower and each Subsidiary Guarantor.

          “Cumulative Retained Excess Cash Flow Amount” shall mean, initially, $0, which amount
(x) shall be increased on each Excess Cash Flow Payment Date, so long as any payment required
pursuant to Section 5.02(e) has been made on such date, by an amount equal to the remainder
of (A) the amount of Excess Cash Flow for the respective Excess Cash Flow Payment Period
minus (B) the Applicable Excess Cash Flow Repayment Percentage of Excess Cash Flow for the
respective Excess Cash Flow Payment Period, and (y) shall be reduced by the sum of (I) the
aggregate amount of Dividends theretofore paid or made pursuant to Section 10.03(vii), (II)
the aggregate amount of all Investments theretofore made pursuant to Section 10.05(xiv) and
(III) the aggregate amount of all cash payments theretofore made pursuant to Section
10.08(i)(z).

          “DBTCA” shall mean Deutsche Bank Trust Company Americas, in its individual capacity,
and any successor corporation thereto by merger, consolidation or otherwise.

          “Default” shall mean any event, act or condition which with notice or lapse of time,
or both, would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

          “Deposit Account” shall mean a demand, time, savings, passbook or like account with a
bank, savings and loan association, credit union or like organization.

          “Designated Insured Risks” shall mean those categories of risks that are not covered
by the Borrower’s and its Subsidiaries third party insurance coverage required to be maintained
pursuant to Section 9.03 (such as, but not limited to, war, sabotage, terrorism,
reputation and deceptive practices and other coverages in excess of those amounts required to
be maintained by such Section 9.03) and which are not generally available at commercially
reasonable rates as determined in good faith by the Board of Directors of the Borrower.

-11-

 

          “Discount Range” shall have the meaning provided in Schedule XII.

          “Dividend” shall mean any dividend or other distribution (whether in cash, securities
or other property (other than common Equity Interests of Holdings) with respect to any Equity
Interest of Holdings or any of its Subsidiaries, or any payment (whether in cash, securities or
other property (other than common Equity Interests of Holdings)) including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such Equity Interest, or on account of any return of capital to the
stockholders, partners or members (or the equivalent Person thereof) of Holdings or any of its
Subsidiaries.

          “Dollars” and the sign “$” shall each mean freely transferable lawful money of
the United States.

          “Domestic Subsidiary” shall mean each Subsidiary of the Borrower incorporated or
organized in the United States or any State thereof.

          “Drawing” shall have the meaning provided in Section 3.05(b).

          “Effective Date” shall have the meaning provided in Section 13.10.

          “Eligible Transferee” shall mean and include a commercial bank, an insurance company,
a finance company, a financial institution, any fund that invests in loans or any other “accredited
investor” (as defined in Regulation D of the Securities Act), but excluding individuals and
Holdings and its Subsidiaries (except to the limited extent permitted by Section 2.17) and
Affiliates; provided, however, notwithstanding the foregoing, one or more
Affiliates of Holdings (including, for the avoidance of doubt, all directors and officers of
Holdings or any of its Subsidiaries) that are neither Holdings nor any of its Subsidiaries, but may
include individuals, may be an Eligible Transferee for up to $3,000,000 in the aggregate of
outstanding Term Loans at any time for all such Affiliates so long as any such Affiliate shall have
waived its right to (x) receive (and by becoming a Lender hereunder hereby waives its right to
receive) information (other than administrative information such as notifications under Section
2) not prepared by (or on behalf of) Holdings or any of its Subsidiaries from the
Administrative Agent or any Lender (or any advisor, agent or counsel thereof) under or in
connection with the Credit Documents and (y) attend (and by becoming a Lender hereunder hereby
waives its right to attend) any meeting or conference call (or any portion thereof) with the
Administrative Agent or any Lender but in which neither Holdings nor any of its Subsidiaries
participates.

          “End Date” shall have the meaning set forth in the definition of “Applicable
Margin”.

          “Environmental Claims” shall mean any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating in any way to any
Environmental Law or any permit issued, or any approval given, under any such Environmental
Law (hereafter, “Claims”), including, without limitation, (a) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (b) any and all Claims
by any

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third party seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief in connection with alleged injury or threat of injury to health, safety or the
environment due to the presence of Hazardous Materials.

          “Environmental Law” shall mean any federal, state, foreign or local statute, law,
rule, regulation, ordinance, code, guideline, policy and rule of common law now or hereafter in
effect and in each case as amended, and any judicial or administrative interpretation thereof,
including any judicial or administrative order, consent decree or judgment, relating to the
environment, employee health and safety or Hazardous Materials, including, without limitation,
CERCLA; the Resource Conservation and Recovery Act, 42 U.S.C § 6901 et seq.; the
Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances
Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act, 42 U.S.C. § 7401
et seq.; the Safe Drinking Water Act, 42 U.S.C. § 3803 et seq.; the
Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the Emergency Planning and the
Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et seq.; the Hazardous
Material Transportation Act, 49 U.S.C. § 1801 et seq.; the Occupational Safety and
Health Act, 29 U.S.C. § 651 et seq.; and any state and local or foreign
counterparts or equivalents, in each case as amended from time to time.

          “Equity Interests” of any Person shall mean any and all capital stock, shares,
interests, rights to purchase, warrants, options, participation or other equivalents of or interest
in (however designated) equity of such Person, including any common stock, any preferred stock, any
limited or general partnership interest and any limited liability company membership interest.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

          “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which
together with Holdings or a Subsidiary of Holdings is deemed to be a “single employer” within the
meaning of Section 414(b), (c), (m) or (o) of the Code.

          “Eurodollar Loan” shall mean each Loan (other than a Swingline Loan) designated as
such by the Borrower at the time of the incurrence thereof or conversion thereto.

          “Eurodollar Rate” shall mean, with respect to any Borrowing of Eurodollar Loans for
any Interest Period, the highest of (i) (a) the rate per annum determined by the Administrative
Agent at approximately 11:00 a.m. (London Time) on the date that is two Business Days prior to the
commencement of such Interest Period by reference to the Reuters Screen LIBOR01 for deposits in
Dollar (or such other comparable page as may, in the opinion of the Administrative Agent, replace
such page for the purpose of displaying such rates) for a period equal to such Interest Period;
provided that to the extent that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the “Eurodollar Rate” shall be the interest rate per annum
determined by the Administrative Agent to be the average of the rates per annum at which
deposits in Dollars are offered for such relevant Interest Period to major banks in the London
interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London
time) on the date that is two Business Days prior to the beginning of such Interest Period, divided
by (b) a percentage equal to 100% minus the then stated maximum rate of all

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reserve requirements
(including, without limitation, any marginal, emergency, supplemental, special or other reserves
required by applicable law) applicable to any member bank of the Federal Reserve System in respect
of Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D), (ii) with respect to Initial Term Loans, 1.50%, and (iii) with
respect to any Tranche of Incremental Term Loans, such percentage as may be agreed to in the
respective Incremental Term Loan Commitment Agreement.

          “Event of Default” shall have the meaning provided in Section 11.

          “Excess Cash Flow” shall mean, for any period, the remainder of (a) the sum of,
without duplication, (i) Adjusted Consolidated Net Income for such period and (ii) the decrease, if
any, in Adjusted Consolidated Working Capital from the first day to the last day of such period
(or, in the case of the Excess Cash Flow Payment Period ending December 31, 2011, from January 1,
2011 to the last day of such period), minus (b) the sum of, without duplication, (i) the
aggregate amount of all Capital Expenditures made by Holdings and its Subsidiaries during such
period (other than Capital Expenditures to the extent financed with equity proceeds, Equity
Interests, asset sale proceeds (other than sales of inventory in the ordinary course of business),
insurance proceeds or Indebtedness (other than Revolving Loans and Swingline Loans)), (ii) the
aggregate amount of permanent principal payments of Indebtedness for borrowed money of Holdings and
its Subsidiaries and the permanent repayment of the principal component of Capitalized Lease
Obligations of Holdings and its Subsidiaries during such period (other than (1) repayments made
with the proceeds of asset sales (other than sales of inventory in the ordinary course of
business), sales or issuances of Equity Interests, insurance or Indebtedness, (2) repayments
pursuant to Section 10.08(i)(y) or (z) and (3) payments of Loans and/or other
Obligations, provided that repayments of Loans shall be deducted in determining Excess Cash
Flow to the extent such repayments were required as a result of a Scheduled Term Loan Repayment
pursuant to Section 5.02(b)), (iii) the increase, if any, in Adjusted Consolidated Working
Capital from the first day to the last day of such period (or, in the case of the Excess Cash Flow
Payment Period ending December 31, 2011, from January 1, 2011 to the last day of such period), and
(iv) the aggregate amount of all cash payments made in respect of all Permitted Acquisitions and
all Investments made pursuant to Section 10.05(xiii) (other than intercompany Investments among or
between Holdings and its Subsidiaries) consummated by Holdings and its Subsidiaries during such
period (other than any such payments to the extent financed with equity proceeds, asset sale
proceeds, insurance proceeds or Indebtedness).

          “Excess Cash Flow Payment Date” shall mean the date occurring 90 days after the last
day of each fiscal year of Holdings (commencing with the fiscal year of Holdings ending December
31, 2011).

          “Excess Cash Flow Payment Period” shall mean (x) with respect to the repayment
required on the first Excess Cash Flow Payment Date, the period from April 1, 2011 to the last day
of Holdings’ fiscal year ending December 31, 2011 (taken as one accounting period), and (y)
with respect to the repayment required on each successive Excess Cash Flow Payment Date, the
immediately preceding fiscal year of Holdings.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

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          “Excluded Taxes” shall mean (i) any Tax imposed on or measured by the net income or
net profits of a Lender pursuant to the laws of the Unites States of America or the jurisdiction in
which such Lender is organized or the jurisdiction in which the principal office or applicable
lending office of such Lender is located or any subdivision thereof or therein, (ii) any branch
profits Taxes imposed by any jurisdiction described in clause (i), (iii) in the case of a Foreign
Lender, any United States federal withholding Taxes (x) resulting from a requirement of law on the
date such Foreign Lender becomes a party to this Agreement (or designates a new lending office),
except to the extent such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional amounts from the
Borrower with respect to such withholding Taxes pursuant to Section 5.04(a), or (y) is attributable
to such Foreign Lender’s failure to comply with Section 5.04(b), (iv) any Taxes imposed pursuant to
FATCA and (v) any United States federal backup withholding Taxes.

          “Existing Credit Agreement” shall mean the Credit Agreement, dated as of February 27,
2007, among Holdings, the Borrower, the lenders party thereto and DBTCA, as administrative agent
(as amended through and including the Initial Borrowing Date).

          “Existing GAAP” shall have the meaning provided in Section 13.07(a).

          “Existing Holdings Notes” shall mean Holdings’ 11% Senior Discount Notes due February
4, 2014 issued pursuant to the Existing Holdings Note Indenture.

          “Existing Holdings Notes Indenture” shall mean the Indenture, dated as of February 4,
2004, as heretofore amended or supplemented, between Holdings and the Existing Holdings Notes
Trustee, as the trustee thereunder.

          “Existing Holdings Notes Redemption” shall have the meaning provided in Section
6.05.

          “Existing Holdings Notes Redemption Date” shall have the meaning provided in
Section 6.05.

          “Existing Holdings Notes Trustee” shall mean The Bank of New York Mellon (as successor
to The Bank of New York), as trustee under the Existing Holdings Notes Indenture.

          “Existing Indebtedness” shall have the meaning provided in Section 8.20.

          “Expiration Time” shall have the meaning provided in Schedule XII.

          “Extended Revolving Commitment” shall have the meaning provided in Section
2.16.

          “Extended Term Loans” shall have the meaning provided in Section 2.16.

          “Extending RL Lender” shall have the meaning provided in Section 2.16.

          “Extending Term Lender” shall have the meaning provided in Section 2.16.

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          “Extension” shall have the meaning provided in Section 2.16.

          “Extension Offer” shall have the meaning provided in Section 2.16.

          “Facing Fee” shall have the meaning provided in Section 4.01(c).

          “FATCA” shall mean Sections 1471 through 1474 of the Code (as enacted on or prior to
the Effective Date, and any amended or successor provisions that are substantially comparable;
provided that any such amended or successor provisions impose criteria that are not
materially more onerous than those contained in such provisions as enacted on or prior to the
Effective Date) and the regulations promulgated thereunder or published administrative guidance
implementing such provisions.

          “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate equal for
each day during such period to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of recognized standing selected by the
Administrative Agent.

          “Fees” shall mean all amounts payable pursuant to or referred to in Section
4.01.

          “Foreign Lender” shall have the meaning provided in Section 5.04(b).

          “Foreign Pension Plan” shall mean any defined benefit plan, fund (including, without
limitation, any superannuation fund) or other similar program established or maintained outside the
United States of America by Holdings or any one or more of its Subsidiaries primarily for the
benefit of employees of Holdings or such Subsidiaries residing outside the United States, which
plan, fund or other similar program provides, or results in, retirement income, a deferral of
income in contemplation of retirement or payments to be made upon termination of employment, and
which plan is not subject to ERISA or the Code, but which is comparable to a Pension Plan.

          “Foreign Subsidiary” shall mean each Subsidiary of Holdings that is incorporated or
organized under the laws of any jurisdiction other than the United States of America or any State
thereof.

          “Guaranteed Creditors” shall mean and include each of the Administrative Agent, the
Collateral Agent, the Issuing Lenders, the Lenders, the Swingline Lender and each party
(other than any Credit Party) party to an Interest Rate Protection Agreement or Other Hedging
Agreement to the extent such party constitutes a Secured Creditor under the Security Documents.

          “Guaranteed Obligations” shall mean (A) as to Holdings, (i) the full and prompt
payment when due (whether at the stated maturity, by acceleration or otherwise) of the principal,
premium and interest on each Note issued by, and all Loans made to, the Borrower under this
Agreement and all reimbursement obligations and Unpaid Drawings with respect to Letters of

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Credit,
together with all the other obligations (including obligations which, but for the automatic stay
under Section 362(a) of the Bankruptcy Code, would become due), indebtedness and liabilities
(including, without limitation, indemnities, fees and interest (including any interest accruing
after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the
rate provided for herein, whether or not such interest is an allowed claim in any such proceeding)
thereon) of the Borrower to any Guaranteed Creditor now existing or hereafter incurred under,
arising out of or in connection with this Agreement and each other Credit Document to which the
Borrower is a party and the due performance and compliance by the Borrower with all the terms,
conditions and agreements contained in the Credit Agreement and in each such other Credit Document
and (ii) the full and prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of all obligations (including obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including
any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar
proceeding at the rate provided for herein, whether or not such interest is an allowed claim in any
such proceeding) of the Borrower and each other Guaranteed Party owing under any Interest Rate
Protection Agreement or Other Hedging Agreement entered into by the Borrower or such Guaranteed
Party with any Guaranteed Creditor (even if such Guaranteed Creditor subsequently ceases to be a
Lender under this Agreement for any reason) so long as such Guaranteed Creditor or affiliate
participates in such Interest Rate Protection Agreement or Other Hedging Agreement and their
subsequent assigns, if any, whether now in existence or hereafter arising, and the due performance
and compliance with all terms, conditions and agreements contained therein and (B) as to the
Borrower, the full and prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of all obligations (including obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including
any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar
proceeding at the rate provided for herein, whether or not such interest is an allowed claim in any
such proceeding) of each Guaranteed Party owing under any Interest Rate Protection Agreement or
Other Hedging Agreement entered into by such Guaranteed Party with any Guaranteed Creditor (even if
such Guaranteed Creditor subsequently ceases to be a Lender under this Agreement for any reason) so
long as such Guaranteed Creditor or affiliate participates in such Interest Rate Protection
Agreement or Other Hedging Agreement and their subsequent assigns, if any, whether now in existence
or hereafter arising, and the due performance and compliance with all terms, conditions and
agreements contained therein.

          “Guaranteed Party” shall mean the Borrower and each Subsidiary of the Borrower party
to an Interest Rate Protection Agreement or Other Hedging Agreement with any Guaranteed Creditor.

          “Guarantor” shall mean each of Holdings, the Borrower and each Subsidiary Guarantor.

          “Guaranty” shall mean each of the Credit Agreement Parties Guaranty and the
Subsidiaries Guaranty.

          “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea formaldehyde

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foam insulation,
dielectric fluid containing levels of polychlorinated biphenyls, and radon gas; (b) any chemicals,
materials or substances defined as or included in the definition of “hazardous substances,”
“hazardous waste,” “hazardous materials,” “extremely hazardous substances,” “restricted hazardous
waste,” “toxic substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words of
similar import, under any applicable Environmental Law; and (c) any other chemical, material or
substance, the exposure to, or Release of which is prohibited, limited or regulated by any
governmental authority.

          “Highest Adjustable Applicable Margins” shall have the meaning provided in the
definition of “Applicable Margin”.

          “Holdings” shall have the meaning set forth in the first paragraph of this Agreement.

          “Holdings Common Stock” shall have the meaning provided in Section 8.13.

          “Immaterial Subsidiary” shall mean Subsidiaries of the Borrower, in the aggregate,
whose revenues at any time are 3% or less of the consolidated revenues of the Borrower and its
Subsidiaries for the twelve month period ending on the last day of the most recently ended month on
or prior to such time.

          “Incremental Commitment” shall mean either an Incremental Term Loan Commitment or an
Incremental RL Commitment.

          “Incremental Commitment Requirements” shall mean, with respect to any provision of
Incremental Term Loan Commitments on an Incremental Term Loan Borrowing Date or Incremental RL
Commitments on any Incremental RL Commitment Date, the satisfaction of each of the following
conditions on any such date: (i) no Default or Event of Default then exists or would result
therefrom (for purposes of such determination, assuming the relevant Loans in an aggregate
principal amount equal to the full amount of Incremental Term Loan Commitments and/or Incremental
RL Commitments then provided had been incurred, and the proceeds of such Loans had been applied, on
any such date) and all of the representations and warranties contained herein and in the other
Credit Documents are true and correct in all material respects at such time (it being understood
that (x) any representation and warranty that is qualified by materiality or Material Adverse
Effect shall be required to be true and correct in all respects and (y) any representation and
warranty which by its terms is made as of a specified date shall be required to be true and correct
in all material respects (or all respects, as the case may be) as of such earlier date); (ii)
Holdings shall be in compliance with (I) the financial covenants contained in Section 10.07
and (II) a Secured Leverage Ratio of less than or equal to 2.75:1.00, in each case for the
Calculation Period most recently ended on or prior to the
respective Incremental Term Loan Borrowing Date or Incremental RL Commitment Date, as the case
may be, on a Pro Forma Basis, as if the relevant Loans to be made pursuant to the
Incremental Commitments (assuming the full utilization thereof), and the proceeds of such Loans had
been applied, on the first day of such Calculation Period; (iii) the delivery by Holdings or the
Borrower to the Administrative Agent on or prior to such date of an officer’s certificate executed
by an Authorized Financial Officer of Holdings or the Borrower and certifying as to compliance with
preceding clauses (i) and (ii) and containing the calculations (in reasonable detail) required

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by
preceding clause (ii); (iv) the delivery by Holdings or the Borrower to the Administrative Agent on
or prior to such date of an acknowledgement in form and substance reasonably satisfactory to the
Administrative Agent and executed by Holdings and each Subsidiary Guarantor, acknowledging that
such Incremental Commitments and all Loans to be incurred pursuant thereto shall constitute (and be
included in the definition of) “Guaranteed Obligations” hereunder and under the
Subsidiaries Guaranty; (v) the delivery by Holdings or the Borrower to the Administrative Agent of
an opinion or opinions, in form and substance reasonably satisfactory to the Administrative Agent,
from counsel to the Credit Parties reasonably satisfactory to the Administrative Agent and dated
such date, covering such of the matters set forth in the opinions of counsel delivered to the
Administrative Agent on the Initial Borrowing Date pursuant to Section 6.03 as may be
reasonably requested by the Administrative Agent, and such other matters incident to the
transactions contemplated thereby as the Administrative Agent may reasonably request; (vi) the
delivery by Holdings or the Borrower to the Administrative Agent of such officers’ certificates,
board of director resolutions and, solely with respect to the Borrower, evidence of good standing
as the Administrative Agent shall reasonably request; and (vii) the completion by the Borrower and
the other Credit Parties by such date of such other actions as the Administrative Agent may
reasonably request in connection with such Incremental Commitments.

          “Incremental RL Commitment” shall mean, for any Lender, any commitment by such Lender
to make Revolving Loans pursuant to Section 2.01(b) as agreed to by such Lender in the
respective Incremental RL Commitment Agreement delivered pursuant to Section 2.15; it being
understood, however, that on each date upon which an Incremental RL Commitment of any
Lender becomes effective, such Incremental RL Commitment of such Lender shall be added to (and
thereafter become a part of) the Revolving Loan Commitment of such Lender for all purposes of this
Agreement as contemplated by Section 2.15.

          “Incremental RL Commitment Agreement” shall mean each Incremental RL Commitment
Agreement in the form of Exhibit O-2 (appropriately completed) executed in accordance with
Section 2.15.

          “Incremental RL Commitment Date” shall mean each date upon which an Incremental RL
Commitment under an Incremental RL Commitment Agreement becomes effective as provided in
Section 2.15(b).

          “Incremental RL Lender” shall have the meaning specified in Section 2.15(b).

          “Incremental Term Loan” shall have the meaning provided in Section 2.01(c).

          “Incremental Term Loan Borrowing Date” shall mean, with respect to each Tranche of
Incremental Term Loans, each date on which Incremental Term Loans of such Tranche are incurred
pursuant to Section 2.01(c) and as otherwise permitted by Section 2.14.

          “Incremental Term Loan Commitment” shall mean, for each Lender, any commitment to make
Incremental Term Loans provided by such Lender pursuant to Section 2.14, in such amount as
agreed to by such Lender in the respective Incremental Term Loan Commitment Agreement and as set
forth opposite such Lender’s name in Schedule I (as

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modified in accordance with Section
2.14) directly below the column entitled “Incremental Term Loan Commitment”, as the same may be
terminated pursuant to Section 4.03 or 11.

          “Incremental Term Loan Commitment Agreement” shall mean each Incremental Term Loan
Commitment Agreement in the form of Exhibit O-1 (appropriately completed) executed in
accordance with Section 2.14.

          “Incremental Term Loan Lender” shall have the meaning provided in Section
2.14(b).

          “Incremental Term Loan Maturity Date” shall mean, for any Tranche of Incremental Term
Loans, the final maturity date set forth for such Tranche of Incremental Term Loans in the
respective Incremental Term Loan Commitment Agreement, provided that the final maturity date for
all Incremental Term Loans of a given Tranche shall be the same date.

          “Incremental Term Note” shall have the meaning provided in Section 2.05(a).

          “Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness
(including principal, interest, fees and charges) of such Person for borrowed money or for the
deferred purchase price of property or services, (ii) the maximum amount available to be drawn
under all letters of credit, bankers’ acceptances and similar obligations issued for the account of
such Person and all unpaid drawings in respect of such letters of credit, bankers’ acceptances and
similar obligations, (iii) all Indebtedness of the types described in clause (i), (ii), (iv), (v)
or (vi) of this definition secured by any Lien on any property owned by such Person, whether or not
such Indebtedness has been assumed by such Person (provided that, if the Person has not
assumed or otherwise become liable in respect of such Indebtedness, such Indebtedness shall be
deemed to be in an amount equal to the fair market value of the property to which such Lien relates
as determined in good faith by such Person), (iv) the aggregate amount of all Capitalized Lease
Obligations of such Person, (v) all Contingent Obligations of such Person in respect of
Indebtedness of the types described in clauses (i) through (iv) above and clause (vi) below, and
(vi) except for purposes of calculating the Total Leverage Ratio and the Secured Leverage Ratio,
all obligations under any Interest Rate Protection Agreement, any Other Hedging Agreement or under
any similar type of agreement. Notwithstanding the foregoing, Indebtedness shall not include trade
payables and accrued expenses incurred by any Person in the ordinary course of business of such
Person.

          “Indemnified Taxes” shall mean Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by the Borrower under this Agreement or any Note.

          “Individual RL Exposure” of any RL Lender shall mean, at any time, the sum of (x) the
aggregate principal amount of all Revolving Loans made by such RL Lender and then outstanding, (y)
such RL Lender’s RL Percentage in each then outstanding Letter of Credit multiplied by the sum of
the Stated Amount of the respective Letter of Credit and any Unpaid Drawings relating thereto and
(z) such RL Lender’s RL Percentage multiplied by the aggregate principal amount of all then
outstanding Swingline Loans.

          “Initial Borrowing Date” shall mean the date occurring on or after the Effective Date
on which the initial Borrowing of Loans occurs.

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          “Initial Revolving Loan Maturity Date” shall mean May 11, 2016.

          “Initial Term Loan” shall have the meaning provided in Section 2.01(a).

          “Initial Term Loan Commitment” shall mean, for each Lender, the amount set forth
opposite such Lender’s name in Schedule I directly below the column entitled “Initial Term
Loan Commitment,” as the same may be terminated pursuant to Section 4.03 or 11.

          “Initial Term Loan Maturity Date” shall mean May 11, 2018.

          “Initial Term Note” shall have the meaning provided in Section 2.05(a).

          “Intellectual Property” shall have the meaning provided in Section 8.19.

          “Intercompany Loan” shall have the meaning provided in Section 10.05(vii).

          “Interest Determination Date” shall mean, with respect to any Eurodollar Loan, the
second Business Day prior to the commencement of any Interest Period relating to such Eurodollar
Loan.

          “Interest Expense Coverage Ratio” shall mean, for any period, the ratio of (a)
Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period;
provided that for purposes of determining the Incremental Commitment Requirements and any
calculation of the Interest Expense Coverage Ratio pursuant to Sections 2.17(a),
9.15, 10.03(vi), 10.03(vii), 10.04(xi), 10.05(xiv),
10.08(i)(y) and 10.08(i)(z), (i) Consolidated EBITDA shall be determined on a Pro
Forma Basis in accordance with clause (iii) of the definition of “Pro Forma Basis” contained herein
and (ii) Consolidated Interest Expense shall be determined on a Pro Forma Basis in accordance with
the requirements of the definition of “Pro Forma Basis” contained herein.

          “Interest Period” shall have the meaning provided in Section 2.09.

          “Interest Rate Protection Agreement” shall mean any interest rate swap agreement,
interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other
similar agreement or arrangement.

          “Investments” shall have the meaning provided in Section 10.05.

          “Issuing Lender” shall mean each of DBTCA (except as otherwise provided in Section
12.09) and any other Lender reasonably acceptable to the Administrative Agent which agrees to
issue Letters of Credit hereunder. Any Issuing Lender may, in its discretion, arrange for one or
more Letters of Credit to be issued by one or more Affiliates of such Issuing Lender;
provided that, if any Extension or Extensions of Revolving Loan Commitments is or are
effected in accordance with Section 2.16, then upon the occurrence of the Initial Revolving
Loan Maturity Date and on each later date which is or was at any time a Revolving Loan Maturity
Date with respect to Revolving Loan Commitments (each, an “Issuing Lender Termination
Date”), each Issuing Lender (other than the Administrative Agent except as otherwise provided
below) at such time shall have the right to resign as an Issuing Lender on, or on any date within

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20 Business Days after, the respective Issuing Lender Termination Date, in each case upon not less
than 10 days’ prior written notice thereof to the Borrower and the Administrative Agent and, in the
event of any such resignation and upon the effectiveness thereof, the respective entity so
resigning shall retain all of its rights hereunder and under the other Credit Documents as an
Issuing Lender with respect to all Letters of Credit theretofore issued by it (which Letters of
Credit shall remain outstanding in accordance with the terms hereof until their respective
expirations) but shall not be required to issue any further Letters of Credit hereunder. If at any
time and for any reason (including as a result of resignations as contemplated by the proviso to
the preceding sentence), each Issuing Lender has resigned in such capacity in accordance with the
preceding sentence, then no Person shall be an Issuing Lender hereunder obligated to issue Letters
of Credit unless and until (and only for so long as) a Lender (or an affiliate of a Lender)
reasonably satisfactory to the Administrative Agent and the Borrower agrees to act as an Issuing
Lender hereunder. Any Issuing Lender may, in its discretion, arrange for one or more Letters of
Credit to be issued by one or more Affiliates of such Issuing Lender (and such Affiliate shall be
deemed to be an “Issuing Lender” for all purposes of the Credit Documents). Nothing in this
definition shall limit the right of the Administrative Agent to resign hereunder (including in its
capacity as an Issuing Lender) in accordance with the provisions of Section 12.09.

          “Issuing Lender Termination Date” shall have the meaning provided in the definition of
“Issuing Lender” contained herein.

          “Joinder Agreement” shall mean a Joinder Agreement substantially in the form of
Exhibit M (appropriately completed).

          “L/C Supportable Obligations” shall mean (i) obligations of the Borrower or any of its
Subsidiaries with respect to workers’ compensation, surety bonds and other similar statutory
obligations, (ii) rental obligations of the Borrower or any of its Subsidiaries under Real Property
leases to which the Borrower or any of its Subsidiaries are a party to and (iii) such other
obligations of the Borrower or any of its Subsidiaries as are permitted to exist pursuant to the
terms of this Agreement (other than obligations in respect of (x) any Permitted Unsecured Debt, (y)
any Indebtedness that is subordinated to any of the Obligations and (z) and any Equity Interests).

          “Leaseholds” of any Person shall mean all the right, title and interest of such Person
as lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures.

          “Lender” shall mean each financial institution or other Person listed on Schedule
I, as well as any Person that becomes a “Lender” hereunder pursuant to Section
2.13 or 13.04(b).

          “Lender Default” shall mean, as to any Lender, (i) the wrongful refusal (which has not
been retracted) of such Lender or the failure of such Lender (which has not been cured) to make
available its portion of any Borrowing (including any Mandatory Borrowing) or to fund its portion
of any unreimbursed payment with respect to a Letter of Credit pursuant to Section 3.04(c),
(ii) such Lender having been deemed insolvent or having become the subject of a bankruptcy or
insolvency proceeding or a takeover by a regulatory authority, or (iii) such Lender having notified
the Administrative Agent, the Swingline Lender, any Issuing Lender

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and/or any Credit Party (x) that
it does not intend to comply with its obligations under Section 2.01(b) or 2.01(e)
or Section 3, as the case may be, in circumstances where such non-compliance would
constitute a breach of such Lender’s obligations under the respective Section or (y) of the events
described in preceding clause (ii); provided that, for purposes of (and only for purposes
of) Section 2.18 and any documentation entered into pursuant to the Letter of Credit
Back-Stop Arrangements (and the term “Defaulting Lender” as used therein), the term
“Lender Default” shall also include, as to any Lender, (i) any Affiliate of such Lender
that has “control” (within the meaning provided in the definition of “Affiliate”) of such Lender
having been deemed insolvent or having become the subject of a bankruptcy or insolvency proceeding
or a takeover by a regulatory authority, (ii) any previously cured “Lender Default” of such RL
Lender under this Agreement, unless such Lender Default has ceased to exist for a period of at
least 90 consecutive days, (iii) any default by such Lender with respect to its obligations under
any other credit facility to which it is a party and which the Swingline Lender, any Issuing Lender
or the Administrative Agent reasonably believes in good faith has occurred and is continuing, and
(iv) the failure of such Lender to make available its portion of any Borrowing (including any
Mandatory Borrowing) or to fund its portion of any unreimbursed payment with respect to a Letter of
Credit pursuant to Section 3.04(c) within one (1) Business Day of the date (x) the
Administrative Agent (in its capacity as a Lender) or (y) Lenders constituting the Majority Lenders
with Revolving Loan Commitments has or have, as applicable, funded its or their portion thereof.

          “Letter of Credit” shall have the meaning provided in Section 3.01(a).

          “Letter of Credit Back-Stop Arrangements” shall have the meaning provided in
Section 2.18(a).

          “Letter of Credit Exposure” shall mean, at any time, the aggregate amount of all
Letter of Credit Outstandings at such time in respect of Letters of Credit. The Letter of Credit
Exposure of any RL Lender at any time shall be its RL Percentage of the aggregate Letter of Credit
Exposure at such time.

          “Letter of Credit Fee” shall have the meaning provided in Section 4.01(b).

          “Letter of Credit Outstandings” shall mean, at any time, the sum of (i) the Stated
Amount of all outstanding Letters of Credit and (ii) the aggregate amount of all Unpaid Drawings in
respect of all Letters of Credit.

          “Letter of Credit Request” shall have the meaning provided in Section 3.03(a).

          “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), preference, priority or other security
agreement of any kind or nature whatsoever (including, without limitation, any conditional sale or
other title retention agreement, any financing or similar statement or notice filed under the UCC
or any other similar recording or notice statute, and any lease having substantially the same
effect as any of the foregoing).

          “License Subsidiary” shall mean TSI Holdings (IP), LLC, a Delaware limited liability
company and a Wholly-Owned Domestic Subsidiary of the Borrower.

-23-

 

          “Loan” shall mean each Term Loan, each Revolving Loan and each Swingline Loan.

          “Majority Lenders” of any Tranche shall mean those Non-Defaulting Lenders which would
constitute the Required Lenders under, and as defined in, this Agreement if all outstanding
Obligations under the other Tranches under this Agreement were repaid in full and all Commitments
with respect thereto were terminated.

          “Mandatory Borrowing” shall have the meaning provided in Section 2.01(e).

          “Margin Stock” shall have the meaning provided in Regulation U.

          “Material Adverse Effect” shall mean (i) a material adverse effect on the business,
operations, property, liabilities or condition (financial or otherwise) of Holdings and its
Subsidiaries taken as a whole or (ii) a material adverse effect (x) on the rights or remedies of
the Lenders or the Administrative Agent hereunder or under any other Credit Document or (y) on the
ability of the Credit Parties taken as a whole to perform their payment obligations to the Lenders
or Administrative Agent hereunder or under any other Credit Document.

          “Maturity Date” shall mean, with respect to the relevant Tranche of Loans, the Initial
Term Loan Maturity Date, each Incremental Term Loan Maturity Date, the Revolving Loan Maturity Date
or the Swingline Expiry Date, as the case may be.

          “Maximum Incremental Commitment Amount” shall mean, at any date of determination, the
remainder of (a) $35,000,000 minus (b) the sum of (I) the aggregate principal amount of all
Incremental Term Loans incurred pursuant to Section 2.14 prior to such date and (II) the
aggregate amount of all Incremental RL Commitments incurred pursuant to Section 2.15 prior
to such date.

          “Maximum Permitted Consideration” shall mean, with respect to any Permitted
Acquisition, the sum (without duplication) of (i) the fair market value of Holdings Common Stock
(based on (x) the closing and/or trading price of Holdings Common Stock on the date of such
Permitted Acquisition on the stock exchange on which Holdings Common Stock is listed or the
automated quotation system on which Holdings Common Stock is quoted, or (y) if Holdings Common
Stock is not listed on an exchange or quoted on a quotation system, the bid and asked prices of
Holdings Common Stock in the over-the-counter market at the close of trading or (z) if
Holdings Common Stock is not so listed, based on a good faith determination of the Board of
Directors of Holdings) issued (or to be issued) as consideration in connection with such Permitted
Acquisition, (ii) the fair market value of all Qualified Preferred Stock of Holdings (based on a
good faith determination of the Board of Directors of Holdings) issued (or to be issued) as
consideration in connection with such Permitted Acquisition, (iii) the aggregate principal amount
of, and other obligations due under, all Seller Financing and Permitted Acquired Debt incurred,
issued, acquired and/or assumed by the Borrower or any of its Subsidiaries in connection with such
Permitted Acquisition, (iv) the aggregate amount of all cash paid (or to be paid) by the Borrower
or any of its Subsidiaries in connection with such Permitted Acquisition (including payments of
fees, costs, expenses and taxes in connection therewith), (v) the aggregate principal amount of,
and other obligations due under, all other Indebtedness

-24-

 

assumed, incurred and/or issued by the
Borrower or any of its Subsidiaries in connection with such Permitted Acquisition to the extent
permitted by Section 10.04, (vi) the aggregate amount that could reasonably be expected to
be paid (based on good faith projections prepared by Holdings) pursuant to any earn-out,
non-compete, consulting or deferred compensation or purchase price adjustment) for such Permitted
Acquisition and (vii) the fair market value (based on good faith projections prepared by the
Borrower) of all other consideration payable in connection with such Permitted Acquisition.

          “Maximum Rate” shall have the meaning provided in Section 13.19.

          “Maximum Swingline Amount” shall mean $5,000,000.

          “Minimum Borrowing Amount” shall mean (i) for Term Loans, $1,000,000, (ii) for
Revolving Loans, $500,000, and (iii) for Swingline Loans, $100,000.

          “Minimum Extension Condition” shall mean (x) with respect to any Extension of any
Tranche of Term Loans pursuant to Section 2.16, that Lenders, the sum of whose aggregate
outstanding principal amount of Term Loans of such Tranche at such time equal 50% or more of the
aggregate outstanding principal amount of all Term Loans of such Tranche at such time, shall have
accepted the respective Extension Offer, and (y) with respect to any Extension of any Tranche of
Revolving Loan Commitments pursuant to Section 2.16, that Lenders, the sum of whose
Revolving Loan Commitments of such Tranche at such time equal 50% or more of the aggregate
Revolving Loan Commitments of such Tranche at such time, shall have accepted the respective
Extension Offer.

          “Minimum Liquidity Condition” shall mean (i) in the case of Sections
10.03(vii), 10.05(xiv) and 10.08(i)(z), that the sum of (I) the aggregate
amount of Unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary Guarantors at
such time plus (II) the Total Unutilized Revolving Loan Commitment at such time shall equal
or exceed $25,000,000, and (ii) in the case of Section 2.17, that the sum of (I) the
aggregate amount of Unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary
Guarantors at such time plus (II) the Total Unutilized Revolving Loan Commitment at such
time shall equal or exceed $50,000,000. For purposes of this definition only, the amount of the
Total Unutilized Revolving Loan Commitment at any time shall be limited to that amount thereof (if
any) that the Borrower is permitted to incur at such time in accordance with the terms of this
Agreement and any amount
in excess thereof shall not be treated as part of the Total Unutilized Revolving Loan
Commitment at such time.

          “Minimum Tranche Amount” shall have the meaning provided in Section 2.16.

          “MNPI” shall mean material non-public information with respect to Holdings or its
Subsidiaries, or the respective securities of any of the foregoing.

          “Moody’s” shall mean Moody’s Investors Service, Inc.

          “Mortgage” shall mean a mortgage, debenture, deed of trust, deed to secure debt, or
similar security instrument.

-25-

 

          “Mortgage Policy” shall mean an ALTA Lender’s Title Insurance Policy (Form 2006).

          “Mortgaged Property” shall mean any Real Property owned by Holdings or any of its
Subsidiaries which is encumbered (or required to be encumbered) by a Mortgage pursuant to the terms
hereof.

          “Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section
4001(a)(3) of ERISA to which Holdings, any Subsidiary of Holdings, or any ERISA Affiliate has, or
within the past five years has had, an obligation to contribute.

          “NAIC” shall mean the National Association of Insurance Commissioners.

          “Net Debt Proceeds” shall mean with respect to any incurrence of Indebtedness for
borrowed money, the cash proceeds (net of underwriting discounts and commissions, fees and other
costs associated therewith, including, without limitation, those of attorneys, accountants and
other professionals) received by the respective Person from the respective incurrence of such
Indebtedness for borrowed money.

          “Net Equity Proceeds” shall mean, with respect to each issuance or sale of any
Holdings Common Stock and/or Qualified Preferred Stock by Holdings or any capital contribution to
Holdings, the cash proceeds (net of underwriting discounts and commissions, fees and other costs
associated therewith, including, without limitation, those of attorneys, accountants and other
professionals) received by Holdings from the respective sale or issuance of Holdings Common Stock
and/or Qualified Preferred Stock or from the respective capital contribution (other than from sales
or issuances of Holdings Common Stock and/or Qualified Preferred Stock to, or capital contributions
from, employees, officers and/or directors of Holdings or any of its Subsidiaries).

          “Net Recovery Event Proceeds” shall mean, with respect to any Recovery Event, the cash
proceeds (net of costs, expenses and taxes incurred in connection with such Recovery Event)
received by the respective Person in connection with such Recovery Event.

          “Net Sale Proceeds” shall mean, for any Asset Sale, the gross cash or Cash Equivalent
proceeds (including any cash or Cash Equivalents received by way of deferred
payment pursuant to a promissory note, receivable or otherwise, but only as and when received)
received from such sale of assets, net of the costs and expenses of such sale (including fees and
commissions, payments of unassumed liabilities relating to the assets sold and required payments of
any Indebtedness (other than Indebtedness secured pursuant to the Security Documents) which is
secured by the respective assets which were sold), and the incremental taxes paid or reasonably
expected to be payable as a result of such Asset Sale.

          “Non-Defaulting Lender” and “Non-Defaulting RL Lender” shall mean and include
each Lender or RL Lender, as the case may be, other than a Defaulting Lender.

          “Non-Guarantor Subsidiary” shall mean any Subsidiary of the Borrower that is not a
Subsidiary Guarantor.

-26-

 

          “Note” shall mean each Initial Term Note, each Incremental Term Note, Revolving Note
and the Swingline Note.

          “Notice of Borrowing” shall have the meaning provided in Section 2.03(a).

          “Notice of Conversion/Continuation” shall have the meaning provided in Section
2.06.

          “Notice Office” shall mean (i) for credit notices, the office of the Administrative
Agent located at 60 Wall Street, New York, New York 10005, Attention: Carin Keegan, Telephone No.:
(212) 250-6083, and Telecopier No.: (212) 797-5690, and (ii) for operational notices, the office of
the Administrative Agent located at 5022 Gate Parkway, Suite 200, Jacksonville, FL 32256,
Attention: Maxeen Jacques, Telephone No.: (904) 380-3355, and Telecopier No.: (732) 380-3355, or
such other office or person as the Administrative Agent may hereafter designate in writing as such
to the other parties hereto.

          “Obligations” shall mean all amounts owing to the Administrative Agent, the Collateral
Agent, any Issuing Lender, the Swingline Lender or any Lender pursuant to the terms of this
Agreement or any other Credit Document, including, without limitation, all amounts in respect of
any principal, premium, interest (including any interest accruing subsequent to the filing of a
petition in bankruptcy, reorganization or similar proceeding at the rate provided for in this
Agreement, whether or not such interest is an allowed claim under any such proceeding or under
applicable state, federal or foreign law), penalties, fees, expenses, indemnifications,
reimbursements (including Unpaid Drawings with respect to Letters of Credit), damages and other
liabilities, and guarantees of the foregoing amounts.

          “Other Connection Taxes” shall mean, with respect to any Lender, Issuing Lender or
Participant, Taxes on gross or net income, profits or revenue (including value-added or similar
Taxes) imposed as a result of a present or former connection between such Person and the
jurisdiction imposing such Taxes (other than a connection arising from such Person having executed,
delivered, enforced, become a party to, performed its obligations under, received payments under,
received or perfected a security interest under, or engaged in any other transaction pursuant to,
or enforced, this Agreement or any Note, or sold or assigned an interest in this Agreement or any
Note).

          “Other Hedging Agreements” shall mean any foreign exchange contracts, currency swap
agreements, commodity agreements or other similar arrangements, or arrangements designed to protect
against fluctuations in currency values or commodity prices.

          “Participant” shall have the meaning provided in Section 3.04(a).

          “PATRIOT Act” shall have the meaning provided in Section 13.17.

          “Payment Office” shall mean the office of the Administrative Agent located at 5022
Gate Parkway, Suite 200, Jacksonville, FL 32256 or such other office as the Administrative Agent
may hereafter designate in writing as such to the other parties hereto.

-27-

 

          “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

          “Pension Plan” shall mean a Plan which is subject to Title IV of ERISA or Sections 412
or 430 of the Code or Section 302 of ERISA.

          “Permissible Transferees” shall mean in the case of BRS or any BRS Investor, (A) any
Affiliate of BRS, (B) any managing director, general partner, limited partner (but, in the case of
any limited partner, only to the extent that such limited partner receives its shares of equity in
Holdings through a pro rata in-kind distribution from the existing fund through
which such limited partner’s investment in Holdings is held), director, officer or employee of BRS
or any Affiliate thereof (collectively, “BRS Associates”), and his or her spouse, parents,
siblings, members of his or her immediate family (including adopted children) and/or direct lineal
descendants or (C) the heirs, executors, administrators, testamentary trustees, legatees or
beneficiaries of any BRS Associate and (D) any trust, the beneficiaries of which, or a corporation
or partnership, the stockholders or partners of which, include only a BRS Associate, his or her
spouse, parents, siblings, or direct lineal descendants.

          “Permitted Acquired Debt” shall have the meaning provided in Section 10.04(v).

          “Permitted Acquisition” shall mean the acquisition by the Borrower or a Subsidiary
Guarantor of an Acquired Entity or Business (including by way of merger of such Acquired Entity or
Business with and into the Borrower (so long as the Borrower is the surviving Person) or a
Subsidiary Guarantor (so long as a Subsidiary Guarantor is the surviving Person)), provided
that (in each case) (A) the consideration paid or to be paid by the Borrower or such Subsidiary
Guarantor consists solely of the type of consideration set forth in the definition of “Maximum
Permitted Consideration”, (B) in the case of the acquisition of 100% of the Equity Interests of
any Person (including way of merger), such Person shall own no Equity Interests of any other Person
(excluding de minimis amounts) unless either (x) such Person owns 100% of the Equity Interests of
such other Person or (y) (1) such Person and/or its Wholly-Owned Subsidiaries own at least 80% of
the consolidated assets of such Person and its Subsidiaries and (2) any non-Wholly Owned Subsidiary
of such Person was non-Wholly Owned prior to the date of such Permitted Acquisition of such Person,
(C) at least 90% of the consolidated assets and consolidated revenues of the business, division or
product line acquired pursuant to the respective Permitted Acquisition, or of the business of the
Person acquired pursuant to the respective Permitted Acquisition and its Subsidiaries taken as a
whole, is in the United States,
(D) the Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition
is in a business permitted by Section 10.11, (E) such Permitted Acquisition shall not be
hostile and shall have been approved by the board of directors (or similar body) and/or the equity
holders of the Acquired Business, and (F) all requirements of Sections 9.15 and
10.02 applicable to Permitted Acquisitions are satisfied. Notwithstanding anything to the
contrary contained in the immediately preceding sentence, an acquisition which does not otherwise
meet the requirements set forth above in the definition of “Permitted Acquisition” shall
constitute a Permitted Acquisition if, and to the extent, the Required Lenders agree in writing,
prior to the consummation thereof, that such acquisition shall constitute a Permitted Acquisition
for purposes of this Agreement.

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          “Permitted Acquisition Amount” shall mean, at any date of determination, an amount
such that, after giving effect to the subject Permitted Acquisition, the aggregate Maximum
Permitted Consideration theretofore (and then being) paid in respect of all Permitted Acquisitions
(including the subject Permitted Acquisition) does not exceed the sum of (I) the fair market value
of Holdings Common Stock on the date of the subject Permitted Acquisition (based on (x) the closing
and/or trading price of Holdings Common Stock on the date of such Permitted Acquisition on the
stock exchange on which Holdings Common Stock is listed or the automated quotation system on which
Holdings Common Stock is quoted, or (y) if Holdings Common Stock is not listed on an exchange or
quoted on a quotation system, the bid and asked prices of Holdings Common Stock in the
over-the-counter market at the close of trading), (II) the aggregate principal amount of all Seller
Financing and Permitted Acquired Debt then outstanding and then being incurred or assumed as part
of the subject Permitted Acquisition and (III) the remainder of (a) the aggregate amount of all
Unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary Guarantors on the date of
such Permitted Acquisition minus (b) the aggregate principal amount of all Revolving Loans
and Swingline Loans then outstanding.

          “Permitted Equity Proceeds Basket Amount” shall mean, initially, $0, which amount (x)
shall be increased on each date after the Initial Borrowing Date on which Holdings receives any Net
Equity Proceeds, by an amount equal to such Net Equity Proceeds received by Holdings on such date
and contributed to the Borrower and (y) shall be reduced by the sum of (I) the aggregate amount of
Dividends theretofore paid or made pursuant to Section 9.03(viii), (II) the aggregate
amount of all Investments theretofore made pursuant to Section 10.05(xv)(II) and (III) the
aggregate amount of all cash payments theretofore made pursuant to Section 10.08(i)(x).

          “Permitted Liens” shall have the meaning provided in Section 10.01.

          “Permitted Unsecured Debt” shall mean any unsecured Indebtedness of Holdings or the
Borrower, which may be guaranteed on an unsecured basis by the Borrower or one or more Subsidiary
Guarantors, all of the terms and conditions of which satisfy the requirements of Section
10.04(xi), as such Indebtedness may be amended, modified and/or supplemented from time to time
in accordance with the terms hereof and thereof.

          “Permitted Unsecured Debt Documents” shall mean, on and after the execution and
delivery thereof, each note, instrument, agreement, guaranty and other document relating to each
incurrence of Permitted Unsecured Debt, as the same may be amended, modified and/or supplemented
from time to time in accordance with the terms hereof and thereof.

          “Person” shall mean any individual, partnership, joint venture, firm, corporation,
association, limited liability company, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

          “Plan” shall mean any pension plan as defined in Section 3(2) of ERISA (other than a
Multiemployer Plan) in respect of which Holdings or a Subsidiary of Holdings or an ERISA Affiliate
is, or in the past five years has been (or if such Plan were terminated, would under Section 4069
of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

-29-

 

          “Pledge Agreement” shall have the meaning provided in Section 6.09.

          “Pledge Agreement Collateral” shall mean all “Collateral” as defined in the Pledge
Agreement.

          “Pledgee” shall have the meaning provided in the Pledge Agreement.

          “Prime Lending Rate” shall mean the rate which the Administrative Agent announces from
time to time as its prime lending rate, the Prime Lending Rate to change when and as such prime
lending rate changes. The Prime Lending Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer by the Administrative Agent,
which may make commercial loans or other loans at rates of interest at, above or below the Prime
Lending Rate.

          “Pro Forma Basis” shall mean, in connection with any calculation of compliance with
any financial covenant or financial term, the calculation thereof after giving effect on a pro
forma basis to (x) the incurrence of any Indebtedness (other than revolving Indebtedness, except to
the extent same is incurred to refinance other outstanding Indebtedness, to finance a Permitted
Acquisition, to finance a Dividend pursuant to Section 10.03(vii) or to finance an
Investment pursuant to Section 10.05(xiv)) after the first day of the relevant Calculation
Period or Test Period, as the case may be, as if such Indebtedness had been incurred (and the
proceeds thereof applied) on the first day of such Test Period or Calculation Period, as the case
may be, (y) the permanent repayment of any Indebtedness (other than revolving Indebtedness, except
to the extent accompanied by a corresponding permanent commitment reduction) after the first day of
the relevant Test Period or Calculation Period, as the case may be, as if such Indebtedness had
been retired, repaid or redeemed on the first day of such Test Period or Calculation Period, as the
case may be, and (z) any Permitted Acquisition or any Significant Asset Sale then being consummated
as well as any other Permitted Acquisition or any other Significant Asset Sale if consummated after
the first day of the relevant Test Period or Calculation Period, as the case may be, and on or
prior to the date of the respective Permitted Acquisition or Significant Asset Sale, as the case
may be, then being effected, with the following rules to apply in connection therewith:

     (i) all Indebtedness (x) (other than revolving Indebtedness, except to the extent same
is incurred to refinance other outstanding Indebtedness, to finance Permitted Acquisitions,
to finance a Dividend pursuant to Section 10.03(vii) or to finance an Investment
pursuant to Section 10.05(xiv)) incurred or issued after the first day of the
relevant Test Period or Calculation Period (whether incurred to finance a Permitted
Acquisition, to refinance Indebtedness or otherwise) shall be deemed to have been incurred
or issued (and the proceeds thereof applied) on the first day of such Test Period or
Calculation Period, as the case may be, and remain outstanding through the date of
determination and (y) (other than revolving Indebtedness, except to the extent accompanied
by a corresponding permanent commitment reduction) permanently retired, repaid or redeemed
after the first day of the relevant Test Period or Calculation Period, as the case may be,
shall be deemed to have been retired, repaid or redeemed on the first day of such Test
Period or Calculation Period, as the case may be, and remain retired through the date of
determination;

-30-

 

     (ii) all Indebtedness assumed to be outstanding pursuant to preceding clause (i) shall
be deemed to have borne interest at (x) the rate applicable thereto, in the case of fixed
rate indebtedness, or (y) the rates which would have been applicable thereto during the
respective period when same was deemed outstanding, in the case of floating rate
Indebtedness (although interest expense with respect to any Indebtedness for periods while
same was actually outstanding during the respective period shall be calculated using the
actual rates applicable thereto while same was actually outstanding); and

     (iii) in making any determination of Consolidated EBITDA, pro forma effect shall be
given to any Permitted Acquisition or any Significant Asset Sale effected during the
respective Calculation Period or Test Period (or thereafter, for purposes of determinations
of the Applicable Margins and the Incremental Commitment Requirements and pursuant to
Sections 2.17(a), 9.15(a), 10.03(vii), 10.04(xi),
10.05(xiv) and 10.08(i)(z) only) as if same had occurred on the first day of
the respective Calculation Period or Test Period, as the case may be, taking into account,
in the case of any Permitted Acquisition, factually supportable and identifiable cost
savings and expenses which would otherwise be permitted to be accounted for as an adjustment
pursuant to Article 11 of Regulation S-X under the Securities Act, as if such cost savings
or expenses were realized on the first day of the respective period.

          “Projections” shall mean the projections that are contained in the Confidential
Information Memorandum (Public Version) dated April 2011 and that were prepared by or on behalf of
the Borrower in connection with the Transaction and delivered to the Administrative Agent and the
Lenders prior to the Initial Borrowing Date.

          “Qualified Preferred Stock” shall mean any preferred stock of Holdings so long as (A)
in each case the terms of any such preferred stock (i) do not contain any mandatory put,
redemption, repayment, sinking fund or other similar provision (other than pursuant to a “change of
control” redemption exercisable contingent only on payment in full of the Obligations and the
termination of all Commitments) prior to six months following the last Maturity Date then in
effect, (ii) do not require the cash payment of dividends prior to the date occurring six months
following the last Maturity Date in effect and (iii) do not contain any financial performance
“maintenance” covenants (whether stated as a covenant, default or otherwise, although “incurrence
based” financial tests may be included).

          “Qualifying Bid” shall have the meaning provided in Schedule XII.

          “Quarterly Payment Date” shall mean the last Business Day of each June, September,
December and March occurring after the Initial Borrowing Date, commencing on June 30, 2011.

          “Quarterly Pricing Certificate” shall have the meaning set forth in the definition of
“Applicable Margin”.

          “Real Property” of any Person shall mean all the right, title and interest of such
Person in and to land, improvements and fixtures, including Leaseholds.

-31-

 

          “Recovery Event” shall mean the receipt by Holdings or any of its Subsidiaries of any
cash insurance proceeds or condemnation awards payable (i) by reason of theft, loss, physical
destruction, damage, taking or any other similar event with respect to any property or assets of
Holdings or any of its Subsidiaries and (ii) under any policy of insurance required to be
maintained under Section 9.03 (in either case, excluding any business interruption
insurance proceeds).

          “Refinancing” shall mean the repayment of all outstanding loans and all other
obligations (and the termination of all commitments) under the Existing Credit Agreement.

          “Register” shall have the meaning provided in Section 13.15.

          “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

          “Regulation T” shall mean Regulation T of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

          “Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

          “Regulation X” shall mean Regulation X of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

          “Related Parties” shall have the meaning provided in Section 13.01(a).

          “Release” shall mean actively or passively disposing, discharging, injecting,
spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping,
migrating or the like, into or upon any land or water or air, or otherwise entering into the
environment.

          “Replaced Lender” shall have the meaning provided in Section 2.13.

          “Replacement Lender” shall have the meaning provided in Section 2.13.

          “Reply Amount” shall have the meaning provided in Schedule XII.

          “Reply Price” shall have the meaning provided in Schedule XII.

          “Reportable Event” shall mean an event described in Section 4043(c) of ERISA with
respect to a Pension Plan other than those events as to which the 30-day notice period is waived
under subsection .22, .23, .25, .27 or .28 of PBGC Regulation Section 4043 as in effect on the date
hereof (no matter how such notice requirement may be changed in the future).

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          “Required Lenders” shall mean, at any time, Non-Defaulting Lenders the sum of whose
outstanding Term Loans and Revolving Loan Commitments at such time (or, after the termination
thereof, outstanding Revolving Loans and RL Percentages of (x) outstanding Swingline Loans at such
time and (y) Letter of Credit Outstandings at such time) represents at least a majority of the sum
of (i) all outstanding Term Loans of Non-Defaulting Lenders of such time and (ii) the Total
Revolving Loan Commitment in effect at such time less the Revolving Loan Commitments of all
Defaulting Lenders at such time (or, after the termination thereof, the sum of then total
outstanding Revolving Loans of Non-Defaulting Lenders and the aggregate RL Percentages of all
Non-Defaulting Lenders of the total outstanding Swingline Loans and Letter of Credit Outstandings
at such time).

          “Responsible Officer” shall mean the chief executive officer, the president, the chief
operating officer, any senior vice-president or any Authorized Financial Officer of Holdings or the
Borrower.

          “Restricted” shall mean, when referring to cash or Cash Equivalents of Holdings or any
of its Subsidiaries, that such cash or Cash Equivalents (i) appear (or would be required to appear)
as “restricted” on a consolidated balance sheet of Holdings or of any such Subsidiary (unless such
appearance is related to the Credit Documents or Liens created thereunder), (ii) are subject to any
Lien in favor of any Person other than the Collateral Agent for the benefit of the Secured
Creditors or (iii) are not otherwise generally available for use by Holdings or such Subsidiary.

          “Return Bid” shall have the meaning provided in Schedule XII.

          “Returns” shall have the meaning provided in Section 8.09.

          “Revolving Loan” shall have the meaning provided in Section 2.01(b).

          “Revolving Loan Commitment” shall mean, for each Lender, the amount set forth opposite
such Lender’s name in Schedule I directly below the column entitled “Revolving Loan
Commitment,” as same may be (x) reduced from time to time or terminated pursuant to Sections
4.02, 4.03 and/or 11, as applicable, (y) increased from time to time pursuant
to Section 2.15 or (z) adjusted from time to time as a result of assignments to or from
such Lender pursuant to Section 2.13 or 13.04(b). In addition, the Revolving Loan
Commitment of each Lender shall include, subject to the consent of such Lender, any Extended
Revolving Loan Commitment of such Lender.

          “Revolving Loan Maturity Date” shall mean the Initial Revolving Loan Maturity Date;
provided that, with respect to any Tranche of Extended Revolving Loan Commitments (and
related outstandings), the Revolving Loan Maturity Date with respect thereto shall instead be the
final maturity date as specified in the applicable Extension Offer accepted by the respective
Lender.

          “Revolving Note” shall have the meaning provided in Section 2.05(a).

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          “RL Lender” shall mean each Lender with a Revolving Loan Commitment or with
outstanding Revolving Loans (or with participations in Letter of Credit Outstandings or Swingline
Loans).

          “RL Percentage” of any RL Lender at any time shall mean a fraction (expressed as a
percentage) the numerator of which is the Revolving Loan Commitment of such Lender at such time and
the denominator of which is the Total Revolving Loan Commitment at such time, provided that
if the RL Percentage of any RL Lender is to be determined after the Total Revolving Loan Commitment
has been terminated, then the RL Percentage of such RL Lender shall be determined immediately prior
(and without giving effect) to such termination (but otherwise giving effect to any subsequent
assignments of outstanding Revolving Loans and Letter of Credit Oustandings); provided,
further, that in the case of Section 2.18 when a Defaulting Lender shall exist, “RL
Percentage” shall mean the percentage of the Total Revolving Loan Commitment (disregarding any
Defaulting Lender’s Revolving Loan Commitment) represented by such Lender’s Revolving Loan
Commitment.

          “S&P” shall mean Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

          “Scheduled Incremental Term Loan Repayment” shall have the meaning provided in
Section 5.02(b)(ii).

          “Scheduled Incremental Term Loan Repayment Date” shall have the meaning provided in
Section 5.02(b)(ii).

          “Scheduled Initial Term Loan Repayment” shall have the meaning provided in Section
5.02(b)(i).

          “Scheduled Initial Term Loan Repayment Date” shall have the meaning provided in
Section 5.02(b)(i).

          “Scheduled Term Loan Repayment” shall mean each Scheduled Initial Term Loan Repayment
and each Scheduled Incremental Term Loan Repayment of a given Tranche, as the context may require.

          “Scheduled Term Loan Repayment Date” shall mean each Scheduled Initial Term Loan
Repayment Date and each Scheduled Incremental Term Loan Repayment Date of a given Tranche, as the
context may require.

          “SEC” shall have the meaning provided in Section 9.01(a).

          “Section 5.04(b)(ii) Certificate” shall have the meaning provided in Section
5.04(b)(ii).

          “Secured Creditors” shall have the meaning assigned that term in the respective
Security Documents.

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          “Secured Leverage Ratio” shall mean, at any date of determination, the ratio of
Consolidated Secured Indebtedness on such date to Consolidated EBITDA for the Test Period last
ended on or prior to such date; provided that, for purposes of any calculation of the
Secured Leverage Ratio pursuant to this Agreement, (i) Consolidated EBITDA shall be determined on
a Pro Forma Basis in accordance with clause (iii) of the definition of “Pro Forma Basis” contained
herein and (ii) Consolidated Secured Indebtedness shall be determined on a Pro Forma Basis in
accordance with the requirements of the definition of “Pro Forma Basis” contained herein.

          “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

          “Securities Account” shall have the meaning provided the term “securities account” in
the UCC as in effect on the date hereof in the State of New York.

          “Security Agreement” shall have the meaning provided in Section 6.10.

          “Security Agreement Collateral” shall mean all “Collateral” as defined in the Security
Agreement.

          “Security Document” shall mean and include each of the Security Agreement, the Pledge
Agreement and, after the execution and delivery thereof, each Additional Security Document.

          “Seller Financing” shall mean Indebtedness of the Borrower or a Subsidiary Guarantor
issued as consideration to a seller of assets (including equity) pursuant to a Permitted
Acquisition.

          “Settlement Service” shall have the meaning provided in Section 13.04.

          “Significant Asset Sale” shall mean each Asset Sale (or series of related Asset Sales)
which generates Net Sale Proceeds of at least $5,000,000.

          “Specified Default” shall mean any Default under Section 11.01 or
11.05 (other than with respect to an Immaterial Subsidiary).

          “Start Date” shall have the meaning provided in the definition of “Applicable
Margin”.

          “Stated Amount” of each Letter of Credit shall mean, at any time, the maximum amount
available to be drawn thereunder (in each case determined without regard to whether any conditions
to drawing could then be met).

          “Subsidiaries Guaranty” shall have the meaning provided in Section 6.11.

          “Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason of the

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happening of
any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person
and (ii) any partnership, limited liability company, association, joint venture or other entity in
which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity
interest at the time.

          “Subsidiary Guarantor” shall mean each Wholly-Owned Domestic Subsidiary of the
Borrower (other than the (x) Captive Insurance Company and (y) until such time as the License
Subsidiary has complied with Section 9.12(e), the License Subsidiary).

          “Swingline Expiry Date” shall mean that date which is five Business Days prior to the
Revolving Loan Maturity Date.

          “Swingline Lender” shall mean DBTCA for so long as DBTCA is the Administrative Agent
hereunder and thereafter shall mean the successor Administrative Agent in its individual capacity.

          “Swingline Loan” shall have the meaning provided in Section 2.01(d).

          “Swingline Loan Exposure” shall mean, at any time, the aggregate principal amount of
all Swingline Loans outstanding at such time. The Swingline Loan Exposure of any RL Lender at any
time shall be its RL Percentage of the aggregate Swingline Loan Exposure at such time.

          “Swingline Note” shall have the meaning provided in Section 2.05(a).

          “Swiss Clubs Sale” shall mean either (x) the sale of any or all of the clubs owned by
the Swiss Subsidiary on the Effective Date or (y) the sale of all the capital stock of the Swiss
Subsidiary so long as the only clubs included in such sale are those clubs owned by the Swiss
Subsidiary on the Effective Date (it being understood that, in the case of this clause (y), to the
extent that clubs other than those owned by the Swiss Subsidiary on the Effective date are included
in such sale, the sale of such clubs shall only be permitted to the extent such clubs could be sold
at such time pursuant to (and utilize the basket under) Section 10.02(iv)).

          “Swiss Subsidiary” shall mean Town Sports, A.G., a corporation organized under the
laws of Switzerland and a Wholly Owned Foreign Subsidiary of the Borrower.

          “Syndication Agent” shall mean KeyBank National Association, in its capacity as
syndication agent.

          “Tax Benefit” shall have the meaning provided in Section 5.04(c).

          “Taxes” shall mean any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by
any political subdivision or taxing authority thereof or therein, including any interest,
additions to tax or penalties applicable thereto.

          “Term Loan” shall mean each Initial Term Loan and each Incremental Term Loan.

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          “Term Loan Commitments” shall mean, collectively, the Initial Term Loan Commitments
and the Incremental Term Loan Commitments.

          “Term Loan Maturity Date” shall mean the Initial Term Loan Maturity Date;
provided that, with respect to any Tranche of Extended Term Loans, the Term Loan Maturity
Date with respect thereto shall instead be the final maturity date as specified in the applicable
Extension Offer accepted by the respective Lender.

          “Term Loan Percentage” of a Tranche of Term Loans shall mean, at any time, a fraction
(expressed as a percentage), the numerator of which is equal to the aggregate outstanding principal
amount of all Term Loans of such Tranche at such time and the denominator of which is equal to the
aggregate outstanding principal amount of all Term Loans of all Tranches at such time.

          “Test Period” shall mean each period of four consecutive fiscal quarters of Holdings
then last ended (in each case taken as one accounting period).

          “Total Commitment” shall mean, at any time, the sum of the Commitments of each of the
Lenders at such time.

          “Total Incremental Term Loan Commitment” of any Tranche of Incremental Term Loans
shall mean, at any time, the sum of the Incremental Term Loan Commitments of such Tranche of each
of the Lenders at such time.

          “Total Initial Term Loan Commitment” shall mean, at any time, the sum of the Initial
Term Loan Commitments of each of the Lenders at such time.

          “Total Leverage Ratio” shall mean, at any date of determination, the ratio of
Consolidated Indebtedness on such date to Consolidated EBITDA for the Test Period last ended on or
prior to such date; provided that (i) for purposes of any calculation of the Total Leverage
Ratio pursuant to this Agreement, Consolidated EBITDA shall be determined on a Pro Forma Basis in
accordance with clause (iii) of the definition of “Pro Forma Basis” contained herein and (ii) for
purposes of any calculation of the Total Leverage Ratio in determining the Incremental Commitment
Requirements and pursuant to Sections 2.17(a), 9.15, 10.03(vi),
10.04(xi) and 10.08(i)(y) only, Consolidated Indebtedness shall be determined on a
Pro Forma Basis in accordance with the requirements of the definition of “Pro Forma Basis”
contained herein.

          “Total Revolving Loan Commitment” shall mean, at any time, the sum of the Revolving
Loan Commitments of each of the Lenders at such time.

          “Total Unutilized Revolving Loan Commitment” shall mean, at any time, an amount equal
to the remainder of (x) the Total Revolving Loan Commitment then in effect less (y) the sum of the
aggregate principal amount of all Revolving Loans and Swingline Loans then outstanding plus the
aggregate amount of all Letter of Credit Outstandings.

          “Tranche” shall mean the respective facility and commitments utilized in making Loans
hereunder, with there being three separate Tranches on the Effective Date, i.e., Initial Term
Loans, Revolving Loans and Swingline Loans; provided that, for purposes of Sections

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2.13, 13.04(b) and 13.12(a) and (b) and the definition of “Majority
Lenders”, Revolving Loans and Swingline Loans shall be deemed to constitute part of a single
“Tranche”. In addition, and notwithstanding the foregoing, any Incremental Term Loans
extended after the Initial Borrowing Date shall, except to the extent provided in Section
2.14(c), be made pursuant to one or more additional Tranches of Term Loans which shall be
designated pursuant to the respective Incremental Term Loan Commitment Agreement in accordance with
the relevant requirements specified in Section 2.14. Furthermore, after giving effect to
an Extension pursuant to Section 2.16, (x) any Revolving Loans pursuant to Extended
Revolving Loan Commitments shall constitute a separate Tranche of Revolving Loans from the Tranche
of Revolving Loans from which they were converted and (y) any Extended Term Loans shall constitute
a separate Tranche of Term Loans from the Tranche of Term Loans from which they were converted.

          “Transaction” shall mean, collectively, (i) the consummation of the Refinancing, (ii)
the consummation of the Existing Holdings Notes Redemption, (iii) the entering into of the Credit
Documents on the Initial Borrowing Date and the incurrence of Initial Term Loans on such date and
(iv) the payment of all fees and expenses in connection with the foregoing.

          “Transaction Expenses” shall mean all fees and expenses incurred in connection with,
and payable prior to or in connection with the closing of, the Transaction and the transactions
contemplated in connection with the Transaction, including all closing fees paid to any of the
Lenders and the Administrative Agent hereunder, attorney’s fees, accountants’ fees, placement
agents’ fees, discounts, commissions and brokerage fees and consultant fees.

          “Type” shall mean the type of Loan determined with regard to the interest option
applicable thereto, i.e., whether a Base Rate Loan or a Eurodollar Loan.

          “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the
relevant jurisdiction.

          “Unfunded Current Liability” of any Pension Plan shall mean the amount, if any, by
which the actuarial present value of the accumulated benefits under the Plan as of the close of its
most recent plan year exceeds the fair market value of the assets allocable thereto, each
determined in accordance with Statement of Financial Accounting Standards No. 87, based upon the
actuarial assumptions used by the Pension Plan’s actuary in the most recent annual valuation of the
Pension Plan.

          “United States” and “U.S.” shall each mean the United States of America.

          “Unpaid Drawing” shall have the meaning provided in Section 3.05(a).

          “Unrestricted” shall mean, when referring to cash or Cash Equivalents of the Borrower
or any of its Subsidiaries, that such cash or Cash Equivalents are not Restricted.

          “Unutilized Revolving Loan Commitment” shall mean, with respect to any Lender at any
time, such Lender’s Revolving Loan Commitment at such time less the sum of (i) the aggregate
outstanding principal amount of all Revolving Loans made by such Lender at such time and (ii) such
Lender’s RL Percentage of the Letter of Credit Outstandings at such time.

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          “Voting Equity Interests” shall mean, as to any Person, any class or classes of
outstanding Equity Interests of such Person pursuant to which the holders thereof have the general
voting power under ordinary circumstances to elect at least a majority of the board of directors of
such Person.

          “Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at
any date, the number of years obtained by dividing (i) the then outstanding principal amount of
such Indebtedness into (ii) the product obtained by multiplying (x) the amount of each then
remaining installment or other required scheduled payments of principal, including payment at final
maturity, in respect thereof, by (y) the number of years (calculated to the nearest one-twelfth)
that will elapse between such date and the making of such payment.

          “Wholly-Owned Domestic Subsidiary” shall mean, as to any Person, any Wholly-Owned
Subsidiary of such Person which is also a Domestic Subsidiary of such Person.

          “Wholly-Owned Foreign Subsidiary” shall mean, as to any Person, any Wholly-Owned
Subsidiary of such Person which is also a Foreign Subsidiary of such Person.

          “Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of
whose Equity Interests (other than, in the case of a Foreign Subsidiary, director’s qualifying
shares and nominal amount of shares held by local nationals, in each case to the extent required by
applicable law) is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries of
such Person and (ii) any partnership, limited liability company, association, joint venture or
other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a
100% equity interest at such time. Unless otherwise indicated herein, or the context otherwise
requires, all references herein to any Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries shall
mean and be deemed to be references to a Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries, as
the case may be, of the Borrower.

          SECTION 2. Amount and Terms of Credit.

          2.01 The Commitments. (a) Subject to and upon the terms and conditions set forth herein, each Lender with an Initial
Term Loan Commitment severally agrees to make a term loan or term loans (each, an “Initial Term
Loan” and, collectively, the “Initial Term Loans”) to the Borrower, which Initial Term
Loans (i) shall be incurred pursuant to a single drawing on the Initial Borrowing Date, (ii) shall
be denominated in Dollars, (iii) except as hereinafter provided, shall, at the option of the
Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or Eurodollar
Loans, provided that, except as otherwise specifically provided in Section 2.10(b),
all Initial Term Loans comprising the same Borrowing shall at all times be of the same Type, and
(iv) shall be made by each such Lender in that aggregate principal amount which does not exceed the
Initial Term Loan Commitment of such Lender on the Initial Borrowing Date. Once repaid, Initial
Term Loans incurred hereunder may not be reborrowed.

          (b) Subject to and upon the terms and conditions set forth herein, each Lender with a
Revolving Loan Commitment severally agrees to make, at any time and from time to time on or after
the Initial Borrowing Date and prior to the Revolving Loan Maturity Date, a

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revolving loan or
revolving loans (each a “Revolving Loan” and, collectively, the “Revolving Loans”)
to the Borrower, which Revolving Loans (i) shall be denominated in Dollars, (ii) shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or
Eurodollar Loans, provided that, except as otherwise specifically provided in Section
2.10(b), all Revolving Loans comprising the same Borrowing shall at all times be of the same
Type, (iii) may be repaid and reborrowed in accordance with the provisions hereof, and (iv) shall
not exceed for any such Lender at any time outstanding that aggregate principal amount which, when
added to the product of (x) such Lender’s RL Percentage and (y) the sum of (I) the aggregate amount
of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid with the
proceeds of, and simultaneously with the incurrence of, the respective incurrence of Revolving
Loans) at such time and (II) the aggregate principal amount of all Swingline Loans (exclusive of
Swingline Loans which are repaid with the proceeds of, and simultaneously with the incurrence of,
the respective incurrence of Revolving Loans) then outstanding, equals the Revolving Loan
Commitment of such Lender at such time.

          (c) Subject to and upon the terms and conditions set forth herein, each Lender with an
Incremental Term Loan Commitment for a given Tranche of Incremental Term Loans severally agrees to
make a term loan or term loans (each, an “Incremental Term Loan” and, collectively, the
“Incremental Term Loans”) to the Borrower, which Incremental Term Loans (i) shall be
incurred pursuant to a single drawing of such Tranche on the applicable Incremental Term Loan
Borrowing Date, (ii) shall be denominated in Dollars, (iii) except as hereinafter provided, shall,
at the option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate
Loans or Eurodollar Loans, provided that, except as otherwise specifically provided in
Section 2.10(b), all Incremental Term Loans of a given Tranche made as part of the same
Borrowing shall at all times consist of Incremental Term Loans of the same Type, and (iv) shall not
exceed for any such Incremental Term Loan Lender at any time of any incurrence thereof, the
Incremental Term Loan Commitment of such Incremental Term Loan Lender for such Tranche on the
respective Incremental Term Loan Borrowing Date. Once repaid, Incremental Term Loans incurred
hereunder may not be reborrowed.

          (d) Subject to and upon the terms and conditions set forth herein, the Swingline Lender agrees
to make, at any time and from time to time on or after the Initial Borrowing Date and prior to the
Swingline Expiry Date, a revolving loan or revolving loans (each a “Swingline Loan” and,
collectively, the “Swingline Loans”) to the Borrower, which Swingline Loans (i) shall be
incurred and maintained as Base Rate Loans, (ii) shall be denominated in Dollars, (iii) may be
repaid and reborrowed in accordance with the provisions hereof, (iv) shall not exceed in aggregate
principal amount at any time outstanding, when
combined with the aggregate principal amount of all Revolving Loans then outstanding and the
aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which are
repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence
of Swingline Loans) at such time, an amount equal to the Total Revolving Loan Commitment at such
time, and (v) shall not exceed in aggregate principal amount at any time outstanding the Maximum
Swingline Amount. Notwithstanding anything to the contrary contained in this Section
2.01(d), the Swingline Lender shall not make any Swingline Loan after it has received written
notice from the Borrower, any other Credit Party, the Required Lenders or the Majority Lenders with
Revolving Loans and/or Revolving Loan Commitments stating that a Default or an Event of Default
exists and is continuing until such time as the Swingline Lender shall have

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received written notice
(A) of rescission of all such notices from the party or parties originally delivering such notice
or notices or (B) of the waiver of such Default or Event of Default by the Required Lenders.

          (e) On any Business Day, the Swingline Lender may, in its sole discretion, give notice by 3:00
P.M. (New York time) to the RL Lenders that the Swingline Lender’s outstanding Swingline Loans
shall be funded with one or more Borrowings of Revolving Loans (provided that such notice
shall be deemed to have been automatically given upon the occurrence of a Default or an Event of
Default under Section 11.05 or upon the exercise of any of the remedies provided in the
last paragraph of Section 11), in which case one or more Borrowings of Revolving Loans
constituting Base Rate Loans (each such Borrowing, a “Mandatory Borrowing”) shall be made
on the immediately succeeding Business Day (or on the second succeeding Business Day to the extent
that the aforementioned notice is delivered (the to the extent required to be delivered) after 3:00
P.M. (New York time) on a Business Day) by all RL Lenders pro rata based on each
such RL Lender’s RL Percentage (determined before giving effect to any termination of the Revolving
Loan Commitments pursuant to the last paragraph of Section 11) and the proceeds thereof
shall be applied directly by the Swingline Lender to repay the Swingline Lender for such
outstanding Swingline Loans. Each RL Lender hereby irrevocably agrees to make Revolving Loans upon
one Business Day’s notice pursuant to each Mandatory Borrowing in the amount and in the manner
specified in the preceding sentence and on the date specified in writing by the Swingline Lender
notwithstanding (i) the amount of the Mandatory Borrowing may not comply with the Minimum Borrowing
Amount otherwise required hereunder, (ii) whether any conditions specified in Section 7 are
then satisfied, (iii) whether a Default or an Event of Default then exists, (iv) the date of such
Mandatory Borrowing, and (v) the amount of the Total Revolving Loan Commitment at such time. In
the event that any Mandatory Borrowing cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code with respect to the Borrower), then each RL Lender hereby agrees that it shall
forthwith purchase (as of the date the Mandatory Borrowing would otherwise have occurred, but
adjusted for any payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Lender such participations in the outstanding Swingline Loans as shall
be necessary to cause the RL Lenders to share in such Swingline Loans ratably based upon their
respective RL Percentages (determined before giving effect to any termination of the Revolving Loan
Commitments pursuant to the last paragraph of Section 11), provided that (x) all
interest payable on the Swingline Loans shall be for the account of the Swingline Lender until the
date as of which the respective participation is required to be purchased and, to the extent
attributable to the purchased participation, shall be payable to the participant from and after
such
date and (y) at the time any purchase of participations pursuant to this sentence is actually
made, the purchasing RL Lender shall be required to pay the Swingline Lender interest on the
principal amount of participation purchased for each day from and including the day upon which the
Mandatory Borrowing would otherwise have occurred to but excluding the date of payment for such
participation, at the overnight Federal Funds Rate for the first three days and at the interest
rate otherwise applicable to Revolving Loans maintained as Base Rate Loans hereunder for each day
thereafter.

          (f) If the Initial Revolving Loan Maturity Date shall have occurred at a time when Extended
Revolving Loan Commitments are in effect, then on the Initial Revolving Loan

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Maturity Date all then
outstanding Swingline Loans shall be repaid in full on such date (and there shall be no adjustment
to the participations in such Swingline Loans as a result of the occurrence of the Initial
Revolving Loan Maturity Date); provided that, if on the occurrence of the Initial Revolving
Loan Maturity Date (after giving effect to any repayments of Revolving Loans and any reallocation
of Letter of Credit participations as contemplated in Section 3.07), there shall exist
sufficient unutilized Extended Revolving Loan Commitments so that the respective outstanding
Swingline Loans could be incurred pursuant to Extended Revolving Loan Commitments, which will
remain in effect after the occurrence of the Initial Revolving Loan Maturity Date, then there shall
be an automatic adjustment on such date of the participations in such Swingline Loans and same
shall be deemed to have been incurred solely pursuant to the Extended Revolving Loan Commitments
and such Swingline Loans shall not be so required to be repaid in full on the Initial Revolving
Loan Maturity Date.

          2.02 Minimum Amount of Each Borrowing. The aggregate principal amount of each Borrowing of Loans under a respective Tranche shall
not be less than the Minimum Borrowing Amount applicable to such Tranche. More than one Borrowing
may occur on the same date, but at no time shall there be outstanding more than 15 Borrowings of
Eurodollar Loans in the aggregate for all Tranches of Loans (unless a greater number of such
Borrowings is agreed to by the Administrative Agent).

          2.03 Notice of Borrowing. (a) Whenever the Borrower desires to incur (x) Eurodollar Loans hereunder, it shall give
the Administrative Agent at the Notice Office at least three Business Days’ prior notice of each
Eurodollar Loan to be incurred hereunder or (y) Base Rate Loans hereunder (excluding Swingline
Loans and Revolving Loans made pursuant to a Mandatory Borrowing), it shall give the Administrative
Agent at the Notice Office at least one Business Day’s prior notice of each Base Rate Loan to be
incurred hereunder, provided that (in each case) any such notice shall be deemed to have
been given on a certain day only if given before 12:00 Noon (New York time) on such day. Each such
notice (each a “Notice of Borrowing”), except as otherwise expressly provided in
Section 2.10, shall be irrevocable and shall be in writing, or by telephone promptly
confirmed in writing, in the form of Exhibit A-1, appropriately completed to specify: (i)
the aggregate principal amount of the Loans to be incurred pursuant to such Borrowing, (ii) the
date of such Borrowing (which shall be a Business Day), (iii) whether the Loans being incurred
pursuant to such Borrowing shall constitute Initial Term Loans, Revolving Loans or Incremental Term
Loans and, if Incremental Term Loans, the specific Tranche thereof,
and (iv) whether the Loans being incurred pursuant to such Borrowing are to be initially
maintained as Base Rate Loans or, to the extent permitted hereunder, Eurodollar Loans and, if
Eurodollar Loans, the initial Interest Period to be applicable thereto. The Administrative Agent
shall promptly give each Lender which is required to make Loans of the Tranche specified in the
respective Notice of Borrowing, written notice of such proposed Borrowing, of such Lender’s
proportionate share thereof and of the other matters required by the immediately preceding sentence
to be specified in the Notice of Borrowing.

          (b) (i) Whenever the Borrower desires to incur Swingline Loans hereunder, the Borrower shall
give the Swingline Lender no later than 1:00 P.M. (New York time) on the date that a Swingline Loan
is to be incurred, written notice or telephonic notice promptly confirmed in writing of each
Swingline Loan to be incurred hereunder. Each such notice shall be irrevocable and specify in each
case (A) the date of Borrowing (which shall be a Business Day)

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and (B) the aggregate principal
amount of the Swingline Loans to be incurred pursuant to such Borrowing.

          (ii) Mandatory Borrowings shall be made upon the notice specified in Section 2.01(e),
with the Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of
the Mandatory Borrowings as set forth in Section 2.01(e).

          (c) Without in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice of any Borrowing or prepayment of Loans, the Administrative Agent or the
Swingline Lender, as the case may be, may act without liability upon the basis of telephonic notice
of such Borrowing or prepayment, as the case may be, believed by the Administrative Agent or the
Swingline Lender, as the case may be, in good faith to be from an Authorized Officer of the
Borrower, prior to receipt of written confirmation. In each such case, the Borrower hereby waives
the right to dispute the Administrative Agent’s or the Swingline Lender’s record of the terms of
such telephonic notice of such Borrowing or prepayment of Loans, as the case may be, absent
manifest error.

          2.04 Disbursement of Funds. No later than 1:00 P.M. (New York time) on the date specified in each Notice of Borrowing
(or (x) in the case of Swingline Loans, no later than 3:00 P.M. (New York time) on the date
specified pursuant to Section 2.03(b)(i) or (y) in the case of Mandatory Borrowings, no
later than 1:00 P.M. (New York time) on the date specified in Section 2.01(e)), each Lender
with a Commitment of the respective Tranche will make available its pro rata
portion (determined in accordance with Section 2.07) of each such Borrowing requested to be
made on such date (or in the case of Swingline Loans, the Swingline Lender will make available the
full amount thereof). All such amounts will be made available in Dollars and in immediately
available funds at the Payment Office, and the Administrative Agent will, except in the case of
Revolving Loans made pursuant to a Mandatory Borrowing, make available to the Borrower at the
Payment Office the aggregate of the amounts so made available by the Lenders. Unless the
Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that
such Lender does not intend to make available to the Administrative Agent such Lender’s portion of
any Borrowing to be made on such date, the Administrative Agent may assume that such Lender has
made such amount available to the Administrative Agent on such date of
Borrowing and the Administrative Agent may (but shall not be obligated to), in reliance upon
such assumption, make available to the Borrower a corresponding amount. If such corresponding
amount is not in fact made available to the Administrative Agent by such Lender, the Administrative
Agent shall be entitled to recover such corresponding amount on demand from such Lender. If such
Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower and the Borrower shall
immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent
also shall be entitled to recover on demand from such Lender or the Borrower, as the case may be,
interest on such corresponding amount in respect of each day from the date such corresponding
amount was made available by the Administrative Agent to the Borrower until the date such
corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if
recovered from such Lender, the overnight Federal Funds Rate for the first three days and at the
interest rate otherwise applicable to such Loans for each day thereafter and (ii) if recovered from
the Borrower, the rate of interest applicable to the respective Borrowing, as determined pursuant
to Section 2.08. Nothing in this

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Section 2.04 shall be deemed to relieve any
Lender from its obligation to make Loans hereunder or to prejudice any rights which the Borrower
may have against any Lender as a result of any failure by such Lender to make Loans hereunder.

          2.05 Notes. (a) The Borrower’s obligations to pay the principal of, and interest on, the Loans made by each
Lender shall be evidenced in the Register maintained by the Administrative Agent pursuant to
Section 13.15 and shall, if requested by such Lender, also be evidenced (i) in the case of
Initial Term Loans, by a promissory note duly executed and delivered by the Borrower substantially
in the form of Exhibit B-1, with blanks appropriately completed in conformity herewith
(each an “Initial Term Note” and, collectively, the “Initial Term Notes”), (ii) in
the case of Revolving Loans, by a promissory note duly executed and delivered by the Borrower
substantially in the form of Exhibit B-2, with blanks appropriately completed in conformity
herewith (each a “Revolving Note” and, collectively, the “Revolving Notes”), (iii)
in the case of Swingline Loans, by a promissory note duly executed and delivered by the Borrower
substantially in the form of Exhibit B-3, with blanks appropriately completed in conformity
herewith (the “Swingline Note”), and (iv) in the case of Incremental Term Loans, by a
promissory note duly executed and delivered by the Borrower substantially in the form of
Exhibit B-4, with blanks appropriately completed in conformity herewith (each, an
“Incremental Term Note” and, collectively, the “Incremental Term Notes”).

          (b) Each Lender will note on its internal records the amount of each Loan made by it and each
payment in respect thereof and prior to any transfer of any of its Notes will endorse on the
reverse side thereof the outstanding principal amount of Loans evidenced thereby. Failure to make
any such notation or any error in such notation shall not affect the Borrower’s obligations in
respect of such Loans.

          (c) Notwithstanding anything to the contrary contained above in this Section 2.05 or
elsewhere in this Agreement, Notes shall only be delivered to Lenders which at any time
specifically request the delivery of such Notes. No failure of any Lender to request or obtain a
Note evidencing its Loans to the Borrower shall affect or in any manner impair the obligations of
the Borrower to pay the Loans (and all related Obligations) incurred by the Borrower which
would otherwise be evidenced thereby in accordance with the requirements of this Agreement, and
shall not in any way affect the security or guaranties therefor provided pursuant to the various
Credit Documents. Any Lender which does not have a Note evidencing its outstanding Loans shall in
no event be required to make the notations otherwise described in preceding clause (b). At any
time when any Lender requests the delivery of a Note to evidence any of its Loans, the Borrower
shall (at its expense) promptly execute and deliver to the respective Lender the requested Note in
the appropriate amount or amounts to evidence such Loans.

          2.06 Conversions. The Borrower shall have the option to convert, on any Business Day, all or a portion equal
to at least the Minimum Borrowing Amount of the outstanding principal amount of Loans (other than
Swingline Loans which may not be converted pursuant to this Section 2.06) made pursuant to
one or more Borrowings (so long as of the same Tranche) of one or more Types of Loans into a
Borrowing (of the same Tranche) of another Type of Loan, provided that, (i) except as
otherwise provided in Section 2.10(b), Eurodollar Loans may be converted into Base Rate
Loans only on the last day of an Interest Period applicable to the Loans being converted and no
such partial conversion of Eurodollar Loans shall

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reduce the outstanding principal amount of such
Eurodollar Loans made pursuant to a single Borrowing to less than the Minimum Borrowing Amount
applicable thereto, (ii) Base Rate Loans may not be converted into Eurodollar Loans if (x) any
Event of Default under Section 11.05 with respect any Credit Party (other than an
Immaterial Subsidiary) is in existence on the proposed date of conversion or (y) any other Event of
Default or any Specified Default is in existence on the proposed date of the conversion and (in the
case of this sub-clause (y) only) the Required Lenders determine (in their sole discretion) that
such conversion would be disadvantageous to the Lenders at such time, and (iii) no conversion
pursuant to this Section 2.06 shall result in a greater number of Borrowings of Eurodollar
Loans than is permitted under Section 2.02. Each such conversion shall be effected by the
Borrower by giving the Administrative Agent at the Notice Office prior to 12:00 Noon (New York
time) (x) at least three Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) in the case of a conversion into Eurodollar Loans and (y) at least one
Business Day’s prior written notice (or telephonic notice promptly confirmed in writing) in the
case of a conversion into Base Rate Loans (in each case, a “Notice of
Conversion/Continuation”) in the form of Exhibit A-2, appropriately completed to
specify the Loans to be so converted, the Borrowing or Borrowings pursuant to which such Loans were
incurred and, if to be converted into Eurodollar Loans, the Interest Period to be initially
applicable thereto. The Administrative Agent shall give each Lender prompt notice of any such
proposed conversion affecting any of its Loans.

          2.07 Pro Rata Borrowings. All Borrowings of Initial Term Loans, Incremental Term Loans and Revolving Loans under this
Agreement shall be incurred from the Lenders pro rata on the basis of their Initial
Term Loan Commitments, applicable Incremental Term Loan Commitments or Revolving Loan Commitments,
as the case may be, provided that all Mandatory Borrowings shall be incurred from the RL
Lenders pro rata on the basis of their RL Percentages. It is understood that no
Lender shall be responsible for any default by any other Lender of its obligation to make Loans
hereunder and that each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

          2.08 Interest. (a) The Borrower agrees to pay interest in respect of the unpaid principal amount of each Base
Rate Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether
by acceleration or otherwise) and (ii) the conversion of such Base Rate Loan to a Eurodollar Loan
pursuant to Section 2.06 or 2.09, as applicable, at a rate per annum which shall be
equal to the sum of the relevant Applicable Margin plus the Base Rate, each as in effect from time
to time.

          (b) The Borrower agrees to pay interest in respect of the unpaid principal amount of each
Eurodollar Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof
(whether by acceleration or otherwise) and (ii) the conversion of such Eurodollar Loan to a Base
Rate Loan pursuant to Section 2.06, 2.09 or 2.10, as applicable, at a rate
per annum which shall, during each Interest Period applicable thereto, be equal to the sum of the
relevant Applicable Margin as in effect from time to time during such Interest Period plus the
Eurodollar Rate for such Interest Period.

          (c) Overdue principal and, to the extent permitted by law, overdue interest in respect of each
Loan shall, in each case, bear interest at a rate per annum equal to the greater of

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(x) the rate
which is 2% in excess of the rate then borne by such Loans and (y) the rate which is 2% in excess
of the rate otherwise applicable to Base Rate Loans of the respective Tranche from time to time,
and all other overdue amounts payable hereunder and under any other Credit Document shall bear
interest at a rate per annum equal to the rate which is 2% in excess of the rate applicable to
Revolving Loans that are maintained as Base Rate Loans from time to time. Interest that accrues
under this Section 2.08(c) shall be payable on demand.

          (d) Accrued (and theretofore unpaid) interest shall be payable (i) in respect of each Base
Rate Loan, (x) quarterly in arrears on each Quarterly Payment Date, (y) on the date of (A) any
repayment or prepayment in full of all outstanding Term Loans of any Tranche and (B) in the case of
Revolving Loans, any termination of the Total Revolving Loan Commitment, and (z) at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand, and (ii) in respect of
each Eurodollar Loan, (x) on the last day of each Interest Period applicable thereto and, in the
case of an Interest Period in excess of three months, on each date occurring at three month
intervals after the first day of such Interest Period, (y) on the date of any repayment or
prepayment (on the amount repaid or prepaid), and (z) at maturity (whether by acceleration or
otherwise) and, after such maturity, on demand.

          (e) Upon each Interest Determination Date, the Administrative Agent shall determine the
Eurodollar Rate for each Interest Period applicable to the respective Eurodollar Loans and shall
promptly notify the Borrower and the Lenders thereof. Each such determination shall, absent
manifest error, be final and conclusive and binding on all parties hereto.

          2.09 Interest Periods. At the time the Borrower gives any Notice of Borrowing or Notice of Conversion/Continuation in
respect of the making of, or conversion into, any Eurodollar Loan (in the case of the initial
Interest Period applicable thereto) or prior to 12:00 Noon (New York time) on the third Business
Day prior to the expiration of an Interest Period applicable to such Eurodollar Loan (in the case
of any subsequent Interest Period), the Borrower shall have the right to elect the interest period
(each, an “Interest Period”) applicable to such Eurodollar Loan, which Interest Period
shall, at the option of the Borrower, be a one, two, three or six month period, or, to the extent
agreed to by all Lenders with Commitments and/or Loans under the relevant Tranche, a nine or twelve
month period, provided that (in each case):

     (i) all Eurodollar Loans comprising a Borrowing shall at all times have the same
Interest Period;

     (ii) the initial Interest Period for any Eurodollar Loan shall commence on the date of
Borrowing of such Eurodollar Loan (including the date of any conversion thereto from a Base
Rate Loan) and each Interest Period occurring thereafter in respect of such Eurodollar Loan
shall commence on the day on which the next preceding Interest Period applicable thereto
expires;

     (iii) if any Interest Period for a Eurodollar Loan begins on a day for which there is
no numerically corresponding day in the calendar month at the end of such Interest Period,
such Interest Period shall end on the last Business Day of such calendar month;

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     (iv) if any Interest Period for a Eurodollar Loan would otherwise expire on a day which
is not a Business Day, such Interest Period shall expire on the next succeeding Business
Day; provided, however, that if any Interest Period for a Eurodollar Loan
would otherwise expire on a day which is not a Business Day but is a day of the month after
which no further Business Day occurs in such month, such Interest Period shall expire on the
next preceding Business Day;

     (v) no Interest Period may be selected at any time if (x) an Event of Default under
Section 11.05 with respect to any Credit Party (other than an Immaterial Subsidiary)
is then in existence or (y) any other Event of Default or any Specified Default is then in
existence and (in the case of this sub-clause (y) only) the Required Lenders determine (in
their sole discretion) that such conversion would be disadvantageous to the Lenders at such
time;

     (vi) no Interest Period in respect of any Borrowing of any Tranche of Loans shall be
selected which extends beyond the Maturity Date for such Tranche of Loans; and

     (vii) no Interest Period in respect of any Borrowing of any Tranche of Term Loans shall
be selected which extends beyond any date upon which a mandatory repayment of such Tranche
of Term Loans will be required to be made under Section 5.02(b) if the aggregate
principal amount of such Tranche of Term Loans which have Interest Periods which will expire
after such date will be in excess of the aggregate
principal amount of such Tranche of Term Loans then outstanding less the
aggregate amount of such required repayment.

If by 12:00 Noon (New York time) on the third Business Day prior to the expiration of any Interest
Period applicable to a Borrowing of Eurodollar Loans, the Borrower has failed to elect, or is not
permitted to elect, a new Interest Period to be applicable to such Eurodollar Loans as provided
above, the Borrower shall be deemed to have elected to convert such Eurodollar Loans into Base Rate
Loans effective as of the expiration date of such current Interest Period.

          2.10 Increased Costs, Illegality, etc. (a) In the event that any Lender shall have determined (which determination shall, absent
manifest error, be final and conclusive and binding upon all parties hereto but, with respect to
clause (i) below, may be made only by the Administrative Agent):

     (i) on any Interest Determination Date that, by reason of any changes arising after the
date of this Agreement affecting the interbank Eurodollar market, adequate and fair means do
not exist for ascertaining the applicable interest rate on the basis provided for in the
definition of Eurodollar Rate; or

     (ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Eurodollar Loan because of (x)
any change since the Effective Date in any applicable law or governmental rule, regulation,
order, guideline or request (whether or not having the force of law) or in the
interpretation or administration thereof and including the introduction of any new law or
governmental rule, regulation, order, guideline or request, such as, but not limited to

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(A) a change that shall subject any Lender to any Taxes (other than (1) Indemnified Taxes
covered in Section 5.04(a), (2) Excluded Taxes and (3) Other Connection Taxes) on its Loans,
loan principal, Letters of Credit, Commitments or other Obligations, or its deposits,
reserves, other liabilities or capital attributable thereto or (B) a change in official
reserve requirements, but, in all events, excluding reserves required under Regulation D to
the extent included in the computation of the Eurodollar Rate and/or (y) other circumstances
arising since the Effective Date affecting such Lender, the interbank Eurodollar market or
the position of such Lender in such market; or

     (iii) at any time, that the making or continuance of any Eurodollar Loan has been made
(x) unlawful by any law or governmental rule, regulation or order, (y) impossible by
compliance by any Lender in good faith with any governmental request (whether or not having
force of law) or (z) impracticable as a result of a contingency occurring after the
Effective Date which materially and adversely affects the interbank Eurodollar market;

then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)
above) shall promptly give notice (by telephone promptly confirmed in writing) to the Borrower and,
except in the case of clause (i) above, to the Administrative Agent of such determination (which
notice the Administrative Agent shall promptly transmit to each of the other Lenders). Thereafter
(x) in the case of clause (i) above, Eurodollar Loans shall no longer be available until
such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances
giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing
or Notice of Conversion/Continuation given by the Borrower with respect to Eurodollar Loans which
have not yet been incurred (including by way of conversion) shall be deemed rescinded by the
Borrower, (y) in the case of clause (ii) above, the Borrower agrees to pay to such Lender, upon
such Lender’s written request therefor, such additional amounts (in the form of an increased rate
of, or a different method of calculating, interest or otherwise as such Lender in its sole
discretion shall determine) as shall be required to compensate such Lender for such increased costs
or reductions in amounts received or receivable hereunder (a written notice as to the additional
amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof,
submitted to the Borrower by such Lender shall, absent manifest error, be final and conclusive and
binding on all the parties hereto) and (z) in the case of clause (iii) above, the Borrower shall
take one of the actions specified in Section 2.10(b) as promptly as possible and, in any
event, within the time period required by law.

          (b) At any time that any Eurodollar Loan is affected by the circumstances described in
Section 2.10(a)(ii), the Borrower may, and in the case of a Eurodollar Loan affected by the
circumstances described in Section 2.10(a)(iii), the Borrower shall, either (x) if the
affected Eurodollar Loan is then being made initially or pursuant to a conversion, cancel such
Borrowing by giving the Administrative Agent telephonic notice (confirmed in writing) on the same
date that the Borrower was notified by the affected Lender or the Administrative Agent pursuant to
Section 2.10(a)(ii) or (iii) or (y) if the affected Eurodollar Loan is then
outstanding, upon at least three Business Days’ written notice to the Administrative Agent, require
the affected Lender to convert such Eurodollar Loan into a Base Rate Loan, provided that if
more than one Lender is affected at any time, then all affected Lenders must be treated the same
pursuant to this Section 2.10(b).

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          (c) If any Lender determines that after the Effective Date the introduction or effectiveness
of or any change in any applicable law or governmental rule, regulation, order, guideline,
directive or request (whether or not having the force of law) concerning capital adequacy, or any
change in interpretation or administration thereof by the NAIC or any governmental authority,
central bank or comparable agency, will have the effect of increasing the amount of capital
required or expected to be maintained by such Lender or any corporation controlling such Lender
based on the existence of such Lender’s Commitments hereunder or its obligations hereunder, then
the Borrower agrees to pay to such Lender, upon its written demand therefor, such additional
amounts as shall be required to compensate such Lender or such other corporation for the increased
cost to such Lender or such other corporation or the reduction in the rate of return to such Lender
or such other corporation as a result of such increase of capital. In determining such additional
amounts, each Lender will act reasonably and in good faith and will use averaging and attribution
methods which are reasonable, provided that such Lender’s determination of compensation
owing under this Section 2.10(c) shall, absent manifest error, be final and conclusive and
binding on all the parties hereto. Each Lender, upon determining that any additional amounts will
be payable pursuant to this Section 2.10(c), will give prompt written notice thereof to the
Borrower, which notice shall show in reasonable detail the basis for calculation of such additional
amounts.

          (d) Notwithstanding anything in this Agreement to the contrary, (x) the Dodd-Frank Wall Street
Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by
the Bank for International settlements, the Basel Committee on Banking Supervision (or any
successor or similar authority) or the United States regulatory authorities, in each case pursuant
to Basel III, shall in each case be deemed to be a change after the Effective Date in a requirement
of law or governmental rule, regulation or order, regardless of the date enacted, adopted, issued
or implemented for all purposes under or in connection with this Agreement (including this
Section 2.10 and Section 3.06).

          (e) Notwithstanding anything to the contrary in this Section 2.10, the Borrower shall
not be required to compensate a Lender pursuant to this Section 2.10 for any amounts
incurred more than 180 days prior to the date that such Lender notifies the Borrower of such
Lender’s intention to claim compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such 180-day period shall be extended to include the
period of such retroactive effect.

          2.11 Compensation. The Borrower agrees to compensate each Lender, upon its written request (which request shall set
forth in reasonable detail the basis for requesting such compensation), for all reasonable losses,
expenses and liabilities (including, without limitation, any loss, expense or liability incurred by
reason of the liquidation or reemployment of deposits or other funds required by such Lender to
fund its Eurodollar Loans but excluding loss of anticipated profits) which such Lender may sustain:
(i) if for any reason (other than a default by such Lender or the Administrative Agent) a
Borrowing of, or conversion from or into, Eurodollar Loans does not occur on a date specified
therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn by
the Borrower or deemed withdrawn pursuant to Section 2.10(a)); (ii) if any prepayment or
repayment (including any prepayment or repayment made pursuant to Section 5.01, Section
5.02 or as a result of an acceleration of the

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Loans pursuant to Section 11) or
conversion of any of its Eurodollar Loans, or assignment of any of its Eurodollar Loans pursuant to
Section 2.13, occurs on a date which is not the last day of an Interest Period with respect
thereto; (iii) if any prepayment of any of its Eurodollar Loans is not made on any date specified
in a notice of prepayment given by the Borrower; or (iv) as a consequence of (x) any other default
by the Borrower to repay Eurodollar Loans when required by the terms of this Agreement or any Note
held by such Lender or (y) any election made pursuant to Section 2.10(b).

          2.12 Change of Lending Office. Each Lender agrees that upon the occurrence of any event giving rise to the operation of
Section 2.10(a)(ii) or (iii), Section 2.10(c), Section 3.06 or
Section 5.04 with respect to such Lender, it will, if requested by the Borrower, use
reasonable efforts (subject to overall policy considerations of such Lender) to designate another
lending office for any Loans or Letters of Credit affected by such event, provided that
such designation is made on such terms that such Lender and its lending office suffer no economic,
legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of such Section.
Nothing in this Section 2.12 shall affect or postpone any of the obligations of the
Borrower or the right of any Lender provided in Sections 2.10, 3.06 and
5.04.

          2.13 Replacement of Lenders. (x) If any Lender becomes a Defaulting Lender, (y) upon the occurrence of an event giving rise
to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(c),
Section 3.06 or Section 5.04 with respect to any Lender which results in such
Lender charging to the Borrower increased costs under any such Section or (z) in the case of a
refusal by a Lender to consent to certain proposed changes, waivers, discharges or terminations
with respect to this Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower shall have the right, if no Default or
Event of Default then exists (or, in the case of preceding clause (z), will exist immediately after
giving effect to such replacement), to replace such Lender (the “Replaced Lender”) with one
or more other Eligible Transferees, none of whom shall constitute a Defaulting Lender at the time
of such replacement (collectively, the “Replacement Lender”) and each of whom shall be
required to be reasonably acceptable to the Administrative Agent and, in the case of a replacement
of Revolving Loan Commitments, each Issuing Lender and the Swingline Lender or, in the case of a
replacement as provided in Section 13.12(b) where the consent of the respective Lender is
required with respect to less than all Tranches of its Loans or Commitments, to replace the
Commitments and/or outstanding Loans of such Lender in respect of each Tranche where the consent of
such Lender would otherwise be individually required, with identical Commitments and/or Loans of
the respective Tranche provided by the Replacement Lender, provided that:

     (a) at the time of any replacement pursuant to this Section 2.13, the
Replacement Lender shall be obligated to enter into one or more Assignment and Assumption
Agreements pursuant to Section 13.04(b) (and with all fees payable pursuant to said
Section 13.04(b) to be paid by the Replacement Lender) pursuant to which the
Replacement Lender shall acquire all of the Commitments and outstanding Loans (or, in the
case of the replacement of only (a) the Revolving Loan Commitment, the Revolving Loan
Commitment and outstanding Revolving Loans and participations in Letter of Credit
Outstandings and/or (b) the outstanding Term Loans of a Tranche or Tranches, the outstanding
Term Loans of such Tranche or Tranches with respect to which such Lender

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is being replaced)
of, and in each case (except for the replacement of only the outstanding Term Loans of the
respective Lender) all participations in Letters of Credit by, the Replaced Lender and, in
connection therewith, shall pay to (x) the Replaced Lender in respect thereof an amount
equal to the sum of (I) an amount equal to the principal of, and all accrued and unpaid
interest on, all outstanding Loans of the respective Replaced Lender under each Tranche with
respect to which such Replaced Lender is being replaced, (II) an amount equal to all Unpaid
Drawings (unless there are no Unpaid Drawings with respect to the Tranche being replaced)
that have been funded by (and not reimbursed to) such Replaced Lender, together with all
then accrued and unpaid interest with respect thereto at such time and (III) an amount equal
to all accrued, but theretofore unpaid, Fees owing to the Replaced Lender (but only with
respect to the relevant Tranche, in the case of the replacement of less than all Tranches of
Loans then held by the respective Replaced Lender) pursuant to Section 4.01 (other
than pursuant to Section 4.01(h)), (y) except in the case of the replacement of only
the outstanding Term Loans of
a Replaced Lender, each Issuing Lender an amount equal to such Replaced Lender’s RL
Percentage of any Unpaid Drawing relating to Letters of Credit issued by such Issuing Lender
(which at such time remains an Unpaid Drawing) to the extent such amount was not theretofore
funded by such Replaced Lender to such Issuing Lender, together with all then accrued and
unpaid interest with respect thereto at such time, and (z) in the case of any replacement of
Revolving Loan Commitments, the Swingline Lender an amount equal to such Replaced Lender’s
RL Percentage of any Mandatory Borrowing to the extent such amount was not theretofore
funded by such Replaced Lender to the Swingline Lender, together with all then accrued and
unpaid interest thereon at such time; and

     (b) all obligations of the Borrower due and owing to the Replaced Lender at such time
(other than those (x) specifically described in clause (a) above in respect of which the
assignment purchase price has been, or is concurrently being, paid, but including all
amounts, if any, owing under Sections 2.11 and 4.01(h) or (y) relating to
any Tranche of Loans and/or Commitments of the respective Replaced Lender which will remain
outstanding after giving effect to the respective replacement) shall be paid in full to such
Replaced Lender concurrently with such replacement.

          Upon the execution of the respective Assignment and Assumption Agreement, the payment of
amounts referred to in clauses (a) and (b) above and, if so requested by the Replacement Lender,
delivery to the Replacement Lender of the appropriate Note or Notes executed by the Borrower, (x)
the Replacement Lender shall become a Lender hereunder and, unless the respective Replaced Lender
continues to have outstanding Term Loans and/or a Revolving Loan Commitment hereunder, the Replaced
Lender shall cease to constitute a Lender hereunder and, except with respect to indemnification
provisions under this Agreement (including, without limitation, Sections 2.10,
2.11, 3.06, 5.04, 12.06 and 13.01), which shall survive as
to such Replaced Lender and (y) except in the case of the replacement of only outstanding Term
Loans pursuant to this Section 2.13, the RL Percentages of the Lenders shall be
automatically adjusted at such time to give effect to such replacement.

          2.14 Incremental Term Loan Commitments. (a) The Borrower shall have the right
to request, at any time after the Initial Borrowing Date,
that one or more Lenders (and/or

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one or more other Persons which are Eligible Transferees and which
will become Lenders) provide Incremental Term Loan Commitments to the Borrower and, subject to the
terms and conditions contained in this Agreement and in the respective Incremental Term Loan
Commitment Agreement, make Incremental Term Loans pursuant thereto; it being understood and agreed,
however, that (i) no Lender shall be obligated to provide an Incremental Term Loan
Commitment as a result of any such request by the Borrower, and until such time, if any, as such
Lender has agreed in its sole discretion to provide an Incremental Term Loan Commitment and
executed and delivered to the Administrative Agent and the Borrower an Incremental Term Loan
Commitment Agreement as provided in clause (b) of this Section 2.14, such Lender shall not
be obligated to fund any Incremental Term Loans, (ii) any Lender (including any Eligible Transferee
who will become a Lender) may so provide an Incremental Term Loan Commitment without the consent of
any other Lender, (iii) each Tranche of Incremental Term Loan Commitments, and all Incremental Term
Loans to be made pursuant thereto, shall be denominated in Dollars, (iv) the amount of each Tranche
of Incremental Term
Loan Commitments (whether constituting a new Tranche of Incremental Term Loans or being added to
(and thereafter constituting a part of) a then outstanding Tranche of Term Loans) shall be in a
minimum aggregate amount for all Lenders which provide an Incremental Term Loan Commitment under
such Tranche of Incremental Term Loans (including Eligible Transferees who will become Lenders) of
at least $25,000,000 (or such lower amount as may be acceptable to the Administrative Agent) and in
integral multiples of $5,000,000 in excess thereof (or such other integral multiple as may be
acceptable to the Administrative Agent), (v) the aggregate amount of all Incremental Term Loan
Commitments provided pursuant to this Section 2.14 and the aggregate principal amount of
all Incremental Term Loans to be made pursuant thereto shall not exceed the Maximum Incremental
Commitment Amount at such time, (vi) the up-front fees and, if applicable, any unutilized
commitment fees and/or other fees, payable to each Incremental Term Loan Lender in respect of each
Incremental Term Loan Commitment shall be separately agreed to by the Borrower and each such
Incremental Term Loan Lender, (vii) each Tranche of Incremental Term Loans shall (A) have an
Incremental Term Loan Maturity Date of no earlier than the Initial Term Loan Maturity Date, (B)
have a Weighted Average Life to Maturity of no less than the Weighted Average Life to Maturity as
then in effect for the Initial Term Loans and (C) be subject to the Applicable Margins as are set
forth in the Incremental Term Loan Commitment Agreement governing such Tranche of Incremental Term
Loans; provided that, if the Applicable Margins for such Tranche of Incremental Term Loans
(which, for such purposes only, shall be deemed to include all up-front or similar fees or original
issue discount (amortized over the shorter of (x) the life of such Tranche of Incremental Term
Loans and (y) four years) payable to all Incremental Term Loan Lenders providing such Tranche of
Incremental Term Loans and any Eurodollar Rate floor or Base Rate floor applicable to such
Incremental Term Loans, but exclusive of any arrangement, structuring or other fees payable in
connection therewith that are not shared with all Incremental Term Loan Lenders providing such
Tranche of Incremental Term Loans) determined as of the initial funding date for such Tranche of
Incremental Term Loans exceeds the Applicable Margins (which, for such purposes only, shall be
deemed to include all up-front or similar fees or original issue discount originally payable to all
Lenders providing the Initial Term Loans or any Incremental Term Loans theretofore incurred and any
Eurodollar Rate floor or Base Rate floor applicable to the Initial Term Loans or such Incremental
 Term Loans) relating to the Initial Term Loans or such Incremental Term Loans immediately prior to
the effectiveness of the respective Incremental Term Loan Commitment

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Agreement by more than 0.50%,
then the Applicable Margins relating to the Initial Term Loans and any Incremental Term Loans
thereto incurred shall be adjusted to be equal to the Applicable Margins (determined as provided
above) relating to such Tranche of Incremental Term Loans minus 0.50%, (viii) the proceeds of all
Incremental Term Loans shall be used only for the purposes permitted by Section 8.08(c),
(ix) each Incremental Term Loan Commitment Agreement shall specifically designate the Tranche or
Tranches of the Incremental Term Loan Commitments being provided thereunder (which Tranche shall be
a new Tranche (i.e., not the same as the Initial Term Loans or any other then existing
Tranche of Term Loans) unless the requirements of Section 2.14(c) are satisfied), (x) all
Incremental Term Loans (and all interest, fees and other amounts payable thereon) shall be
Obligations under this Agreement and the other applicable Credit Documents and shall be secured by
the Security Documents, and guaranteed under the Guaranties, on a pari passu basis
with all other Obligations secured by the Security Documents and guaranteed under the Guaranties,
and (xi) each Lender (including any Eligible Transferee who will become a Lender) agreeing to
provide an Incremental Term Loan
Commitment pursuant to an Incremental Term Loan Commitment Agreement shall, subject to the
satisfaction of the relevant conditions set forth in this Agreement, make Incremental Term Loans
under the Tranche specified in such Incremental Term Loan Commitment Agreement as provided in
Section 2.01(c) and such Incremental Term Loans shall thereafter be deemed to be
Incremental Term Loans under such Tranche for all purposes of this Agreement and the other
applicable Credit Documents.

          (b) At the time of the provision of Incremental Term Loan Commitments pursuant to this
Section 2.14, the Borrower, the Administrative Agent and each such Lender or other Eligible
Transferee which agrees to provide an Incremental Term Loan Commitment (each, an “Incremental
Term Loan Lender”) shall execute and deliver to the Administrative Agent an Incremental Term
Loan Commitment Agreement, with the effectiveness of the Incremental Term Loan Commitment provided
therein (and the making of the respective Incremental Term Loans thereunder) to occur on the date
set forth in such Incremental Term Loan Commitment Agreement, which date in any event shall be no
earlier than the date on which (w) all fees required to be paid in connection therewith at the time
of such effectiveness shall have been paid (including, without limitation, any agreed upon up-front
or arrangement fees owing to the Administrative Agent (or any affiliate thereof)), (x) all
Incremental Commitment Requirements are satisfied, (y) all other conditions set forth in this
Section 2.14 shall have been satisfied, and (z) all other conditions precedent that may be
set forth in such Incremental Term Loan Commitment Agreement shall have been satisfied. The
Administrative Agent shall promptly notify each Lender as to the effectiveness of each Incremental
Term Loan Commitment Agreement, and at such time, (i) Schedule I shall be deemed modified
to reflect the Incremental Term Loan Commitments of the affected Lenders and (ii) to the extent
requested by any Incremental Term Loan Lender, Incremental Term Notes will be issued, at the
Borrower’s expense, to such Incremental Term Loan Lender in conformity with the requirements of
Section 2.05.

          (c) Notwithstanding anything to the contrary contained above in this Section 2.14, the
Incremental Term Loan Commitments provided by an Incremental Term Loan Lender or Incremental Term
Loan Lenders, as the case may be, pursuant to each Incremental Term Loan Commitment Agreement shall
constitute a new Tranche, which shall be separate and distinct from the existing Tranches pursuant
to this Agreement (with a designation which may be made

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in letters (i.e., A, B, C, etc.), numbers
(1, 2, 3, etc.) or a combination thereof (i.e., A-1, A-2, A-3, B-1, B-2, B-3, C-1, C-2, C-3, etc.),
provided that, with the consent of the Administrative Agent, the parties to a given
Incremental Term Loan Commitment Agreement may specify therein that the respective Incremental Term
Loans made pursuant thereto shall constitute part of, and be added to, a then outstanding Tranche
of Term Loans so long as the following requirements are satisfied:

     (i) the Incremental Term Loans to be made pursuant to such Incremental Term Loan
Commitment Agreement shall have the same Maturity Date and shall have the same Applicable
Margins as the Tranche of Term Loans to which the new Incremental Term Loans are being
added;

     (ii) the new Incremental Term Loans to be made pursuant to such Incremental Term Loan
Commitment Agreement shall have the same Scheduled Term Loan
Repayment Dates as then remain with respect to the Tranche of Term Loans to which such
new Incremental Term Loans are being added (with the amount of each Scheduled Term Loan
Repayment applicable to such new Incremental Term Loans to be the same (on a proportionate
basis) as is theretofore applicable to the Tranche of Term Loans to which such new
Incremental Term Loans are being added, thereby increasing the amount of each then remaining
Scheduled Term Loan Repayments of the respective Tranche of Term Loans proportionately); and

     (iii) on the date of the making of such new Incremental Term Loans, and notwithstanding
anything to the contrary set forth in Section 2.09, such new Incremental Term Loans
shall be added to (and form part of) each Borrowing of outstanding Term Loans of the
respective Tranche on a pro rata basis (based on the relative sizes of the various
outstanding Borrowings), so that each Lender will participate proportionately in each then
outstanding Borrowing of Term Loans of the respective Tranche.

          To the extent the provisions of preceding clause (iii) require that Lenders making new
Incremental Term Loans add such Incremental Term Loans to the then outstanding Borrowings of
Eurodollar Loans of the respective Tranche of Term Loans, it is acknowledged that the effect
thereof may result in such new Incremental Term Loans having short Interest Periods (i.e.,
an Interest Period that began during an Interest Period then applicable to outstanding Eurodollar
Loans of the respective Tranche and which will end on the last day of such Interest Period). In
connection therewith, the Borrower hereby agrees to compensate the Lenders making the new
Incremental Term Loans of the respective Tranche for funding Eurodollar Loans during an existing
Interest Period on such basis as may be agreed by the Borrower and the respective Lender or Lenders
as may be provided in the respective Incremental Term Loan Commitment Agreement.

          2.15 Incremental RL Commitments. (a) The Borrower shall have the right to request, at any time after the Initial Borrowing Date,
that one or more Lenders (and/or one or more other Persons which are Eligible Transferees and which
will become Lenders) provide Incremental RL Commitments and, subject to the terms and conditions
contained in this Agreement and in the respective Incremental RL Commitment Agreement, make
Revolving Loans pursuant thereto; it being understood and agreed, however, that (i) no Lender shall
be

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obligated to provide an Incremental RL Commitment as a result of any such request by the
Borrower, and until such time, if any, as such Lender has agreed in its sole discretion to provide
an Incremental RL Commitment and executed and delivered to the Administrative Agent an Incremental
RL Commitment Agreement as provided in clause (b) of this Section 2.15, such Lender shall
not be obligated to fund any Revolving Loans in excess of its Revolving Loan Commitment as in
effect prior to giving effect to such Incremental RL Commitment incurred pursuant to this
Section 2.15, (ii) any Lender (including any Eligible Transferee who will become a Lender)
may so provide an Incremental RL Commitment without the consent of any other Lender, (iii) each
incurrence of Incremental RL Commitments on a given Incremental RL Commitment Date pursuant to this
Section 2.15 shall be in a minimum aggregate amount for all Lenders which provide an
Incremental RL Commitment (including any Eligible Transferee who will become Lenders) of at least
$25,000,000 (or such lower amount as may be acceptable to the Administrative Agent) and in integral
multiples of $5,000,000 in excess
thereof (or such other integral multiple as may be acceptable to the Administrative Agent, (iv) the
aggregate amount of Incremental RL Commitments to be incurred pursuant to this Section 2.15
at any time shall not exceed the Maximum Incremental Commitment Amount at such time, (v) the
up-front fees and, if applicable, any unutilized commitment fees and/or other fees, payable to each
Incremental RL Lender in respect of each Incremental RL Commitment shall be separately agreed to by
the Borrower and each such Incremental RL Lender, (vi) if the Applicable Margins and/or Adjustable
Applicable Margins with respect to Revolving Loans to be incurred pursuant to an Incremental RL
Commitment shall be higher in any respect than those applicable to any other Revolving Loans, the
Applicable Margins and/or Adjustable Applicable Margins for such other Revolving Loans and
extension of credit hereunder shall be automatically increased as and to the extent needed to
eliminate any deficiencies in accordance with the definition of “Applicable Margin” contained
herein, (vii) the proceeds of all Revolving Loans to be made pursuant to any Incremental RL
Commitments shall be used only for the purposes permitted by Section 8.08(b), and (viii)
all Loans subsequently incurred pursuant to such Incremental RL Commitment (and all interest, fees
and other amounts payable thereon) shall be Obligations under this Agreement and the other
applicable Credit Documents and shall be secured by the Security Documents, and guaranteed under
the Guaranties, on a pari passu basis with all other Obligations secured by the Security Documents
and guaranteed under the Guaranties.

          (b) At the time of the provision of Incremental RL Commitments pursuant to this Section
2.15, the Borrower, the Administrative Agent and each such Lender or other Eligible Transferee
which agrees to provide an Incremental RL Commitment (each, an “Incremental RL Lender”)
shall execute and deliver to the Administrative Agent an Incremental RL Commitment Agreement, with
the effectiveness of such Incremental RL Lender’s Incremental RL Commitment to occur on the date
set forth in such Incremental RL Commitment Agreement, which date in any event shall be no earlier
than the date on which (w) all fees required to be paid in connection therewith at the time of such
effectiveness shall have been paid (including, without limitation, any agreed upon up-front or
arrangement fees owing to the Administrative Agent (or any affiliate thereof)), (x) all Incremental
Commitment Requirements are satisfied, (y) all other conditions set forth in this Section
2.15 shall have been satisfied, and (z) all other conditions precedent that may be set forth in
such Incremental RL Commitment Agreement shall have been satisfied. The Administrative Agent shall
promptly notify each Lender as to the effectiveness of each Incremental RL Commitment Agreement,
and at such time (A) the Total Revolving Loan

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Commitment under, and for all purposes of, this
Agreement shall be increased by the aggregate amount of such Incremental RL Commitments, (B)
Schedule I shall be deemed modified to reflect the revised Revolving Loan Commitments of
the affected Lenders and (C) to the extent requested by any Incremental RL Lender, Revolving Notes
will be issued, at the Borrower’s expense, to such Incremental RL Lender in conformity with the
requirements of Section 2.05.

          (c) At the time of any provision of Incremental RL Commitments pursuant to this Section
2.15, the Borrower shall, in coordination with the Administrative Agent, repay outstanding
Revolving Loans of certain of the RL Lenders, and incur additional Revolving Loans from certain
other RL Lenders (including the Incremental RL Lenders), in each case to the extent necessary so
that all of the RL Lenders participate in each outstanding Borrowing of Revolving Loans pro
rata on the basis of their respective Revolving Loan Commitments (after giving effect to
any increase in the Total Revolving Loan Commitment pursuant to this Section 2.15) and with
the Borrower being obligated to pay to the respective RL Lenders any costs of the type
referred to in Section 2.11 in connection with any such repayment and/or Borrowing.

          2.16 Extension of Term Loans and Revolving Loan Commitments. (a) Notwithstanding anything to the contrary in this Agreement, subject to the terms of this
Section 2.16, pursuant to one or more offers (each, an “Extension Offer”) made from
time to time by the Borrower to all Lenders of Term Loans with a like Maturity Date or Revolving
Loan Commitments with a like Maturity Date, in each case on a pro rata basis (based on the
aggregate outstanding principal amount of the respective Term Loans with a like Maturity Date or
Revolving Loan Commitments with a like Maturity Date, as the case may be) and on the same terms to
each such Lender, the Borrower is hereby permitted to consummate from time to time following the
Initial Borrowing Date transactions with individual Lenders that accept the terms contained in such
Extension Offers to extend the Maturity Date of each such Lender’s Term Loans and/or Revolving Loan
Commitments and otherwise modify the terms of such Term Loans and/or Revolving Loan Commitments
pursuant to the terms of the relevant Extension Offer (including, without limitation, by increasing
the interest rate or fees payable in respect of such Term Loans and/or Revolving Loan Commitments
(and related outstandings) and/or modifying the amortization schedule in respect of such Lender’s
Term Loans)) (each, an “Extension”, any Extended Term Loans shall constitute a separate
Tranche of Term Loans from the Tranche of Term Loans from which they were converted, and any
Extended Revolving Commitments shall constitute a separate Tranche of Revolving Loan Commitments
from the Tranche of Revolving Loan Commitments from which they were converted), so long as the
following terms are satisfied:

     (i) no Default or Event of Default shall have occurred and be continuing at the time
the offering document in respect of an Extension Offer is delivered to the Lenders;

     (ii) except as to interest rates, fees and final maturity, the Revolving Loan
Commitment of any RL Lender (an “Extending RL Lender”) extended pursuant to an
Extension (an “Extended Revolving Loan Commitment”), and the related outstandings,
shall be a Revolving Loan Commitment (or related outstandings, as the case may be) with the
same terms as the original Revolving Loan Commitments (and related outstandings) (except for
covenants or other provisions contained herein applicable only

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to periods after the then
latest Maturity Date then in effect); provided that (x) subject to the provisions of
Sections 2.01(f) and 3.07 to the extent dealing with Swingline Loans and
Letters of Credit which mature or expire after the Initial Revolving Loan Maturity Date, all
Swingline Loans and Letters of Credit shall be participated in on a pro rata basis by all
Lenders with Revolving Loan Commitments in accordance with their RL Percentages (and, except
as provided in Sections 2.01(f) and 3.07, without giving effect to changes
thereto on the Initial Revolving Loan Maturity Date, with respect to Swingline Loans and
Letters of Credit theretofore incurred or issued) and all borrowings and commitment
reductions under Revolving Loan Commitments and repayments thereunder shall be made on a pro
rata basis (except for (A) payments of interest and fees at different rates on Extended
Revolving Loan Commitments (and related outstandings) and (B) repayments required upon the
Revolving Loan Maturity Date of the non-extending
Revolving Loan Commitments) and (y) at no time shall there be Revolving Loan
Commitments hereunder (including extended Revolving Loan Commitments and any original
Revolving Loan Commitments) which have more than two different Revolving Loan Maturity
Dates;

     (iii) except as to interest rates, fees, amortization, final maturity date, premium,
required prepayment dates and participation in prepayments (which shall, subject to
immediately succeeding clauses (iv), (v) and (vi), be determined by the Borrower and set
forth in the relevant Extension Offer), the Term Loans of any Lender that agrees to an
extension with respect to such Term Loans (an “Extending Term Lender”) extended
pursuant to any Extension (“Extended Term Loans”) shall have the same terms as the
Tranche of Term Loans subject to such Extension Offer (except for covenants or other
provisions contained herein applicable only to periods after the then latest Maturity Date
then in effect);

     (iv) the final maturity date of any Extended Term Loans shall be no earlier than the
latest Maturity Date then in effect hereunder and the amortization schedule applicable to
Term Loans pursuant to Section 5.02(b) for periods prior to the Initial Term Loan
Maturity Date may not be increased;

     (v) the Weighted Average Life to Maturity of any Extended Term Loans shall be no
shorter than the remaining Weighted Average Life to Maturity of the Term Loans extended
thereby;

     (vi) any Extended Term Loans may participate on a pro rata basis or a less than pro
rata basis (but not greater than a pro rata basis) in any voluntary or mandatory repayments
or prepayments hereunder, in each case as specified in the respective Extension Offer;

     (vii) if the aggregate principal amount of Term Loans (calculated on the face amount
thereof) or Revolving Loan Commitments, as the case may be, in respect of which Lenders with
Term Loans or Revolving Loan Commitments, as the case may be, shall have accepted the
relevant Extension Offer shall exceed the maximum aggregate principal amount of Term Loans
or Revolving Loan Commitments, as the case may be, offered to be extended by the Borrower
pursuant to such Extension Offer, then the Term

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Loans or Revolving Loan Commitments, as the
case may be, of such Lenders with Term Loans or Revolving Loan Commitments, as the case may
be, shall be extended ratably up to such maximum amount based on the respective principal
amounts (but not to exceed actual holdings of record) with respect to which such Lenders
with Term Loans or Revolving Loan Commitments, as the case may be, have accepted such
Extension Offer;

     (viii) all documentation in respect of such Extension shall be consistent with the
foregoing, and all written communications by the Borrower generally directed to the Lenders
in connection therewith shall be in form and substance consistent with the foregoing and
otherwise reasonably satisfactory to the Administrative Agent;

     (ix) the applicable Minimum Extension Condition shall be satisfied;

     (x) the Minimum Tranche Amount shall be satisfied unless waived by the Administrative
Agent;

     (xi) no more than one Extension may be effected in respect of Revolving Loan
Commitments and no more than one Extension may be effected in respect of Term Loans; and

     (xii) the Extension shall not become effective unless, on the proposed effective date
of the Extension, (x) the Borrower shall have delivered to the Administrative Agent a
certificate of an Authorized Officer of each Credit Party dated the applicable date of the
Extension and executed by an Authorized Officer of such Credit Party certifying and
attaching the resolutions adopted by such Credit Party approving or consenting to such
Extension and (y) the conditions set forth in Section 7 shall be satisfied (with all
references in such Section to any Credit Event being deemed to be references to the
Extension on the applicable date of the Extension) and the Administrative Agent shall have
received a certificate to that effect dated the applicable date of the Extension and
executed by an Authorized Officer of the Borrower. In connection with each Extension Offer,
each relevant Lender, acting in its sole and individual discretion, shall determine whether
it wishes to participate in the respective Extension contemplated by such Extension Offer.
Any relevant Lender that does not respond to an Extension Offer within the time period
contemplated by the applicable Extension Offer shall be deemed to have rejected such
Extension Offer. The election of any relevant Lender to agree to an Extension shall not
obligate any other Lender to so agree.

          (b) With respect to all Extensions consummated by the Borrower pursuant to this Section
2.16, (i) such Extensions shall not constitute voluntary or mandatory payments or prepayments
for purposes of Section 5.01, 5.02, 13.02 or 13.06 and (ii) no
Tranche of Extended Term Loans shall be in an amount of less than $25,000,000 (the “Minimum
Tranche Amount”), unless such Minimum Tranche Amount is waived by the Administrative Agent.
The Administrative Agent and the Lenders hereby consent to the Extensions and the other
transactions contemplated by this Section 2.16 (including, for the avoidance of doubt,
payment of any interest, fees or premium in respect of any Extended Term Loans and/or Extended
Revolving Commitments on the such terms as may be set forth in the relevant Extension Offer) and
hereby waive the requirements of any provision of this Agreement (but otherwise subject to

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Section 13.12(a)) or any other Credit Document that may otherwise prohibit any such
Extension or any other transaction contemplated by this Section 2.16, provided that
such consent shall not be deemed to be an acceptance of an Extension Offer.

          (c) The Lenders hereby irrevocably authorize the Administrative Agent to enter into amendments
to this Agreement and the other Credit Documents with the Borrower (and the other applicable Credit
Parties) as (and to the extent) may be necessary in order establish new Tranches in respect of
Revolving Loan Commitments or Term Loans so extended and such technical amendments as may be
necessary in connection with the establishment of such new Tranches, in each case on terms
consistent with this Section 2.16. Without limiting the foregoing, in connection with any
Extensions the respective Credit Parties shall (at their expense) amend (and the Collateral Agent
is hereby directed to amend) any Mortgage that has a Maturity Date prior to the then latest
Maturity Date so that such maturity date is extended to the then latest
Maturity Date (or such later date as may be advised by local counsel to the Administrative
Agent).

          (d) In connection with any Extension, the Borrower shall provide the Administrative Agent at
least 15 Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior
written notice thereof, and shall agree to such procedures, if any, as may be established by, or
acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes
of this Section 2.16.

          2.17 Reverse Dutch Auction Repurchases. (a) Notwithstanding anything to the contrary contained in this Agreement or any other Credit
Document, the Borrower may, at any time and from time to time after the occurrence of the Initial
Borrowing Date, conduct reverse Dutch auctions in order to purchase Term Loans (each, an
“Auction” and each such Auction to be managed exclusively by an investment bank of
recognized standing selected by the Borrower following consultation with the Administrative Agent,
such investment bank in such capacity, the “Auction Manager”), so long as the following
conditions are satisfied:

     (i) each Auction shall be conducted in accordance with the procedures, terms and
conditions set forth in this Section 2.17 and Schedule XII;

     (ii) no Default or Event of Default shall have occurred and be continuing on the date
of the delivery of each Auction Notice and at the time of purchase of any Term Loans in
connection with any Auction;

     (iii) the minimum principal amount (calculated on the face amount thereof) of all Term
Loans that the Borrower offers to purchase in any such Auction shall be no less than
$25,000,000 (unless another amount is agreed to by the Administrative Agent);

     (iv) the Minimum Liquidity Condition has been satisfied at such time and immediately
after giving effect to the purchase of Term Loans pursuant to such Auction;

     (v) the Borrower shall be in compliance, on a Pro Forma Basis, with the financial
covenants in Section 10.07 for the Calculation Period most recently ended on or
prior to the date of the respective purchase of Term Loans pursuant to such Auction;

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     (vi) the aggregate principal amount (calculated on the face amount thereof) of all Term
Loans so purchased by the Borrower shall automatically be cancelled and retired by the
Borrower on the settlement date of the relevant purchase (and may not be resold);

     (vii) no more than one Auction may be ongoing at any one time;

     (viii) no more than three Auctions may be effected in any twelve month period unless
otherwise agreed by the Administrative Agent;

     (ix) each Auction shall be open and offered to all Lenders of the relevant Tranche of
Term Loans on a pro rata basis;

     (x) the Borrower represents and warrants that, as of the date of the delivery of each
Auction Notice and at the time of purchase of any Term Loans in connection with any Auction,
no Credit Party shall have any MNPI that both (A) has not been previously disclosed in
writing to the Administrative Agent and the Lenders (other than because such Lender does not
wish to receive such MNPI) prior to such time and (B) could reasonably be expected to have a
material effect upon, or otherwise be material to, a Lender’s decision to participate in the
Auction; and

     (xi) at the time of each purchase of Term Loans through an Auction, the Borrower shall
have delivered to the Auction Manager and the Administrative Agent an officer’s certificate
of an Authorized Officer of the Borrower certifying as to compliance with preceding clauses
(ii), (iv), (v) and (x) (and containing the calculations (in reasonable detail) required by
preceding clauses (iv) and (v)).

          (b) The Borrower must terminate an Auction if it fails to satisfy one or more of the
conditions set forth above which are required to be met at the time which otherwise would have been
the time of purchase of Term Loans pursuant to the respective Auction. If the Borrower commences
any Auction (and all relevant requirements set forth above which are required to be satisfied at
the time of the commencement of the respective Auction have in fact been satisfied), and if at such
time of commencement the Borrower reasonably believes that all required conditions set forth above
which are required to be satisfied at the time of the purchase of Term Loans pursuant to such
Auction shall be satisfied, then the Borrower shall have no liability to any Lender for any
termination of the respective Auction as a result of its failure to satisfy one or more of the
conditions set forth above which are required to be met at the time which otherwise would have been
the time of purchase of Term Loans pursuant to the respective Auction, and any such failure shall
not result in any Default or Event of Default hereunder. With respect to all purchases of Term
Loans made by the Borrower pursuant to this Section 2.17, (x) the Borrower shall pay on the
settlement date of each such purchase all accrued and unpaid interest (except to the extent
otherwise set forth in the relevant offering documents), if any, on the purchased Term Loans up to
the settlement date of such purchase and (y) such purchases (and the payments made by the Borrower
and the cancellation of the purchased Term Loans, in each case in connection therewith) shall not
constitute voluntary or mandatory payments or prepayments for purposes of Sections 5.01,
5.02 or 13.06 (although the par principal amount of Term Loans of the respective
Tranche so purchased pursuant to this Section 2.17 shall be applied

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to reduce the remaining
Scheduled Repayments of such Tranche of Term Loans of the applicable Lenders being repaid in
inverse order of maturity).

          (c) The Administrative Agent and the Lenders hereby consent to the Auctions and the other
transactions contemplated by this Section 2.17 (provided that no Lender shall have an
obligation to participate in any such Auctions) and hereby waive the requirements of any provision
of this Agreement (including, without limitation, Sections 5.01, 5.02 and
13.06 (it being understood and acknowledged that purchases of the Term Loans by the
Borrower contemplated by this Section 2.17 shall not constitute Investments by the
Borrower)) or any other Credit Document that may otherwise prohibit any Auction or any other
transaction contemplated by this Section 2.17. The Auction Manager acting in its capacity
as such hereunder shall be entitled to the benefits of the provisions of Section 12 and
Section 13.01 mutatis mutandis as if each reference therein to the “Administrative Agent”
were a reference to
the Auction Manager, and the Administrative Agent shall cooperate with the Auction Manager as
reasonably requested by the Auction Manager in order to enable it to perform its responsibilities
and duties in connection with each Auction.

          2.18 Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any RL Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as such RL Lender is a
Defaulting Lender:

     (a) if any Swingline Loan Exposure or Letter of Credit Exposure exists at the time an
RL Lender becomes a Defaulting Lender then:

     (i) all or any part of such Swingline Loan Exposure and Letter of Credit
Exposure shall be reallocated among the RL Lenders that are Non-Defaulting RL
Lenders in accordance with their respective RL Percentages but only to the extent
(x) the sum of all RL Lenders’ that are Non-Defaulting RL Lenders Individual RL
Exposures plus such Defaulting Lender’s Swingline Loan Exposure and Letter of Credit
Exposure does not exceed the aggregate amount of all Non-Defaulting RL Lenders’
Revolving Loan Commitments and (y) immediately following the reallocation to an RL
Lender that is a Non-Defaulting Lender, the Individual RL Exposure of such RL Lender
does not exceed its Revolving Loan Commitment at such time;

     (ii) if the reallocation described in clause (i) above cannot, or can only
partially, be effected, the Borrower shall within three (3) Business Days following
notice by the Administrative Agent (x) first, prepay such Swingline Loan Exposure
and (y) second, cash collateralize in a manner reasonably satisfactory to the
applicable Issuing Lender such Defaulting Lender’s Letter of Credit Exposure (after
giving effect to any partial reallocation pursuant to clause (i) above) in aggregate
amount equal to 100% of such Defaulting Lender’s Letter of Credit Exposure for so
long as such Letter of Credit Exposure is outstanding (the “Letter of Credit
Back-Stop Arrangements”);

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     (iii) the Borrower shall not be required to pay any fees to such Defaulting
Lender pursuant to Section 4.01(b) with respect to such Defaulting Lender’s
Letter of Credit Exposure;

     (iv) if the Letter of Credit Exposure of the Non-Defaulting Lenders is
reallocated pursuant to this Section 2.18(a), then the fees payable to the
RL Lenders pursuant to Section 4.01(b) shall be adjusted in accordance with
such Non-Defaulting Lenders’ RL Percentages; and

     (v) if any Defaulting Lender’s Letter of Credit Exposure is neither cash
collateralized nor reallocated pursuant to this Section 2.18(a), then,
without prejudice to any rights or remedies of any Issuing Lender or any RL Lender
hereunder, all letter of credit fees payable under Section 4.01(b) with
respect to such Defaulting Lender’s Letter of Credit Exposure shall be payable to
each
Issuing Lender until such Letter of Credit Exposure is cash collateralized
and/or reallocated; and

     (b) notwithstanding anything to the contrary contained in Section 2.01(d) or
Section 3, so long as any RL Lender is a Defaulting Lender (i) the Swingline Lender
shall not fund any Swingline Loan and no Issuing Lender shall issue, amend or increase any
Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by
the Revolving Loan Commitments of the Non-Defaulting Lenders and/or cash collateral has been
provided by the Borrower in accordance with Section 2.18(a), and (ii) participating
interests in any such newly issued or increased Letter of Credit or newly made Swingline
Loan shall be allocated among RL Lenders that are Non-Defaulting Lenders in a manner
consistent with Section 2.18(a)(i) (and Defaulting Lenders shall not participate
therein).

          In the event that the Administrative Agent, the Borrower, each Issuing Lender and the
Swingline Lender each agrees that a Defaulting Lender has adequately remedied all matters that
caused such RL Lender to be a Defaulting Lender, then (i) the Swingline Loan Exposure and Letter of
Credit Exposure of the RL Lenders shall be readjusted to reflect the inclusion of such RL Lender’s
Revolving Loan Commitments and on such date such RL Lender shall purchase at par such of the
Revolving Loans of the other RL Lenders (other than Swingline Loans) as the Administrative Agent
shall determine may be necessary in order for such RL Lender to hold such Revolving Loans in
accordance with its RL Percentage and (ii) so long as no Default or Event of Default then exists,
all funds held as cash collateral pursuant to the Letter of Credit Back-Stop Arrangements shall
thereafter be promptly returned to the Borrower. If the Revolving Loan Commitments have been
terminated, all Obligations in respect of the Total Revolving Loan Commitment (or related
outstandings) have been paid in full and no Letters of Credit are outstanding, then, so long as no
Default or Event of Default then exists, all funds held as cash collateral pursuant to the Letter
of Credit Back-Stop Arrangements shall thereafter be promptly returned to the Borrower.

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          SECTION 3. Letters of Credit.

          3.01 Letters of Credit. (a) Subject to and upon the terms and conditions set forth herein, the Borrower may request
that an Issuing Lender issue, at any time and from time to time on and after the Initial Borrowing
Date and prior to the 15th day prior to the Revolving Loan Maturity Date, for the account of the
Borrower and for the benefit of (x) any holder (or any trustee, agent or other similar
representative for any such holders) of L/C Supportable Obligations, an irrevocable standby letter
of credit, in a form customarily used by such Issuing Lender or in such other form as is reasonably
acceptable to such Issuing Lender, and (y) sellers of goods to the Borrower or any of its
Subsidiaries, an irrevocable trade letter of credit, in a form customarily used by such Issuing
Lender or in such other form as has been approved by such Issuing Lender (each such letter of
credit, a “Letter of Credit” and, collectively, the “Letters of Credit”). All
Letters of Credit shall be denominated in Dollars and shall be issued on a sight basis only.

          (b) Subject to and upon the terms and conditions set forth herein, each Issuing Lender agrees
that it will, at any time and from time to time on and after the Initial Borrowing Date and prior
to the 15th day prior to the Revolving Loan Maturity Date, following its receipt of the respective
Letter of Credit Request, issue for account of the Borrower, one or more Letters of Credit as are
permitted to remain outstanding hereunder without giving rise to a Default or an Event of Default,
provided that no Issuing Lender shall be under any obligation to issue any Letter of Credit
of the types described above if at the time of such issuance:

     (i) any order, judgment or decree of any governmental authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuing Lender from issuing such Letter of
Credit or any requirement of law applicable to such Issuing Lender or any request or
directive (whether or not having the force of law) from any governmental authority with
jurisdiction over such Issuing Lender shall prohibit, or request that such Issuing Lender
refrain from, the issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon such Issuing Lender with respect to such Letter of Credit
any restriction or reserve or capital requirement (for which such Issuing Lender is not
otherwise compensated hereunder) not in effect with respect to such Issuing Lender on the
date hereof, or any unreimbursed loss, cost or expense which was not applicable or in effect
with respect to such Issuing Lender as of the date hereof and which such Issuing Lender
reasonably and in good faith deems material to it; or

     (ii) such Issuing Lender shall have received from the Borrower, any other Credit Party
or the Required Lenders prior to the issuance of such Letter of Credit notice of the type
described in the second sentence of Section 3.03(b).

          3.02 Maximum Letter of Credit Outstandings; Final Maturities. (a) Notwithstanding anything to the contrary contained in this Agreement, (i) no Letter of Credit
shall be issued the Stated Amount of which, when added to the Letter of Credit Outstandings
(exclusive of Unpaid Drawings which are repaid on the date of, and prior to the issuance of, the
respective Letter of Credit) at such time would exceed either (x) $25,000,000 or (y) when added to
the sum of (I) the aggregate principal amount of all Revolving Loans then outstanding and (II) the
aggregate principal amount of all Swingline Loans then outstanding, an amount equal to the

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Total
Revolving Loan Commitment at such time, and (ii) each Letter of Credit shall by its terms terminate
(x) in the case of standby Letters of Credit, on or before the earlier of (A) the date which occurs
12 months after the date of the issuance thereof (although any such standby Letter of Credit shall
be extendible for successive periods of up to 12 months, but, in each case, not beyond the fifth
Business Day prior to the Revolving Loan Maturity Date) and (B) five Business Days prior to the
Revolving Loan Maturity Date, and (y) in the case of trade Letters of Credit, on or before the
earlier of (A) the date which occurs 180 days after the date of issuance thereof and (B) 15 days
prior to the Revolving Loan Maturity Date.

          (b) Schedule III contains a description of all letters of credit issued by each
Issuing Lender pursuant to the Existing Credit Agreement and which are to remain outstanding on the
Initial Borrowing Date and sets forth, with respect to each such letter of credit, (i) the name of
the issuing lender, (ii) the letter of credit number, (iii) the stated amount, (iv) the name of the
beneficiary and (v) the expiry date. Each such letter of credit, including any extension thereof,
shall constitute a “Letter of Credit” under, as defined in, and for all purposes of, this
Agreement and shall be deemed issued on the Initial Borrowing Date.

          3.03 Letter of Credit Requests; Minimum Stated Amount. (a) Whenever the Borrower desires that a Letter of Credit be issued for its account, the
Borrower shall give the Administrative Agent and the respective Issuing Lender at least four
Business Days’ (or such shorter period as is acceptable to such Issuing Lender) written notice
thereof (including by way of facsimile). Each notice shall be in the form of Exhibit C,
appropriately completed (each a “Letter of Credit Request”).

          (b) The making of each Letter of Credit Request shall be deemed to be a representation and
warranty by the Borrower to the Lenders that such Letter of Credit may be issued in accordance
with, and will not violate the requirements of, Section 3.02. Unless the respective
Issuing Lender has received notice from the Borrower, any other Credit Party or the Required
Lenders before it issues a Letter of Credit that one or more of the conditions specified in
Section 6 or 7 are not then satisfied, or that the issuance of such Letter of
Credit would violate Section 3.02, then such Issuing Lender shall, subject to the terms and
conditions of this Agreement, issue the requested Letter of Credit for the account of the Borrower
in accordance with such Issuing Lender’s usual and customary practices. Upon the issuance of or
modification or amendment to any standby Letter of Credit, each Issuing Lender shall promptly
notify the Borrower and the Administrative Agent, in writing of such issuance, modification or
amendment and such notice shall be accompanied by a copy of such Letter of Credit or the respective
modification or amendment thereto, as the case may be. Promptly after receipt of such notice the
Administrative Agent shall notify the Participants, in writing, of such issuance, modification or
amendment. On the first Business Day of each week, each Issuing Lender shall furnish the
Administrative Agent with a written report (which may be transmitted via facsimile) of the daily
aggregate outstandings of trade Letters of Credit issued by such Issuing Lender for the immediately
preceding week.

          (c) The initial Stated Amount of each Letter of Credit shall not be less than $20,000 or such
lesser amount as is acceptable to the respective Issuing Lender.

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          3.04 Letter of Credit Participations. (a) Immediately upon the issuance by an Issuing Lender of any Letter of Credit, such Issuing
Lender shall be deemed to have sold and transferred to each RL Lender, and each such RL Lender (in
its capacity under this Section 3.04, a “Participant”) shall be deemed irrevocably
and unconditionally to have purchased and received from such Issuing Lender, without recourse or
warranty, an undivided interest and participation, to the extent of such Participant’s RL
Percentage, in such Letter of Credit, each drawing or payment made thereunder and the obligations
of the Borrower under this Agreement with respect thereto, and any security therefor or guaranty
pertaining thereto. Upon any change in the Revolving Loan Commitments or RL Percentages of the
Lenders pursuant to Section 2.13 or 13.04(b), it is hereby agreed that, with
respect to all outstanding Letters of Credit and Unpaid Drawings relating thereto, there shall be
an automatic adjustment to the participations pursuant to this Section 3.04 to reflect the
new RL Percentages of the assignor and assignee Lender, as the case may be.

          (b) In determining whether to pay under any Letter of Credit, no Issuing Lender shall have any
obligation relative to the other Lenders other than to confirm that any documents required to be
delivered under such Letter of Credit appear to have been delivered and that they appear to
substantially comply on their face with the requirements of such Letter of Credit. Any action
taken or omitted to be taken by an Issuing Lender under or in connection with any Letter of Credit
issued by it shall not create for such Issuing Lender any resulting liability to the Borrower, any
other Credit Party, any Lender or any other Person unless such action is taken or omitted to be
taken with gross negligence or willful misconduct on the part of such Issuing Lender (as determined
by a court of competent jurisdiction in a final and non-appealable decision).

          (c) In the event that any Issuing Lender makes any payment under any Letter of Credit issued
by it and the Borrower shall not have reimbursed such amount in full to such Issuing Lender
pursuant to Section 3.05(a), such Issuing Lender shall promptly notify the Administrative
Agent, which shall promptly notify each Participant of such failure, and each Participant shall
promptly and unconditionally pay to such Issuing Lender the amount of such Participant’s RL
Percentage of such unreimbursed payment in Dollars and in same day funds. If the Administrative
Agent so notifies, on or prior to 1:00 P.M. (New York time) on any Business Day, any Participant
required to fund a payment under a Letter of Credit, such Participant shall make available to the
respective Issuing Lender in Dollars such Participant’s RL Percentage of the amount of such payment
on such Business Day (or to the extent that the Administrative Agent so notifies such Participant
after 1:00 P.M. (New York time) on such Business Day, on the immediately succeeding Business Day,
in either case) in same day funds. If and to the extent such Participant shall not have so made
its RL Percentage of the amount of such payment available to the respective Issuing Lender, such
Participant agrees to pay to such Issuing Lender, forthwith on demand such amount, together with
interest thereon, for each day from such date until the date such amount is paid to such Issuing
Lender at the overnight Federal Funds Rate for the first three days and at the interest rate
applicable to Revolving Loans that are maintained as Base Rate Loans for each day thereafter. The
failure of any Participant to make available to an
Issuing Lender its RL Percentage of any payment under any Letter of Credit issued by such
Issuing Lender shall not relieve any other Participant of its obligation hereunder to make
available to such Issuing Lender its RL Percentage of any payment under any Letter of Credit on the
date required, as specified above, but no Participant shall be responsible for the failure of any

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other Participant to make available to such Issuing Lender such other Participant’s RL Percentage
of any such payment.

          (d) Whenever an Issuing Lender receives a payment of a reimbursement obligation as to which it
has received any payments from the Participants pursuant to clause (c) above, such Issuing Lender
shall pay to each such Participant which has paid its RL Percentage thereof, in Dollars and in same
day funds, an amount equal to such Participant’s share (based upon the proportionate aggregate
amount originally funded by such Participant to the aggregate amount funded by all Participants) of
the principal amount of such reimbursement obligation and interest thereon accruing after the
purchase of the respective participations.

          (e) Upon the request of any Participant, each Issuing Lender shall furnish to such Participant
copies of any standby Letter of Credit issued by it and such other documentation as may reasonably
be requested by such Participant.

          (f) The obligations of the Participants to make payments to each Issuing Lender with respect
to Letters of Credit shall be irrevocable and not subject to any qualification or exception
whatsoever (except in the case of an Issuing Lender’s gross negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final and non-appealable decision)) and shall
be made in accordance with the terms and conditions of this Agreement under all circumstances,
including, without limitation, any of the following circumstances:

     (i) any lack of validity or enforceability of this Agreement or any of the other Credit
Documents;

     (ii) the existence of any claim, setoff, defense or other right which Holdings or any
of its Subsidiaries may have at any time against a beneficiary named in a Letter of Credit,
any transferee of any Letter of Credit (or any Person for whom any such transferee may be
acting), the Administrative Agent, any Participant, or any other Person, whether in
connection with this Agreement, any Letter of Credit, the transactions contemplated herein
or any unrelated transactions (including any underlying transaction between Holdings or any
Subsidiary of Holdings and the beneficiary named in any such Letter of Credit);

     (iii) any draft, certificate or any other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

     (iv) the surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents; or

     (v) the occurrence of any Default or Event of Default.

          3.05 Agreement to Repay Letter of Credit Drawings. (a) The Borrower agrees to reimburse each Issuing Lender, by making payment to the
Administrative Agent in immediately available funds at the Payment Office, for any payment or
disbursement made by such Issuing Lender under any Letter of Credit issued by it (each such amount,
so paid until reimbursed by the Borrower, an “Unpaid Drawing”), not later than one Business
Day following

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receipt by the Borrower of notice of such payment or disbursement (provided
that no such notice shall be required to be given if a Default or an Event of Default under
Section 11.05 with respect to the Borrower shall have occurred and be continuing, in which
case the Unpaid Drawing shall be due and payable immediately without presentment, demand, protest
or notice of any kind (all of which are hereby waived by the Borrower)), with interest on the
amount so paid or disbursed by such Issuing Lender, to the extent not reimbursed prior to 1:00 P.M.
(New York time) on the date of such payment or disbursement, from and including the date paid or
disbursed to but excluding the date such Issuing Lender was reimbursed by the Borrower therefor at
a rate per annum equal to the Base Rate in effect from time to time plus the Applicable Margin as
in effect from time to time for Revolving Loans that are maintained as Base Rate Loans;
provided, however, to the extent such amounts are not reimbursed prior to 1:00 P.M.
(New York time) on the third Business Day following the receipt by the Borrower of notice of such
payment or disbursement or following the occurrence of a Default or an Event of Default under
Section 11.05 with respect to the Borrower, interest shall thereafter accrue on the amounts
so paid or disbursed by such Issuing Lender (and until reimbursed by the Borrower) at a rate per
annum equal to the Base Rate as in effect from time to time plus the Applicable Margin for
Revolving Loans that are maintained as Base Rate Loans as in effect from time to time plus 2%, with
such interest to be payable on demand. Each Issuing Lender shall give the Borrower prompt written
notice of each Drawing under any Letter of Credit issued by it, provided that the failure
to give any such notice shall in no way affect, impair or diminish the Borrower’s obligations
hereunder.

          (b) The obligations of the Borrower under this Section 3.05 to reimburse each Issuing
Lender with respect to drafts, demands and other presentations for payment under Letters of Credit
issued by it (each, a “Drawing”) (including, in each case, interest thereon) shall be
absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which Holdings or any Subsidiary of Holdings may have or have
had against any Lender (including in its capacity as an Issuing Lender or as a Participant),
including, without limitation, any defense based upon the failure of any drawing under a Letter of
Credit to conform to the terms of the Letter of Credit or any nonapplication or misapplication by
the beneficiary of the proceeds of such Drawing; provided, however, that the
Borrower shall not be obligated to reimburse any Issuing Lender for any wrongful payment made by
such Issuing Lender under a Letter of Credit issued by it as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of such Issuing Lender (as
determined by a court of competent jurisdiction in a final and non-appealable decision).

          3.06 Increased Costs. If at any time after the Effective Date, the introduction or effectiveness of or any change in
any applicable law, rule, regulation, order, guideline or request or in the interpretation or
administration thereof by the NAIC or any governmental authority charged with the interpretation or
administration thereof, or compliance by any Issuing Lender or any Participant with any request or
directive by the NAIC or by any such governmental authority (whether or not
having the force of law), shall either (i) impose, modify or make applicable any reserve, deposit,
capital adequacy or similar requirement against letters of credit issued by any Issuing Lender or
participated in by any Participant, or (ii) impose on any Issuing Lender or any Participant any
other conditions relating, directly or indirectly, to this Agreement or any Letter of Credit; and
the result of any of the foregoing is to increase the cost to any Issuing Lender or any Participant
of issuing, maintaining or participating in any Letter of Credit, or reduce the amount of any sum
received or receivable by any Issuing Lender or any Participant hereunder or reduce

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the rate of
return on its capital with respect to Letters of Credit (other than (1) Indemnified Taxes covered
in Section 5.04(a), (2) Excluded Taxes and (3) Other Connection Taxes), then, upon the
delivery of the certificate referred to below to the Borrower by any Issuing Lender or any
Participant (a copy of which certificate shall be sent by such Issuing Lender or such Participant
to the Administrative Agent), the Borrower agrees to pay to such Issuing Lender or such Participant
such additional amount or amounts as will compensate such Issuing Lender or such Participant for
such increased cost or reduction in the amount receivable or reduction on the rate of return on its
capital. Any Issuing Lender or any Participant, upon determining that any additional amounts will
be payable pursuant to this Section 3.06, will give prompt written notice thereof to the
Borrower, which notice shall include a certificate submitted to the Borrower by such Issuing Lender
or such Participant (a copy of which certificate shall be sent by such Issuing Lender or such
Participant to the Administrative Agent), setting forth in reasonable detail the basis for the
calculation of such additional amount or amounts necessary to compensate such Issuing Lender or
such Participant. The certificate required to be delivered pursuant to this Section 3.06
shall, absent manifest error, be final and conclusive and binding on the Borrower. Notwithstanding
anything to the contrary in this Section 3.06, the Borrower shall not be required to
compensate any Issuing Lender or Participant pursuant to this Section 3.06 for any amounts
incurred more than 180 days prior to the date that such Person notifies the Borrower of such
Person’s intention to claim compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such 180-day period shall be extended to include the
period of such retroactive effect.

          3.07 Extended Revolving Loan Commitments. If the Initial Revolving Loan Maturity Date shall have occurred at a time when Extended
Revolving Loan Commitments are in effect, then such Letters of Credit shall automatically be deemed
to have been issued (including for purposes of the obligations of the RL Lenders under the
applicable Tranche to purchase participations therein and to make Revolving Loans and payments in
respect thereof pursuant to Sections 3.04 and 3.05) under (and ratably participated
in by Lenders under the applicable Tranche pursuant to) the Extended Revolving Loan Commitments up
to an aggregate amount not to exceed the aggregate principal amount of the unutilized Extended
Revolving Loan Commitments thereunder at such time (it being understood that no partial face amount
of any Letter of Credit may be so reallocated). Except to the extent of reallocations of
participations pursuant to the prior sentence, the occurrence of the Initial Revolving Loan
Maturity Date with respect to a given Tranche of Revolving Loan Commitments shall have no effect
upon (and shall not diminish) the percentage participations of the Lenders under a Tranche in any
Letter of Credit under such Tranche issued before the Initial Revolving Loan Maturity Date.

          SECTION 4. Commitment Commission; Fees; Reductions of Commitment.

          4.01 Fees. (a) The Borrower agrees to pay to the Administrative Agent for distribution to each
Non-Defaulting RL Lender a commitment commission (the “Commitment Commission”) for the
period from and including the Effective Date to and including the Revolving Loan Maturity Date (or
such earlier date on which the Total Revolving Loan Commitment has been terminated) computed at a
rate per annum equal to 0.50% of the Unutilized Revolving Loan Commitment of such Non-Defaulting RL
Lender as in effect from time to time. Accrued Commitment Commission shall be due and payable
quarterly in arrears on each Quarterly Payment Date and on the date upon which the Total Revolving
Loan

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Commitment is terminated. Notwithstanding the foregoing, Commitment Commission in respect of
any Extended Revolving Loan Commitments shall be the rate set forth in the relevant Extension
Offer.

          (b) The Borrower agrees to pay to the Administrative Agent for distribution to each RL Lender
(based on such RL Lender’s respective RL Percentage) a fee in respect of each Letter of Credit (the
“Letter of Credit Fee”) for the period from and including the date of issuance of such
Letter of Credit to and including the date of termination or expiration of such Letter of Credit,
computed at a rate per annum equal to the Applicable Margin as in effect from time to time during
such period with respect to Revolving Loans that are maintained as Eurodollar Loans on the daily
Stated Amount of each such Letter of Credit. Accrued Letter of Credit Fees shall be due and
payable quarterly in arrears on each Quarterly Payment Date and on the first day on or after the
termination of the Total Revolving Loan Commitment upon which no Letters of Credit remain
outstanding. Notwithstanding the foregoing, the Letter of Credit Fee in respect of any Extended
Revolving Loan Commitments shall be the rate set forth in the relevant Extension Offer.

          (c) The Borrower agrees to pay to each Issuing Lender, for its own account, a facing fee in
respect of each Letter of Credit issued by it (the “Facing Fee”) for the period from and
including the date of issuance of such Letter of Credit to and including the date of termination or
expiration of such Letter of Credit, computed at a rate per annum equal to 1/4 of 1% on the daily
Stated Amount of such Letter of Credit, provided that in any event the minimum amount of
Facing Fees payable in any twelve-month period for each Letter of Credit shall be not less than
$500; it being agreed that, on the day of issuance of any Letter of Credit and on each anniversary
thereof prior to the termination or expiration of such Letter of Credit, if $500 will exceed the
amount of Facing Fees that will accrue with respect to such Letter of Credit for the immediately
succeeding twelve-month period, the full $500 shall be payable on the date of issuance of such
Letter of Credit and on each such anniversary thereof. Except as otherwise provided in the proviso
to the immediately preceding sentence, accrued Facing Fees shall be due and payable quarterly in
arrears on each Quarterly Payment Date and upon the first day on or after the termination of the
Total Revolving Loan Commitment upon which no Letters of Credit remain outstanding.

          (d) The Borrower agrees to pay to each Issuing Lender, for its own account, upon each payment
under, issuance of, or amendment to, any Letter of Credit issued by it, such amount as shall at the
time of such event be the administrative charge and the reasonable expenses which such Issuing
Lender is generally imposing in connection with such occurrence with respect to letters of credit.

          (e) The Borrower agrees to pay to the Administrative Agent for distribution to the respective
Incremental Term Loan Lenders such fees as may be agreed to as provided in Section 2.14(a).

          (f) The Borrower agrees to pay to the Administrative Agent for distribution to the respective
Incremental RL Lenders such fees as may be agreed to as provided in Section 2.15(a).

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          (g) The Borrower agrees to pay to the Administrative Agent and its Affiliates such fees as may
be agreed to in writing from time to time by Holdings and/or any of its Subsidiaries and the
Administrative Agent and such Affiliates.

          (h) All voluntary prepayments of principal of Initial Term Loans pursuant to Sections
5.01(a) and (b) and all mandatory repayments of principal of Initial Term Loans
pursuant to Sections 5.02(c) and (d) (other than, in each case, any such prepayment
or repayment made in connection with a Change of Control, but only so long as all outstanding Loans
are repaid in full and the Total Revolving Loan Commitment is terminated at the time of such Change
of Control) will be subject to payment by the Borrower to the Administrative Agent, for the ratable
account of each Lender with outstanding Initial Term Loans, of a fee as follows: (x) if payable
prior to May 11, 2012, an amount equal to 2.0% of the aggregate principal amount of such prepayment
or repayment, as the case may be, and (y) if payable on or after May 11, 2012 and prior to May 11,
2013, an amount equal to 1.0% of the aggregate principal amount of such prepayment or repayment, as
the case may be. Such fees shall be earned, due and payable by the Borrower upon the date of any
such prepayment or repayment, as the case may be. It being understood that any Lender with
outstanding Initial Term Loans that is replaced as a Replaced Lender pursuant to clause (z) of
Section 2.13 prior to the second anniversary of the Initial Borrowing Date shall be treated
as having its Initial Term Loans prepaid by the Borrower and shall be entitled to receive from the
Borrower the applicable fee set forth above at the time of such replacement.

          4.02 Voluntary Termination of Unutilized Revolving Loan Commitments. (a) Upon at least three Business Days’ prior written notice to the Administrative Agent at the
Notice Office (which notice the Administrative Agent shall promptly transmit to each of the
Lenders), the Borrower shall have the right, at any time or from time to time, without premium or
penalty to terminate the Total Unutilized Revolving Loan Commitment in whole, or reduce it in part,
pursuant to this Section 4.02(a), in an integral multiple of $1,000,000 in the case of
partial reductions to the Total Unutilized Revolving Loan Commitment, provided that each
such reduction shall apply proportionately to permanently reduce the Revolving Loan Commitment of
each RL Lender.

          (b) In the event of a refusal by a Lender to consent to certain proposed changes, waivers,
discharges or terminations with respect to this Agreement which have been approved by the Required
Lenders as (and to the extent) provided in Section 13.12(b), the Borrower shall have the
right, subject to obtaining the consents required by Section 13.12(b), upon five Business
Days’ prior written notice to the Administrative Agent at the Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), to terminate the entire
Revolving Loan Commitment of such Lender, so long as all Loans, together with accrued and unpaid
interest, Fees and all other amounts, owing to such Lender (including all amounts, if any, owing
pursuant to Section 2.11 but excluding the payment of amounts owing in respect of Loans of
any Tranche maintained by such Lender, if such Loans are not being repaid pursuant to Section
13.12(b)) are repaid concurrently with the effectiveness of such termination pursuant to
Section 5.01(b) (at which time Schedule I shall be deemed modified to reflect such
changed amounts) and such Lender’s RL Percentage of all outstanding Letters of Credit is
reallocated and/or cash collateralized in the manner set forth in clause (c) below, and at such
time, unless the respective Lender continues to have outstanding Term Loans hereunder,

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such Lender
shall no longer constitute a “Lender” for purposes of this Agreement, except with respect
to indemnifications under this Agreement (including, without limitation, Sections 2.10,
2.11, 3.06, 5.04, 12.06 and 13.01), which shall survive as
to such repaid Lender.

          (c) If any Letter of Credit Exposure exists at the time that an RL Lender’s Revolving Loan
Commitment is terminated as provided in Section 4.02(b), becomes a Defaulting Lender then:

     (i) all or any part of such Letter of Credit Exposure shall be reallocated among the RL
Lenders that are Non-Defaulting RL Lenders in accordance with their respective RL
Percentages but only to the extent (x) the sum of the individual RL Exposures of all RL
Lenders that are Non-Defaulting RL Lenders plus such terminated RL Lender’s Letter of Credit
Exposure that is to be reallocated does not exceed the aggregate amount of all
Non-Defaulting RL Lenders’ Revolving Loan Commitments and (y) immediately following the
reallocation to an RL Lender that is a Non-Defaulting Lender, the Individual RL Exposure of
such RL Lender does not exceed its Revolving Loan Commitment at such time; and

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrower shall within three (3) Business Days following notice by the
Administrative Agent cash collateralize in a manner reasonably satisfactory to the
applicable Issuing Lender such terminated RL Lender’s Letter of Credit Exposure (after
giving effect to any partial reallocation pursuant to clause (i) above) in an aggregate
amount equal to 100% of such terminated RL Lender’s Letter of Credit Exposure (after giving
effect to any partial reallocation pursuant to clause (i) above) for so long as such Letter
of Credit Exposure is outstanding.

          4.03 Mandatory Reduction of Commitments. (a) The Total Commitment (and the Commitment of each Lender) shall terminate in its entirety on
May 31, 2011, unless the Initial Borrowing Date has occurred on or prior to such date.

          (b) In addition to any other mandatory commitment reductions pursuant to this Section
4.03, the Total Initial Term Loan Commitment (and the Initial Term Loan Commitment of each
Lender) shall terminate in its entirety on the Initial Borrowing Date (after giving effect to the
incurrence of Initial Term Loans on such date).

          (c) In addition to any other mandatory commitment reductions pursuant to this Section
4.03, the Total Incremental Term Loan Commitment under a given Tranche shall terminate in its
entirety on the Incremental Term Loan Borrowing Date for such Tranche of Incremental Term Loans
(after giving effect to the incurrence of Incremental Term Loans of such Tranche on such date).

          (d) In addition to any other mandatory commitment reductions pursuant to this Section
4.03, (i) the Total Revolving Loan Commitment (and the Revolving Loan Commitment of each RL
Lender) (other than Extended Revolving Loan Commitments) shall terminate in its entirety upon the
Initial Revolving Loan Maturity Date and (ii) the Total Revolving Loan Commitment remaining in
effect after the Initial Revolving Loan Maturity Date

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shall terminate in its entirety upon the
Revolving Loan Maturity Date applicable to any Extended Revolving Loan Commitments.

          SECTION 5. Prepayments; Payments; Taxes.

          5.01 Voluntary Prepayments. (a) The Borrower shall have the right to prepay the Loans, without premium or penalty
(except as set forth in clause (vi) of this Section 5.01(a)), in whole or in part at any
time and from time to time on the following terms and conditions: (i) the Borrower shall give the
Administrative Agent prior to 12:00 Noon (New York time) at the Notice Office (x) at least one
Business Day’s prior written notice (or telephonic notice promptly confirmed in writing) of its
intent to prepay Base Rate Loans (or same day notice in the case of a prepayment of Swingline
Loans) and (y) at least two Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) of its intent to prepay Eurodollar Loans, which notice (in each case) shall
specify (I) whether Initial Term Loans, Incremental Term Loans under a given Tranche, Revolving
Loans or Swingline Loans shall be prepaid, (II) the amount of such prepayment, (III) the Types of
Loans to be prepaid, and (IV) in the case of Eurodollar Loans, the specific Borrowing or Borrowings
pursuant to which such Eurodollar Loans were made, and which notice the Administrative Agent shall,
except in the case of a prepayment of Swingline Loans, promptly transmit to each of the Lenders;
(ii) (x) each partial prepayment of Term Loans pursuant to this Section 5.01(a) shall be in
an aggregate principal amount of at least $500,000 (or such lesser amount as is acceptable to the
Administrative Agent), (y) each partial prepayment of Revolving Loans pursuant to this Section
5.01(a) shall be in an aggregate principal amount of at least $500,000 (or such lesser amount
as is acceptable to the Administrative Agent) and (z) each partial prepayment of Swingline Loans
pursuant to this Section 5.01(a) shall be in an aggregate principal amount of at least
$50,000 (or such lesser amount as is acceptable to the Administrative Agent), provided that
if any partial prepayment of Eurodollar Loans made pursuant to any Borrowing shall reduce the
outstanding principal amount of Eurodollar Loans made pursuant to
such Borrowing to an amount less than the Minimum Borrowing Amount applicable thereto, then
such Borrowing may not be continued as a Borrowing of Eurodollar Loans (and same shall
automatically be converted into a Borrowing of Base Rate Loans) and any election of an Interest
Period with respect thereto given by the Borrower shall have no force or effect; (iii) each
prepayment pursuant to this Section 5.01(a) in respect of any Loans made pursuant to a
Borrowing shall be applied pro rata among such Loans, provided that at the
Borrower’s election in connection with any prepayment of Revolving Loans pursuant to this
Section 5.01(a), such prepayment shall not, so long as no Default or Event of Default then
exists, be applied to any Revolving Loan of a Defaulting Lender; (iv) each prepayment in respect of
any Tranche of Term Loans made pursuant to this Section 5.01(a) shall be allocated among
each of the outstanding Tranches of Term Loans on a pro rata basis, with each
Tranche of Term Loans to be allocated its Term Loan Percentage of the amount of such prepayment;
(v) each prepayment of any Tranche of Term Loans pursuant to this Section 5.01(a) shall
reduce the then remaining Scheduled Term Loan Repayments of such Tranche of Term Loans in the order
designated in writing by the Borrower to the Administrative Agent at the time that the Borrower
delivers its respective notice of prepayment or, in the absence of such designation, in direct
order of maturity; and (vi) any prepayment of Initial Term Loans made prior to the two year
anniversary date of the Initial Borrowing Date shall be
accompanied by the payment of the fee
described in Section 4.01(h).

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          (b) In the event of a refusal by a Lender to consent to certain proposed changes, waivers,
discharges or terminations with respect to this Agreement which have been approved by the Required
Lenders as (and to the extent) provided in Section 13.12(b), the Borrower shall have the
right, upon five Business Days’ prior written notice to the Administrative Agent at the Notice
Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), to
repay all Loans of such Lender, together with accrued and unpaid interest, Fees, and all other
amounts (including all amounts, if any, owing under Section 2.11) then owing to such Lender
(or owing to such Lender with respect to each Tranche which gave rise to the need to obtain such
Lender’s individual consent) in accordance with, and subject to the requirements of, said
Section 13.12(b), so long as (A) in the case of the repayment of Revolving Loans of any
Lender pursuant to this clause (b), (x) the Revolving Loan Commitment of such Lender is terminated
concurrently with such repayment pursuant to Section 4.02(b) (at which time Schedule
I shall be deemed modified to reflect the changed Revolving Loan Commitments), and (y) such
Lender’s RL Percentage of all outstanding Letters of Credit is reallocated and/or cash
collateralized in the manner provided in Section 4.02(c) and (B) the consents, if any,
required by Section 13.12(b) in connection with the repayment pursuant to this clause (b)
shall have been obtained. Each prepayment of any Tranche of Term Loans pursuant to this
Section 5.01(b) shall reduce the then remaining Scheduled Term Loan Repayments of such
Tranche of Term Loans on a pro rata basis (based upon the then remaining principal
amount of each such Scheduled Term Loan Repayment of such Tranche of Term Loans after giving effect
to all prior reductions thereto).

          5.02 Mandatory Repayments. (a) On any day on which the sum of (I) the aggregate outstanding principal amount of all
Revolving Loans (after giving effect to all other repayments thereof on such date), (II) the
aggregate outstanding principal amount of all Swingline Loans (after giving effect to all other
repayments thereof on such date) and (III) the aggregate amount of all Letter of Credit
Outstandings exceeds the Total Revolving Loan Commitment at such time, the Borrower shall prepay on
such day the principal of Swingline Loans and, after all Swingline Loans have been repaid in full
or if no Swingline Loans are outstanding, Revolving Loans in an amount equal to such excess. If,
after giving effect to the prepayment of all outstanding Swingline Loans and Revolving Loans, the
aggregate amount of the Letter of Credit Outstandings exceeds the Total Revolving Loan Commitment
at such time, the Borrower shall pay to the Administrative Agent at the Payment Office on such day
an amount of cash and/or Cash Equivalents equal to the amount of such excess (up to a maximum
amount equal to the Letter of Credit Outstandings at such time), such cash and/or Cash Equivalents
to be held as security for all Obligations of the Borrower to the Issuing Lenders and the Lenders
hereunder in a cash collateral account to be established and controlled by the Administrative
Agent.

          (b) (i) In addition to any other mandatory repayments pursuant to this Section 5.02,
on each date set forth below (each, a “Scheduled Initial Term Loan Repayment Date”), the
Borrower shall be required to repay that principal amount of Initial Term Loans, to the extent then
outstanding, as is set forth opposite each such date below (each such repayment, as the same may be
(x) reduced as provided in Section 5.01(a), 5.01(b) or 5.02(g) or (y)
increased as provided in the immediately succeeding paragraph and in Section 2.14(c), a
“Scheduled Initial Term Loan Repayment”):

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	Scheduled Initial Term Loan Repayment Date	 	Amount
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2011
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2011
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2011
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2012
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2012
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2012
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2012
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2013
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2013
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2013
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2013
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2014
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2014
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2014
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2014
	 	$	750,000	 

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	Scheduled Initial Term Loan Repayment Date	 	Amount
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2015
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2015
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2015
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2015
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2016
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2016
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2016
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2016
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2017
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending June 30, 2017
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending September 30, 2017
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending December 31, 2017
	 	$	750,000	 
	The last Business Day of the Borrower’s fiscal
quarter ending March 31, 2018
	 	$	750,000	 
	Initial Term Loan Maturity Date
	 	$279,000,000 (or, if less, the then remaining aggregate outstanding principal amount of Initial Term Loans)

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If, as of the last day of any fiscal quarter of Holdings (commencing with the fiscal quarter ending
June 30, 2011), the Secured Leverage Ratio for the Test Period ended on such day is greater than
2.75:1.00, then the Scheduled Initial Term Loan Repayment required to be made on the immediately
succeeding Scheduled Initial Term Loan Repayment Date (excluding the Initial Term Loan Maturity
Date) shall be deemed to be $3,750,000 (with such amount to be adjusted to give effect to any
voluntary prepayments theretofore made pursuant to Sections 5.01(a) and (b) and any
mandatory repayments theretofore made pursuant to Sections 5.02(c), (d),
(e) and (f) such that any such prepayments or repayments, the application of which
was respectively determined prior to the relevant  Secured Leverage Ratio calculation and the
payment of which was theretofore scheduled to be applied on the relevant Scheduled Initial Term
Loan Repayment Date, shall reduce such amount by the same percentage by which the Scheduled Initial
Term Loan Repayment set forth in the preceding table would otherwise have been reduced by the
application of the previously determined prepayment or repayment to arrive at the Scheduled Initial
Term Loan Repayment had the  Secured Leverage Ratio remained below 2.75 to 1.00, but only to
the extent of the amount of any prepayment or repayment, as applicable, that has not yet been
theretofore applied to any other Scheduled Initial Term Loan Repayment; it being understood and
agreed, however, to the extent that any future Scheduled Initial Term Loan Repayments had
theretofore been reduced as a result of any such voluntary prepayments or mandatory repayments,
such future Scheduled Initial Term Loan Repayments may be readjusted (and thereby increased) to
reflect the adjustment made above in this parenthetical).

          (ii) In addition to any other mandatory repayments pursuant to this Section 5.02, the
Borrower shall be required to make, with respect to each Tranche of Incremental Term Loans, to the
extent then outstanding, scheduled amortization payments of such Tranche of
Incremental Term Loans on the dates and in the principal amounts set forth in the respective
Incremental Term Loan Commitment Agreement (each such date, a “Scheduled Incremental Term Loan
Repayment Date”, and each such repayment, as the same may be (x) reduced as provided in Section
5.01(a), 5.01(b) or 5.02(g) or (y) increased as provided in Section
2.14(c), a “Scheduled Incremental Term Loan Repayment”).

          (c) In addition to any other mandatory repayments pursuant to this Section 5.02, on
each date on or after the Initial Borrowing Date upon which Holdings or any of its Subsidiaries
receives any cash proceeds from any issuance or incurrence by Holdings or any of its Subsidiaries
of Indebtedness for borrowed money (other than Indebtedness for borrowed money permitted to be
incurred pursuant to Section 10.04), an amount equal to 100% of the Net Debt Proceeds of
the respective incurrence of Indebtedness shall be applied on such date as a mandatory repayment in
accordance with the requirements of Sections 5.02(g) and (h).

          (d) In addition to any other mandatory repayments pursuant to this Section 5.02, on
each date on or after the Initial Borrowing Date upon which Holdings or any of its Subsidiaries
receives any cash proceeds from any Asset Sale, an amount equal to 100% of the Net Sale Proceeds
therefrom shall be applied on such date as a mandatory repayment in accordance with the
requirements of Sections 5.02(g) and (h); provided, however, that
with respect to no more than $30,000,000 in the aggregate of such Net Sale Proceeds received by
Holdings or its Subsidiaries in any fiscal year of Holdings, such Net Sale Proceeds shall not be
required to be so applied on such date so long as no Default or Event of Default then exists and
such Net Sale Proceeds shall be used to purchase assets used or to be used in the businesses

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permitted pursuant to Section 10.11 within 365 days following the date of such Asset Sale;
and provided further, however, that if all or any portion of such Net Sale Proceeds not
required to be so applied as provided above in this Section 5.02(d) are not so reinvested
within such 365-day period (or such earlier date, if any, as Holdings or the relevant Subsidiary
determines not to reinvest the Net Sale Proceeds from such Asset Sale as set forth above), such
remaining portion shall be applied on the last day of such period (or such earlier date, as the
case may be) as provided above in this Section 5.02(d) without regard to the preceding
proviso.

          (e) In addition to any other mandatory repayments pursuant to this Section 5.02, on
each Excess Cash Flow Payment Date, an amount equal to remainder (if positive) of (A) the
Applicable Excess Cash Flow Repayment Percentage of the Excess Cash Flow for the related Excess
Cash Flow Payment Period minus (B) the aggregate amount of principal repayments of Loans
(other than any Term Loans (calculated at the face amount thereof) purchased or repaid pursuant to
an Auction) to the extent (and only to the extent) that such repayments were made as a voluntary
prepayment pursuant to Section 5.01 with internally generated funds (but in a case of a
voluntary prepayment of Revolving Loans or Swingline Loans, only to the extent accompanied by a
voluntary reduction to the Total Revolving Loan Commitment in an amount equal to such prepayment)
during the relevant Excess Cash Flow Payment Period, shall be applied as a mandatory repayment in
accordance with the requirements of Sections 5.02(g) and (h).

          (f) In addition to any other mandatory repayments pursuant to this Section 5.02,
within 30 days following each date on or after the Initial Borrowing Date upon which Holdings or
any of its Subsidiaries receives any cash proceeds from any Recovery Event (other than Recovery
Events where the Net Recovery Event Proceeds therefrom do not exceed
$500,000), an amount equal to 100% of the Net Recovery Event Proceeds from such Recovery Event
shall be applied within such 30 day period as a mandatory repayment in accordance with the
requirements of Sections 5.02(g) and (h); provided, however that,
so long as no Default or Event of Default then exists, such Net Recovery Event Proceeds shall not
be required to be so applied within such 30 day period to the extent that such Net Recovery Event
Proceeds shall be used to purchase assets used or to be used in the businesses permitted pursuant
to Section 10.11 within 365 days following the date of the receipt of such Net Recovery
Event Proceeds; and provided further, that if all or any portion of such Net Recovery Event
Proceeds not required to be so applied pursuant to the preceding proviso are not so used within 365
days after the date of the receipt of such Net Recovery Event Proceeds (or such earlier date, if
any, as Holdings or the relevant Subsidiary determines not to reinvest the Net Recovery Event
Proceeds relating to such Recovery Event as set forth above), such remaining portion shall be
applied on the last day of such period (or such earlier date, as the case may be) as provided above
in this Section 5.02(f) without regard to the immediately preceding proviso.

          (g) Each amount required to be applied pursuant to Sections 5.02(c), (d),
(e) and (f) in accordance with this Section 5.02(g) shall be applied to
repay the outstanding principal amount of Term Loans and shall be allocated among each Tranche of
outstanding Term Loans on a pro rata basis, with each Tranche of Term Loans to be
allocated its Term Loan Percentage of the amount of the respective repayment. The amount of each
principal repayment of each Tranche of Term Loans made as required by Sections 5.02(c),
5.02(d), 5.02(e) and 5.02(f) shall be applied to reduce the then remaining
Scheduled Term Loan Repayments on a pro rata basis

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(based upon the then remaining
principal amounts of such Scheduled Term Loan Repayments of such Tranche of Term Loans after giving
effect to all prior reductions thereto).

          (h) With respect to each repayment of Loans required by this Section 5.02, the
Borrower may designate the Types of Loans of the respective Tranche which are to be repaid and, in
the case of Eurodollar Loans, the specific Borrowing or Borrowings of the respective Tranche
pursuant to which such Eurodollar Loans were made, provided that: (i) repayments of
Eurodollar Loans pursuant to this Section 5.02 may only be made on the last day of an
Interest Period applicable thereto unless all Eurodollar Loans of the respective Tranche with
Interest Periods ending on such date of required repayment and all Base Rate Loans of the
respective Tranche have been paid in full; (ii) if any repayment of Eurodollar Loans made pursuant
to a single Borrowing shall reduce the outstanding Eurodollar Loans made pursuant to such Borrowing
to an amount less than the Minimum Borrowing Amount applicable thereto, such Borrowing shall be
automatically converted into a Borrowing of Base Rate Loans; and (iii) each repayment of any Loans
made pursuant to a Borrowing shall be applied pro rata among such Loans. In the
absence of a designation by the Borrower as described in the preceding sentence, the Administrative
Agent shall, subject to the above, make such designation in its sole discretion with a view, but
not an obligation, to minimize breakage cost owing under Section 2.11.

          (i) In addition to any other mandatory repayments pursuant to this Section 5.02, (i)
notwithstanding anything to the contrary contained herein, all then outstanding Loans of a
respective Tranche (other than Swingline Loans) shall be repaid in full on the respective Maturity
Date for such Tranche of Loans, and (ii) outstanding Swingline Loans shall be repaid in full on the
earlier of (x) the fifth Business Day following the date of the incurrence of such Swingline Loans
and (y) the Swingline Expiry Date.

          5.03 Method and Place of Payment. Except as otherwise specifically provided herein, all payments under this Agreement and under
any Note shall be made to the Administrative Agent for the account of the Lender or Lenders
entitled thereto not later than 1:00 P.M. (New York time) on the date when due and shall be made in
Dollars in immediately available funds at the Payment Office; provided that, written notice
by the Borrower to the Administrative Agent regarding the making of any payment from the Borrower’s
account at the Payment Office shall be deemed the making of such payment to the extent that a
sufficient amount of funds are available to be withdrawn from such account and such funds are in
fact transferred to the Payment Office. Any payments under this Agreement or under any Note which
are made later than 1:00 P.M. (New York time) on any day shall be deemed to have been made on the
next succeeding Business Day. Whenever any payment to be made hereunder or under any Note shall be
stated to be due on a day which is not a Business Day, the due date thereof shall be extended to
the next succeeding Business Day and, with respect to payments of principal, interest shall be
payable at the applicable rate during such extension.

          5.04 Net Payments. (a) All payments made by the Borrower hereunder and under any Note will be made without setoff,
counterclaim or other defense. All such payments will be made free and clear of, and without
deduction or withholding for Taxes, unless such deduction or withholding is required by any law.
If any such Taxes are Indemnified Taxes, the Borrower agrees to pay the full amount of such
Indemnified Taxes, and such additional amounts as may be necessary so that every payment of all
amounts due under this Agreement or under

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any Note, after withholding or deduction for or on
account of any such Indemnified Taxes, will not be less than the amount provided for herein or in
such Note had no such withholding or deduction been made. The Borrower will furnish to the
Administrative Agent within 45 days after the date the payment of any Taxes is due pursuant to
applicable law certified copies of tax receipts (or such other evidence reasonably satisfactory to
the Administrative Agent) evidencing such payment by the Borrower (to the extent Borrower is
responsible for making such withholding or deduction). The Borrower agrees to indemnify and hold
harmless each Lender, and reimburse such Lender upon its written request, for the amount of any
Indemnified Taxes so levied or imposed and paid by such Lender.

          (b) Each Lender that is a United States person (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes (other than a Lender that may be treated as an
exempt recipient under Treasury Regulations Section 1.6049-4(c)(1)(ii), subject to the provisions
of Treasury Regulations Section 1.1441-1(d)(4)) agrees to deliver to the Borrower and the
Administrative Agent on or prior to the Effective Date or, in the case of a Lender that is an
assignee or transferee of an interest under this Agreement pursuant to Section 2.13 or 13.04(b)
(unless the respective Lender was already a Lender hereunder immediately prior to such assignment
or transfer), on the date of such assignment or transfer to such Lender, an Internal Revenue
Service Form W-9. Each Lender that is not a United States person (as such term is defined in
Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes (“Foreign Lender”)
and not described in the succeeding sentence (regarding Internal Revenue Service Form W-8IMY)
agrees to deliver to the Borrower and the Administrative Agent on or prior to the Effective Date
or, in the case of a Lender that is an assignee or transferee of an
interest under this Agreement pursuant to Section 2.13 or 13.04(b) (unless the
respective Lender was already a Lender hereunder immediately prior to such assignment or transfer),
on the date of such assignment or transfer to such Lender, (i) two accurate and complete original
signed copies of Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete
exemption or reduction under an income tax treaty) (or successor forms) certifying to such Lender’s
entitlement as of such date to a complete exemption or reduction in from United States withholding
tax with respect to payments to be made under this Agreement and under any Note, or (ii) if the
Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver
either Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete exemption
under an income tax treaty) (or any successor forms) pursuant to clause (i) above, (x) a
certificate substantially in the form of Exhibit D (any such certificate, a “Section
5.04(b)(ii) Certificate”) and (y) two accurate and complete original signed copies of Internal
Revenue Service Form W-8BEN (with respect to the portfolio interest exemption) (or successor form)
certifying to such Lender’s entitlement as of such date to a complete exemption from United States
withholding tax with respect to payments of interest to be made under this Agreement and under any
Note.) In the case of a Foreign Lender that is not the beneficial owner of payments made under this
Agreement or any Note (including a partnership or a participating Lender), such Foreign Lender
shall deliver to the Borrower and the Administrative Agent on or prior to the Effective Date or, in
the case of a Lender that is an assignee or transferee of an interest under this Agreement pursuant
to Section 2.13 or 13.04(b) (unless the respective Lender was already a Lender hereunder
immediately prior to such assignment or transfer), on the date of such assignment or transfer to
such Lender, (i) two accurate and complete original signed copies of Internal Revenue Service Form
W-8IMY on behalf of itself and (ii) the relevant forms prescribed in the preceding two sentences as
applicable that would be required of each such

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beneficial owner or partner of such partnership if
such beneficial owner or partner were a Lender. In addition, each Foreign Lender shall, in the case
of any payment made after December 31, 2012 in respect of any Loan, Letters of Credit, Note or
Obligation that was not treated as outstanding for purposes of FATCA on March 18, 2012, provide any
forms, documentation, or other information as shall be prescribed by the Internal Revenue Service
to demonstrate that the relevant Foreign Lender has complied with the applicable reporting
requirements of FATCA. In addition, each Foreign Lender agrees that from time to time after the
Effective Date, when a lapse in time or change in circumstances renders the certification or forms
in the second and third preceding sentences obsolete or inaccurate in any material respect, such
Foreign Lender will deliver to the Borrower and the Administrative Agent two new accurate and
complete original signed copies of Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect
to the benefits of any income tax treaty), Form W-8BEN (with respect to the portfolio interest
exemption) and a Section 5.04(b)(ii) Certificate or Internal Revenue Service Form W-8IMY (together
with all underlying forms), as the case may be, and such other forms as may be required in order
to confirm or establish the entitlement of such Foreign Lender to a continued exemption from or
reduction in United States withholding tax with respect to payments under this Agreement and any
Note, or such Foreign Lender shall immediately notify the Borrower and the Administrative Agent of
its inability to deliver any such Form or Certificate, in which case such Foreign Lender shall not
be required to deliver any such Form or Certificate pursuant to this Section 5.04(b).

          (c) If the Borrower pays any additional amount under this Section 5.04 to a Lender and
such Lender determines in its sole discretion that it has actually received in
connection therewith any refund of its Tax liabilities in or with respect to the taxable year
in which the additional amount is paid (a “Tax Benefit”), such Lender shall pay to the
Borrower an amount that the Lender shall, in its sole discretion, determine is equal to the net
benefit, after tax, which was obtained by such Lender in such year as a consequence of such Tax
Benefit; provided, however, that (i) any Lender may determine, in its sole
discretion consistent with the policies of such Lender, whether to seek a Tax Benefit, (ii) any
Taxes that are imposed on a Lender as a result of a disallowance or reduction of any Tax Benefit
with respect to which such Lender has made a payment to the Borrower pursuant to this Section
5.04(c) shall be treated as a Tax for which the Borrower is obligated to indemnify such Lender
pursuant to this Section 5.04 without any exclusions or defenses, (iii) nothing in this
Section 5.04(c) shall require any Lender to disclose any confidential information to the
Borrower (including, without limitation, its tax returns), and (iv) no Lender shall be required to
pay any amounts pursuant to this Section 5.04(c) at any time when a Default or an Event of
Default exists.

          SECTION 6. Conditions Precedent to Credit Events on the Initial Borrowing Date. The obligation of each Lender to make Loans, and the obligation of each Issuing Lender to issue
Letters of Credit, on the Initial Borrowing Date, are subject at the time of the making of such
Loans or the issuance of such Letters of Credit to the satisfaction of the following conditions:

          6.01 Effective Date; Notes. On or prior to the Initial Borrowing Date, (i) the Effective Date shall have occurred as
provided in Section 13.10 and (ii) there shall have been delivered to the Administrative
Agent for the account of each of the Lenders that has requested same the appropriate Initial Term
Note and/or Revolving Note executed by the Borrower and, if

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requested by the Swingline Lender, the
Swingline Note executed by the Borrower, in each case in the amount, maturity and as otherwise
provided herein.

          6.02 Officer’s Certificate. On the Initial Borrowing Date, the Administrative Agent shall have received a certificate, dated
the Initial Borrowing Date and signed on behalf of the Borrower by the chairman of the board, the
chief executive officer, the president, the chief financial officer or any vice president of the
Borrower, certifying on behalf of the Borrower that all of the conditions in Sections 6.05,
6.06, 6.07, 6.08 and 7.01 have been satisfied on such date.

          6.03 Opinions of Counsel. On the Initial Borrowing Date, the Administrative Agent shall have received from Simpson Thacher
& Bartlett LLP, special counsel to the Credit Parties, an opinion addressed to the Administrative
Agent, the Collateral Agent and each of the Lenders and dated the Initial Borrowing Date covering
the matters set forth in Exhibit E.

          6.04 Corporate Documents; Proceedings; etc. (a) On the Initial Borrowing Date, the Administrative Agent shall have received a certificate
from each Credit Party, dated the Initial Borrowing Date, signed by the chairman of the board, the
chief executive officer, the president, the chief financial officer or any vice president of such
Credit Party, and attested to by the secretary or any assistant secretary of such Credit Party, in
the form of Exhibit F with appropriate insertions, together with copies of the certificate
or articles of incorporation and by-laws (or other equivalent organizational documents), as
applicable, of such Credit Party and the resolutions of such Credit Party referred to in such
certificate, and each of the foregoing shall be in form and substance reasonably acceptable to the
Administrative Agent.

          (b) On the Initial Borrowing Date, all corporate, limited liability company, partnership and
legal proceedings and all instruments and agreements in connection with the transactions
contemplated by this Agreement and the other Credit Documents shall be reasonably satisfactory in
form and substance to the Administrative Agent, and the Administrative Agent shall have received
all information and copies of all documents and papers, including records of corporate proceedings,
governmental approvals and good standing certificates, which the Administrative Agent reasonably
may have requested in connection therewith, such documents and papers where appropriate to be
certified by proper corporate, limited liability company, partnership or governmental authorities.

          6.05 Existing Holdings Notes Redemption and Discharge. On or prior to the Initial Borrowing Date, (i) Holdings shall have delivered to the
Existing Holdings Notes Trustee an irrevocable notice of redemption for all outstanding Existing
Holdings Notes, which redemption (the “Existing Holdings Notes Redemption”) shall be
effected on or about June 10, 2011 (the “Existing Holdings Notes Redemption Date”) in
accordance with the optional redemption provisions set forth in Article Three of the Existing
Holdings Notes Indenture, (ii) concurrently with the funding of the Initial Term Loans hereunder,
(I) Holdings shall have irrevocably deposited with the Existing Holdings Notes Trustee cash in an
amount sufficient to pay and discharge, or defease, the entire Indebtedness on the outstanding
Existing Holdings Notes for principal of, and premium and interest on, such Existing Holdings Notes
to, but not including, the Existing Holdings Notes Redemption Date, (II) Holdings shall have paid
all other sums that are then payable by Holdings under the Existing Holdings Notes Indenture and
(III) Holdings shall have irrevocably instructed the Existing Holdings Notes Trustee in writing to

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apply the funds referred to in preceding sub-clause (I) to the payment of the Existing Holdings
Notes on the Existing Holdings Notes Redemption Date and (iii) the Administrative Agent shall have
received evidence, in form and substance reasonably satisfactory to it, that the matters set forth
in preceding clauses (i) and (ii) have been satisfied.

          6.06 Refinancing. On the Initial Borrowing Date and concurrently with the funding of the Initial Term Loans
hereunder, all Indebtedness under the Existing Credit Agreement shall have been repaid in full
(other than the Existing Letters of Credit that are incorporated herein as Letters of Credit) and
all commitments in respect thereof shall have been terminated and all Liens and guaranties in
connection therewith shall have been terminated (and all appropriate releases, termination
statements or other instruments of assignment with respect thereto shall have been obtained) to
the reasonable satisfaction of the Administrative Agent. The Administrative Agent shall have
received satisfactory evidence (including satisfactory pay-off letters, mortgage releases,
Intellectual Property releases and UCC-3 termination statements) that the matters set forth in the
immediately preceding sentence have been satisfied as of the Initial Borrowing Date.

          6.07 Adverse Change, Approvals. (a) Since December 31, 2010 (but for this purpose assuming that the Transaction had occurred
prior to December 31, 2010), nothing shall have occurred which has had, or could reasonably be
expected to have, a Material Adverse Effect.

          (b) On or prior to the Initial Borrowing Date, all necessary governmental (domestic and
foreign) and material third party approvals and/or consents in connection with the Transaction, the
other transactions contemplated hereby and the granting of Liens under the Credit Documents shall
have been obtained and remain in effect, and all applicable waiting periods with respect thereto
shall have expired without any action being taken by any competent authority which restrains,
prevents or imposes materially adverse conditions upon the consummation of the Transaction or the
other transactions contemplated by the Credit Documents or otherwise referred to herein or therein.
On the Initial Borrowing Date, there shall not exist any judgment, order, injunction or other
restraint issued or filed or a hearing seeking injunctive relief or other restraint pending or
notified prohibiting or imposing materially adverse conditions upon the Transaction or the other
transactions contemplated by the Credit Documents or otherwise referred to herein or therein.

          6.08 Litigation. On the Initial Borrowing Date, there shall be no actions, suits, investigations or
proceedings pending or threatened (i) with respect to the Transaction, this Agreement or any other
Credit Document or (ii) which has had, or could reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect.

          6.09 Pledge Agreement. On the Initial Borrowing Date, each Credit Party shall have duly authorized, executed and
delivered the Pledge Agreement in the form of Exhibit G (as amended, modified or
supplemented from time to time, the (“Pledge Agreement”) and shall have delivered to the
Collateral Agent, as pledgee thereunder, all of the Pledge Agreement Collateral, if any, referred
to therein and then owned by such Credit Party, (x) endorsed in blank in the case of promissory
notes constituting Pledge Agreement Collateral and (y) together with executed and undated
endorsements for transfer in the case of Equity Interests constituting certificated Pledge

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Agreement Collateral, along with evidence that all other actions necessary or, in the reasonable
opinion of the Collateral Agent desirable, to perfect the security interests purported to be
created by the Pledge Agreement have been taken and the Pledge Agreement shall be in full force and
effect.

          6.10 Security Agreement. On the Initial Borrowing Date, each Credit Party shall have duly authorized, executed and
delivered the Security Agreement in the form of Exhibit H (as amended, modified or
supplemented from time to time, the “Security Agreement”) covering all of such Credit
Party’s Security Agreement Collateral, together with:

     (i) proper financing statements (Form UCC-1 or the equivalent) fully authorized for
filing under the UCC or other appropriate filing offices of each jurisdiction as may be
necessary or, in the reasonable opinion of the Collateral Agent desirable, to perfect the
security interests purported to be created by the Security Agreement;

     (ii) certified copies of requests for information or copies (Form UCC-11), or
equivalent reports as of a recent date, listing all effective financing statements that name
Holdings or any of its Subsidiaries as debtor and that are filed in the jurisdictions
referred to in clause (i) above, together with copies of such other financing statements
that name Holdings or any of its Subsidiaries as debtor (none of which shall cover any of
the Collateral except (x) to the extent evidencing Permitted Liens or (y) those in respect
of which the Collateral Agent shall have received termination statements (Form UCC-3) or
such other termination statements as shall be required by local law fully executed for
filing);

     (iii) evidence of the completion of all other recordings and filings of, or with
respect to, the Security Agreement as may be necessary or, in the reasonable opinion of the
Collateral Agent desirable, to perfect the security interests intended to be created by the
Security Agreement; and

     (iv) evidence that all other actions necessary or, in the reasonable opinion of the
Collateral Agent desirable to perfect and protect the security interests purported to be
created by the Security Agreement have been taken, and the Security Agreement shall be in
full force and effect.

          6.11 Subsidiaries Guaranty. On the Initial Borrowing Date, each Subsidiary Guarantor shall have duly authorized, executed
and delivered the Subsidiaries Guaranty in the form of Exhibit I (as amended, modified or
supplemented from time to time, the “Subsidiaries Guaranty”), and the Subsidiaries Guaranty
shall be in full force and effect.

          6.12 Financial Statements; Pro Forma Financials; Projections; etc. On or prior to the Initial Borrowing Date, the Administrative Agent shall have received true
and correct copies of the historical financial statements, the pro forma financial statements and
the Projections referred to in Sections 8.05(a) and (d).

          6.13 Solvency Certificate; Insurance Certificates. On the Initial Borrowing Date, the Administrative Agent shall have received:

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     (i) a solvency certificate from the chief financial officer of Holdings in the form of
Exhibit J hereto; and

     (ii) certificates of insurance complying with the requirements of Section 9.03
for the business and properties of the Holdings and its Subsidiaries, in form and substance
reasonably satisfactory to the Administrative Agent and naming the Collateral Agent as an
additional insured and/or as loss payee.

          6.14 Fees, etc. On the Initial Borrowing Date, the Borrower shall have paid to (i) each Lender with an Initial
Term Loan Commitment on the Initial Borrowing Date an initial yield payment equal to 1.00% of its
Initial Term Loan Commitment in effect on such date (immediately before giving effect to the
termination thereof pursuant to Section 4.03(b)) and (ii) the Administrative Agent all
costs, fees and expenses (including, without limitation, reasonable legal fees and expenses) and
other compensation contemplated hereby payable to the Administrative Agent to the extent then due.

          6.15 Public Debt Ratings. On or prior to the Initial Borrowing Date, the Borrower shall have obtained (i) debt ratings (of
any level) from S&P and Moody’s in respect of each Tranche of Loans existing on the Initial
Borrowing Date and (ii) corporate credit and corporate family ratings (of any level) from S&P and
Moody’s, each of which ratings shall be in effect on the Initial Borrowing Date.

          6.16 PATRIOT Act. On or prior to the Initial Borrowing Date, the Administrative Agent and the Lenders shall have
received all documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and regulations, including the
PATRIOT Act, in each case to the extent requested in writing at least five Business Days prior to
the Initial Borrowing Date.

          SECTION 7. Conditions Precedent to All Credit Events. The obligation of each Lender to make Loans (including Loans made on the Initial Borrowing
Date), and the obligation of each Issuing Lender to issue Letters of Credit (including Letters of
Credit issued on the Initial Borrowing Date), are subject, at the time of each such Credit Event
(except as hereinafter indicated), to the satisfaction of the following conditions:

          7.01 No Default; Representations and Warranties. At the time of each such Credit Event and also after giving effect thereto (i) there shall exist
no Default or Event of Default and (ii) all representations and warranties contained herein and in
the other Credit Documents shall be true and correct in all material respects with the same effect
as though such representations and warranties had been made on the date of such Credit Event (it
being understood and agreed that (x) any representation and warranty that is qualified by
materiality or Material Adverse Effect shall be required to be true and correct in all respects and
(y) any representation or warranty which by its terms is made as of a specified date shall be
required to be true and correct in all material respects (or all respects, as the case may be) only
as of such specified date).

          7.02 Notice of Borrowing; Letter of Credit Request. (a) Prior to the making of each Loan (other than a Swingline Loan or Revolving Loan made
pursuant to a Mandatory

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Borrowing), the Administrative Agent shall have received a Notice of
Borrowing meeting the requirements of Section 2.03(a). Prior to the making of each
Swingline Loan, the Swingline Lender shall have received the notice referred to in Section
2.03(b)(i).

          (b) Prior to the issuance of each Letter of Credit (other than the Existing Letters of
Credit), the Administrative Agent and the respective Issuing Lender shall have received a Letter of
Credit Request meeting the requirements of Section 3.03(a).

          The acceptance of the benefits of each Credit Event shall constitute a representation and
warranty by Holdings and the Borrower to the Administrative Agent and each of the Lenders that all
the conditions specified in Section 6 (with respect to Credit Events on the Initial
Borrowing Date) and in this Section 7 (with respect to Credit Events on or after the
Initial Borrowing Date) and applicable to such Credit Event are satisfied as of that time. All of
the Notes, certificates, legal opinions and other documents and papers referred to in Section
6 and in this Section 7 unless otherwise specified, shall be delivered to the
Administrative Agent at the Notice Office for the account of each of the Lenders and, except for
the Notes, in sufficient counterparts or copies for each of the Lenders and shall be in form and
substance reasonably satisfactory to the Administrative Agent.

          SECTION 8. Representations, Warranties and Agreements. In order to induce the Lenders to enter into this Agreement and to make the Loans, and issue (or
participate in) the Letters of Credit as provided herein, each of Holdings and the Borrower makes
the following representations, warranties and agreements, in each case after giving effect to the
Transaction, all of which shall survive the execution and delivery of this Agreement and the Notes
and the making of the Loans and the issuance of the Letters of Credit, with the occurrence of each
Credit Event on or after the Initial Borrowing Date being deemed to constitute a representation and
warranty that the matters specified in this Section 8 are true and correct in all material
respects on and as of the Initial Borrowing Date and on the date of each such other Credit Event
(it being understood and agreed that (x) any representation and warranty that is qualified by
materiality or Material Adverse Effect shall be required to be true and correct in all respects and
(y) any representation or warranty which by its terms is made as of a specified date shall be
required to be true and correct in all material respects (or all respects, as the case may be) only
as of such specified date).

          8.01 Organizational Status. Each of Holdings and each of its Subsidiaries (i) is a duly organized and validly existing
corporation, partnership or limited liability company, as the case may be, in good standing under
the laws of the jurisdiction of its organization, (ii) has the corporate, partnership or limited
liability company power and authority, as the case may be, to own its property and assets and to
transact the business in which it is engaged and presently proposes to engage, and (iii) is duly
qualified and is authorized to do business and is in good standing in each jurisdiction where the
ownership, leasing or operation of its property or the conduct of its business requires such
qualifications, except (x) in the case of preceding clauses (i) and (ii), for Immaterial
Subsidiaries, and (y) in the case of preceding clause (iii), for failures to be so qualified or
authorized which, either individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect.

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          8.02 Power and Authority. Each Credit Party has the corporate, partnership or limited liability company power and
authority, as the case may be, to execute, deliver and perform the terms and provisions of each of
the Credit Documents to which it is a party and has taken all necessary corporate, partnership or
limited liability company action, as the case may be, to authorize the execution, delivery and
performance by it of each of such Credit Documents. Each Credit Party has duly executed and
delivered each of the Credit Documents to which it is party, and each of such Credit Documents
constitutes its legal, valid and binding obligation enforceable in accordance with its terms,
except to the extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights
and by equitable principles (regardless of whether enforcement is sought in equity or at law).

          8.03 No Violation. Neither the execution, delivery or performance by any Credit Party of the Credit Documents
to which it is a party, nor compliance by it with the terms and provisions thereof, (i) will
contravene in any material respect any provision of any law, statute, rule or regulation or any
order, writ, injunction or decree of any court or governmental instrumentality, (ii) will conflict
with or result in any breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the obligation to create
or impose) any Lien (except pursuant to the Security Documents) upon any of the property or assets
of any Credit Party or any of its Subsidiaries pursuant to the terms of any indenture, mortgage,
deed of trust, credit agreement or loan agreement, or any other material agreement, contract or
instrument, in each case to which any Credit Party or any of its Subsidiaries is a party or by
which it or any its property or assets is bound or to which it may be subject, or (iii) will
violate any provision of the certificate or articles of incorporation, certificate of formation,
limited liability company agreement, partnership agreement or by-laws (or equivalent organizational
documents), as applicable, of any Credit Party or any of its Subsidiaries.

          8.04 Approvals. No order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by, any governmental or public body or authority, or any
subdivision thereof, is required to be obtained or made by, or on behalf of, any Credit Party to
authorize, or is required to be obtained or made by, or on behalf of, any Credit Party in
connection with, (i) the execution, delivery and performance of any Credit Document or (ii) the
legality, validity, binding effect or enforceability of any such Credit Document (except (in each
case) for (x) those that have otherwise been obtained or made and (y) filings which are necessary
to perfect the security interests created under the Security Documents, which filings, in the case
of security interests created on the Initial Borrowing Date, will be made within ten days following
the Initial Borrowing Date).

          8.05 Financial Statements; Financial Condition; Undisclosed Liabilities; Holdings’
Projections. (a) (i) The consolidated balance sheets of Holdings and its Subsidiaries for Holdings’ fiscal
years ended on December 31, 2009 and December 31, 2010, respectively, and (in each case) the
related consolidated statements of income, cash flows and shareholders’ equity (or deficit, as the
case may be) of Holdings and its Subsidiaries for such fiscal years ended on such dates, copies of
which have been furnished to the Lenders prior to the Initial Borrowing Date, present fairly in all
material respects the consolidated financial position of Holdings and its Subsidiaries at the dates
of such balance sheets and the consolidated results of the operations of

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Holdings and its
Subsidiaries for the periods covered thereby. All of the foregoing historical financial statements
have been prepared in accordance with generally accepted accounting principles consistently
applied.

          (ii) The pro forma consolidated financial statements of Holdings and its
Subsidiaries at December 31, 2010 after giving effect to the Transaction and the financing
therefor, copies of which have been furnished to the Lenders prior to the Initial Borrowing Date,
present fairly in all material respects the pro forma consolidated financial
position of Holdings and its Subsidiaries as of December 31, 2010 and the pro forma
consolidated results of operations of Holdings and its Subsidiaries for the twelve-month period
ended on December 31, 2010. Such pro forma financial statements have been prepared
on a basis consistent with the historical financial statements set forth in clause (i) of this
Section 8.05(a).

          (b) On and as of the Initial Borrowing Date, and after giving effect to the Transaction and to
all Indebtedness (including the Loans) being incurred or assumed and Liens created by the Credit
Parties in connection therewith, (i) the sum of the assets, at a fair valuation, of the Borrower on
a stand-alone basis, of Holdings and its Subsidiaries taken as a whole and of the Borrower and its
Subsidiaries taken as a whole will exceed its or their respective debts, (ii) the Borrower on a
stand-alone basis, Holdings and its Subsidiaries taken as a whole and the Borrower and its
Subsidiaries taken as a whole has or have not incurred and does or do not intend to incur, and does
or do not believe that it or they will incur, debts beyond its or their respective ability to pay
such debts as such debts mature, and (iii) the Borrower on a stand-alone basis, Holdings and its
Subsidiaries taken as a whole and the Borrower and its Subsidiaries taken as a whole will have
sufficient capital with which to conduct their respective businesses. For purposes of this
Section 8.05(b), “debt” means any liability on a claim, and “claim” means (a) right to
payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured or
(b) right to an equitable remedy for breach of performance if such breach gives rise to a payment,
whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent,
matured, unmatured, disputed, undisputed, secured or unsecured. The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

          (c) Except (i) as fully disclosed in the financial statements referred to in Section
8.05(a) and (ii) for the Obligations, there were as of the Initial Borrowing Date no
liabilities or obligations with respect to Holdings or any of its Subsidiaries of any nature
whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) which,
either individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect. As of the Initial Borrowing Date and except for the Obligations, neither Holdings nor the
Borrower knows of no reasonable basis for the assertion against it or any of its Subsidiaries of
any liability or obligation of any nature whatsoever that is not fully disclosed in the financial
statements or referred to in Section 8.05(a) which, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

          (d) The Projections delivered to the Administrative Agent and the Lenders prior to the Initial
Borrowing Date represent estimates of the performance of the Borrower and

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its Subsidiaries for the
periods stated therein based upon assumptions which were believed by the Borrower in good faith to
be reasonable when made and continue to be reasonable as of the Initial Borrowing Date;
provided, however, that the foregoing is not a guarantee that such projections will
be achieved. The Projections are based upon estimates and assumptions stated therein, all of which
the Borrower believes in good faith to be reasonable and fair in light of current conditions and
current facts known to the Borrower and, as of the Initial Borrowing Date, reflect the Borrower’s
good faith and reasonable estimates of the future financial performance of the Borrower and its
Subsidiaries and of the other information projected therein for the periods set forth therein; it
being understood that the Projections are subject to significant risks and uncertainties, many of
which are beyond the Borrower’s control.

          (e) After giving effect to the Transaction (but for this purpose assuming that the Transaction
and the related financing had occurred prior to December 31, 2010), since December 31, 2010, there
has been no change in the condition (financial or otherwise), business, operations, assets or
liabilities of Holdings or any of its Subsidiaries that has had, or could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

          8.06 Litigation. There are no actions, suits or proceedings pending or, to the knowledge of Holdings and the
Borrower, threatened (i) with respect to the Transaction or any Credit Document or (ii) that could
reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.

          8.07 True and Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of Holdings or the Borrower
in writing to the Administrative Agent or any Lender (through the Administrative Agent) (including,
without limitation, all information contained in the Credit Documents) for purposes of or in
connection with this Agreement, the other Credit Documents or any transaction contemplated herein
or therein is, and all other such factual information (taken as a whole) hereafter furnished by or
on behalf of Holdings or the Borrower in writing to the Administrative Agent or any Lender is
(taken as a whole), true and accurate in all material respects and not
incomplete by omitting to state any fact necessary to make such information (taken as a whole) not
misleading in any material respect.

          8.08 Use of Proceeds; Margin Regulations. (a) All proceeds of the Initial Term Loans will be used by the Borrower to (i) finance the
Refinancing, (ii) finance the Existing Holdings Notes Redemption (including, without limitation,
the principal of, and premium and interest on, the outstanding Existing Holdings Notes to, but not
including, the Existing Holdings Notes Redemption Date and (iii) pay the fees and expenses incurred
in connection with the Transaction.

          (b) All proceeds of the Revolving Loans and the Swingline Loans will be used for the working
capital, capital expenditures and other general corporate purposes of Holdings and its
Subsidiaries; provided that (i) no proceeds of Revolving Loans or Swingline Loans may be
used to effect the Transaction or to pay any fees and expenses incurred in connection therewith and
(ii) no proceeds of Swingline Loans will be used to refinance then outstanding Swingline Loans.

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          (c) All proceeds of Incremental Term Loans will be used for the working capital, capital
expenditures and other general corporate purposes of Holdings and its Subsidiaries.

          (d) Neither the making of any Loan nor the use of the proceeds thereof nor the occurrence of
any other Credit Event will be used (a) for “buying” or “carrying” any Margin Stock (within the
meaning of Regulation U) for any purpose which violates or is inconsistent with Regulation U or (b)
for any purpose that will violate or be inconsistent with the provisions of Regulation T, U or X.
If requested by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and such Lender a statement to the foregoing effect in conformity with the
requirements of FR Form U-1 or FR Form G-3, as applicable, referred to in Regulation U.

          (e) At the time of each Credit Event, not more than 25% of the value of the assets of Holdings
and its Subsidiaries taken as a whole (including all Equity Interests of Holdings held in treasury)
will constitute Margin Stock.

          8.09 Tax Returns and Payments. Each of Holdings and each of its Subsidiaries has timely filed or caused to be timely filed with
the appropriate taxing authority all material tax returns (the “Returns”) required to be
filed by, or with respect to the income, properties or operations of, Holdings and/or any of its
Subsidiaries. The Returns accurately reflect in all material respects all liability for taxes of
Holdings and its Subsidiaries for the periods covered thereby. Each of Holdings and each of its
Subsidiaries has paid all taxes and assessments due and payable by it, other than those that are
immaterial and those that are being contested in good faith and adequately disclosed and fully
provided for on the financial statements of Holdings and its Subsidiaries in accordance with
generally accepted accounting principles. There is no action, suit, proceeding, investigation,
audit or claim now pending or, to the best knowledge of Holdings or any of its Subsidiaries,
threatened by any authority regarding any taxes relating to Holdings or any of its Subsidiaries
that, either
individually or in the aggregate, could reasonably be expected to result in a material liability to
Holdings and its Subsidiaries taken as a whole.

          8.10 Compliance with ERISA. (a) Schedule V sets forth, as of the Initial Borrowing Date, the name of each Plan and
Multiemployer Plan. Except to the extent that a breach of any of the following representations or
warranties in this clause (a), either individually or (to the extent any such breach has not been
satisfied and is outstanding) in the aggregate, could not reasonably be expected to have a Material
Adverse Effect: (i) each Plan is in compliance with its terms and with all applicable laws,
including, without limitation, ERISA and the Code; (ii) each Plan (and each related trust, if any)
that is intended to be qualified under Section 401(a) of the Code has received a determination
letter from the Internal Revenue Service, or has submitted or is within the remedial amendment
period for submitting an application for a determination letter with the Internal Revenue Service,
or is a prototype plan that has received an Internal Revenue Service opinion letter with respect to
the prototype plan document, to the effect that it meets the requirements of Sections 401(a) and
501(a) of the Code, and, to Holdings’ and the Borrower’s knowledge, no event has occurred and no
condition or circumstance has existed that has resulted, or would be likely to result, in the
revocation of any such determination or opinion, rejection of such an application or the failure to
issue such a favorable determination letter; (iii) no Reportable Event has occurred; (iv) no
Pension Plan has

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an Unfunded Current Liability; (v) no Pension Plan has failed to satisfy the
minimum funding standard within the meaning of, and no Pension Plan has applied for or received a
waiver of the minimum funding standard or an extension of any amortization period within the
meaning of, Section 412 of the Code or Section 302 or 304 of ERISA; (vi) no determination has been
received that any Pension Plan is, or is expected to be, considered an “at-risk” plan within the
meaning of Section 430 of the Code or Section 303 of ERISA; (vii) all contributions required to be
made with respect to a Pension Plan or Multiemployer Plan have been timely made; (viii) neither
Holdings nor any Subsidiary of Holdings nor any ERISA Affiliate has incurred (or, to Holdings’ and
the Borrower’s knowledge, reasonably expects to incur) any liability to or on account of a Pension
Plan pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, or 4069 of ERISA or Section
436(f), 4971 or 4975 of the Code; (ix) no proceedings have been instituted to terminate or appoint
a trustee to administer any Pension Plan; (x) no lien imposed under the Code or ERISA on the assets
of Holdings or any Subsidiary of Holdings or any ERISA Affiliate exists or is reasonably likely to
arise on account of any Pension Plan; (xi) no action, suit, proceeding, hearing, audit or
investigation with respect to the administration, operation or the investment of assets of any
Pension Plan (other than routine claims for benefits) is pending, or, to Holdings’ and the
Borrower’s knowledge, expected or threatened; (xiii) neither Holdings nor any Subsidiary of
Holdings nor any ERISA Affiliate has incurred (or, to Holdings’ and the Borrower’s knowledge,
reasonably expects to incur) any liability to or on account of a Multiemployer Plan pursuant to
Sections 4201, 4204 or 4212 of ERISA; (xiv) neither Holdings nor any Subsidiary of Holdings nor any
ERISA Affiliate has received any notice, and no Multiemployer Plan has received from Holdings, any
Subsidiary of Holdings or any ERISA Affiliate any notice, that a Multiemployer Plan is “insolvent”
or in “reorganization” (as such terms are defined in Title IV of ERISA) or in “endangered” or
“critical” status under Section 305 of ERISA; (xv) all amounts required by applicable law or by the
terms of any welfare benefit plan (as defined in Section 3(1) of ERISA) maintained by Holdings or
any of its Subsidiaries with respect to, or for the provision of, post-retirement health
benefits have been accrued in accordance with Statement of Financial Accounting Standards No. 106
and Holdings or any of its Subsidiaries may cease contributions to or terminate such plans without
incurring any material liability; and (xvi) each group health plan (as defined in Section
4980B(g)(2) of the Code) which covers or has covered employees or former employees of Holdings, any
Subsidiary of Holdings, or any ERISA Affiliate has at all times been operated in compliance with
the provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B of the Code.

          (b) Except to the extent that a breach of any of the following representations or warranties
in this clause (b), either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect: (i) each Foreign Pension Plan has been maintained in substantial
compliance with its terms and with the requirements of any and all applicable laws, statutes,
rules, regulations and orders and has been maintained, where required, in good standing with
applicable regulatory authorities; (ii) all contributions required to be made with respect to a
Foreign Pension Plan have been timely made; neither Holdings nor any of its Subsidiaries has
incurred any obligation in connection with the termination of, or withdrawal from, any Foreign
Pension Plan and (iii) the present value of the accrued benefit liabilities (whether or not vested)
under each Foreign Pension Plan, determined as of the end of Holdings’ most recently ended fiscal
year on the basis of actuarial assumptions used to fund such Foreign Pension Plan, did not exceed
the current value of the assets of such Foreign Pension Plan allocable to such benefit liabilities.

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          8.11 The Security Documents. (a) The provisions of the Security Agreement are effective to create in favor of the Collateral
Agent for the benefit of the Secured Creditors a legal, valid and enforceable security interest in
all right, title and interest of the respective Credit Parties in the Security Agreement Collateral
described therein, and, in the case of security interests created on the Initial Borrowing Date,
the Collateral Agent, for the benefit of the Secured Creditors, has (or within 10 days (or 30 days
in the case of filings to be made with the United States Copyright Office or 90 days in the case of
filings to be made with the United States Patent and Trademark Office) following the Initial
Borrowing Date will have) a fully perfected security interest in all right, title and interest in
all of the Security Agreement Collateral described therein, subject to no other Liens other than
Permitted Liens. The recordation of (x) the Grant of Security Interest in U.S. Patents, if
applicable, and (y) the Grant of Security Interest in U.S. Trademarks, if applicable, in the
respective form attached to the Security Agreement, in each case in the United States Patent and
Trademark Office, together with filings on Form UCC-1 made pursuant to the Security Agreement, will
create, as may be perfected by such filings and recordation, a perfected security interest in the
United States registered trademarks and patents (and applications therefor) covered by the Security
Agreement, and the recordation of the Grant of Security Interest in U.S. Copyrights, if applicable,
in the form attached to the Security Agreement with the United States Copyright Office, together
with filings on Form UCC-1 made pursuant to the Security Agreement, will create, as may be
perfected by such filings and recordation, a perfected security interest in the United States
registered copyrights (and applications therefor) covered by the Security Agreement.

          (b) The security interests created under the Pledge Agreement in favor of the Collateral
Agent, as Pledgee, for the benefit of the Secured Creditors, constitute perfected security
interests in the Pledge Agreement Collateral described in the Pledge Agreement, subject to no
security interests of any other Person, other than non-consensual Permitted Liens of the type
permitted under Section 10.01(i). No filings or recordings are required in order to
perfect (or maintain the perfection or priority of) the security interests created in the Pledge
Agreement Collateral under either Pledge Agreement other than with respect to that portion of the
Pledge Agreement Collateral constituting a “general intangible” under the UCC which is not also a
“certificated security” (as defined in the UCC as in effect with New York).

          8.12 Properties. All Real Property owned by Holdings or any of its Subsidiaries as of the Initial Borrowing Date,
and the nature of the interest therein, is set forth in Schedule IV. Each of Holdings and
each of its Subsidiaries has good and marketable title to all material properties owned by it, and
a valid leasehold interest in all property leased by it, including (in each case) all material
property reflected in the most recent historical balance sheets referred to in Section
8.05(a) (except (x) as sold or otherwise disposed of since the date of such balance sheet in
the ordinary course of business or as permitted by the terms of this Agreement and (y) in the case
of leasehold interests, to the extent that the failure to have a valid leasehold interest, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect), free and clear of all Liens, other than Permitted Liens.

          8.13 Capitalization. On the Initial Borrowing Date, the authorized capital stock of Holdings consists of (i)
100,000,000 shares of common stock, par value $.001 per share (the “Holdings Common
Stock”), and (ii) 5,000,000 shares of preferred stock, par value $0.001 per share, no shares
of which preferred stock are issued or outstanding. All outstanding shares of

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capital stock of
Holdings have been duly and validly issued and are fully paid and non-assessable. As of the
Initial Borrowing Date, Holdings does not have outstanding any capital stock or other securities
convertible into or exchangeable for its capital stock or any rights to subscribe for or to
purchase, or any options for the purchase of, or any agreement providing for the issuance
(contingent or otherwise) of, or any calls, commitments or claims of any character relating to, its
capital stock, except for options and warrants to purchase shares of Holdings common stock and/or
Qualified Preferred Stock which may be issued from time to time.

          8.14 Subsidiaries. Holdings has no Subsidiaries other than (i) those Subsidiaries listed on Schedule VI
(which Schedule identifies the direct owner of each such Subsidiary on the Initial Borrowing Date
and their percentage ownership interest therein) and (ii) new Subsidiaries created in compliance
with this Agreement.

          8.15 Compliance with Statutes, etc. Each of Holdings and each of its Subsidiaries is in compliance with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, all governmental bodies,
domestic or foreign, in respect of the conduct of its business and the ownership of its property
(including, without limitation, applicable statutes, regulations, orders and restrictions relating
to environmental standards and controls), except such noncompliances as could not, either
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

          8.16 Investment Company Act. Neither Holdings nor any of its Subsidiaries is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

          8.17 Environmental Matters. (a) Each of Holdings and each of its Subsidiaries is in compliance with all applicable
Environmental Laws and the requirements of any permits issued under such Environmental Laws. There
are no pending or, to the knowledge of Holdings and the Borrower, threatened Environmental Claims
against Holdings or any of its Subsidiaries or any Real Property owned, leased or operated by
Holdings or any of its Subsidiaries (including, to the knowledge of Holdings and the Borrower, any
such claim arising out of the ownership, lease or operation by Holdings or any of its Subsidiaries
of any Real Property formerly owned, leased or operated by Holdings or any of its Subsidiaries but
no longer owned, leased or operated by Holdings or any of its Subsidiaries). There are no facts,
circumstances, conditions or occurrences with respect to the business or operations of Holdings or
any of its Subsidiaries, or any Real Property owned, leased or operated by Holdings or any of its
Subsidiaries (including, to the knowledge of Holdings and the Borrower, any Real Property formerly
owned, leased or operated by Holdings or any of its Subsidiaries but no longer owned, leased or
operated by Holdings or any of its Subsidiaries) or, to the knowledge of Holdings and the Borrower,
any property adjoining or adjacent to any such Real Property that could be reasonably expected (i)
to form the basis of an Environmental Claim against Holdings or any of its Subsidiaries or any Real
Property owned, leased or operated by Holdings or any of its Subsidiaries or (ii) to cause any Real
Property owned, leased or operated by Holdings or any of its Subsidiaries to be subject to any
restrictions on the ownership, lease, occupancy or transferability of such Real Property by
Holdings or any of its Subsidiaries under any applicable Environmental Law.

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          (b) Hazardous Materials have not at any time been generated, used, treated or stored on, or
transported to or from, or Released on or from, any Real Property owned, leased or operated by
Holdings or any of its Subsidiaries or, to the knowledge of Holdings and the Borrower, any property
adjoining or adjacent to any Real Property, where such generation, use, treatment, storage,
transportation or Release has violated or could be reasonably expected to violate any applicable
Environmental Law or give rise to an Environmental Claim against Holdings or any of its
Subsidiaries.

          (c) Notwithstanding anything to the contrary in this Section 8.17, the representations
and warranties made in this Section 8.17 shall be untrue only if the effect of any or all
conditions, violations, claims, restrictions, failures and noncompliances of the types described
above could, either individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

          8.18 Labor Relations. Neither Holdings nor any of its Subsidiaries is engaged in any unfair labor practice that could
reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.
There is (i) no unfair labor practice complaint pending against Holdings or any of its
Subsidiaries or, to the knowledge of Holdings and the Borrower, threatened against any of them,
before the National Labor Relations Board, and no grievance or arbitration proceeding arising out
of or under any collective bargaining agreement is so pending against Holdings or any of its
Subsidiaries or, to the knowledge of Holdings and the Borrower, threatened against any of them,
(ii) no strike, labor dispute, slowdown or stoppage pending against Holdings or any of its
Subsidiaries or, to the knowledge of Holdings and the Borrower, threatened against Holdings or any
of its Subsidiaries, (iii) no union representation question exists with respect to the employees of
Holdings or any of its Subsidiaries, and (iv) no violation of the Fair Labor Standards Act or any
other applicable federal, state or foreign wage and hour laws, except (with respect to any matter
specified in clause (i), (ii), (iii) or (iv) above, either individually or in the aggregate) such
as could not reasonably be expected to have a Material Adverse Effect.

          8.19 Intellectual Property, etc. Except as, either individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, each of Holdings and each of its Subsidiaries owns or has the right to use
all the domestic and foreign patents, trademarks, domain names, service marks, trade names,
copyrights, inventions, trade secrets, proprietary information, know-how and other intellectual
property of any type, whether or not written (including, but not limited to, rights in computer
programs, databases and data collections) and formulas, or has rights with respect to the foregoing
(collectively “Intellectual Property”) necessary for the present conduct of its business,
without any known conflict with the rights of others. The conduct of the business of Holdings and
its Subsidiaries does not infringe the intellectual property rights of others, except for such
infringements which, either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

          8.20 Indebtedness. Schedule VII sets forth a true and complete list of all Indebtedness of Holdings and its
Subsidiaries as of the Initial Borrowing Date (excluding the Obligations, the “Existing
Indebtedness”) and which is to remain outstanding after giving effect to the Transaction, in
each case showing the aggregate principal amount thereof and the name of

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the respective borrower
and any Credit Party or any of its Subsidiaries which directly or indirectly guarantees such debt.

          8.21 Insurance. Schedule VIII sets forth a true and complete listing of all insurance maintained by
Holdings and its Subsidiaries as of the Initial Borrowing Date, with the amounts insured (and any
deductibles) set forth therein.

          8.22 Legal Names; Type of Organization (and Whether a Registered Organization);
Jurisdiction of Organization; etc. Schedule IX sets forth, as of the Initial Borrowing Date, the legal name of each
Credit Party, the type of organization of each Credit Party, whether or not each Credit Party is a
registered organization (within the meaning of the New York UCC), the jurisdiction of organization
of each Credit Party, the location (within the meaning of the New York UCC) of each Credit Party,
and the organizational identification number (if any) of each of Credit Party.

          SECTION 9. Affirmative Covenants. Each of Holdings and the Borrower hereby covenants and agrees that on and after the Effective
Date and until the Total Commitment and all Letters of Credit have terminated and the Loans, Notes
and Unpaid Drawings (in each case together with interest thereon), Fees and all other Obligations
(other than indemnities described in Section 13.13 which are not then due and payable)
incurred hereunder and thereunder, are paid in full:

          9.01 Information Covenants. Holdings will furnish to each Lender:

          (a) Quarterly Financial Statements. Within 45 days after the close of each of the first three quarterly accounting periods in each
fiscal year of Holdings (commencing with its fiscal quarter ended on March 31, 2011), (i) the
consolidated balance sheet of Holdings and its Subsidiaries at the end of such quarterly accounting
period and the related consolidated statements of income and retained earnings (or accumulated
deficit, as the case may be) and statement of cash flows for such quarterly accounting period and
for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting
period, in each case setting forth comparative figures for the corresponding quarterly accounting
period in the prior fiscal year and comparable budgeted figures for such quarterly accounting
period as set forth in the respective budget delivered pursuant to Section 9.01(d), all of
which shall be certified by an Authorized Financial Officer of Holdings that they fairly present in
all material respects in accordance with generally accepted accounting principles the financial
condition of Holdings and its Subsidiaries as of the dates indicated and the results of their
operations for the periods indicated, subject to normal year-end audit adjustments and the absence
of footnotes (it being understood and agreed that the filing of Holdings’ Report on Form 10-Q with
the Securities and Exchange Commission or any successor thereto (the “SEC”) within the time
period otherwise required above in this Section 9.01(a) (to the extent containing the
information required above in this clause (i)) shall satisfy the financial statement delivery
requirements under this clause (i)), and (ii) management’s discussion and analysis of the important
operational and financial developments during such quarterly accounting period (it being understood
and agreed that any such management’s discussion and analysis set forth in Holdings’ Form 10-Q
filed with the SEC for the respective quarterly accounting period shall satisfy the requirements of
this clause (ii).

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          (b) Annual Financial Statements. Within 90 days after the close of each fiscal year of Holdings, (i) the consolidated balance
sheet of Holdings and its Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income and retained earnings (or accumulated deficit, as the case may
be) and statement of cash flows for such fiscal year setting forth comparative figures for the
preceding fiscal year and certified by PricewaterhouseCoopers LLP or other independent certified
public accountants of recognized national standing, together with a report of such accounting firm
(which report shall be without a “going concern” or like qualification or exception and without any
qualification or exception as to scope of audit) stating that (unless it is such accounting firm’s
policy not to issue such statements) in the course of its regular audit of the financial statements
of Holdings and its Subsidiaries, which audit was conducted in accordance with generally accepted
auditing standards, such accounting firm obtained no knowledge of any Event of Default under
Section 10.07 which has occurred and is continuing or, if in the opinion of such
accounting firm such an Event of Default has occurred and is continuing, a statement as to the
nature thereof (it being understood and agreed that the filing of Holdings’ Report on Form 10-K
with the SEC within the time period otherwise required above in this Section 9.01(b) (to
the extent containing the information required above in this clause (i)) shall satisfy the
financial statement delivery requirements under this clause (i)), and (ii) management’s discussion
and analysis of the important operational and financial developments during such fiscal year (it
being understood and agreed that any such management’s discussion and analysis set forth in
Holdings’ Form 10-K filed with the SEC for the respective fiscal year shall satisfy the
requirements of this clause (ii).

          (c) Management Letters. Promptly after Holdings’ or any of its Subsidiaries’ receipt thereof, a copy of any
“management letter” received from its certified public accountants and management’s response
thereto.

          (d) Budgets. No later than 60 days following the first day of each fiscal year of Holdings, a budget in
form reasonably satisfactory to the Administrative Agent (including budgeted statements of income,
sources and uses of cash and balance sheets for Holdings and its Subsidiaries on a consolidated
basis) for each of the twelve months of such fiscal year prepared in detail setting forth, with
appropriate discussion, the principal assumptions upon which such budget is based.

          (e) Officer’s Certificates. At the time of the delivery of the financial statements provided for in Sections
9.01(a) and (b), a compliance certificate from an Authorized Financial Officer of
Holdings in the form of Exhibit K certifying on behalf of Holdings that, to such officer’s
knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if
any Default or Event of Default has occurred and is continuing, specifying the nature and extent
thereof, which certificate shall (i) set forth in reasonable detail the calculations required to
establish (x) whether Holdings and its Subsidiaries were in compliance with the provisions of
Sections 10.01(x), 10.01(xvi), 10.02(iv), 10.03(iii),
10.03(v), 10.03(vi), 10.03(vii), 10.03(viii), 10.04(iii),
10.04(v), 10.04(x), 10.05(vii) (in respect of Intercompany Loans
outstanding to Non-Guarantor Subsidiaries of the Borrower and to the Captive Insurance Company),
10.05(viii) (in respect of cash capital contributions to Non-Guarantor Subsidiaries of the
Borrower and to the Captive
Insurance Company, in each case to be made by a Credit Party), 10.05(xiii),
10.05(xiv), 10.05(xv), 10.07, 10.08(i) and 10.13 at the end
of such fiscal quarter or year, as the case may be, and (y) the Secured Leverage Ratio at the end
of such fiscal quarter or

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year, as the case may be, (ii) if delivered with the financial statements
required by Section 9.01(b), set forth in reasonable detail the amount of (and the
calculations required to establish the amount of) (x) Excess Cash Flow for the respective Excess
Cash Flow Payment Period as well as the Applicable Excess Cash Flow Repayment Percentage and (y)
the Cumulative Retained Excess Cash Flow Amount as of the Excess Cash Flow Payment Date in respect
of the respective Excess Cash Flow Payment Period, and (iii) certify that there have been no
changes to Annexes B through G, inclusive, of the Security Agreement and Annexes A through F of the
Pledge Agreement, in each case since the Initial Borrowing Date or, if later, since the date of the
most recent certificate delivered pursuant to this Section 9.01(e), or if there have been
any such changes, a list in reasonable detail of such changes (but, in each case with respect to
this clause (iii), only to the extent that such changes are required to be reported to the
Collateral Agent pursuant to the terms of such Security Documents).

          (f) Notice of Default, Litigation and Material Adverse Effect. Promptly, and in any event within three Business Days after any Responsible Officer of
Holdings or the Borrower obtains knowledge thereof, notice of (i) the occurrence of any event which
constitutes a Default or an Event of Default, (ii) any litigation or governmental investigation
(including, without limitation, by the New York Insurance Department) or proceeding pending against
Holdings or any of its Subsidiaries (x) which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect or (y) with respect to any Credit
Document, or (iii) any other event, change or circumstance that has had, or could reasonably be
expected to have, a Material Adverse Effect.

          (g) Environmental Matters. Promptly after any Responsible Officer of Holdings or the Borrower obtains knowledge
thereof, notice of one or more of the following environmental matters to the extent that such
environmental matters, either individually or when aggregated with all other such environmental
matters, could reasonably be expected to have a Material Adverse Effect:

     (i) any pending or threatened Environmental Claim against Holdings or any of its
Subsidiaries or any Real Property owned, leased or operated by Holdings or any of its
Subsidiaries;

     (ii) any condition or occurrence on or arising from any Real Property owned, leased or
operated by Holdings or any of its Subsidiaries that (a) results in noncompliance by
Holdings or any of its Subsidiaries with any applicable Environmental Law or (b) could
reasonably be expected to form the basis of an Environmental Claim against Holdings or any
of its Subsidiaries or any such Real Property;

     (iii) any condition or occurrence on any Real Property owned, leased or operated by
Holdings or any of its Subsidiaries that could reasonably be expected to cause such Real
Property to be subject to any restrictions on the ownership, lease,
occupancy, use or transferability by Holdings or any of its Subsidiaries of such Real
Property under any Environmental Law; and

     (iv) the taking of any removal or remedial action in response to the actual or alleged
presence of any Hazardous Material on any Real Property owned, leased or

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operated by
Holdings or any of its Subsidiaries as required by any Environmental Law or any governmental
or other administrative agency; provided that in any event Holdings shall deliver to
each Lender all notices received by Holdings or any of its Subsidiaries from any government
or governmental agency under, or pursuant to, CERCLA which identify Holdings or any of its
Subsidiaries as potentially responsible parties for remediation costs or which otherwise
notify Holdings or any of its Subsidiaries of potential liability under CERCLA.

All such notices shall describe in reasonable detail the nature of the claim, investigation,
condition, occurrence or removal or remedial action and Holdings’ or such Subsidiary’s response
thereto.

          (h) Patriot Act. Promptly following the Administrative Agent’s or any Lender’s request therefor, all
documentation and other information that the Administrative Agent or such Lender (through the
Administrative Agent) reasonably requests in order to comply with its ongoing obligations under the
applicable “know your customer” and anti-money laundering rules and regulations, including the
Patriot Act.

          (i) Other Information. From time to time, such other information or documents (financial or otherwise) with
respect to Holdings or any of its Subsidiaries as the Administrative Agent or any Lender (through
the Administrative Agent) may reasonably request.

          9.02 Books, Records and Inspections; Annual Meetings. (a) Holdings will, and will cause each of its Subsidiaries to, keep proper books of record and
accounts in which full, true and correct entries in all material respects in conformity in all
material respects with (and to the extent required by) generally accepted accounting principles and
all applicable requirements of law shall be made in relation to its business and activities.
Holdings will, and will cause each of its Subsidiaries to, permit, upon reasonable notice to
Holdings, officers and designated representatives of the Administrative Agent or the Required
Lenders to visit and inspect, under guidance of officers of Holdings or such Subsidiary, any of the
properties of Holdings or such Subsidiary, and to examine the books of account of Holdings or such
Subsidiary and discuss the affairs, finances and accounts of Holdings or such Subsidiary with, and
be advised as to the same by, its and their officers and independent accountants, all upon
reasonable prior notice and at such reasonable times and intervals and to such reasonable extent as
the Administrative Agent or the Required Lenders may reasonably request; provided that only one
such inspection may be conducted in any fiscal year of Holdings unless an Event of Default is in
existence.

          (b) At a date to be mutually agreed upon between the Administrative Agent and the Borrower
occurring on or prior to the 150th day after the close of each fiscal year of the Borrower
(commencing with Borrower’s fiscal year ending December 31, 2011), the Borrower will, at the
request of the Administrative Agent, hold a meeting with all of the Lenders at which meeting will
be reviewed the financial results of Holdings and its Subsidiaries for the previous fiscal year and
the budgets presented for the current fiscal year of the Borrower.

          9.03 Maintenance of Property; Insurance. (a) Holdings will, and will cause each of its Subsidiaries to, (i) keep, in all material
respects, all material property necessary to the

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business of Holdings and its Subsidiaries in good
working order and condition, ordinary wear and tear excepted, (ii) maintain with financially sound
and reputable third party insurance companies insurance (except to the extent of any
self-insurance reasonable and customary for similarly situated Persons engaged in the same or
similar businesses as Holdings and its Subsidiaries) on all such property and against all such
risks as is consistent and in accordance with industry practice for companies similarly situated
owning similar properties and engaged in similar businesses as Holdings and its Subsidiaries, and
(iii) furnish to the Administrative Agent, upon its written request therefor, full information as
to the insurance carried. The provisions of this Section 9.03 shall be deemed supplemental
to, but not duplicative of, the provisions of any Security Documents that require the maintenance
of insurance.

          (b) Holdings will, and will cause each of its Subsidiaries to, at all times keep its property
constituting Collateral insured in favor of the Collateral Agent as loss payee and/or additional
insured, as applicable, and all policies or certificates (or certified copies thereof) with respect
to such insurance (and any other insurance maintained by Holdings and/or such Subsidiaries) (i)
shall be endorsed to the Collateral Agent’s satisfaction for the benefit of the Collateral Agent
(including, without limitation, by naming the Collateral Agent as loss payee and/or additional
insured, as applicable), (ii) shall state that such insurance policies shall not be canceled
without at least 30 days’ prior written notice thereof by the respective insurer to the Collateral
Agent (unless it is such insurer’s policy not to provide such a statement) and (iii) shall be
deposited with the Collateral Agent.

          (c) If Holdings or any of its Subsidiaries shall fail to maintain insurance in accordance with
this Section 9.03, or if Holdings or any of its Subsidiaries shall fail to so endorse and
deposit all policies or certificates with respect thereto, the Administrative Agent shall have the
right (but shall be under no obligation), on or after the date that is 20 days after Holdings or
the Borrower has received written notice from the Administrative Agent of its intention to do so,
to procure such insurance and the Borrower agrees to reimburse the Administrative Agent for all
reasonable costs and expenses of procuring such insurance.

          9.04 Existence; Franchises. Holdings will, and will cause each of its Subsidiaries to, take or cause to be taken, (A) all
actions necessary to preserve and keep in full force and effect its existence and (B) all
reasonable actions necessary to maintain its material franchises, privileges, copyrights,
trademarks and patents; provided, however, that nothing in this Section
9.04 shall (i) prevent (x) sales of assets
and other transactions by Holdings or any of its Subsidiaries in accordance with Section
10.02, or (y) the withdrawal by Holdings or any of its Subsidiaries of its qualification as a
foreign corporation, partnership or limited liability company, as the case may be, in any
jurisdiction if such withdrawal could not, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect or (ii) require Holdings or any of its Subsidiaries to
preserve or keep in full force and effect any franchises, privileges, copyrights, trademarks or
patents if Holdings or such Subsidiary shall determine that the preservation or continued
effectiveness thereof is no longer desirable in the conduct of the business of Holdings or such
Subsidiary and that the loss thereof, either individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

          9.05 Compliance with Statutes, etc. Holdings will, and will cause each of its Subsidiaries to, comply with all applicable
statutes, regulations and orders of, and all applicable

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restrictions imposed by, all governmental
bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its
property, except such noncompliances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          9.06 Compliance with Environmental Laws. (a) Holdings will comply, and will cause each of its Subsidiaries to comply, with all
Environmental Laws and permits applicable to, or required by, the ownership, lease or use of its
Real Property now or hereafter owned, leased or operated by Holdings or any of its Subsidiaries,
except such noncompliances as could not, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, and will promptly pay or cause to be paid all costs and
expenses incurred in connection with such compliance. Neither Holdings nor any of its Subsidiaries
will generate, use, treat, store, Release or dispose of, or permit the generation, use, treatment,
storage, Release or disposal of Hazardous Materials on any Real Property now or hereafter owned,
leased or operated by Holdings or any of its Subsidiaries, or transport or permit the
transportation of Hazardous Materials to or from any such Real Property, except for Hazardous
Materials generated, used, treated, stored, Released or disposed of at any such Real Properties in
compliance in all material respects with all applicable Environmental Laws.

          (b) (i) After the receipt by the Administrative Agent or any Lender of any notice of the type
described in Section 9.01(g), (ii) at any time that Holdings or any of its Subsidiaries are
not in compliance with Section 9.06(a) or (iii) in the event that the Administrative Agent
or the Lenders have exercised any of the remedies pursuant to the last paragraph of Section
11, Holdings and the Borrower will (in each case) provide, at the sole expense of Holdings and
the Borrower and at the request of the Administrative Agent, an environmental site assessment
report concerning any Mortgaged Property, prepared by an environmental consulting firm reasonably
approved by the Administrative Agent, indicating the presence or absence of Hazardous Materials and
the potential cost of any removal or remedial action in connection with such Hazardous Materials on
such Mortgaged Property. If Holdings or the Borrower fails to provide the same within 30 days
after such request was made, the Administrative Agent may order the same, the cost of which shall
be borne by Holdings and the
Borrower, and Holdings and the Borrower shall grant and hereby grant to the Administrative
Agent and the Lenders and their respective agents access to such Mortgaged Property and
specifically grant the Administrative Agent and the Lenders an irrevocable non-exclusive license,
subject to the rights of tenants, to undertake such an assessment at any reasonable time upon
reasonable notice to Holdings or the Borrower, all at the sole expense of the Borrower.

          9.07 ERISA. As soon as possible and, in any event, within fifteen (15) Business Days after Holdings, any
Subsidiary of Holdings or any ERISA Affiliate knows of the occurrence of any of the following, to
the extent that same, either individually or (to the extent such occurrence is ongoing and has not
been satisfied) in the aggregate, could reasonably be expected to have a Material Adverse Effect,
Holdings will deliver to each of the Lenders a certificate of an Authorized Financial Officer of
Holdings setting forth the full details as to such occurrence and the action, if any, that
Holdings, such Subsidiary or such ERISA Affiliate is required or proposes to take, together with
any notices required or proposed to be given or filed by Holdings, such Subsidiary, the Plan
administrator or such ERISA Affiliate to or with the PBGC or any other governmental agency and any
notices received by Holdings, such Subsidiary or such ERISA Affiliate from the PBGC or any other
government agency with respect thereto:

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(a) that a Reportable Event has occurred; that a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA of a Pension Plan is subject to
the advance reporting requirement of PBGC Regulation Section 4043.61 (without regard to
subparagraph (b)(1) thereof), and an event described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is reasonably expected to occur with respect to such Pension
Plan within the following 30 days; (b) that a Pension Plan has failed to satisfy the minimum
funding standard, within the meaning of Section 412 of the Code or Section 302 of ERISA; (c) that a
determination has been received that any Pension Plan is, or is expected to be, considered an
“at-risk” plan within the meaning of Section 430 of the Code or Section 303 of ERISA; (d) that a
Pension Plan has an Unfunded Current Liability; (e) that proceedings have been or are reasonably
expected to be instituted to terminate or appoint a trustee to administer a Pension Plan; (f) that
a proceeding has been instituted pursuant to Section 515 of ERISA to collect a delinquent
contribution to a Pension Plan; (g) that any contribution required to be made with respect to a
Pension Plan, a Multiemployer Plan or a Foreign Pension Plan has not been timely made; (h) that
notice has been received that a Multiemployer Plan has been “terminated”, or is in “reorganization”
or “insolvent” (all within the meaning of Title IV of ERISA) or is in “endangered” or “critical”
status (within the meaning of Section 305 of ERISA); or (i) that Holdings, any Subsidiary of
Holdings or any ERISA Affiliate will or is reasonably likely to incur (A) any liability with
respect to a Pension Plan under Sections 409, 502(i), 502(l), 4062, 4063, 4064 or 4069 of ERISA or
Sections 436(f), 4971, 4975 or 4980 of the Code; (B) any liability under Sections 4201, 4204 or
4212 of ERISA with respect to a Multiemployer Plan; (C) any liability with respect to a group
health plan (as defined in Section 4980B(g)(2) of the Code) under Section 4980B of the Code and/or
the Health Insurance Portability and Accountability Act of 1996; or (D) liability for
post-retirement health benefits under any welfare benefit plan (within the meaning of Section 3(1)
of ERISA). In addition, at the request of any Lender(s), within thirty (30) days following the
later of the date of the request or the date of filing or receipt (as applicable), Holdings will
deliver to the Administrative Agent for delivery to such Lenders (i) a complete copy of the most
recent annual report (on Internal Revenue Service Form 5500-series) of each Plan specified
(including, to the extent required, the related financial and actuarial
statements and opinions and other supporting statements, certifications, schedules and information)
required to be filed with the Internal Revenue Service and (ii) any material notices furnished or
received by Holdings, any Subsidiary of Holdings or any ERISA Affiliate to or from, as applicable,
either the plan administrator or an applicable governmental agency with respect to a Pension Plan,
Multiemployer Plan or Foreign Pension Plan.

          9.08 End of Fiscal Years; Fiscal Quarters. Holdings will cause (i) each of its fiscal years to end on December 31 of each year and (ii)
each of its fiscal quarters to end on March 31, June 30, September 30 and December 31, of each
fiscal year.

          9.09 Interest Rate Protection. No later than 120 days following the Initial Borrowing Date, the Borrower will enter into (and
thereafter maintain) Interest Rate Protection Agreements mutually acceptable to the Borrower and
the Administrative Agent, having a term of at least three years from the date of such Interest Rate
Protection Agreements, establishing a fixed or maximum interest rate for an aggregate notional
principal amount equal to at least 50% of the aggregate principal amount of all Initial Term Loans
then outstanding.

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          9.10 Payment of Taxes. Holdings will pay and discharge, and will cause each of its Subsidiaries to pay and discharge,
all material taxes, assessments and governmental charges or levies imposed upon it or upon its
income or profits or upon any properties belonging to it, in each case on a timely basis, and all
lawful claims which, if unpaid, might become a Lien or charge upon any properties of Holdings or
any of its Subsidiaries not otherwise permitted under Section 10.01(i); provided
that neither Holdings nor any of its Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim which is being contested in good faith and by proper proceedings
if it has maintained adequate reserves with respect thereto in accordance with generally accepted
accounting principles.

          9.11 Use of Proceeds. The Borrower will use the proceeds of the Loans only as provided in Section 8.08.

          9.12 Additional Security; Further Assurances; etc. (a) Holdings will, and will cause each of the other Credit Parties to, grant to the
Collateral Agent for the benefit of the Secured Creditors security interests in such assets and
properties (leased or owned) of the Borrower and the other Credit Parties as are not covered by the
original Security Documents and as may be reasonably requested from time to time by the
Administrative Agent but otherwise subject to any limitations set forth in the Security Documents
as to “excluded assets” (collectively, the “Additional Security Documents”). All such
security interests shall be granted pursuant to documentation reasonably satisfactory in form and
substance to the Administrative Agent and shall constitute valid and enforceable perfected security
interests superior to and prior to the rights of all third Persons and subject to no other
Liens except for Permitted Liens. The Additional Security Documents or instruments related thereto
shall be duly recorded or filed in such manner and in such places as are required by law to
establish, perfect, preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Additional Security Documents and all taxes, fees and other charges payable
in connection therewith shall be paid in full. Notwithstanding the foregoing, this Section
9.12(a) shall not apply to (and Holdings and its Subsidiaries shall not be required to grant a
Mortgage in) (x)(I) the Real Property at 151 East 86th Street, New York, NY 10028 and (II) any
owned Real Property the fair market value of which (as determined in good faith by the Borrower) is
less than $5,000,000 or (y) any Leasehold.

          (b) Holdings and the Borrower will, and the Borrower will cause each of the other Credit
Parties to, at the expense of Holdings and the Borrower, make, execute, endorse, acknowledge, file
and/or deliver to the Collateral Agent from time to time such schedules, financing statements,
transfer endorsements, powers of attorney and other assurances or instruments and take such further
steps relating to the Collateral covered by any of the Security Documents as the Collateral Agent
may reasonably require pursuant to this Section 9.12 to perfect (and maintain the
perfection and priority) of the security interests in the Collateral (but otherwise subject to any
limitations set forth in the Security Documents). With respect to any Mortgage, Holdings will
cause to be delivered to the Collateral Agent such opinions of counsel, title insurance, surveys,
and, if applicable, flood certifications as may be reasonably requested by the Collateral Agent to
assure itself that this Section 9.12 has been complied with.

          (c) Except as otherwise provided in clause (d) of this Section 9.12, Holdings and the
Borrower agree that each action required above by this Section 9.12 shall be completed

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as
soon as reasonably practicable, but in no event later than 30 days after such action is requested
to be taken by the Administrative Agent (as such date may be extended by the Administrative Agent
in its sole discretion).

          (d) Within 15 Business Days (as such date may be extended by the Administrative Agent in its
sole discretion) (i) after the establishment, creation or acquisition of a Wholly-Owned Domestic
Subsidiary, Holdings and the Borrower will cause such Wholly-Owned Domestic Subsidiary (x) to
execute and deliver to the Administrative Agent a Joinder Agreement and (y) to deliver to the
Administrative Agent such other relevant documentation of the type described in Section 6
as such Wholly-Owned Domestic Subsidiary would have had to deliver on the Initial Borrowing Date if
it were a Credit Party on such date to the extent requested by the Administrative Agent and (ii)
after any Credit Party acquires any additional Equity Interests of any Subsidiary, such Equity
Interests shall be pledged and delivered pursuant to (and to the extent required by) the Pledge
Agreement.

          (e) Within 90 days after the Initial Borrowing Date (as such date may be extended by the
Administrative Agent in its sole discretion), Holdings and the Borrower will cause the License
Subsidiary (x) to execute and deliver to the Administrative Agent a Joinder Agreement (with such
changes thereto as may be approved by the Administrative Agent in connection with any requirements
that may be imposed by the applicable governmental authority approving the License Subsidiary
entering into the Subsidiaries Guaranty, the Pledge Agreement and the Security Agreement pursuant
to the Joinder Agreement) and (y) to deliver to the Administrative Agent such other relevant
documentation of the type described in Section 6 as the
License Subsidiary would have had to deliver on the Initial Borrowing Date if it were a Credit
Party on such date to the extent requested by the Administrative Agent.

          9.13 Ownership of Subsidiaries; etc. Except as otherwise permitted by Sections 10.05(xiii), (xiv), (xv) and
(xviii) and the definition of “Permitted Acquisition”, Holdings will, and will
cause each of its Subsidiaries to, own 100% of the Equity Interests of each of their Subsidiaries
(other than, in the case of Foreign Subsidiaries, directors’ qualifying shares and other nominal
amounts held by local nationals, in each case to the extent required by applicable law).

          9.14 Maintenance of Ratings. The Borrower will use its commercially reasonable efforts to maintain at all times (i) monitored
public debt ratings (of any level) from S&P and Moody’s in respect of each Tranche of Loans and
(ii) a monitored public corporate rating and a monitored public corporate family rating (in each
case, of any level) from S&P and Moody’s.

          9.15 Permitted Acquisitions. Subject to the provisions of this Section 9.15 and the requirements contained in the
definition of Permitted Acquisition, the Borrower and the Subsidiary Guarantors may from time to
time effect Permitted Acquisitions, so long as (in each case except to the extent the Required
Lenders otherwise specifically agree in writing in the case of a specific Permitted Acquisition):
(i) no Default or Event of Default shall have occurred and be continuing at the time of the
consummation of the proposed Permitted Acquisition or immediately after giving effect thereto; (ii)
the Borrower shall have given to the Administrative Agent at least 10 Business Days’ (or such
shorter period of time as may be reasonably acceptable

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to the Administrative Agent) prior written
notice of any Permitted Acquisition, which notice shall describe in reasonable detail the principal
terms and conditions of such Permitted Acquisition; (iii) the Administrative Agent shall have
received (x) in the case of a proposed Permitted Acquisition in which the aggregate Maximum
Permitted Consideration is at least $25,000,000, audited year end financial statements for at least
the most recent fiscal year (for which such financial statements are available) and, to the extent
available, interim unaudited quarterly financial statements for the then current fiscal year of the
Acquired Entity or Business being acquired pursuant to such proposed Permitted Acquisition and (y)
in the case of each proposed Permitted Acquisition, a pro forma consolidated
balance sheet of Holdings and its Subsidiaries as of the last day of the most recently ended fiscal
quarter of Holdings and a pro forma consolidated statement of income of Holdings
and its Subsidiaries for the most recently ended four fiscal quarter period, in each case on a
Pro Forma Basis after giving effect to such proposed Permitted Acquisition;, (iv) Holdings
shall be in compliance with (x) the financial covenants contained in Section 10.07 and (y)
a Total Leverage Ratio of less than 4.75:1.00, in each case for the respective Calculation Period
on a Pro Forma Basis as if the respective Permitted Acquisition (as well as all other
Permitted Acquisitions theretofore consummated after the first day of such Calculation Period) had
occurred on the first day of such Calculation Period; (v) all representations and warranties
contained herein and in the other Credit Documents shall be true and correct in all material
respects with the same effect as though such representations and warranties had been made on and as
of the date of the respective
Permitted Acquisition (both before and after giving effect thereto) (it being understood that any
representation and warranty that is qualified by materiality or Material Adverse Effect shall be
required to be true and correct in all respects), unless stated to relate to a specific earlier
date, in which case such representations and warranties shall be true and correct in all material
respects (or all respects, or as the case may be) as of such earlier date; (vi) the Maximum
Permitted Consideration for the respective Permitted Acquisition, when added to the aggregate
Maximum Permitted Consideration paid for all other Permitted Acquisitions theretofore or then being
consummated, does not exceed the Permitted Acquisition Amount at such time; (vii) after giving
effect to such proposed Permitted Acquisition and the payment of all amounts (including fees and
expenses) owing in connection therewith, the sum of (I) the Total Unutilized Revolving Loan
Commitment plus (II) the aggregate amount of Unrestricted cash and Cash Equivalents of the Borrower
and the Subsidiary Guarantors shall equal or exceed the sum of (x) $15,000,000 plus (y) an amount
equal to the aggregate amount reasonably likely to be payable in respect of all post-closing
purchase price adjustments required or which will be required in connection with such Permitted
Acquisition (and all other Permitted Acquisitions for which such purchase price adjustments may be
required to be made) as determined by the Borrower in good faith; and (viii) the Borrower shall
have delivered to the Administrative Agent a certificate executed by an Authorized Financial
Officer thereof, certifying to the best of such officer’s knowledge, compliance with the
requirements of preceding clauses (i) through (vii), inclusive, and containing the calculations (in
reasonable detail) required by preceding clauses (iv), (vi) and (vii).

          9.16 Cash on Hand at the Captive Insurance Company and the License Subsidiary. (a) If at any time the Captive Insurance Company holds cash or Cash Equivalents in excess of
$2,000,000 in the aggregate for a period of more than five consecutive Business Days, the Borrower
will cause the Captive Insurance Company to immediately pay a cash Dividend up to the Borrower in
an amount equal to such excess.

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          (b) If at any time the License Subsidiary (to the extent that it is a Non-Guarantor
Subsidiary) holds cash or Cash Equivalents in excess of $500,000 in the aggregate for a period of
more than five consecutive Business Days, the Borrower will cause the License Subsidiary to
immediately pay a cash Dividend up to the Borrower in an amount equal to such excess.

          9.17 Contributions. Holdings will contribute as a common equity contribution to the capital of the Borrower upon
Holdings’ receipt thereof, any net cash proceeds received by Holdings from any asset sale, any
incurrence of Indebtedness, any Recovery Event, any issuance or sale of its equity, any cash
capital contributions or any tax refunds (other than any tax refunds that are repaid to the
Borrower pursuant to any tax sharing agreement with Holdings).

          9.18 Account Control Agreements. At all times from and after the 90th day after the Initial Borrowing Date during which
the Credit Parties collectively hold more than $10,000,000 of cash or Cash Equivalents in (or
credited to) Accounts (other than Accounts used exclusively for payroll obligations), Holdings
will, and will cause the other Credit Parties to, ensure that at least 75% of the aggregate cash
and Cash Equivalents of the Credit Parties are held in (or credited to) such Accounts over which an
Account Control Agreement is in full force and effect (it being understood and agreed,
however, that an Account Control Agreement shall not be required for any Deposit Account
that is used exclusively for payroll obligations).

          SECTION 10. Negative Covenants. Each of Holdings and the Borrower hereby covenants and agrees that on and after the
Effective Date and until the Total Commitment and all Letters of Credit have terminated and the
Loans, Notes and Unpaid Drawings (in each case, together with interest thereon), Fees and all other
Obligations (other than any indemnities described in Section 13.13 which are not then due
and payable) incurred hereunder and thereunder, are paid in full:

          10.01 Liens. Holdings will not, and will not permit any of its Subsidiaries to, create, incur, assume or
suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible
or intangible) of Holdings or any of its Subsidiaries, whether now owned or hereafter acquired, or
sell any such property or assets subject to an understanding or agreement, contingent or otherwise,
to repurchase such property or assets (including sales of accounts receivable with recourse to
Holdings or any of its Subsidiaries), or permit the filing of any financing statement under the UCC
or any other similar notice of Lien under any similar recording or notice statute; provided
that the provisions of this Section 10.01 shall not prevent the creation, incurrence,
assumption or existence of the following (Liens described below are herein referred to as
“Permitted Liens”):

     (i) Liens for taxes, assessments or governmental charges or levies which are not
overdue for a period of more than 30 days or Liens for taxes, assessments or governmental
charges or levies being contested in good faith and by appropriate proceedings for which
adequate reserves have been established in accordance with generally accepted accounting
principles;

     (ii) Liens in respect of property or assets of Holdings or any of its Subsidiaries
imposed by law, which were incurred in the ordinary course of business and do not

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secure
Indebtedness for borrowed money, such as carriers’, warehousemen’s, materialmen’s and
mechanics’ liens and other similar Liens arising in the ordinary course of business, and (x)
which do not in the aggregate materially detract from the value of Holdings’ or such
Subsidiary’s property or assets or materially impair the use thereof in the operation of the
business of Holdings or such Subsidiary or (y) which are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing the forfeiture or
sale of the property or assets subject to any such Lien;

     (iii) Liens in existence on the Initial Borrowing Date which are listed, and the
property subject thereto described, in Schedule X, but only to the respective date,
if any, set forth in such Schedule X for the removal, replacement and termination of
any such Liens, plus renewals, replacements and extensions of such Liens to the extent set
forth on such Schedule X, provided that (x) the aggregate principal amount of the
Indebtedness, if any, secured by such Liens does not increase from that amount outstanding
at the time of any such renewal, replacement or extension, plus accrued and unpaid interest
and cash fees and expenses (including premium) incurred in connection with such renewal,
replacement or extension and (y) any such renewal, replacement or extension does not
encumber any additional assets or properties of Holdings or any of its Subsidiaries;

     (iv) Liens created pursuant to the Security Documents;

     (v) licenses (including of Intellectual Property), sublicenses (including of
Intellectual Property), leases or subleases granted to other Persons not materially
interfering with the conduct of the business of Holdings and its Subsidiaries taken as a
whole;

     (vi) Liens upon assets of the Borrower or any of its Subsidiaries subject to
Capitalized Lease Obligations to the extent such Capitalized Lease Obligations are permitted
by Section 10.04(iii), provided that (x) such Liens only serve to secure the
payment of Indebtedness arising under such Capitalized Lease Obligation and (y) the Lien
encumbering the asset giving rise to the Capitalized Lease Obligation does not encumber any
asset of Holdings or any other asset of the Borrower or any Subsidiary of the Borrower;

     (vii) Liens placed upon equipment, machinery or fixed or capital assets acquired after
the Initial Borrowing Date and placed at the time of the acquisition thereof by the Borrower
or such Subsidiary or within 120 days thereafter to secure Indebtedness incurred to pay all
or a portion of the purchase price thereof or to secure Indebtedness incurred solely for the
purpose of financing the acquisition of any such equipment, machinery, fixed or capital
assets or extensions, renewals or replacements of any of the foregoing for the same or a
lesser amount, provided that (x) the Indebtedness secured by such Liens is permitted
by Section 10.04(iii) and (y) in all events, the Lien encumbering the equipment,
machinery or fixed or capital assets so acquired does not encumber any asset of Holdings or
any other asset of the Borrower or any Subsidiary of the Borrower;

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     (viii) easements, rights-of-way, restrictions, encroachments and other similar charges
or encumbrances, and minor title deficiencies, in each case not securing Indebtedness;

     (ix) Liens arising from precautionary UCC financing statement filings regarding
operating leases entered into in the ordinary course of business;

     (x) Liens arising out of the existence of judgments or awards not constituting an Event
of Default under Section 11.09;

     (xi) statutory and common law landlords’ liens under leases to which the Borrower or
any of its Subsidiaries is a party;

     (xii) Liens (other than Liens imposed under ERISA) incurred in the ordinary course of
business in connection with workers’ compensation claims, unemployment insurance and social
security benefits and Liens securing the performance of bids, tenders, leases and contracts
in the ordinary course of business, statutory obligations, surety bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business and
consistent with past practice (exclusive of appeal bonds and obligations in respect of the
payment for borrowed money);

     (xiii) Liens on property or assets acquired pursuant to a Permitted Acquisition, or on
property or assets of a Subsidiary of the Borrower in existence at the time such Subsidiary
is acquired pursuant to a Permitted Acquisition, provided that (x) any Indebtedness
that is secured by such Liens is permitted to exist under Section 10.04(v), and (y)
such Liens are not incurred in connection with, or in contemplation or anticipation of, such
Permitted Acquisition and do not attach to any asset of Holdings or any other asset of the
Borrower or any of its Subsidiaries;

     (xiv) Liens on property or assets acquired pursuant to a Permitted Acquisition or an
Investment (other than the Equity Interests of any Subsidiary of the Borrower) securing any
Seller Financing incurred by the Borrower or a Subsidiary thereof to finance (in whole or in
part) the respective Permitted Acquisition or Investment, provided that (x) such
Liens only serve to secure the Seller Financing incurred as part of such Permitted
Acquisition or Investment, (y) any Seller Financing that is secured by such Liens is
permitted to exist under Section 10.04(iii), and (z) such Liens do not attach to any
asset of Holdings or any other asset of the Borrower or any of its Subsidiaries;

     (xv) to the extent constituting a Lien, sale-leaseback transactions consummated
pursuant to Section 10.02(iv), provided that (x) such Liens only serve to secure the
obligations in respect of such sale-leaseback transaction and (y) the Lien encumbering such
asset does not encumber any asset of Holdings or any other asset of the Borrower or any
Subsidiary of the Borrower;

     (xvi) Liens not otherwise permitted pursuant to this Section 10.01 which secure
obligations of the Borrower or any of its Subsidiaries permitted under this Agreement not
exceeding $20,000,000 in the aggregate at any time outstanding.

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In connection with the granting of Liens of the type described in clauses (vi), (vii), (xiii) and
(xiv) of this Section 10.01 by the Borrower or any of its Subsidiaries, the Administrative
Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate by it in
connection therewith (including, without limitation, by executing appropriate lien releases or lien
subordination agreements in favor of the holder or holders of such Liens, in either case solely
with respect to the assets subject to such Liens).

          10.02 Consolidation, Merger, Purchase or Sale of Assets, etc. Holdings will not, and will not permit any of its Subsidiaries to, wind up, liquidate or
dissolve its affairs or enter into any partnership, joint venture, or transaction of merger or
consolidation, or convey, sell, lease or otherwise dispose of all or any part of its property or
assets, or enter into any sale-leaseback transactions, or purchase or otherwise acquire (in one or
a series of related transactions) any part of the property or assets (other than purchases or other
acquisitions of inventory, materials, equipment and Intellectual Property in the ordinary course of
business) of any Person (or agree to do any of the foregoing at any future time), except that:

     (i) Capital Expenditures by the Borrower and its Subsidiaries shall be permitted to the
extent not in violation of Section 10.13;

     (ii) each of the Borrower and its Subsidiaries may make sales of inventory in the
ordinary course of business;

     (iii) Investments may be made to the extent permitted by Section 10.05;

     (iv) the Borrower and its Subsidiaries may consummate the Swiss Clubs Sale and may sell
other assets (including Equity Interests of any Subsidiary but otherwise subject to the
proviso to this clause (iv) in the case of a Subsidiary Guarantor and the License
Subsidiary), so long as (v) no Default or Event of Default then exists or would result
therefrom, (w) each such sale is in an arm’s-length transaction and the Borrower or the
respective Subsidiary receives at least fair market value (as determined in good faith by
the Borrower or such Subsidiary, as the case may be), (x) the consideration received by the
Borrower or such Subsidiary consists of at least 75% cash or Cash Equivalents and is paid at
the time of the closing of such sale, (y) the Net Sale Proceeds therefrom are applied and/or
reinvested as (and to the extent) required by Section 5.02(d) and (z) the aggregate
amount of the proceeds received from all assets sold pursuant to this clause (iv) (exclusive
of any proceeds received from the Swiss Clubs Sale) shall not exceed $30,000,000 in any
fiscal year of Holdings, provided that the sale of the Equity Interests of any
Subsidiary Guarantor or the License Subsidiary shall not be permitted pursuant to this
clause (iv) unless such sale is for all of the outstanding Equity Interests of such
Subsidiary Guarantor;

     (v) each of the Borrower and its Subsidiaries may lease (as lessee) or license (as
licensee) real or personal property (so long as any such lease or license does not create a
Capitalized Lease Obligation except to the extent permitted by Section 10.04(iii));

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     (vi) each of the Borrower and its Subsidiaries may sell or discount, in each case
without recourse and in the ordinary course of business, accounts receivable arising in the
ordinary course of business, but only in connection with the compromise or collection
thereof and not as part of any financing transaction;

     (vii) each of the Borrower and its Subsidiaries may grant licenses, sublicenses, leases
or subleases to other Persons not materially interfering with the conduct of the business of
the Borrower and its Subsidiaries taken as a whole, in each case so long as no
such grant otherwise prohibits the Collateral Agent’s security interest in the asset or
property subject thereto;

     (viii) (A) any Subsidiary of the Borrower (other than the Captive Insurance Company)
may merge with and into, or be dissolved or liquidated into, the Borrower or any Subsidiary
Guarantor so long as (i) in the case of any such merger, dissolution or liquidation
involving the Borrower, the Borrower is the surviving Person of any such merger, dissolution
or liquidation, (ii) in all other cases, a Subsidiary Guarantor is the surviving Person of
any such merger, dissolution or liquidation, and (iii) in all cases, the security interests
granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the
Security Documents in the assets of such Subsidiary shall remain in full force and effect
and perfected (to at least the same extent as in effect immediately prior to such merger,
dissolution or liquidation), and (B) any Non-Guarantor Subsidiary (other than the Captive
Insurance Company and, to the extent that it is a Non-Guarantor Subsidiary, the License
Subsidiary) may merge with and into, or be dissolved or liquidated into, any other
Non-Guarantor Subsidiary;

     (ix) Permitted Acquisitions may be made to the extent permitted by Section
9.15;

     (x) the Borrower and its Subsidiaries may sell or exchange specific items of equipment
(including pursuant to trade up/trade in transactions), so long as the purpose of each such
sale or exchange is to acquire (and results within 120 days of such sale or exchange in the
acquisition of) replacement items of equipment;

     (xi) (A) the Borrower may transfer assets to any Subsidiary Guarantor and any
Subsidiary of the Borrower may transfer assets to the Borrower or to any Subsidiary
Guarantor, in each case so long as the security interests granted to the Collateral Agent
for the benefit of the Secured Creditors pursuant to the Security Documents in the assets so
transferred shall remain in full force and effect and perfected (to at least the same extent
as in effect immediately prior to such transfer) and (B) any Non-Guarantor Subsidiary (other
than the License Subsidiary, to the extent that it is a Non-Guarantor Subsidiary) may
transfer assets to any other Non-Guarantor Subsidiary (other than to the Captive Insurance
Company);

     (xii) the Captive Insurance Company and any Immaterial Subsidiary may be dissolved or
liquidated, if Holdings determines that it is in the best interests of the Credit Parties to
do so; and

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     (xiii) the Borrower and its Subsidiaries may sell, transfer or otherwise dispose of
Intellectual Property which, in the reasonable judgment of the Borrower or such Subsidiary,
are determined to be uneconomical, negligible or obsolete in the conduct of its business.

To the extent the Required Lenders (or all of the Lenders, as the case may be) waive the provisions
of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold
as permitted by this Section 10.02 (other than to Holdings or another Credit Party), such
Collateral shall be sold free and clear of the Liens created by the Security Documents, and the
Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed
appropriate in order to effect the foregoing.

          10.03 Dividends. Holdings will not, and will not permit any of its Subsidiaries to, authorize, declare or pay any
Dividends with respect to Holdings or any of its Subsidiaries, except that:

     (i) any Subsidiary of the Borrower may pay cash Dividends to the Borrower or to any
Wholly-Owned Domestic Subsidiary of the Borrower and any Foreign Subsidiary of the Borrower
also may pay cash Dividends to any Wholly-Owned Foreign Subsidiary of the Borrower;

     (ii) any non-Wholly-Owned Subsidiary of the Borrower may pay cash Dividends to its
shareholders, partners or members generally so long as the Borrower or its respective
Subsidiary which owns the Equity Interest in the Subsidiary paying such Dividends receives
at least its proportionate share thereof (based upon its relative holding of the Equity
Interest in the Subsidiary paying such Dividends and taking into account the relative
preferences, if any, of the various classes of Equity Interests of such Subsidiary;

     (iii) the Borrower may pay cash Dividends to Holdings so long as Holdings promptly uses
such proceeds solely to (and Holdings may) redeem or repurchase outstanding shares of
Holdings’ common stock (or options to purchase such common stock) following the death,
disability, retirement or termination of employment of officers, directors or employees of
Holdings or any of its Subsidiaries, provided that (x) the aggregate amount of
Dividends pursuant to this Section 10.03(iii) shall not exceed (I) $750,000 in any
fiscal year of Holdings plus (II) the aggregate amount of cash proceeds received by
Holdings after the Initial Borrowing Date in connection with the issuance of Holdings’
common stock (or options to purchase such common stock) to officers, directors or employees
of Holdings and its Subsidiaries plus (III) any cash proceeds received by Holdings
or the Borrower from key man life insurance policies obtained solely for the purpose of
making such redemptions or repurchases and (y) at the time of any Dividend (including any
such redemption or repurchase) permitted to be made pursuant to this Section
10.03(iii), no Default or Event of Default shall then exist or result therefrom;

     (iv) Holdings may pay regularly scheduled Dividends on its Qualified Preferred Stock
pursuant to the terms thereof solely through the issuance of additional shares of such
Qualified Preferred Stock rather than in cash;

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     (v) the Borrower may pay cash Dividends to Holdings so long as the proceeds thereof are
promptly used by Holdings solely to pay operating expenses incurred in the ordinary course
of business (including, without limitation, professional fees and expenses) and other
similar corporate overhead costs and expenses, provided that the aggregate amount of
all cash Dividends paid pursuant to this clause (v) shall not exceed $3,000,000 in any
fiscal year of Holdings;

     (vi) the Borrower may pay cash Dividends to Holdings, and Holdings may use such
proceeds to pay or make cash Dividends, in an aggregate amount not to exceed, when added to
the aggregate amount of cash payments made pursuant to Section 10.08(i)(y),
$25,000,000, so long as (i) no Default or Event of Default then exists or would result
therefrom, (ii) at the time that any such Dividend is paid or made (and immediately after
giving effect thereto), Holdings shall be in compliance, on a Pro Forma Basis, with the
financial covenants contained in Section 10.07 for the Calculation Period most
recently ended on or prior to the date of the respective Dividend, and (iii) prior to the
payment or making of such cash Dividend, Holdings or the Borrower shall have delivered to
the Administrative Agent a certificate executed by an Authorized Financial Officer,
certifying to the best of such officer’s knowledge, compliance with the requirements of
preceding clauses (i) and (ii), and containing the calculations (in reasonable detail)
required by preceding clause (ii);

     (vii) the Borrower may pay additional cash Dividends to Holdings, and Holdings may use
such proceeds to pay or make additional cash Dividends, in an aggregate amount not to exceed
the Cumulative Retained Excess Cash Flow Amount as in effect immediately before the
respective Dividend, so long as (i) no Default or Event of Default then exists or would
result therefrom, (ii) at the time that any such Dividend is paid or made (and immediately
after giving effect thereto), Holdings shall be in compliance, on a Pro
Forma Basis, with (x) a Secured Leverage Ratio of less than 2.75:1.00 and (y) the
financial covenant contained in Section 10.07(a), in each case for the Calculation
Period most recently ended on or prior to the date of the respective Dividend, (iii) the
Minimum Liquidity Condition is satisfied at such time and immediately after giving effect to
the payment of the respective Dividend, and (iv) prior to the payment or making of such cash
Dividend, Holdings or the Borrower shall have delivered to the Administrative Agent a
certificate executed by an Authorized Financial Officer, certifying to the best of such
officer’s knowledge, compliance with the requirements of preceding clauses (i), (ii) and
(iii), and containing the calculations (in reasonable detail) required by preceding clauses
(ii) and (iii);

     (viii) the Borrower may pay additional cash Dividends to Holdings, and Holdings may use
such proceeds to pay or make additional cash Dividends, in an aggregate amount not to exceed
the lesser of (I) the Permitted Equity Proceeds Basket Amount as in effect immediately
before the respective Dividend and (II) $20,000,000, in each case, so long as no Default or
Event of Default then exists or would result therefrom; and

     (ix) the Borrower may pay cash Dividends to Holdings (including through payments under
any tax sharing agreement with Holdings) in amounts required for

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Holdings to pay, in each
case without duplication, (x) franchise taxes and other similar taxes required to maintain
Holdings’ corporate existence, and (y) foreign, federal, state and/or local income taxes, to
the extent such income taxes are attributable to the income of the Borrower and its
Subsidiaries.

          10.04 Indebtedness. Holdings will not, and will not permit any of its Subsidiaries to, contract, create, incur,
assume or suffer to exist any Indebtedness, except:

     (i) Indebtedness incurred pursuant to this Agreement and the other Credit Documents;

     (ii) Indebtedness of the Borrower under Interest Rate Protection Agreements entered
into with respect to other Indebtedness permitted under this Section 10.04 so long
as the entering into of such Interest Rate Protection Agreements are bona fide hedging
activities and are not for speculative purposes;

     (iii) Indebtedness of the Borrower and its Subsidiaries evidenced by Capitalized Lease
Obligations (to the extent permitted by Section 10.13), purchase money Indebtedness
described in Section 10.01(vii) and Seller Financing, provided that in no
event shall the sum of the aggregate principal amount of all Capitalized Lease Obligations,
purchase money Indebtedness and Seller Financing permitted by this clause (iii) exceed
$20,000,000 at any time outstanding;

     (iv) Existing Indebtedness outstanding on the Initial Borrowing Date and listed on
Schedule VII (as reduced by any repayments thereof on or after the Initial Borrowing
Date), without giving effect to any subsequent extension, renewal or refinancing thereof
except to the extent set forth on Schedule VIII, provided that the aggregate
principal amount of the Indebtedness to be extended, renewed or refinanced does not increase
from that amount outstanding at the time of any such extension, renewal or refinancing
(provided that the Existing Holdings Notes shall only be permitted to remain
outstanding through the Existing Holdings Notes Redemption Date and may not be extended,
renewed or refinanced);

     (v) Indebtedness of a Subsidiary of the Borrower acquired pursuant to a Permitted
Acquisition or an Investment or Indebtedness of the Borrower or a Subsidiary assumed at the
time of a Permitted Acquisition or an Investment involving the purchase of an asset or
assets securing such Indebtedness) (such Indebtedness, in either case, “Permitted
Acquired Debt”), provided that (x) such Indebtedness was not incurred in
connection with, or in anticipation or contemplation of, such Permitted Acquisition or
Investment and (y) the aggregate principal amount of all Indebtedness permitted by this
clause (v) shall not exceed $10,000,000 at any one time outstanding;

     (vi) intercompany Indebtedness among the Borrower and its Subsidiaries to the extent
permitted by Sections 10.05(vii), (xiii), (xiv) and (xv);

     (vii) Indebtedness consisting of guaranties by the Borrower of lease obligations of
Wholly-Owned Subsidiaries of the Borrower;

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     (viii) (A) Contingent Obligations of the Borrower or any Subsidiary Guarantor with
respect to Indebtedness and lease obligations of the Borrower or any Subsidiary Guarantor
otherwise permitted under this Agreement and (B) Contingent Obligations of any Non-Guarantor
Subsidiary with respect to Indebtedness and lease obligations of any other Non-Guarantor
Subsidiary;

     (ix) Indebtedness of the Borrower or any of its Subsidiaries under any foreign exchange
contracts or currency swap agreements constituting Other Hedging Agreements entered into in
connection with the Borrower’s or any of its Subsidiaries foreign operations so long as
entering into of such Other Hedging Agreements are bona fide hedging activities and are not
for speculative purposes;

     (x) so long as no Default or Event of Default then exists or would result therefrom,
additional unsecured Indebtedness incurred by the Borrower and its Subsidiaries in an
aggregate principal amount not to exceed $10,000,000 at any one time outstanding; and

     (xi) additional unsecured Indebtedness incurred by Holdings or the Borrower
constituting Permitted Unsecured Debt, and unsecured guaranties thereof by the Borrower or
the Subsidiary Guarantors, so long as (I) no Default or Event of Default exists at the time
of incurrence thereof or would result therefrom, (II) Holdings shall be in compliance, on a
Pro Forma Basis, with (x) the financial covenants contained in Section 10.07 and (y)
a Total Leverage Ratio of less than 4.75:1.00, in each case for the Calculation Period most
recently ended on or prior to the date of the respective incurrence of such Permitted
Unsecured Debt (determined after giving effect to the incurrence of such Permitted Unsecured
Debt), (III) such Indebtedness is not subject to any scheduled amortization, mandatory
redemption, mandatory repayment or mandatory prepayment, sinking fund or similar payment
(other than, in each case, offers to repurchase upon a change of control, asset sale or
event of loss and acceleration rights after an event of default) or have a final maturity
date, in either case prior to the date occurring six months following the latest Maturity
Date then in effect, (IV) the indenture or other applicable agreement governing such
Indebtedness (including any related guaranties and collateral) shall not include any
financial performance “maintenance” covenants (whether stated as a covenant, default or
otherwise, although “incurrence-based” financial tests may be included), and (V) Holdings or
the Borrower shall have furnished to the Administrative Agent a certificate from an
Authorized Officer of the Borrower certifying as to compliance with the requirements of
preceding clauses (I) through (IV) and containing the calculations (in reasonable detail)
required by preceding clause (II).

          10.05 Advances, Investments and Loans. Holdings will not, and will not permit any of its Subsidiaries to, directly or indirectly, lend
money or credit or make advances to any Person, or purchase or acquire any stock, obligations or
securities of, or make any capital contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of currency or other commodities at a
future date in the nature of a futures contract, or hold any cash or Cash Equivalents (each of the
foregoing an “Investment” and, collectively, “Investments”), except that the
following shall be permitted:

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     (i) the Borrower and its Subsidiaries may acquire and hold accounts receivables owing
to any of them, if created or acquired in the ordinary course of business;

     (ii) Holdings and its Subsidiaries may acquire and hold cash and Cash Equivalents;

     (iii) Holdings and its Subsidiaries may hold the Investments held by them on the
Initial Borrowing Date and described on Schedule XI, provided that any
additional Investments made with respect thereto shall be permitted only if permitted under
the other provisions of this Section 10.05;

     (iv) the Borrower and its Subsidiaries may acquire and own investments (including debt
obligations) received in connection with the bankruptcy or reorganization of suppliers and
customers and in good faith settlement of delinquent obligations of, and other disputes
with, customers and suppliers;

     (v) the Borrower and its Subsidiaries may make loans and advances to their officers and
employees for moving, relocation and travel expenses and other similar expenditures, in each
case in the ordinary course of business in an aggregate amount not to exceed $500,000 at any
time (determined without regard to any write-downs or write-offs of such loans and
advances);

     (vi) the Borrower may enter into Interest Rate Protection Agreements to the extent
permitted by Section 10.04(ii);

     (vii) (A) the Borrower and the Subsidiary Guarantors may make intercompany loans and
advances (I) between and among one another and (II) to Non-Guarantor Subsidiaries in an
aggregate amount not to exceed, when added to the aggregate amount of all capital
contributions made to Non-Guarantor Subsidiaries pursuant to clause (viii)(II), $5,000,000
at any time (determined without regard to any write-downs or write-offs of such loans and
advances) and (B) Non-Guarantor Subsidiaries may make intercompany loans and advances
between and among one another (all such intercompany loans and advances referred to in
preceding clauses (A) and (B), collectively, the “Intercompany Loans”), so long as
(x) any note held by a Credit Party and evidencing any such Intercompany Loan is pledged to
the Collateral Agent pursuant to, and to the extent required by, the Pledge Agreement, (y)
the aggregate outstanding principal amount of all Intercompany Loans made pursuant to this
clause (vii) to the Captive Insurance Company, when added to the aggregate amount of all
capital contributions made to the Captive Insurance Company pursuant to clause (viii) of
this Section 10.05, shall not exceed $2,500,000 at any time outstanding (determined
without regard to any write-downs or write-offs of any such Investments), and (z) any
Intercompany Loans made by the Captive Insurance Company to any other Credit Party shall be
subject to the subordination provisions set forth in Exhibit N;

     (viii) (I) the Borrower and the Subsidiary Guarantors may make capital contributions to
their respective Subsidiaries that are also Subsidiary Guarantors, (II) the

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Borrower and the
Subsidiary Guarantors may make capital contributions to Non-Guarantor Subsidiaries in an
aggregate amount not to exceed, when added to the aggregate outstanding principal amount of
all Intercompany Loans made to Non-Guarantor Subsidiaries pursuant to clause (vii)(II) of
Section 10.05, shall not exceed
$5,000,000 at any time outstanding (determined without regard to any write-downs or
write-offs of any such Investments, and (III) Non-Guarantor Subsidiaries of the Borrower may
make capital contributions to or other Investments in other Non-Guarantor Subsidiaries,
provided that the aggregate amount of all capital contributions made to the Captive
Insurance Company pursuant to this clause (viii), when added to the aggregate outstanding
principal amount of all Intercompany Loans made to the Captive Insurance Company pursuant
to clause (vii) of this Section 10.05, shall not exceed $2,500,000 at any time
outstanding (determined without regard to any write-downs or write-offs of any such
Investments);

     (ix) Permitted Acquisitions shall be permitted in accordance with Section 9.15;

     (x) the Borrower and its Subsidiaries may acquire and hold non-cash consideration
received from Asset Sales to the extent permitted pursuant to Section 10.02(iv);

     (xi) Holdings may acquire and hold obligations of one or more officers, directors or
employees of Holdings or any of its Subsidiaries in connection with such officers’,
directors’ or employees’ acquisition of shares of capital stock of Holdings so long as no
cash is paid by Holdings or any of its Subsidiaries to such officers, directors or employees
in connection with the acquisition of any such obligations;

     (xii) the Borrower and its Subsidiaries may enter into Other Hedging Agreements to the
extent permitted by Section 10.04(ix);

     (xiii) the Borrower and its Subsidiaries may make Investments not otherwise permitted
by this Section 10.05 (other than Investments in or to Holdings) in an aggregate
amount not to exceed $10,000,000 (determined without regard to any write-downs or write-offs
thereof), net of cash payments of principal in the case of loans and cash equity returns
(whether as a dividend or redemption) in the case of equity investments;

     (xiv) the Borrower and its Subsidiaries may make additional Investments not otherwise
permitted by this Section 10.05 in an aggregate amount not to exceed the Cumulative
Retained Excess Cash Flow Amount as in effect immediately before the respective Investment,
so long as (i) no Default or Event of Default then exists or would result therefrom, (ii) at
the time that any such Investment is made (and immediately after giving effect thereto),
Holdings shall be in compliance, on a Pro Forma Basis, with (x) a Secured
Leverage Ratio of less than 2.75:1.00 and (y) the financial covenant contained in
Section 10.07(a), in each case for the Calculation Period most recently ended on or
prior to the date of the respective Investment, (iii) the Minimum Liquidity Condition is
satisfied at such time and immediately after giving effect to the making of the respective
Investment, and (iv) prior to the making of such Investment, Holdings or the Borrower shall
have delivered to the Administrative Agent a certificate executed by an Authorized

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Financial
Officer, certifying to the best of such officer’s knowledge, compliance with the
requirements of preceding clauses (i), (ii) and (iii), and containing the calculations (in
reasonable detail) required by preceding clauses (ii) and (iii);

     (xv) the Borrower and its Subsidiaries may make additional Investments not otherwise
permitted by this Section 10.05 in an aggregate amount not to exceed the Permitted
Equity Proceeds Basket Amount as in effect immediately before the respective Investment, so
long as no Default or Event of Default then exists or would result therefrom;

     (xvi) Holdings may make Investments in the Borrower;

     (xvii) Contingent Obligations of Holdings and its Subsidiaries permitted by Section
10.04, to the extent constituting an Investment, shall be permitted; and

     (xviii) Investments by the Borrower and its Subsidiaries to the extent acquired with
common Equity Interests of Holdings shall be permitted.

          10.06 Transactions with Affiliates. Holdings will not, and will not permit any of its Subsidiaries to, enter into any transaction or
series of related transactions with any Affiliate of Holdings or any of its Subsidiaries, other
than on terms and conditions substantially as favorable to Holdings or such Subsidiary as would
reasonably be obtained by Holdings or such Subsidiary at that time in a comparable arm’s-length
transaction with a Person other than an Affiliate, except that the following in any event shall be
permitted:

     (i) Dividends may be paid to the extent provided in Section 10.03;

     (ii) loans may be made and repaid and other transactions may be entered into by
Holdings and its Subsidiaries to the extent permitted by Sections 10.02,
10.04 and 10.05;

     (iii) customary fees may be paid to non-officer directors of Holdings and its
Subsidiaries;

     (iv) Holdings and its Subsidiaries may enter into, and may make payments under,
employment agreements, employee benefits plans, stock option plans, indemnification
provisions and other similar compensatory arrangements (including arrangements made with
respect to bonuses) with officers, employees and directors of Holdings and its Subsidiaries
in the ordinary course of business;

     (v) (A) the Borrower and its Subsidiaries may make payments to (x) the Captive
Insurance Company for the sole purpose of paying insurance premiums owed to the Captive
Insurance Company and (y) the License Subsidiary for the sole purpose of paying any license
fees owed to the License Subsidiary on a basis consistent with past practices and (B) the
Captive Insurance Company may pay out claims to (or on behalf of) the Borrower and its
Subsidiaries in respect of the Designated Insured Risks and (y) the License Subsidiary may
pay intellectual property maintenance fees to the Borrower and its other Subsidiaries on a
basis consistent with past practices;

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     (vi) subject to the limitations set forth in Section 10.03(ix), the Borrower
may enter into, and may make payments under any tax sharing agreement with Holdings;

     (vii) Holdings may issue shares of its Equity Interests otherwise permitted to be
issued by it under this Agreement;

     (viii) transactions between or among Holdings and any one or more of its Wholly-Owned
Subsidiaries (other than the Captive Insurance Company) to the extent that such transactions
are not otherwise prohibited under this Agreement; and

     (ix) Subsidiaries of the Borrower may pay fees to the Borrower or any Subsidiary
Guarantor in exchange for management or other services provided to such Subsidiaries.

Notwithstanding anything to the contrary contained above in this Section 10.06,
neither the Borrower nor any Subsidiary of the Borrower shall make any payments to the Captive
Insurance Company and the License Subsidiary (to the extent that it is a Non-Subsidiary Guarantor)
except as specifically provided in clause (v) of this Section 10.06 and, in the case of the
Captive Insurance Company, as otherwise permitted by Section 10.05.

          10.07 Interest Expense Coverage Ratio; Total Leverage Ratio. (a) Holdings will not permit the Interest Expense Coverage Ratio for any Test Period ending on
the last day of any fiscal quarter of Holdings to be less than 2.00:1.00.

          (b) Holdings will not permit the Total Leverage Ratio on the last day of any fiscal quarter of
Holdings set forth below to be greater than the ratio set forth opposite such fiscal quarter below:

	 	 	 	 	 
	Fiscal
Quarter Ending
	 	Ratio
	June 30, 2011
	 	 	5.25:1.00 	 
	September 30, 2011
	 	 	5.00:1.00 	 
	December 31, 2011
	 	 	4.75:1.00 	 
	March 31, 2012 and the last day of each fiscal quarter of
Holdings thereafter
	 	 	4.50:1.00.	 

          10.08 Limitations on Modifications of Certificate of Incorporation, By-Laws and Certain
Other Agreements, etc. Holdings will not, and will not permit any of its Subsidiaries to:

     (i) on and after the execution and delivery of any Permitted Unsecured Debt Document,
make (or give any notice in respect of) any voluntary or optional payment or prepayment on
or redemption, repurchase or acquisition for value of, or any prepayment or redemption as a
result of any asset sale, change of control or similar event of (including, in each case
without limitation, by way of depositing with the trustee with
respect thereto or any other Person money or securities before due for the purpose of
paying when due), any Permitted Unsecured Debt; provided that:

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     (w) so long as no Default or Event of Default then exists or would result
therefrom, the Borrower may prepay, redeem, repurchase or acquire any then
outstanding Permitted Unsecured Debt with the Net Debt Proceeds received by
Holdings or the Borrower from a new issuance of Permitted Unsecured Debt after the
Initial Borrowing Date to the extent issued in accordance with the terms of this
Agreement;

     (x) so long as no Default or Event of Default then exists or would result
therefrom, the Borrower may prepay any then outstanding Permitted Unsecured Debt
with the Permitted Equity Proceeds Basket Amount as in effect immediately before the
respective payment;

     (y) the Borrower may prepay any then outstanding Permitted Unsecured Debt in an
aggregate amount not to exceed, when added to the aggregate amount of cash Dividends
paid or made pursuant to Section 10.03(vi), $25,000,000, so long as (i) no
Default or Event of Default then exists or would result therefrom, (ii) at the time
that any such prepayment is paid or made (and immediately after giving effect
thereto), Holdings shall be in compliance, on a Pro Forma Basis, with the financial
covenants contained in Section 10.07 for the Calculation Period most
recently ended on or prior to the date of the respective prepayment, and (iii) prior
to such prepayment, Holdings or the Borrower shall have delivered to the
Administrative Agent a certificate executed by an Authorized Financial Officer,
certifying to the best of such officer’s knowledge, compliance with the requirements
of preceding clauses (i) and (ii), and containing the calculations (in reasonable
detail) required by preceding clause (ii) and (ii); and

     (z) the Borrower may prepay, redeem, repurchase or acquire any then outstanding
Permitted Unsecured Debt in an aggregate amount not to exceed the Cumulative
Retained Excess Cash Flow Amount as in effect immediately before the respective
prepayment, redemption, repurchase and acquisition, so long as (i) no Default or
Event of Default then exists or would result therefrom, (ii) at the time that any
such prepayment, redemption, repurchase or acquisition is made (and immediately
after giving effect thereto), Holdings shall be in compliance, on a Pro
Forma Basis, with (x) a Secured Leverage Ratio of less than 2.75:1.00 and
(y) the financial covenant contained in Section 10.07(a), in each case for
the Calculation Period most recently ended on or prior to the date of the respective
prepayment, redemption, repurchase or acquisition, (iii) the Minimum Liquidity
Condition is satisfied at such time and immediately after giving effect to the
making of the respective prepayment, redemption, repurchase or acquisition, and (iv)
prior to the making of such prepayment, Holdings or the Borrower shall have
delivered to the Administrative Agent a certificate executed by an Authorized
Financial Officer, certifying to the best of such officer’s knowledge, compliance
with the requirements of preceding clauses (i), (ii) and (iii), and containing
the calculations (in reasonable detail) required by preceding clauses (ii) and
(iii);

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     (ii) on and after the execution and delivery of any Permitted Unsecured Debt Document,
amend, modify or change, or permit the amendment, modification or change of, any provision
of any Permitted Unsecured Debt Document to the extent that the Permitted Unsecured Debt
Document in the amended, modified or changed form would not be able to be incurred at such
in accordance with the terms of Section 10.04(xi);

     (iii) amend, modify or change its certificate or articles of incorporation (including,
without limitation, by the filing or modification of any certificate or articles of
designation), certificate of formation, limited liability company agreement or by-laws (or
the equivalent organizational documents), as applicable, in any manner that could reasonably
be expected to be materially adverse to the interests of the Lenders;

     (iv) repay any Intercompany Loan owed to the Captive Insurance Company or the License
Subsidiary (to the extent that it is a Non-Guarantor Subsidiary) at any time that a Default
or an Event of Default exists; or

     (v) increase in any material respect the basis on which the insurance premiums and
licensing fees paid to the Captive Insurance Company and the License Subsidiary (to the
extent that it is a Non-Guarantor Subsidiary) are calculated, as the case may be.

To the extent that any Permitted Unsecured Debt is prepaid, redeemed, repurchased, or acquired as
otherwise permitted by clause (i) of this Section 10.08, such Permitted Unsecured
Debt shall be immediately cancelled by the Borrower and shall no longer be outstanding.

          10.09 Limitation on Certain Restrictions on Subsidiaries. Holdings will not, and will not permit any of its Subsidiaries to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on
the ability of any such Subsidiary to (a) pay dividends or make any other distributions on its
capital stock or any other interest or participation in its profits owned by Holdings or any of its
Subsidiaries, or pay any Indebtedness owed to Holdings or any of its Subsidiaries, (b) make loans
or advances to Holdings or any of its Subsidiaries or (c) transfer any of its properties or assets
to Holdings or any of its Subsidiaries, except for such encumbrances or restrictions existing under
or by reason of (i) applicable law (including, in the case of the Captive Insurance Company, the
New York Insurance Law and the regulations promulgated thereunder), (ii) this Agreement and the
other Credit Documents, (iii) on and after the execution and delivery thereof, the Permitted
Unsecured Debt Documents, (iv) customary provisions restricting subletting or assignment of any
lease governing any leasehold interest of Holdings or any of its Subsidiaries, (v) customary
provisions restricting assignment of any licensing agreement (in which Holdings or any of its
Subsidiaries is the licensee) or other contract entered into by Holdings or any of its Subsidiaries
in the ordinary course of business, (vi) restrictions on the transfer of any asset pending the
close of the sale of such asset, (vii) restrictions on the transfer of any asset subject to a Lien
permitted by Section 10.01(iii), (vi), (vii), (xiii), (xiv)
or (xv) and (viii) restrictions or
encumbrances with respect to a Subsidiary of the Borrower imposed pursuant to an agreement that has
been entered into for the sale or disposition of all or substantially all of the Equity Interests
or all or substantially all of the assets of such Subsidiary, so long as such sale or disposition
is permitted under this Agreement and the other Credit Documents.

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          10.10 Limitation on Issuance of Capital Stock. (a) Holdings will not, and will not permit any of its Subsidiaries to, issue (i) any preferred
stock or other preferred Equity Interests other than (x) Qualified Preferred Stock, (y) preferred
Equity Interests issued by a Subsidiary of the Borrower to the Borrower or a Subsidiary Guarantor
and (z) preferred Equity Interests issued by a Non-Guarantor Subsidiary to another Non-Guarantor
Subsidiary, or (ii) any redeemable common stock or other redeemable common Equity Interests other
than common stock or other common Equity Interests that are redeemable at the sole option of
Holdings or such Subsidiary, as the case may be or that are not mandatorily redeemable prior to the
date occurring six months following the latest Maturity Date then in effect.

          (b) Holdings will not permit any of its Subsidiaries to issue any capital stock or other
Equity Interests (including by way of sales of treasury stock) or any options or warrants to
purchase, or securities convertible into, capital stock or other Equity Interests, except (i) for
transfers and replacements of then outstanding shares of capital stock or other Equity Interests,
(ii) for stock splits, stock dividends and other issuances which do not decrease the percentage
ownership of Holdings or any of its Subsidiaries in any class of the capital stock or other equity
interests of the Borrower or such Subsidiary, (iii) in the case of Foreign Subsidiaries of the
Borrower, to qualify directors and for nominal shares required to be held by local nationals, in
each case to the extent required by applicable law or (iv) for issuances by Subsidiaries of the
Borrower which are newly created or acquired in accordance with the terms of this Agreement.

          10.11 Business, etc. (a) Holdings will not, and will not permit any of its Subsidiaries to, engage in any business
other than the businesses engaged in by Holdings and its Subsidiaries as of the Initial Borrowing
Date and other businesses reasonably related thereto.

          (b) Notwithstanding the foregoing or anything else in this Agreement to the contrary, (i)
Holdings will not engage in any business or own any significant assets or have any material
liabilities other than (x) its ownership of the Equity Interests of the Borrower, (y) its ownership
of those Investments permitted to be held by it under Section 10.05, and (z) those
liabilities which it is responsible for under this Agreement, the other Credit Documents and
Permitted Unsecured Debt Documents to which it is a party, provided that Holdings may
engage in those activities that are incidental to the maintenance of its existence in compliance
with applicable law and legal, tax and accounting matters in connection with any of the foregoing
activities, and (ii) Holdings will not permit the Captive Insurance Company to engage in any
business or own any significant assets or have any material liabilities other than (x) its
ownership of the Equity Interests of the License Subsidiary and its holding of any Intercompany
Loans owed to it as permitted by this Agreement, (y) having those liabilities which it is
responsible for in respect of any Intercompany Loans owed by it as permitted by this Agreement and
(z)
providing insurance only to, and collecting related premiums only from, the Borrower and its
Subsidiaries with respect to the Designated Insured Risks (it being understood that in no event
shall Holdings permit the Captive Insurance Company to assume any reinsurance from any other
insurance company, including any reinsurance of the Borrower’s and its Subsidiaries’ risks that are
directly insured by any other insurance company), provided that, in addition to the
foregoing, the Captive Insurance Company may engage in those activities that are incidental to the
maintenance of its existence in compliance with applicable law and legal, tax and accounting
matters in connection with any of the foregoing activities.

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          10.12 Change of Legal Names; Type of Organization (and Whether a Registered Organization);
Jurisdiction of Organization etc. Holdings will not, and will not permit the Borrower or any Subsidiary Guarantor to, change its
legal name, its type of organization, its status as a registered organization (in the case of a
registered organization), its jurisdiction of organization, or its organizational identification
number (if any), except that any such changes shall be permitted (so long as not in violation of
the applicable requirements of the Security Documents and so long as same do not involve (x) a
registered organization ceasing to constitute the same or (y) a Credit Party changing its
jurisdiction of organization from the United States or a State thereof to a jurisdiction of
organization outside the United States or a State thereof) if (i) it shall have given to the
Collateral Agent not more than 5 Business Days’ written notice (or such later notice as is
acceptable to the Collateral Agent) after each change to the information listed on Schedule
IX (as adjusted for any subsequent changes thereto previously made in accordance with this
sentence), together with a supplement to Schedule IX which shall correct all information
contained therein for the respective Credit Party, and (ii) in connection with the respective such
change or changes, it shall have taken all action reasonably requested by the Collateral Agent to
maintain the security interests of the Collateral Agent in the Collateral intended to be granted
hereby at all times fully perfected and in full force and effect.

          10.13 Capital Expenditures. (a) If, as of the last day of any fiscal quarter of
Holdings (commencing with the fiscal quarter ending June 30, 2011), the Secured Leverage Ratio for
the Test Period ended on such day (i) is greater than 3.00:1.00, then Holdings will not, and will
not permit any of its Subsidiaries to, make any Capital Expenditures in excess of $40,000,000 in
the aggregate for Holdings and its Subsidiaries for such Test Period, (ii) is less than or equal to
3.00:1.00 but greater than 2.50:1.00, then Holdings will not, and will not permit any of its
Subsidiaries to, make any Capital Expenditures in excess of $50,000,000 in the aggregate for
Holdings and its Subsidiaries for such Test Period, or (iii) is less than or equal to 2.50:1.00,
then there shall be no limitation on Capital Expenditures pursuant to this Section 10.13(a)
(other than Capital Expenditures constituting Permitted Acquisitions unless same are independently
permitted by Section 9.15) for Holdings and its Subsidiaries for the Test Period ended on such day
(it being understood and agreed that no Default or Event of Default shall arise under this
Section 10.13(a) in the event that Holdings and its Subsidiaries made Capital Expenditures
in any Test Period in excess of those amounts permitted above in this Section 10.13(a) for
such Test Period to the extent (but only to the extent) that such Capital Expenditures were
otherwise permitted to be made by Holdings and its Subsidiaries under this Section 10.13(a)
at the time such Capital Expenditures were actually made).

          (b) In addition to the foregoing, Holdings and its Subsidiaries may make additional Capital
Expenditures (which Capital Expenditures will not be included in any determination under
Section 10.13(a)) with the amount of Net Sale Proceeds received by Holdings or any of its
Subsidiaries from any Asset Sale so long as such Net Sale Proceeds are reinvested within 365 days
following the date of such Asset Sale, but only to the extent that such Net Sale Proceeds are not
otherwise required to be applied as a mandatory repayment pursuant to Section 5.02(d).

          (c) In addition to the foregoing, Holdings and its Subsidiaries may make additional Capital
Expenditures (which Capital Expenditures will not be included in any determination under
Section 10.13(a)) with the amount of Net Recovery Event Proceeds received by

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Holdings or
any of its Subsidiaries from any Recovery Event so long as such Net Recovery Event Proceeds are
reinvested within 365 days following the date of receipt of such Net Recovery Event Proceeds from
such Recovery Event, but only to the extent that such Net Recovery Event Proceeds are not otherwise
required to be applied as a mandatory repayment pursuant to Section 5.02(f).

          (d) In addition to the foregoing, the Borrower and its Subsidiaries may make additional
Capital Expenditures (which Capital Expenditures will not be included in any determination under
Section 10.13(a)) constituting Permitted Acquisitions effected in accordance with the
requirements of Section 9.15.

          (e) In addition to the foregoing, the Borrower and its Subsidiaries may make additional
Capital Expenditures (which Capital Expenditures will not be included in any determination under
Section 10.13(a)) constituting Investments effected in accordance with the requirements of
Section 10.05.

          SECTION 11. Events of Default. Upon the occurrence of any of the following specified events (each, an “Event of Default”):

          11.01 Payments. The Borrower shall (i) default in the payment when due of any principal of any Loan or any Note
or any Unpaid Drawing or (ii) default, and such default shall continue unremedied for three or more
Business Days, in the payment when due of any interest on any Loan, Note or Unpaid Drawing or any
Fees or any other amounts owing hereunder or under any other Credit Document; or

          11.02 Representations, etc. Any representation, warranty or statement made or deemed made by any Credit Party herein or in
any other Credit Document or in any certificate delivered to the Administrative Agent or any Lender
pursuant hereto or thereto shall prove to be untrue in any material respect (or in any respect to
the extent qualified by materiality or Material Adverse Effect) on the date as of which made or
deemed made; or

          11.03 Covenants. Holdings or any of its Subsidiaries shall (i) default in the due performance or observance by it
of any term, covenant or agreement contained in Section 9.01(f)(i), 9.08,
9.11, 9.12(d), 9.15, 9.17 or Section 10 or (ii) default in
the due performance or observance by it of any other term, covenant or agreement contained in this
Agreement or in any other Credit Document (other than those set forth in Sections 11.01 and
11.02) and such default shall continue unremedied for a period of 30 days after written
notice thereof to Holdings or the Borrower by the Administrative Agent or the Required Lenders; or

          11.04 Default Under Other Agreements. (i) Holdings or any of its Subsidiaries shall (x) default in any payment of any Indebtedness
(other than the Obligations) beyond the period of grace, if any, provided in an instrument or
agreement under which such Indebtedness was created or (y) default in the observance or performance
of any agreement or condition relating to any Indebtedness (other than the Obligations) or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other
event shall occur or condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of
such holder or holders) to cause

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(determined without regard to whether any notice is required), any
such Indebtedness to become due prior to its stated maturity, or (ii) any Indebtedness (other than
the Obligations) of Holdings or any of its Subsidiaries shall be declared to be (or shall become)
due and payable prior to the stated maturity thereof (other than, in the case of this clause (ii),
any secured Indebtedness that is required to be prepaid as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness), provided that it shall not
be a Default or an Event of Default under this Section 11.04 unless the aggregate principal
amount of all Indebtedness as described in preceding clauses (i) and (ii) is at least $10,000,000;
or

          11.05 Bankruptcy, etc. Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) shall commence a
voluntary case concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as
now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an
involuntary case is commenced against Holdings or any of its Subsidiaries (other than an Immaterial
Subsidiary), and the petition is not dismissed within 60 days, after commencement of the case; or a
custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
substantially all of the property of Holdings or any of its Subsidiaries (other than an Immaterial
Subsidiary), or Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) commences
any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter
in effect relating to Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary)
(including, but not limited to, in the case of the Captive Insurance Company, Article 74 of the New
York Insurance Law), or there is commenced against Holdings or any of its Subsidiaries (other than
an Immaterial Subsidiary) any such proceeding which remains undismissed for a period of 60 days, or
Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) is adjudicated insolvent
or bankrupt; or any order of relief or other order approving any such case or proceeding is
entered; or Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) suffers any
appointment of any custodian or the like for it or any
substantial part of its property to continue undischarged or unstayed for a period of 60 days; or
Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) makes a general
assignment for the benefit of creditors; or any corporate, limited liability company or similar
action is taken by Holdings or any of its Subsidiaries (other than an Immaterial Subsidiary) for
the purpose of effecting any of the foregoing; or

          11.06 ERISA. (a) (i) Any Pension Plan shall have failed to satisfy the minimum funding standard required for
any plan year or part thereof under Section 412 of the Code or Section 302 of ERISA or a waiver of
such standard or extension of any amortization period is sought or granted under Section 412 of the
Code or Section 302 or 304 of ERISA, (ii) a determination shall have been made that any Pension
Plan is, or is expected to be, considered an “at-risk” plan within the meaning of Section 430 of
the Code or Section 303 of ERISA, (iii) a Reportable Event shall have occurred, (iv) a contributing
sponsor (as defined in Section 4001(a)(13) of ERISA) of a Pension Plan shall be subject to the
advance reporting requirement of PBGB Regulation Section 4043.61 (without regard to subparagraph
(b)(1) thereof) and an event described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC
Regulation Section 4043 shall be reasonably expected to occur with respect to such Pension Plan
within the following 30 days,(v)any Pension Plan shall have had or is likely to have a trustee
appointed to administer such Pension Plan, (vi) any Pension Plan is, shall have been or is likely
to be terminated or to be the subject of termination proceedings under ERISA, (vii) any Pension
Plan shall have an

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Unfunded Current Liability, (viii) a contribution required to be made with
respect to a Pension Plan, a Multiemployer Plan or a Foreign Pension Plan shall not have been
timely made, (ix) Holdings, any Subsidiary of Holdings or any ERISA Affiliate shall have received a
notice that a Multiemployer Plan has been terminated (within the meaning of Title IV of ERISA) or
is in “endangered” or “critical” status (under Section 305 of ERISA), (x) Holdings or any
Subsidiary of Holdings or any ERISA Affiliate shall have incurred or shall be reasonably likely to
incur (A) liability to or on account of a Pension Plan under Section 409, 502(i), 502(l), 515,
4062, 4063, 4064, or 4069 of ERISA or Section 436(f), 4971 or 4975 of the Code, (B) liability under
Sections 4201, 4204 or 4212 of ERISA with respect to a Multiemployer Plan, (C) liability under
Section 4980B of the Code on account of a group health plan (as defined in Section 4980B(g)(2) of
the Code), or (D) liability for post-retirement health benefits under a welfare benefit plan
(within the meaning of Section 3(1) of ERISA), or (xi) a “default” within the meaning of Section
4219(c)(5) of ERISA shall have occurred with respect to any Multiemployer Plan; (b) there shall
result from any such event or events the imposition of a lien, the granting of a security interest,
or a liability or a material risk of incurring a liability; and (c) such lien, security interest or
liability individually has had, or could reasonably be expected to have, a Material Adverse Effect,
or to the extent any such lien, security interest or liability has not been satisfied and remains
outstanding, when aggregated with all such other liens, security interests or liabilities that have
not been satisfied and remain outstanding, could reasonably be expected to have a Material Adverse
Effect; or

          11.07 Security Documents. Any of the Security Documents shall cease to be in full force and effect, or shall cease to give
the Collateral Agent for the benefit of the Secured Creditors the Liens, rights, powers and
privileges purported to be created thereby (including, without limitation, a perfected security
interest in, and Lien on, all of the Collateral (other than immaterial portions of the Collateral),
in favor of the Collateral Agent, superior to and prior to the rights of all third Persons (except
as permitted by Section 10.01), and subject to no other Liens (except as permitted by
Section 10.01)), or any Credit Party shall default in the due performance or observance of
any term, covenant or agreement on its part to be performed or observed pursuant to any such
Security Document and such default shall continue beyond the period of grace, if any, specifically
applicable thereto pursuant to the terms of such Security Document or, if no such period of grace
is provided in such Security Document, such default shall continue unremedied for a period of 30
days after written notice to the Borrower by the Administrative Agent or the Required Lenders; or

          11.08 Guaranties. Any Guaranty or any provision thereof shall cease to be in full force or effect as to any
Guarantor, or any Guarantor or any Person acting for or on behalf of such Guarantor shall deny or
disaffirm such Guarantor’s obligations under its Guaranty or any Guarantor shall default in the due
performance or observance of any term, covenant or agreement on its part to be performed or
observed pursuant to its Guaranty; or

          11.09 Judgments. One or more judgments or decrees shall be entered against Holdings or any Subsidiary (other
than an Immaterial Subsidiary) of Holdings involving in the aggregate for Holdings and its
Subsidiaries (other than an Immaterial Subsidiary) a liability (to the extent not paid or fully
covered by a reputable and solvent third party insurance company) and such judgments and decrees
either shall be final and non-appealable or shall not be vacated,

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discharged or stayed or bonded
pending appeal for any period of 60 consecutive days, and the aggregate amount of all such
judgments or decrees equals or exceeds $10,000,000; or

          11.10 Change of Control. A Change of Control shall occur;

          then, and in any such event, and at any time thereafter, if any Event of Default shall then be
continuing, the Administrative Agent, upon the written request of the Required Lenders, shall by
written notice to the Borrower, take any or all of the following actions, without prejudice to the
rights of the Administrative Agent, any Lender or the holder of any Note to enforce its claims
against any Credit Party (provided that, if an Event of Default specified in Section
11.05 shall occur with respect to the Borrower, the result which would occur upon the giving of
written notice by the Administrative Agent as specified in clauses (i) and (ii) below shall occur
automatically without the giving of any such notice): (i) declare the Total Commitment terminated,
whereupon the Commitments of each Lender shall forthwith terminate immediately and any Commitment
Commission shall forthwith become due and payable without any other notice of any kind; (ii)
declare the principal of and any accrued interest in respect of all Loans and the Notes and all
Obligations owing hereunder and thereunder to be, whereupon the same shall become, forthwith due
and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Credit Party; (iii) terminate any Letter
of Credit which may be terminated in accordance with its terms; (iv) direct the Borrower to
pay (and the Borrower agrees that upon receipt of such notice, or upon the occurrence of an Event
of Default specified in Section 11.05 with respect to the Borrower, it will pay) to the
Collateral Agent at the Payment Office such additional amount of cash or Cash Equivalents, to be
held as security by the Collateral Agent, as is equal to the aggregate Stated Amount of all Letters
of Credit issued for the account of the Borrower and then outstanding; (v) enforce, as Collateral
Agent, all of the Liens and security interests created pursuant to the Security Documents; and (vi)
apply any cash collateral held by the Administrative Agent pursuant to Sections 2.18 and/or
5.02 to the repayment of the Obligations.

          SECTION 12. The Administrative Agent.

          12.01 Appointment. The Lenders hereby irrevocably designate and appoint DBTCA as Administrative Agent (for purposes
of this Section 12 and Section 13.01, the term “Administrative Agent” also shall
include DBTCA in its capacity as Collateral Agent pursuant to the Security Documents to act as
specified herein and in the other Credit Documents. Each Lender hereby irrevocably authorizes, and
each holder of any Note by the acceptance of such Note shall be deemed irrevocably to authorize,
the Administrative Agent to take such action on its behalf under the provisions of this Agreement,
the other Credit Documents and any other instruments and agreements referred to herein or therein
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Administrative Agent by the terms hereof and thereof and such other
powers as are reasonably incidental thereto. The Administrative Agent may perform any of its
respective duties hereunder by or through its officers, directors, agents, employees or affiliates.

          12.02 Nature of Duties. (a) The Administrative Agent shall not have any duties or responsibilities except those
expressly set forth in this Agreement and in the other Credit Documents. Neither the
Administrative Agent nor any of its officers, directors, agents,

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employees or affiliates shall be
liable for any action taken or omitted by it or them hereunder or under any other Credit Document
or in connection herewith or therewith, unless caused by its or their gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and non-appealable
decision). The duties of the Administrative Agent shall be mechanical and administrative in
nature; the Administrative Agent shall not have by reason of this Agreement or any other Credit
Document a fiduciary relationship in respect of any Lender or the holder of any Note; and nothing
in this Agreement or in any other Credit Document, expressed or implied, is intended to or shall be
so construed as to impose upon the Administrative Agent any obligations in respect of this
Agreement or any other Credit Document except as expressly set forth herein or therein.

          (b) Notwithstanding any other provision of this Agreement or any provision of any other Credit
Document, each of the Syndication Agent and each Lead Arranger is named
as such for recognition purposes only, and in its capacity as such shall have no powers,
duties, responsibilities or liabilities with respect to this Agreement or the other Credit
Documents or the transactions contemplated hereby and thereby; it being understood and agreed that
each of the Syndication Agent and each Lead Arranger shall be entitled to all indemnification and
reimbursement rights in favor of the Administrative Agent as, and to the extent, provided for under
Sections 12.06 and 13.01. Without limitation of the foregoing, neither the
Syndication Agent nor any Lead Arranger shall, solely by reason of this Agreement or any other
Credit Documents, have any fiduciary relationship in respect of any Lender or any other Person.

          12.03 Lack of Reliance on the Administrative Agent. Independently and without reliance upon the Administrative Agent, each Lender and the holder of
each Note, to the extent it deems appropriate, has made and shall continue to make (i) its own
independent investigation of the financial condition and affairs of Holdings and its Subsidiaries
in connection with the making and the continuance of the Loans and the taking or not taking of any
action in connection herewith and (ii) its own appraisal of the creditworthiness of Holdings and
its Subsidiaries and, except as expressly provided in this Agreement, the Administrative Agent
shall not have any duty or responsibility, either initially or on a continuing basis, to provide
any Lender or the holder of any Note with any credit or other information with respect thereto,
whether coming into its possession before the making of the Loans or at any time or times
thereafter. The Administrative Agent shall not be responsible to any Lender or the holder of any
Note for any recitals, statements, information, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith or for the execution,
effectiveness, genuineness, validity, enforceability, perfection, collectibility, priority or
sufficiency of this Agreement or any other Credit Document or the financial condition of Holdings
or any of its Subsidiaries or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of this Agreement or any other Credit
Document, or the financial condition of Holdings or any of its Subsidiaries or the existence or
possible existence of any Default or Event of Default.

          12.04 Certain Rights of the Administrative Agent. If the Administrative Agent requests instructions from the Required Lenders with respect to any
act or action (including failure to act) in connection with this Agreement or any other Credit
Document, the Administrative Agent shall be entitled to refrain from such act or taking such action
unless and until the Administrative Agent shall have received instructions from the Required
Lenders; and

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the Administrative Agent shall not incur liability to any Lender by reason of so
refraining. Without limiting the foregoing, neither any Lender nor the holder of any Note shall
have any right of action whatsoever against the Administrative Agent as a result of the
Administrative Agent acting or refraining from acting hereunder or under any other Credit Document
in accordance with the instructions of the Required Lenders.

          12.05 Reliance. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying,
upon any note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier
message, cablegram, radiogram, order or other document or telephone message signed, sent or made by
any Person that the Administrative Agent believed to be the proper Person, and, with respect to all
legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder
and thereunder, upon advice of counsel selected by the Administrative Agent.

          12.06 Indemnification. To the extent the Administrative Agent (or any affiliate thereof) is not reimbursed and
indemnified by the Borrower, the Lenders will reimburse and indemnify the Administrative Agent (and
any affiliate thereof) in proportion to their respective “percentage” as used in determining the
Required Lenders (determined as if there were no Defaulting Lenders) for and against any and all
liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses
or disbursements of whatsoever kind or nature (including, without limitation, any customary
indemnifications provided to a deposit account bank pursuant to a “control agreement” referred to
in the Security Agreement) which may be imposed on, asserted against or incurred by the
Administrative Agent (or any affiliate thereof) in performing its duties hereunder or under any
other Credit Document (including with respect to any agreements or other instruments referred to
herein or therein) or in any way relating to or arising out of this Agreement or any other Credit
Document; provided that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or
disbursements resulting from the Administrative Agent’s (or such affiliate’s) gross negligence or
willful misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

          12.07 The Administrative Agent in its Individual Capacity. With respect to its obligation to make Loans, or issue or participate in Letters of Credit,
under this Agreement, the Administrative Agent shall have the rights and powers specified herein
for a “Lender” and may exercise the same rights and powers as though it were not performing
the duties specified herein; and the term “Lender,” “Required Lenders,”
“Majority Lenders” “holders of Notes” or any similar terms shall, unless the context
clearly indicates otherwise, include the Administrative Agent in its respective individual
capacities. The Administrative Agent and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of banking, investment banking, trust or other business with, or
provide debt financing, equity capital or other services (including financial advisory services) to
any Credit Party or any Affiliate of any Credit Party (or any Person engaged in a similar business
with any Credit Party or any Affiliate thereof) as if they were not performing the duties specified
herein, and may accept fees and other consideration from any Credit Party or any Affiliate of any
Credit Party for services in connection with this Agreement and otherwise without having to account
for the same to the Lenders.

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          12.08 Holders. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all
purposes hereof unless and until a written notice of the assignment, transfer or endorsement
thereof, as the case may be, shall have been filed with the Administrative Agent. Any request,
authority or consent of any Person who, at the time of making such request or giving such authority
or consent, is the holder of any Note shall be conclusive and binding on any subsequent
holder, transferee, assignee or endorsee, as the case may be, of such Note or of any Note or Notes
issued in exchange therefor.

          12.09 Resignation by the Administrative Agent. (a) The Administrative Agent may resign from the performance of all its respective functions
and duties hereunder and/or under the other Credit Documents at any time by giving 15 Business
Days’ prior written notice to the Lenders and, unless a Default or an Event of Default under
Section 11.05 with respect to the Borrower then exists, the Borrower. Any such resignation
by an Administrative Agent hereunder shall also constitute its resignation as an Issuing Lender and
the Swingline Lender, in which case the resigning Administrative Agent (x) shall not be required to
issue any further Letters of Credit or make any additional Swingline Loans hereunder and (y) shall
maintain all of its rights as Issuing Lender or Swingline Lender, as the case may be, with respect
to any Letters of Credit issued by it, or Swingline Loans made by it, in either case, prior to the
date of such resignation. Such resignation shall take effect upon the appointment of a successor
Administrative Agent pursuant to clauses (b) and (c) below or as otherwise provided below.

          (b) Upon any such notice of resignation by the Administrative Agent, the Required Lenders
shall appoint a successor Administrative Agent hereunder or thereunder who shall be a commercial
bank or trust company reasonably acceptable to the Borrower, which acceptance shall not be
unreasonably withheld or delayed (provided that the Borrower’s approval shall not be
required if an Event of Default then exists).

          (c) If a successor Administrative Agent shall not have been so appointed within such 15
Business Day period, the Administrative Agent, with the consent of the Borrower (which consent
shall not be unreasonably withheld or delayed, provided that the Borrower’s consent shall
not be required if an Event of Default then exists), shall then appoint a successor Administrative
Agent who shall serve as Administrative Agent hereunder or thereunder until such time, if any, as
the Required Lenders appoint a successor Administrative Agent as provided above.

          (d) If no successor Administrative Agent has been appointed pursuant to clause (b) or (c)
above by the 20th Business Day after the date such notice of resignation was given by the
Administrative Agent, the Administrative Agent’s resignation shall become effective and the
Required Lenders shall thereafter perform all the duties of the Administrative Agent hereunder
and/or under any other Credit Document until such time, if any, as the Required Lenders appoint a
successor Administrative Agent as provided above.

          (e) Upon a resignation of the Administrative Agent pursuant to this Section 12.09, the
Administrative Agent shall remain indemnified to the extent provided in this Agreement and the
other Credit Documents and the provisions of this Section 12 shall continue in effect for
the benefit of the Administrative Agent for all of its actions and inactions while serving as the
Administrative Agent.

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          SECTION 13. Miscellaneous.

          13.01 Payment of Expenses, etc. (a) The Borrower hereby agrees to: (i) whether or not the transactions herein contemplated
are consummated, pay all reasonable out-of-pocket costs and expenses of the Administrative Agent
(including, without limitation, the reasonable fees and disbursements of White & Case LLP and one
local counsel to the Administrative Agent in each relevant jurisdiction) in connection with the
preparation, execution and delivery of this Agreement and the other Credit Documents and the
documents and instruments referred to herein and therein and any amendment, waiver or consent
relating hereto or thereto, of the Administrative Agent in connection with its syndication efforts
and administration functions with respect to this Agreement and of the Administrative Agent and,
after the occurrence of an Event of Default, each of the Issuing Lenders and Lenders in connection
with the enforcement of this Agreement and the other Credit Documents and the documents and
instruments referred to herein and therein or in connection with any refinancing or restructuring
of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant
to any insolvency or bankruptcy proceedings (including, in each case without limitation, the
reasonable fees and disbursements of counsel and consultants for the Administrative Agent and,
after the occurrence of an Event of Default, one additional firm of counsel for the Lenders); (ii)
pay and hold the Administrative Agent, each of the Issuing Lenders and each of the Lenders harmless
from and against any and all present and future stamp, excise and other similar documentary taxes
with respect to the foregoing matters and save the Administrative Agent, each of the Issuing
Lenders and each of the Lenders harmless from and against any and all liabilities with respect to
or resulting from any delay or omission (other than to the extent attributable to the
Administrative Agent, such Issuing Lender or such Lender) to pay such taxes; and (iii) indemnify
the Administrative Agent, each Issuing Lender and each Lender, and each of their respective
officers, directors, employees, representatives, agents, affiliates, trustees and investment
advisors (collectively, as to the Administrative Agent, such Issuing Lender or such Lender, its
“Related Parties”) from and hold each of them harmless against any and all liabilities, obligations
(including removal or remedial actions), losses, damages, penalties, claims, actions, judgments,
suits, costs, expenses and disbursements (including reasonable attorneys’ and consultants’ fees and
disbursements (limited, in the case of any Event of Default, to one counsel to the Administrative
Agent, one additional counsel for all Issuing Lenders and Lenders, taken as a whole, one local
counsel for the Administrative Agent and the Lenders, taken as a whole, in each relevant
jurisdiction, and, solely in the case of an actual or perceived conflict of interests, one
additional counsel in each relevant jurisdiction to each group of affected Lenders similarly
situated, taken as a whole)) incurred by, imposed on or assessed against any of them as a result
of, or arising out of, or in any way related to, or by reason of, (a) any investigation, litigation
or other proceeding (whether or not the Administrative Agent, any Issuing Lender or any Lender is a
party thereto and whether or not such investigation, litigation or other proceeding is brought by
or on behalf of any Credit Party) related to the entering into and/or performance of this Agreement
or any other Credit Document (b) the entering into and/or performance of this Agreement or any other Credit Document  or the use of any Letter of Credit or the proceeds of any Loans
hereunder or the consummation of the Transaction or any other transactions contemplated herein or
in any other Credit Document or the exercise of any of their rights or remedies provided herein or
in the other Credit
 Documents,
or (c) the actual or alleged presence of Hazardous Materials in the air, surface water or
groundwater or on the surface or subsurface of any Real Property at any time owned, leased or
operated by Holdings or any of its Subsidiaries, the generation, storage, transportation, handling

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or disposal of Hazardous Materials by Holdings or any of its Subsidiaries at any location, whether
or not owned, leased or operated by Holdings or any of its Subsidiaries, the non-compliance by
Holdings or any of its Subsidiaries with any Environmental Law (including applicable permits
thereunder) applicable to any Real Property, or any Environmental Claim asserted against Holdings,
any of its Subsidiaries or any Real Property at any time owned, leased or operated by Holdings or
any of its Subsidiaries, including, in each case, without limitation, the reasonable fees and
disbursements of counsel and other consultants incurred in connection with any such investigation,
litigation or other proceeding (but excluding any losses, liabilities, claims, damages or expenses
to the extent incurred by reason of the gross negligence or willful misconduct of the Person to be
indemnified or its Related Parties (as determined by a court of competent jurisdiction in a final
and non-appealable decision)). To the extent that the undertaking to indemnify, pay or hold
harmless the Administrative Agent, any Issuing Lender or any Lender set forth in the preceding
sentence may be unenforceable because it is violative of any law or public policy, the Borrower
shall make the maximum contribution to the payment and satisfaction of each of the indemnified
liabilities which is permissible under applicable law.

          (b) To the fullest extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Person entitled to indemnification pursuant to Section
13.01(a), on any theory of liability, for special, indirect, consequential or incidental
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or
thereby, the transactions contemplated hereby or thereby, any Letter of Credit, any Loan or the use
of the proceeds thereof. No Person entitled to indemnification pursuant to Section
13.01(a) shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Credit Documents or
the transactions contemplated hereby or thereby, except to the extent the liability of such
indemnified Person results from such indemnified Person’s gross negligence or willful misconduct
(as determined by a court of competent jurisdiction in a final and
non-appealable decision).

          13.02 Right of Setoff. In addition to any rights and remedies now or hereafter granted under applicable law, the
Security Documents or otherwise, and not by way of limitation of any such rights or remedies, upon
any Obligation becoming due and payable by the Borrower (whether at the stated maturity, by
acceleration or otherwise), the Administrative Agent, each Issuing Lender and each Lender is hereby
authorized at any time or from time to time, without presentment, demand, protest or other notice
of any kind to any Credit Party or to any other Person, any such notice being hereby expressly
waived, to set off and to appropriate and apply any and all deposits (general or special) and any
other Indebtedness at any time held or owing by the Administrative Agent, such Issuing Lender or
such Lender (including, without limitation, by branches and agencies of the Administrative Agent,
such Issuing Lender or such Lender wherever located) to or for the credit or the account of the
Borrower or any of its Subsidiaries against and on account of the
Obligations and liabilities of the Credit Parties to the Administrative Agent, such Issuing Lender
or such Lender under this Agreement or under any of the other Credit Documents, including, without
limitation, all interests in Obligations purchased by such Lender pursuant to Section
13.06(b), and all other claims of any nature or description arising out of or connected with
this Agreement or any other Credit Document, irrespective of

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whether or not the Administrative
Agent, such Issuing Lender or such Lender shall have made any demand hereunder and although said
Obligations, liabilities or claims, or any of them, shall be contingent or unmatured.

          13.03 Notices. Except as otherwise expressly provided herein, all notices and other communications provided for
hereunder shall be in writing (including telegraphic, telex, telecopier or cable communication) and
mailed, telegraphed, telexed, telecopied, cabled or delivered: if to any Credit Party, at the
address specified opposite its signature below or in the other relevant Credit Documents; if to any
Lender, at its address specified on Schedule II; and if to the Administrative Agent, at the
Notice Office; or, as to any Credit Party or the Administrative Agent, at such other address as
shall be designated by such party in a written notice to the other parties hereto and, as to each
Lender, at such other address as shall be designated by such Lender in a written notice to the
Borrower and the Administrative Agent. All such notices and communications shall, when mailed,
telegraphed, telexed, telecopied, or cabled or sent by overnight courier, be effective when
deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as
the case may be, or sent by telex or telecopier, except that notices and communications to (x) each
Lender in the case of Sections 2.01(d), 2.03(a) and 3.04(c) and (y) the
Administrative Agent and the Borrower (in either case) shall not be effective until received by
such Lender, the Administrative Agent or the Borrower, as the case may be.

          13.04 Benefit of Agreement; Assignments; Participations. (a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
respective successors and assigns of the parties hereto; provided, however, neither
Holdings nor the Borrower may assign or transfer any of its rights, obligations or interest
hereunder or under the other Credit Documents without the prior written consent of the Lenders and,
provided further, that, although any Lender may transfer, assign or grant participations in its
rights hereunder, such Lender shall remain a “Lender” for all purposes hereunder (and may
not transfer or assign all or any portion of its Commitments and outstanding Loans hereunder except
as provided in Sections 2.13 and 13.04(b)) and the transferee, assignee or
participant, as the case may be, shall not constitute a “Lender” hereunder and, provided
further, that no Lender shall transfer or grant any participation under which the participant shall
have rights to approve any amendment to or waiver of this Agreement or any other Credit Document
except to the extent such amendment or waiver would (i) extend the final scheduled maturity of any
Loan, Note or Letter of Credit (unless such Letter of Credit is not extended beyond the Revolving
Loan Maturity Date) in which such participant is participating, or reduce the rate or extend the
time of payment of interest or Fees thereon (except in connection with a waiver of applicability of
any post-default increase in interest rates) or reduce the principal amount thereof (it being
understood that any amendment or modification to the financial definitions in this Agreement or to
Section 13.07(a) shall not constitute a reduction in the rate of interest or Fees payable
hereunder), or increase the amount of the participant’s participation over the amount thereof then
in effect (it
being understood that a waiver of any Default or Event of Default or of a mandatory reduction in
the Total Commitment shall not constitute a change in the terms of such participation, and that an
increase in any Commitment (or the available portion thereof) or Revolving Loan shall be permitted
without the consent of any participant if the participant’s participation is not increased as a
result thereof), (ii) consent to the assignment or transfer by Holdings or the Borrower of any of
its rights and obligations under this Agreement, (iii) release all or substantially all of the
Collateral under all of the Security Documents (except as expressly provided in the Credit
Documents) supporting the

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Loans or Letters of Credit hereunder in which such participant is
participating or (iv) release all or substantially all of the Subsidiary Guarantors under the
Subsidiaries Guaranty (except as expressly provided in the Credit Documents) supporting the Loans
or Letters of Credit hereunder in which such participant is participating. In the case of any such
participation, the participant shall not have any rights under this Agreement or any of the other
Credit Documents (the participant’s rights against such Lender in respect of such participation to
be those set forth in the agreement executed by such Lender in favor of the participant relating
thereto) and all amounts payable by the Borrower hereunder shall be determined as if such Lender
had not sold such participation.

          (b) Notwithstanding the foregoing, any Lender (or any Lender together with one or more other
Lenders) may (x) assign all or a portion of its Commitments and related outstanding Obligations
(or, if the Commitments with respect to the relevant Tranche have terminated, outstanding
Obligations) hereunder to (i)(A) its parent company and/or any affiliate of such Lender which is at
least 50% owned by such Lender or its parent company or (B) to one or more other Lenders or any
affiliate of any such other Lender which is at least 50% owned by such other Lender or its parent
company (provided that any fund that invests in loans and is managed or advised by the same
investment advisor of another fund which is a Lender (or by an Affiliate of such investment
advisor) shall be treated as an affiliate of such other Lender for the purposes of this sub-clause
(x)(i)(B)), or (ii) in the case of any Lender that is a fund that invests in loans, any other fund
that invests in loans and is managed or advised by the same investment advisor of any Lender or by
an Affiliate of such investment advisor or (y) assign all, or if less than all, a portion equal to
at least $1,000,000 in the aggregate for the assigning Lender or assigning Lenders, of such
Commitments and related outstanding Obligations (or, if the Commitments with respect to the
relevant Tranche have terminated, outstanding Obligations) hereunder to one or more Eligible
Transferees (treating any fund that invests in loans and any other fund that invests in loans and
is managed or advised by the same investment advisor of such fund or by an Affiliate of such
investment advisor as a single Eligible Transferee), each of which assignees shall become a party
to this Agreement as a Lender by execution of an Assignment and Assumption Agreement,
provided that (i) at such time, Schedule I shall be deemed modified to reflect the
Commitments and/or outstanding Loans, as the case may be, of such new Lender and of the existing
Lenders, (ii) upon the surrender of the relevant Notes by the assigning Lender (or, upon such
assigning Lender’s indemnifying the Borrower for any lost Note pursuant to a customary
indemnification agreement) new Notes will be issued, at the Borrower’s expense, to such new Lender
and to the assigning Lender upon the request of such new Lender or assigning Lender, such new Notes
to be in conformity with the requirements of Section 2.05 (with appropriate modifications)
to the extent needed to reflect the revised Commitments and/or outstanding Loans, as the case may
be, (iii) the consent of the Administrative Agent and, so long as no Event of Default under
Section 11.01 or 11.05 then exists (other than with respect to an Immaterial
Subsidiary), the consent of the Borrower in each case shall be required in connection
with any such assignment pursuant to clause (y) above (each of which consents shall not be
unreasonably withheld or delayed), provided that the Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written notice to the
Administrative Agent within 5 Business Days after having received notice thereof, (iv) the consent
of each Issuing Lender and the Swingline Lender shall be required in connection with any assignment
of Revolving Loan Commitments (and related Obligations) pursuant to clause (y) above (such consent
not to be unreasonably withheld or delayed), (v) unless waived by the

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Administrative Agent, the
Administrative Agent shall receive at the time of each such assignment, from the assigning or
assignee Lender, the payment of a non-refundable assignment fee of $3,500 and (vi) no such transfer
or assignment will be effective until recorded by the Administrative Agent on the Register pursuant
to Section 13.15. To the extent of any assignment pursuant to this Section
13.04(b), the assigning Lender shall be relieved of its obligations hereunder with respect to
its assigned Commitments and outstanding Loans. At the time of each assignment pursuant to this
Section 13.04(b) to a Person which is not already a Lender hereunder, the respective
assignee Lender shall, to the extent legally entitled to do so, provide to the Borrower the
appropriate Internal Revenue Service Forms (and, if applicable, a Section 5.04(b)(ii) Certificate)
described in Section 5.04(b). To the extent that an assignment of all or any portion of a
Lender’s Commitments and related outstanding Obligations pursuant to Section 2.13 or this
Section 13.04(b) would, at the time of such assignment, result in increased costs
under Section 2.10, 3.06 or 5.04 from those being charged by the respective
assigning Lender prior to such assignment, then the Borrower shall not be obligated to pay such
increased costs (although the Borrower, in accordance with and pursuant to the other provisions of
this Agreement, shall be obligated to pay any other increased costs of the type described above
resulting from changes after the date of the respective assignment). Notwithstanding the foregoing
provisions of this Section 13.04(b) or any other provision of this Agreement, if the
Borrower shall have consented thereto in writing, the Administrative Agent shall have the right,
but not the obligation, to effectuate assignments of Commitments and/or related outstanding
Obligations via an electronic settlement system acceptable to Administrative Agent and the Borrower
as designated in writing from time to time to the Lenders by the Administrative Agent (the
“Settlement Service”). At any time when the Administrative Agent elects, in its sole
discretion, to implement such Settlement Service, each such assignment shall be effected by the
assigning Lender and proposed assignee pursuant to the procedures then in effect under the
Settlement Service, which procedures shall be subject to the prior written approval of the Borrower
and shall be consistent with the other provisions of this Section 13.04(b). Each assigning
Lender and proposed assignee shall comply with the requirements of the Settlement Service in
connection with effecting any assignment of Commitments and/or related outstanding Obligations
pursuant to the Settlement Service. Assignments and assumptions of Commitments and/or related
outstanding Obligations shall be effected by the provisions otherwise set forth herein until the
Administrative Agent notifies the Borrower and the Lenders of the Settlement Service as set forth
herein.

          (c) Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans and
Notes hereunder to a Federal Reserve Bank in support of borrowings made by such Lender from such
Federal Reserve Bank and, with prior notification to the Administrative Agent (but without the
consent of the Administrative Agent or the Borrower), any Lender which is a fund may pledge all or
any portion of its Loans and Notes to its trustee or to a collateral agent providing credit or
credit support to such Lender in support of its obligations
to such trustee, such collateral agent or a holder of such obligations, as the case may be.
No pledge pursuant to this clause (c) shall release the transferor Lender from any of its
obligations hereunder.

          13.05 No Waiver; Remedies Cumulative. No failure or delay on the part of the Administrative Agent, the Collateral Agent, any Issuing
Lender or any Lender in exercising any right, power or privilege hereunder or under any other
Credit Document and no course of dealing

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between the Borrower or any other Credit Party and the
Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder
or under any other Credit Document preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder or thereunder. The rights, powers and remedies
herein or in any other Credit Document expressly provided are cumulative and not exclusive of any
rights, powers or remedies which the Administrative Agent, the Collateral Agent, any Issuing Lender
or any Lender would otherwise have. No notice to or demand on any Credit Party in any case shall
entitle any Credit Party to any other or further notice or demand in similar or other circumstances
or constitute a waiver of the rights of the Administrative Agent, the Collateral Agent, any Issuing
Lender or any Lender to any other or further action in any circumstances without notice or demand.

          13.06 Payments Pro Rata. (a) Except as otherwise provided in this Agreement, the Administrative Agent agrees that
promptly after its receipt of each payment from or on behalf of the Borrower in respect of any
Obligations hereunder, the Administrative Agent shall distribute such payment to the Lenders
entitled thereto (other than any Lender that has consented in writing to waive its pro
rata share of any such payment) pro rata based upon their respective
shares, if any, of the Obligations with respect to which such payment was received.

          (b) Each of the Lenders agrees that, if it should receive any amount hereunder (whether by
voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents,
or otherwise), which is applicable to the payment of the principal of, or interest on, the Loans,
Unpaid Drawings, Commitment Commission or Letter of Credit Fees, of a sum which with respect to the
related sum or sums received by other Lenders is in a greater proportion than the total of such
Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due
to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess
payment shall purchase for cash without recourse or warranty from the other Lenders an interest in
the Obligations of the respective Credit Party to such Lenders in such amount as shall result in a
proportional participation by all the Lenders in such amount; provided that if all or any
portion of such excess amount is thereafter recovered from such Lenders, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest.

          (c) Notwithstanding anything to the contrary contained herein, the provisions of the preceding
Sections 13.06(a) and (b) shall be subject to the express provisions of this
Agreement which require, or permit, differing payments to be made to Non-Defaulting Lenders as
opposed to Defaulting Lenders.

          13.07 Calculations; Computations. (a) The financial statements to be furnished to the Lenders pursuant hereto shall be made and
prepared in accordance with generally accepted accounting principles in the United States
consistently applied throughout the periods involved (except as set forth in the notes thereto or
as otherwise disclosed in writing by Holdings to the Lenders); provided that, (i) except as
otherwise specifically provided herein, all accounting and financial terms used herein shall
utilize generally accepted accounting principles and policies in conformity with those used to
prepare the December 31, 2010 year-end historical financial

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statements of Holdings and its
Subsidiaries referred to in Section 8.05(a) (“Existing GAAP”) (ii) notwithstanding
anything to the contrary contained herein, all such financial statements shall be prepared, and all
financial covenants contained herein or in any other Credit Document shall be calculated, in each
case, without giving effect to any election under FASB ASC 825 (or any similar accounting
principle) permitting a Person to value its financial liabilities at the fair value thereof, (iii)
to the extent expressly provided herein, certain calculations shall be made on a Pro Forma
Basis, (iv) for the period from the Initial Borrowing Date through and including the Existing
Holdings Notes Redemption Date, all computations and all definitions (including accounting terms)
used in determining the Applicable Margins and the Incremental Commitment Requirements and
compliance with Sections 2.17(a), 9.15, 10.03(vi), 10.03(vii),
10.04(xi), 10.05(xiv), 10.08(i)(y), 10.08(i)(z) and 10.07
shall be calculated as if the Existing Holdings Notes were not outstanding and as if there was no
interest expense associated therewith, and (v) for the avoidance of doubt, all operating lease
expense and other liabilities with respect to leases of Holdings and its Subsidiaries that would
constitute operating leases under Existing GAAP shall not be included in the calculations of
Indebtedness, Capital Expenditures or Consolidated Interest Expense hereunder.

          (b) All computations of interest, Commitment Commission and other Fees hereunder shall be made
on the basis of a year of 360 days (except for interest calculated by reference to the Prime
Lending Rate, which shall be based on a year of 365 or 366 days, as applicable) for the actual
number of days (including the first day but excluding the last day; except that in the case of
Letter of Credit Fees and Facing Fees, the last day shall be included) occurring in the period for
which such interest, Commitment Commission or Fees are payable.

          13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN CERTAIN OF THE SECURITY DOCUMENTS,
BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW
YORK, IN EACH CASE WHICH ARE LOCATED IN THE
COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT,
EACH OF HOLDINGS AND THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH
OF HOLDINGS AND THE BORROWER HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK
PERSONAL JURISDICTION OVER HOLDINGS OR THE BORROWER, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL
ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE
AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER HOLDINGS OR THE BORROWER.
EACH OF HOLDINGS AND THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY
OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE

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MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO HOLDINGS OR THE BORROWER AT ITS ADDRESS SET FORTH
OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH OF
HOLDINGS AND THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED
HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR
INEFFECTIVE. NOTHING HEREIN, HOWEVER, SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT, ANY
LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST HOLDINGS OR THE BORROWER IN ANY OTHER
JURISDICTION.

          (b) EACH OF HOLDINGS AND THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED
TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN
ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

          (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          13.09 Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto
on separate counterparts, each of which when so executed and delivered shall be an original, but
all of which shall together constitute one and the same instrument. A set of counterparts executed
by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.

          13.10 Effectiveness. This Agreement shall become effective on the date (the “Effective Date”) on which
Holdings, the Borrower, the Administrative Agent and each of the Lenders shall have signed a
counterpart hereof (whether the same or different counterparts) and shall have delivered the same
to the Administrative Agent at the Notice Office or, in the case of the Lenders, shall have given
to the Administrative Agent telephonic (confirmed in writing), written or telex notice (actually
received) at such office that the same has been signed and mailed to it. The Administrative Agent
will give Holdings, the Borrower and each Lender prompt written notice of the occurrence of the
Effective Date.

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          13.11 Headings Descriptive. The headings of the several sections and subsections of this Agreement are inserted for
convenience only and shall not in any way affect the meaning or construction of any provision of
this Agreement.

          13.12 Amendment or Waiver; etc. (a) Neither this Agreement nor any other Credit Document nor any terms hereof or thereof may
be changed, waived, discharged or terminated unless such change, waiver, discharge or termination
is in writing signed by the respective Credit Parties party hereto or thereto and the Required
Lenders (although additional parties (other than foreign borrowers) may be added to (and annexes
may be modified to reflect such additions), and Subsidiaries of the Borrower may be released from
the Subsidiaries Guaranty and the Security Documents in accordance with the provisions hereof and
thereof without the consent of the other Credit Parties party thereto or the Required Lenders),
provided that no such change, waiver, discharge or termination shall, without the consent
of each Lender (other than, except with respect to following clause (i), a Defaulting Lender) (with
Obligations being directly affected in the case of following clause (i) or whose Obligations are
being extended in the case of following clause (i)(x)), (i)(x) extend the final scheduled maturity
of any Loan or Note or extend the stated expiration date of any Letter of Credit beyond the
Revolving Loan Maturity Date, (y) reduce the amount of, or extend the date of, any Scheduled Term
Loan Repayment in respect of the applicable Tranche of Term Loans, or (z) reduce the rate or extend
the time of payment of interest or Fees thereon (except in connection with the waiver of
applicability of any post-default increase in interest rates), or reduce (or forgive) the principal
amount thereof (it being understood that any amendment or modification to the financial definitions
in this Agreement or to Section 13.07(a) shall not constitute a reduction in the rate of
interest or Fees for the purposes of this clause (i)), (ii) release all or substantially all of the
Collateral (except as expressly provided in the Credit Documents) under all the Security Documents,
(iii) release all or substantially all of the Guarantors (except as expressly provided in the
Credit Documents) from the Guaranties, (iv) amend, modify or waive
any provision of this Section 13.12(a) (except for technical amendments with respect to
additional extensions of credit pursuant to this Agreement which afford the protections to such
additional extensions of credit of the type provided to the Term Loans and the Revolving Loan
Commitments on the Effective Date), (v) reduce the “majority” voting threshold specified in the
definition of Required Lenders (it being understood that, with the consent of the Required Lenders,
additional extensions of credit pursuant to this Agreement may be included in the determination of
the Required Lenders on substantially the same basis as the extensions of Term Loans and Revolving
Loan Commitments are included on the Effective Date), or (vi) consent to the assignment or transfer
by Holdings or the Borrower of any of its rights and obligations under this Agreement; provided
further, that no such change, waiver, discharge or termination shall (1) increase the Commitments
of any Lender over the amount thereof then in effect without the consent of such Lender (it being
understood that waivers or modifications of conditions precedent, covenants, Defaults or Events of
Default or of a mandatory reduction in the Total Commitment or a mandatory repayment of Loans shall
not constitute an increase of the Commitment of any Lender, and that an increase in the available
portion of any Commitment of any Lender shall not constitute an increase of the Commitment of such
Lender), (2) except in cases where additional extensions of term loans and/or revolving loans are
being afforded substantially the same treatment afforded to the Term Loans and Revolving Loans
pursuant to this Agreement on the Effective Date, (x) with
out the consent of the Majority Lenders
of each Tranche which is being allocated a lesser prepayment, repayment or commitment reduction as
a result of the actions

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described below in this sub-clause (x), alter the required application of
any prepayments or repayments (or commitment reduction), as between the various Tranches, pursuant
to Section 5.01(a) or 5.02(g) (it being understood, however, that (a) the Required
Lenders may waive, in whole or in part, any such prepayment, repayment or commitment reduction, so
long as the application, as amongst the various Tranches, of any such prepayment, repayment or
commitment reduction which is still required to be made is not altered and (b) any conversion of
any Tranche of Loans into another Tranche of Loans hereunder in like principal amount shall not be
considered a “prepayment” or “repayment” for purposes of this clause (2)), (3) without the consent
of the Majority Lenders of each Tranche which is adversely affected by such amendment, amend the
definition of Majority Lenders (it being understood that with the consent of the Required Lenders,
additional extensions of credit pursuant to this Agreement may be included in the determination of
the Majority Lenders on substantially the same basis as the extensions of Term Loans and Revolving
Loan Commitments are included on the Effective Date), (4) without the consent of each Issuing
Lender, amend, modify or waive any provision of Section 3 or alter its rights or
obligations with respect to Letters of Credit, (5) without the consent of the Swingline Lender,
alter the Swingline Lender’s rights or obligations with respect to Swingline Loans, (6) without the
written consent of the Majority Lenders with Revolving Loans and/or Revolving Commitments, amend,
modify or waive any condition precedent set forth in Section 7 with respect to the making
of Revolving Loans, Swingline Loans or the issuance of Letters of Credit, (7) without the consent
of the Administrative Agent, amend, modify or waive any provision of Section 12 or any
other provision as same relates to the rights or obligations of the Administrative Agent, (8)
without the consent of the Collateral Agent, amend, modify or waive any provision relating to the
rights or obligations of the Collateral Agent, or (9) except as otherwise provided in this
Agreement (including, without limitation, pursuant to Sections 2.16, 2.17,
2.18, 4.02(b), 4.02(c), and 5.01(b)), with respect to any voluntary
or mandatory prepayment or repayment of the Loans of any Tranche pursuant to Section 5.01,
5.02(c), 5.02(d), 5.02(e) or 5.02(f), effect a non-pro
rata prepayment or repayment of such Loans of any Lender under such Tranche which would
result in any such Lender receiving less than its pro rata share thereof without
the consent of such Lender.

          (b) If, in connection with any proposed change, waiver, discharge or termination of any of the
provisions of this Agreement as contemplated by clauses (i) through (vi), inclusive, of the first
proviso to Section 13.12(a), the consent of the Required Lenders is obtained but the
consent of one or more of such other Lenders whose consent is required is not obtained, then the
Borrower shall have the right, so long as all non-consenting Lenders whose individual consent is
required are treated as described in either clause (A) or (B) below, to either (A) replace each
such non-consenting Lender or Lenders (or, at the option of the Borrower, if the respective
Lender’s consent is required with respect to less than all Tranches of Loans (or related
Commitments), to replace only the Revolving Loan Commitments and/or Loans of the respective
non-consenting Lender which gave rise to the need to obtain such Lender’s individual consent) with
one or more Replacement Lenders pursuant to Section 2.13 so long as at the time of such
replacement, each such Replacement Lender consents to the proposed change, waiver, discharge or
termination or (B) terminate such non-consenting Lender’s Revolving Loan Commitment (if such
Lender’s consent is required as a result of its Revolving Loan Commitment) and/or repay each
Tranche of outstanding Loans of such Lender which gave rise to the need to obtain such Lender’s
consent and/or cash collateralize its applicable RL Percentage of the Letter of Credit of
Outstandings in accordance with Sections 4.02(b) and/or 5.01(b), provided
that, unless the

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Commitments which are terminated and Loans which are repaid pursuant to preceding
clause (B) are immediately replaced in full at such time through the addition of new Lenders or the
increase of the Commitments and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to preceding clause (B), the
Required Lenders (determined after giving effect to the proposed action) shall specifically consent
thereto, provided further, that in any event the Borrower shall not have the right to replace a
Lender, terminate its Commitment or repay its Loans solely as a result of the exercise of such
Lender’s rights (and the withholding of any required consent by such Lender) pursuant to the
further proviso to Section 13.12(a).

          (c) Notwithstanding anything to the contrary contained in this Section 13.12, (x)
Security Documents and the Subsidiaries Guaranty, but only to the extent relating to the License
Subsidiary, may be modified with only the consent of the Administrative Agent and the Borrower as
contemplated by Section 9.12(e); (y) Security Documents (including any Additional Security
Documents) and related documents executed by Subsidiaries of the Borrower in connection with this
Agreement may be in a form reasonably determined by the Administrative Agent and may be amended,
supplemented and waived with the consent of the Administrative Agent and the Borrower without the
need to obtain the consent of any other Person if such amendment, supplement or waiver is delivered
in order (i) to comply with local law or advice of local counsel, (ii) to cure ambiguities,
omissions, mistakes or defects or (iii) to cause such Security Document or other document to be
consistent with this Agreement and the other Credit Documents and (z) if following the Effective
Date, the Administrative Agent and the Borrower shall have jointly identified an ambiguity,
inconsistency, obvious error or any error or omission of a technical or immaterial nature, in each
case, in any provision of the Credit Documents (other than the Security Documents), then the
Administrative Agent and the Credit Parties shall be permitted to amend such provision and such
amendment shall become effective without any
further action or consent of any other party to any Credit Documents if the same is not
objected to in writing by the Required Lenders within five (5) Business Days following receipt of
notice thereof.

          13.13 Survival. All indemnities set forth herein including, without limitation, in Sections 2.10,
2.11, 3.06, 5.04, 12.06 and 13.01 shall survive the
execution, delivery and termination of this Agreement and the Notes and the making and repayment of
the Obligations.

          13.14 Domicile of Loans. Each Lender may transfer and carry its Loans at, to or for the account of any office, Subsidiary
or Affiliate of such Lender. Notwithstanding anything to the contrary contained herein, to the
extent that a transfer of Loans pursuant to this Section 13.14 would, at the time of such
transfer, result in increased costs under Section 2.10, 2.11, 3.06 or
5.04 from those being charged by the respective Lender prior to such transfer, then the
Borrower shall not be obligated to pay such increased costs (although the Borrower shall be
obligated to pay any other increased costs of the type described above resulting from changes after
the date of the respective transfer).

          13.15 Register. The Borrower hereby designates the Administrative Agent to serve as its agent, solely for
purposes of this Section 13.15, to maintain a register (the “Register”) on which it
will record the Commitments from time to time of each of the Lenders, the Loans made by each of the
Lenders and each repayment in respect of the principal amount of

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the Loans of each Lender. Failure
to make any such recordation, or any error in such recordation, shall not affect the Borrower’s
obligations in respect of such Loans. With respect to any Lender, the transfer of the Commitments
of such Lender and the rights to the principal of, and interest on, any Loan made pursuant to such
Commitments shall not be effective until such transfer is recorded on the Register maintained by
the Administrative Agent with respect to ownership of such Commitments and Loans and prior to such
recordation all amounts owing to the transferor with respect to such Commitments and Loans shall
remain owing to the transferor. The registration of assignment or transfer of all or part of any
Commitments and Loans shall be recorded by the Administrative Agent on the Register only upon the
acceptance by the Administrative Agent of a properly executed and delivered Assignment and
Assumption Agreement pursuant to Section 13.04(b). Coincident with the delivery of such an
Assignment and Assumption Agreement to the Administrative Agent for acceptance and registration of
assignment or transfer of all or part of a Loan, or as soon thereafter as practicable, the
assigning or transferor Lender shall surrender the Note (if any) evidencing such Loan, and
thereupon one or more new Notes in the same aggregate principal amount shall be issued to the
assigning or transferor Lender and/or the new Lender at the request of any such Lender. The
Borrower agrees to indemnify the Administrative Agent from and against any and all losses, claims,
damages and liabilities of whatsoever nature which may be imposed on, asserted against or incurred
by the Administrative Agent in performing its duties under this Section 13.15,
provided that the Borrower will not be liable for any portion of such losses, claims,
damages or liabilities to the extent resulting from the Administrative Agent’s
gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a
final and non-appealable decision).

          13.16 Confidentiality. (a) Subject to the provisions of clause (b) of this Section 13.16, each Lender agrees
that it will not disclose without the prior consent of Holdings and the Borrower (other than to its
employees, auditors, advisors or counsel or to another Lender if such Lender or such Lender’s
holding or parent company in its sole discretion determines that any such party should have access
to such information, provided such Persons shall be subject to the provisions of this Section
13.16 to the same extent as such Lender) any information with respect to Holdings or any of its
Subsidiaries which is now or in the future furnished pursuant to this Agreement or any other Credit
Document, provided that any Lender may disclose any such information (i) as has become
generally available to the public other than by virtue of a breach of this Section 13.16(a)
by the respective Lender, (ii) as may be required or appropriate in any report, statement or
testimony submitted to any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal Deposit Insurance
Corporation or similar organizations (whether in the United States or elsewhere) or their
successors, (iii) as may be required or appropriate in respect to any summons or subpoena or in
connection with any litigation, (iv) in order to comply with any law, order, regulation or ruling
applicable to such Lender, (v) to the extent such information is received by the Administrative
Agent or Lender from a third party that is not known by the Administrative Agent or such Lender to
be subject to confidentiality arrangements to Holders or any of its Subsidiaries, (vi) to the
Administrative Agent or the Collateral Agent, (vii) to any direct or indirect contractual
counterparty in any swap, hedge or similar agreement (or to any such contractual counterparty’s
professional advisor), so long as such contractual counterparty (or such professional advisor)
agrees to be bound by the provisions of this Section 13.16, (viii) to any prospective or
actual transferee or participant in connection with any contemplated transfer or participation of
any of the Notes or Commitments or any interest therein by such Lender

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otherwise permitted by this
Agreement, provided that such prospective transferee agrees to be bound by the
confidentiality provisions contained in this Section 13.16, (ix) for purposes of
establishing a “due diligence” defense and (x) solely to the extent that such information is
independently developed by the Administrative Agent or such Lender.

          (b) Each of Holdings and the Borrower hereby acknowledges and agrees that each Lender may
share with any of its affiliates, and such affiliates may share with such Lender, any information
related to Holdings or any of its Subsidiaries (including, without limitation, any non-public
customer information regarding the creditworthiness of Holdings and its Subsidiaries), provided
such Persons shall be subject to the provisions of this Section 13.16 to the same extent as
such Lender.

          13.17 PATRIOT Act. Each Lender subject to the USA PATRIOT ACT (Title 111 of Pub. L. 109-177 (signed into law March
9, 2009) (as amended from time to time)) (the “PATRIOT Act”) hereby notifies the Borrower
that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record
information that identifies the Borrower and the other Credit Parties and other
information that will allow such Lender to identify the Borrower and the other Credit Parties in
accordance with the Patriot Act.

          13.18 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Credit Document), the
Borrower and each other Credit Party acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (i)(A) the arranging and other services regarding this Agreement provided by
the Administrative Agent and Lead Arrangers are arms-length commercial transactions between the
Borrower, each other Credit Party and their respective Affiliates, on the one hand, and the
Administrative Agent and the Lead Arrangers on the other hand, (B) each of the Borrower and each
other Credit Party has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate, and (C) the Borrower and each other Credit Party is capable of
evaluating, and understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other Credit Documents; (ii) (A) the Administrative Agent and the
Lead Arrangers are, and have been acting solely as a principal and, except as expressly agreed in
writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent
or fiduciary for the Borrower, any other Credit Party or any of their respective Affiliates, or any
other Person and (B) neither the Administrative Agent nor any Lead Arranger has any obligation to
the Borrower, any other Credit Party or any of their respective Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth herein and in the
other Credit Documents; and (iii) the Administrative Agent and the Lead Arrangers and their
respective Affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Borrower, the other Credit Parties and their respective Affiliates, and
neither the Administrative Agent nor any Lead Arranger has any obligation to disclose any of such
interests to the Borrower, any other Credit Party or any of their respective Affiliates. To the
fullest extent permitted by law, each of the Borrower and the other Credit Parties hereby waives
and releases any claims that it may have against the Administrative Agent and the Lead Arrangers
with respect to any breach or alleged breach of agency or finducary duty in connection with any
aspect of any transaction contemplated hereby.

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          13.19 Interest Rate Limitation. Notwithstanding anything to the contrary contained in
any Credit Document, the interest paid or agreed to be paid under the Credit Documents shall not
exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum
Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest
contracted for, charged or received by the Administrative Agent or a Lender exceeds the Maximum
Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that
is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate and spread in equal or
unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

     SECTION 14. Credit Agreement Parties Guaranty.

     14.01 Guaranty. In order to induce the Administrative Agent, the Collateral Agent, the Issuing Lenders and the
Lenders to enter into this Agreement and to extend credit hereunder, and to induce the other
Guaranteed Creditors to enter into Interest Rate Protection Agreements and Other Hedging Agreements
and in recognition of the direct benefits to be received by each Credit Agreement Party from the
proceeds of the Loans, the issuance of the Letters of Credit and the entering into of such Interest
Rate Protection Agreements and Other Hedging Agreements, each Credit Agreement Party hereby agrees
with the Guaranteed Creditors as follows: each Credit Agreement Party hereby unconditionally and
irrevocably guarantees as primary obligor and not merely as surety the full and prompt payment when
due, whether upon maturity, acceleration or otherwise, of any and all of the Guaranteed Obligations
to the Guaranteed Creditors. If any or all of the Guaranteed Obligations to the Guaranteed
Creditors becomes due and payable hereunder, each Credit Agreement Party, unconditionally and
irrevocably, promises to pay such indebtedness to the Administrative Agent and/or the other
Guaranteed Creditors, or order, on demand, together with any and all expenses which may be incurred
by the Administrative Agent and the other Guaranteed Creditors in collecting any of the Guaranteed
Obligations. If claim is ever made upon any Guaranteed Creditor for repayment or recovery of any
amount or amounts received in payment or on account of any of the Guaranteed Obligations and any of
the aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or
order of any court or administrative body having jurisdiction over such payee or any of its
property or (ii) any settlement or compromise of any such claim effected by such payee with any
such claimant (including any Guaranteed Party), then and in such event each Credit Agreement Party
agrees that any such judgment, decree, order, settlement or compromise shall be binding upon such
Credit Agreement Party, notwithstanding any revocation of this Credit Agreement Party Guaranty or
other instrument evidencing any liability of any other Guaranteed Party, and such Credit Agreement
Party shall be and remain liable to the aforesaid payees hereunder for the amount so repaid or
recovered to the same extent as if such amount had never originally been received by any such
payee.

          14.02 Bankruptcy. Additionally, each Credit Agreement Party unconditionally and irrevocably guarantees the payment
of any and all of the Guaranteed Obligations to the Guaranteed Creditors whether or not due or
payable by any Guaranteed Party upon the occurrence of any of the events specified in Section
11.05, and irrevocably and unconditionally

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promises to pay such indebtedness to the Guaranteed
Creditors, or order, on demand, in lawful money of the United States.

          14.03 Nature of Liability. The liability of each Credit Agreement Party hereunder is primary, absolute and unconditional,
exclusive and independent of any security for or other guaranty of the Guaranteed Obligations,
whether executed by such Credit Agreement Party, any other guarantor or by any other party, and the
liability of each Credit Agreement Party hereunder shall not be affected or impaired by (a) any
direction as to application of payment by any Guaranteed Party or by any other party, or
(b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or of
any other party as to the Guaranteed Obligations, or (c) any payment on or in reduction of any such
other guaranty or undertaking, or (d) any dissolution, termination or increase, decrease or change
in personnel by any Guaranteed Party, or (e) any payment made to any Guaranteed Creditor on the
Guaranteed Obligations which any such Guaranteed Creditor repays to any Guaranteed Party pursuant
to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceeding, and each Credit Agreement Party waives any right to the deferral or modification of its
obligations hereunder by reason of any such proceeding, or (f) any action or inaction by the
Guaranteed Creditors as contemplated in Section 14.05, or (g) any invalidity, irregularity
or enforceability of all or any part of the Guaranteed Obligations or of any security therefor.

          14.04 Independent Obligation. The obligations of each Credit Agreement Party hereunder are independent of the obligations of
any Guaranteed Party, any other guarantor, any other guarantor or any other Person, and a separate
action or actions may be brought and prosecuted against either Credit Agreement Party whether or
not action is brought against any Guaranteed Party, any other guarantor or any other Person and
whether or not any Guaranteed Party, any other guarantor or any other Person be joined in any such
action or actions. Each Credit Agreement Party waives, to the fullest extent permitted by law, the
benefit of any statute of limitations affecting its liability hereunder or the enforcement thereof.
Any payment by any Guaranteed Party with respect to any Guaranteed Obligations or other
circumstance which operates to toll any statute of limitations as to such Guaranteed Party shall
operate to toll the statute of limitations as to the relevant Credit Agreement Party.

          14.05 Authorization. Each Credit Agreement Party authorizes the Guaranteed Creditors without notice or demand (except
as shall be required by applicable statute and cannot be waived), and without affecting or
impairing its liability hereunder, from time to time to:

     (a) change the manner, place or terms of payment of, and/or change or extend the time
of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations
(including any increase or decrease in the principal amount thereof or the rate of interest
or fees thereon), any security therefor, or any liability incurred directly or indirectly in
respect thereof, and this Credit Agreement Party Guaranty shall apply to the Guaranteed
Obligations as so changed, extended, renewed or altered;

     (b) take and hold security for the payment of the Guaranteed Obligations and sell,
exchange, release, impair, surrender, realize upon or otherwise deal with in any manner and
in any order any property by whomsoever at any time pledged or mortgaged to secure, or
howsoever securing, the Guaranteed Obligations or any liabilities (including

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any of those
hereunder) incurred directly or indirectly in respect thereof or hereof, and/or any offset
thereagainst;

     (c) exercise or refrain from exercising any rights against any Guaranteed Party or
others or otherwise act or refrain from acting;

     (d) release or substitute any one or more endorsers, guarantors, any Guaranteed Party
or other obligors;

     (e) settle or compromise any of the Guaranteed Obligations, any security therefor or
any liability (including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and may subordinate the payment of all or any part thereof to the payment
of any liability (whether due or not) of any Guaranteed Party to their respective creditors
other than the Guaranteed Creditors;

     (f) apply any sums by whomsoever paid or howsoever realized to any liability or
liabilities of any Guaranteed Party to the Guaranteed Creditors regardless of what liability
or liabilities of such Guaranteed Party remain unpaid;

     (g) consent to or waive any breach of, or any act, omission or default under, this
Agreement, any other Credit Document, any Interest Rate Protection Agreement or any Other
Hedging Agreement or any of the instruments or agreements referred to herein or therein, or
otherwise amend, modify or supplement this Agreement, any other Credit Document, any
Interest Rate Protection Agreement or any Other Hedging Agreement or any of such other
instruments or agreements; and/or

     (h) take any other action which would, under otherwise applicable principles of common
law, give rise to a legal or equitable discharge of such Credit Agreement Party from its
liabilities under this Credit Agreement Party Guaranty.

          14.06 Reliance. It is not necessary for any Guaranteed Creditor to inquire into the capacity or powers of any
Guaranteed Party or the officers, directors, partners or agents acting or purporting to act on
their behalf, and any Guaranteed Obligations made or created in reliance upon the professed
exercise of such powers shall be guaranteed hereunder by the relevant Credit Agreement Party.

          14.07 Subordination. Any indebtedness of any Guaranteed Party now or hereafter owing to either Credit Agreement Party
is hereby subordinated to the Guaranteed Obligations of such Guaranteed Party owing to the
Guaranteed Creditors; and if the Administrative Agent so requests at a time when an Event of
Default exists, all such indebtedness of such Guaranteed Party to such Credit Agreement Party shall
be collected, enforced and received by such Credit Agreement Party for the benefit of the
Guaranteed Creditors and be paid over to the Administrative Agent on behalf of the Guaranteed
Creditors on account of the Guaranteed Obligations of such Guaranteed Party to the Guaranteed
Creditors, but without affecting or impairing in any manner the liability of either Credit
Agreement Party under the other provisions of this Credit Agreement Party Guaranty. Prior to the
transfer by either Credit Agreement Party to any Person (other than a Subsidiary Guarantor) of any
note or negotiable instrument evidencing any such indebtedness of any Guaranteed Party to such
Credit

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Agreement Party, such Credit
Agreement Party shall mark such note or negotiable instrument with a legend that the same is subject to this subordination. Without limiting the
generality of the foregoing, each Credit Agreement Party hereby agrees with the Guaranteed
Creditors that it will not exercise any right of subrogation which it may at any time otherwise
have as a result of this Credit Agreement Party Guaranty (whether contractual, under Section 509 of
the Bankruptcy Code or otherwise) until all Guaranteed Obligations have been irrevocably paid in
full in cash.

          14.08 Waiver. (a) Each Credit Agreement Party waives any right (except as shall be required by applicable
statute and cannot be waived) to require any Guaranteed Creditor to (i) proceed against any
Guaranteed Party, any other guarantor or any other party, (ii) proceed against or exhaust any
security held from any Guaranteed Party, any other guarantor or any other party or (iii) pursue any
other remedy in any Guaranteed Creditor’s power whatsoever. Each Credit Agreement Party waives any
defense based on or arising out of any defense of the any Guaranteed Party, any other guarantor or
any other party, other than payment of the Guaranteed Obligations to the extent of such payment,
based on or arising out of the disability of any Guaranteed Party, any other guarantor or any other
party, or the validity, legality or unenforceability of the Guaranteed Obligations or any part
thereof from any cause, or the cessation from any cause of the liability of the any Guaranteed
Party other than payment of the Guaranteed Obligations to the extent of such payment. The
Guaranteed Creditors may, at their election, foreclose on any security held by the Administrative
Agent, the Collateral Agent or any other Guaranteed Creditor by one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable (to the extent such
sale is permitted by applicable law), or exercise any other right or remedy the Guaranteed
Creditors may have against any Guaranteed Party or any other party, or any security, without
affecting or impairing in any way the liability of either Credit Party hereunder except to the
extent the Guaranteed Obligations of each Credit Agreement Party have been paid. Each Credit
Agreement Party waives any defense arising out of any such election by the Guaranteed Creditors,
even though such election operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of such Credit Agreement Party against any Guaranteed Party or
any other party or any security.

          (b) Each Credit Agreement Party waives all presentments, demands for performance, protests and
notices, including without limitation notices of nonperformance, notices of protest, notices of
dishonor, notices of acceptance of this Credit Agreement Party Guaranty, and notices of the
existence, creation or incurring of new or additional Guaranteed Obligations. Each Credit
Agreement Party assumes all responsibility for being and keeping itself informed of the each
Guaranteed Party’s financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks
which each Credit Agreement Party assumes and incurs hereunder, and agrees that neither the
Administrative Agent nor any of the other Guaranteed Creditors shall have any duty to advise such
Credit Agreement Party of information known to them regarding such circumstances or risks.

          (c) Until such time as the Guaranteed Obligations have been paid in full in cash, each Credit
Agreement Party hereby waives all rights of subrogation which it may at any time otherwise have as
a result of this Credit Agreement Party Guaranty (whether contractual,
under Section 509 of the Bankruptcy Code, or otherwise) to the claims of the Guaranteed

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Creditors against any other guarantor of the Guaranteed Obligations and all contractual, statutory
or common law rights of reimbursement, contribution or indemnity from any Guaranteed Party or any
other guarantor which it may at any time otherwise have as a result of this Credit Agreement Party
Guaranty.

          14.09 Payments. All payments made by either Credit Agreement Party pursuant to this Section 14 shall be
made in Dollars and will be made without setoff, counterclaim or other defense, and shall be
subject to the provisions of Sections 5.03 and 5.04.

          14.10 Maximum Liability. It is the desire and intent of the Credit Agreement Parties and the Guaranteed Creditors that
this Credit Agreement Party Guaranty shall be enforced against each Credit Agreement Party to the
fullest extent permissible under the laws and public policies applied in each jurisdiction in which
enforcement is sought. If, however, and to the extent that, the obligations of the Credit
Agreement Parties under this Credit Agreement Party Guaranty shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers), then the amount of such Credit
Agreement Party’s obligations under this Credit Agreement Party Guaranty shall be deemed to be
reduced and such Credit Agreement Party shall pay the maximum amount of the Guaranteed Obligations
which would be permissible under applicable law.

*     *     *

-145-

 

          IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute
and deliver this Agreement as of the date first above written.

Address:

	 	 	 	 	 

	5 Penn Plaza	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.
	4th Floor

	 	 	 	 
	New York, New York 10001

	 	By:	 	/s/ Daniel G. Gallagher
	 

	 	 	 	 
	Attention: Dan Gallagher

	 	 	 	Name: Daniel G. Gallagher
	Tel. No.: (212) 246-6700
	 	 	 	Title: Chief Financial Officer
	Fax No.: (212) 246-8422
	 	 	 	 
	 
	 	 	 	 
	5 Penn Plaza	 	TOWN SPORTS INTERNATIONAL, LLC
	4th Floor

	 	 
	 	 
	New York, New York 10001

	 	By:
	 	/s/ Daniel G. Gallagher
	 

	 	 	 	 
	Attention: Dan Gallagher

	 	 	 	Name: Daniel G. Gallagher
	Tel. No.: (212) 246-6700
	 	 	 	Title: Chief Financial Officer
	Fax No.: (212) 246-8422
	 	 	 	 

Signature page to Town Sports Credit Agreement — 2011

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, Individually and as Administrative Agent

 	 
	 	By:  	/s/ Carin Keegan
 	 
	 	 	Name:  	Carin Keegan 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Enrique Landaeta
 	 
	 	 	Name:  	Enrique Landaeta 	 
	 	 	Title:  	Vice President 	 
	 

Signature page to Town Sports Credit Agreement — 2011

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature page to Town Sports Credit Agreement — 2011

 

 

	 	 	 	 	 
	 	SIGNATURE PAGE TO THE CREDIT
 AGREEMENT, DATED AS OF THE DATE FIRST
 WRITTEN
ABOVE, AMONG TOWN SPORTS
 INTERNATIONAL HOLDINGS, INC., TOWN
 SPORTS
INTERNATIONAL, LLC, THE LENDERS
 PARTY HERETO FROM TIME TO TIME, AND
 DEUTSCHE
BANK TRUST COMPANY
 AMERICAS, AS ADMINISTRATIVE AGENT

 	 
	 	 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature page to Town Sports Credit Agreement — 2011

 

 

SCHEDULE I

COMMITMENTS

	 	 	 	 	 	 	 	 	 
	 	 	Initial Term Loan	 	 
	Lenders	 	Commitment	 	Revolving Loan Commitment
	Deutsche Bank Trust Company Americas
	 	$	300,000,000	 	 	$	22,500,000	 
	KeyBank National Association
	 	$	0	 	 	$	22,500,000	 
	Bank of America, N.A.
	 	$	0	 	 	$	5,000,000	 
	 
	Total
	 	$	300,000,000	 	 	$	50,000,000	 

 

 

SCHEDULE II

LENDER ADDRESSES

	 	 	 
	Lenders	 	Addresses
	Deutsche Bank Trust Company Americas

	 	60 Wall Street
	 

	 	New York, NY 10005
	 

	 	Attn: Carin Keegan
	 

	 	Tel: 212-250-6083
	 

	 	Fax: 212-797-5690
	 

	 	e-mail: carin.keegan@db.com
	 
	 	 
	KeyBank National Association

	 	127 Public Square
	 

	 	Cleveland, Ohio 44114
	 

	 	Attn: Shibani Faehnle
	 

	 	Tel: 216-689-0459
	 

	 	Fax: 216-689-4981
	 

	 	e-mail: Shibani_Faehnle@KeyBank.com
	 
	Bank of America, N.A.

	 	One Bryant Park
	 

	 	32nd Floor
	 

	 	New York, NY 10036
	 

	 	Tel: 646-855-2332
	 

	 	Fax: 646-855-1545
	 

	 	E-mail: jana.l.baker@baml.com

 

 

SCHEDULE III

EXISTING LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Town Sports International, LLC	 	As of:	 	 	 	 	 	 	 	 
	Standby Letters of Credit	 	May 11, 2011	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Deutsche	 
	Beneficiary
	 	($) Amount	 	 	Expiration Date	 	 	Bank Ref No.	 
	 
	117 Seventh Ave South Property Co.
	 	 	50,000.00	 	 	 	1/6/12	 	 	 	s-11684	 
	ZKZ Assoc Ltd.
	 	 	100,000.00	 	 	 	8/31/11	 	 	 	s-11801	 
	Lowell Street Investments LLC
	 	 	131,250.00	 	 	 	7/12/11	 	 	 	s-13745	 
	Three Park Ave Bldg Co., LP
	 	 	200,000.00	 	 	 	8/7/11	 	 	 	s-14234	 
	President & Fellows of Harvard College
	 	 	221,000.00	 	 	 	8/12/11	 	 	 	s-15980	 
	4830 Realty Associates
	 	 	31,898.79	 	 	 	9/17/11	 	 	 	s-16056	 
	Zurich American Insurance Co.
	 	 	750,000.00	 	 	 	5/31/11	 	 	 	s-17112	 
	Well-Prop (Multi) LLC
	 	 	159,746.45	 	 	 	7/31/11	 	 	 	s-17178	 
	202 Main Ave LLC
	 	 	43,425.00	 	 	 	7/31/11	 	 	 	s-17181	 
	Zurich American Insurance Company
	 	 	2,000,000.00	 	 	 	6/13/11	 	 	 	s-17575	 
	Madison 1657 Realty Inc.
	 	 	119,387.00	 	 	 	7/8/11	 	 	 	s-17576	 
	Zurich American Insurance Company
	 	 	2,250,000.00	 	 	 	7/29/11	 	 	 	s-17985	 
	TIAA-CREF
	 	 	300,000.00	 	 	 	1/8/12	 	 	 	s-18128	 
	RLI Insurance Company
	 	 	1,300,000.00	 	 	 	2/17/12	 	 	 	s-18240	 
	400 Metronorth Corporate Center LLC
	 	 	893,753.00	 	 	 	1/15/12	 	 	 	s-18499	 
	Commonwealth of Virginia, Dept of Agric.
	 	 	300,000.00	 	 	 	7/1/11	 	 	 	s-18786	 
	State of Maryland, Consumer Protection Div.
	 	 	200,000.00	 	 	 	9/1/11	 	 	 	s-18875	 
	State of Maryland, Consumer Protection Div.
	 	 	200,000.00	 	 	 	9/1/11	 	 	 	s-18876	 
	State of Maryland, Consumer Protection Div.
	 	 	200,000.00	 	 	 	9/1/11	 	 	 	s-18877	 
	State of Maryland, Consumer Protection Div.
	 	 	200,000.00	 	 	 	9/1/11	 	 	 	s-18878	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	9,650,460.24	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

SCHEDULE IV

SCHEDULE OF OWNED REAL PROPERTY

	 	 	 
	Entity
	 	Location
	TSI East 86, LLC

	 	151 East 86th Street
	 

	 	New York, NY 10028

 

 

SCHEDULE V

PLANS

Town Sports International 401(K) Plan

 

 

SCHEDULE VI

SUBSIDIARIES

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner	 	Ownership
	Town Sports International, LLC

	 	Town Sports International
Holdings, Inc.
	 	 	100	%
	TSI 217 Broadway, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Alexandria West, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Allston, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Arthro-Fitness Services, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Astoria, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Battery Park, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Bay Ridge 86th Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Bayridge, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Bensonhurst, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Boylston, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Broadway, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Brooklyn Belt, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Brunswick, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Bulfinch, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Carmel, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Cash Management, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Central Square, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Cobble Hill, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Commack, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Court Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Croton, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Danbury, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Deer Park, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Dobbs Ferry, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Downtown Crossing, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 23, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 31, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 34, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 36, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 41, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 48, LLC

	 	Town Sports International, LLC
	 	 	100	%

 

 

Page 2

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner
	 	Ownership
	TSI East 51, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 59, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 76, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 86, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East 91, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East Brunswick, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI East Meadow, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Fenway, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI First Avenue, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Forest Hills, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Garden City, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Garnerville, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Glendale, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Grand Central, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Great Neck, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Greenwich, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Hartsdale, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Hawthorne, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Herald, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Hicksville, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (CIP), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (DC), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (MA), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (MD), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (NJ), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (PA), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Holdings (VA), LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Huntington, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Insurance, Inc.

	 	Town Sports International, LLC
	 	 	100	%
	TSI International, Inc.

	 	Town Sports International, LLC
	 	 	100	%
	TSI Irving Place, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Jamaica Estates, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Larchmont, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Lincoln, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Long Beach, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Mamaroneck, LLC

	 	Town Sports International, LLC
	 	 	100	%

 

 

Page 3

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner
	 	Ownership
	TSI Mercer Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Midwood, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Morris Park, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Murray Hill, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Nanuet, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Natick, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI New Rochelle, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Newbury Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Norwalk, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Oceanside, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Port Jefferson, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Providence Downtown, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Providence Eastside, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Reade Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Rego Park, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Scarsdale, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Seaport, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Sheridan, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Smithtown, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Soho, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Somers, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI South Park Slope, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Stamford Downtown, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Stamford Post, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Stamford Rinks, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Staten Island, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Sunnyside, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Syosset, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Varick Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Wall Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Water Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 14, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 16, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 23, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 38, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 41, LLC

	 	Town Sports International, LLC
	 	 	100	%

 

 

Page 4

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner
	 	Ownership
	TSI West 44, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 48, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 52, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 73, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 76, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 80, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 94, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 115th Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 125, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West 145th Street, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West Hartford, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West Newton, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI West Nyack, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Westborough, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Westport, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Weymouth, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI White Plains City Center, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI White Plains, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Whitestone, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Woodmere, LLC

	 	Town Sports International, LLC
	 	 	100	%
	TSI Princeton, LLC

	 	TSI Brunswick, LLC
	 	 	100	%
	TSI Chevy Chase, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Columbia Heights, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Connecticut Avenue, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Dupont Circle, Inc.

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Dupont II, INC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI F Street, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Gallery Place, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Georgetown, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Glover, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI K Street, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI M Street, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI University Management, LLC

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Washington, Inc.

	 	TSI Holdings (DC), LLC
	 	 	100	%
	TSI Andover, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Davis Square, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%

 

 

Page 5

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner
	 	Ownership
	TSI Dedham, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Framingham, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Franklin (MA), LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Lexington (MA), LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Lynnfield, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Newton, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI South End, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI South Station, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Waltham, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Watertown, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Wayland, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Wellesley, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Wellington Circle, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Woburn, LLC

	 	TSI Holdings (MA), LLC
	 	 	100	%
	TSI Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	 	100	%
	TSI Germantown, LLC

	 	TSI Holdings (MD), LLC
	 	 	100	%
	TSI North Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	 	100	%
	TSI Silver Spring, LLC

	 	TSI Holdings (MD), LLC
	 	 	100	%
	TSI South Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	 	100	%
	TSI Bayonne, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Butler, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Cherry Hill, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Clifton, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Colonia, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Englewood, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Fort Lee, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Franklin Park, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Freehold, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Hoboken, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Hoboken North, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Jersey City, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Livingston, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Mahwah, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Marlboro, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Matawan, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Montclair, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%

 

 

Page 6

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	Legal
Entity Name
	 	Owner
	 	Ownership
	TSI Newark, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI No Sweat, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Old Bridge, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Parsippany, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Plainsboro, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Princeton North, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Ramsey, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Ridgewood, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Somerset, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Springfield, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI West Caldwell, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Westwood, LLC

	 	TSI Holdings (NJ), LLC
	 	 	100	%
	TSI Ardmore, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Highpoint, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Market Street, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Radnor, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Rodin Place, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Society Hill, LLC

	 	TSI Holdings (PA), LLC
	 	 	100	%
	TSI Alexandria, LLC

	 	TSI Holdings (VA), LLC
	 	 	100	%
	TSI Clarendon, LLC

	 	TSI Holdings (VA), LLC
	 	 	100	%
	TSI Fairfax, LLC

	 	TSI Holdings (VA), LLC
	 	 	100	%
	TSI Sterling, LLC

	 	TSI Holdings (VA), LLC
	 	 	100	%
	TSI West Springfield, LLC

	 	TSI Holdings (VA), LLC
	 	 	100	%
	TSI Holdings (IP), LLC

	 	TSI Insurance, Inc.
	 	 	100	%
	Town Sports AG

	 	TSI International, Inc.
	 	 	100	%

 

 

SCHEDULE VII

EXISTING INDEBTEDNESS

     None.

 

 

SCHEDULE VIII

INSURANCE

	 	 	 	 	 	 	 	 	 
	Coverage	 	Limit	 	Deductible
	Workers Compensation

	 	Coverage A	 	 	 	 	 	 
	 

	 	Statutory
	 	WC	 	 	 	 
	 	 	 	 	 	 	o   Guaranteed Cost
	 

	 	Coverage D
	 	EL	 	 	 	 
	 

	 	o   $1,000,000
	 	per accident	 	 	 	 
	 

	 	o   $1,000,000
	 	policy limit disease	 	 	 	 
	 

	 	o   $1,000,000
	 	each employee

disease	 	 	 	 
	 

	 	Included
	 	Stop Gap	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	General Liability

	 	o   $500,000

	 	Each Occurrence

	 	o   $500,000 SIR per Occurrence
	 

	 	o   $2,000,000

o   $20,000,000

o   500,000 Om /

       2,000,000 Agg.

o   $500,000
	 	General Agg. Per
Location 

General Agg. Limit

Products & Completed
Operations 

Personal / Adv. lnj.
	 	
o   ALAE erodes retention / does not

erode the policy limit

o   $50,000 Deductible per Occurrence for

Professional Liability
$200,000 Aggregate Stop Loss

	 

	 	o   $500,000
	 	Fire Damage	 	 	 	 
	 

	 	o   $2,500
	 	Medical Expense	 	 	 	 
	 

	 	o   $500,000
	 	Employee Benefits

Liability Occ & Agg

(Claims Made)	 	 	 	 
	 

	 	o   $500,000
	 	Rented Property Premises	 	 	 	 
	 

	 	o   $500,000
	 	Contractual Indemnification Policy	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Auto Liability

	 	o   $1,000,000
	 	CSL
	 	       Liability	 	 
	 

	 	o   $1,000,000
	 	UMIUIM
	 	o   Nil	 	 
	 

	 	o   $10,000
	 	Med Pay	 	 	 	 
	 

	 	o   Statutory
	 	PIP
	 	       Physical Damage
 	 	 
	 

	 	 	 	 	 	o   Autos under $40K:	 	 
	 

	 	 	 	 	 	       $500 
	 	Comp
	 

	 	 	 	 	 	       $500 
	 	Coll
	 

	 	 	 	 	 	o   Autos over $40K:	 	 
	 

	 	 	 	 	 	       $1,500 
	 	Comp
	 

	 	 	 	 	 	       $1,500 
	 	Coll
	 
	 	 	 	 	 	 	 	 
	Umbrella

	 	$10,000,000 
	 	occlagg
	 	o   $10,000
	 	SIR
	 
	 	 	 	 	 	 	 	 
	Foreign Liability DIC

	 	o   $1,000,000
	 	GL Occ/Agg.
	 	o   $1,000
	 	EBL
	 

	 	o   $1,000,000
	 	Auto DIC
	 	o   $1,000
	 	Money/ Securities
	 

	 	o   $25,000
	 	Auto PD/each acc
	 	o   $50
	 	Medical Expense
	 

	 	o   State of hire
	 	WC	 	 	 	 
	 

	 	o   $1,000,000
	 	Employers Liability	 	 	 	 
	 

	 	o   $1,000,000
	 	Repatriation	 	 	 	 
	 

	 	o   $1,500,000
	 	AD&D	 	 	 	 
	 

	 	o   $1,000,000
	 	K&R	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Property

	 	       All Risk / BI / EE
	 	 	 	All Risk / BliEE	 	 
	 

	 	o   $25,000,000
	 	 	 	o   $25,000	 	 
	 

	 	       Major Sublimits
	 	 	 	       Earthquake	 	 
	 

	 	 	 	 	 	o   $25,000	 	 
	 

	 	       Earthquake
	 	 	 	       CA Earthquake	 	 
	 

	 	o   $25,000,000
	 	EQ Ann/Agg except
	 	o   N/A	 	 
	 

	 	o   Excluded
	 	CA Earthquake
	 	       Transit	 	 
	 

	 	 	 	 	 	o   $25,000	 	 
	 

	 	       Flood
	 	 	 	       Named Windstorm	 	 
	 

	 	 	 	 	 	       3% TIV 100k	 	 
	 

	 	o    $25,000,000
	 	Flood Ann/Agg except
	 	o   min	 	 

 

 

	 	 	 	 	 	 	 	 	 
	Coverage	 	Limit	 	Deductible
	 

	 	o   $2,500,000
	 	Flood Zone AN Agg.	 	 	 	 
	 

	 	       Named Windstorm
	 	 	 	Flood	 	 
	 

	 	o   $25,000,000
	 	Windstorm Agg
	 	o   $25,000
	 	Except
	 
	 	 	 	 	 	 	 	 
	 

	 	       Terrorism-Sabotage
	 	 	 	Flood Zone AN	 	 
	 

	 	o   $75,000,000
	 	Each Occurrence-Property Coverage
	 	o   5% TIV 250k min	 	 
	 

	 	o   200,000,000	 	Sabotage and Terrorism	 	Terrorism-Sabotage	 	 
	 

	 	 
	 	 	 	o   $25,000	 	 Each Occurrence
	 

	 	       Other Major Sublimits
	 	 	 	 	 	 
	 

	 	o   $750,000
	 	Transit
	 	 	 	 
	 

	 	o   $10,000,000
	 	Automatic Acquisition	 	 	 	 
	 

	 	o   $5,000,000
	 	Unnamed Locations	 	 	 	 
	 

	 	o   $5,000,000
	 	E&O	 	 	 	 
	 

	 	o   $10,000,000
	 	Contingent BVEE	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Boiler & Machinery

	 	o   $25,000,000
	 	Combined PD/BVEE
	 	o   $25,000
	 	PD/BVEE
	 
	 	 	 	 	 	 	 	 
	 

	 	Sublimits	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	o   $1,000,000
	 	Ammonia Cont	 	 	 	 
	 

	 	o   $5,000,000
	 	Water Damage	 	 	 	 
	 

	 	o   $1,000,000
	 	Spoilage	 	 	 	 
	 

	 	o   $1,000,000
	 	Haz Subs	 	 	 	 
	 

	 	o   $5,000,000
	 	Ordinance or Law	 	 	 	 
	 

	 	o   $5,000,000
	 	Media	 	 	 	 
	 

	 	o   $5,000,000
	 	Brands & Labels	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Directors and Officers

	 	o   $25,000,000
	 	Traditional D&O
	 	o   $500,000
	 	Securities
	 

	 	o   $10,000,000
	 	Side A DC Only
	 	o   $250,000
	 	All other claims
	 
	 	 	 	 	 	 	 	 
	Employment Practices Liability

	 	o   $10,000,000
	 	 	 	o   $250,000
	 	SIR
	 
	 	 	 	 	 	 	 	 
	Fiduciary

	 	o   $3,000,000
	 	 	 	o   $10,000	 	 
	 
	 	 	 	 	 	 	 	 
	Crime

	 	o   $5,000,000
	 	 	 	o   $50,000	 	 

 

 

SCHEDULE IX

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION

(AND WHETHER A REGISTERED ORGANIZATION AND/OR

A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION,

LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	Town Sports International Holdings, Inc.
	 	Corporation	 	Yes	 	Delaware	 	Delaware	 	3754592	 	No
	Town Sports International, LLC
	 	Limited Liability Company	 	Yes	 	New York	 	New York	 	None	 	No
	TSI 217 Broadway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268991	 	No
	TSI Alexandria, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2901743	 	No
	TSI Alexandria West, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4330291	 	No
	TSI Allston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3899539	 	No
	TSI Andover, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269134	 	No
	TSI Ardmore, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3387908	 	No
	TSI Arthro-Fitness Services, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268994	 	No
	TSI Astoria, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268995	 	No
	TSI Battery Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268998	 	No

 

 

Page 2

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Bay Ridge 86th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269108	 	No
	TSI Bayonne, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4536496	 	No
	TSI Bayridge, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269001	 	No
	TSI Bensonhurst, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4416091	 	No
	TSI Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3018449	 	No
	TSI Boylston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269330	 	No
	TSI Broadway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269002	 	No
	TSI Brooklyn Belt, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269004	 	No
	TSI Brunswick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4282150	 	No
	TSI Bulfinch, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3899536	 	No
	TSI Butler, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4239615	 	No
	TSI Carmel, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269111	 	No
	TSI Cash Management, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269009	 	No
	TSI Central Square, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3899543	 	No

 

 

Page 3

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Cherry Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3040637	 	No
	TSI Chevy Chase, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269632	 	No
	TSI Clarendon, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3317876	 	No
	TSI Clifton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4195613	 	No
	TSI Cobble Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269013	 	No
	TSI Colonia, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928572	 	No
	TSI Columbia Heights, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269691	 	No
	TSI Commack, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269015	 	No
	TSI Connecticut Avenue, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269736	 	No
	TSI Court Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269017	 	No
	TSI Croton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269019	 	No
	TSI Danbury, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269758	 	No
	TSI Davis Square, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4160261	 	No
	TSI Dedham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4510871	 	No

 

 

Page 4

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Deer Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4364946	 	No
	TSI Dobbs Ferry, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269114	 	No
	TSI Downtown Crossing, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269741	 	No
	TSI Dupont Circle, Inc.
	 	Corporation	 	Yes	 	Delaware	 	Delaware	 	2220114	 	No
	TSI Dupont II, Inc.
	 	Corporation	 	Yes	 	Delaware	 	Delaware	 	2439444	 	No
	TSI East 23, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269027	 	No
	TSI East 31, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269030	 	No
	TSI East 34, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269032	 	No
	TSI East 36, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269035	 	No
	TSI East 41, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269039	 	No
	TSI East 48, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269115	 	No
	TSI East 51, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269041	 	No
	TSI East 59, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269047	 	No
	TSI East 76, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269049	 	No

 

 

Page 5

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI East 86, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269119	 	No
	TSI East 91, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269051	 	No
	TSI East Brunswick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4343405	 	No
	TSI East Meadow, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269024	 	No
	TSI Englewood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4099792	 	 
	TSI F Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269753	 	No
	TSI Fairfax, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2951887	 	No
	TSI Fenway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3899546	 	No
	TSI First Avenue, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269053	 	No
	TSI Forest Hills, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269055	 	No
	TSI Fort Lee, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2900457	 	No
	TSI Framingham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269136	 	No
	TSI Franklin (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269138	 	No

 

 

Page 6

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Franklin Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928574	 	No
	TSI Freehold, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3057259	 	No
	TSI Gallery Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269770	 	No
	TSI Garden City, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269057	 	No
	TSI Garnerville, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4376082	 	No
	TSI Georgetown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269763	 	No
	TSI Germantown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2916539	 	No
	TSI Glendale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269128	 	No
	TSI Glover, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269240	 	No
	TSI Grand Central, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269060	 	No
	TSI Great Neck, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269061	 	No
	TSI Greenwich, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269761	 	No
	TSI Hartsdale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269062	 	No
	TSI Hawthorne, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269066	 	No

 

 

Page 7

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Herald, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269068	 	No
	TSI Hicksville, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4257117	 	No
	TSI Highpoint, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3140945	 	No
	TSI Hoboken, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3057253	 	No
	TSI Hoboken North, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3773429	 	No
	TSI Holdings (CIP), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269773	 	No
	TSI Holdings (DC), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268598	 	No
	TSI Holdings (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268036	 	No
	TSI Holdings (MD), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268623	 	No
	TSI Holdings (NJ), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3744923	 	No
	TSI Holdings (PA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268627	 	No
	TSI Holdings (VA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268618	 	No
	TSI Huntington, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268974	 	No
	TSI International, Inc.
	 	Corporation	 	Yes	 	Delaware	 	Delaware	 	2141083	 	No
	TSI Irving Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268978	 	No

 

 

Page 8

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Jamaica Estates, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4402223	 	No
	TSI Jersey City, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3525625	 	No
	TSI K Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269781	 	No
	TSI Larchmont, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268983	 	No
	TSI Lexington (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269142	 	No
	TSI Lincoln, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268985	 	No
	TSI Livingston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3305800	 	No
	TSI Long Beach, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268987	 	No
	TSI Lynnfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269143	 	No
	TSI M Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269776	 	No
	TSI Mahwah, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2905457	 	No
	TSI Mamaroneck, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268989	 	No
	TSI Market Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3123380	 	No
	TSI Marlboro, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3057264	 	No

 

 

Schedule IX

Page 9

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Matawan, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3057208	 	No
	TSI Mercer Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268990	 	No
	TSI Midwood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4268993	 	No
	TSI Montclair, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3235308	 	No
	TSI Morris Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269130	 	No
	TSI Murray Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269000	 	No
	TSI Nanuet, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269005	 	No
	TSI Natick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269786	 	No
	TSI New Rochelle, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4290057	 	No
	TSI Newark, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3548397	 	No
	TSI Newbury Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269793	 	No

 

 

Page 10

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Newton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4188428	 	No
	TSI No Sweat, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4071998	 	No
	TSI North Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3018427	 	No
	TSI Norwalk, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269791	 	No
	TSI Oceanside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269012	 	No
	TSI Old Bridge, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3057213	 	No
	TSI Parsippany, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928568	 	No
	TSI Plainsboro, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928573	 	No
	TSI Port Jefferson, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269018	 	No
	TSI Princeton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2750867	 	No
	TSI Princeton North, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3946066	 	No
	TSI Providence Downtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4411647	 	No
	TSI Providence Eastside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4411648	 	No
	TSI Radnor, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4034032	 	No

 

 

Page 11

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Ramsey, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3138497	 	No
	TSI Reade Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269021	 	No
	TSI Rego Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269031	 	No
	TSI Ridgewood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3386883	 	No
	TSI Rodin Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3026591	 	No
	TSI Scarsdale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269037	 	No
	TSI Seaport, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269040	 	No
	TSI Sheridan, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269043	 	No
	TSI Silver Spring, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3296686	 	No
	TSI Smithtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269048	 	No
	TSI Society Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3026597	 	No
	TSI Soho, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269052	 	No

 

 

Page 12

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI Somers, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269058	 	No
	TSI Somerset, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928575	 	No
	TSI South Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3854033	 	No
	TSI South End, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269795	 	No
	TSI South Park Slope, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269064	 	No
	TSI South Station, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269797	 	No
	TSI Springfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928570	 	No
	TSI Stamford Downtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269799	 	No
	TSI Stamford Post, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269803	 	No
	TSI Stamford Rinks, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269807	 	No
	TSI Staten Island, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269070	 	No
	TSI Sterling, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2978316	 	No
	TSI Sunnyside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4324681	 	No
	TSI Syosset, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269074	 	No

 

 

Page 13

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI University Management, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269811	 	No
	TSI Varick Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269076	 	No
	TSI Wall Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269078	 	No
	TSI Waltham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3584187	 	No
	TSI Washington, Inc.
	 	Corporation	 	Yes	 	Delaware	 	Delaware	 	2195425	 	No
	TSI Water Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269087	 	No
	TSI Watertown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269336	 	No
	TSI Wayland, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4554568	 	No
	TSI Wellesley, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269148	 	No
	TSI Wellington Circle, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4160262	 	No
	TSI West 14, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269093	 	No
	TSI West 16, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269096	 	No
	TSI West 23, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269098	 	No
	TSI West 38, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269038	 	No

 

 

Page 14

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI West 41, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269045	 	No
	TSI West 44, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269054	 	No
	TSI West 48, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269067	 	No
	TSI West 52, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269073	 	No
	TSI West 73, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269077	 	No
	TSI West 76, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269080	 	No
	TSI West 80, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269085	 	No
	TSI West 94, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269086	 	No
	TSI West 115th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269131	 	No
	TSI West 125, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269090	 	No
	TSI West 145th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4239620	 	No
	TSI West Caldwell, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	2928566	 	No
	TSI West Hartford, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4411640	 	No
	TSI West Newton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269593	 	No

 

 

Page 15

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of Organization	 	Registered	 	 	 	 	 	Entity’s Organization	 	Transmitting
	Exact Legal Name of Each	 	(or, if the Entity is an	 	Organization?	 	Jurisdiction of	 	Entity’s Location (for purposes	 	Identification Number	 	Utility?
	Entity	 	Individual, so indicate)	 	(Yes/No)	 	Organization	 	of NY UCC § 9-307)	 	(or, if none, so indicate)	 	(Yes/No)
	TSI West Nyack, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269089	 	No
	TSI West Springfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3131927	 	No
	TSI Westborough, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4311117	 	No
	TSI Westport, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269809	 	No
	TSI Westwood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	3478988	 	No
	TSI Weymouth, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269814	 	No
	TSI White Plains City Center, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269095	 	No
	TSI White Plains, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269100	 	No
	TSI Whitestone, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269102	 	No
	TSI Woburn, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4411649	 	No
	TSI Woodmere, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	Delaware	 	4269106	 	No

 

 

SCHEDULE X

EXISTING LIENS

None.

 

 

SCHEDULE XI

EXISTING INVESTMENTS

The Borrower, through its subsidiary, TSI Washington, Inc., has an investment in Capital Hill
Squash Club Associates (“CHSA”). The Borrower also has an investment in Kalorama Sports
Management Associates (“KSMA”) through its indirect subsidiary TSI Dupont Circle, Inc. CHSA
and KSMA are health clubs in Washington, D.C. that operate under the Borrower’s “Washington Sports
Club” brand name. CHSA and KSMA have operations, which are similar, or related to, those of the
Borrower.

TSI Washington, Inc. has a limited partnership interest in CHSA, which provides TSI Washington,
Inc. with approximately 20% of the profits of CHSA, as defined in the limited partnership agreement
governing TSI Washington, Inc.’s investment in CHSA. TSI Dupont Circle, Inc. has a co-general
partnership and limited partnership interest in KSMA, which entitles TSI Dupont Circle, Inc. to
receive approximately 45% of the profits of KSMA, as defined in the limited partnership agreement
governing TSI Dupont Circle, Inc.’s investment in KSMA.

 

 

SCHEDULE XII

REVERSE DUTCH AUCTION PROCEDURES

This Schedule XII is intended to summarize certain basic terms of the reverse Dutch auction
procedures pursuant to and in accordance with the terms and conditions of Section 2.17 of
the Credit Agreement, of which this Schedule XII is a part. It is not intended to be a
definitive statement of all of the terms and conditions of a reverse Dutch auction, the definitive
terms and conditions for which shall be set forth in the applicable offering document. Any of the
terms set forth below may be modified solely with the consent of the Administrative Agent and the
Borrower to the extent not otherwise inconsistent with the provisions of Section 2.17 of
the Credit Agreement. None of the Administrative Agent, the Auction Manager, or any of their
respective affiliates or any officers, directors, employees, agents or attorneys-in-fact of such
Persons (together with the Administrative Agent and its affiliates, the “Agent-Related
Person”) makes any recommendation pursuant to any offering document as to whether or not any
Lender should sell its Term Loans to the Borrower pursuant to any offering documents, nor shall the
decision by the Administrative Agent, the Auction Manager or any other Agent-Related Person (or any
of their affiliates) in its respective capacity as a Lender to sell its Term Loans to the Borrower
be deemed to constitute such a recommendation. Each Lender should make its own decision on whether
to sell any of its Term Loans and, if it decides to do so, the principal amount of and price to be
sought for such Term Loans. In addition, each Lender should consult its own attorney, business
advisor or tax advisor as to legal, business, tax and related matters concerning each Auction and
the relevant offering documents. Capitalized terms not otherwise defined in this Schedule
XII have the meanings assigned to them in the Credit Agreement.

          (a) Notice Procedures. In connection with each Auction, the Borrower will provide notification to the Auction Manager
for distribution to the Lenders of the relevant Tranche of Term Loans (each, an “Auction
Notice”). Each Auction Notice shall contain (i) the maximum principal amount (calculated on
the face amount thereof) of Term Loans that the Borrower offers to purchase in such Auction (the
“Auction Amount”), which shall be no less than $25,000,000 (unless another amount is agreed
to by the Administrative Agent); (ii) the range of discounts to par (the “Discount Range”),
expressed as a range of prices per $1,000 (in increments of $5), at which the Borrower would be
willing to purchase Term Loans in such Auction; and (iii) the date on which such Auction will
conclude, on which date Return Bids (as defined below) will be due by 1:00 p.m. (New York time) (as
such date and time may be extended by the Auction Manager, such time the “Expiration
Time”). Such Expiration Time may be extended for a period not exceeding three (3) Business
Days upon notice by the Borrower to the Auction Manager received not less than 24 hours before the
original Expiration Time; provided that only one extension per offer shall be permitted.
An Auction shall be regarded as a “failed auction” in the event that either (x) the Borrower
withdraws such Auction in accordance with the terms hereof or (y) the Expiration Time occurs with
no Qualifying Bids (as defined below) having been received. In the event of a failed auction, the
Borrower shall not be permitted to deliver a new Auction Notice prior to the date occurring three
(3) Business Days after such withdrawal or Expiration Time, as the case may be. Notwithstanding
anything to the contrary contained herein, the Borrower shall not initiate any Auction by
delivering an Auction Notice to the Auction Manager until after the conclusion (whether successful
or failed) of the previous Auction (if any), whether such
conclusion occurs by withdrawal of such previous Auction or the occurrence of the Expiration Time
of such previous Auction.

 

 

Page 2

          (b) Reply Procedures. In connection with any Auction, each Lender of Term Loans of the applicable Tranche wishing to
participate in such Auction shall, prior to the Expiration Time, provide the Auction Manager with a
notice of participation, in the form included in the respective offering document (each, a
“Return Bid”) which shall specify (i) a discount to par that must be expressed as a price
per $1,000 (in increments of $5) in principal amount of Term Loans (the “Reply Price”)
within the Discount Range and (ii) the principal amount of Term Loans, in an amount not less than
$1,000,000 or an integral multiple of $1,000 in excess thereof, that such Lender offers for sale at
its Reply Price (the “Reply Amount”). A Lender may submit a Reply Amount that is less than
the minimum amount and incremental amount requirements described above only if the Reply Amount
comprises the entire amount of the Term Loans of such Tranche held by such Lender. Lenders may
only submit one Return Bid per Auction but each Return Bid may contain up to three (3) component
bids, each of which may result in a separate Qualifying Bid and each of which will not be
contingent on any other component bid submitted by such Lender resulting in a Qualifying Bid. In
addition to the Return Bid, the participating Lender must execute and deliver, to be held by the
Auction Manager, an assignment and acceptance in the form included in the offering document (each,
an “Auction Assignment and Assumption”). The Borrower will not purchase any Term Loans at
a price that is outside of the applicable Discount Range, nor will any Return Bids (including any
component bids specified therein) submitted at a price that is outside such applicable Discount
Range be considered in any calculation of the Applicable Threshold Price.

          (c) Acceptance Procedures. Based on the Reply Prices and Reply Amounts received by the Auction Manager, the Auction
Manager, in consultation with the Borrower, will calculate the lowest purchase price (the
“Applicable Threshold Price”) for such Auction within the Discount Range for such Auction
that will allow the Borrower to complete the Auction by purchasing the full Auction Amount (or such
lesser amount of Term Loans for which the Borrower has received Qualifying Bids). The Borrower
shall purchase Term Loans from each Lender whose Return Bid is within the Discount Range and
contains a Reply Price that is equal to or less than the Applicable Threshold Price (each, a
“Qualifying Bid”). All Term Loans included in Qualifying Bids (including multiple
component Qualifying Bids contained in a single Return Bid) received at a Reply Price lower than
the Applicable Threshold Price will be purchased at such applicable Reply Prices and shall not be
subject to proration.

          (d) Proration Procedures. All Term Loans offered in Return Bids (or, if applicable, any component thereof) constituting
Qualifying Bids at the Applicable Threshold Price will be purchased at the Applicable Threshold
Price; provided that if the aggregate principal amount (calculated on the face amount
thereof) of all Term Loans for which Qualifying Bids have been submitted in any given Auction at
the Applicable Threshold Price would exceed the remaining portion of the Auction Amount (after
deducting all Term Loans to be purchased at prices below the Applicable Threshold Price), the
Borrower shall purchase the Term Loans for which the Qualifying Bids submitted were at the
Applicable Threshold Price ratably based on the respective principal amounts offered and in an
aggregate amount equal to the amount necessary to complete the purchase of the Auction Amount. No
Return Bids or any component thereof will be accepted above the Applicable Threshold Price.

 

 

Page 3

          (e) Notification Procedures. The Auction Manager will calculate the Applicable Threshold Price and post the Applicable
Threshold Price and proration factor onto an internet or intranet site (including an IntraLinks,
SyndTrak or other electronic workspace) in accordance with the Auction Manager’s standard
dissemination practices by 4:00 p.m. New York time on the same Business Day as the date the Return
Bids were due (as such due date may be extended in accordance with this Schedule XII). The
Auction Manager will insert the principal amount of Term Loans to be assigned and the applicable
settlement date into each applicable Auction Assignment and Assumption received in connection with
a Qualifying Bid. Upon the request of the submitting Lender, the Auction Manager will promptly
return any Auction Assignment and Assumption received in connection with a Return Bid that is not a
Qualifying Bid.

          (f) Auction Assignment and Assumption. Each Auction Notice and Auction Assignment and Assumption shall contain the following
representations and warranties by the Borrower:

     (i) The conditions set forth in Section 2.17 of the Credit Agreement have each
been satisfied on and as of the date hereof, except to the extent that such conditions refer
to conditions that must be satisfied as of a future date, in which case the Borrower must
terminate any Auction if it fails to satisfy one of more of the conditions which are
required to be met at the time which otherwise would have been the time of purchase of Term
Loans pursuant to an Auction.

     (ii) The representations and warranties of the Borrower and each other Credit Party
contained in Section 8 of the Credit Agreement or any other Credit Document, or
which are contained in any document furnished at any time under or in connection herewith or
therewith, shall be true and correct in all material respects (other than any representation
or warranty that is qualified by materiality or reference to Material Adverse Effect, which
shall be true and correct in all respects) on and as of the date hereof, except to the
extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct as of such earlier date, and except that for
purposes hereof, the representations and warranties contained in Section 8.05(a) of
the Credit Agreement shall be deemed to refer to the most recent statements furnished
pursuant to clauses (b) and (c) of Section 9.01 of the Credit Agreement.

          (g) Additional Procedures. Once initiated by an Auction Notice, the Borrower may withdraw an Auction only in the event
that, (i) as of such time, no Qualifying Bid has been received by the Auction Manager or (ii) the
Borrower has failed to meet a condition set forth in Section 2.17 of the Credit Agreement.
Furthermore, in connection with any Auction, upon submission by a Lender of a Return Bid, such
Lender will not have any withdrawal rights. Any Return Bid (including any component bid thereof)
delivered to the Auction Manager may not be modified, revoked, terminated or cancelled by a Lender.
However, an Auction may become void if the conditions to the purchase of Term Loans by the
Borrower required by the terms and conditions of Section 2.17 of the Credit Agreement are
not met. The purchase price in respect of each Qualifying Bid for which purchase by the Borrower
is required in accordance with the foregoing provisions shall be paid directly by the Borrower to
the respective assigning Lender on

 

 

Page 4

a settlement date as determined jointly by the Borrower and the
Auction Manager (which shall be not later than ten (10) Business Days after the date Return Bids
are due). The Borrower shall execute each applicable Auction Assignment and Assumption received in
connection with a Qualifying Bid. All questions as to the form of documents and validity and
eligibility of Term Loans that are the subject of an Auction will be determined by the Auction
Manager, in consultation with the Borrower, and their determination will be final and binding so
long as such determination is not inconsistent with the terms of Section 2.17 of the Credit
Agreement or this Schedule XII. The Auction Manager’s interpretation of the terms and
conditions of the offering document, in consultation with the Borrower, will be final and binding
so long as such interpretation is not inconsistent with the terms of Section 2.17 of the
Credit Agreement or this Schedule XII. None of the Administrative Agent, the Auction
Manager, any other Agent-Related Person or any of their respective affiliates assumes any
responsibility for the accuracy or completeness of the information concerning the Borrower, the
Credit Parties, or any of their affiliates (whether contained in an offering document or otherwise)
or for any failure to disclose events that may have occurred and may affect the significance or
accuracy of such information. This Schedule XII shall not require the Borrower to initiate
any Auction.

 

 

EXHIBIT A-1

FORM OF NOTICE OF BORROWING

[Date]

Deutsche Bank Trust Company Americas,

as Administrative Agent for the Lenders party

to the Credit Agreement

referred to below

5022 Gate Parkway

Suite 200

Jacksonville, FL 32256

Attention: [__________]

Ladies and Gentlemen:

          The undersigned, Town Sports International, LLC (the “Borrower”), refers to the Credit
Agreement, dated as of May [__], 2011 (as amended, restated, modified and/or supplemented from time
to time, the “Credit Agreement,” the terms defined therein being used herein as therein
defined), among Town Sports International Holdings, Inc., the Borrower, the lenders from time to
time party thereto (the “Lenders”), and you, as Administrative Agent for such Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.03[(a)][(b)(i)] of the Credit
Agreement, that the undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the “Proposed
Borrowing”) as required by Section 2.03[(a)][(b)(i)] of the Credit Agreement:

          (i) The Business Day of the Proposed Borrowing is ___________.1

          (ii) The Loans to be made pursuant to the Proposed Borrowing shall consist of [Initial Term
Loans] [Incremental Term Loans]2 [Revolving Loans] [Swingline Loans].

 

			
	1	 	Shall be a Business Day at least one Business
Day in the case of Base Rate Loans (or same day in the case of Swingline Loans)
and at least three Business Days in the case of Eurodollar Loans, in each case,
after the date hereof, provided that (in each case) any such notice shall be
deemed to have been given on a certain day only if given before 12:00 Noon (New
York time) (or 1:00 p.m. (New York time) in the case of Swingline Loans) on
such day.
	 
	2	 	For Incremental Term Loans, designate the
Tranche.

 

 

EXHIBIT A-2

Page 2

          (iii) The aggregate principal amount of the Proposed Borrowing is $___________.

          (iv) The Loans to be made pursuant to the Proposed Borrowing shall be initially maintained as
[Base Rate Loans] [Eurodollar Loans].

          [(v) The initial Interest Period for the Proposed Borrowing is [one month] [two months] [three
months] [six months] [, to the extent agreed to by all Lenders with Commitments and/or Loans under
the relevant Tranche, [nine] [twelve] months and, if such Interest Period is unavailable, [specify
alternative desired].]3

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

          (A) the representations and warranties contained in the Credit Agreement and in the other
Credit Documents are and will be true and correct in all material respects, before and after giving
effect to the Proposed Borrowing and to the application of the proceeds thereof, as though made on
such date (it being understood and agreed that any representation and warranty that is qualified by
materiality or Material Adverse Effect shall be true and correct in all respects), unless stated to
relate to a specific earlier date, in which case such representations and warranties shall be true
and correct in all material respects (or all respects, as the case may be) as of such earlier date;
and

          (B) no Default or Event of Default has occurred and is continuing, or would result from such
Proposed Borrowing or from the application of the proceeds thereof.

	 	 	 	 	 
	 	Very truly yours,

TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	3	 	To be included for a Proposed Borrowing of
Eurodollar Loans.

 

 

FORM OF NOTICE OF CONVERSION/CONTINUATION

[Date]

Deutsche Bank Trust Company Americas,

as Administrative Agent for the Lenders party

to the Credit Agreement

referred to below

5022 Gate Parkway

Suite 200

Jacksonville, FL 32256

Attention: [__________]

Ladies and Gentlemen:

          The undersigned, Town Sports International, LLC (the “Borrower”), refers to the Credit
Agreement, dated as of May [__], 2011 (as amended, restated, modified and/or supplemented from time
to time, the “Credit Agreement,” the terms defined therein being used herein as therein
defined), among Town Sports International Holdings, Inc., the Borrower, the lenders from time to
time party thereto (the “Lenders”), and you, as Administrative Agent for such Lenders, and
hereby give you notice, irrevocably, pursuant to Section [2.06][2.09] of the Credit Agreement, that
the undersigned hereby requests to [convert] [continue] the Borrowing of [Initial Term Loans]
[Incremental Term Loans]4 [Revolving Loans] referred to below, and in that connection
sets forth below the information relating to such [conversion] [continuation] (the “Proposed
[Conversion] [Continuation]”) as required by Section [2.06][2.09] of the Credit Agreement:

          (i) The Proposed [Conversion] [Continuation] relates to the Borrowing of [Initial Term Loans]
[Incremental Term Loans] [Revolving Loans]originally made on _____ __, 20__ (the “Outstanding
Borrowing”) in the principal amount of $________ and currently maintained as a Borrowing of
[Base Rate Loans] [Eurodollar Loans with an Interest Period ending on _____ __, ____].

          (ii) The Business Day of the Proposed [Conversion] [Continuation] is ___________.5

 

			
	4	 	For Incremental Term Loans, designate the
Tranche.
	 
	5	 	Shall be a Business Day at least three
Business Days (or one Business Day in the case of a conversion into Base Rate
Loans) after the date hereof, provided that such notice shall be deemed to have
been given on a certain day only if given before 12:00 Noon (New York time) on
such day.

 

 

Page 2

          (iii) The Outstanding Borrowing shall be [continued as a Borrowing of Eurodollar Loans with an
Interest Period of _______] [converted into a Borrowing of [Base Rate Loans] [Eurodollar Loans with
an Interest Period of ___]].6

	 	 	 	 	 
	 	Very truly yours,

TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	6	 	If either (x) only a portion of the
Outstanding Borrowing is to be so converted or continued or (y) the Outstanding
Borrowing is to be divided into separate Borrowings with different Interest
Periods, the Borrower should make appropriate modifications to this clause to
reflect same.

 

 

EXHIBIT B-1

FORM OF INITIAL TERM NOTE

			
	 	 	 
	$__________
	 	New York, New York

_________ __, ____

          FOR VALUE RECEIVED, TOWN SPORTS INTERNATIONAL, LLC, a New York limited liability company (the
“Borrower”), hereby promises to pay to [______] or its registered assigns (the
“Lender”), in lawful money of the United States of America in immediately available funds,
at the Payment Office (as defined in the Agreement referred to below) initially located at 5022
Gate Parkway, Suite 200, Jacksonville, FL 32256 on the Initial Term Loan Maturity Date (as defined
in the Agreement) the principal sum of __________ DOLLARS ($__________) or, if less, the unpaid
principal amount of all Initial Term Loans (as defined in the Agreement) made by the Lender
pursuant to the Agreement, payable at such times and in such amounts as are specified in the
Agreement.

          The Borrower also promises to pay interest on the unpaid principal amount of each Initial Term
Loan made by the Lender in like money at said office from the date hereof until paid at the rates
and at the times provided in Section 2.08 of the Agreement.

          This Note is one of the Initial Term Notes referred to in the Credit Agreement, dated as of
May [__], 2011, among Town Sports International Holdings, Inc., the Borrower, the lenders from time
to time party thereto (including the Lender) and Deutsche Bank Trust Company Americas, as
Administrative Agent (as amended, restated, modified and/or supplemented from time to time, the
“Agreement”), and is entitled to the benefits thereof and of the other Credit Documents (as
defined in the Agreement). This Note is secured by the Security Documents (as defined in the
Agreement) and is entitled to the benefits of the Guaranties (as defined in the Agreement). As
provided in the Agreement, this Note is subject to voluntary prepayment and mandatory repayment
prior to the Initial Term Loan Maturity Date, in whole or in part, and Initial Term Loans may be
converted from one Type (as defined in the Agreement) into another Type to the extent provided in
the Agreement.

          In case an Event of Default (as defined in the Agreement) shall occur and be continuing, the
principal of and accrued interest on this Note may become or be declared to be due and payable in
the manner and with the effect provided in the Agreement.

          The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

 

 

          THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT B-2

FORM OF REVOLVING NOTE

			
	 	 	 
	$__________
	 	New York, New York

[Date]

          FOR VALUE RECEIVED, TOWN SPORTS INTERNATIONAL, LLC, a New York limited liability company (the
“Borrower”), hereby promises to pay to [____________] or its registered assigns (the
“Lender”), in lawful money of the United States of America in immediately available funds,
at the Payment Office (as defined in the Agreement referred to below) initially located at 5022
Gate Parkway, Suite 200, Jacksonville, FL 32256 on the Revolving Loan Maturity Date (as defined in
the Agreement) the principal sum of _____________ DOLLARS ($_____) or, if less, the unpaid
principal amount of all Revolving Loans (as defined in the Agreement) made by the Lender pursuant
to the Agreement, payable at such times and in such amounts as are specified in the Agreement.

          The Borrower also promises to pay interest on the unpaid principal amount of each Revolving
Loan made by the Lender in like money at said office from the date hereof until paid at the rates
and at the times provided in Section 2.08 of the Agreement.

          This Note is one of the Revolving Notes referred to in the Credit Agreement, dated as of May
[__], 2011, among Town Sports International Holdings, Inc., the Borrower, the lenders from time to
time party thereto (including the Lender), and the Administrative Agent (as amended, restated,
modified and/or supplemented from time to time, the “Agreement”), and is entitled to the
benefits thereof and of the other Credit Documents (as defined in the Agreement). This Note is
secured by the Security Documents (as defined in the Agreement) and is entitled to the benefits of
the Guaranties (as defined in the Agreement). As provided in the Agreement, this Note is subject
to voluntary prepayment and mandatory repayment prior to the Revolving Loan Maturity Date, in whole
or in part, and Revolving Loans may be converted from one Type (as defined in the Agreement) into
another Type to the extent provided in the Agreement.

          In case an Event of Default (as defined in the Agreement) shall occur and be continuing, the
principal of and accrued interest on this Note may become or be declared to be due and payable in
the manner and with the effect provided in the Agreement.

          The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

          THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT B-3

FORM OF SWINGLINE NOTE

			
	 	 	 
	$5,000,000
	 	New York, New York
	 
	 	[Date]

          FOR VALUE RECEIVED, TOWN SPORTS INTERNATIONAL, LLC, a New York limited liability company (the
“Borrower”), hereby promises to pay to DEUTSCHE BANK TRUST COMPANY AMERICAS or its
registered assigns (the “Lender”), in lawful money of the United States of America in
immediately available funds, at the Payment Office (as defined in the Agreement referred to below)
initially located at 5022 Gate Parkway, Suite 200, Jacksonville, FL 32256 on the Swingline Expiry
Date (as defined in the Agreement) the principal sum of FIVE MILLION DOLLARS ($5,000,000) or, if
less, the unpaid principal amount of all Swingline Loans (as defined in the Agreement) made by the
Lender pursuant to the Agreement, payable at such times and in such amounts as are specified in the
Agreement.

          The Borrower also promises to pay interest on the unpaid principal amount of each Swingline
Loan made by the Lender in like money at said office from the date hereof until paid at the rates
and at the times provided in Section 2.08 of the Agreement.

          This Note is the Swingline Note referred to in the Credit Agreement, dated as of May [__],
2011, among Town Sports International Holdings, Inc., the Borrower, the lenders from time to time
party thereto (including the Lender), and the Administrative Agent (as amended, restated, modified
and/or supplemented from time to time, the “Agreement”), and is entitled to the benefits
thereof and of the other Credit Documents (as defined in the Agreement). This Note is secured by
the Security Documents (as defined in the Agreement) and is entitled to the benefits of the
Guaranties (as defined in the Agreement). As provided in the Agreement, this Note is subject to
voluntary prepayment and mandatory repayment prior to the Swingline Expiry Date, in whole or in
part.

          In case an Event of Default (as defined in the Agreement) shall occur and be continuing, the
principal of and accrued interest on this Note may become or be declared to be due and payable in
the manner and with the effect provided in the Agreement.

          The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

 

 

          THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE
OF NEW YORK.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT B-4

FORM OF INCREMENTAL TERM NOTE

			
	 	 	 
	$__________
	 	New York, New York
	 
	 	_________ __, ____

          FOR VALUE RECEIVED, TOWN SPORTS INTERNATIONAL, LLC, a New York limited liability company (the
“Borrower”), hereby promises to pay to [______] or its registered assigns (the
“Lender”), in lawful money of the United States of America in immediately available funds,
at the Payment Office (as defined in the Agreement referred to below) initially located at 5022
Gate Parkway, Suite 200, Jacksonville, FL 32256 on [Insert the applicable Incremental Term Loan
Maturity Date] (the “Incremental Term Loan Maturity Date”) the principal sum of __________
DOLLARS ($__________) or, if less, the unpaid principal amount of all [Insert the applicable
description of the respective Tranche of Incremental Term Loans] (as defined in the Agreement) made
by the Lender pursuant to the Agreement, payable at such times and in such amounts as are specified
in the Agreement.

          The Borrower also promises to pay interest on the unpaid principal amount of each [Incremental
Term Loan] made by the Lender in like money at said office from the date hereof until paid at the
rates and at the times provided in Section 2.08 of the Agreement.

          This Note is one of the Incremental Term Notes referred to in the Credit Agreement, dated as
of May [__], 2011, among Town Sports International Holdings, Inc., the Borrower, the lenders from
time to time party thereto (including the Lender) and Deutsche Bank Trust Company Americas, as
Administrative Agent (as amended, restated, modified and/or supplemented from time to time, the
“Agreement”), and is entitled to the benefits thereof and of the other Credit Documents (as
defined in the Agreement). This Note is secured by the Security Documents (as defined in the
Agreement) and is entitled to the benefits of the Guaranties (as defined in the Agreement). As
provided in the Agreement, this Note is subject to voluntary prepayment and mandatory repayment
prior to the Incremental Term Loan Maturity Date, in whole or in part, and Incremental Term Loans
may be converted from one Type (as defined in the Agreement) into another Type to the extent
provided in the Agreement.

          In case an Event of Default (as defined in the Agreement) shall occur and be continuing, the
principal of and accrued interest on this Note may become or be declared to be due and payable in
the manner and with the effect provided in the Agreement.

          The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

 

 

          THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT C

FORM OF LETTER OF CREDIT REQUEST

Dated 7

Deutsche Bank Trust Company Americas, as Administrative
Agent, under the Credit Agreement, dated as of May [__],
2011 (as amended, restated, modified and/or supplemented
from time to time, the “Credit Agreement”), among
Town Sports International Holdings, Inc., Town Sports
International, LLC (the “Borrower”), the lenders
from time to time party thereto and Deutsche Bank Trust
Company Americas, as Administrative Agent

60 Wall Street

New York, New York 10005

Attention: [                    ]

[[____8_____], as Issuing Lender

under the Credit Agreement

 

 

                                                    ]

Attention: [                    ]

Ladies and Gentlemen:

     Pursuant to Section 3.03 of the Credit Agreement, we hereby request that the Issuing Lender,
in its individual capacity, issue a [standby] [trade] Letter of Credit for the account of the
undersigned on 9 (the “Date of Issuance”), which Letter of
Credit shall be denominated in United States dollars and shall be in the initial aggregate Stated
Amount of 10.

 

			
	7	 	Date of Letter of Credit Request.
	 
	8	 	Insert name and address of Issuing Lender.
For standby Letters of Credit issued by Deutsche Bank Trust Company Americas
insert: Deutsche Bank Trust Company Americas, 60 Wall Street, New York, NY
10005-MS NYC 60-2708, Attention: Global Loan Operations, Standby Letter of
Credit Unit. For trade Letters of Credit issued by Deutsche Bank Trust Company
Americas, insert: Deutsche Bank Trust Company Americas, 60 Wall Street, New
York, NY 10005, Attention: Trade and Risk Services, Import LC. For Letters of
Credit issued by another Issuing Lender, insert the correct notice information
for that Issuing Lender.
	 
	9	 	Date of Issuance which shall be (x) a Business
Day and (y) at least 4 Business Days after the date hereof (or such earlier
date as is acceptable to the respective Issuing Lender in any given case).
	 
	10	 	Aggregate initial Stated Amount of the Letter
of Credit which shall not be less than $20,000 (or such lesser amount as is
acceptable to the respective Issuing Lender).

 

 

     For purposes of this Letter of Credit Request, unless otherwise defined herein, all
capitalized terms used herein which are defined in the Credit Agreement shall have the respective
meaning provided therein.

     The beneficiary of the requested Letter of Credit will be 11,
and such Letter of Credit will be in support of 12 and will have a
stated expiration date of 13.

     We hereby certify that:

	 	(A)	 	the representations and warranties contained in the Credit
Agreement and in the other Credit Documents are and will be true and correct in
all material respects, both before and after giving effect to the issuance of
the Letter of Credit requested hereby, on the Date of Issuance (it being
understood and agreed that (x) any representation and warranty that is
qualified by materiality or Material Adverse Effect shall be true and correct
in all respects and (y) any representation or warranty which by its terms is
made as of a specified date shall be required to be true and correct in all
material respects (or all respects, as the case may be) only as of such
specified date; and
	 
	 	(B)	 	no Default or Event of Default has occurred and is continuing
nor, after giving effect to the issuance of the Letter of Credit requested
hereby, would such a Default or Event of Default occur.

     Copies of all documentation with respect to the supported transaction are attached hereto.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	11	 	Insert name and address of beneficiary.
	 
	12	 	Insert a description of L/C Supportable
Obligations (in the case of standby Letters of Credit) and insert description
of permitted trade obligations of the Borrower and its Subsidiaries (in the
case of trade Letters of Credit).
	 
	13	 	Insert the last date upon which drafts may be
presented which may not be later than (i) in the case of standby Letters of
Credit, the earlier of (x) twelve months after the Date of Issuance and (y) the
5th Business Day prior to the Revolving Loan Maturity Date and (ii)
in the case of trade Letters of Credit, the earlier of (x) 180 days after the
Date of Issuance and (y) 15 days prior to the Revolving Loan Maturity Date.

 

 

EXHIBIT D

SECTION 5.04(b)(ii) CERTIFICATE

     Reference is hereby made to the Credit Agreement, dated as of May [__], 2011, among Town
Sports International Holdings, Inc., Town Sports International, LLC, the lenders from time to time
party thereto, and Deutsche Bank Trust Company Americas, as Administrative Agent (the
“Administrative Agent”) (as amended, restated, modified and/or supplemented from time to time, the
“Credit Agreement”). Pursuant to the provisions of Section 5.04(b)(ii) of the Credit
Agreement, the undersigned hereby certifies that it is not a “bank” as such term is used in Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended.

	 	 	 	 	 
	 	[NAME OF LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: _______________ ___, _______

 

 

EXHIBIT E

Opinion of Simpson Thacher & Bartlett LLP

May 11, 2011

Deutsche Bank Trust Company Americas, as Administrative

Agent under the Credit Agreement, as hereinafter
defined (in such capacity, the “Administrative
Agent”) and

as Collateral Agent under the Security Documents, as

hereinafter defined (in such capacity, the “Collateral Agent”)

     and

The Lenders listed on Schedule I hereto

			
	     Re:	 	Credit Agreement, dated as of May 11, 2011 (the “Credit
Agreement”), among Town Sports International, LLC, a New York
limited liability company (the “Borrower”), Town Sports
International Holdings, Inc., a Delaware corporation
(“Holdings”), the lending institutions identified in the
Credit Agreement (the “Lenders”), certain other parties and
the Administrative Agent

Ladies and Gentlemen:

     We have acted as counsel to the Borrower, Holdings and the subsidiaries of the Borrower named
on Schedule II attached hereto (each, a “Subsidiary Guarantor” and, collectively, the
“Subsidiary Guarantors”; the Borrower, Holdings and the Subsidiary Guarantors being
referred to herein collectively as the “Credit Parties”) in connection with the
preparation, execution and delivery of the following documents:

(i) the Credit Agreement;

(ii) the Notes delivered to the Lenders on the date hereof;

(iii) the Subsidiaries Guaranty;

(iv) the Security Agreement; and

(v) the Pledge Agreement.

The documents described in the foregoing clauses (i) through (v) are collectively referred to
herein as the “Credit Documents,” and the documents described in the foregoing clauses (iv)
and (v) are collectively referred to herein as the “Security Documents.” Unless otherwise
indicated,

 

 

	 	 	 	 	 

	 

	 	-3-
	 	

capitalized terms used but not defined herein shall have the meanings assigned to such
terms in the Credit Agreement. This opinion letter is furnished to you pursuant to Section 6.03 of the
Credit Agreement.

     We have examined the following:

	(i)	 	the Credit Agreement, signed by each Credit Party that is a party thereto and by the
Administrative Agent and certain of the Lenders;
	 
	(ii)	 	each other Credit Document, signed by each Credit Party that is a party thereto;
	 
	(iii)	 	unfiled copies of the financing statements listed on Schedule III hereto and denominated as
“New York Financing Statements” (the “New York Financing Statements”), naming the
Credit Parties indicated on such Schedule III as debtors and the Administrative Agent as
secured party, which we understand will be filed in the Office of the Secretary of State of
the State of New York (the “New York Filing Office”); and
	 
	(iv)	 	unfiled copies of the financing statements listed on Schedule IV hereto (the “Delaware
Financing Statements”), among the Credit Parties indicated on such Schedule IV as debtors
and the Administrative Agent as secured party, which we understand will be filed in the Office
of the Secretary of State of the State of Delaware (the “Delaware Filing Office”).

          In addition, we have examined, and have relied as to matters of fact upon, the documents
delivered to you at the closing, and upon originals, or duplicates or certified or conformed
copies, of such corporate and limited liability company records, agreements, documents and other
instruments and such certificates or comparable documents of public officials and of officers and
representatives of the Credit Parties, and have made such other investigations, as we have deemed
relevant and necessary in connection with the opinions hereinafter set forth. In such examination,
we have assumed the genuineness of all signatures, the legal capacity of natural persons, the
authenticity of all documents submitted to us as originals, the conformity to original documents of
all documents submitted to us as duplicates or certified or conformed copies and the authenticity
of the originals of such latter documents. In addition, we have relied as to certain matters of
fact upon the representations made in the Credit Documents.

 

 

	 	 	 	 	 

	 

	 	-4-
	 	

     In addition, we have assumed that (1) the Credit Parties have rights in the Collateral
referred to in the Security Documents that is existing on the date hereof and will have rights in
property that becomes such Collateral after the date hereof, (2) “value” (as defined in Section 1-
201(44) of the Uniform Commercial Code as in effect in the State of New York (the “New
York UCC”)) has been given by the Lenders to the Credit Parties for the security interests and
other rights in such Collateral and (3) to the extent our opinion in paragraph 12 relates to
securities purportedly represented by a certificate and issued by an issuer not organized under the
laws of one of the states of the United States, such securities are “certificated securities”
within the meaning of New York UCC Section 8-102(a)(4).

     In rendering the opinion set forth in paragraph 4 below with respect to the Notes, we have
assumed that at the time of any execution and delivery of Notes after the date hereof, the board of
directors of the Borrower (or any committee thereof acting pursuant to authority properly delegated
to such committee by such board of directors) has not taken any action to rescind or otherwise
reduce the prior authorization of the issuance of such Notes.

     Based upon and subject to the foregoing, and subject to the qualifications and limitations set
forth herein, we are of the opinion that:

     1. Each of the Credit Parties (a) is validly existing and in good standing as a
corporation or a limited liability company, as applicable, under the law of the
State of New York or Delaware, as applicable, (b) has the corporate or limited
liability company power and authority, as applicable, to execute and deliver each of
the Credit Documents to which it is a party, to perform its obligations thereunder
and to grant the security interests to be granted by it pursuant to the Security
Documents and, in the case of the Borrower, to borrow thereunder, and (c) has duly
authorized, executed and delivered each Credit Document to which it is a party.

     2. The execution and delivery by each Credit Party of the Credit Documents to
which it is a party, the Borrower’s borrowings in accordance with the terms of the
Credit Documents, the performance of such Credit Party’s payment obligations
thereunder and the granting of the security interests to be granted by such Credit
Party pursuant to the Security Documents will not result in any violation of (a)
the certificate of incorporation or the certificate of formation, as applicable, or
the by-laws or limited liability company agreement, as applicable, of such Credit
Party or (b) assuming that proceeds of borrowings will

 

 

	 	 	 	 	 

	 

	 	-5-
	 	

be used in accordance with
the terms of the Credit Agreement, any federal or New York statute, the Delaware
General Corporation Law or the Delaware Limited Liability Company Act or any rule or
regulation issued pursuant to any federal or New York statute, the Delaware General
Corporation Law or the Delaware Limited Liability Company Act or any order known to
us issued by any court or governmental agency or body.

     3. No consent, approval, authorization, order, filing, registration or
qualification of or with any federal or New York governmental agency or body or any
Delaware governmental agency or body acting pursuant to the Delaware General
Corporation Law or the Delaware Limited Liability Company Act is required for the
execution and delivery by any Credit Party of the Credit Documents to which it is a
party, the borrowings by the Borrower in accordance with the terms of the Credit
Documents, the performance by any Credit Party of its payment obligations under the
Credit Documents to which it is a party or the granting of any security interests
under the Security Documents, except filings required for the perfection of security
interests granted pursuant to the Security Documents.

     4. Assuming that each of the Credit Documents is a valid and legally binding
obligation of each of the parties thereto (other than the Credit Parties) and
assuming that (a) execution, delivery and performance by each Credit Party of the
Credit Documents to which it is a party do not violate the laws of the jurisdiction
in which it is organized or any other applicable laws (excepting the federal laws of
the United States, the law of the State of New York, the Delaware General
Corporation Law and the Delaware Limited Liability Company Act) and (b) execution,
delivery and performance by each Credit Party of the Credit Documents to which it is
a party do not constitute a breach of or default under any agreement or instrument
which is binding upon such Credit Party, each Credit Document constitutes the valid
and legally binding obligation of each Credit Party that is a party thereto,
enforceable against such Credit Party in accordance with its terms.

     5. To our knowledge there is no action, suit or proceeding now pending before
or by any court, arbitrator or governmental agency, body or official to which any
Credit Party is a party or to which the business, assets or property of any Credit
Party is subject, and no such action, suit or proceeding is threatened to which any
Credit Party would be a party or to which the business, assets or property of any
Credit Party would be subject, that in either case questions the validity of the
Credit Documents.

     6. No Credit Party is an “investment company” within the meaning of, and
subject to regulation under, the Investment Company Act of 1940, as amended.

 

 

	 	 	 	 	 

	 

	 	-6-
	 	

     7. Assuming that the Borrower will comply with the provisions of the Credit
Agreement relating to the use of proceeds, the execution and delivery of the Credit
Agreement by the Borrower and the making of the Loans under the Credit Agreement
will not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

     8. Each of the New York Financing Statements is in appropriate form for filing
in the New York Filing Office.

     9. The Security Agreement creates in favor of the Collateral Agent for the
benefit of the Secured Creditors (as defined in the Security Agreement) a security
interest in the Collateral as defined and described therein in which a security
interest may be created under Article 9 of the New York UCC (the “Security
Agreement Article 9 Collateral”).

     10. Upon the filing in the New York Filing Office of the New York Financing
Statements, the Collateral Agent will have a perfected security interest for the
benefit of the Secured Creditors in that portion of the Security Agreement Article 9
Collateral in which a security interest is perfected by filing a financing statement
in the New York Filing Office.

     11. The Pledge Agreement creates in favor of the Collateral Agent for the
benefit of the Secured Creditors a security interest under the New York UCC in the
investment property identified on Annex C to the Pledge Agreement (the “Pledged
Investment Property”).

     12. The Collateral Agent will have a perfected security interest in the Pledged
Investment Property for the benefit of the Secured Creditors under the New York UCC:
(a) in the case of Pledged Investment Property constituting certificated securities,
upon delivery to the Collateral Agent for the benefit of the Secured Creditors in
the State of New York of the certificates representing such Pledged Investment
Property in registered form, indorsed in blank by an effective indorsement or
accompanied by undated stock powers with respect thereto duly indorsed in blank by
an effective indorsement and (b) in the case of Pledged Investment Property
constituting uncertificated securities, when the issuer has agreed that it will
comply with instructions originated by the Collateral Agent without further consent
by the registered owner of the Pledged Investment Property. Assuming neither the
Collateral Agent nor any of the Secured Creditors has notice of any adverse claims
to the Pledged Investment Property, the Collateral Agent will acquire the security
interest in the Pledged Investment Property for the benefit of the Secured Creditors
free of any adverse claim.

     Although we express no opinion as to the law of the State of Delaware (other than the Delaware
General Corporation Law and the Delaware Limited Liability Company Act), we have

 

 

	 	 	 	 	 

	 

	 	-7-
	 	

reviewed Article 9
of the Uniform Commercial Code in effect in the State of Delaware as set forth in the Commerce
Clearing House, Inc. Secured Transactions Guide as supplemented through April 26, 2011 (the
“Delaware UCC”) and, based solely on such review, we advise you that (a) the Delaware
Financing Statements are in appropriate form for filing in the Delaware Filing Office and (b) upon
the filing of the Delaware Financing Statements in the Delaware Filing Office, the Collateral Agent
will have a perfected security interest for the benefit of the
Secured Creditors in that portion of the Security Agreement Article 9 Collateral in which a
security interest is perfected by filing a financing statement in the Delaware Filing Office.

     Our opinions in paragraphs 4, 9 and 11 above are subject to (i) the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally, (ii) general equitable principles (whether considered in a
proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing. Our
opinion in paragraph 4 above also is subject to the qualification that certain provisions of the
Security Documents may not be enforceable in whole or in part, although the inclusion of such
provisions does not render the Security Documents invalid, and the Security Documents and the law
of the State of New York contain adequate remedial provisions for the practical realization of the
rights and benefits afforded thereby.

     Our opinions in paragraphs 8 through 11 and our advice in the second preceding paragraph
above, are limited to Article 9 of the New York UCC or the Delaware UCC, as the case may be, and
our opinion in paragraph 12 is limited to Articles 8 and 9 of the New York UCC, and, therefore,
those opinion and advice paragraphs do not address collateral of a type not subject to Article 8 or
9, as the case may be, of the New York UCC or the Delaware UCC. In addition we express no opinion
as to what law governs perfection of the security interests granted in the collateral covered by
this opinion letter.

     We express no opinion and render no advice with respect to:

     (i) perfection of any security interest in (1) any collateral of a type represented
by a certificate of title, (2) any proceeds and (3) any collateral consisting of money or Cash
Equivalents;

 

 

	 	 	 	 	 

	 

	 	-8-
	 	

     (ii) perfection of any security interest the priority of which is subject to Section
9-334 of the New York UCC;

     (iii) the priority of any security interest;

     (iv) the effect of Section 552 of the Bankruptcy Code (11 U.S.C. Section 552)
(relating to property acquired by a pledgor after the commencement of a case under the United
States Bankruptcy Code with respect to such pledgor) and Section 506(c) of the Bankruptcy Code (11
U.S.C. Section 506(c)) (relating to certain costs and expenses of a trustee in preserving or
disposing of collateral);

     (v) the effect of any provision of the Credit Documents that is intended to
establish any standard other than a standard set forth in the New York UCC as the measure of the
performance by any party thereto of such party’s obligations of good faith, diligence,
reasonableness or care or of the fulfillment of the duties imposed on any secured party with
respect to the maintenance, disposition or redemption of collateral, accounting for surplus
proceeds of collateral or accepting collateral in discharge of liabilities;

     (vi) the effect of any provision of the Credit Documents that is intended to permit
modification thereof only by means of an agreement in writing signed by the parties thereto;

     (vii) the effect of any provision of the Credit Documents insofar as it provides
that any Person purchasing a participation from a Lender or other Person may exercise set-off or
similar rights with respect to such participation or that any Lender or other Person may exercise
set-off or similar rights other than in accordance with applicable law;

     (viii) the effect of any provision of the Credit Documents imposing penalties or
forfeitures;

     (ix) the enforceability of any provision of the Credit Documents to the extent that
such provision constitutes a waiver of illegality as a defense to the performance of contract
obligations; and

     (x) the effect of any provision of the Credit Documents relating to indemnification
or exculpation in connection with violations of any securities laws or relating to indemnification,
contribution or exculpation in connection with willful, reckless or criminal acts or gross
negligence of the indemnified or exculpated Person or the Person receiving contribution.

     In connection with the provisions of the Credit Documents whereby the parties submit to the
jurisdiction of the courts of the United States of America located in the State and County of New
York, we note the limitations of 28 U.S.C. Sections 1331 and 1332 on subject matter jurisdiction of
the federal courts. In connection with the provisions of the Credit Documents that relate to forum
selection (including, without limitation, any waiver of any objection to venue or

 

 

	 	 	 	 	 

	 

	 	-9-
	 	

any objection
that a court is an inconvenient forum), we note that under NYCPLR Section 510 a New York State
court may have discretion to transfer the place of trial, and under 28 U.S.C. Section 1404(a) a
United States district court has discretion to transfer an action from one federal court to
another.

     We do not express any opinion herein concerning any law other than the federal law of the
United States, the law of the State of New York, the Delaware General Corporation Law, and the
Delaware Limited Liability Company Act.

     This opinion letter is rendered to you in connection with the above described transactions.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by, or
furnished to, any other person, firm or corporation without our prior written consent, except that
this opinion letter may be furnished to, but may not be relied upon by, any person, firm or
corporation that purchases an interest in or participation in the Credit Agreement, accountants and
counsel for any Lender or the Administrative Agent or Collateral Agent, on the basis that they make
no further disclosure, bank and insurance company examiners, and to any other person pursuant to
court order or judicial process.

	 	 	 

	 

	 	Very truly yours,
	 
	 	 
	 

	 	/s/ Simpson Thacher & Bartlett LLP
	 
	 	 
	 

	 	SIMPSON THACHER & BARTLETT LLP

 

 

Schedule I

The Lenders

 

 

Schedule II

Subsidiary Guarantors

TSI 217 Broadway, LLC

TSI Alexandria West, LLC

TSI Allston, LLC

TSI Arthro-Fitness Services, LLC

TSI Astoria, LLC

TSI Battery Park, LLC

TSI Bay Ridge 86th Street, LLC

TSI Bayridge, LLC

TSI Bensonhurst, LLC

TSI Boylston, LLC

TSI Broadway, LLC

TSI Brooklyn Belt, LLC

TSI Brunswick, LLC

TSI Bulfinch, LLC

TSI Carmel, LLC

TSI Cash Management, LLC

TSI Central Square, LLC

TSI Cobble Hill, LLC

TSI Commack, LLC

TSI Court Street, LLC

TSI Croton, LLC

TSI Danbury, LLC

TSI Deer Park, LLC

TSI Dobbs Ferry, LLC

TSI Downtown Crossing, LLC

TSI East 23, LLC

TSI East 31, LLC

TSI East 34, LLC

TSI East 36, LLC

TSI East 41, LLC

TSI East 48, LLC

TSI East 51, LLC

TSI East 59, LLC

TSI East 76, LLC

TSI East 86, LLC

TSI East 91, LLC

 

 

TSI East Brunswick, LLC

TSI East Meadow, LLC

TSI Fenway, LLC

TSI First Avenue, LLC

TSI Forest Hills, LLC

TSI Garden City, LLC

TSI Garnerville, LLC

TSI Glendale, LLC

TSI Grand Central, LLC

TSI Great Neck, LLC

TSI Greenwich, LLC

TSI Hartsdale, LLC

TSI Hawthorne, LLC

TSI Herald, LLC

TSI Hicksville, LLC

TSI Holdings (CIP), LLC

TSI Holdings (DC), LLC

TSI Holdings (MA), LLC

TSI Holdings (MD), LLC

TSI Holdings (NJ), LLC

TSI Holdings (PA), LLC

TSI Holdings (VA), LLC

TSI Huntington, LLC

TSI International, Inc.

TSI Irving Place, LLC

TSI Jamaica Estates, LLC

TSI Larchmont, LLC

TSI Lincoln, LLC

TSI Long Beach, LLC

TSI Mamaroneck, LLC

TSI Mercer Street, LLC

TSI Midwood, LLC

TSI Morris Park, LLC

TSI Murray Hill, LLC

TSI Nanuet, LLC

TSI Natick, LLC

TSI New Rochelle, LLC

TSI Newbury Street, LLC

TSI Norwalk, LLC

TSI Oceanside, LLC

TSI Port Jefferson, LLC

 

 

TSI Providence Downtown, LLC

TSI Providence Eastside, LLC

TSI Reade Street, LLC

TSI Rego Park, LLC

TSI Scarsdale, LLC

TSI Seaport, LLC

TSI Sheridan, LLC

TSI Smithtown, LLC

TSI Soho, LLC

TSI Somers, LLC

TSI South Park Slope, LLC

TSI Stamford Downtown, LLC

TSI Stamford Post, LLC

TSI Stamford Rinks, LLC

TSI Staten Island, LLC

TSI Sunnyside, LLC

TSI Syosset, LLC

TSI Varick Street, LLC

TSI Wall Street, LLC

TSI Water Street, LLC

TSI West 14, LLC

TSI West 16, LLC

TSI West 23, LLC

TSI West 38, LLC

TSI West 41, LLC

TSI West 44, LLC

TSI West 48, LLC

TSI West 52, LLC

TSI West 73, LLC

TSI West 76, LLC

TSI West 80, LLC

TSI West 94, LLC

TSI West 115th Street, LLC

TSI West 125, LLC

TSI West 145th Street, LLC

TSI West Hartford, LLC

TSI West Newton, LLC

TSI West Nyack, LLC

TSI Westborough, LLC

TSI Westport, LLC

TSI Weymouth, LLC

 

 

TSI White Plains City Center, LLC

TSI White Plains, LLC

TSI Whitestone, LLC

TSI Woodmere, LLC

TSI Princeton, LLC

TSI Chevy Chase, LLC

TSI Columbia Heights, LLC

TSI Connecticut Avenue, LLC

TSI Dupont Circle, Inc.

TSI Dupont II, Inc.

TSI F Street, LLC

TSI Gallery Place, LLC

TSI Georgetown, LLC

TSI Glover, LLC

TSI K Street, LLC

TSI M Street, LLC

TSI University Management, LLC

TSI Washington, Inc.

TSI Andover, LLC

TSI Davis Square, LLC

TSI Dedham, LLC

TSI Framingham, LLC

TSI Franklin (MA), LLC

TSI Lexington (MA), LLC

TSI Lynnfield, LLC

TSI Newton, LLC

TSI South End, LLC

TSI South Station, LLC

TSI Waltham, LLC

TSI Watertown, LLC

TSI Wayland, LLC

TSI Wellesley, LLC

TSI Wellington Circle, LLC

TSI Woburn, LLC

TSI Bethesda, LLC

TSI Germantown, LLC

TSI North Bethesda, LLC

TSI Silver Spring, LLC

TSI South Bethesda, LLC

TSI Bayonne, LLC

TSI Butler, LLC

 

 

TSI Cherry Hill, LLC

TSI Clifton, LLC

TSI Colonia, LLC

TSI Englewood, LLC

TSI Fort Lee, LLC

TSI Franklin Park, LLC

TSI Freehold, LLC

TSI Hoboken, LLC

TSI Hoboken North, LLC

TSI Jersey City, LLC

TSI Livingston, LLC

TSI Mahwah, LLC

TSI Marlboro, LLC

TSI Matawan, LLC

TSI Montclair, LLC

TSI Newark, LLC

TSI No Sweat, LLC

TSI Old Bridge, LLC

TSI Parsippany, LLC

TSI Plainsboro, LLC

TSI Princeton North, LLC

TSI Ramsey, LLC

TSI Ridgewood, LLC

TSI Somerset, LLC

TSI Springfield, LLC

TSI West Caldwell, LLC

TSI Westwood, LLC

TSI Ardmore, LLC

TSI Highpoint, LLC

TSI Market Street, LLC

TSI Radnor, LLC

TSI Rodin Place, LLC

TSI Society Hill, LLC

TSI Alexandria, LLC

TSI Clarendon, LLC

TSI Fairfax, LLC

TSI Sterling, LLC

TSI West Springfield, LLC

 

 

Schedule III

New York Financing Statements

     The following financing statements on form UCC-1, naming the Person listed below as debtor and
the Administrative Agent as secured party for the benefit of the Secured Creditors, to be filed in
the offices listed opposite the name of such party:

	 	 	 
	Debtor                	 	Filing Office
	Town Sports International, LLC

	 	Office of the Secretary of State of the State of New York

 

 

Schedule IV

Delaware Financing Statements

     The following financing statements on form UCC-1, naming the Person listed below as debtor and
the Administrative Agent as secured party for the benefit of the Secured Creditors, to be filed in
the offices listed opposite the name of such party:

	 	 	 
	Debtor            	 	Filing Office
	Town Sports International Holdings, Inc.

	 	Office of the Secretary of State of the State of Delaware
	TSI 217 Broadway, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Alexandria West, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Allston, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Arthro Fitness Services, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Astoria, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Battery Park, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bay Ridge 86th Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bayridge, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bensonhurst, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Boylston, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Broadway, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Brooklyn Belt, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Brunswick, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bulfinch, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Carmel, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor                                   	 	Filing Office
	TSI Cash Management, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Central Square, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Cobble Hill, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Commack, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Court Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Croton, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Danbury, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Deer Park, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Dobbs Ferry, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Downtown Crossing, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 23, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 31, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 34, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 36, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 41, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 48, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 51, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 59, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 76, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East 86, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor                        	 	Filing Office
	TSI East 91, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East Brunswick, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI East Meadow, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Fenway, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI First Avenue, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Forest Hills, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Garden City, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Garnerville, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Glendale, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Grand Central, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Great Neck, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Greenwich, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Hartsdale, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Hawthorne, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Herald, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Hicksville, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (CIP), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (DC), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (MA), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (MD), LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Holdings (NJ), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (PA), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Holdings (VA), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Huntington, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI International, Inc.

	 	Office of the Secretary of State of the State of Delaware
	TSI Irving Place, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Jamaica Estates, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Larchmont, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Lincoln, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Long Beach, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Mamaroneck, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Mercer Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Midwood, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Morris Park, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Murray Hill, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Nanuet, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Natick, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI New Rochelle, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Newbury Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Norwalk, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Oceanside, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Port Jefferson, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Providence Downtown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Providence Eastside, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Reade Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Rego Park, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Scarsdale, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Seaport, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Sheridan, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Smithtown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Soho, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Somers, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI South Park Slope, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Stamford Downtown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Stamford Post, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Stamford Rinks, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Staten Island, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Sunnyside, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Syosset, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Varick Street, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Wall Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Water Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 14, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 16, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 23, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 38, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 41, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 44, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 48, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 52, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 73, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 76, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 80, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 94, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 115th Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 125, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West 145th Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West Hartford, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West Newton, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West Nyack, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Westborough, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Westport, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Weymouth, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI White Plains City Center, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI White Plains, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Whitestone, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Woodmere, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Princeton, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Chevy Chase, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Columbia Heights, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Connecticut Avenue, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Dupont Circle, Inc.

	 	Office of the Secretary of State of the State of Delaware
	TSI Dupont II, Inc.

	 	Office of the Secretary of State of the State of Delaware
	TSI F Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Gallery Place, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Georgetown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Glover, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI K Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI M Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI University Management, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Washington, Inc.

	 	Office of the Secretary of State of the State of Delaware
	TSI Andover, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Davis Square, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Dedham, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Framingham, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Franklin (MA), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Lexington (MA), LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Lynnfield, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Newton, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI South End, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI South Station, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Waltham, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Watertown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Wayland, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Wellesley, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Wellington Circle, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Woburn, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bethesda, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Germantown, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI North Bethesda, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Silver Spring, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI South Bethesda, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Bayonne, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Butler, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Cherry Hill, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Clifton, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Colonia, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Englewood, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Fort Lee, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Franklin Park, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Freehold, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Hoboken, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Hoboken North, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Jersey City, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Livingston, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Mahwah, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Marlboro, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Matawan, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Montclair, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Newark, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI No Sweat, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Old Bridge, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Parsippany, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Plainsboro, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Princeton North, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Ramsey, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Ridgewood, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Somerset, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Springfield, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West Caldwell, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Westwood, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Ardmore, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Highpoint, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Market Street, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Radnor, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Rodin Place, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Society Hill, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Alexandria, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Clarendon, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI Fairfax, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

	 	 	 
	Debtor	 	Filing Office
	TSI Sterling, LLC

	 	Office of the Secretary of State of the State of Delaware
	TSI West Springfield, LLC

	 	Office of the Secretary of State of the State of Delaware

 

 

EXHIBIT F

FORM OF OFFICER’S CERTIFICATE

               I, the undersigned, [Chairman of the Board/Chief Executive Officer/President/Chief Financial
Officer/Vice President] of [NAME OF COMPANY], a __________ organized and existing under the laws of
the State of ________ (the “Company”), do hereby certify on behalf of the Company that:

               1. This Certificate is furnished pursuant to Section 6 of the Credit Agreement, dated as of
May [__], 2011, among [the Company,] [Town Sports International Holdings, Inc.,] [Town Sports
International, LLC,] the lenders from time to time party thereto and Deutsche Bank Trust Company
Americas, as Administrative Agent (such Credit Agreement, as in effect on the date of this
Certificate, being herein called the “Credit Agreement”). Unless otherwise defined herein,
capitalized terms used in this Certificate shall have the meanings set forth in the Credit
Agreement.

               1. 2. The persons named in Exhibit A attached hereto have been duly elected, have duly
qualified as, and at all times since ___________ __, 20__14 (to and including the date
hereof) have been officers of the Company, holding the respective offices in such Exhibit A set
forth opposite their names, and the signatures on such Exhibit A set forth opposite their names are
their genuine signatures.

               3. Attached hereto as Exhibit B is a true and correct copy of the [Certificate of
Incorporation] [Articles of Incorporation] [Certificate of Formation] of the Company, as filed in
the Office of the Secretary of State of the State of _________ on ___________, ____, together with
all amendments thereto adopted through the date hereof.

               4. Attached hereto as Exhibit C is a true and correct copy of the [By-Laws] [Limited Liability
Company Agreement] [Partnership Agreement] of the Company which [were] [was] duly adopted, [are]
[is] in full force and effect on the date hereof.

               5. Attached hereto as Exhibit D is a true and correct copy of resolutions which were duly
adopted on __________, 2011 [by unanimous written consent of the Board of Directors of the Company]
[by a meeting of the Board of Directors of the Company at which a quorum was present and acting
throughout], and said resolutions have not been rescinded, amended or modified. Except as attached
hereto as Exhibit D, no resolutions have been adopted by the Board of Directors of the Company
which authorize the execution, delivery or performance of any of the Credit Documents to which the
Company is a party.

               [6. On the date hereof, all of the conditions set forth in Sections 6.05, 6.06, 6.07, 6.08 and
7.01 of the Credit Agreement have been satisfied.]15

 

			
	14	 	Insert a date prior to the time of any
corporate action relating to any Credit Document.
	 
	15	 	Insert in Officers’ Certificate for the
Borrower only.

 

 

               [6][7]. On the date hereof, the representations and warranties contained in the Credit
Agreement and in the other Credit Documents are true and correct in all material respects with the
same effect as though such representations and warranties had been made on the date hereof, both
before and after giving effect to each Credit Event to occur on the date hereof and the application
of the proceeds thereof (it being understood and agreed that any representation and warranty that
is qualified by materiality or Material Adverse Effect shall be true and correct in all respects),
unless stated to relate to a specific earlier date, in which case such representations and
warranties were true and correct in all material respects (or all respects, as the case may be) as
of such earlier date.

               [7][8]. On the date hereof, no Default or Event of Default has occurred and is continuing or
would result from any Credit Event to occur on the date hereof or from the application of the
proceeds thereof.

               [8][9]. There is no pending proceeding for the dissolution or liquidation of the Company or,
to the knowledge of the undersigned, threatening its existence.

               IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of ____, 20_.

	 	 	 	 	 
	 	[NAME OF COMPANY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

               I, the undersigned, [Secretary/Assistant Secretary] of the Company, do hereby certify, solely
in my capacity as an officer of the Company and not in my individual capacity, on behalf of the
Company that:

               1. [Name of Person making above certifications] is the duly elected and qualified [Chairman of
the Board/Chief Executive Officer/President/Chief Financial Officer/Vice President] of the Company
and the signature above is [his] [her] genuine signature.

               2. The certifications made by [name of Person making above certifications] on behalf of the
Company in Items 2, 3, 4, 5 and [8] [9] above are true and correct.

               IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of _____, 20_.

	 	 	 	 	 
	 	[NAME OF COMPANY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	Name16	 	Office	 	Signature
	                    
	 	                    
	 	                    
	                    
	 	                    
	 	                    
	                    
	 	                    
	 	                    

 

			
	16	 	Include name, office and signature of each
officer who will sign any Credit Document on behalf of the Company, including
the officer who will sign the certification at the end of this Certificate or
related documentation.

 

 

EXHIBIT G

 

FORM OF

PLEDGE AGREEMENT

among

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.,

TOWN SPORTS INTERNATIONAL, LLC,

VARIOUS OTHER SUBSIDIARIES OF TOWN SPORTS INTERNATIONAL HOLDINGS,

INC.

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as COLLATERAL AGENT

Dated as of May [__], 2011

 

 

 

FORM OF PLEDGE AGREEMENT

               PLEDGE AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of May [__], 2011, among each of the undersigned pledgors (each, a
“Pledgor” and, together with any other entity that becomes a pledgor hereunder pursuant to
Section 29 hereof, the “Pledgors”) and Deutsche Bank Trust Company Americas, as
collateral agent (together with any successor collateral agent, the “Pledgee”), for the
benefit of the Secured Creditors (as defined below). Except as otherwise defined herein, all
capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used
herein as therein defined.

W
I T  N  E  S  S  E
 T  H  :

               WHEREAS, Town Sports International Holdings, Inc. (“Holdings”), Town Sports
International, LLC (the “Borrower”), the lenders from time to time party thereto (the
“Lenders”) and Deutsche Bank Trust Company Americas, as administrative agent (together with
any successor administrative agent, the “Administrative Agent”), have entered into a Credit
Agreement, dated as of May [__], 2011 (as amended, modified, restated, extended, restructured
and/or supplemented from time to time, together with any agreement refinancing in full the
Indebtedness under such agreement or successor agreements to the extent such agreement provides
that it is to be the “Credit Agreement” hereunder, the “Credit Agreement”), providing for
the making of Loans to, and the issuance of, and participation in, Letters of Credit for the
account, of the Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the
Administrative Agent and the Pledgee are herein called the “Lender Creditors”);

               WHEREAS, pursuant to the Credit Agreement Party Guaranty, each Credit Agreement Party has
guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described
(and defined) therein;

               WHEREAS, pursuant to the Subsidiaries Guaranty, each Pledgor (other than Holdings and the
Borrower) has jointly and severally guaranteed the payment and performance when due of all
Guaranteed Obligations as described (and defined) therein;

               WHEREAS, the Borrower and/or one or more of its Subsidiaries may at any time and from time to
time enter into one or more Interest Rate Protection Agreements or Other Hedging Agreements with
one or more Lender Creditors or any affiliate thereof (each such Lender Creditor or affiliate, even
if the respective Lender Creditor subsequently ceases to be a Lender under the Credit Agreement for
any reason, together with such Lender Creditor’s or affiliate’s successors and assigns, if any,
collectively, the “Other Creditors” and, together with the Lender Creditors, the
“Secured Creditors”);

               WHEREAS, it is a condition precedent to the making of Loans to the Borrower and the issuance
of, and participation in, Letters of Credit for the account of the Borrower under the Credit
Agreement and to the Other Creditors entering into Interest Rate Protection

 

 

Page 2

Agreements and Other Hedging Agreements that each Pledgor shall have executed and delivered to
the Pledgee this Agreement; and

               WHEREAS, each Pledgor will obtain benefits from the incurrence of Loans by the Borrower and
the issuance of, and participation in, Letters of Credit for the account of the Borrower under the
Credit Agreement and the entering into by the Borrower and/or one or more of its Subsidiaries of
Interest Rate Protection Agreements or Other Hedging Agreements and, accordingly, desires to enter
into this Agreement in order to satisfy the conditions described in the preceding recital and to
induce the Lenders to make Loans to the Borrower and issue, and/or participate in, Letters of
Credit for the account of the Borrower and the Other Creditors to enter into Interest Rate
Protection Agreements or Other Hedging Agreements with the Borrower and/or one or more of its
Subsidiaries;

               NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Pledgor,
the receipt and sufficiency of which are hereby acknowledged, each Pledgor hereby makes the
following representations and warranties to the Pledgee for the benefit of the Secured Creditors
and hereby covenants and agrees with the Pledgee for the benefit of the Secured Creditors as
follows:

               • SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor for the benefit of the
Secured Creditors to secure:

          • the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations, liabilities and indebtedness (including,
without limitation, principal, premium, interest, reimbursement obligations (both actual
and contingent) under Letters of Credit, fees, costs, and indemnities (including in each
case, without limitation, all interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency, reorganization or
similar proceeding of any Pledgor or any Subsidiary thereof at the rate provided for in
the respective documentation, whether or not a claim for post-petition interest is
allowed in any such proceeding) of such Pledgor to the Lender Creditors, whether now
existing or hereafter incurred under, arising out of, or in connection with, the Credit
Agreement and the other Credit Documents to which such Pledgor is a party (including, in
the case of each Pledgor that is a Guarantor, all such obligations, liabilities and
indebtedness of such Pledgor under its Guaranty) and the due performance and compliance
by such Pledgor with all of the terms, conditions and agreements contained in the Credit
Agreement and in such other Credit Documents (all such obligations, liabilities and
indebtedness under this clause (i), except to the extent consisting of obligations,
liabilities or indebtedness with respect to Interest Rate Protection Agreements or Other
Hedging Agreements, being herein collectively called the “Credit Document
Obligations”);

          • the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations, liabilities and indebtedness (including,
in each case, without limitation, all interest that accrues after the commencement of
any case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of any Pledgor or any of its Subsidiaries at the
rate provided for

 

 

Page 3

in the respective documentation, whether or not a claim for post-petition interest
is allowed in any such proceeding) owing by such Pledgor to the Other Creditors under,
or with respect to (including, in the case of each Pledgor that is a Guarantor, all such
obligations, liabilities and indebtedness of such Pledgor under its Guaranty), each
Interest Rate Protection Agreement and Other Hedging Agreement, whether such Interest
Rate Protection Agreement or Other Hedging Agreement is now in existence or hereafter
arising and the due performance and compliance by such Pledgor with all of the terms,
conditions and agreements contained therein (all such obligations, liabilities and
indebtedness described in this clause (ii) being herein collectively called the
“Other Obligations”);

          • any and all sums advanced by the Pledgee in order to preserve the
Collateral (as hereinafter defined) or preserve its security interest in the Collateral;

          • in the event of any proceeding for the collection or enforcement of any
indebtedness, obligations or liabilities of such Pledgor referred to in clauses (i) and
(ii) above, after an Event of Default shall have occurred and be continuing, the
reasonable expenses of retaking, holding, preparing for sale or lease, selling or
otherwise disposing of or realizing on the Collateral, or of any exercise by the Pledgee
of its rights hereunder, together with reasonable attorneys’ fees and court costs; and

          • all amounts paid by any Secured Creditor as to which such Secured Creditor
has the right to reimbursement under Section 11 of this Agreement;

all such obligations, liabilities, indebtedness, sums and expenses set forth in clauses (i) through
(v) of this Section 1 being herein collectively called the “Obligations,” it being
acknowledged and agreed that the “Obligations” shall include extensions of credit of the types
described above, whether outstanding on the date of this Agreement or extended from time to time
after the date of this Agreement.

               • DEFINITIONS. • Reference to singular terms shall include the plural and vice versa.

               • The following capitalized terms used herein shall have the definitions specified
below:

               “Administrative Agent” shall have the meaning set forth in the recitals hereto.

               “Adverse Claim” shall have the meaning given such term in Section 8-102(a)(1) of the
UCC.

               “Agreement” shall have the meaning set forth in the first paragraph hereof.

               “Borrower” shall have the meaning set forth in the recitals hereto.

 

 

Page 4

               “Certificated Security” shall have the meaning given such term in Section 8-102(a)(4)
of the UCC.

               “Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5)
of the UCC.

               “Collateral” shall have the meaning set forth in Section 3.1 hereof.

               “Collateral Accounts” shall mean any and all accounts established and maintained by
the Pledgee in the name of any Pledgor at any time while an Event of Default shall have occurred
and be continuing to which Collateral may be credited after the occurrence and during the
continuance of an Event of Default.

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

               “Credit Document Obligations” shall have the meaning set forth in Section 1(i)
hereof.

               “Credit Documents” shall have the meaning provided in the Credit Agreement, as such
documents may be amended, modified, restated and/or supplemented from time to time in connection
with the Credit Agreement.

               “Equity Interest” of any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or interest in (however
designated) equity of such Person, including, without limitation, any common stock, preferred
stock, any limited or general partnership interest and any limited liability company membership
interest.

               “Event of Default” shall mean any Event of Default under, and as defined in, the
Credit Agreement or, after the Credit Document Obligations have been paid in full and all Letters
of Credit and Commitments have terminated, an Event of Default (or similar term) under any Interest
Rate Protection Agreement or Other Hedging Agreement entered into with an Other Creditor.

               “Exempted Foreign Entity” shall mean any Foreign Subsidiary of the Borrower that is
treated as a corporation or an association taxable as a corporation for U.S. Federal income tax
purposes.

               “Financial Asset” shall have the meaning given such term in Section 8-102(a)(9) of the
UCC.

               “Foreign Subsidiary” shall have the meaning given such term the Credit Agreement.

               “Holdings” shall have the meaning set forth in the recitals hereto.

               “Indemnitees” shall have the meaning set forth in Section 11 hereof.

 

 

Page 5

               “Instrument” shall have the meaning given such term in Section 9-102(a)(47) of the
UCC.

               “Investment Property” shall have the meaning given such term in Section 9-102(a)(49)
of the UCC.

               “Lender Creditors” shall have the meaning set forth in the recitals hereto.

               “Lenders” shall have the meaning set forth in the recitals hereto.

               “Limited Liability Company Assets” shall mean all assets, whether tangible or
intangible and whether real, personal or mixed (including, without limitation, all limited
liability company capital and interest in other limited liability companies), at any time owned by
any Pledgor or represented by any Limited Liability Company Interest.

               “Limited Liability Company Interests” shall mean the entire limited liability company
membership interest at any time owned by any Pledgor in any limited liability company.

               “Non-Voting Equity Interests” shall mean all Equity Interests of any Foreign
Subsidiary of the Borrower which are not Voting Equity Interests.

               “Notes” shall mean (x) all intercompany notes at any time issued to each Pledgor and
(y) all other promissory notes from time to time issued to, or held by, each Pledgor.

               “Obligations” shall have the meaning set forth in Section 1 hereof.

               “Other Creditors” shall have the meaning set forth in the recitals hereto.

               “Other Hedging Agreements” shall have the meaning given such term the Credit
Agreement.

               “Other Obligations” shall have the meaning set forth in Section 1(ii) hereof.

               “Partnership Assets” shall mean all assets, whether tangible or intangible and whether
real, personal or mixed (including, without limitation, all partnership capital and interest in
other partnerships), at any time owned or represented by any Partnership Interest.

               “Partnership Interest” shall mean the entire general partnership interest or limited
partnership interest at any time owned by any Pledgor in any general partnership or limited
partnership.

               “Person” shall have the meaning given such term the Credit Agreement.

               “Pledged Notes” shall have the meaning set forth in Section 3.5 hereof.

               “Pledgee” shall have the meaning set forth in the first paragraph hereof.

 

 

Page 6

               “Pledgor” shall have the meaning set forth in the first paragraph hereof.

               “Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC
and, in any event, shall also include, but not be limited to, (i) any and all proceeds of any
insurance, indemnity, warranty or guaranty payable to the Pledgee or any Pledgor from time to time
with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or
due and payable to any Pledgor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental
authority (or any Person acting under color of governmental authority), and (iii) any and all other
amounts from time to time paid or payable under or in connection with any of the Collateral.

               “Registered Organization” shall mean a “registered organization” as such term is
defined in Section 9-102 (a) (70) of the UCC.

               “Required Lenders” shall have the meaning given such term in the Credit Agreement.

               “Required Secured Creditors” shall have the meaning given such term in the Security
Agreement.

               “Secured Creditors” shall have the meaning set forth in the recitals hereto.

               “Secured Debt Agreements” shall mean and include (x) this Agreement, (y) the other
Credit Documents, and (z) the Interest Rate Protection Agreements and Other Hedging Agreements
entered into with any Other Creditor.

               “Securities Account” shall have the meaning given such term in Section 8-501(a) of the
UCC.

               “Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from
time to time.

               “Securities Intermediary” shall have the meaning given such term in Section 8-102(14)
of the UCC.

               “Security” and “Securities” shall have the meaning given such term in Section
8-102(a)(15) of the UCC and shall in any event also include all Stock and all Notes.

               “Security Entitlement” shall have the meaning given such term in Section 8-102(a)(17)
of the UCC.

               “Stock” shall mean all of the issued and outstanding shares of capital stock at any
time owned by any Pledgor of any corporation.

               “Subsidiary” shall have the meaning given such term in the Credit Agreement.

               “Termination Date” shall have the meaning set forth in the Security Agreement.

 

 

Page 7

               “Transmitting Utility” shall mean a “transmitting utility” as such term is defined in
Section 9-102(a)(80) of the UCC.

               “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time; provided that all references herein to specific sections or subsections
of the UCC are references to such sections or subsections, as the case may be, of the Uniform
Commercial Code as in effect in the State of New York on the date hereof.

               “Uncertificated Security” shall have the meaning given such term in Section
8-102(a)(18) of the UCC.

               “Voting Equity Interests” of any Foreign Subsidiary of the Borrower shall mean all
classes of Equity Interests of such Foreign Subsidiary entitled to vote.

               • PLEDGE OF SECURITIES, ETC.

               • Pledge. To secure the Obligations now or hereafter owed or to be performed by such
Pledgor, each Pledgor does hereby grant, pledge and assign to the Pledgee for the benefit of the
Secured Creditors, and does hereby create a continuing security interest in favor of the Pledgee
for the benefit of the Secured Creditors in, all of its right, title and interest in and to the
following, whether now existing or hereafter from time to time acquired (collectively, the
“Collateral”):

               • each of the Collateral Accounts, including any and all assets of whatever type or kind
deposited by such Pledgor in each such Collateral Account, whether now owned or hereafter acquired,
existing or arising, including, without limitation, all Financial Assets, Investment Property,
monies, checks, drafts, Instruments, Securities or interests therein of any type or nature
deposited or required by the Credit Agreement or any other Secured Debt Agreement to be deposited
in each such Collateral Account, and all investments and all certificates and other Instruments
(including depository receipts, if any) from time to time representing or evidencing the same, and
all dividends, interest, distributions, cash and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing;

               • all Securities owned or held by such Pledgor from time to time and all options and
warrants owned by such Pledgor from time to time to purchase Securities;

               • all Limited Liability Company Interests owned by such Pledgor from time to time and
all of its right, title and interest in each limited liability company to which each such Limited
Liability Company Interest relates, whether now existing or hereafter acquired, including, without
limitation, to the fullest extent permitted under the terms and provisions of the documents and
agreements governing such Limited Liability Company Interests and applicable law:

          • all the capital thereof and its interest in all profits, income,
surpluses, losses, Limited Liability Company Assets and other distributions to

 

 

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which such Pledgor shall at any time be entitled in respect of such Limited
Liability Company Interests;

          • all other payments due or to become due to such Pledgor in respect of
Limited Liability Company Interests, whether under any limited liability company
agreement or otherwise, whether as contractual obligations, damages, insurance
proceeds or otherwise;

          • all of its claims, rights, powers, privileges, authority, options,
security interests, liens and remedies, if any, under any limited liability company
agreement or operating agreement, or at law or otherwise in respect of such Limited
Liability Company Interests;

          • all present and future claims, if any, of such Pledgor against any such
limited liability company for monies loaned or advanced, for services rendered or
otherwise;

          • all of such Pledgor’s rights under any limited liability company
agreement or operating agreement or at law to exercise and enforce every right,
power, remedy, authority, option and privilege of such Pledgor relating to such
Limited Liability Company Interests, including any power to terminate, cancel or
modify any such limited liability company agreement or operating agreement, to
execute any instruments and to take any and all other action on behalf of and in the
name of any of such Pledgor in respect of such Limited Liability Company Interests
and any such limited liability company, to make determinations, to exercise any
election (including, but not limited to, election of remedies) or option or to give
or receive any notice, consent, amendment, waiver or approval, together with full
power and authority to demand, receive, enforce, collect or receipt for any of the
foregoing or for any Limited Liability Company Asset, to enforce or execute any
checks, or other instruments or orders, to file any claims and to take any action in
connection with any of the foregoing; and

          • all other property hereafter delivered in substitution for or in
addition to any of the foregoing, all certificates and instruments representing or
evidencing such other property and all cash, securities, interest, dividends, rights
and other property at any time and from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all thereof;

               • all Partnership Interests owned by such Pledgor from time to time and all of its
right, title and interest in each partnership to which each such Partnership Interest relates,
whether now existing or hereafter acquired, including, without limitation, to the fullest extent
permitted under the terms and provisions of the documents and agreements governing such Partnership
Interests and applicable law:

          • all the capital thereof and its interest in all profits, income,
surpluses, losses, Partnership Assets and other distributions to which such Pledgor
shall at any time be entitled in respect of such Partnership Interests;

 

 

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          • all other payments due or to become due to such Pledgor in respect of
Partnership Interests, whether under any partnership agreement or otherwise, whether
as contractual obligations, damages, insurance proceeds or otherwise;

          • all of its claims, rights, powers, privileges, authority, options,
security interests, liens and remedies, if any, under any partnership agreement or
operating agreement, or at law or otherwise in respect of such Partnership
Interests;

          • all present and future claims, if any, of such Pledgor against any such
partnership for monies loaned or advanced, for services rendered or otherwise;

          • all of such Pledgor’s rights under any partnership agreement or
operating agreement or at law to exercise and enforce every right, power, remedy,
authority, option and privilege of such Pledgor relating to such Partnership
Interests, including any power to terminate, cancel or modify any partnership
agreement or operating agreement, to execute any instruments and to take any and all
other action on behalf of and in the name of any of such Pledgor in respect of such
Partnership Interests and any such partnership, to make determinations, to exercise
any election (including, but not limited to, election of remedies) or option or to
give or receive any notice, consent, amendment, waiver or approval, together with
full power and authority to demand, receive, enforce, collect or receipt for any of
the foregoing or for any Partnership Asset, to enforce or execute any checks, or
other instruments or orders, to file any claims and to take any action in connection
with any of the foregoing; and

          • all other property hereafter delivered in substitution for or in
addition to any of the foregoing, all certificates and instruments representing or
evidencing such other property and all cash, securities, interest, dividends, rights
and other property at any time and from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all thereof;

               • all Security Entitlements owned by such Pledgor from time to time in any and all of
the foregoing;

               • all Financial Assets and Investment Property owned by such Pledgor from time to time;
and

               • all Proceeds of any and all of the foregoing;

provided that (A)(x) until a change in the relevant sections of the Code or the
regulations, rules, rulings, notices or other official pronouncements issued or promulgated
thereunder (in which case this clause (x) shall no longer be applicable), no Pledgor shall be
required at any time to pledge hereunder more than 65% of the total combined voting power of all
classes of Voting Equity Interests of any Exempted Foreign Entity, and (y) each Pledgor shall be
required to pledge hereunder 100% of the Non-Voting Equity Interests of each Exempted Foreign
Entity at

 

 

Page 10

any time and from time to time acquired by such Pledgor, which Non-Voting Equity Interests shall
not be subject to the limitations described in preceding clause (x) and (B) no Pledgor shall be
required to grant a security interest hereunder in (and the term “Collateral” shall not
include) the Equity Interests in Persons that are not Wholly-Owned Subsidiaries of Holdings but
only to the extent that the pledge of such Equity Interests is not permitted hereunder by the terms
of any agreement or organizational document of such Person and only so long as such contractual
prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC,
the Bankruptcy Code or any other requirement of law.

               Notwithstanding anything to the contrary contained in this Agreement, the Pledgors shall not
be required to take any actions to perfect the Collateral Agent’s security interest hereunder
except to the extent that a security interest in such types of Collateral can be perfected (i) by
the filings of a UCC-1 (or similar) financing statement under the applicable UCC, (ii) possession
of certificated Securities evidencing Equity Interests, (iii) possession of Instruments
constituting Notes, (iv) as provided in Section 3.2(a)(ii) hereof and (v) as provided
in Section 3.2(a)(v) hereof and the representations, warranties and covenants contained in
this Agreement with respect to a perfected security interest in such Collateral shall be qualified
to the extent provided in this paragraph.

               • Procedures. (a) To the extent that any Pledgor at any time or from time to time
owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall
automatically (and without the taking of any action by the respective Pledgor) be pledged pursuant
to Section 3.1 of this Agreement and, in addition thereto, the respective Pledgor shall (to
the extent provided below) take the following actions as set forth below (as promptly as
practicable and, in any event, within 10 Business Days after it obtains such Collateral (as such
period may be extended by the Collateral Agent in its sole discretion)) for the benefit of the
Pledgee and the other Secured Creditors:

          • with respect to a Certificated Security representing an Equity Interest
(other than a Certificated Security credited on the books of a Clearing Corporation or
Securities Intermediary), the respective Pledgor shall physically deliver such
Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in blank;

          • with respect to an Uncertificated Security (other than an Uncertificated
Security credited on the books of a Clearing Corporation or Securities Intermediary),
the respective Pledgor shall cause the issuer of such Uncertificated Security (unless
the issuer of such Uncertificated Security is not a Subsidiary of such Pledgor) to duly
authorize and execute, and deliver to the Pledgee, an agreement for the benefit of the
Pledgee and the other Secured Creditors substantially in the form of Annex H
hereto (appropriately completed to the reasonable satisfaction of the Pledgee and with
such modifications, if any, as shall be reasonably satisfactory to the Pledgee) pursuant
to which such issuer agrees to comply with any and all instructions originated by the
Pledgee without further consent by the registered owner and not to comply with
instructions regarding such Uncertificated Security (and any Partnership Interests and
Limited Liability Company Interests issued by such issuer) originated by any other
Person other than a court of competent jurisdiction;

 

 

Page 11

          • with respect to a Partnership Interest or a Limited Liability Company
Interest (other than a Partnership Interest or Limited Liability Company Interest
credited on the books of a Clearing Corporation or Securities Intermediary), if such
Partnership Interest or Limited Liability Company Interest is represented by a
certificate and is a Security for purposes of the UCC, the procedure set forth in
Section 3.2(a)(i) hereof;

          • with respect to any Intercompany Note and any other Note in a principal
amount in excess of $1,000,000, physical delivery of such Note to the Pledgee, endorsed
to the Pledgee or endorsed in blank; and

          • with respect to cash proceeds from any of the Collateral described in
Section 3.1 hereof which the Pledgee is entitled to retain pursuant to the terms
of this Agreement, establishment by the Pledgee of a Collateral Account.

In addition to the foregoing, in the event that any Partnership Interests or Limited Liability
Company Interests of any Pledgor which were not previously Securities become (A) Certificated
Securities, such Pledgor shall follow the procedure set forth in Section 3.2(a)(i), or (B)
Uncertificated Securities, such Pledgor shall follow the procedure set forth in Section
3.2(a)(ii), in either case, within 10 Business Days after the date that such Partnership
Interests or Limited Liability Company Interests become Securities (as such period may be extended
by the Collateral Agent in its sole discretion).

               (b) In addition to the actions required to be taken pursuant to Section 3.2(a) hereof,
each Pledgor shall from time to time cause appropriate financing statements (on Form UCC-1 or other
appropriate form) under the Uniform Commercial Code as in effect in the various relevant States,
covering all Collateral hereunder (with the form of such financing statements to be satisfactory to
the Pledgee), to be filed in the relevant filing offices so that at all times the Pledgee has a
security interest in all Investment Property and other Collateral which is perfected by the filing
of such financing statements (in each case to the maximum extent perfection by filing may be
obtained under the laws of the relevant States, including, without limitation, Section 9-312(a) of
the UCC).

               • Subsequently Acquired Collateral. If any Pledgor shall acquire (by purchase, stock
dividend or similar distribution or otherwise) any additional Collateral at any time or from time
to time after the date hereof, such Collateral shall automatically (and without any further action
being required to be taken) be subject to the pledge and security interests created pursuant to
Section 3.1 hereof and, furthermore, the respective Pledgor will promptly thereafter take
(or cause to be taken) all action with respect to such Collateral in accordance with the procedures
set forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee such
supplements to Annexes A through G hereto as are reasonably necessary to cause such
annexes to be complete and accurate at such time. Without limiting the foregoing, each Pledgor
shall be required to pledge hereunder the Equity Interests of any Exempted Foreign Entity at any
time and from time to time after the date hereof acquired by such Pledgor, provided that
(x) a change in the relevant sections of the Code or the regulations, rules, rulings, notices or
other official pronouncements issued or promulgated thereunder, no Pledgor shall be required at any

 

 

Page 12

time to pledge hereunder more than 65% of the total combined voting power of all classes of Voting
Equity Interests of
any Exempted Foreign Entity and (y) each Pledgor shall be required to pledge hereunder 100% of
the Non-Voting Equity Interests of each Exempted Foreign Entity at any time and from time to time
acquired by such Pledgor.

               • Transfer Taxes. Each pledge of Collateral under Section 3.1 or Section
3.3 hereof shall be accompanied by any transfer tax stamps required in connection with the
pledge of such Collateral.

               • Definition of Pledged Notes. All Notes at any time pledged or required to be pledged
hereunder are hereinafter called the “Pledged Notes.”

               • Certain Representations and Warranties Regarding the Collateral. Each Pledgor
represents and warrants that on the date hereof: (i) the exact legal name of such Pledgor, the type
of organization of such Pledgor, whether or not such Pledgor is a Registered Organization, the
jurisdiction of organization of such Pledgor, the organizational identification number (if any) of
such Pledgor, and whether or not such Pledgor is a Transmitting Utility, is listed on Annex
A hereto; (ii) each Subsidiary of such Pledgor, and the direct ownership thereof, is listed in
Annex B hereto; (iii) the Stock (and any warrants or options to purchase Stock) held by
such Pledgor consists of the number and type of shares of the stock (or warrants or options to
purchase any stock) of the corporations as described in Annex C hereto; (iv) such Stock
constitutes that percentage of the issued and outstanding capital stock of the issuing corporation
as is set forth in Annex C hereto; (v) the Notes held by such Pledgor consist of the
promissory notes described in Annex D hereto where such Pledgor is listed as the lender;
(vi) the Limited Liability Company Interests held by such Pledgor consist of the number and type of
interests of the Persons described in Annex E hereto; (vii) each such Limited Liability
Company Interest constitutes that percentage of the issued and outstanding equity interest of the
issuing Person as set forth in Annex E hereto; (viii) the Partnership Interests held by
such Pledgor consist of the number and type of interests of the Persons described in Annex
F hereto; (ix) each such Partnership Interest constitutes that percentage or portion of the
entire partnership interest of the Partnership as set forth in Annex F hereto; (x) the
exact address of the chief executive office of such Pledgor is listed on Annex G hereto;
(xi) the Pledgor has complied with the respective procedure set forth in Section 3.2(a)
hereof with respect to each item of Collateral described in Annexes B through F
hereto; and (xi) on the date hereof, such Pledgor owns no other Securities, Stock, Notes, Limited
Liability Company Interests or Partnership Interests.

               • APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. If and to the extent necessary to enable the
Pledgee to perfect its security interest in any of the Collateral or to exercise any of its
remedies hereunder, the Pledgee shall have the right to appoint one or more sub-agents for the
purpose of retaining physical possession of the Collateral, which may be held (in the discretion of
the Pledgee) in the name of the relevant Pledgor, endorsed or assigned in blank or in favor of the
Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by the Pledgee.

               • VOTING, ETC., WHILE NO EVENT OF DEFAULT. Each Pledgor shall be entitled to exercise any and
all voting and other consensual rights pertaining to the Collateral

 

 

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owned by it, and to give
consents, waivers or ratifications in respect thereof; provided that, in each case, no vote
shall be cast or any consent, waiver or ratification given or any action taken or
omitted to be taken which would violate, result in a breach of any covenant contained in, or
be inconsistent with any of the terms of any Secured Debt Agreement, or which could reasonably be
expected to have the effect of impairing the value of the Collateral or any part thereof or the
position or interests of the Pledgee or any other Secured Creditor in the Collateral, unless
expressly permitted by the terms of the Secured Debt Agreements. Notwithstanding the foregoing,
all such rights of each Pledgor to vote and to give consents, waivers and ratifications shall cease
in case either (x) an Event of Default under Section 11.05 of the Credit Agreement has occurred and
is continuing or (y) any other Event of Default has occurred and is continuing and the Pledgee has
otherwise notified Holdings or the Borrower, and Section 7 hereof shall become applicable.

               • DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there shall have occurred and be
continuing either (x) an Event of Default under Section 11.05 of the Credit Agreement or (y) any
other Event of Default and the Pledgee has otherwise notified Holdings or the Borrower, all cash
dividends, cash distributions, cash Proceeds and other cash amounts payable in respect of the
Collateral shall be paid to the respective Pledgor. The Pledgee shall be entitled to receive
directly, and to retain as part of the Collateral:

          • all other or additional stock, notes, certificates, limited liability
company interests, partnership interests, instruments or other securities or property
(including, but not limited to, cash dividends other than as set forth above) paid or
distributed by way of dividend or otherwise in respect of the Collateral;

          • all other or additional stock, notes, certificates, limited liability
company interests, partnership interests, instruments or other securities or property
(including, but not limited to, cash (although such cash may be paid directly to the
respective Pledgor so long as no Event of Default then exists)) paid or distributed in
respect of the Collateral by way of stock-split, spin-off, split-up, reclassification,
combination of shares or similar rearrangement; and

          • all other or additional stock, notes, certificates, limited liability
company interests, partnership interests, instruments or other securities or property
(including, but not limited to, cash but only if an Event of Default then exists) which
may be paid in respect of the Collateral by reason of any consolidation, merger,
exchange of stock, conveyance of assets, liquidation or similar corporate or other
reorganization.

                    Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee’s right to receive the proceeds of the Collateral in any form in accordance with
Section 3 of this Agreement. All dividends, distributions or other payments which
are received by any Pledgor contrary to the provisions of this Section 6 or
Section 7 hereof shall be received in trust for the benefit of the Pledgee, shall be
segregated from other property or funds of such Pledgor and shall be forthwith paid over to
the Pledgee as Collateral in the same form as so received (with any necessary endorsement).

 

 

Page 14

               
• REMEDIES IN CASE OF AN EVENT OF DEFAULT. If there shall have occurred and be continuing an
Event of Default, then and in every such case, the Pledgee shall be entitled to exercise all of the
rights, powers and remedies (whether vested in it by this
Agreement, any other Secured Debt Agreement or by law) for the protection and enforcement of
its rights in respect of the Collateral, and the Pledgee shall be entitled to exercise all the
rights and remedies of a secured party under the UCC as in effect in any relevant jurisdiction and
also shall be entitled, without limitation, to exercise the following rights, which each Pledgor
hereby agrees to be commercially reasonable:

          • to receive all amounts payable in respect of the Collateral otherwise
payable under Section 6 hereof to the respective Pledgor;

          • to transfer all or any part of the Collateral into the Pledgee’s name or
the name of its nominee or nominees;

          • to accelerate any Pledged Note which may be accelerated in accordance with
its terms, and take any other lawful action to collect upon any Pledged Note (including,
without limitation, to make any demand for payment thereon);

          • to vote (and exercise all rights and powers in respect of voting) all or
any part of the Collateral (whether or not transferred into the name of the Pledgee) and
give all consents, waivers and ratifications in respect of the Collateral and otherwise
act with respect thereto as though it were the outright owner thereof (each Pledgor
hereby irrevocably constituting and appointing the Pledgee the proxy and
attorney-in-fact of such Pledgor, with full power of substitution to do so);

          • at any time and from time to time to sell, assign and deliver, or grant
options to purchase, all or any part of the Collateral, or any interest therein, at any
public or private sale, without demand of performance, advertisement or, notice of
intention to sell or of the time or place of sale or adjournment thereof or to redeem or
otherwise purchase or dispose (all of which are hereby waived by each Pledgor), for
cash, on credit or for other property, for immediate or future delivery without any
assumption of credit risk, and for such price or prices and on such terms as the Pledgee
in its absolute discretion may determine, provided that at least 10 days’
written notice of the time and place of any such sale shall be given to the respective
Pledgor. The Pledgee shall not be obligated to make any such sale of Collateral
regardless of whether any such notice of sale has theretofore been given. Each Pledgor
hereby waives and releases to the fullest extent permitted by law any right or equity of
redemption with respect to the Collateral, whether before or after sale hereunder, and
all rights, if any, of marshalling the Collateral and any other security or the
Obligations or otherwise. At any such sale, unless prohibited by applicable law, the
Pledgee on behalf of the Secured Creditors may bid for and purchase all or any part of
the Collateral so sold free from any such right or equity of redemption. Neither the
Pledgee nor any other Secured Creditor shall be liable for failure to collect or realize
upon any or all of the Collateral or for any delay in so doing nor

 

 

Page 15

shall any of them be
under any obligation to take any action whatsoever with regard thereto; and

          • to set-off any and all Collateral against any and all Obligations, and to
withdraw any and all cash or other Collateral from any and all Collateral Accounts and
to apply such cash and other Collateral to the payment of any and all Obligations.

               • REMEDIES, CUMULATIVE, ETC. Each and every right, power and remedy of the Pledgee provided for
in this Agreement or in any other Secured Debt Agreement, or now or hereafter existing at law or in
equity or by statute shall be cumulative and concurrent and shall be in addition to every other
such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other
Secured Creditor of any one or more of the rights, powers or remedies provided for in this
Agreement or any other Secured Debt Agreement or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any
other Secured Creditor of all such other rights, powers or remedies, and no failure or delay on the
part of the Pledgee or any other Secured Creditor to exercise any such right, power or remedy shall
operate as a waiver thereof. No notice to or demand on any Pledgor in any case shall entitle it to
any other or further notice or demand in similar or other circumstances or constitute a waiver of
any of the rights of the Pledgee or any other Secured Creditor to any other or further action in
any circumstances without notice or demand. The Secured Creditors agree that this Agreement may be
enforced only by the action of the Pledgee, in each case, acting upon the instructions of the
Required Secured Creditors, and that no other Secured Creditor shall have any right individually to
seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby,
it being understood and agreed that such rights and remedies may be exercised by the Pledgee for
the benefit of the Secured Creditors upon the terms of this Agreement and the Security Agreement.

               • APPLICATION OF PROCEEDS. 

               • All monies collected by the Pledgee upon any sale or other
disposition of the Collateral pursuant to the terms of this Agreement, together with all other
monies received by the Pledgee hereunder, shall be applied in the manner provided in the Security
Agreement.

               • It is understood and agreed that each Pledgor shall remain jointly and severally
liable with respect to its Obligations to the extent of any deficiency between the amount of the
proceeds of the Collateral pledged by it hereunder and the aggregate amount of such Obligations.

               • PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the Pledgee hereunder (whether
by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the
receipt of the Pledgee or the officer making such sale shall be a sufficient discharge to the
purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be
obligated to see to the application of any part of the purchase money paid over to the Pledgee or
such officer or be answerable in any way for the misapplication or nonapplication thereof.

 

 

Page 16

               • INDEMNITY. Each Pledgor jointly and severally agrees (i) to indemnify and hold harmless the
Pledgee and each other Secured Creditor (in their capacity as such) and their respective
successors, assigns, employees, advisors, agents and affiliates (as to any Indemnitee, its
“Related Parties”) (individually an “Indemnitee”, and collectively, the
“Indemnitees”) from and against any and all obligations, damages, injuries, penalties,
claims, demands, losses,
judgments and liabilities (including, without limitation, liabilities for penalties) of
whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses
and disbursements, including reasonable attorneys’ fees and expenses (limited, in the case of any
Event of Default, to one counsel to the Administrative Agent, one additional counsel for all
Issuing Lenders and Lenders, taken as a whole, one local counsel for the Administrative Agent and
the Lenders, taken as a whole, in each relevant jurisdiction, and, solely in the case of an actual
or perceived conflict of interests, one additional counsel in each relevant jurisdiction to each
group of affected Lenders similarly situated, taken as a whole), in each case arising out of or
resulting from this Agreement or the exercise by any Indemnitee of any right or remedy granted to
it hereunder (but excluding any obligations, damages, injuries, penalties, claims, demands, losses,
judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of
whatever kind or nature to the extent incurred or arising by reason of gross negligence or willful
misconduct of such Indemnitee or its Related Parties (as determined by a court of competent
jurisdiction in a final and non-appealable decision)). In no event shall the Pledgee hereunder be
liable, in the absence of gross negligence or willful misconduct on its part (as determined by a
court of competent jurisdiction in a final and non-appealable decision), for any matter or thing in
connection with this Agreement other than to account for monies or other property actually received
by it in accordance with the terms hereof. If and to the extent that the obligations of any
Pledgor under this Section 11 are unenforceable for any reason, such Pledgor hereby agrees
to make the maximum contribution to the payment and satisfaction of such obligations which is
permissible under applicable law. The indemnity obligations of each Pledgor contained in this
Section 11 shall continue in full force and effect notwithstanding the full payment of all
the Notes issued under the Credit Agreement, the termination of all Interest Rate Protection
Agreements and Other Hedging Agreements and Letters of Credit, and the payment of all other
Obligations and notwithstanding the discharge thereof.

               • PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER. • Nothing herein shall be
construed to make the Pledgee or any other Secured Creditor liable as a member of any limited
liability company or as a partner of any partnership and neither the Pledgee nor any other Secured
Creditor by virtue of this Agreement or otherwise (except as referred to in the following sentence)
shall have any of the duties, obligations or liabilities of a member of any limited liability
company or as a partner in any partnership. The parties hereto expressly agree that, unless the
Pledgee shall become the absolute owner of Collateral consisting of a Limited Liability Company
Interest or a Partnership Interest pursuant hereto and is admitted as a member or partner of the
respective Limited Liability Company or Partnership, this Agreement shall not be construed as
creating a partnership or joint venture among the Pledgee, any other Secured Creditor, any Pledgor
and/or any other Person.

               • Except as provided in the last sentence of paragraph (a) of this Section 12,
the Pledgee, by accepting this Agreement, did not intend to become a member of any limited
liability company or a partner of any partnership or otherwise be deemed to be a co-venturer with

 

 

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respect to any Pledgor, any limited liability company, partnership and/or any other Person either
before or after an Event of Default shall have occurred. The Pledgee shall have only those powers
set forth herein and the Secured Creditors shall assume none of the duties, obligations or
liabilities of a member of any limited liability company or as a partner of any partnership or any
Pledgor except as provided in the last sentence of paragraph (a) of this Section 12.

               • The Pledgee and the other Secured Creditors shall not be obligated to perform or
discharge any obligation of any Pledgor as a result of the pledge hereby effected.

               • The acceptance by the Pledgee of this Agreement, with all the rights, powers,
privileges and authority so created, shall not at any time or in any event obligate the Pledgee or
any other Secured Creditor to appear in or defend any action or proceeding relating to the
Collateral to which it is not a party, or to take any action hereunder or thereunder, or to expend
any money or incur any expenses or perform or discharge any obligation, duty or liability under the
Collateral.

               • FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor agrees that it will join with the
Pledgee in executing and, at such Pledgor’s own expense, file and refile under the UCC or other
applicable law such financing statements, continuation statements and other documents, in form
reasonably acceptable to the Pledgee, in such offices as the Pledgee (acting on its own or on the
instructions of the Required Secured Creditors) may deem reasonably necessary or appropriate and
wherever required or permitted by law in order to perfect and preserve the Pledgee’s security
interest in the Collateral hereunder and hereby authorizes the Pledgee to file financing statements
and amendments thereto relative to all or any part of the Collateral (including, without
limitation, financing statements which list the Collateral specifically and/or “all assets” as
collateral) without the signature of such Pledgor where permitted by law, and agrees to do such
further acts and things and to execute and deliver to the Pledgee such additional conveyances,
assignments, agreements and instruments as the Pledgee may reasonably require or deem reasonably
necessary to carry into effect the purposes of this Agreement or to further assure and confirm unto
the Pledgee its rights, powers and remedies hereunder or thereunder.

               (b) Each Pledgor hereby constitutes and appoints the Pledgee its true and lawful
attorney-in-fact, irrevocably, with full authority in the place and stead of such Pledgor and in
the name of such Pledgor or otherwise, from time to time solely after the occurrence and during the
continuance of an Event of Default, in the Pledgee’s reasonable discretion, to act, require,
demand, receive and give acquittance for any and all monies and claims for monies due or to become
due to such Pledgor under or arising out of the Collateral, to endorse any checks or other
instruments or orders in connection therewith and to file any claims or take any action or
institute any proceedings and to execute any instrument which the Pledgee may deem necessary or
advisable to accomplish the purposes of this Agreement, which appointment as attorney is coupled
with an interest.

               • THE PLEDGEE AS COLLATERAL AGENT. The Pledgee will hold in accordance with this Agreement all
items of the Collateral at any time received under this Agreement. It is expressly understood,
acknowledged and agreed by each Secured Creditor that

 

 

Page 18

by accepting the benefits of this Agreement,
each such Secured Creditor acknowledges and agrees that the obligations of the Pledgee as holder of
the Collateral and interests therein and with respect to the disposition thereof, and otherwise
under this Agreement, are only those expressly set forth in this Agreement and in Section 12 of the
Credit Agreement. The Pledgee shall act hereunder on the terms and conditions set forth herein and
in Section 12 of the Credit Agreement.

               • TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise dispose of, grant any option with
respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest
therein, except as permitted by the Credit Agreement.

               • REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS. • Each Pledgor represents,
warrants and covenants as to itself and each of its Subsidiaries that:

          (i) it is the legal, beneficial and record owner of, and has good title to, all of its
Collateral consisting of one or more Securities, Partnership Interests and Limited Liability
Company Interests and that it has sufficient interest in all of its Collateral in which a
security interest is purported to be created hereunder for such security interest to attach
(subject, in each case, to no pledge, lien, mortgage, hypothecation, security interest,
charge, option, Adverse Claim or other encumbrance whatsoever, except the liens and security
interests created by this Agreement and nonconsensual Liens permitted by Section 10.01(i) of
the Credit Agreement);

          (ii) it has full power, authority and legal right to pledge all the Collateral pledged
by it pursuant to this Agreement;

          (iii) this Agreement has been duly authorized, executed and delivered by such Pledgor
and constitutes a legal, valid and binding obligation of such Pledgor enforceable against
such Pledgor in accordance with its terms, except to the extent that the enforceability
hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law);

          (iv) except to the extent already obtained or made, no consent of any other party
(including, without limitation, any stockholder, partner, member or creditor of such Pledgor
or any of its Subsidiaries) and no consent, license, permit, approval or authorization of,
exemption by, notice or report to, or registration, filing or declaration with, any
governmental authority is required to be obtained by such Pledgor in connection with (a) the
execution, delivery or performance of this Agreement by such Pledgor, (b) the validity or
enforceability of this Agreement against such Pledgor (except as set forth in clause (iii)
above), (c) the perfection or enforceability of the Pledgee’s security interest in such
Pledgor’s Collateral, or (d) except for compliance with or as may be required by applicable
securities laws, the exercise by the Pledgee of any of its rights or remedies provided
herein;

 

 

Page 19

          (v) neither the execution, delivery or performance by such Pledgor of this Agreement,
nor compliance by it with the terms and provisions hereof nor the consummation of the
transactions contemplated herein: (i) will contravene any provision of any applicable law,
statute, rule or regulation, or any applicable order, writ, injunction or decree of any
court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such
Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the
terms, covenants, conditions or provisions of, or constitute a default under, or result in
the creation or imposition of (or the obligation to create or impose) any Lien
(except pursuant to the Security Documents) upon any of the properties or assets of
such Pledgor or any of its Subsidiaries pursuant to the terms of any indenture, lease,
mortgage, deed of trust, credit agreement, loan agreement or any other material agreement,
contract or other instrument to which such Pledgor or any of its Subsidiaries is a party or
is otherwise bound, or by which it or any of its properties or assets is bound or to which
it may be subject; or (iii) will violate any provision of the certificate of incorporation,
by-laws, certificate of partnership, partnership agreement, certificate of formation or
limited liability company agreement (or equivalent organizational documents), as the case
may be, of such Pledgor or any of its Subsidiaries;

          (vi) all of such Pledgor’s Collateral (consisting of Securities, Limited Liability
Company Interests or Partnership Interests) has been duly and validly issued and acquired,
is fully paid and non-assessable and is subject to no options to purchase or similar rights,
except pursuant to a sale or other disposition transaction permitted by the Credit
Agreement;

          (vii) each of such Pledgor’s Pledged Notes constitutes, or when executed by the obligor
thereof will constitute, the legal, valid and binding obligation of such obligor,
enforceable in accordance with its terms, except to the extent that the enforceability
thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law);

          (viii) the pledge, collateral assignment and delivery to the Pledgee of such Pledgor’s
Collateral consisting of Certificated Securities and Pledged Notes pursuant to this
Agreement creates a valid and perfected first priority security interest in such
Certificated Securities and Pledged Notes, and the proceeds thereof, subject to no prior
Lien or encumbrance or to any agreement purporting to grant to any third party a Lien or
encumbrance on the property or assets of such Pledgor which would include the Securities and
the Pledgee is entitled to all the rights, priorities and benefits afforded by the UCC or
other relevant law as enacted in any relevant jurisdiction to perfect security interests in
respect of such Collateral; and

          (ix) to the extent required by Section 3.2 hereof, “control” (as defined in
Section 8-106 of the UCC) has been obtained by the Pledgee over all of such Pledgor’s
Collateral consisting of Securities (including, without limitation, Notes which are
Securities) with respect to which such “control” may be obtained pursuant to Section 8-106
of the UCC except to the extent that the obligation of the applicable Pledgor to

 

 

Page 20

provide the
Pledgee with “control” of such Collateral has not yet arisen under this Agreement.

               (b) Each Pledgor covenants and agrees that it will defend the Pledgee’s right, title and
security interest in and to such Pledgor’s Collateral and the proceeds thereof against the claims
and demands of all persons whomsoever; and each Pledgor covenants and agrees that it will have like
title to and right to pledge any other property at any time hereafter pledged to the Pledgee by
such Pledgor as Collateral hereunder and will likewise defend the right thereto and security
interest therein of the Pledgee and the other Secured Creditors.

               (c) Each Pledgor covenants and agrees that it will take no action which would violate any of
the terms of any Secured Debt Agreement.

               • LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING
UTILITY); JURISDICTION OF ORGANIZATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO;
ETC. The exact legal name of each Pledgor, the type of organization of such Pledgor, whether or
not such Pledgor is a Registered Organization, the jurisdiction of organization of such Pledgor,
the organizational identification number (if any) of such Pledgor, and whether or not such Pledgor
is a Transmitting Utility, is listed on Annex A hereto for such Pledgor. No Pledgor shall
change its legal name, its type of organization (including without limitation its status as (x) a
Registered Organization, in the case of each Registered Organization or (y) a Transmitting Utility
or a Person which is not a Transmitting Utility, as the case may be), its jurisdiction of
organization, or its organizational identification number (if any) from that listed on Annex
A hereto for such Pledgor or those that may have been established after the date of this
Agreement in accordance with the immediately succeeding sentence of this Section 17. No
Pledgor shall change its legal name, its type of organization, its status as a Registered
Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as
a Person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization,
or its organizational identification number (if any), except that any such changes shall be
permitted (so long as not in violation of the applicable requirements of the Secured Debt
Agreements and so long as same do not involve (x) a Registered Organization ceasing to constitute
same or (y) any Pledgor changing its jurisdiction of organization from the United States or a State
thereof to a jurisdiction of organization outside the United States or a State thereof) if (i) it
shall have given to the Pledgee not less than 15 days’ prior written notice of each change to the
information listed on Annex A (or such shorter notice as is acceptable to the Pledgee) (as
adjusted for any subsequent changes thereto previously made in accordance with this sentence),
together with a supplement to Annex A which shall correct all information contained therein
for the respective Pledgor, and (ii) in connection with such respective change or changes, it shall
have taken all action reasonably requested by the Pledgee to maintain the security interests of the
Pledgee in the Collateral intended to be granted hereby at all times fully perfected and in full
force and effect. In addition, to the extent that any Pledgor does not have an organizational
identification number on the date hereof and later obtains one, such Pledgor shall promptly
thereafter notify the Pledgee of such organizational identification number and shall take all
actions reasonably satisfactory to the Pledgee to the extent necessary to maintain the

 

 

Page 21

security
interest of the Pledgee in the Collateral intended to be granted hereby fully perfected and in full
force and effect.

               • PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC. Prior to the Termination Date, the obligations of each
Pledgor under this Agreement shall be absolute and unconditional and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise
affected by any circumstance or occurrence whatsoever, including, without limitation: (i) any
renewal, extension, amendment or modification of or addition or supplement to or deletion from any
Secured Debt Agreement or any other instrument or agreement referred to therein, or any assignment
or transfer of any thereof (except to the extent that any such modification expressly and directly
relates to such Pledgor’s obligations
under this Agreement); (ii) any waiver, consent, extension, indulgence or other action or
inaction under or in respect of any such agreement or instrument including, without limitation,
this Agreement; (iii) any furnishing of any additional security to the Pledgee or its assignee or
any acceptance thereof or any release of any security by the Pledgee or its assignee; (iv) any
limitation on any party’s liability or obligations under any such instrument or agreement or any
invalidity or unenforceability, in whole or in part, of any such instrument or agreement or any
term thereof; or (v) any bankruptcy, insolvency, reorganization, composition, adjustment,
dissolution, liquidation or other like proceeding relating to any Pledgor or any Subsidiary of any
Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or by any
court, in any such proceeding, whether or not such Pledgor shall have notice or knowledge of any of
the foregoing.

               • TERMINATION; RELEASE. • After the Termination Date, this Agreement and the security interest
created hereby shall automatically terminate (provided that all indemnities set forth herein
including, without limitation, in Section 11 hereof shall survive any such termination),
and the Pledgee, at the request and expense of such Pledgor, will execute and deliver to such
Pledgor a proper instrument or instruments (including UCC termination statements) acknowledging the
satisfaction and termination of this Agreement (including, without limitation, UCC termination
statements and instruments of satisfaction, discharge and/or reconveyance), and will duly release
from the security interest created hereby and, and will duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty) such of the Collateral as may
be in the possession of the Pledgee and as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement, together with any moneys at the time held by the Pledgee or
any of its sub-agents hereunder and, with respect to any Collateral consisting of an Uncertificated
Security, a Partnership Interest or a Limited Liability Company Interest (other than an
Uncertificated Security, Partnership Interest or Limited Liability Company Interest credited on the
books of a Clearing Corporation or Securities Intermediary), a termination of the agreement
relating thereto executed and delivered by the issuer of such Uncertificated Security pursuant to
Section 3.2(a)(ii) or by the respective partnership or limited liability company pursuant
to Section 3.2(a)(iv)(2).

               • In the event that any part of the Collateral is sold or otherwise disposed of (to a
Person other than a Credit Party in accordance with the Credit Agreement) or any other transaction
expressly permitted by the Credit Agreement requires a release of the relevant Collateral (x) at
any time prior to the time at which all Credit Document Obligations have been

 

 

Page 22

paid in full and all
Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection
with a sale or other disposition permitted by Section 10.02 of the Credit Agreement or is otherwise
released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12
of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other
Secured Debt Agreements, and in the case of clauses (x) and (y), the proceeds of such sale or
disposition (or from such release) are applied in accordance with the terms of the Credit Agreement
or such other Secured Debt Agreement, as the case may be, to the extent required to be so applied,
the Pledgee, at the request and expense of such Pledgor, will duly release from the security
interest created hereby (and will execute and deliver such documentation, including termination or
partial release statements and the like in connection therewith) and assign, transfer and deliver
to such Pledgor (without recourse and without any
representation or warranty) such of the Collateral as is then being (or has been) so sold or
released and as may be in the possession of the Pledgee (or, in the case of Collateral held by any
sub-agent designated pursuant to Section 4 hereto, such sub-agent) and has not theretofore
been released pursuant to this Agreement.

               • At any time that any Pledgor desires that Collateral be released as provided in the
foregoing Section 19(a) or (b), it shall deliver to the Pledgee (and the relevant
sub-agent, if any, designated pursuant to Section 4 hereof) a certificate signed by an
authorized officer of such Pledgor stating that the release of the respective Collateral is
permitted pursuant to Section 19(a) or (b) hereof.

               • The Pledgee shall have no liability whatsoever to any other Secured Creditor as the
result of any release of Collateral by it in accordance with (or which the Collateral Agent in good
faith believes to be in accordance with) this Section 19.

               • NOTICES, ETC. All notices and communications hereunder shall be in writing and sent or
delivered by mail, telecopy or overnight courier service and all such notices and communications
shall, when mailed, telecopied or sent by overnight courier, be effective when deposited in the
mails, delivered to the overnight courier or sent by telecopier, except that notices and
communications to the Pledgee or any Pledgor shall not be effective until received by the Pledgee
or such Pledgor, as the case may be. All such notices and other communications shall be in writing
and addressed as follows:

	 	•	 	if to any Pledgor, at:
	 
	 	 	 	c/o Town Sports International, LLC

5 Penn Plaza

4th Floor

New York, New York 10001

Attention: Dan Gallagher

Telephone No.: (212) 246-6700

Telecopier No.: (212) 246-8422
	 
	 	•	 	if to the Pledgee, at:

 

 

Page 23

	 		 	60 Wall Street

New York, New York 10005

Attention: Carin Keegan

Telephone No.: (212) 250-6083

Telecopier No.: (212) 797-5690

               • if to any Lender Creditor, at such address as such Lender Creditor shall have
specified in the Credit Agreement;

               • if to any Other Creditor, at such address as such Other Creditor shall have specified
in writing to the Borrower and the Pledgee;

               •
or at such other address or addressed to such other individual as shall have been furnished in
writing by any Person described above to the party required to give notice hereunder.

               • WAIVER; AMENDMENT. Except as provided in Sections 29 and 31 hereof, none of the terms and
conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever
except in accordance with the requirements specified in Section 10.2 of the Security Agreement.

               • MISCELLANEOUS. This Agreement shall and shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of and be enforceable by each of
the parties hereto and their respective successors and assigns, provided that no Pledgor
may assign any of its rights or obligations hereunder without the prior written consent of the
Pledgee (with the prior written consent of the Required Secured Creditors). All agreements,
statements, representations and warranties made by each Pledgor herein or in any certificate or
other instrument delivered by such Pledgor or on its behalf under this Agreement shall be
considered to have been relied upon by the Secured Creditors and shall survive the execution and
delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation
made by the Secured Creditors or on their behalf.

               • HEADINGS DESCRIPTIVE. The headings of the several Sections of this Agreement are inserted for
convenience only and shall not in any way affect the meaning or construction of any provision of
this Agreement.

               • GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.

               • THIS AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE
COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PLEDGOR HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH PLEDGOR HEREBY

 

 

Page 24

FURTHER IRREVOCABLY WAIVES ANY
CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR
CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER SUCH
PLEDGOR. EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES AS
PROVIDED IN SECTION 20 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER
IRREVOCABLY
WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR
UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.
NOTHING HEREIN, HOWEVER, SHALL AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR ANY
SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PLEDGOR IN ANY OTHER JURISDICTION.

               • EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH
COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

               • EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

               • PLEDGOR’S DUTIES. It is expressly agreed, anything herein contained to the contrary
notwithstanding, that each Pledgor shall remain liable to perform all of the obligations, if any,
assumed by it with respect to the Collateral and the Pledgee shall not have any obligations or
liabilities with respect to any Collateral by reason of or arising out of this Agreement, nor shall
the Pledgee be required or obligated in any manner to perform or fulfill any of the obligations of
any Pledgor under or with respect to any Collateral.

               • COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all of which shall together constitute one and the

 

 

Page 25

same instrument. A
set of counterparts executed by all the parties hereto shall be lodged with each Pledgor and the
Pledgee.

               • SEVERABILITY. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

               • RECOURSE. This Agreement is made with full recourse to each Pledgor and pursuant to and upon
all the representations, warranties, covenants and agreements on the part of such Pledgor contained
herein and in the other Secured Debt Agreements and otherwise in writing in connection herewith or
therewith.

               • ADDITIONAL PLEDGORS. It is understood and agreed that any Wholly-Owned Domestic Subsidiary of
Holdings that is required to execute a counterpart of this Agreement after the date hereof pursuant
to the Credit Agreement or any other Credit Document shall become a Pledgor hereunder by (x)
executing a counterpart hereof or a Joinder Agreement and delivering the same to the Pledgee, (y)
delivering supplements to Annexes A through G hereto as are necessary to cause such
annexes to be complete and accurate with respect to such additional Pledgor on such date and (z)
taking all actions as specified in this Agreement as would have been taken by such Pledgor had it
been an original party to this Agreement, in each case with all documents required above to be
delivered to the Pledgee and with all documents and actions required above to be taken to the
reasonable satisfaction of the Pledgee.

               • LIMITED OBLIGATIONS. It is the desire and intent of each Pledgor and the Secured Creditors
that this Agreement shall be enforced against each Pledgor to the fullest extent permissible under
the laws applied in each jurisdiction in which enforcement is sought. Notwithstanding anything to
the contrary contained herein, in furtherance of the foregoing, it is noted that the obligations of
each Pledgor constituting a Subsidiary Guarantor have been limited as provided in the Subsidiaries
Guaranty.

               • RELEASE OF PLEDGORS. If at any time all of the Equity Interests of any Pledgor owned by the
Borrower or any of its Subsidiaries are sold to a Person other than a Credit Party in a transaction
permitted pursuant to the Credit Agreement (and which does not violate the terms of any other
Secured Debt Agreement then in effect), then, such Pledgor shall be released as a Pledgor pursuant
to this Agreement without any further action hereunder (it being understood that the sale of all of
the Equity Interests in any Person that owns, directly or indirectly, all of the Equity Interests
in any Pledgor shall be deemed to be a sale of all of the Equity Interests in such Pledgor for
purposes of this Section), and the Pledgee is authorized and directed to execute and deliver such
instruments of release as are reasonably satisfactory to it. At any time that the Borrower desires
that a Pledgor be released from this Agreement as provided in this Section 31, the Borrower
shall deliver to the Pledgee a certificate signed by a principal executive officer of the Borrower
stating that the release of such Pledgor is permitted pursuant to this Section 31. If
requested by Pledgee (although the Pledgee shall have no obligation to make any such request), the
Borrower shall furnish legal opinions (from counsel reasonably acceptable

 

 

Page 26

to the Pledgee) to the
effect set forth in the immediately preceding sentence. The Pledgee shall have no liability
whatsoever to any other Secured Creditor as a result of the release of any Pledgor by it in
accordance with, or which it believes to be in accordance with, this Section 31.

* * * *

 

 

Page 27

               IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this Agreement to be executed by
their duly elected officers duly authorized as of the date first above written.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC,

   as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.,

   as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[LIST OF PLEDGORS TO BE UPDATED BY COMPANY]

	 	 	 

	 

	 	TSI 217 BROADWAY, LLC
	 

	 	TSI ALEXANDRIA, LLC
	 

	 	TSI ALLSTON, LLC
	 

	 	TSI ANDOVER, LLC
	 

	 	TSI ARDMORE, LLC
	 

	 	TSI ARTHRO-FITNESS SERVICES, LLC
	 

	 	TSI ASTORIA, LLC
	 

	 	TSI BATTERY PARK, LLC
	 

	 	TSI BETHESDA, LLC
	 

	 	TSI BAY RIDGE 86TH STREET, LLC
	 

	 	TSI BAYONNE, LLC
	 

	 	TSI BAYRIDGE, LLC
	 

	 	TSI BENSONHURST, LLC
	 

	 	TSI BOYLSTON, LLC
	 

	 	TSI BROADWAY, LLC
	 

	 	TSI BROOKLYN BELT, LLC
	 

	 	TSI BRUNSWICK, LLC
	 

	 	TSI BULFINCH, LLC
	 

	 	TSI BUTLER, LLC
	 

	 	TSI CARMEL, LLC
	 

	 	TSI CASH MANAGEMENT, LLC
	 

	 	TSI CENTRAL SQUARE, LLC
	 

	 	TSI CHERRY HILL, LLC
	 

	 	TSI CHEVY CHASE, LLC

 

 

Page 28

	 	 	 

	 

	 	TSI CLARENDON, LLC
	 

	 	TSI CLIFTON, LLC
	 

	 	TSI COBBLE HILL, LLC
	 

	 	TSI COLONIA, LLC
	 

	 	TSI COLUMBIA HEIGHTS, LLC
	 

	 	TSI COMMACK, LLC
	 

	 	TSI CONNECTICUT AVENUE, LLC
	 

	 	TSI COURT STREET, LLC
	 

	 	TSI CROTON, LLC
	 

	 	TSI DANBURY, LLC
	 

	 	TSI DOBBS FERRY, LLC
	 

	 	TSI DAVIS SQUARE, LLC
	 

	 	TSI DOWNTOWN CROSSING, LLC
	 

	 	TSI DUPONT CIRCLE, INC.
	 

	 	TSI DUPONT II, INC.
	 

	 	TSI EAST 23, LLC
	 

	 	TSI EAST 31, LLC
	 

	 	TSI EAST 34, LLC
	 

	 	TSI EAST 36, LLC
	 

	 	TSI EAST 41, LLC
	 

	 	TSI EAST 48, LLC
	 

	 	TSI EAST 51, LLC
	 

	 	TSI EAST 59, LLC
	 

	 	TSI EAST 76, LLC
	 

	 	TSI EAST 86, LLC
	 

	 	TSI EAST 91, LLC
	 

	 	TSI EAST BRUNSWICH, LLC
	 

	 	TSI EAST MEADOW, LLC
	 

	 	TSI ENGLEWOOD, LLC
	 

	 	TSI F STREET, LLC
	 

	 	TSI FAIRFAX, LLC
	 

	 	TSI FENWAY, LLC
	 

	 	TSI FIRST AVENUE, LLC
	 

	 	TSI FOREST HILLS, LLC
	 

	 	TSI FORT LEE, LLC
	 

	 	TSI FRAMINGHAM, LLC
	 

	 	TSI FRANKLIN (MA), LLC
	 

	 	TSI FRANKLIN PARK, LLC
	 

	 	TSI FREEHOLD, LLC
	 

	 	TSI GALLERY PLACE, LLC
	 

	 	TSI GARDEN CITY, LLC
	 

	 	TSI GARNERVILLE, LLC
	 

	 	TSI GEORGETOWN, LLC
	 

	 	TSI GERMANTOWN, LLC
	 

	 	TSI GLENDALE, LLC
	 

	 	TSI GLOVER, LLC

 

 

Page 29

	 	 	 

	 

	 	TSI GRAND CENTRAL, LLC
	 

	 	TSI GREAT NECK, LLC
	 

	 	TSI GREENWICH, LLC
	 

	 	TSI HARTSDALE, LLC
	 

	 	TSI HAWTHORNE, LLC
	 

	 	TSI HERALD, LLC
	 

	 	TSI HICKSVILLE, LLC
	 

	 	TSI HIGHPOINT, LLC
	 

	 	TSI HOBOKEN, LLC
	 

	 	TSI HOBOKEN NORTH, LLC
	 

	 	TSI HOLDINGS (CIP), LLC
	 

	 	TSI HOLDINGS (DC), LLC
	 

	 	TSI HOLDINGS (IP), LLC
	 

	 	TSI HOLDINGS (MA), LLC
	 

	 	TSI HOLDINGS (MD), LLC
	 

	 	TSI HOLDINGS (NJ), LLC
	 

	 	TSI HOLDINGS (PA), LLC
	 

	 	TSI HOLDINGS (VA), LLC
	 

	 	TSI HUNTINGTON, LLC
	 

	 	TSI INTERNATIONAL, INC.
	 

	 	TSI IRVING PLACE, LLC
	 

	 	TSI JAMAICA ESTATES, LLC
	 

	 	TSI JERSEY CITY, LLC
	 

	 	TSI K STREET, LLC
	 

	 	TSI LARCHMONT, LLC
	 

	 	TSI LEXINGTON (MA), LLC
	 

	 	TSI LINCOLN, LLC
	 

	 	TSI LIVINGSTON, LLC
	 

	 	TSI LONG BEACH, LLC
	 

	 	TSI LYNNFIELD, LLC
	 

	 	TSI M STREET, LLC
	 

	 	TSI MAHWAH, LLC
	 

	 	TSI MAMARONECK, LLC
	 

	 	TSI MARKET STREET, LLC
	 

	 	TSI MARLBORO, LLC
	 

	 	TSI MATAWAN, LLC
	 

	 	TSI MERCER STREET, LLC
	 

	 	TSI MIDWOOD, LLC
	 

	 	TSI MONTCLAIR, LLC
	 

	 	TSI MORRIS PARK, LLC
	 

	 	TSI MURRAY HILL, LLC
	 

	 	TSI NANUET, LLC
	 

	 	TSI NATICK, LLC
	 

	 	TSI NEW ROCHELLE, LLC
	 

	 	TSI NEWARK, LLC
	 

	 	TSI NEWBURY STREET, LLC

 

 

Page 30

	 	 	 

	 

	 	TSI NEWTON, LLC
	 

	 	TSI NO SWEAT, LLC
	 

	 	TSI NORTH BETHESDA, LLC
	 

	 	TSI NORWALK, LLC
	 

	 	TSI OCEANSIDE, LLC
	 

	 	TSI OLD BRIDGE, LLC
	 

	 	TSI PARSIPPANY, LLC
	 

	 	TSI PLAINSBORO, LLC
	 

	 	TSI PORT JEFFERSON, LLC
	 

	 	TSI PRINCETON, LLC
	 

	 	TSI PRINCETON NORTH, LLC
	 

	 	TSI RADNOR, LLC
	 

	 	TSI RAMSEY, LLC
	 

	 	TSI READE STREET, LLC
	 

	 	TSI REGO PARK, LLC
	 

	 	TSI RIDGEWOOD, LLC
	 

	 	TSI RODIN PLACE, LLC
	 

	 	TSI SCARSDALE, LLC
	 

	 	TSI SEAPORT, LLC
	 

	 	TSI SHERIDAN, LLC
	 

	 	TSI SILVER SPRING, LLC
	 

	 	TSI SMITHTOWN, LLC
	 

	 	TSI SOCIETY HILL, LLC
	 

	 	TSI SOHO, LLC
	 

	 	TSI SOMERS, LLC
	 

	 	TSI SOMERSET, LLC
	 

	 	TSI SOUTH BETHESDA, LLC
	 

	 	TSI SOUTH END, LLC
	 

	 	TSI SOUTH PARK SLOPE, LLC
	 

	 	TSI SOUTH STATION, LLC
	 

	 	TSI SPRINGFIELD, LLC
	 

	 	TSI STAMFORD DOWNTOWN, LLC
	 

	 	TSI STAMFORD POST, LLC
	 

	 	TSI STAMFORD RINKS, LLC
	 

	 	TSI STATEN ISLAND, LLC
	 

	 	TSI STERLING, LLC
	 

	 	TSI SYOSSET, LLC
	 

	 	TSI UNIVERSITY MANAGEMENT, LLC
	 

	 	TSI VARICK STREET, LLC
	 

	 	TSI WALL STREET, LLC
	 

	 	TSI WALTHAM, LLC
	 

	 	TSI WASHINGTON, INC.
	 

	 	TSI WATER STREET, LLC
	 

	 	TSI WATERTOWN, LLC
	 

	 	TSI WAYLAND, LLC
	 

	 	TSI WELLESLEY, LLC

 

 

Page 31

	 	 	 

	 

	 	TSI WELLINGTON CIRCLE, LLC
	 

	 	TSI WEST 14, LLC
	 

	 	TSI WEST 16, LLC
	 

	 	TSI WEST 23, LLC
	 

	 	TSI WEST 38, LLC
	 

	 	TSI WEST 41, LLC
	 

	 	TSI WEST 44, LLC
	 

	 	TSI WEST 48, LLC
	 

	 	TSI WEST 52, LLC
	 

	 	TSI WEST 73, LLC
	 

	 	TSI WEST 76, LLC
	 

	 	TSI WEST 80, LLC
	 

	 	TSI WEST 94, LLC
	 

	 	TSI WEST 115TH STREET, LLC
	 

	 	TSI WEST 125, LLC
	 

	 	TSI WEST 145TH STREET, LLC
	 

	 	TSI WEST CALDWELL, LLC
	 

	 	TSI WEST HARTFORD, LLC
	 

	 	TSI WEST NEWTON, LLC
	 

	 	TSI WEST NYACK, LLC
	 

	 	TSI WEST SPRINGFIELD, LLC
	 

	 	TSI WESTBOROUGH, LLC
	 

	 	TSI WESTPORT, LLC
	 

	 	TSI WESTWOOD, LLC
	 

	 	TSI WEYMOUTH, LLC
	 

	 	TSI WHITE PLAINS, LLC
	 

	 	TSI WHITE PLAINS CITY CENTER, LLC
	 

	 	TSI WHITESTONE, LLC
	 

	 	TSI WOBURN, LLC
	 

	 	TSI WOODMERE, LLC
	 

	 	    each as a Pledgor

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

4.

 

 

Page 32

Accepted and Agreed to:

DEUTSCHE BANK TRUST COMPANY AMERICAS,

     as Collateral Agent

	 	 	 	 
	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 
	By:  	 	 
	 	Name 	 
	 	Title:  	 	 
	 

 

 

ANNEX A

to

PLEDGE AGREEMENT

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION

(AND WHETHER A REGISTERED ORGANIZATION AND/OR

A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION

AND ORGANIZATIONAL IDENTIFICATION NUMBERS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	Town Sports International Holdings, Inc.
	 	Corporation	 	Yes	 	Delaware	 	 	3754592	 	 	No
	Town Sports International, LLC
	 	Limited Liability Company	 	Yes	 	New York	 	 	None	 	 	No
	TSI 217 Broadway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268991	 	 	No
	TSI Alexandria, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2901743	 	 	No
	TSI Alexandria West, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4330291	 	 	No
	TSI Allston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3899539	 	 	No
	TSI Andover, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269134	 	 	No
	TSI Ardmore, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3387908	 	 	No
	TSI Arthro-Fitness Services, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268994	 	 	No
	TSI Astoria, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268995	 	 	No
	TSI Battery Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268998	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Bay Ridge 86th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269108	 	 	No
	TSI Bayonne, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4536496	 	 	No
	TSI Bayridge, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269001	 	 	No
	TSI Bensonhurst, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4416091	 	 	No
	TSI Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3018449	 	 	No
	TSI Boylston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269330	 	 	No
	TSI Broadway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269002	 	 	No
	TSI Brooklyn Belt, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269004	 	 	No
	TSI Brunswick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4282150	 	 	No
	TSI Bulfinch, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3899536	 	 	No
	TSI Butler, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4239615	 	 	No
	TSI Carmel, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269111	 	 	No
	TSI Cash Management, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269009	 	 	No
	TSI Central Square, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3899543	 	 	No
	TSI Cherry Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3040637	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Chevy Chase, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269632	 	 	No
	TSI Clarendon, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3317876	 	 	No
	TSI Clifton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4195613	 	 	No
	TSI Cobble Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269013	 	 	No
	TSI Colonia, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928572	 	 	No
	TSI Columbia Heights, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269691	 	 	No
	TSI Commack, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269015	 	 	No
	TSI Connecticut Avenue, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269736	 	 	No
	TSI Court Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269017	 	 	No
	TSI Croton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269019	 	 	No
	TSI Danbury, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269758	 	 	No
	TSI Davis Square, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4160261	 	 	No
	TSI Dedham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4510871	 	 	No
	TSI Deer Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4364946	 	 	No
	TSI Dobbs Ferry, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269114	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Downtown Crossing, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269741	 	 	No
	TSI Dupont Circle, Inc.
	 	Corporation	 	Yes	 	Delaware	 	 	2220114	 	 	No
	TSI Dupont II, Inc.
	 	Corporation	 	Yes	 	Delaware	 	 	2439444	 	 	No
	TSI East 23, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269027	 	 	No
	TSI East 31, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269030	 	 	No
	TSI East 34, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269032	 	 	No
	TSI East 36, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269035	 	 	No
	TSI East 41, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269039	 	 	No
	TSI East 48, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269115	 	 	No
	TSI East 51, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269041	 	 	No
	TSI East 59, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269047	 	 	No
	TSI East 76, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269049	 	 	No
	TSI East 86, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269119	 	 	No
	TSI East 91, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269051	 	 	No
	TSI East Brunswick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4343405	 	 	No
	TSI East Meadow, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269024	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Englewood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4099792	 	 	 
	TSI F Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269753	 	 	No
	TSI Fairfax, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2951887	 	 	No
	TSI Fenway, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3899546	 	 	No
	TSI First Avenue, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269053	 	 	No
	TSI Forest Hills, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269055	 	 	No
	TSI Fort Lee, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2900457	 	 	No
	TSI Framingham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269136	 	 	No
	TSI Franklin (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269138	 	 	No
	TSI Franklin Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928574	 	 	No
	TSI Freehold, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3057259	 	 	No
	TSI Gallery Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269770	 	 	No
	TSI Garden City, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269057	 	 	No
	TSI Garnerville, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4376082	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Georgetown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269763	 	 	No
	TSI Germantown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2916539	 	 	No
	TSI Glendale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269128	 	 	No
	TSI Glover, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269240	 	 	No
	TSI Grand Central, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269060	 	 	No
	TSI Great Neck, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269061	 	 	No
	TSI Greenwich, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269761	 	 	No
	TSI Hartsdale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269062	 	 	No
	TSI Hawthorne, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269066	 	 	No
	TSI Herald, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269068	 	 	No
	TSI Hicksville, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4257117	 	 	No
	TSI Highpoint, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3140945	 	 	No
	TSI Hoboken, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3057253	 	 	No
	TSI Hoboken North, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3773429	 	 	No
	TSI Holdings (CIP), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269773	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Holdings (DC), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268598	 	 	No
	TSI Holdings (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268036	 	 	No
	TSI Holdings (MD), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268623	 	 	No
	TSI Holdings (NJ), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3744923	 	 	No
	TSI Holdings (PA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268627	 	 	No
	TSI Holdings (VA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268618	 	 	No
	TSI Huntington, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268974	 	 	No
	TSI International, Inc.
	 	Corporation	 	Yes	 	Delaware	 	 	2141083	 	 	No
	TSI Irving Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268978	 	 	No
	TSI Jamaica Estates, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4402223	 	 	No
	TSI Jersey City, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3525625	 	 	No
	TSI K Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269781	 	 	No
	TSI Larchmont, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268983	 	 	No
	TSI Lexington (MA), LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269142	 	 	No
	TSI Lincoln, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268985	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Livingston, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3305800	 	 	No
	TSI Long Beach, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268987	 	 	No
	TSI Lynnfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269143	 	 	No
	TSI M Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269776	 	 	No
	TSI Mahwah, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2905457	 	 	No
	TSI Mamaroneck, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268989	 	 	No
	TSI Market Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3123380	 	 	No
	TSI Marlboro, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3057264	 	 	No
	TSI Matawan, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3057208	 	 	No
	TSI Mercer Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268990	 	 	No
	TSI Midwood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4268993	 	 	No
	TSI Montclair, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3235308	 	 	No
	TSI Morris Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269130	 	 	No
	TSI Murray Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269000	 	 	No
	TSI Nanuet, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269005	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Natick, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269786	 	 	No
	TSI New Rochelle, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4290057	 	 	No
	TSI Newark, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3548397	 	 	No
	TSI Newbury Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269793	 	 	No
	TSI Newton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4188428	 	 	No
	TSI No Sweat, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4071998	 	 	No
	TSI North Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3018427	 	 	No
	TSI Norwalk, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269791	 	 	No
	TSI Oceanside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269012	 	 	No
	TSI Old Bridge, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3057213	 	 	No
	TSI Parsippany, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928568	 	 	No
	TSI Plainsboro, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928573	 	 	No
	TSI Port Jefferson, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269018	 	 	No
	TSI Princeton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2750867	 	 	No
	TSI Princeton North, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3946066	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Providence Downtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4411647	 	 	No
	TSI Providence Eastside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4411648	 	 	No
	TSI Radnor, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4034032	 	 	No
	TSI Ramsey, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3138497	 	 	No
	TSI Reade Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269021	 	 	No
	TSI Rego Park, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269031	 	 	No
	TSI Ridgewood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3386883	 	 	No
	TSI Rodin Place, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3026591	 	 	No
	TSI Scarsdale, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269037	 	 	No
	TSI Seaport, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269040	 	 	No
	TSI Sheridan, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269043	 	 	No
	TSI Silver Spring, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3296686	 	 	No
	TSI Smithtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269048	 	 	No
	TSI Society Hill, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3026597	 	 	No
	TSI Soho, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269052	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Somers, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269058	 	 	No
	TSI Somerset, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928575	 	 	No
	TSI South Bethesda, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3854033	 	 	No
	TSI South End, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269795	 	 	No
	TSI South Park Slope, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269064	 	 	No
	TSI South Station, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269797	 	 	No
	TSI Springfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928570	 	 	No
	TSI Stamford Downtown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269799	 	 	No
	TSI Stamford Post, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269803	 	 	No
	TSI Stamford Rinks, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269807	 	 	No
	TSI Staten Island, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269070	 	 	No
	TSI Sterling, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2978316	 	 	No
	TSI Sunnyside, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4324681	 	 	No
	TSI Syosset, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269074	 	 	No
	TSI University Management, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269811	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Varick Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269076	 	 	No
	TSI Wall Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269078	 	 	No
	TSI Waltham, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3584187	 	 	No
	TSI Washington, Inc.
	 	Corporation	 	Yes	 	Delaware	 	 	2195425	 	 	No
	TSI Water Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269087	 	 	No
	TSI Watertown, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269336	 	 	No
	TSI Wayland, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4554568	 	 	No
	TSI Wellesley, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269148	 	 	No
	TSI Wellington Circle, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4160262	 	 	No
	TSI West 14, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269093	 	 	No
	TSI West 16, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269096	 	 	No
	TSI West 23, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269098	 	 	No
	TSI West 38, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269038	 	 	No
	TSI West 41, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269045	 	 	No
	TSI West 44, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269054	 	 	No
	TSI West 48, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269067	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI West 52, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269073	 	 	No
	TSI West 73, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269077	 	 	No
	TSI West 76, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269080	 	 	No
	TSI West 80, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269085	 	 	No
	TSI West 94, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269086	 	 	No
	TSI West 115th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269131	 	 	No
	TSI West 125, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269090	 	 	No
	TSI West 145th Street, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4239620	 	 	No
	TSI West Caldwell, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	2928566	 	 	No
	TSI West Hartford, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4411640	 	 	No
	TSI West Newton, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269593	 	 	No
	TSI West Nyack, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269089	 	 	No
	TSI West Springfield, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3131927	 	 	No
	TSI Westborough, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4311117	 	 	No
	TSI Westport, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269809	 	 	No

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Pledgor’s	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 
	 	 	(or, if the	 	 	 	 	 	Identification	 	 	 
	 	 	Pledgor is an	 	Registered	 	 	 	Number	 	 	Transmitting
	Exact Legal Name of	 	Individual, so	 	Organization?	 	Jurisdiction of	 	(or, if none, so	 	 	Utility?
	Each Pledgor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	 	(Yes/No)
	TSI Westwood, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	3478988	 	 	No
	TSI Weymouth, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269814	 	 	No
	TSI White Plains City Center, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269095	 	 	No
	TSI White Plains, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269100	 	 	No
	TSI Whitestone, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269102	 	 	No
	TSI Woburn, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4411649	 	 	No
	TSI Woodmere, LLC
	 	Limited Liability Company	 	Yes	 	Delaware	 	 	4269106	 	 	No

 

 

ANNEX B

to

PLEDGE AGREEMENT

SCHEDULE OF SUBSIDIARIES

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	Town Sports International, LLC

	 	Town Sports International Holdings, Inc.
	 	New York
	TSI 217 Broadway, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Alexandria West, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Allston, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Arthro-Fitness Services, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Astoria, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Battery Park, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Bay Ridge 86th Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Bayridge, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Bensonhurst, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Boylston, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Broadway, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Brooklyn Belt, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Brunswick, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Bulfinch, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Carmel, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Cash Management, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Central Square, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Cobble Hill, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Commack, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Court Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Croton, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Danbury, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Deer Park, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Dobbs Ferry, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Downtown Crossing, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 23, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 31, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 34, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 36, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 41, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 48, LLC

	 	Town Sports International, LLC
	 	Delaware

 

 

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	TSI East 51, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 59, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 76, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 86, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East 91, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East Brunswick, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI East Meadow, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Fenway, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI First Avenue, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Forest Hills, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Garden City, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Garnerville, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Glendale, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Grand Central, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Great Neck, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Greenwich, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Hartsdale, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Hawthorne, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Herald, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Hicksville, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (CIP), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (DC), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (MA), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (MD), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (NJ), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (PA), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Holdings (VA), LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Huntington, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Insurance, Inc.

	 	Town Sports International, LLC
	 	New York
	TSI International, Inc.

	 	Town Sports International, LLC
	 	Delaware
	TSI Irving Place, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Jamaica Estates, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Larchmont, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Lincoln, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Long Beach, LLC

	 	Town Sports International, LLC
	 	Delaware

 

 

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	TSI Mamaroneck, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Mercer Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Midwood, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Morris Park, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Murray Hill, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Nanuet, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Natick, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI New Rochelle, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Newbury Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Norwalk, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Oceanside, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Port Jefferson, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Providence Downtown, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Providence Eastside, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Reade Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Rego Park, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Scarsdale, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Seaport, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Sheridan, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Smithtown, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Soho, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Somers, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI South Park Slope, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Stamford Downtown, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Stamford Post, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Stamford Rinks, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Staten Island, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Sunnyside, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Syosset, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Varick Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Wall Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Water Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 14, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 16, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 23, LLC

	 	Town Sports International, LLC
	 	Delaware

 

 

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	TSI West 38, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 41, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 44, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 48, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 52, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 73, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 76, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 80, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 94, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 115th Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 125, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West 145th Street, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West Hartford, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West Newton, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI West Nyack, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Westborough, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Westport, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Weymouth, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI White Plains City Center, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI White Plains, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Whitestone, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Woodmere, LLC

	 	Town Sports International, LLC
	 	Delaware
	TSI Princeton, LLC

	 	TSI Brunswick, LLC
	 	Delaware
	TSI Chevy Chase, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Columbia Heights, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Connecticut Avenue, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Dupont Circle, Inc.

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Dupont II, Inc.

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI F Street, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Gallery Place, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Georgetown, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Glover, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI K Street, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI M Street, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI University Management, LLC

	 	TSI Holdings (DC), LLC
	 	Delaware

 

 

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	TSI Washington, Inc.

	 	TSI Holdings (DC), LLC
	 	Delaware
	TSI Andover, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Davis Square, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Dedham, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Framingham, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Franklin (MA), LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Lexington (MA), LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Lynnfield, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Newton, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI South End, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI South Station, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Waltham, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Watertown, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Wayland, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Wellesley, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Wellington Circle, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Woburn, LLC

	 	TSI Holdings (MA), LLC
	 	Delaware
	TSI Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	Delaware
	TSI Germantown, LLC

	 	TSI Holdings (MD), LLC
	 	Delaware
	TSI North Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	Delaware
	TSI Silver Spring, LLC

	 	TSI Holdings (MD), LLC
	 	Delaware
	TSI South Bethesda, LLC

	 	TSI Holdings (MD), LLC
	 	Delaware
	TSI Bayonne, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Butler, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Cherry Hill, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Clifton, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Colonia, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Englewood, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Fort Lee, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Franklin Park, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Freehold, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Hoboken, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Hoboken North, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Jersey City, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Livingston, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware

 

 

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Entity	 	Ownership	 	Organization
	TSI Mahwah, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Marlboro, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Matawan, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Montclair, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Newark, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI No Sweat, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Old Bridge, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Parsippany, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Plainsboro, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Princeton North, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Ramsey, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Ridgewood, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Somerset, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Springfield, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI West Caldwell, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Westwood, LLC

	 	TSI Holdings (NJ), LLC
	 	Delaware
	TSI Ardmore, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Highpoint, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Market Street, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Radnor, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Rodin Place, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Society Hill, LLC

	 	TSI Holdings (PA), LLC
	 	Delaware
	TSI Alexandria, LLC

	 	TSI Holdings (VA), LLC
	 	Delaware
	TSI Clarendon, LLC

	 	TSI Holdings (VA), LLC
	 	Delaware
	TSI Fairfax, LLC

	 	TSI Holdings (VA), LLC
	 	Delaware
	TSI Sterling, LLC

	 	TSI Holdings (VA), LLC
	 	Delaware
	TSI West Springfield, LLC

	 	TSI Holdings (VA), LLC
	 	Delaware
	Town Sports AG

	 	TSI International, Inc.
	 	Switzerland

 

 

ANNEX C

to

PLEDGE AGREEMENT

SCHEDULE OF STOCK

	1.	 	Town Sports International, LLC

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Number of	 	 	Certificate	 	 	Percentage	 	 	Sub-clause of Section 3.2(a)	 
	Name of Issuing Corporation	 	Shares	 	Shares	 	 	No.	 	 	Owned	 	 	of Pledge Agreement	 
	TSI Insurance, Inc.
	 	Common	 	 	100,000	 	 	 	2	 	 	 	100	%	 	 	3.2	(a)(i)
	TSI International, Inc.
	 	Common	 	 	100	 	 	 	2	 	 	 	100	%	 	 	3.2	(a)(i)

	2.	 	TSI Holdings (DC), LLC

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Number of	 	 	Certificate	 	 	Percentage	 	 	Sub-clause of Section 3.2(a)	 
	Name of Issuing Corporation	 	Shares	 	Shares	 	 	No.	 	 	Owned	 	 	of Pledge Agreement	 
	TSI Dupont Circle, Inc.
	 	Common	 	 	100	 	 	 	3	 	 	 	100	%	 	 	3.2	(a)(i)
	TSI Dupont II, Inc.
	 	Common	 	 	100	 	 	 	2	 	 	 	100	%	 	 	3.2	(a)(i)
	TSI Washington, Inc.
	 	Common	 	 	100	 	 	 	3	 	 	 	100	%	 	 	3.2	(a)(i)

	3.	 	TSI International, Inc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Number of	 	 	Certificate	 	 	Percentage	 	 	Sub-clause of Section 3.2(a)	 
	Name of Issuing Corporation	 	Shares	 	Shares	 	 	No.	 	 	Owned	 	 	of Pledge Agreement	 
	Town Sports AG
	 	Common	 	 	1298	 	 	 	7	 	 	 	65	%	 	 	3.2	(a)(i)

 

 

ANNEX D

to

PLEDGE AGREEMENT

SCHEDULE OF NOTES

None.

 

 

ANNEX E

to

PLEDGE AGREEMENT

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

	1.	 	Town Sports International Holdings, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited Liability	 	 	 	Percentage	 	 	Section 3.2(a) of	 
	Company	 	Type of Interest	 	Owned	 	 	Pledge Agreement	 
	Town Sports International, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

	2.	 	Town Sports International, LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI Alexandria West, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Arthro-Fitness Services, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Astoria, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Battery Park, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Bay Ridge 86th Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Bayridge, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Bensonhurst, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Broadway, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI 217 Broadway, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Brooklyn Belt, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Carmel, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Cash Management, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI Cobble Hill, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Commack, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Court Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Croton, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Deer Park, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Dobbs Ferry, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East Brunswick, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East Meadow, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 23, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 31, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 34, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 36, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 41, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 48, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 51, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 59, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 76, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 86, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI East 91, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI First Avenue, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Forest Hills, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Garden City, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Garnerville, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Grand Central, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Great Neck, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Glendale, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Hartsdale, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Hawthorne, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Herald, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Hicksville, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Huntington, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Irving Place, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Jamaica Estates, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Larchmont, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Lincoln, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Long Beach, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Mamaroneck, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI Mercer Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Midwood, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Morris Park, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Murray Hill, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Nanuet, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI New Rochelle, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Oceanside, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Port Jefferson, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Providence Downtown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Providence Eastside, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Reade Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Rego Park, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Scarsdale, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Seaport, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Sheridan, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Smithtown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Soho, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Somers, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI South Park Slope, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI Staten Island, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Sunnyside, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Syosset, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Varick Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Wall Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Water Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 14, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 16, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 23, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 38, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 41, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 44, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 48, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 52, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 73, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 76, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 80, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 94, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI West 115th Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 125, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West 145th Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West Nyack, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Westborough, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI White Plains, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI White Plains City Center, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Whitestone, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Woodmere, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Allston, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Boylston, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Bulfinch, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Central Square, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Downtown Crossing, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Fenway, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Natick, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Newbury Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West Newton, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Weymouth, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Name of Issuing Limited	 	 	 	Percentage	 	 	of Pledge	 
	Liability Company	 	Type of Interest	 	Owned	 	 	Agreement	 
	TSI Danbury, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Greenwich, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Norwalk, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Stamford Downtown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Stamford Post, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Stamford Rinks, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West Hartford, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Westport, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (DC), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (MA), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (MD), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (NJ), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Brunswick, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (CIP), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (PA), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Holdings (VA), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

3.    TSI
Holdings (MD), LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited Liability	 	 	 	Percentage	 	 	Section 3.2(a) of	 
	Company	 	Type of Interest	 	Owned	 	 	Pledge Agreement	 
	TSI Bethesda, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Germantown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI North Bethesda, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Silver Spring, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI South Bethesda, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	 
	4.   TSI Holdings (VA), LLC
	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited Liability	 	 	 	Percentage	 	 	Section 3.2(a) of	 
	Company	 	Type of Interest	 	Owned	 	 	Pledge Agreement	 
	TSI Alexandria, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Clarendon, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Fairfax, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West Springfield, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Sterling, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	 
	5.   TSI Holdings (PA), LLC
	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited Liability	 	 	 	Percentage	 	 	Section 3.2(a) of	 
	Company	 	Type of Interest	 	Owned	 	 	Pledge Agreement	 
	TSI Ardmore, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Highpoint, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Market Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Radnor, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Rodin Place, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Society Hill, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	 
	6.   TSI Holdings (NJ), LLC
	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited Liability	 	 	 	Percentage	 	 	Section 3.2(a) of	 
	Company	 	Type of Interest	 	Owned	 	 	Pledge Agreement	 
	TSI Bayonne, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Butler, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Cherry Hill, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Clifton, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Colonia, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Englewood, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Fort Lee, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Franklin Park, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Freehold, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Hoboken, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Hoboken North, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Jersey City, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited	 	 	 	 	 	 	 	Section 3.2(a) of	 
	Liability Company	 	Type of Interest	 	Percentage Owned	 	 	Pledge Agreement	 
	TSI Livingston, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Mahwah, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Marlboro, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Matawan, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Montclair, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Newark, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI No Sweat, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Old Bridge, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Parsippany, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Plainsboro, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Princeton North LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Ramsey, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Ridgewood, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Somerset, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Springfield, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI West Caldwell, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Westwood, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

	7.	 	TSI Holdings (MA), LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited	 	 	 	 	 	 	 	Section 3.2(a) of	 
	Liability Company	 	Type of Interest	 	Percentage Owned	 	 	Pledge Agreement	 
	TSI Andover, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Davis Square, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Dedham, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Framingham, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Franklin (MA), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Lexington (MA), LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Lynnfield, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Newton, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI South End, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI South Station, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Waltham, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Watertown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Wayland, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Wellesley, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Wellington Circle, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Woburn, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

	8.	 	TSI Brunswick, LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited	 	 	 	 	 	 	 	Section 3.2(a) of	 
	Liability Company	 	Type of Interest	 	Percentage Owned	 	 	Pledge Agreement	 
	TSI Princeton, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

	9.	 	TSI Holdings (DC), LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of Issuing Limited	 	 	 	 	 	 	 	Section 3.2(a) of	 
	Liability Company	 	Type of Interest	 	Percentage Owned	 	 	Pledge Agreement	 
	TSI Chevy Chase, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Columbia Heights, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Connecticut Avenue, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI F Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Gallery Place, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Georgetown, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI Glover, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI K Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI M Street, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)
	TSI University Management, LLC
	 	Limited Liability Company	 	 	100	%	 	3.2(a)(ii)

 

 

ANNEX F

to

PLEDGE AGREEMENT

SCHEDULE OF PARTNERSHIP INTERESTS

	1.	 	TSI Dupont, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	 	 	 	 	Percentage	 	 	of Pledge	 
	Name of Issuing Partnership	 	Type of Interest	 	Owned17	 	 	Agreement	 
	Kalorama Sports Management Associates
	 	Partnership Interest	 	 	45	%	 	3.2(a)(ii)

	2.	 	TSI Washington, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	 	 	 	 	Percentage	 	 	of Pledge	 
	Name of Issuing Partnership	 	Type of Interest	 	Owned	 	 	Agreement	 
	Capitol Hill Squash Club Associates
	 	Limited Partnership Interest	 	 	20	%	 	3.2(a)(ii)

 

			
	17	 	Percentage is reflective of the estimated profit
sharing percentage related to these Limited Partnership Investments.

 

 

ANNEX G

to

PLEDGE AGREEMENT

SCHEDULE OF CHIEF EXECUTIVE OFFICES

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	Town Sports International
Holdings, Inc.

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	Town Sports International, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI 217 Broadway, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Alexandria, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Alexandria West, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Allston, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Andover, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Ardmore, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Arthro-Fitness Services, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Astoria, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Battery Park, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bay Ridge 86th Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bayonne, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bayridge, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bensonhurst, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bethesda, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Boylston, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Broadway, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Brooklyn Belt, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Brunswick, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Bulfinch, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Butler, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Carmel, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Cash Management, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Central Square, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Cherry Hill, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Chevy Chase, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Clarendon, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Clifton, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Cobble Hill, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Colonia, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Columbia Heights, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Commack, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Connecticut Avenue, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Court Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Croton, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Danbury, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Davis Square, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Dedham, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Deer Park, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Dobbs Ferry, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Downtown Crossing, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Dupont Circle, Inc.

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Dupont II, Inc.

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East Brunswick, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East Meadow, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 23, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 31, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 34, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 36, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 41, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 48, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI East 51, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 59, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 76, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 86, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI East 91, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Englewood, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI F Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Fairfax, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Fenway, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI First Avenue, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Forest Hills, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Fort Lee, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Framingham, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Franklin (MA), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Franklin Park, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Freehold, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Gallery Place, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Garden City, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Garnersville, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Georgetown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Germantown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Glendale, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Glover, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Grand Central, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Great Neck, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Greenwich, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Hartsdale, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Hawthorne, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Herald, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Hicksville, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Highpoint, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Hoboken, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Hoboken North, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (CIP), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Holdings (DC), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (MA), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (MD), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (NJ), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (PA), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Holdings (VA), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Huntington, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI International, Inc.

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Irving Place, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Jamaica Estates, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Jersey City, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI K Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Larchmont, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Lexington (MA), LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Lincoln, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Livingston, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Long Beach, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Lynnfield, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI M Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Mahwah, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Mamaroneck, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Market Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Marlboro, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Matawan, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Mercer Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Midwood, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Montclair, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Morris Park, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Murray Hill, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Nanuet, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Natick, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI New Rochelle, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Newark, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Newbury Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Newton, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI No Sweat, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI North Bethesda, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Norwalk, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Oceanside, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Old Bridge, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Parsippany, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Plainsboro, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Port Jefferson, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Princeton, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Princeton North, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Providence Downtown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Providence Eastside, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Radnor, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Ramsey, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Reade Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Rego Park, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Ridgewood, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Rodin Place, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Scarsdale, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Seaport, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Sheridan, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Silver Spring, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Smithtown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Society Hill, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Soho, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Somers, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Somerset, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI South Bethesda, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI South End, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI South Park Slope, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI South Station, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Springfield, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Stamford Downtown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Stamford Post, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Stamford Rinks, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Staten Island, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Sterling, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Sunnyside, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Syosset, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI University Management, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Varick Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Wall Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Waltham, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Washington, Inc.

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Water Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Watertown, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Wayland, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Wellesley, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Wellington Circle, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West Caldwell, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West Hartford, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West Newton, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West Nyack, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI West Springfield, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 14, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 16, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 23, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 38, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 41, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 44, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 48, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 52, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 73, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 76, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 80, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 94, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 115th Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 125, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI West 145th Street, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Westborough, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Westport, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

	 	 	 
	Name of Pledgor	 	Address(es) of Chief Executive Office
	TSI Westwood, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Weymouth, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI White Plains City Center, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI White Plains, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Whitestone, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Woburn, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001
	TSI Woodmere, LLC

	 	5 Penn Plaza, 4th Floor
New York, NY 10001

 

 

ANNEX H

to

PLEDGE AGREEMENT

Form of Agreement Regarding Uncertificated Securities, Limited Liability

Company Interests and Partnership Interests

     AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this
“Agreement”), dated as of                     , among the undersigned pledgor (the
“Pledgor”), Deutsche Bank Trust Company Americas, not in its individual capacity but solely
as Collateral Agent (the “Pledgee”), and                     , as the issuer of the [Uncertificated
Securities] [Limited Liability Company Interests] [Partnership Interests] (defined below) (the
“Issuer”).

W
I T N E S S E
T H :

     WHEREAS, the Pledgor, certain of its affiliates and the Pledgee have entered into a Pledge
Agreement, dated as of May [___], 2011 (as amended, modified, restated and/or supplemented from time
to time, the “Pledge Agreement”), under which, among other things, in order to secure the
payment of the Obligations (as defined in the Pledge Agreement), the Pledgor has or will pledge to
the Pledgee for the benefit of the Secured Creditors (as defined in the Pledge Agreement), and
grant a security interest in favor of the Pledgee for the benefit of the Secured Creditors in, all
of the right, title and interest of the Pledgor in and to any and [all “uncertificated securities”
(as defined in Section 8-102(a)(18) of the Uniform Commercial Code, as adopted in the State of New
York) (“Uncertificated Securities”)] [Partnership Interests (as defined in the Pledge
Agreement)] [Limited Liability Company Interests (as defined in the Pledge Agreement)] issued from
time to time by the Issuer, whether now existing or hereafter from time to time acquired by the
Pledgor (with all of such [Uncertificated Securities] [Partnership Interests] [Limited Liability
Company Interests] being herein collectively called the “Issuer Pledged Interests”); and

     WHEREAS, the Pledgor desires the Issuer to enter into this Agreement in order to protect and
perfect the security interest of the Pledgee under the Pledge Agreement in the Issuer Pledged
Interests, to vest in the Pledgee control of the Issuer Pledged Interests and to provide for the
rights of the parties under this Agreement;

     NOW THEREFORE, in consideration of the premises and the mutual promises and agreements
contained herein, and for other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

     1. The Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby
agrees, to comply with any and all instructions and orders originated by the Pledgee (and its
permitted successors and assigns) regarding any and all of the Issuer Pledged
Interests without the further consent by the registered owner (including the Pledgor), and,
after receiving a notice from the Pledgee stating that an “Event of Default” has occurred and is

 

 

Page 2

continuing, not to comply with any instructions or orders regarding any or all of the Issuer
Pledged Interests originated by any person or entity other than the Pledgee (and its permitted
successors and assigns) or a court of competent jurisdiction.

     2. The Issuer hereby certifies that (i) no notice of any security interest, lien or other
encumbrance or claim affecting the Issuer Pledged Interests (other than the security interest of
the Pledgee) has been received by it, and (ii) the security interest of the Pledgee in the Issuer
Pledged Interests has been registered in the books and records of the Issuer.

     3. The Issuer hereby represents and warrants that (i) the pledge by the Pledgor of, and the
granting by the Pledgor of a security interest in, the Issuer Pledged Interests to the Pledgee, for
the benefit of the Secured Creditors, does not violate the charter, by-laws, partnership agreement,
membership agreement or any other agreement governing the Issuer or the Issuer Pledged Interests,
and (ii) the Issuer Pledged Interests fully paid and nonassessable.

     4. All notices, statements of accounts, reports, prospectuses, financial statements and other
communications to be sent to the Pledgor by the Issuer in respect of the Issuer will also be sent
to the Pledgee at the following address:

60 Wall Street

New York, New York 10005

Attention: Carin Keegan

Telephone No.: (212) 250-6083

Telecopier No.: (212) 797-5690

     5. Until the Pledgee shall have delivered written notice to the Issuer that all of the
Obligations have been paid in full (other than contingent indemnification obligations which are not
then due and payable) and this Agreement is terminated, the Issuer will, upon receiving notice from
the Pledgee stating that an “Event of Default” has occurred and is continuing, send any and all
redemptions, distributions, interest or other payments in respect of the Issuer Pledged Interests
from the Issuer for the account of the Pledgor only by wire transfers to the following address:

	 	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	ABA No.:	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 

	 	Account in the Name of:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	Account No.:	 	 	 	 	 
	 	 	 	 	 	 	 

     6. Except as expressly provided otherwise in Sections 4 and 5 above, all notices,
instructions, orders and communications hereunder shall be sent or delivered by mail, telegraph,
telex, telecopy, cable or overnight courier service and all such notices and communications shall,
when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight courier, be effective
when deposited in the mails, delivered to the telegraph company, cable company or
overnight courier, as the case may be, or sent by telex or telecopier, except that notices and
communications to the Pledgee, the Pledgor or the Issuer shall not be effective until received by

 

 

Page 3

the Pledgee, the Pledgor or the Issuer, as the case may be. All notices and other communications
shall be in writing and addressed as follows:

	 	 	 	 	 

	(a)

	 	if to the Pledgor, at:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attention:                                                             	 	 
	 

	 	Telephone No.:	 	 
	 

	 	Telecopier No.:	 	 
	 
	 	 	 	 
	(b)

	 	if to the Pledgee, at:	 	 
	 

	 	

60 Wall Street	 	 
	 

	 	New York, New York 10005	 	 
	 

	 	Attention: Carin Keegan	 	 
	 

	 	Telephone No.: (212) 250-6083	 	 
	 

	 	Telecopier No.: (212) 797-5690	 	 
	 
	 	 	 	 
	(c)

	 	if to the Issuer, at:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

17. or at such other address as shall have been furnished in writing by any Person described above
to the party required to give notice hereunder. As used in this Section 6, “Business Day”
means any day other than a Saturday, Sunday, or other day in which banks in New York are authorized
to remain closed.

     7. This Agreement shall be binding upon the successors and assigns of the Pledgor and the
Issuer and shall inure to the benefit of and be enforceable by the Pledgee and its successors and
assigns. This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which shall constitute one instrument. In the event that any provision of
this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be
severable from the other provisions of this Agreement which shall remain binding on all parties
hereto. None of the terms and conditions of this Agreement may be changed, waived, modified or
varied in the manner whatsoever except in writing signed by the Pledgee, the Issuer and the
Pledgor.

     8. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to its principles of conflict of laws.

 

 

Page 4

     IN WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this Agreement to be
executed by their duly elected officers duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 	 

	 	 	[                                        ],	 	 
	 	 	as Pledgor	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

     not in its individual capacity but solely as

     Collateral Agent and Pledgee	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[                                        ],	 	 
	 	 	as Issuer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

EXHIBIT G

	 	 	 	 	 

	1. SECURITY FOR OBLIGATIONS
	 	 	2	 
	2. DEFINITIONS
	 	 	3	 
	3. PLEDGE OF SECURITIES, ETC.
	 	 	7	 
	3.1 Pledge
	 	 	7	 
	3.2 Procedures
	 	 	10	 
	3.3 Subsequently Acquired Collateral
	 	 	11	 
	3.4 Transfer Taxes
	 	 	12	 
	3.5 Definition of Pledged Notes
	 	 	12	 
	3.6 Certain Representations and Warranties Regarding the Collateral
	 	 	12	 
	4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC
	 	 	12	 
	5. VOTING, ETC., WHILE NO EVENT OF DEFAULT
	 	 	12	 
	6. DIVIDENDS AND OTHER DISTRIBUTIONS
	 	 	13	 
	7. REMEDIES IN CASE OF AN EVENT OF DEFAULT
	 	 	14	 
	8. REMEDIES, CUMULATIVE, ETC
	 	 	15	 
	9. APPLICATION OF PROCEEDS
	 	 	15	 
	10. PURCHASERS OF COLLATERAL
	 	 	15	 
	11. INDEMNITY
	 	 	16	 
	12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER
	 	 	16	 
	13. FURTHER ASSURANCES; POWER-OF-ATTORNEY
	 	 	17	 
	14. THE PLEDGEE AS COLLATERAL AGENT
	 	 	17	 
	15. TRANSFER BY THE PLEDGORS
	 	 	18	 
	16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS
	 	 	18	 
	17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A
  TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; ORGANIZATIONAL IDENTIFICATION
  NUMBERS; CHANGES THERETO; ETC
	 	 	20	 
	18. PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC
	 	 	21	 
	19. TERMINATION; RELEASE
	 	 	21	 
	20. NOTICES, ETC
	 	 	22	 

 

 

	 	 	 	 	 

	21. WAIVER; AMENDMENT
	 	 	23	 
	22. MISCELLANEOUS
	 	 	23	 
	23. HEADINGS DESCRIPTIVE
	 	 	23	 
	24. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
	 	 	23	 
	25. PLEDGOR’S DUTIES
	 	 	24	 
	26. COUNTERPARTS
	 	 	24	 
	27. SEVERABILITY
	 	 	25	 
	28. RECOURSE
	 	 	25	 
	29. ADDITIONAL PLEDGORS
	 	 	25	 
	30. LIMITED OBLIGATIONS
	 	 	25	 
	31. RELEASE OF PLEDGORS
	 	 	25	 

	 	 	 	 	 

	ANNEX A

	 	—
	 	SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION,
JURISDICTION OF ORGANIZATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS
	ANNEX B

	 	—
	 	SCHEDULE OF SUBSIDIARIES
	ANNEX C

	 	—
	 	SCHEDULE OF STOCK
	ANNEX D

	 	—
	 	SCHEDULE OF NOTES
	ANNEX E

	 	—
	 	SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS
	ANNEX F

	 	—
	 	SCHEDULE OF PARTNERSHIP INTERESTS
	ANNEX G

	 	—
	 	SCHEDULE OF CHIEF EXECUTIVE OFFICES
	ANNEX H

	 	—
	 	FORM OF AGREEMENT REGARDING UNCERTIFICATED
SECURITIES, LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

 

 

EXHIBIT H

FORM OF SECURITY AGREEMENT

among

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.,

TOWN SPORTS INTERNATIONAL, LLC,

CERTAIN OTHER SUBSIDIARIES OF TOWN SPORTS INTERNATIONAL HOLDINGS,

INC.

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as COLLATERAL AGENT

 

Dated as of May 11, 2011

 

 

 

FORM OF SECURITY AGREEMENT

          SECURITY AGREEMENT, dated as of May 11, 2011, made by each of the undersigned assignors (each,
an “Assignor” and, together with any other entity that becomes an assignor hereunder
pursuant to Section 10.12 hereof, the “Assignors”) in favor of Deutsche Bank Trust
Company Americas, as collateral agent (together with any successor collateral agent, the
“Collateral Agent”), for the benefit of the Secured Creditors (as defined below). Certain
capitalized terms as used herein are defined in Article IX hereof. Except as otherwise
defined herein, all other capitalized terms used herein and defined in the Credit Agreement (as
defined below) shall be used herein as therein defined.

W
I T N E S S E
T H :

          WHEREAS, Town Sports International Holdings, LLC (“Holdings”), Town Sports
International, LLC (the “Borrower”), the lenders from time to time party thereto (the
“Lenders”) and Deutsche Bank Trust Company Americas, as administrative agent (together with
any successor administrative agent, the “Administrative Agent”), have entered into a Credit
Agreement, dated as of May 11, 2011 (as amended, modified, restated, extended, restructured and/or
supplemented from time to time, together with any agreement refinancing in full the Indebtedness
under such agreement or successor agreements to the extent such agreement provides that it is to be
the “Credit Agreement” hereunder, the “Credit Agreement”), providing for the making of
Loans to, and the issuance of, and participation in, Letters of Credit for the account of, the
Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the Administrative Agent
and the Collateral Agent are herein called the “Lender Creditors”);

          WHEREAS, the Borrower and/or one or more of its Subsidiaries may at any time and from time to
time enter into one or more Interest Rate Protection Agreements and/or Other Hedging Agreements
with one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the
respective Lender subsequently ceases to be a Lender under the Credit Agreement for any reason,
together with such Lender’s or affiliate’s successors and assigns, if any, collectively, the
“Other Creditors” and, together with the Lender Creditors, the “Secured
Creditors”);

          WHEREAS, pursuant to the Credit Agreement Party Guaranty, each Credit Agreement Party has
guaranteed to the Guaranteed Creditors the payment when due of all Guaranteed Obligations as
described (and defined) therein;

          WHEREAS, pursuant to the Subsidiaries Guaranty, each Assignor (other than Holdings and the
Borrower) has jointly and severally guaranteed the payment and performance when due of all
Guaranteed Obligations as described (and defined) therein;

          WHEREAS, it is a condition precedent to the making of Loans to the Borrower, and the issuance
of, and participation in, Letters of Credit for the account of the Borrower under the Credit
Agreement and to the Other Creditors entering into Interest Rate Protection Agreements and Other
Hedging Agreements that each Assignor shall have executed and delivered to the Collateral Agent
this Agreement; and

 

 

Page 2

          WHEREAS, each Assignor will obtain benefits from the incurrence of Loans by the Borrower and
the issuance of, and participation in, Letters of Credit for the account of the Borrower under the
Credit Agreement and the entering into by the Borrower and/or one or more of its Subsidiaries of
Interest Rate Protection Agreements or Other Hedging Agreements and, accordingly, desires to
execute this Agreement in order to satisfy the condition described in the preceding recital and to
induce the Lenders to make Loans to the Borrower and issue, and/or participate in, Letters of
Credit for the account of the Borrower and the Other Creditors to enter into Interest Rate
Protection Agreements or Other Hedging Agreements with the Borrower and/or one or more of its
Subsidiaries;

          NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each
Assignor, the receipt and sufficiency of which are hereby acknowledged, each Assignor hereby makes
the following representations and warranties to the Collateral Agent for the benefit of the Secured
Creditors and hereby covenants and agrees with the Collateral Agent for the benefit of the Secured
Creditors as follows:

SECURITY INTERESTS

          Grant of Security Interests. (a) As security for the prompt and complete payment and
performance when due of all of its Obligations, each Assignor does hereby assign and transfer unto
the Collateral Agent, and does hereby pledge and grant to the Collateral Agent, in each case for
the benefit of the Secured Creditors, a continuing security interest in all of the right, title and
interest of such Assignor in, to and under all of the following personal property and fixtures (and
all rights therein) of such Assignor, or in which or to which such Assignor has any rights, in each
case whether now existing or hereafter from time to time acquired:

          each and every Account;

          all cash;

the Cash Collateral Account and all monies, securities, Instruments
and other investments deposited or required to be deposited in the Cash
Collateral Account;

all Chattel Paper (including, without limitation, all Tangible
Chattel Paper and all Electronic Chattel Paper);

all Commercial Tort Claims (including all Commercial Tort Claims
described in Annex D hereto);

all Domain Names, Trade Secrets, and other proprietary information,
including financial data, personal information, customer lists, supplier lists,
business plans, and data collections;

all Contracts, together with all Contract Rights arising
thereunder;

 

 

Page 3

          all Copyrights;

          all Equipment;

all Deposit Accounts and all other demand, deposit, time, savings,
cash management, passbook and similar accounts maintained by such Assignor with
any Person and all monies, securities, Instruments and other investments
deposited or required to be deposited in any of the foregoing;

          all Documents;

          all General Intangibles;

          all Goods;

          all Instruments;

          all Inventory;

          all Investment Property and Securities Accounts;

all Letter-of-Credit Rights (whether or not the respective letter
of credit is evidenced by a writing);

all Marks, together with the registrations and right to all
renewals thereof, the goodwill of the business of such Assignor symbolized by
the Marks and all causes of action arising prior to or after the date hereof
for infringement of any of the Marks or unfair competition regarding the same;

all Patents, together with all causes of action arising prior to or
after the date hereof for infringement of any of the Patents or unfair
competition regarding the same;

all Permits;

all Software and all recorded data of any kind or nature, and any
media on which the foregoing is recorded;

all Supporting Obligations; and

all Proceeds and products of any and all of the foregoing (all of
the above, including this clause (xxiii), the “Collateral”);

provided that no Assignor shall be required to grant a security interest hereunder in (and
the term “Collateral” shall not include) any Excluded Collateral (so long as same remains
“Excluded Collateral” in accordance with the definition thereof).

 

 

Page 4

          (b) The security interest of the Collateral Agent under this Agreement extends to all
Collateral which any Assignor may acquire, or with respect to which any Assignor may obtain rights,
at any time during the term of this Agreement.

          (c) Notwithstanding anything to the contrary contained in this Agreement, the Assignors shall
not be required to take any actions to perfect the Collateral Agent’s security interest hereunder
in motor vehicles, Letter-of-Credit Rights, cash, Deposit Accounts and Securities Accounts, in each
case except to the extent that a security interest in such types of Collateral can be perfected by
(i) the filings of a UCC-1 (or similar) financing statement under the applicable UCC, (ii) in the
case of Designated Deposit Accounts, by the execution and delivery of a Deposit Account Control
Agreement in accordance with Section 9.18 of the Credit Agreement and (iii) in the case of Letter
of Credit Rights, by taking the respective actions described in Section 3.8 hereof (and the
representations, warranties and covenants contained in this Agreement with respect to a perfected
security interest in such Collateral shall be qualified to the extent provided in this Section
1.1(c)).

          (d) Notwithstanding anything to the contrary contained in this Agreement, no security interest
is assigned, transferred, pledged or granted in any “intent-to-use” application for registration of
a Mark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing with
respect thereto of a verified “Statement of Use” pursuant to Section 1(d) of the Lanham Act or an
“Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act, to the extent that, and
during the period in which, the assignment, transfer, pledge or grant of a security interest in
such intent-to-use application would impair the validity or enforceability of any registration that
issues from that intent-to-use application under applicable federal law.

          Power of Attorney. Each Assignor hereby constitutes and appoints the Collateral Agent
its true and lawful attorney, irrevocably, with full power after the occurrence of and during the
continuance of an Event of Default (in the name of such Assignor or otherwise) to act, require,
demand, receive, compound and give acquittance for any and all moneys and claims for moneys due or
to become due to such Assignor under or arising out of the Collateral, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or take any action or
institute any proceedings which the Collateral Agent may deem to be necessary or advisable to
protect the interests of the Secured Creditors, which appointment as attorney is coupled with an
interest.

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

Each Assignor represents, warrants and covenants, which representations, warranties and covenants
shall survive execution and delivery of this Agreement, as follows:

          Necessary Filings. (i) All filings, registrations, recordings and other actions
necessary or appropriate to create, preserve and perfect the security interest granted by such
Assignor to the Collateral Agent hereby in respect of the Collateral have been accomplished (or
will be accomplished within the time periods set forth in the first sentence of Section 8.11(a) of

 

 

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the Credit Agreement) and (ii) the security interest granted to the Collateral Agent pursuant to
this Agreement in and to the Collateral creates (or upon such filings will create) a valid and,
together with all such filings, registrations, recordings and other actions, a perfected security
interest therein prior to the rights of all other Persons therein and subject to no other Liens
(other than Permitted Liens) and is entitled to all the rights, priorities and benefits afforded by
the UCC or other relevant law as enacted in any relevant jurisdiction to perfected security
interests, in each case to the extent that the Collateral consists of the type of property in which
a security interest may be perfected and is required to be perfected hereunder (x) by possession or
control (within the meaning of the UCC as in effect on the date hereof in the State of New York),
(y) by filing a financing statement under the UCC as enacted in any relevant jurisdiction or (z) by
a filing of a Grant of Security Interest in the respective form attached hereto in the United
States Patent and Trademark Office or in the United States Copyright Office.

          No Liens. Such Assignor is, and as to all Collateral acquired by it from time to time
after the date hereof such Assignor will be, the owner or holder of all Collateral free from any
Lien (other than Permitted Liens), and such Assignor shall defend the Collateral against all claims
and demands of all Persons at any time claiming the same or any interest therein adverse to the
Collateral Agent.

          Other Financing Statements. As of the date hereof, there is no financing statement
(or similar statement or instrument of registration under the law of any jurisdiction) covering or
purporting to cover any interest of any kind in the Collateral (other than financing statements
filed in respect of Permitted Liens), and so long as the Termination Date has not occurred, such
Assignor will not execute or authorize to be filed in any public office any financing statement (or
similar statement or instrument of registration under the law of any jurisdiction) or statements
relating to the Collateral, except financing statements filed or to be filed in respect of and
covering the security interests granted hereby by such Assignor or in connection with Permitted
Liens.

          Chief Executive Office. The chief executive office of such Assignor is, on the date
of this Agreement, located at the address indicated on Annex A hereto for such Assignor.
During the period of the four calendar months preceding the date of this Agreement, the chief
executive office of such Assignor has not been located at any address other than that indicated on
Annex A in accordance with the immediately preceding sentence, in each case unless each
such other address is also indicated on Annex A hereto for such Assignor.

          Legal Names; Type of Organization (and Whether a Registered Organization and/or a
Transmitting Utility); Jurisdiction of Organization; Organizational Identification Numbers; Changes
Thereto; etc. As of the date hereof, the exact legal name of each Assignor, the type of
organization of such Assignor, whether or not such Assignor is a Registered Organization, the
jurisdiction of organization of such Assignor, the organizational identification number (if any) of
such Assignor, and whether or not such Assignor is a Transmitting Utility, is listed on Annex
B hereto for such Assignor. Such Assignor shall not change its legal name, its type of
organization, its status as a Registered Organization (in the case of a Registered Organization),
its status as a Transmitting Utility or as a Person which is not a Transmitting Utility, as the
case may be, its jurisdiction of organization, or its organizational identification number (if any)
from that listed on Annex B hereto, except that any such changes shall be

 

 

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permitted (so long as not in violation of the applicable requirements of the Credit Documents and
so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) such
Assignor changing its jurisdiction of organization from the United States or a State thereof to a
jurisdiction of organization outside the United States or a State thereof) if (i) it shall have
given to the Collateral Agent not more than 10 days’ written notice (or such shorter period as
shall be acceptable to the Collateral Agent) after each change to the information listed on
Annex B (as adjusted for any subsequent changes thereto previously made in accordance with
this sentence), together with a supplement to Annex B which shall correct all information
contained therein for such Assignor, and (ii) in connection with such respective change or changes,
it shall have taken all action reasonably requested by the Collateral Agent to maintain the
security interests of the Collateral Agent in the Collateral intended to be granted hereby at all
times fully perfected and in full force and effect. In addition, to the extent that such Assignor
does not have an organizational identification number on the date hereof and later obtains one,
such Assignor shall promptly thereafter notify the Collateral Agent of such organizational
identification number and shall take all actions reasonably satisfactory to the Collateral Agent to
the extent necessary to maintain the security interest of the Collateral Agent in the Collateral
intended to be granted hereby fully perfected and in full force and effect.

          Trade Names; Etc. Such Assignor does not have nor does it operate in any jurisdiction
under, nor in the preceding five years has it had or operated in any jurisdiction under, any trade
names, fictitious names or other names except its legal name as specified in Annex B and
such other trade or fictitious names as are listed on Annex C hereto for such Assignor.
Such Assignor may assume or operate in any jurisdiction under any new trade, fictitious or other
name if (i) it shall have given to the Collateral Agent not more than 10 days’ written notice (or
such shorter period as shall be acceptable to the Collateral Agent) after any such assumption or
operation, clearly describing such new name and the jurisdictions in which such new name will be
used and providing such other information in connection therewith as the Collateral Agent may
reasonably request and (ii) with respect to such new name, it shall have taken all action
reasonably requested by the Collateral Agent to maintain the security interest of the Collateral
Agent in the Collateral intended to be granted hereby at all times fully perfected and in full
force and effect.

SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS;

INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

          Maintenance of Records. Upon the occurrence and during the continuance of an Event of
Default and at the request of the Collateral Agent, such Assignor shall, at its own cost and
expense, deliver all tangible evidence of its Accounts and Contract Rights (including, without
limitation, all documents evidencing the Accounts and all Contracts) and such books and records to
the Collateral Agent or to its representatives (copies of which evidence and books and records may
be retained by such Assignor). Upon the occurrence and during the continuance of an Event of
Default and if the Collateral Agent so directs, such Assignor shall legend, in form and manner
satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as books, records and
documents (if any) of such Assignor evidencing or pertaining to such

 

 

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Accounts and Contracts with an appropriate reference to the fact that such Accounts and
Contracts have been assigned to the Collateral Agent and that the Collateral Agent has a security
interest therein.

          Direction to Account Debtors; Contracting Parties; etc. Upon the occurrence and
during the continuance of an Event of Default, if the Collateral Agent so directs any Assignor,
such Assignor agrees (x) to cause all payments on account of the Accounts and Contracts to be made
directly to the Cash Collateral Account, (y) that the Collateral Agent may, at its option, directly
notify the obligors with respect to any Accounts and/or under any Contracts to make payments with
respect thereto as provided in the preceding clause (x), and (z) that the Collateral Agent may
enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the
amount of payment thereof, in the same manner and to the same extent as such Assignor. Without
notice to or assent by any Assignor, the Collateral Agent may, upon the occurrence and during the
continuance of an Event of Default, apply any or all amounts then in, or thereafter deposited in,
the Cash Collateral Account toward the payment of the Obligations in the manner provided in
Section 7.4 of this Agreement. The reasonable costs and expenses of collection (including
reasonable attorneys’ fees), whether incurred by an Assignor or the Collateral Agent, shall be
borne by the relevant Assignor. The Collateral Agent shall deliver a copy of each notice referred
to in the preceding clause (y) to the relevant Assignor, provided that (x) the failure by
the Collateral Agent to so notify such Assignor shall not affect the effectiveness of such notice
or the other rights of the Collateral Agent created by this Section 3.2 and (y) no such
notice shall be required if an Event of Default of the type described in Section 11.05 of the
Credit Agreement has occurred and is continuing.

          Collection. Except as otherwise directed by the Collateral Agent after the occurrence
and during the continuation of an Event of Default, any Assignor may allow as adjustments to
amounts owing under its Accounts and Contracts (i) an extension or renewal of the time or times of
payment, or settlement for less than the total unpaid balance, which such Assignor finds
appropriate, and (ii) a refund or credit due as a result of returned or damaged merchandise or
improperly performed services or for other reasons which such Assignor finds appropriate. The
reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees) of
collection, whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant
Assignor.

          Instruments. If any Assignor owns or acquires any Instrument in excess of $1,000,000
constituting Collateral (other than (x) checks and other payment instruments received and collected
in the ordinary course of business and (y) any Instrument subject to pledge pursuant to the Pledge
Agreement), such Assignor will within 10 Business Days notify the Collateral Agent thereof, and
upon request by the Collateral Agent will promptly deliver such Instrument to the Collateral Agent
appropriately endorsed to the order of the Collateral Agent as further security hereunder.

          Assignors Remain Liable Under Accounts. Anything herein to the contrary
notwithstanding, the Assignors shall remain liable under each of the Accounts to observe and
perform all of the conditions and obligations to be observed and performed by it thereunder, all in
accordance with the terms of any agreement giving rise to such Accounts. Neither the Collateral
Agent nor any other Secured Creditor shall have any obligation or liability under any

 

 

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Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement
or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to
such Account pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be
obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any
Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the
nature or the sufficiency of any payment received by them or as to the sufficiency of any
performance by any party under any Account (or any agreement giving rise thereto), 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 them or to which they may be entitled at any time or times.

          Assignors Remain Liable Under Contracts. Anything herein to the contrary
notwithstanding, the Assignors shall remain liable under each of the Contracts to observe and
perform all of the conditions and obligations to be observed and performed by them thereunder, all
in accordance with and pursuant to the terms and provisions of each Contract. Neither the
Collateral Agent nor any other Secured Creditor shall have any obligation or liability under any
Contract by reason of or arising out of this Agreement or the receipt by the Collateral Agent or
any other Secured Creditor of any payment relating to such Contract pursuant hereto, nor shall the
Collateral Agent or any other Secured Creditor be obligated in any manner to perform any of the
obligations of any Assignor under or pursuant to any Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any performance by any party under any Contract, 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 them or to which they may be entitled at any time or
times.

          Designated Deposit Accounts. With respect to each Designated Deposit Account
maintained by such Assignor from time to time, such Assignor shall comply with the requirements of
Section 9.18 of the Credit Agreement.

          Letter-of-Credit Rights. If any Assignor is at any time a beneficiary under a letter
of credit with a stated amount of $1,000,000 or more, such Assignor shall promptly notify the
Collateral Agent thereof and, at the request of the Collateral Agent, such Assignor shall, pursuant
to an agreement in form and substance reasonably satisfactory to the Collateral Agent, use its
commercially reasonable efforts to either (i) 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 (ii) 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 the letter of credit are to be applied as provided in this Agreement
after the occurrence and during the continuance of an Event of Default.

          Commercial Tort Claims. All Commercial Tort Claims of, and known to, each Assignor in
existence on the date of this Agreement are described in Annex D hereto (but only to the
extent that the amount (taking the greater of the aggregate claimed damages thereunder or the
reasonably estimated value thereof) of an individual Commercial Tort Claim is $1,000,000 or more).
If any Assignor shall at any time after the date of this Agreement acquire a Commercial Tort Claim
in an amount (taking the greater of the aggregate claimed damages thereunder or the reasonably
estimated value thereof) of $1,000,000 or more, such Assignor shall promptly notify

 

 

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the Collateral Agent thereof in a writing signed by such Assignor and describing the details
thereof and shall grant to the Collateral Agent in such writing a security interest therein and in
the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and
substance reasonably satisfactory to the Collateral Agent.

          Chattel Paper. Upon the request of the Collateral Agent made at any time or from time
to time, each Assignor shall promptly furnish to the Collateral Agent a list of all Electronic
Chattel Paper in each case in respect of goods with a value greater than $1,000,000 held or owned
by such Assignor. Furthermore, if requested by the Collateral Agent, each Assignor shall promptly
take all actions which are reasonably practicable so that the Collateral Agent has “control” of all
Electronic Chattel Paper in accordance with the requirements of Section 9-105 of the UCC. Each
Assignor will promptly (and in any event within 10 days) following any request by the Collateral
Agent, deliver an original of all of its Tangible Chattel Paper in each case in respect of goods
with a value greater than $1,000,000 to the Collateral Agent.

SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

          Additional Representations and Warranties. Each Assignor represents and warrants that
it is the true and lawful owner of or otherwise has the right to use the registered Marks and
Domain Names listed in Annex E hereto for such Assignor and that said listed Marks and
Domain Names include all (a) United States trademarks and service marks registered in the United
States Patent and Trademark Office, (b) applications to register United States trademarks and
service marks in the United States Patent and Trademark Office, and (c) Internet domain names, in
each case of (a)-(c), that such Assignor owns in connection with its business as of the date
hereof. Each Assignor represents and warrants that it owns, is licensed to use or otherwise has
the right to use, all Marks and Domain Names that are necessary for the conduct of its business as
currently conducted. Each Assignor further warrants that it has no knowledge of any written or
other material third party claim received by it that any aspect of such Assignor’s present business
operations infringe or will infringe any trademark, service mark or trade name of any other Person
which, either individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect. Each Assignor represents and warrants that the registrations listed in Annex
E are subsisting and have not been canceled and, to such Assignor’s knowledge, are valid, and
such Assignor is not aware, except as would not have a Material Adverse Effect, of any third-party
claim that any of said registrations is invalid or unenforceable. Each Assignor hereby grants to
the Collateral Agent an absolute power of attorney to sign, solely upon the occurrence and during
the continuance of an Event of Default, any document which may be required by the United States
Patent and Trademark Office or similar registrar in order to effect, in accordance with Section 7.1
hereof, an absolute assignment of all right, title and interest in each Mark and/or Domain Name,
and record the same.

          Infringements. Except as each Assignor otherwise determines in its reasonable
business judgment, each Assignor agrees to prosecute diligently in accordance with reasonable
business practices any Person infringing any Mark or Domain Name in any manner that could
reasonably be expected to have a Material Adverse Effect.

 

 

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          Preservation of Marks and Domain Names. Except as otherwise permitted by the Credit
Agreement, each Assignor agrees to use its United States federally registered Marks that are
material to such Assignor’s business in interstate commerce during the time in which this Agreement
is in effect and to take all such other actions as are reasonably necessary to preserve such Marks
as trademarks or service marks under the laws of the United States (in each case, other than as
such Assignor determines that the preservation or continued effectiveness thereof is no longer
desirable in the conduct of the business).

          Maintenance of Registration. Except as otherwise permitted by the Credit Agreement,
each Assignor shall, at its own expense, diligently process all documents reasonably required to
maintain all Mark and/or Domain Name registrations, including but not limited to affidavits of use
and applications for renewals of registration in the United States Patent and Trademark Office for
all of its material registered Marks, and shall pay all fees and disbursements in connection
therewith and shall not abandon such filing of affidavit of use or any such application of renewal
prior to the exhaustion of all administrative and judicial remedies without prior written consent
of the Collateral Agent, which consent shall not be unreasonably withheld (in each case, other than
as such Assignor determines that the preservation or continued effectiveness thereof is no longer
desirable in the conduct of the business).

          Future Registered Marks. If any Mark registration is issued hereafter to any
Assignor as a result of any application now or hereafter pending before the United States Patent
and Trademark Office, at the end of the calendar quarter in which such certificate or similar
indicia of ownership was received, such Assignor shall deliver to the Collateral Agent a copy of
such registration certificate or similar indicia of ownership, and a grant of a security interest
in such Mark, to the Collateral Agent and at the expense of such Assignor, confirming the grant of
a security interest in such Mark to the Collateral Agent hereunder, the form of such security to be
substantially in the form of Annex H hereto or in such other form as may be reasonably
satisfactory to the Collateral Agent.

SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

          Additional Representations and Warranties. Each Assignor represents and warrants that
it is the true and lawful owner of (i) all rights in (x) the Patents listed in Annex F
hereto for such Assignor and that said Patents include all the United States patents and
applications for United States patents that such Assignor owns as of the date hereof and (y) the
Copyrights listed in Annex G hereto for such Assignor and that said Copyrights constitute
all the United States copyrights registered with the United States Copyright Office and
applications to register United States copyrights that such Assignor owns as of the date hereof and
(ii) all rights in, or otherwise has the right to use, all Trade Secrets and other proprietary
information necessary to operate the business of such Assignor as currently operated. Each
Assignor further warrants that it has no knowledge of any written or other material third party
claim received by it that any aspect of such Assignor’s present business operations infringes or
will infringe any patent and/or copyright of any other Person, or that such Assignor has
misappropriated any trade secret or other proprietary information, in each case which, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
Each Assignor

 

 

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hereby grants to the Collateral Agent an absolute power of attorney to sign, solely upon
the occurrence and during the continuance of any Event of Default, any document which may be
required by the United States Patent and Trademark Office or the United States Copyright Office in
order to effect, in accordance with Section 7.1 hereof, an absolute assignment of all right, title
and interest in each Patent or Copyright, and to record the same.

          Infringements. Except as each Assignor otherwise determines in its reasonable
business judgment, each Assignor agrees to diligently prosecute any Person infringing any Patent or
Copyright or any Person misappropriating any Trade Secret, for which such Assignor has a right of
action for misappropriation, in each case to the extent that such infringement or misappropriation,
either individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

          Maintenance of Patents or Copyrights. Except as otherwise permitted by the Credit
Agreement, at its own expense, each Assignor shall make timely payment of all post-issuance fees
required to maintain in force its rights under each issued Patent or registered Copyright (other
than as such Assignor determines that the preservation or continued effectiveness thereof is no
longer desirable in the conduct of the business).

          Prosecution of Patent or Copyright Applications. At its own expense, each Assignor
shall diligently prosecute all material applications for (i) United States Patents listed in
Annex H hereto and (ii) United States Copyrights listed on Annex I hereto, in each
case for such Assignor and shall not abandon any such application prior to exhaustion of all
administrative and judicial remedies (in each case, other than as such Assignor determines that the
preservation or continued effectiveness thereof is no longer desirable in the conduct of the
business).

          Other Patents and Copyrights. At the end of each calendar quarter following the
acquisition or issuance of a United States Patent, registration of a Copyright, or acquisition of a
registered Copyright, or of filing of an application for a United States Patent or Copyright, the
relevant Assignor shall deliver to the Collateral Agent a copy of said Copyright or Patent, or
certificate or registration of, or application therefor, as the case may be, with a grant of a
security interest as to such Patent or Copyright, as the case may be, to the Collateral Agent and
at the expense of such Assignor, confirming the grant of a security interest, the form of such
grant of a security interest to be substantially in the form of Annex I or J
hereto, as appropriate, or in such other form as may be reasonably satisfactory to the Collateral
Agent.

PROVISIONS CONCERNING ALL COLLATERAL

          Protection of Collateral Agent’s Security. Except as otherwise permitted by the
Credit Documents, each Assignor will do nothing to impair the rights of the Collateral Agent in the
Collateral. Each Assignor will at all times keep its Inventory and Equipment insured in favor of
the Collateral Agent, at such Assignor’s own expense to the extent and in the manner required by
the Credit Documents. Except to the extent otherwise permitted to be retained by such Assignor or
applied by such Assignor pursuant to the terms of the Credit Documents, during the existence of an
Event of Default the Collateral Agent shall, at the time any proceeds of such

 

 

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insurance are distributed to the Secured Creditors, apply such proceeds in accordance with
Section 7.4 hereof. Each Assignor assumes all liability and responsibility in connection
with the Collateral acquired by it and the liability of such Assignor to pay the Obligations shall
in no way be affected or diminished by reason of the fact that such Collateral may be lost,
destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor.

          Additional Information. Each Assignor will, at its own expense, from time to time
upon the reasonable request of the Collateral Agent, promptly (and in any event within 10 Business
Days after its receipt of the respective request) furnish to the Collateral Agent such information
with respect to the Collateral (including with reasonable specificity and in summary form, the
identity of the Collateral or such components thereof as may have been reasonably requested by the
Collateral Agent, the value and location of such Collateral, etc.) as may be reasonably requested
by the Collateral Agent. Without limiting the forgoing, each Assignor agrees that it shall
promptly (and in any event within 10 Business Days after its receipt of the respective request)
furnish to the Collateral Agent such updated Annexes hereto as may from time to time be reasonably
requested by the Collateral Agent.

          Further Actions. Each Assignor will, at its own expense and upon the reasonable
request of the Collateral Agent, take such further steps relating to the Collateral, which the
Collateral Agent deems reasonably appropriate or advisable to perfect, preserve or protect its
security interest in the Collateral.

          Financing Statements. Each Assignor agrees to authorize and deliver to the Collateral
Agent such financing statements, in form reasonably acceptable to the Collateral Agent, as the
Collateral Agent may from time to time reasonably request or as are reasonably necessary or
desirable in the opinion of the Collateral Agent to establish and maintain a valid, enforceable,
perfected security interest in the Collateral as provided herein and the other rights and security
contemplated hereby. Each Assignor will pay any applicable filing fees, recordation taxes and
related expenses relating to its Collateral. Each Assignor hereby authorizes the Collateral Agent
to file any such financing statements without the signature of such Assignor where permitted by law
(and such authorization includes describing the Collateral as “all assets” of such Assignor).

REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

          Remedies; Obtaining the Collateral Upon Default. Each Assignor agrees that, if any
Event of Default shall have occurred and be continuing, then and in every such case, the Collateral
Agent, in addition to any rights now or hereafter existing under applicable law and under the other
provisions of this Agreement, shall have all rights as a secured creditor under any UCC, and such
additional rights and remedies to which a secured creditor is entitled under the laws in effect in
all relevant jurisdictions and may:

     personally, or by agents or attorneys, immediately take possession of the Collateral or any
part thereof, from such Assignor or any other Person who then has possession of any part thereof
with or without notice or process of law, and for that purpose may enter upon such

 

 

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Assignor’s premises where any of the Collateral is located and remove the same and use in
connection with such removal any and all services, supplies, aids and other facilities of such
Assignor;

     instruct the obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting the Collateral to
make any payment required by the terms of such agreement, instrument or other obligation
directly to the Collateral Agent and may exercise any and all remedies of such Assignor in
respect of such Collateral;

     instruct all depository banks and other depository institutions which have entered into a
Deposit Account Control Agreement with the Collateral Agent to transfer all monies, securities
and instruments held by such depositary bank or other depository institution to the Cash
Collateral Account in accordance with the terms of the respective Deposit Account Control
Agreement (including by issuing a “Notice of Exclusive Control” in accordance with the terms
thereof);

     withdraw all monies, securities and instruments in the Cash Collateral Account and/or in
any other Deposit Account maintained with the Collateral Agent or any other Secured Creditor (or
any affiliate thereof) for application to the Obligations in accordance with Section 7.4
hereof;

     sell, assign or otherwise liquidate any or all of the Collateral or any part thereof in
accordance with Section 7.2 hereof, or direct such Assignor to sell, assign or otherwise
liquidate any or all of the Collateral or any part thereof, and, in each case, take possession
of the proceeds of any such sale or liquidation;

     take possession of the Collateral or any part thereof, by directing such Assignor in
writing to deliver the same to the Collateral Agent at any reasonable place or places designated
by the Collateral Agent, in which event such Assignor shall at its own expense:

     (x) forthwith cause the same to be moved to the place or places so designated
by the Collateral Agent and there delivered to the Collateral Agent;

     (y) store and keep any Collateral so delivered to the Collateral Agent at such
place or places pending further action by the Collateral Agent as provided in
Section 7.2 hereof; and

     (z) while the Collateral shall be so stored and kept, provide such security and
maintenance services as shall be reasonably necessary to protect the same and to
preserve and maintain it in good condition;

     license or sublicense, whether on an exclusive or nonexclusive basis, any Marks,
Domain Names, Patents or Copyrights included in the Collateral for such term and on such
conditions and in such manner as the Collateral Agent shall in its sole judgment determine;

 

 

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     apply any monies constituting Collateral or proceeds thereof in accordance with the
provisions of Section 7.4;

     take any other action as specified in clauses (1) through (5), inclusive, of Section
9-607 of the UCC;

     declare the entire right, title and interest of any Assignor in and to any Patents,
Copyrights, Domain Names, and Marks included in the Collateral, in which event such rights,
title and interest shall immediately vest in the Collateral Agent for the benefit of the
Secured Creditors, and the Collateral Agent shall be entitled to exercise the power of
attorney referred to in Sections 4.1 and 5.1 to execute, cause to be acknowledged and
notarized and record said absolute assignment with the applicable agency or registrar;

     use or practice any Patents, Copyrights, Trade Secrets or other proprietary
information, Marks, and Domain Names included in the Collateral and the goodwill of any
Assignor’s business symbolized by such Marks or Domain Names and the right to carry on the
business and use the assets of such Assignor in connection with which the Marks or Domain
Names have been used; and

     direct any Assignor to refrain, in which event such Assignor shall refrain, from using
or practicing any Patents, Copyrights, Trade Secrets or other proprietary information,
Marks, and Domain Names included in the Collateral in any manner whatsoever, directly or
indirectly, and such Assignor shall execute such further documents that the Collateral
Agent may reasonably request to further confirm this and to transfer ownership and any
registrations and pending applications to the Collateral Agent for the benefit of the
Secured Creditors;

it being understood that each Assignor’s obligation so to deliver the Collateral is of the essence
of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction,
the Collateral Agent shall be entitled to a decree requiring specific performance by such Assignor
of said obligation. By accepting the benefits of this Agreement and each other Security Document,
the Secured Creditors expressly acknowledge and agree that this Agreement and each other Security
Document may be enforced only by the action of the Collateral Agent acting upon the instructions of
the Required Secured Creditors and that no other Secured Creditor shall have any right individually
to seek to enforce or to enforce this Agreement or to realize upon the security to be granted
hereby, it being understood and agreed that such rights and remedies may be exercised by the
Collateral Agent or the holders of at least a majority of the outstanding Other Obligations, as the
case may be, for the benefit of the Secured Creditors upon the terms of this Agreement and the
other Security Documents.

          Remedies; Disposition of the Collateral. If any Event of Default shall have occurred
and be continuing, then any Collateral repossessed by the Collateral Agent under or pursuant to
Section 7.1 hereof and any other Collateral whether or not so repossessed by the Collateral
Agent, may be sold, assigned, leased or otherwise disposed of under one or more contracts or as an
entirety, and without the necessity of gathering at the place of sale the property to be sold, and
in general in such manner, at such time or times, at such place or places and on such

 

 

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terms as the Collateral Agent may, in compliance with any mandatory requirements of applicable law,
determine to be commercially reasonable. Any of the Collateral may be sold, leased or otherwise
disposed of, in the condition in which the same existed when taken by the Collateral Agent or after
any overhaul or repair at the expense of the relevant Assignor which the Collateral Agent shall
determine to be commercially reasonable. Any disposition which shall be a private sale or other
private proceedings permitted by such requirements shall be made upon not less than 10 days’ prior
written notice to the relevant Assignor specifying the time at which such disposition is to be made
and the intended sale price or other consideration therefor, and shall be subject, for the 10 days
after the giving of such notice, to the right of the relevant Assignor or any nominee of such
Assignor to acquire the Collateral involved at a price or for such other consideration at least
equal to the intended sale price or other consideration so specified. Any such sale, lease or
other disposition may be effected by means of a public disposition or private disposition, effected
in accordance with the applicable requirements (in each case if and to the extent applicable) of
Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements of applicable law
as may apply to the respective disposition. The Collateral Agent may, without notice or
publication, adjourn any public or private disposition or cause the same to be adjourned from time
to time by announcement at the time and place fixed for the disposition, and such disposition may
be made at any time or place to which the disposition may be so adjourned. To the extent permitted
by any such requirement of law, the Collateral Agent may bid for and become the purchaser (and may
pay all or any portion of the purchase price by crediting Obligations against the purchase price)
of the Collateral or any item thereof, offered for sale in accordance with this Section 7.2
without accountability to the relevant Assignor. If, under applicable law, the Collateral Agent
shall be permitted to make disposition of the Collateral within a period of time which does not
permit the giving of notice to the relevant Assignor as hereinabove specified, the Collateral Agent
need give such Assignor only such notice of disposition as shall be reasonably practicable in view
of such applicable law. Each Assignor agrees to do or cause to be done all such other acts and
things as may be reasonably necessary to make such disposition or dispositions of all or any
portion of the Collateral valid and binding and in compliance with any and all applicable laws,
regulations, orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or
governmental instrumentalities, domestic or foreign, having jurisdiction over any such sale or
sales, all at such Assignor’s expense.

          Waiver of Claims. Except as otherwise provided in this Agreement, EACH ASSIGNOR
HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION
WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF ANY OF THE
COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT
REMEDY OR REMEDIES, and each Assignor hereby further waives, to the extent permitted by law:

     all damages occasioned by such taking of possession or any such disposition except any
damages which are the direct result of the Collateral Agent’s gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and non-appealable
decision);

 

 

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     except as otherwise expressly provided in this Agreement, all other requirements as to the
time, place and terms of sale or other requirements with respect to the enforcement of the
Collateral Agent’s rights hereunder; and

     all rights of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any applicable law in order to prevent or delay the enforcement of this
Agreement or the absolute sale of the Collateral or any portion thereof, and each Assignor, for
itself and all who may claim under it, insofar as it or they now or hereafter lawfully may,
hereby waives the benefit of all such laws.

Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral
shall operate to divest all right, title, interest, claim and demand, either at law or in equity,
of the relevant Assignor therein and thereto, and shall be a perpetual bar both at law and in
equity against such Assignor and against any and all Persons claiming or attempting to claim the
Collateral so sold, optioned or realized upon, or any part thereof, from, through and under such
Assignor.

          Application of Proceeds. (a) All moneys collected by the Collateral Agent upon any
sale or other disposition of the Collateral (and, to the extent the Pledge Agreement or any other
Security Document requires proceeds of collateral under such other Security Document to be applied
in accordance with the provisions of this Agreement, all monies collected by the Pledgee or
collateral agent under such other Security Document upon any sale or other disposition of the
collateral under any such Security Document), together with all other moneys received by the
Collateral Agent hereunder and under each other Security Document, shall be applied as follows:

     first, to the payment of all amounts owing the Collateral Agent of the type
described in clauses (iii), (iv) and (v) of the definition of “Obligations”;

     second, to the extent proceeds remain after the application pursuant to preceding
clause (i), an amount equal to the outstanding Primary Obligations shall be paid to the Secured
Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving an
amount equal to its outstanding Primary Obligations or, if the proceeds are insufficient to pay
in full all such Primary Obligations, its Pro Rata Share of such amount remaining to be
distributed;

     third, to the extent proceeds remain after the application pursuant to preceding
clauses (i) and (ii), an amount equal to the outstanding Secondary Obligations shall be paid to
the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor
receiving an amount equal to its outstanding Secondary Obligations or, if the proceeds are
insufficient to pay in full all such Secondary Obligations, its Pro Rata Share of such amount
remaining to be distributed; and

     fourth, to the extent proceeds remain after the application pursuant to preceding
clauses (i) through (iii), inclusive, and following the termination of this Agreement pursuant
to Section 10.8(a) hereof, to the relevant Assignor or to whomever may be lawfully
entitled to receive such surplus.

 

 

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     (b) For purposes of this Agreement, (x) “Pro Rata Share” shall mean, when calculating
a Secured Creditor’s portion of any distribution or amount, that amount (expressed as a percentage)
equal to a fraction the numerator of which is the then unpaid amount of such Secured Creditor’s
Primary Obligations or Secondary Obligations, as the case may be, and the denominator of which is
the then outstanding amount of all Primary Obligations or Secondary Obligations, as the case may
be, (y) “Primary Obligations” shall mean (i) in the case of the Credit Document
Obligations, all principal of, premium, fees and interest on, all Loans, all Unpaid Drawings, all
contingent reimbursement obligations equal to the Stated Amount of all outstanding Letters of
Credit and all Fees, and (ii) in the case of the Other Obligations, all amounts due under each
Interest Rate Protection Agreement and each Other Hedging Agreement with an Other Creditor (other
than indemnities, fees (including, without limitation, attorneys’ fees) and similar obligations and
liabilities) and (z) “Secondary Obligations” shall mean all Obligations other than Primary
Obligations.

          (c) When payments to Secured Creditors are based upon their respective Pro Rata Shares, the
amounts received by such Secured Creditors hereunder shall be applied (for purposes of making
determinations under this Section 7.4 only) (i) first, to their Primary Obligations and
(ii) second, to their Secondary Obligations. If any payment to any Secured Creditor of its Pro
Rata Share of any distribution would result in overpayment to such Secured Creditor, such excess
amount shall instead be distributed in respect of the unpaid Primary Obligations or Secondary
Obligations, as the case may be, of the other Secured Creditors, with each Secured Creditor whose
Primary Obligations or Secondary Obligations, as the case may be, have not been paid in full to
receive an amount equal to such excess amount multiplied by a fraction the numerator of which is
the unpaid Primary Obligations or Secondary Obligations, as the case may be, of such Secured
Creditor entitled to distribution and the denominator of which is the unpaid Primary Obligations or
Secondary Obligations, as the case may be, of all Secured Creditors entitled to such distribution.

          (d) Each of the Secured Creditors, by their acceptance of the benefits hereof and of the other
Security Documents, agrees and acknowledges that if the Lender Creditors are to receive a
distribution on account of undrawn amounts with respect to Letters of Credit issued under the
Credit Agreement (which shall only occur after all outstanding Revolving Loans and Swingline Loans
under the Credit Agreement and Unpaid Drawings have been paid in full), such amounts shall be paid
to the Administrative Agent under the Credit Agreement and held by it, for the equal and ratable
benefit of the Lender Creditors, as cash security for the repayment of Obligations owing to the
Lender Creditors as such. If any amounts are held as cash security pursuant to the immediately
preceding sentence, then upon the termination of all outstanding Letters of Credit under the Credit
Agreement, and after the application of all such cash security to the repayment of all Obligations
owing to the Lender Creditors after giving effect to the termination of all such Letters of Credit,
if there remains any excess cash, such excess cash shall be returned by the Administrative Agent to
the Collateral Agent for distribution in accordance with Section 7.4(a) hereof.

          (e) All payments required to be made hereunder shall be made (x) if to the Lender Creditors,
to the Administrative Agent for the account of the Lender Creditors, and (y) if to the Other
Creditors, to the trustee, paying agent or other similar representative (each, a

 

 

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“Representative”) for the Other Creditors or, in the absence of such a Representative,
directly to the Other Creditors.

          (f) For purposes of applying payments received in accordance with this Section 7.4,
the Collateral Agent shall be entitled to rely upon (i) the Administrative Agent and (ii) the
Representative or, in the absence of such a Representative, upon the Other Creditors for a
determination (which the Administrative Agent, each Representative and the Secured Creditors agree
(or shall agree) to provide upon request of the Collateral Agent) of the outstanding Obligations
owed to the Lender Creditors or the Other Creditors, as the case may be. Unless it has received
written notice from a Lender Creditor or an Other Creditor to the contrary, the Administrative
Agent and each Representative, in furnishing information pursuant to the preceding sentence, and
the Collateral Agent, in acting hereunder, shall be entitled to assume that no Secondary
Obligations are outstanding. Unless it has written notice from an Other Creditor to the contrary,
the Collateral Agent, in acting hereunder, shall be entitled to assume that no Interest Rate
Protection Agreements or Other Hedging Agreements are in existence.

          (g) This Agreement is made with full recourse to each Assignor and pursuant to and upon all
the warranties, representations, covenants and agreements on the part of such Assignor contained
herein, in the Secured Debt Agreements and otherwise in writing in connection herewith or
therewith. It is understood that each Assignor shall remain jointly and severally liable to the
extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate
amount of the Obligations.

          Remedies Cumulative. Each and every right, power and remedy hereby specifically given
to the Collateral Agent shall be in addition to every other right, power and remedy specifically
given to the Collateral Agent under this Agreement, the other Secured Debt Agreements or now or
hereafter existing at law, in equity or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from time to time or
simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent.
All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the
exercise of one shall not be deemed a waiver of the right to exercise any other or others. No
delay or omission of the Collateral Agent in the exercise of any such right, power or remedy and no
renewal or extension of any of the Obligations shall impair any such right, power or remedy or
shall be construed to be a waiver of any Default or Event of Default or an acquiescence thereof.
No notice to or demand on any Assignor in any case shall entitle it to any other or further notice
or demand in similar or other circumstances or constitute a waiver of any of the rights of the
Collateral Agent to any other or further action in any circumstances without notice or demand. In
the event that the Collateral Agent shall bring any suit to enforce any of its rights hereunder and
shall be entitled to judgment, then in such suit the Collateral Agent may recover reasonable
expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such
judgment.

          Discontinuance of Proceedings. In case the Collateral Agent shall have instituted any
proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry
or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall
have been determined adversely to the Collateral Agent, then and in every such case the relevant
Assignor, the Collateral Agent and each holder of any of the Obligations shall

 

 

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be restored to their former positions and rights hereunder with respect to the Collateral
subject to the security interest created under this Agreement, and all rights, remedies and powers
of the Collateral Agent shall continue as if no such proceeding had been instituted.

INDEMNITY

          Indemnity. (a) Without limiting the provisions of the other Secured Debt Agreements,
each Assignor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent,
each other Secured Creditor (in its capacity as such) and their respective successors, assigns,
employees, affiliates, advisors and agents (as to any Indemnitee, its “Related Parties”)
(hereinafter in this Section 8.1 referred to individually as “Indemnitee,” and
collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages,
injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or
disbursements (including reasonable attorneys’ fees and expenses (limited, in the case of any Event
of Default, to one counsel to the Collateral Agent, one additional counsel for all Issuing Lenders
and Lenders, taken as a whole, one local counsel for the Collateral Agent and the Lenders, taken as
a whole, in each relevant jurisdiction, and, solely in the case of an actual or perceived conflict
of interests, one additional counsel in each relevant jurisdiction to each group of affected
Lenders similarly situated, taken as a whole)) (for the purposes of this Section 8.1 the
foregoing are collectively called “expenses”) of whatsoever kind and nature imposed on, asserted
against or incurred by any of the Indemnitees in any way relating to or arising out of this
Agreement or the enforcement of any of the terms hereof, or the preservation of any rights
hereunder, or in any way relating to or arising out of the manufacture, ownership, ordering,
purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale,
return or other disposition, or use of the Collateral (including, without limitation, latent or
other defects, whether or not discoverable), the violation of the laws of any country, state or
other governmental body or unit, any tort (including, without limitation, claims arising or imposed
under the doctrine of strict liability, or for or on account of injury to or the death of any
Person (including any Indemnitee), or property damage), or contract claim; provided that no
Indemnitee shall be indemnified pursuant to this Section 8.1(a) for losses, damages or
liabilities to the extent caused by the gross negligence or willful misconduct of such Indemnitee
or its Related Parties (as determined by a court of competent jurisdiction in a final and
non-appealable decision). Each Assignor agrees that upon written notice by any Indemnitee of the
assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit or
judgment, the relevant Assignor shall assume full responsibility for the defense thereof. Each
Indemnitee agrees to use its best efforts to promptly notify the relevant Assignor of any such
assertion of which such Indemnitee has knowledge.

          (b) Without limiting the application of Section 8.1(a) hereof, each Assignor agrees,
jointly and severally, to pay or reimburse the Collateral Agent for any and all reasonable fees,
costs and expenses of whatever kind or nature incurred in connection with the creation,
preservation or protection of the Collateral Agent’s Liens on, and security interest in, the
Collateral, including, without limitation, all fees and taxes in connection with the recording or
filing of instruments and documents in all applicable public offices, payment or discharge of any

 

 

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taxes or Liens upon or in respect of the Collateral, premiums for insurance with respect to the
Collateral and all other fees, costs and expenses in connection with protecting, maintaining or
preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial
proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising
out of or relating to the Collateral.

          (c) Without limiting the application of Section 8.1(a) or (b) hereof, each
Assignor agrees, jointly and severally, to pay, indemnify and hold each Indemnitee harmless from
and against any loss, costs, damages and expenses which such Indemnitee may suffer, expend or incur
in consequence of or growing out of any misrepresentation by any Assignor in this Agreement or in
any writing contemplated by or made or delivered pursuant to or in connection with this Agreement.

          (d) If and to the extent that the obligations of any Assignor under this Section 8.1
are unenforceable for any reason, such Assignor hereby agrees to make the maximum contribution to
the payment and satisfaction of such obligations which is permissible under applicable law.

          Indemnity Obligations Secured by Collateral; Survival. Any amounts paid by any
Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations
secured by the Collateral. The indemnity obligations of each Assignor contained in this
Article VIII shall continue in full force and effect notwithstanding the full payment of
all of the other Obligations and notwithstanding the full payment of all the Notes issued, and
Loans made, under the Credit Agreement, the termination of all Letters of Credit issued under the
Credit Agreement, the termination of all Interest Rate Protection Agreements and Other Hedging
Agreements entered into with the Other Creditors and the payment of all other Obligations and
notwithstanding the discharge thereof and the occurrence of the Termination Date.

DEFINITIONS

          The following terms shall have the meanings herein specified. Such definitions shall be
equally applicable to the singular and plural forms of the terms defined.

          “Account” shall mean any “account” as such term is defined in the UCC as in effect on
the date hereof in the State of New York, and in any event shall include but shall not be limited
to, all rights to payment of any monetary obligation, whether or not earned by performance, (i) for
property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii)
for services rendered or to be rendered, (iii) for a secondary obligation incurred or to be
incurred, (iv) for energy provided or to be provided, (v) arising out of the use of a credit or
charge card or information contained on or for use with the card, or (vi) as winnings in a lottery
or other game of chance operated or sponsored by a State, governmental unit of a State, or person
licensed or authorized to operate the game by a State or governmental unit of a State. Without
limiting the foregoing, the term “account” shall include all Health-Care-Insurance Receivables.

 

 

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          “Administrative Agent” shall have the meaning provided in the recitals of this
Agreement.

          “Agreement” shall mean this Security Agreement as the same may be amended, modified,
restated and/or supplemented from time to time in accordance with its terms.

          “As-Extracted Collateral” shall mean “as-extracted collateral” as such term is defined
in the UCC as in effect on the date hereof in the State of New York.

          “Assignor” shall have the meaning provided in the first paragraph of this Agreement.

          “Borrower” shall have the meaning provided in the recitals of this Agreement.

          “Cash Collateral Account” shall mean a non-interest bearing cash collateral account
maintained with, and in the sole dominion and control of, the Collateral Agent for the benefit of
the Secured Creditors.

          “Chattel Paper” shall mean “chattel paper” as such term is defined in the UCC as in
effect on the date hereof in the State of New York. Without limiting the foregoing, the term
“Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic Chattel
Paper.

          “Class” shall have the meaning provided in Section 10.2 of this Agreement.

          “Collateral” shall have the meaning provided in Section 1.1(a) of this
Agreement.

          “Collateral Agent” shall have the meaning provided in the first paragraph of this
Agreement.

          “Commercial Tort Claims” shall mean “commercial tort claims” as such term is defined
in the UCC as in effect on the date hereof in the State of New York.

          “Contract Rights” shall mean all rights of any Assignor under each Contract,
including, without limitation, (i) any and all rights to receive and demand payments under any or
all Contracts, (ii) any and all rights to receive and compel performance under any or all
Contracts, and (iii) any and all other rights, interests and claims now existing or in the future
arising in connection with any or all Contracts.

          “Contracts” shall mean all contracts between any Assignor and one or more additional
parties (including, without limitation, any Interest Rate Protection Agreements, Other Hedging
Agreements, licensing agreements and any partnership agreements, joint venture agreements and
limited liability company agreements).

          “Copyrights” shall mean any United States or foreign copyright owned by any Assignor,
including any registrations of any copyrights, in the United States Copyright Office or any foreign
equivalent office, as well as any application for a copyright registration made with the United
States Copyright Office or any foreign equivalent office by any Assignor.

 

 

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          “Credit Agreement” shall have the meaning provided in the recitals of this
Agreement.

          “Credit Document Obligations” shall have the meaning provided in the definition of
“Obligations” in this Article IX.

          “Credit Documents” shall have the meaning provided in the Credit Agreement, as such
documents may be amended, modified, restated and/or supplemented from time to time in connection
with the Credit Agreement.

          “Deposit Accounts” shall mean all “deposit accounts” as such term is defined in the
UCC as in effect on the date hereof in the State of New York.

          “Documents” shall mean “documents” as such term is defined in the UCC as in effect on
the date hereof in the State of New York.

          “Domain Names” shall mean all Internet domain names and associated URL addresses in or
to which any Assignor has any right, title or interest.

          “Electronic Chattel Paper” shall mean “electronic chattel paper” as such term is
defined in the UCC as in effect on the date hereof in the State of New York.

          “Equipment” shall mean any “equipment” as such term is defined in the UCC as in effect
on the date hereof in the State of New York now or hereafter owned by any Assignor, and in any
event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures
and vehicles now or hereafter owned by any Assignor and any and all additions, substitutions and
replacements of any of the foregoing and all accessions thereto, wherever located, together with
all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.

          “Event of Default” shall mean any Event of Default under, and as defined in, the
Credit Agreement or, after the Credit Document Obligations have been paid in full and all Letters
of Credit and Commitments have terminated, an Event of Default (or similar term) under any Interest
Rate Protection Agreement or Other Hedging Agreement entered into with an Other Creditor.

          “Excluded Collateral” shall mean (i) any Contract that validly prohibits, restricts or
requires the consent not obtained of a third party (other than Holdings or a Subsidiary thereof)
for the creation by such Assignor of a security interest in such Contract (or in any rights or
property obtained by such Assignor under such Contracts) except to the extent that any such
prohibition or restriction would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408
and 9-409 of the UCC (or any successor provision or provisions) or any other applicable law
(including the Bankruptcy Code), (ii) any property subject to a Lien permitted by Section
10.01(vi), (vii), (xiv) or (xv) of the Credit Agreement, to the extent that the contractual
arrangements governing such Lien expressly prohibit the granting of a security interest hereunder
in such property, (iii) any property to the extent that such grant of a security interest is
prohibited by a governmental authority, or requires a consent not obtained of any governmental
authority

 

 

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and (iv) the Equity Interests in Persons that are not Wholly-Owned Subsidiaries of Holdings
but only to the extent that the pledge of such Equity Interests is not permitted hereunder by the
terms of any agreement or organizational document of such Person and only so long as such
contractual prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective
by the UCC, the Bankruptcy Code or any other requirement of law.

          “General Intangibles” shall mean “general intangibles” as such term is defined in the
UCC as in effect on the date hereof in the State of New York.

          “Goods” shall mean “goods” as such term is defined in the UCC as in effect on the date
hereof in the State of New York.

          “Health-Care-Insurance Receivable” shall mean any “health-care-insurance receivable”
as such term is defined in the UCC as in effect on the date hereof in the State of New York.

          “Holdings” shall have the meaning provided in the recitals hereto.

          “Indemnitee” shall have the meaning provided in Section 8.1(a) of this
Agreement.

          “Instrument” shall mean “instruments” as such term is defined in the UCC as in effect
on the date hereof in the State of New York.

          “Inventory” shall mean merchandise, inventory and goods, and all additions,
substitutions and replacements thereof and all accessions thereto, wherever located, together with
all goods, supplies, incidentals, packaging materials, labels, materials and any other items used
or usable in manufacturing, processing, packaging or shipping same, in all stages of production
from raw materials through work in process to finished goods, and all products and proceeds of
whatever sort and wherever located any portion thereof which may be returned, rejected, reclaimed
or repossessed by the Collateral Agent from any Assignor’s customers, and shall specifically
include all “inventory” as such term is defined in the UCC as in effect on the date hereof in the
State of New York.

          “Investment Property” shall mean “investment property” as such term is defined in the
UCC as in effect on the date hereof in the State of New York.

          “Lender Creditors” shall have the meaning provided in the recitals of this Agreement.

          “Lenders” shall have the meaning provided in the recitals of this Agreement.

          “Letter-of-Credit Rights” shall mean “letter-of-credit rights” as such term is defined
in the UCC as in effect on the date hereof in the State of New York.

          “Marks” shall mean any trademarks, service marks and trade names owned by any
Assignor, including any registration or application for registration of any trademarks and service
marks owned by any Assignor, which are registered or filed in the United States Patent

 

 

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and Trademark Office or the equivalent thereof in any state of the United States or any
equivalent foreign office or agency, as well as any unregistered trademarks and service marks owned
by any Assignor and any trade dress owned by any Assignor.

     “Obligations” shall mean and include, as to any Assignor, all of the following:

     (i) the full and prompt payment when due (whether at stated maturity, by acceleration
or otherwise) of all obligations, liabilities and indebtedness (including, without
limitation, principal, premium, interest, reimbursement obligations (both actual and
contingent) under Letters of Credit, fees, cost and indemnities (including, in each case,
without limitation, all interest that accrues after the commencement of any case, proceeding
or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding
of any Assignor at the rate provided for in the respective documentation, whether or not a
claim for post-petition interest is allowed in any such proceeding) of such Assignor to the
Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in
connection with, the Credit Agreement and the other Credit Documents to which such Assignor
is a party (including, without limitation, in the event such Assignor is a Guarantor, all
such obligations, liabilities and indebtedness of such Assignor under its Guaranty) and the
due performance and compliance by such Assignor with all of the terms, conditions and
agreements contained in the Credit Agreement and in such other Credit Documents (all such
obligations, liabilities and indebtedness under this clause (i), except to the extent
consisting of obligations or indebtedness with respect to Interest Rate Protection
Agreements or Other Hedging Agreements, being herein collectively called the “Credit
Document Obligations”);

     (ii) the full and prompt payment when due (whether at stated maturity, by acceleration
or otherwise) of all obligations, liabilities and indebtedness (including, in each case,
without limitation, all interest that accrues after the commencement of any case, proceeding
or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding
of any Assignor at the rate provided for in the respective documentation, whether or not a
claim for post-petition interest is allowed in any such proceeding) owing by each Assignor
to the Other Creditors, now existing or hereafter incurred under, arising out of or in
connection with any Interest Rate Protection Agreement or Other Hedging Agreement, whether
such Interest Rate Protection Agreement or Other Hedging Agreement is now in existence or
hereinafter arising (including, without limitation, in the case of an Assignor that is a
Guarantor, all obligations, liabilities and indebtedness of such Assignor under its Guaranty
in respect of the Interest Rate Protection Agreements and Other Hedging Agreements), and the
due performance and compliance by such Assignor with all of the terms, conditions and
agreements contained in each such Interest Rate Protection Agreement and Other Hedging
Agreement (all such obligations, liabilities and indebtedness under this clause (ii) being
herein collectively called the “Other Obligations”);

     (iii) any and all sums advanced by the Collateral Agent in order to preserve the
Collateral or preserve its security interest in the Collateral;

 

 

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     (iv) in the event of any proceeding for the collection or enforcement of any
indebtedness, obligations, or liabilities of such Assignor referred to in clauses (i) and
(ii) above, after an Event of Default shall have occurred and be continuing, the reasonable
expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights
hereunder, together with reasonable attorneys’ fees and court costs; and

     (v) all amounts paid by any Indemnitee as to which such Indemnitee has the right to
reimbursement under Section 8.1 of this Agreement;

it being acknowledged and agreed that the “Obligations” shall include extensions of credit of the
types described above, whether outstanding on the date of this Agreement or extended from time to
time after the date of this Agreement.

          “Other Creditors” shall have the meaning provided in the recitals of this Agreement.

          “Other Obligations” shall have the meaning provided in the definition of “Obligations”
in this Article IX.

          “Patents” shall mean any United States or foreign patent owned by any Assignor, and
any divisions, continuations (including, but not limited to, continuations-in-parts) and
improvements thereof.

          “Permits” shall mean, to the extent permitted to be assigned by the terms thereof or
by applicable law, all licenses, permits, rights, orders, variances, franchises or authorizations
of or from any governmental authority or agency.

          “Primary Obligations” shall have the meaning provided in Section 7.4(b) of
this Agreement.

          “Pro Rata Share” shall have the meaning provided in Section 7.4(b) of this
Agreement.

          “Proceeds” shall mean all “proceeds” as such term is defined in the UCC as in effect
in the State of New York on the date hereof and, in any event, shall also include, but not be
limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to
the Collateral Agent or any Assignor from time to time with respect to any of the Collateral, (ii)
any and all payments (in any form whatsoever) made or due and payable to any Assignor from time to
time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all
or any part of the Collateral by any governmental authority (or any person acting under color of
governmental authority) and (iii) any and all other amounts from time to time paid or payable under
or in connection with any of the Collateral.

          “Registered Organization” shall have the meaning provided in the UCC as in effect in
the State of New York.

 

 

Page 26

          “Representative” shall have the meaning provided in Section 7.4(e) of
this Agreement.

          “Required Secured Creditors” shall mean (i) at any time when any Credit Document
Obligations are outstanding (other than contingent indemnity obligations that are not then due and
payable) or any Commitments or Letters of Credit under the Credit Agreement exist, the Required
Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders)
and (ii) at any time after all of the Credit Document Obligations have been paid in full in cash
(other than contingent indemnity obligations that are not then due and payable) and all Commitments
and Letters of Credit under the Credit Agreement have been terminated and no further Commitments or
Letters of Credit may be provided thereunder, the holders of a majority of the Other Obligations.

          “Requisite Creditors” shall have the meaning provided in Section 10.2 of this
Agreement.

          “Secondary Obligations” shall have the meaning provided in Section 7.4(b) of
this Agreement.

          “Secured Creditors” shall have the meaning provided in the recitals of this Agreement.

          “Secured Debt Agreements” shall mean and include (i) this Agreement and the other
Credit Documents and (ii) the Interest Rate Protection Agreements and Other Hedging Agreements
entered into with an Other Creditor.

          “Securities Accounts” shall mean all “securities accounts” as such term is defined in
the UCC as in effect on the date hereof in the State of New York.

          “Software” shall mean “software” as such term is defined in the UCC as in effect on
the date hereof in the State of New York.

          “Supporting Obligations” shall mean any “supporting obligation” as such term is
defined in the UCC as in effect on the date hereof in the State of New York, now or hereafter owned
by any Assignor, or in which any Assignor has any rights, and, in any event, shall include, but
shall not be limited to, all of such Assignor’s rights in any Letter-of-Credit Right or secondary
obligation that supports the payment or performance of, and all security for, any Account, Chattel
Paper, Document, General Intangible, Instrument or Investment Property.

          “Tangible Chattel Paper” shall mean “tangible chattel paper” as such term is defined
in the UCC as in effect on the date hereof in the State of New York.

          “Termination Date” shall have the meaning provided in Section 10.8(a) of this
Agreement.

          “Trade Secrets” shall mean any trade secrets or other proprietary and confidential
information including financial data, personal information, customer lists, supplier lists,
business

 

 

Page 27

plans, and data collections, to the extent each of the foregoing constitute trade secrets, to which
any Assignor has any right, title or interest therein.

          “Transmitting Utility” shall have the meaning given such term in Section 9-102(a)(80)
of the UCC.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the
relevant jurisdiction.

MISCELLANEOUS

          Notices. Except as otherwise specified herein, all notices, requests, demands or
other communications to or upon the respective parties hereto shall be sent or delivered by mail,
telecopy or courier service and all such notices and communications shall, when mailed, telecopied
or sent by courier, be effective when deposited in the mails, delivered to the overnight courier,
or sent by telecopier, except that notices and communications to the Collateral Agent or any
Assignor shall not be effective until received by the Collateral Agent or such Assignor, as the
case may be. All notices and other communications shall be in writing and addressed as follows:

	 	(a)	 	if to any Assignor, at:
	 
	 	 	 	c/o Town Sports International, LLC

5 Penn Plaza

4th Floor

New York, New York 10001

Attention: Dan Gallagher

Telephone No.: (212) 246-6700

Telecopier No.: (212) 246-8422

	 
	 	(b)	 	if to the Collateral Agent, at:

	 
	 	 	 	60 Wall Street

New York, New York 10005

Attention: Carin Keegan

Telephone No.: (212) 250-6083

Telecopier No.: (212) 250-5690

     (c) if to any Lender Creditor (other than the Collateral Agent), at such address as
such Lender Creditor shall have specified in the Credit Agreement;

     (d) if to any Other Creditor, at such address as such Other Creditor shall have
specified in writing to the Borrower and the Collateral Agent;

or at such other address or addressed to such other individual as shall have been furnished in
writing by any Person described above to the party required to give notice hereunder.

 

 

Page 28

          Waiver; Amendment. Except as provided in Sections 10.8 and 10.12
hereof and Section 13.12(c) of the Credit Agreement, none of the terms and conditions of
this Agreement or any other Security Document may be changed, waived, modified or varied in any
manner whatsoever unless in writing duly signed by each Assignor directly affected thereby (it
being understood that the addition or release of any Assignor hereunder shall not constitute a
change, waiver, discharge or termination affecting any Assignor other than the Assignor so added or
released) and the Collateral Agent (with the written consent of the Required Secured Creditors);
provided, however, (i) that any change, waiver, modification or variance affecting
the rights and benefits of a single Class of Secured Creditors (and not all Secured Creditors in a
like or similar manner) also shall require the written consent of the Requisite Creditors of such
affected Class, (ii) supplements to the Annexes hereto and to the other Security Documents may be
made without the consent of any Secured Creditor, other than the Collateral Agent, as provided
herein or therein, and (iii) Assignors may be released from their obligations hereunder and under
the other Security Documents and new Assignors may be added hereto and to the other Security
Documents without the consent of any Secured Creditors other than the Collateral Agent, as provided
herein or therein. For the purpose of this Agreement and each other Security Document, the term
“Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender
Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as the holders
of the Other Obligations. For the purpose of this Agreement, the term “Requisite
Creditors” of any Class shall mean each of (x) with respect to the Credit Document Obligations,
the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of
the Lenders), and (y) with respect to the Other Obligations, the holders of at least a majority of
all Other Obligations outstanding from time to time.

          Obligations Absolute. The obligations of each Assignor hereunder shall remain in full
force and effect without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency,
reorganization, arrangement, readjustment, composition, liquidation or the like of such Assignor;
(b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or
in respect of this Agreement or any other Secured Debt Agreement; or (c) any amendment to or
modification of any Secured Debt Agreement or any security for any of the Obligations; whether or
not such Assignor shall have notice or knowledge of any of the foregoing.

          Successors and Assigns. This Agreement shall create a continuing security interest in
the Collateral and shall (i) remain in full force and effect, subject to release and/or termination
as set forth in Section 10.8 hereof, (ii) be binding upon each Assignor, its successors and
assigns; provided, however, that no Assignor shall assign any of its rights or
obligations hereunder or under the other Credit Documents without the prior written consent of the
Collateral Agent (with the prior written consent of the Required Secured Creditors), and (iii)
inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of
the Collateral Agent, the other Secured Creditors and their respective successors, transferees and
assigns. All agreements, statements, representations and warranties made by each Assignor herein or
in any certificate or other instrument delivered by such Assignor or on its behalf under this
Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive
the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of
any investigation made by the Secured Creditors or on their behalf.

 

 

Page 29

          Headings Descriptive. The headings of the several sections of this Agreement are
inserted for convenience only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

          GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE
WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK IN EACH CASE WHICH ARE
LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR
HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH ASSIGNOR HEREBY FURTHER
IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH ASSIGNOR,
AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS
PERSONAL JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT
ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 10.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE
30 DAYS AFTER SUCH MAILING. EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE
OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR
PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS
IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN, HOWEVER, SHALL AFFECT THE RIGHT OF THE
COLLATERAL AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY ASSIGNOR
IN ANY OTHER JURISDICTION.

          (b) EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH
COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

 

 

Page 30

          (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          Assignor’s Duties. It is expressly agreed, anything herein contained to the contrary
notwithstanding, that, prior to the Termination Date, each Assignor shall remain liable to perform
all of the obligations, if any, assumed by it with respect to the Collateral and, except as
otherwise provided in Section 10.11 hereof, the Collateral Agent shall not have any
obligations or liabilities with respect to any Collateral by reason of or arising out of this
Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform or
fulfill any of the obligations of any Assignor under or with respect to any Collateral.

          Termination; Release. (a) After the Termination Date, this Agreement shall terminate
(provided that all indemnities set forth herein including, without limitation in Section
8.1 hereof, shall survive such termination) and the Collateral Agent, at the request and
expense of the respective Assignor, will promptly execute and deliver to such Assignor a proper
instrument or instruments (including UCC termination statements on form UCC-3) acknowledging the
satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such
Assignor (without recourse and without any representation or warranty) such of the Collateral as
may be in the possession of the Collateral Agent and as has not theretofore been sold or otherwise
applied or released pursuant to this Agreement. As used in this Agreement, “Termination
Date” shall mean the date upon which both (A) the Total Commitment under the Credit Agreement
has been terminated, no Note under the Credit Agreement is outstanding and all Loans thereunder
have been repaid in full, all Letters of Credit issued under the Credit Agreement have been
terminated and all other Credit Document Obligations then due and payable have been paid in full
and (B) unless the respective Interest Rate Protection Agreements and Other Hedging Agreements
specifically provide otherwise, all Interest Rate Protection Agreements and Other Hedging
Agreements entered into with any Other Creditor have been terminated and all Other Obligations then
due and payable have been paid in full.

          (b) In the event that any part of the Collateral is sold or otherwise disposed of (to a Person
other than a Credit Party in accordance with the Credit Agreement) or any other transaction
expressly permitted by the Credit Agreement requires a release of the relevant Collateral (x) at
any time prior to the time at which all Credit Document Obligations have been paid in full and all
Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection
with a sale or disposition permitted by the Secured Debt Agreements or is otherwise released at the
direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit
Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt
Agreements, and in the case of clauses (x) and (y), the proceeds of such sale or other disposition
(or from such release) are applied in accordance with the terms of the Credit Agreement or such
other Secured Debt Agreements, as the case may be, to the extent required to be so applied, the
Collateral Agent, at the request and expense of such Assignor, will duly release from the security
interest created hereby (and will execute and deliver such documentation, including termination or
partial release statements and the like in connection

 

 

Page 31

therewith) and assign, transfer and deliver to such Assignor (without recourse and without any
representation or warranty) such of the Collateral as is then being (or has been) so sold or
otherwise disposed of, or released, and as may be in the possession of the Collateral Agent and has
not theretofore been released pursuant to this Agreement. Furthermore, upon the release of any
Subsidiary Guarantor from the Subsidiaries Guaranty in accordance with the provisions thereof, such
Assignor (and the Collateral at such time assigned by the respective Assignor pursuant hereto)
shall be released from this Agreement.

          (c) At any time that an Assignor desires that the Collateral Agent take any action to
acknowledge or give effect to any release of Collateral pursuant to the foregoing Section
10.8(a) or (b), such Assignor shall deliver to the Collateral Agent a certificate
signed by a senior officer of such Assignor stating that the release of the respective Collateral
is permitted pursuant to such Section 10.8(a) or (b). At any time that the
Borrower or the respective Assignor desires that a Subsidiary of the Borrower which has been
released from the Subsidiaries Guaranty be released hereunder as provided in the last sentence of
Section 10.8(b) hereof, it shall deliver to the Collateral Agent a certificate signed by a
principal executive officer of the Borrower and the respective Assignor stating that the release of
the respective Assignor (and its Collateral) is permitted pursuant to such Section 10.8(b).

          (d) The Collateral Agent shall have no liability whatsoever to any other Secured Creditor as
the result of any release of Collateral by it in accordance with (or which the Collateral Agent in
the absence of gross negligence and willful misconduct believes to be in accordance with) this
Section 10.8.

          Counterparts. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all of which shall together constitute one and the same instrument. A
set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the
Collateral Agent.

          Severability. Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

          The Collateral Agent and the other Secured Creditors. The Collateral Agent will hold
in accordance with this Agreement all items of the Collateral at any time received under this
Agreement. It is expressly understood and agreed that the obligations of the Collateral Agent as
holder of the Collateral and interests therein and with respect to the disposition thereof, and
otherwise under this Agreement, are only those expressly set forth in this Agreement and in Section
12 of the Credit Agreement. The Collateral Agent shall act hereunder on the terms and conditions
set forth herein and in Section 12 of the Credit Agreement.

          Additional Assignors. It is understood and agreed that any Subsidiary Guarantor that
desires to become an Assignor hereunder, or is required to execute a counterpart of this Agreement
after the date hereof pursuant to the respective Secured Debt Agreements, shall

 

 

Page 32

become an Assignor hereunder by executing a counterpart hereof and delivering same to the
Collateral Agent, or by executing a Joinder Agreement, (y) delivering supplements to Annexes
A through G, inclusive, hereto as are necessary to cause such Annexes to be complete
and accurate with respect to such additional Assignor on such date, and (z) taking all actions as
specified in this Agreement as would have been taken by such Assignor had it been an original party
to this Agreement, in each case with all documents required above to be delivered to the Collateral
Agent and with all documents and actions required above to be taken to the reasonable satisfaction
of the Collateral Agent.

[Remainder of this page intentionally left blank; signature page follows]

 

 

Page 33

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

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL, LLC,

                     as an Assignor

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.,

    as an Assignor

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 TSI 217 BROADWAY, LLC

TSI ALEXANDRIA, LLC

TSI ALEXANDRIA WEST, LLC

TSI ALLSTON, LLC

TSI ANDOVER, LLC

TSI ARDMORE, LLC

TSI ARTHRO-FITNESS SERVICES, LLC

TSI ASTORIA, LLC

TSI BATTERY PARK, LLC

TSI BETHESDA, LLC

TSI BAYONNE, LLC

TSI BAY RIDGE 86TH STREET, LLC

TSI BAYONNE, LLC

TSI BAYRIDGE, LLC

TSI BENSONHURST, LLC

TSI BOYLSTON, LLC

TSI BROADWAY, LLC

TSI BROOKLYN BELT, LLC

TSI BRUNSWICK, LLC

TSI BULFINCH, LLC

TSI BUTLER, LLC

TSI CARMEL, LLC

TSI CASH MANAGEMENT, LLC

TSI CENTRAL SQUARE, LLC

TSI CHERRY HILL, LLC

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

Page 34

	 	 	 	 	 
	 	 TSI CHEVY CHASE, LLC

TSI CLARENDON, LLC

TSI CLIFTON, LLC

TSI COBBLE HILL, LLC

TSI COLONIA, LLC

TSI COLUMBIA HEIGHTS, LLC

TSI COMMACK, LLC

TSI CONNECTICUT AVENUE, LLC

TSI COURT STREET, LLC

TSI CROTON, LLC

TSI DANBURY, LLC

TSI DAVIS SQUARE, LLC

TSI DEDHAM, LLC

TSI DEER PARK, LLC

TSI DOBBS FERRY, LLC

TSI DOWNTOWN CROSSING, LLC

TSI DUPONT CIRCLE, INC.

TSI DUPONT II, INC.

TSI EAST 23, LLC

TSI EAST 31, LLC

TSI EAST 34, LLC

TSI EAST 36, LLC

TSI EAST 41, LLC

TSI EAST 48, LLC

TSI EAST 51, LLC

TSI EAST 59, LLC

TSI EAST 76, LLC

TSI EAST 86, LLC

TSI EAST 91, LLC

TSI EAST BRUNSWICK, LLC

TSI EAST MEADOW, LLC

TSI ENGLEWOOD, LLC

TSI F STREET, LLC

TSI FAIRFAX, LLC

TSI FENWAY, LLC

TSI FIRST AVENUE, LLC

TSI FOREST HILLS, LLC

TSI FORT LEE, LLC

TSI FRAMINGHAM, LLC

TSI FRANKLIN (MA), LLC

TSI FRANKLIN PARK, LLC

TSI FREEHOLD, LLC

TSI GALLERY PLACE, LLC

TSI GARDEN CITY, LLC

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

Page 35

	 	 	 	 	 
	 	 TSI GARNERVILLE, LLC

TSI GEORGETOWN, LLC

TSI GERMANTOWN, LLC

TSI GLENDALE, LLC

TSI GLOVER, LLC

TSI GRAND CENTRAL, LLC

TSI GREAT NECK, LLC

TSI GREENWICH, LLC,

TSI HARTSDALE, LLC

TSI HAWTHORNE, LLC

TSI HERALD, LLC

TSI HICKSVILLE, LLC

TSI HIGHPOINT, LLC

TSI HOBOKEN, LLC

TSI HOBOKEN NORTH, LLC

TSI HOLDINGS (CIP), LLC

TSI HOLDINGS (DC), LLC

TSI HOLDINGS (IP), LLC

TSI HOLDINGS (MA), LLC

TSI HOLDINGS (MD), LLC

TSI HOLDINGS (NJ), LLC

TSI HOLDINGS (PA), LLC

TSI HOLDINGS (VA), LLC

TSI HUNTINGTON, LLC

TSI INTERNATIONAL, INC.

TSI IRVING PLACE, LLC

TSI JAMAICA ESTATES, LLC

TSI JERSEY CITY, LLC

TSI K STREET, LLC

TSI LARCHMONT, LLC

TSI LEXINGTON (MA), LLC

TSI LINCOLN, LLC

TSI LIVINGSTON, LLC

TSI LONG BEACH, LLC

TSI LYNNFIELD, LLC

TSI M STREET, LLC

TSI MAHWAH, LLC

TSI MAMARONECK, LLC

TSI MARKET STREET, LLC

TSI MARLBORO, LLC

TSI MATAWAN, LLC

TSI MERCER STREET, LLC

TSI MIDWOOD, LLC

TSI MONTCLAIR, LLC

TSI MORRIS PARK, LLC

TSI MURRAY HILL, LLC

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

Page 36

	 	 	 	 	 
	 	TSI NANUET, LLC

TSI NATICK, LLC

TSI NEW ROCHELLE, LLC

TSI NEWARK, LLC

TSI NEWBURY STREET, LLC

TSI NEWTON, LLC

TSI NO SWEAT, LLC

TSI NORTH BETHESDA, LLC

TSI NORWALK, LLC

TSI OCEANSIDE, LLC

TSI OLD BRIDGE, LLC

TSI PARSIPPANY, LLC

TSI PLAINSBORO, LLC

TSI PORT JEFFERSON, LLC

TSI PRINCETON, LLC

TSI PRINCETON NORTH, LLC

TSI PROVIDENCE DOWNTOWN, LLC

TSI PROVIDENCE EASTSIDE, LLC

TSI RADNOR, LLC

TSI RAMSEY, LLC

TSI READE STREET, LLC

TSI REGO PARK, LLC

TSI RIDGEWOOD, LLC

TSI RODIN PLACE, LLC

TSI SCARSDALE, LLC

TSI SEAPORT, LLC

TSI SHERIDAN, LLC

TSI SILVER SPRING, LLC

TSI SMITHTOWN, LLC

TSI SOCIETY HILL, LLC

TSI SOHO, LLC

TSI SOMERS, LLC

TSI SOMERSET, LLC

TSI SOUTH BETHESDA, LLC

TSI SOUTH END, LLC

TSI SOUTH PARK SLOPE, LLC

TSI SOUTH STATION, LLC

TSI SPRINGFIELD, LLC

TSI STAMFORD DOWNTOWN, LLC

TSI STAMFORD POST, LLC

TSI STAMFORD RINKS, LLC

TSI STATEN ISLAND, LLC

TSI STERLING, LLC

TSI SUNNYSIDE, LLC

TSI SYOSSET, LLC,

TSI UNIVERSITY MANAGEMENT, LLC

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

Page 37

	 	 	 	 	 
	 	TSI VARICK STREET, LLC

TSI WALL STREET, LLC

TSI WALTHAM, LLC

TSI WASHINGTON, INC.

TSI WATER STREET, LLC

TSI WATERTOWN, LLC

TSI WAYLAND, LLC

TSI WELLESLEY, LLC

TSI WELLINGTON CIRCLE, LLC

TSI WEST 14, LLC

TSI WEST 16, LLC

TSI WEST 23, LLC

TSI WEST 38, LLC

TSI WEST 41, LLC

TSI WEST 44, LLC

TSI WEST 48, LLC

TSI WEST 52, LLC

TSI WEST 73, LLC

TSI WEST 76, LLC

TSI WEST 80, LLC

TSI WEST 94, LLC

TSI WEST 115TH STREET, LLC

TSI WEST 125, LLC

TSI WEST 145TH STREET, LLC

TSI WEST CALDWELL, LLC

TSI WEST HARTFORD, LLC

TSI WEST NEWTON, LLC

TSI WEST NYACK, LLC

TSI WEST SPRINGFIELD, LLC

TSI WESTBOROUGH, LLC

TSI WESTPORT, LLC

TSI WESTWOOD, LLC

TSI WEYMOUTH, LLC

TSI WHITE PLAINS, LLC

TSI WHITE PLAINS CITY CENTER, LLC

TSI WHITESTONE, LLC

TSI WOBURN, LLC

TSI WOODMERE, LLC,

                    each as an Assignor

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Page 38

Accepted and Agreed to:

DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Collateral Agent

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

 

ANNEX A

to

SECURITY AGREEMENT

SCHEDULE OF CHIEF EXECUTIVE OFFICES

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	Town Sports International Holdings, Inc.

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	Town Sports International, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI 217 Broadway, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Alexandria, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Alexandria West, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Allston, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Andover, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Ardmore, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Arthro-Fitness Services, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Astoria, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Battery Park, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bay Ridge 86th Street, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bayonne, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bayridge, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bensonhurst, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bethesda, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI Boylston, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Broadway, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Brooklyn Belt, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Brunswick, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Bulfinch, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Butler, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Carmel, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Cash Management, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Central Square, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Cherry Hill, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Chevy Chase, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Clarendon, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Clifton, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Cobble Hill, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Colonia, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Columbia Heights, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Commack, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Connecticut Avenue, LLC

	 	5 Penn Plaza, 4th Floor

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	 

	 	New York, NY 10001
	 
	 	 
	TSI Court Street, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Croton, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Danbury, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Davis Square, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Dedham, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Deer Park, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Dobbs Ferry, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Downtown Crossing, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Dupont Circle, Inc.

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Dupont II, Inc.

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East Brunswick, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East Meadow, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 23, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 31, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 34, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 36, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 41, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI East 48, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 51, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 59, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 76, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 86, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI East 91, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Englewood, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI F Street, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Fairfax, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Fenway, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI First Avenue, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Forest Hills, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Fort Lee, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Framingham, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Franklin (MA), LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Franklin Park, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Freehold, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001
	 
	 	 
	TSI Gallery Place, LLC

	 	5 Penn Plaza, 4th Floor
	 

	 	New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI Garden City, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Garnersville, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Georgetown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Germantown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Glendale, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Glover, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Grand Central, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Great Neck, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Greenwich, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Hartsdale, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Hawthorne, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Herald, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Hicksville, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Highpoint, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Hoboken, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Hoboken North, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	 
	 	 
	TSI Holdings (CIP), LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (DC), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (MA), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (MD), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (NJ), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (PA), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Holdings (VA), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Huntington, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI International, Inc.
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Irving Place, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Jamaica Estates, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Jersey City, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI K Street, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Larchmont, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Lexington (MA), LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Lincoln, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Livingston, LLC
	 	New York, NY 10001
	 
	 	 
	 
	 	5 Penn Plaza, 4th Floor
	TSI Long Beach, LLC
	 	New York, NY 10001
	 
	 	 
	TSI Lynnfield, LLC
	 	5 Penn Plaza, 4th Floor
	 
	 	New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	 

	 	New York, NY 10001
	TSI M Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Mahwah, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Mamaroneck, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Market Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Marlboro, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Matawan, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Mercer Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Midwood, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Montclair, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Morris Park, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Murray Hill, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Nanuet, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Natick, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI New Rochelle, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Newark, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Newbury Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Newton, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI No Sweat, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI North Bethesda, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Norwalk, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Oceanside, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Old Bridge, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Parsippany, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Plainsboro, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Port Jefferson, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Princeton, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Princeton North, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Providence Downtown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Providence Eastside, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Radnor, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Ramsey, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Reade Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Rego Park, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Ridgewood, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Rodin Place, LLC

	 	5 Penn Plaza, 4th Floor

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	 

	 	New York, NY 10001
	TSI Scarsdale, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Seaport, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Sheridan, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Silver Spring, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Smithtown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Society Hill, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Soho, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Somers, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Somerset, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI South Bethesda, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI South End, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI South Park Slope, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI South Station, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Springfield, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Stamford Downtown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Stamford Post, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Stamford Rinks, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI Staten Island, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Sterling, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Sunnyside, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Syosset, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI University Management, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Varick Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Wall Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Waltham, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Washington, Inc.

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Water Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Watertown, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Wayland, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Wellesley, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Wellington Circle, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West Caldwell, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West Hartford, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West Newton, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West Nyack, LLC

	 	5 Penn Plaza, 4th Floor

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	 

	 	New York, NY 10001
	TSI West Springfield, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 14, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 16, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 23, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 38, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 41, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 44, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 48, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 52, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 73, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 76, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 80, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 94, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 115th Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 125, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI West 145th Street, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Westborough, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001

 

 

	 	 	 
	Name of Assignor	 	Address(es) of Chief Executive Office
	TSI Westport, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Westwood, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Weymouth, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI White Plains City Center, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI White Plains, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Whitestone, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Woburn, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001
	TSI Woodmere, LLC

	 	5 Penn Plaza, 4th Floor

New York, NY 10001

 

 

ANNEX B

to

SECURITY AGREEMENT

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION

(AND WHETHER A REGISTERED ORGANIZATION AND/OR

A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION

AND ORGANIZATIONAL IDENTIFICATION NUMBERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Town Sports International Holdings, Inc.

	 	Corporation
	 	Yes
	 	Delaware
	 	 	3754592	 	 	No
	Town Sports International, LLC

	 	Limited Liability Company
	 	Yes
	 	New York
	 	None
	 	No
	TSI 217 Broadway, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268991	 	 	No
	TSI Alexandria, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2901743	 	 	No
	TSI Alexandria West, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4330291	 	 	No
	TSI Allston, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3899539	 	 	No
	TSI Andover, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269134	 	 	No
	TSI Ardmore, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3387908	 	 	No
	TSI Arthro-Fitness Services, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268994	 	 	No
	TSI Astoria, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268995	 	 	No
	TSI Battery Park, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268998	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	TSI Bay Ridge 86th Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269108	 	 	No
	TSI Bayonne, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4536496	 	 	No
	TSI Bayridge, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269001	 	 	No
	TSI Bensonhurst, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4416091	 	 	No
	TSI Bethesda, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3018449	 	 	No
	TSI Boylston, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269330	 	 	No
	TSI Broadway, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269002	 	 	No
	TSI Brooklyn Belt, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269004	 	 	No
	TSI Brunswick, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4282150	 	 	No
	TSI Bulfinch, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3899536	 	 	No
	TSI Butler, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4239615	 	 	No
	TSI Carmel, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269111	 	 	No
	TSI Cash Management, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269009	 	 	No
	TSI Central Square, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3899543	 	 	No
	TSI Cherry Hill, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3040637	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Chevy Chase, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269632	 	 	No
	TSI Clarendon, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3317876	 	 	No
	TSI Clifton, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4195613	 	 	No
	TSI Cobble Hill, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269013	 	 	No
	TSI Colonia, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928572	 	 	No
	TSI Columbia Heights, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269691	 	 	No
	TSI Commack, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269015	 	 	No
	TSI Connecticut Avenue, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269736	 	 	No
	TSI Court Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269017	 	 	No
	TSI Croton, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269019	 	 	No
	TSI Danbury, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269758	 	 	No
	TSI Davis Square, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4160261	 	 	No
	TSI Dedham, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4510871	 	 	No
	TSI Deer Park, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4364946	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Dobbs Ferry, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269114	 	 	No
	TSI Downtown Crossing, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269741	 	 	No
	TSI Dupont Circle, Inc.

	 	Corporation
	 	Yes
	 	Delaware
	 	 	2220114	 	 	No
	TSI Dupont II, Inc.

	 	Corporation
	 	Yes
	 	Delaware
	 	 	2439444	 	 	No
	TSI East 23, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269027	 	 	No
	TSI East 31, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269030	 	 	No
	TSI East 34, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269032	 	 	No
	TSI East 36, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269035	 	 	No
	TSI East 41, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269039	 	 	No
	TSI East 48, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269115	 	 	No
	TSI East 51, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269041	 	 	No
	TSI East 59, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269047	 	 	No
	TSI East 76, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269049	 	 	No
	TSI East 86, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269119	 	 	No
	TSI East 91, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269051	 	 	No
	TSI East Brunswick, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4343405	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI East Meadow, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269024	 	 	No
	TSI Englewood, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4099792	 	 	 
	TSI F Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269753	 	 	No
	TSI Fairfax, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2951887	 	 	No
	TSI Fenway, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3899546	 	 	No
	TSI First Avenue, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269053	 	 	No
	TSI Forest Hills, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269055	 	 	No
	TSI Fort Lee, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2900457	 	 	No
	TSI Framingham, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269136	 	 	No
	TSI Franklin (MA), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269138	 	 	No
	TSI Franklin Park, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928574	 	 	No
	TSI Freehold, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3057259	 	 	No
	TSI Gallery Place, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269770	 	 	No
	TSI Garden City, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269057	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Garnerville, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4376082	 	 	No
	TSI Georgetown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269763	 	 	No
	TSI Germantown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2916539	 	 	No
	TSI Glendale, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269128	 	 	No
	TSI Glover, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269240	 	 	No
	TSI Grand Central, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269060	 	 	No
	TSI Great Neck, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269061	 	 	No
	TSI Greenwich, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269761	 	 	No
	TSI Hartsdale, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269062	 	 	No
	TSI Hawthorne, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269066	 	 	No
	TSI Herald, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269068	 	 	No
	TSI Hicksville, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4257117	 	 	No
	TSI Highpoint, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3140945	 	 	No
	TSI Hoboken, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3057253	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Hoboken North, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3773429	 	 	No
	TSI Holdings (CIP), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269773	 	 	No
	TSI Holdings (DC), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268598	 	 	No
	TSI Holdings (MA), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268036	 	 	No
	TSI Holdings (MD), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268623	 	 	No
	TSI Holdings (NJ), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3744923	 	 	No
	TSI Holdings (PA), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268627	 	 	No
	TSI Holdings (VA), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268618	 	 	No
	TSI Huntington, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268974	 	 	No
	TSI International, Inc.

	 	Corporation
	 	Yes
	 	Delaware
	 	 	2141083	 	 	No
	TSI Irving Place, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268978	 	 	No
	TSI Jamaica Estates, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4402223	 	 	No
	TSI Jersey City, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3525625	 	 	No
	TSI K Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269781	 	 	No
	TSI Larchmont, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268983	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Lexington (MA), LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269142	 	 	No
	TSI Lincoln, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268985	 	 	No
	TSI Livingston, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3305800	 	 	No
	TSI Long Beach, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268987	 	 	No
	TSI Lynnfield, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269143	 	 	No
	TSI M Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269776	 	 	No
	TSI Mahwah, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2905457	 	 	No
	TSI Mamaroneck, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268989	 	 	No
	TSI Market Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3123380	 	 	No
	TSI Marlboro, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3057264	 	 	No
	TSI Matawan, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3057208	 	 	No
	TSI Mercer Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268990	 	 	No
	TSI Midwood, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4268993	 	 	No
	TSI Montclair, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3235308	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Morris Park, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269130	 	 	No
	TSI Murray Hill, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269000	 	 	No
	TSI Nanuet, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269005	 	 	No
	TSI Natick, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269786	 	 	No
	TSI New Rochelle, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4290057	 	 	No
	TSI Newark, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3548397	 	 	No
	TSI Newbury Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269793	 	 	No
	TSI Newton, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4188428	 	 	No
	TSI No Sweat, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4071998	 	 	No
	TSI North Bethesda, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3018427	 	 	No
	TSI Norwalk, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269791	 	 	No
	TSI Oceanside, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269012	 	 	No
	TSI Old Bridge, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3057213	 	 	No
	TSI Parsippany, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928568	 	 	No
	TSI Plainsboro, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928573	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Port Jefferson, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269018	 	 	No
	TSI Princeton, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2750867	 	 	No
	TSI Princeton North, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3946066	 	 	No
	TSI Providence Downtown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4411647	 	 	No
	TSI Providence Eastside, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4411648	 	 	No
	TSI Radnor, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4034032	 	 	No
	TSI Ramsey, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3138497	 	 	No
	TSI Reade Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269021	 	 	No
	TSI Rego Park, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269031	 	 	No
	TSI Ridgewood, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3386883	 	 	No
	TSI Rodin Place, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3026591	 	 	No
	TSI Scarsdale, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269037	 	 	No
	TSI Seaport, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269040	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Sheridan, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269043	 	 	No
	TSI Silver Spring, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3296686	 	 	No
	TSI Smithtown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269048	 	 	No
	TSI Society Hill, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3026597	 	 	No
	TSI Soho, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269052	 	 	No
	TSI Somers, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269058	 	 	No
	TSI Somerset, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928575	 	 	No
	TSI South Bethesda, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3854033	 	 	No
	TSI South End, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269795	 	 	No
	TSI South Park Slope, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269064	 	 	No
	TSI South Station, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269797	 	 	No
	TSI Springfield, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928570	 	 	No
	TSI Stamford Downtown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269799	 	 	No
	TSI Stamford Post, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269803	 	 	No
	TSI Stamford Rinks, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269807	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI Staten Island, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269070	 	 	No
	TSI Sterling, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2978316	 	 	No
	TSI Sunnyside, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4324681	 	 	No
	TSI Syosset, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269074	 	 	No
	TSI University Management, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269811	 	 	No
	TSI Varick Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269076	 	 	No
	TSI Wall Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269078	 	 	No
	TSI Waltham, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3584187	 	 	No
	TSI Washington, Inc.

	 	Corporation
	 	Yes
	 	Delaware
	 	 	2195425	 	 	No
	TSI Water Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269087	 	 	No
	TSI Watertown, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269336	 	 	No
	TSI Wayland, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4554568	 	 	No
	TSI Wellesley, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269148	 	 	No
	TSI Wellington Circle, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4160262	 	 	No
	TSI West 14, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269093	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI West 16, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269096	 	 	No
	TSI West 23, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269098	 	 	No
	TSI West 38, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269038	 	 	No
	TSI West 41, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269045	 	 	No
	TSI West 44, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269054	 	 	No
	TSI West 48, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269067	 	 	No
	TSI West 52, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269073	 	 	No
	TSI West 73, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269077	 	 	No
	TSI West 76, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269080	 	 	No
	TSI West 80, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269085	 	 	No
	TSI West 94, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269086	 	 	No
	TSI West 115th Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269131	 	 	No
	TSI West 125, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269090	 	 	No
	TSI West 145th Street, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4239620	 	 	No

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	Assignor’s	 	 	 	 	 	 
	 	 	Organization	 	 	 	 	 	Organization	 	 	 	 	 	 
	 	 	(or, if the	 	Registered	 	 	 	Identification	 	Transmit	 	 	 	 
	 	 	Assignor is an	 	Organiza	 	 	 	Number	 	ting	 	 	 	 
	Exact Legal Name of	 	Individual, so	 	tion?	 	Jurisdiction of	 	(or, if none, so	 	Utility?	 	 	 	 
	Each Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	indicate)	 	(Yes/No)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TSI West Caldwell, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	2928566	 	 	No
	TSI West Hartford, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4411640	 	 	No
	TSI West Newton, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269593	 	 	No
	TSI West Nyack, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269089	 	 	No
	TSI West Springfield, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3131927	 	 	No
	TSI Westborough, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4311117	 	 	No
	TSI Westport, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269809	 	 	No
	TSI Westwood, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	3478988	 	 	No
	TSI Weymouth, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269814	 	 	No
	TSI White Plains City Center, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269095	 	 	No
	TSI White Plains, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269100	 	 	No
	TSI Whitestone, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269102	 	 	No
	TSI Woburn, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4411649	 	 	No
	TSI Woodmere, LLC

	 	Limited Liability Company
	 	Yes
	 	Delaware
	 	 	4269106	 	 	No

 

ANNEX C

to

SECURITY AGREEMENT

SCHEDULE OF TRADE AND FICTITIOUS NAMES

The Company and its Subsidiaries operate fitness clubs under the names “New York Sports Clubs”,
“Washington Sports Clubs”, “Boston Sports Club”, and “Philadelphia Sports Clubs” and use the
abbreviations “NYSC”, “WSC”, “BSC” and “PSC”, respectively, generally within an oval logo. Set out
below is a list of the Company and its Subsidiaries and the trade or fictitious name(s) each
operates under:

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	Town Sports International, LLC

	 	None
	TSI 217 Broadway, LLC

	 	NYSC
	TSI Alexandria, LLC

	 	WSC
	TSI Alexandria West, LLC

	 	None
	TSI Allston, LLC

	 	BSC
	TSI Andover, LLC

	 	BSC
	TSI Ardmore, LLC

	 	PSC
	TSI Arthro-Fitness Services, LLC

	 	NYSC
	TSI Astoria, LLC

	 	NYSC
	TSI Battery Park, LLC

	 	NYSC
	TSI Bay Ridge 86th Street, LLC

	 	NYSC
	TSI Bayonne, LLC

	 	NYSC
	TSI Bayridge, LLC

	 	NYSC
	TSI Bensonhurst, LLC

	 	NYSC
	TSI Bethesda, LLC

	 	WSC
	TSI Boylston, LLC

	 	BSC
	TSI Broadway, LLC

	 	NYSC
	TSI Brooklyn Belt, LLC

	 	NYSC
	TSI Brunswick, LLC

	 	NYSC
	TSI Bulfinch, LLC

	 	BSC
	TSI Butler, LLC

	 	NYSC
	TSI Carmel, LLC

	 	NYSC
	TSI Cash Management, LLC

	 	None

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Central Square, LLC

	 	BSC
	TSI Cherry Hill, LLC

	 	PSC
	TSI Chevy Chase, LLC

	 	WSC
	TSI Clarendon, LLC

	 	WSC
	TSI Clifton, LLC

	 	NYSC
	TSI Cobble Hill, LLC

	 	NYSC
	TSI Colonia, LLC

	 	NYSC
	TSI Columbia Heights, LLC

	 	WSC
	TSI Commack, LLC

	 	NYSC
	TSI Connecticut Avenue, LLC

	 	WSC
	TSI Court Street, LLC

	 	NYSC
	TSI Croton, LLC

	 	NYSC
	TSI Danbury, LLC

	 	NYSC
	TSI Davis Square, LLC

	 	BSC
	TSI Dedham, LLC

	 	BSC
	TSI Deer Park, LLC

	 	NYSC
	TSI Dobbs Ferry, LLC

	 	NYSC
	TSI Downtown Crossing, LLC

	 	BSC
	TSI Dupont Circle, Inc.

	 	None
	TSI Dupont II, Inc.

	 	None
	TSI East Brunswick, LLC

	 	NYSC
	TSI East Meadow, LLC

	 	NYSC
	TSI East 23, LLC

	 	NYSC
	TSI East 31, LLC

	 	NYSC
	TSI East 34, LLC

	 	NYSC
	TSI East 36, LLC

	 	NYSC
	TSI East 41, LLC

	 	NYSC
	TSI East 48, LLC

	 	NYSC
	TSI East 51, LLC

	 	NYSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI East 59, LLC

	 	NYSC
	TSI East 76, LLC

	 	NYSC
	TSI East 86, LLC

	 	NYSC
	TSI East 91, LLC

	 	NYSC
	TSI Englewood, LLC

	 	NYSC
	TSI F Street, LLC

	 	WSC
	TSI Fairfax, LLC

	 	WSC
	TSI Fenway, LLC

	 	BSC
	TSI First Avenue, LLC

	 	NYSC
	TSI Forest Hills, LLC

	 	NYSC
	TSI Fort Lee, LLC

	 	NYSC
	TSI Framingham, LLC

	 	BSC
	TSI Franklin (MA), LLC

	 	BSC
	TSI Franklin Park, LLC

	 	NYSC
	TSI Freehold, LLC

	 	NYSC
	TSI Gallery Place, LLC

	 	WSC
	TSI Garden City, LLC

	 	NYSC
	TSI Garnerville, LLC

	 	NYSC
	TSI Georgetown, LLC

	 	WSC
	TSI Germantown, LLC

	 	WSC
	TSI Glendale, LLC

	 	NYSC
	TSI Glover, LLC

	 	WSC
	TSI Grand Central, LLC

	 	NYSC
	TSI Great Neck, LLC

	 	NYSC
	TSI Greenwich, LLC

	 	NYSC
	TSI Hartsdale, LLC

	 	NYSC
	TSI Hawthorne, LLC

	 	NYSC
	TSI Herald, LLC

	 	NYSC
	TSI Hicksville, LLC

	 	NYSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Highpoint, LLC

	 	PSC
	TSI Hoboken, LLC

	 	NYSC
	TSI Hoboken North, LLC

	 	NYSC
	TSI Holdings (CIP), LLC

	 	None
	TSI Holdings (DC), LLC

	 	None
	TSI Holdings (MA), LLC

	 	None
	TSI Holdings (MD), LLC

	 	None
	TSI Holdings (NJ), LLC

	 	None
	TSI Holdings (PA), LLC

	 	None
	TSI Holdings (VA), LLC

	 	None
	TSI Huntington, LLC

	 	NYSC
	TSI International, Inc.

	 	None
	TSI Irving Place, LLC

	 	NYSC
	TSI Jamaica Estates, LLC

	 	NYSC
	TSI Jersey City, LLC

	 	NYSC
	TSI K Street, LLC

	 	WSC
	TSI Larchmont, LLC

	 	NYSC
	TSI Lexington (MA), LLC

	 	BSC
	TSI Lincoln, LLC

	 	NYSC
	TSI Livingston, LLC

	 	NYSC
	TSI Long Beach, LLC

	 	NYSC
	TSI Lynnfield, LLC

	 	BSC
	TSI M Street, LLC

	 	WSC
	TSI Mahwah, LLC

	 	NYSC
	TSI Mamaroneck, LLC

	 	NYSC
	TSI Market Street, LLC

	 	PSC
	TSI Marlboro, LLC

	 	NYSC
	TSI Matawan, LLC

	 	NYSC
	TSI Mercer Street, LLC

	 	NYSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Midwood, LLC

	 	NYSC
	TSI Montclair, LLC

	 	NYSC
	TSI Morris Park, LLC

	 	NYSC
	TSI Murray Hill, LLC

	 	NYSC
	TSI Nanuet, LLC

	 	NYSC
	TSI Natick, LLC

	 	BSC
	TSI New Rochelle, LLC

	 	NYSC
	TSI Newark, LLC

	 	NYSC
	TSI Newbury Street, LLC

	 	BSC
	TSI Newton, LLC

	 	BSC
	TSI No Sweat, LLC

	 	No Sweat
	TSI North Bethesda, LLC

	 	WSC
	TSI Norwalk, LLC

	 	NYSC
	TSI Oceanside, LLC

	 	NYSC
	TSI Old Bridge, LLC

	 	NYSC
	TSI Parsippany, LLC

	 	NYSC
	TSI Plainsboro, LLC

	 	NYSC
	TSI Port Jefferson, LLC

	 	NYSC
	TSI Princeton, LLC

	 	NYSC
	TSI Princeton North, LLC

	 	NYSC
	TSI Providence Downtown, LLC

	 	BSC I
	TSI Providence Eastside, LLC

	 	BSC II
	TSI Radnor, LLC

	 	PSC
	TSI Ramsey, LLC

	 	NYSC
	TSI Reade Street, LLC

	 	NYSC
	TSI Rego Park, LLC

	 	NYSC
	TSI Ridgewood, LLC

	 	NYSC
	TSI Rodin Place, LLC

	 	PSC
	TSI Scarsdale, LLC

	 	NYSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Seaport, LLC

	 	NYSC
	TSI Sheridan, LLC

	 	NYSC
	TSI Silver Spring, LLC

	 	WSC
	TSI Smithtown, LLC

	 	NYSC
	TSI Society Hill, LLC

	 	PSC
	TSI Soho, LLC

	 	NYSC
	TSI Somers, LLC

	 	NYSC
	TSI Somerset, LLC

	 	NYSC
	TSI South Bethesda, LLC

	 	WSC
	TSI South End, LLC

	 	BSC
	TSI South Park Slope, LLC

	 	NYSC
	TSI South Station, LLC

	 	BSC
	TSI Springfield, LLC

	 	NYSC
	TSI Stamford Downtown, LLC

	 	NYSC
	TSI Stamford Post, LLC

	 	NYSC
	TSI Stamford Rinks, LLC

	 	NYSC
	TSI Staten Island, LLC

	 	NYSC
	TSI Sterling, LLC

	 	WSC
	TSI Sunnyside, LLC

	 	NYSC
	TSI Syosset, LLC

	 	NYSC
	TSI University Management, LLC

	 	None
	TSI Varick Street, LLC

	 	NYSC
	TSI Wall Street, LLC

	 	NYSC
	TSI Waltham, LLC

	 	BSC
	TSI Washington, Inc.

	 	WSC
	TSI Water Street, LLC

	 	NYSC
	TSI Watertown, LLC

	 	BSC
	TSI Wayland, LLC

	 	None
	TSI Wellesley, LLC

	 	BSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Wellington Circle, LLC

	 	BSC
	TSI West Caldwell, LLC

	 	NYSC
	TSI West Hartford, LLC

	 	NYSC
	TSI West Newton, LLC

	 	BSC
	TSI West Nyack, LLC

	 	NYSC
	TSI West Springfield, LLC

	 	WSC
	TSI West 14, LLC

	 	NYSC
	TSI West 16, LLC

	 	NYSC
	TSI West 23, LLC

	 	NYSC
	TSI West 38, LLC

	 	NYSC
	TSI West 41, LLC

	 	NYSC
	TSI West 44, LLC

	 	NYSC
	TSI West 48, LLC

	 	NYSC
	TSI West 52, LLC

	 	NYSC
	TSI West 73, LLC

	 	NYSC
	TSI West 76, LLC

	 	NYSC
	TSI West 80, LLC

	 	NYSC
	TSI West 94, LLC

	 	NYSC
	TSI West 115th Street, LLC

	 	NYSC
	TSI West 125, LLC

	 	NYSC
	TSI West 145th Street, LLC

	 	NYSC
	TSI Westport, LLC

	 	NYSC
	TSI Westborough, LLC

	 	BSC
	TSI Westwood, LLC

	 	NYSC
	TSI Weymouth, LLC

	 	BSC
	TSI White Plains City Center, LLC

	 	NYSC
	TSI White Plains, LLC

	 	NYSC
	TSI Whitestone, LLC

	 	NYSC
	TSI Woburn, LLC

	 	BSC

 

	 	 	 
	Name of Assignor	 	Trade and/or Fictitious Names
	 
	 	 
	TSI Woodmere, LLC

	 	NYSC

 

ANNEX D

to

SECURITY AGREEMENT

DESCRIPTION OF COMMERCIAL TORT CLAIMS

	 	 	 
	Name of Assignor	 	Description of Commercial Tort Claims
	 
	 	 
	Town Sports International, LLC

	 	On September 22, 2009, in an action styled
Town Sports International, LLC v. Ajilon
Solutions, a division of Ajilon
Professional Staffing LLC (Supreme Court of
the State of New York, New York County,
602911-09), Town Sports International, LLC
(“TSI”) brought an action in the Supreme
Court of the State of New York, New York
County, against Ajilon for breach of
contract, conversion, and replevin,
seeking, among other things, money damages
against Ajilon for breaching its agreement
to design and deliver to TSI a new sports
club enterprise management system known as
GIMS, including failing to provide copies
of the computer source code written for
GIMS, related documentation, properly
identified requirements documents and other
property owned and licensed by TSI.
Subsequently, on October 14, 2009, Ajilon
brought a counterclaim against TSI
alleging, among other things, failure to
pay outstanding invoices in the amount of
$2.9 million. On March 7, 2011, TSI amended
its complaint to add claims against Ajilon
for fraud, negligent misrepresentation, and
breach of the covenant of good faith and
fair dealing.

 

ANNEX E

to

SECURITY AGREEMENT

SCHEDULE OF MARKS AND APPLICATIONS;

INTERNET DOMAIN NAME REGISTRATIONS

1. Marks and Applications: None.

2. Internet Domain Name Registrations:

	 	 	 	 	 	 	 	 	 
	Domain	 	Date Created	 	Date Expires	 	Registrant	 	Vendor
	 
	 	 	 	 	 	 	 	 
	ACTIVTRAXPRO.COM

	 	06/20/2007
	 	06/202014
	 	Doreen Sussman
	 	Domain Registry of America
	AMILLIONREASONSTOJOIN.COM

	 	01/3/2001
	 	01/3/2015
	 	Doreen Sussman
	 	Domain Registry of America
	ATLANTASPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	BOSTONSPORTSCLUBS.CO

	 	07/29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	BOSTONSPORTSCLUB.COM

	 	05/14/1998
	 	05/13/2013
	 	Doreen Sussman
	 	Domain Registry of Americas
	BOSTONSPORTSCLUBS.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	BOSTONSPORTSCLUBS.COM

	 	05/14/1998
	 	05/13/2013
	 	Doreen Sussman
	 	Domain Registry of America
	BOSTONSPORTSCLUBSSUCK.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	BOSTONSPORTSCLUBSSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	BSC.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	BSCSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	CHICAGOSPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	COMPANIESGETFIT.COM

	 	08/23/2004
	 	08/23/2011
	 	Doreen Sussman
	 	Domain Registry of America
	DENVERSPORTSCLUB.COM

	 	12/31/2002
	 	12/31/2012
	 	Doreen Sussman
	 	Domain Registry of America
	JOINBSC.COM

	 	03/24/2008
	 	03/24/2015
	 	Doreen Sussman
	 	Domain Registry of America
	JOINMYSPORTSCLUB.COM

	 	07/24/2008
	 	07/24/2017
	 	Doreen Sussman
	 	Domain Registry of America
	JOINMYSPORTSCLUBS.COM

	 	07/24/2008
	 	07/24/2017
	 	Doreen Sussman
	 	Domain Registry of America
	JOINNYSC.COM

	 	03/24/2008
	 	03/24/2015
	 	Doreen Sussman
	 	Domain Registry of America

 

75

	 	 	 	 	 	 	 	 	 
	Domain	 	Date Created	 	Date Expires	 	Registrant	 	Vendor
	 
	 	 	 	 	 	 	 	 
	JOINPSC.COM

	 	03/24/2008
	 	03/24/2015
	 	Doreen Sussman
	 	Domain Registry of America
	JOINWSC.COM

	 	03/24/2008
	 	03/24/2015
	 	Doreen Sussman
	 	Domain Registry of America
	KUBYGETSFIT.COM

	 	02/13/2006
	 	02/13/2013
	 	Doreen Sussman
	 	Domain Registry of America
	MIAMISPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	MYREASONTOJOIN.COM

	 	01/3/2001
	 	01/3/2015
	 	Doreen Sussman
	 	Domain Registry of America
	MYSPORTCLUB.CO

	 	07/29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	MYSPORTSCLUB.CO

	 	07/29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	MYSPORTSCLUBS.COM

	 	06/27/2000
	 	06/27/2018
	 	Doreen Sussman
	 	Domain Registry of America
	MYSPORTSCLUBS.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	MYSPORTSCO.COM

	 	07/17/2001
	 	07/17/2013
	 	Doreen Sussman
	 	Domain Registry of America
	MYSPORTSCOMPANY.COM

	 	07/18/2001
	 	07/18/2013
	 	Doreen Sussman
	 	Domain Registry of America
	MYSPORTSCOMPANY.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	MYTSISUMMIT.COM

	 	02/15/2007
	 	02/15/2012
	 	Doreen Sussman
	 	Domain Registry of America
	MYTSISUMMIT.INFO

	 	02/15/2007
	 	02/15/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NEWYORKSPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry Of America
	NEWYORKSPORTSCLUBS.CO

	 	07/29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	NEWYORKSPORTSCLUBS.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	NEWYORKSPORTSCLUBSSUCK.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NEWYORKSPORTSCLUBSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NOSWEATFIT.BIZ

	 	04/20/2005
	 	04/19/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NOSWEATFIT.COM

	 	04/20/2005
	 	04/20/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NOSWEATFIT.NET

	 	04/20/2005
	 	04/20/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NOSWEATFITNESS.BIZ

	 	04/20/2005
	 	04/19/2012
	 	Doreen Sussman
	 	Domain Registry of America

 

76

	 	 	 	 	 	 	 	 	 
	Domain	 	Date Created	 	Date Expires	 	Registrant	 	Vendor
	 
	 	 	 	 	 	 	 	 
	NOSWEATFITNESS.NET

	 	04/20/2005
	 	04/20/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NYSC.COM

	 	12/02/1995
	 	12/01/2014
	 	Doreen Sussman
	 	Domain Registry of America
	NYSC.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	NYSCSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	NYSPORTCLUB.COM

	 	10/19/2001
	 	10/19/2013
	 	Francine Hancock
	 	Domain Registry of America
	PHILADELPHIASPORTS.COM

	 	05/14/1998
	 	05/13/2013
	 	Doreen Sussman
	 	Domain Registry of America
	PHILADELPHIASPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	PHILADELPHIASPORTSCLUBS.CO

	 	07./29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	PHILADELPHIASPORTSCLUBS.COM

	 	01/18/2005
	 	01/18/2016
	 	Doreen Sussman
	 	Domain Registry of America
	PHILADELPHIASPORTSCLUBS.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	PORTLANDSPORTSCLUB.COM

	 	12/31/2002
	 	12/31/2012
	 	Doreen Sussman
	 	Domain Registry of America
	POUNDSOFFCLUB.COM

	 	04/26/2006
	 	04/26/2015
	 	Doreen Sussman
	 	Domain Registry of America
	PSC.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	PSCSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	ROCKTHESCALES.COM

	 	11/22/2006
	 	11/22/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SANFRANCISCOSPORTSCLUB.COM

	 	12/31/2002
	 	12/31/2012
	 	Doreen Sussman
	 	Domain Registry of America
	SEATTLESPORTSCLUB.COM

	 	12/31/2002
	 	12/31/2012
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTCLUBNETWORK.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTSCLUBNETWORK.COM

	 	03/20/2002
	 	03/20/2014
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTS-CLUB-NETWORK.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America

 

77

	 	 	 	 	 	 	 	 	 
	Domain	 	Date Created	 	Date Expires	 	Registrant	 	Vendor
	 
	 	 	 	 	 	 	 	 
	SPORTSCLUBSFORKIDS.COM

	 	10/31/2000
	 	10/31/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTSCLUBSNETWORK.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTS-CLUBS-NETWORK.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTSCLUBSNETWORKS.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America
	SPORTS-CLUBS-NETWORKS.COM

	 	03/20/2002
	 	03/20/2013
	 	Doreen Sussman
	 	Domain Registry of America
	TORONTOSPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	TOWN-SPORTS.COM

	 	05/27/1998
	 	05/26/2012
	 	Town Sports

International
	 	Network Solutions, LLC
	TOWNSPORTSINTL.COM

	 	05/27/1998
	 	05/26/2013
	 	Doreen Sussman
	 	Domain Registry of America
	TSAG.COM

	 	02/20/1997
	 	02/21/2013
	 	Doreen Sussman
	 	Domain Registry of America
	WASHINGTONSPORTS.COM

	 	08/3/1996
	 	08/2/2013
	 	Doreen Sussman
	 	Domain Registry of America
	WASHINGTONSPORTSCLUB.COM

	 	03/10/2000
	 	03/10/2013
	 	Doreen Sussman
	 	Domain Registry of America
	WASHINGTONSPORTSCLUBS.CO

	 	07/29/2010
	 	07/28/2011
	 	Doreen Sussman
	 	GoDaddy.com, Inc.
	WASHINGTONSPORTSCLUBS.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	WASHINGTONSPORTSSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	WASHINGTONSPORTSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America
	WSC.MOBI

	 	09/26/2006
	 	09/26/2011
	 	Doreen Sussman
	 	Dotster Inc.
	WSCSUCKS.COM

	 	10/15/1998
	 	10/14/2012
	 	Doreen Sussman
	 	Domain Registry of America

 

ANNEX F

to

SECURITY AGREEMENT

SCHEDULE OF PATENTS

None.

 

ANNEX G

to

SECURITY AGREEMENT

SCHEDULE OF COPYRIGHTS

None.

 

ANNEX H

to

SECURITY AGREEMENT

GRANT OF SECURITY INTEREST

IN UNITED STATES TRADEMARKS

          FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged,
[Name of Grantor], a __________ _________ (the “Grantor”) with principal offices at
____________________________, hereby grants to Deutsche Bank Trust Company Americas, as Collateral
Agent, with principal offices at 60 Wall Street, New York, New York 10005 (the “Grantee”),
a continuing security interest in (i) all of the Grantor’s right, title and interest in and to the
United States trademarks, trademark registrations and trademark applications (the “Marks”)
set forth on Schedule A attached hereto, (ii) all Proceeds (as such term is defined in the Security
Agreement referred to below) and products of the Marks, (iii) the goodwill of the businesses with
which the Marks are associated and (iv) all causes of action arising prior to or after the date
hereof for infringement of any of the Marks or unfair competition regarding the same.

          THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations
of the Grantor, as such term is defined in the Security Agreement among the Grantor, the other
assignors from time to time party thereto and the Grantee, dated as of May 11, 2011 (as amended,
modified, restated and/or supplemented from time to time, the “Security Agreement”). Upon
the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall
execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security
interest in the Marks acquired under this Grant.

          Notwithstanding anything herein to the contrary, no security interest is granted in
“intent-to-use” applications for registration of a Mark filed pursuant to Section 1(b) of the
Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d)
of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the

 

 

Page 2

Lanham Act with respect thereto, to the extent that, and during the period in which, the grant
of a security interest therein would impair the validity or enforceability of any registration that
issues from such intent-to-use application under applicable federal law.

          This Grant has been granted in conjunction with the security interest granted to the Grantee
under the Security Agreement. The rights and remedies of the Grantee with respect to the security
interest granted herein are as set forth in the Security Agreement, all terms and provisions of
which are incorporated herein by reference. In the event that any provisions of this Grant are
deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall
govern.

*     *     *

 

 

Page 3

          IN WITNESS WHEREOF, the undersigned have executed this Grant as of the ____ day of
____________, __.

	 	 	 	 	 
	 	[NAME OF GRANTOR], Grantor

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

     as Collateral Agent and Grantee

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss.:
	COUNTY OF 

	 	)	 	 	 
	 

	 

	 	 	 	 

          On this ____ day of _________, ____, before me personally came ________ ________________ who,
being by me duly sworn, did state as follows: that [s]he is ______________ of [Name of Grantor],
that [s]he is authorized to execute the foregoing Grant on behalf of said ____________ and that
[s]he did so by authority of the [Board of Directors] of said __________.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss:
	COUNTY OF 

	 	)	 	 	 
	 

	 

	 	 	 	 

          On this ____ day of _________, ____, before me personally came ________ _____________________
who, being by me duly sworn, did state as follows: that [s]he is __________________ of Deutsche
Bank Trust Company Americas, that [s]he is authorized to execute the foregoing Grant on behalf of
said corporation and that [s]he did so by authority of the Board of Directors of said corporation.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	MARK	 	REG. NO.	 	REG. DATE
	 
	 	 	 	 

 

 

ANNEX I

to

SECURITY AGREEMENT

GRANT OF SECURITY INTEREST

IN UNITED STATES PATENTS

          FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged,
[Name of Grantor], a __________ _________ (the “Grantor”) with principal offices at
____________________________, hereby grants to Deutsche Bank Trust Company Americas, as Collateral
Agent, with principal offices at 60 Wall Street, New York, New York 10005 (the “Grantee”),
a continuing security interest in (i) all of the Grantor’s rights, title and interest in and to the
United States patents (the “Patents”) set forth on Schedule A attached hereto, in each case
together with (ii) all Proceeds (as such term is defined in the Security Agreement referred to
below) and products of the Patents, and (iii) all causes of action arising prior to or after the
date hereof for infringement of any of the Patents or unfair competition regarding the same.

          THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations
of the Grantor, as such term is defined in the Security Agreement among the Grantor, the other
assignors from time to time party thereto and the Grantee, dated as of May 11, 2011 (as amended,
modified, restated and/or supplemented from time to time, the “Security Agreement”). Upon
the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall
execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security
interest in the Patents acquired under this Grant.

 

 

Page 2

          This Grant has been granted in conjunction with the security interest granted to the Grantee
under the Security Agreement. The rights and remedies of the Grantee with respect to the security
interest granted herein are as set forth in the Security Agreement, all terms and provisions of
which are incorporated herein by reference. In the event that any provisions of this Grant are
deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall
govern.

*      *      *

 

 

Page 3

          IN WITNESS WHEREOF, the undersigned have executed this Grant as of the ____ day of
____________, __.

	 	 	 	 	 
	 	[NAME OF GRANTOR], Grantor

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

     as Collateral Agent and Grantee

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss:
	COUNTY OF 
	 	)	 	 	 
	 

	 

	 	 	 	 

          On this ____ day of _________, ____, before me personally came ________ ________________ who,
being by me duly sworn, did state as follows: that [s]he is ______________ of [Name of Grantor],
that [s]he is authorized to execute the foregoing Grant on behalf of said ____________ and that
[s]he did so by authority of the Board of Directors of said __________.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss:
	COUNTY OF 

	 	)	 	 	 
	 

	 

	 	 	 	 

          On this ____ day of _________, ____, before me personally came ________ _____________________
who, being by me duly sworn, did state as follows: that [s]he is __________________ of Deutsche
Bank Trust Company Americas, that [s]he is authorized to execute the foregoing Grant on behalf of
said corporation and that [s]he did so by authority of the Board of Directors of said corporation.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	PATENT	 	PATENT NO.	 	ISSUE DATE
	 	 	 	 	 

 

 

ANNEX J

to

SECURITY AGREEMENT

GRANT OF SECURITY INTEREST

IN UNITED STATES COPYRIGHTS

          WHEREAS, [Name of Grantor], a _______________ _____________ (the “Grantor”), having
its chief executive office at _____________,  _____________, is the owner of all right, title and interest in and to the United States
copyrights and associated United States copyright registrations and applications for registration
set forth in Schedule A attached hereto;

          WHEREAS, DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent, having its principal
offices at 60 Wall Street, New York, New York 10005 (the “Grantee”), desires to acquire a
security interest in said copyrights and copyright registrations and applications therefor; and

          WHEREAS, the Grantor is willing to grant to the Grantee a security interest in and lien upon
the copyrights and copyright registrations and applications therefor described above.

          NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, and subject to the terms and conditions of the Security Agreement, dated as of May
11, 2011, made by the Grantor, the other assignors from time to time party thereto and the Grantee
(as amended, modified, restated and/or supplemented from time to time, the “Security
Agreement”), the Grantor hereby assigns to the Grantee as collateral security, and grants to
the Grantee a continuing security interest in, the copyrights and copyright registrations and
applications therefor set forth in Schedule A attached hereto.

          Upon the occurrence of the Termination Date (as defined in the Security Agreement), the
Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing
the security interest in the Copyrights acquired under this Grant.

          This Grant has been granted in conjunction with the security interest granted to the Grantee
under the Security Agreement. The rights and remedies of the Grantee with respect to the security
interest granted herein are as set forth in the Security Agreement, all terms and provisions of
which are incorporated herein by reference. In the event that any provisions of this Grant are
deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall
govern.

*      *      *

 

 

Page 2

          EXECUTED AT __________________, ________________ the ____ day of ____________, __.

	 	 	 	 	 
	 	[NAME OF GRANTOR], Grantor

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

     as Collateral Agent and Grantee

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss:
	COUNTY OF 

	 	)	 	 	 
	 

	 

	 	 	 	 

          On this __ day of _________, ____, before me personally came ___________ ______________, who
being duly sworn, did depose and say that [s]he is ___________________ of [Name of Grantor], that
[s]he is authorized to execute the foregoing Grant on behalf of said corporation and that [s]he did
so by authority of the Board of Directors of said corporation.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

	 	 	 	 	 	 

	STATE OF

	 	)	 	 	 
	 

	 

	 
	 	 	
	 

	 

	
)	 	 	ss.:
	COUNTY OF 

	 	)	 	 	 
	 

	 

	 	 	 	 

          On this ____ day of _________, ____, before me personally came ________ __________________
who, being by me duly sworn, did state as follows: that [s]he is __________________ of Deutsche
Bank Trust Company Americas, that [s]he is authorized to execute the foregoing Grant on behalf of
said __________ and that [s]he did so by authority of the Board of Directors of said ___________.

	 	 	 	 	 

	 

	 	 

Notary Public
	 	 

 

 

EXHIBIT H

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I SECURITY INTERESTS
	 	 	2	 
	 
	 	 	 	 
	1.1 Grant of Security Interests
	 	 	2	 
	1.2 Power of Attorney
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	4	 
	 
	 	 	 	 
	2.1 Necessary Filings
	 	 	4	 
	2.2 No Liens
	 	 	5	 
	2.3 Other Financing Statements
	 	 	5	 
	2.4 Chief Executive Office
	 	 	5	 
	2.5 Legal Names; Type of Organization (and Whether a Registered Organization
and/or a Transmitting Utility); Jurisdiction of Organization; Organizational
Identification Numbers; Changes Thereto; etc.
	 	 	5	 
	2.6 Trade Names; Etc.
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER
AND CERTAIN OTHER COLLATERAL
	 	 	6	 
	 
	 	 	 	 
	3.1 Maintenance of Records
	 	 	6	 
	3.2 Direction to Account Debtors; Contracting Parties; etc.
	 	 	7	 
	3.3 Collection
	 	 	7	 
	3.4 Instruments
	 	 	7	 
	3.5 Assignors Remain Liable Under Accounts
	 	 	7	 
	3.6 Assignors Remain Liable Under Contracts
	 	 	8	 
	3.7 Designated Deposit Accounts
	 	 	8	 
	3.8 Letter-of-Credit Rights
	 	 	8	 
	3.9 Commercial Tort Claims
	 	 	8	 
	3.10 Chattel Paper
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES
	 	 	9	 
	 
	 	 	 	 
	4.1 Additional Representations and Warranties
	 	 	9	 
	4.2 Infringements
	 	 	9	 
	4.3 Preservation of Marks and Domain Names
	 	 	10	 
	4.4 Maintenance of Registration
	 	 	10	 
	4.5 Future Registered Marks
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE
SECRETS
	 	 	10	 
	 
	 	 	 	 
	5.1 Additional Representations and Warranties
	 	 	10	 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	5.2 Infringements
	 	 	11	 
	5.3 Maintenance of Patents or Copyrights
	 	 	11	 
	5.4 Prosecution of Patent or Copyright Applications
	 	 	11	 
	5.5 Other Patents and Copyrights
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI PROVISIONS CONCERNING ALL COLLATERAL
	 	 	11	 
	 
	 	 	 	 
	6.1 Protection of Collateral Agent’s Security
	 	 	11	 
	6.2 Additional Information
	 	 	12	 
	6.3 Further Actions
	 	 	12	 
	6.4 Financing Statements
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT
	 	 	12	 
	 
	 	 	 	 
	7.1 Remedies; Obtaining the Collateral Upon Default
	 	 	12	 
	7.2 Remedies; Disposition of the Collateral
	 	 	14	 
	7.3 Waiver of Claims
	 	 	15	 
	7.4 Application of Proceeds
	 	 	16	 
	7.5 Remedies Cumulative
	 	 	18	 
	7.6 Discontinuance of Proceedings
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNITY
	 	 	19	 
	 
	 	 	 	 
	8.1 Indemnity
	 	 	19	 
	8.2 Indemnity Obligations Secured by Collateral; Survival
	 	 	20	 
	 
	 	 	 	 
	ARTICLE IX DEFINITIONS
	 	 	20	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	27	 
	 
	 	 	 	 
	10.1 Notices
	 	 	27	 
	10.2 Waiver; Amendment
	 	 	28	 
	10.3 Obligations Absolute
	 	 	28	 
	10.4 Successors and Assigns
	 	 	28	 
	10.5 Headings Descriptive
	 	 	29	 
	10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
	 	 	29	 
	10.7 Assignor’s Duties
	 	 	30	 
	10.8 Termination; Release
	 	 	30	 
	10.9 Counterparts
	 	 	31	 
	10.10 Severability
	 	 	31	 
	10.11 The
Collateral Agent and the other Secured Creditors
	 	 	31	 
	10.12 Additional Assignors
	 	 	31	 

	 	 	 

	ANNEX A
	 	Schedule of Chief Executive Offices Address(es) of Chief Executive Office
	ANNEX B
	 	Schedule of Legal Names, Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility), Jurisdiction of Organization and Organizational Identification Numbers

 

 

	 	 	 

	ANNEX C
	 	Schedule of Trade and Fictitious Names
	ANNEX D
	 	Schedule of Commercial Tort Claims
	ANNEX E
	 	Schedule of Marks and Applications; Internet Domain Name Registrations
	ANNEX F
	 	Schedule of Patents
	ANNEX G
	 	Schedule of Copyrights
	ANNEX H
	 	Grant of Security Interest in United States Trademarks
	ANNEX I
	 	Grant of Security Interest in United States Patents
	ANNEX J
	 	Grant of Security Interest in United States Copyrights

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 EXHIBIT
I

SUBSIDIARIES GUARANTY

     SUBSIDIARIES GUARANTY, dated as of February 27, 2007 (as amended, modified or supplemented
from time to time, this “Guaranty”), made by each of the undersigned guarantors (each a
“Guarantor” and, together with any other entity that becomes a guarantor hereunder pursuant
to Section 26 hereof, the “Guarantors”). Except as otherwise defined herein,
capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used
herein as therein defined.

W
I T N E S S E T H :

     WHEREAS, Town Sports International Holdings, Inc., Town Sports International, LLC (the
“Borrower”), the lenders from time to time party thereto (the “Lenders”) and Deutsche Bank
Trust Company Americas, as administrative agent (together with any successor administrative agent,
the “Administrative Agent”), have entered into a Credit Agreement, dated as of February 27,
2007 (as amended, modified, restated and/or supplemented from time to time, the “Credit
Agreement”), providing for the making of Loans to, and the issuance of, and participation in,
Letters of Credit for the account of, the Borrower as contemplated therein (the Lenders, the
Collateral Agent, the Issuing Lenders and the Administrative Agent are herein called the
“Lender Creditors”);

     WHEREAS, the Borrower and/or one or more of its Subsidiaries may at any time and from time to
time enter into one or more Interest Rate Protection Agreements or Other Hedging Agreements with
one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with
such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other
Creditors” and, together with the Lender Creditors, the “Secured Creditors”);

     WHEREAS, each Guarantor is a direct or indirect Subsidiary of the Borrower;

     WHEREAS, it is a condition precedent to the making of Loans to the Borrower, and the issuance
of, and participation in, Letters of Credit for the account of the Borrower under the Credit
Agreement and to the Other Creditors entering into Interest Rate Protection Agreements and Other
Hedging Agreements that each Guarantor shall have executed and delivered to the Administrative
Agent this Guaranty; and

     WHEREAS, each Guarantor will obtain benefits from the incurrence of Loans to the Borrower, and
the issuance of, and participation in, Letters of Credit for the account of the Borrower under the
Credit Agreement and the entering into by the Borrower and/or one or more of its Subsidiaries of
Interest Rate Protection Agreements or Other Hedging Agreements and, accordingly, desires to
execute this Guaranty in order to satisfy the condition described in the preceding paragraph;

 

 

     NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each
Guarantor, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby
makes the following representations and warranties to the Secured Creditors and hereby covenants
and agrees with each Secured Creditor as follows:

     1. Each Guarantor, jointly and severally, irrevocably, absolutely and unconditionally
guarantees as a primary obligor and not merely as a surety: (i) to the Lender Creditors the full
and prompt payment when due (whether at the stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise) of (x) the principal of, premium, if any, and interest on the
Notes issued by, and the Loans made to, the Borrower under the Credit Agreement, and all
reimbursement obligations and Unpaid Drawings with respect to Letters of Credit and (y) all other
obligations (including, without limitation, obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness owing by the
Borrower to the Lender Creditors under the Credit Agreement and each other Credit Document to which
the Borrower is a party (including, without limitation, indemnities, Fees and interest thereon
(including, without limitation, any interest accruing after the commencement of any bankruptcy,
insolvency, receivership or similar proceeding at the rate provided for in the Credit Agreement,
whether or not such interest is an allowed claim in any such proceeding), whether now existing or
hereafter incurred under, arising out of or in connection with the Credit Agreement and any such
other Credit Document and the due performance and compliance by the Borrower with all of the terms,
conditions, covenants and agreements contained in all such Credit Documents (all such principal,
premium, interest, liabilities, indebtedness and obligations under this clause (i), except to the
extent consisting of obligations or liabilities with respect to Interest Rate Protection Agreements
and Other Hedging Agreements, being herein collectively called the “Credit Document
Obligations”); and (ii) to each Other Creditor the full and prompt payment when due (whether at
the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of all
obligations (including, without limitation, obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including,
without limitation, any interest accruing after the commencement of any bankruptcy, insolvency,
receivership or similar proceeding at the rate provided for in the respective Interest Rate
Protection Agreements or Other Hedging Agreements, whether or not such interest is an allowed claim
in any such proceeding) owing by the Borrower and/or one or more of its Subsidiaries under any
Interest Rate Protection Agreement or Other Hedging Agreement, whether now in existence or
hereafter arising, and the due performance and compliance by the Borrower and such Subsidiaries
with all of the terms, conditions, covenants and agreements contained in each Interest Rate
Protection Agreement and Other Hedging Agreement to which it is a party (all such obligations,
liabilities and indebtedness being herein collectively called the “Other Obligations” and,
together with the Credit Document Obligations, the “Guaranteed Obligations”). As used
herein, the term “Guaranteed Party” shall mean the Borrower and each Subsidiary thereof
party to any Interest Rate Protection Agreement or Other Hedging Agreement with an Other Creditor.
Each Guarantor understands, agrees and confirms that the Secured Creditors may enforce this
Guaranty up to the full amount of the Guaranteed Obligations against such Guarantor without
proceeding against any other Guarantor, the Borrower, any other Guaranteed Party, against any

 

 

security for the Guaranteed Obligations, or under any other guaranty covering all or a portion
of the Guaranteed Obligations.

     2. Additionally, each Guarantor, jointly and severally, unconditionally, absolutely and
irrevocably, guarantees the payment of any and all Guaranteed Obligations whether or not due or
payable by the Borrower or any other Guaranteed Party upon the occurrence in respect of the
Borrower or any such other Guaranteed Party of any of the events specified in Section 10.05 of the
Credit Agreement, and unconditionally, absolutely and irrevocably, jointly and severally, promises
to pay such Guaranteed Obligations to the Secured Creditors, or order, on demand. This Guaranty
shall constitute a guaranty of payment and performance, and not of collection.

     3. The liability of each Guarantor hereunder is primary, absolute, joint and several, and
unconditional and is exclusive and independent of any security for or other guaranty of the
indebtedness of the Borrower or any other Guaranteed Party whether executed by such Guarantor, any
other Guarantor, any other guarantor or by any other party, and the liability of each Guarantor
hereunder shall not be affected or impaired by any circumstance or occurrence whatsoever,
including, without limitation: (a) any direction as to application of payment by the Borrower or
any other Guaranteed Party or by any other party, (b) any other continuing or other guaranty,
undertaking or maximum liability of a Guarantor or of any other party as to the Guaranteed
Obligations, (c) any payment on or in reduction of any such other guaranty or undertaking, (d) any
dissolution, termination or increase, decrease or change in personnel by the Borrower or any other
Guaranteed Party, (e) the failure of a Guarantor to receive any benefit from or as a result of its
execution, delivery and performance of this Guaranty, (f) any payment made to any Secured Creditor
on the indebtedness which any Secured Creditor repays the Borrower or any other Guaranteed Party
pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor
relief proceeding, and each Guarantor waives any right to the deferral or modification of its
obligations hereunder by reason of any such proceeding, (g) any action or inaction by the Secured
Creditors as contemplated in Section 6 hereof or (h) any invalidity, recission,
irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any
security therefor.

     4. The obligations of each Guarantor hereunder are independent of the obligations of any other
Guarantor, any other guarantor, the Borrower or any other Guaranteed Party, and a separate action
or actions may be brought and prosecuted against each Guarantor whether or not action is brought
against any other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party and
whether or not any other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party
be joined in any such action or actions. Each Guarantor waives, to the fullest extent permitted by
applicable law, the benefits of any statute of limitations affecting its liability hereunder or the
enforcement thereof. Any payment by the Borrower or any other Guaranteed Party or other
circumstance which operates to toll any statute of limitations as to the Borrower or any other
Guaranteed Party shall operate to toll the statute of limitations as to each Guarantor.

 

 

     5. Each Guarantor hereby waives (to the fullest extent permitted by applicable law) notice of
acceptance of this Guaranty and notice of the existence, creation or incurrence of any new or
additional liability to which it may apply, and waives promptness, diligence, presentment, demand
of payment, demand for performance, protest, notice of dishonor or nonpayment of any such
liabilities, suit or taking of other action by the Administrative Agent or any other Secured
Creditor against, and any other notice to, any party liable thereon (including such Guarantor, any
other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party) and each
Guarantor further hereby waives any and all notice of the creation, renewal, extension or accrual
of any of the Guaranteed Obligations and notice or proof of reliance by any Secured Creditor upon
this Guaranty, and the Guaranteed Obligations shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended, modified, supplemented or waived, in
reliance upon this Guaranty.

     6. Any Secured Creditor may (except as shall be required by applicable statute and cannot be
waived) at any time and from time to time without the consent of, or notice to, any Guarantor,
without incurring responsibility to such Guarantor, without impairing or releasing the obligations
or liabilities of such Guarantor hereunder, upon or without any terms or conditions and in whole or
in part:

     (a) change the manner, place or terms of payment of, and/or change, increase or extend the
time of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations
(including, without limitation, any increase or decrease in the rate of interest thereon or the
principal amount thereof), any security therefor, or any liability incurred directly or indirectly
in respect thereof, and the guaranty herein made shall apply to the Guaranteed Obligations as so
changed, extended, increased, accelerated, renewed or altered;

     (b) take and hold security for the payment of the Guaranteed Obligations and sell, exchange,
release, surrender, impair, realize upon or otherwise deal with in any manner and in any order any
property or other collateral by whomsoever at any time pledged or mortgaged to secure, or howsoever
securing, the Guaranteed Obligations or any liabilities (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and/or any offset there against;

     (c) exercise or refrain from exercising any rights against the Borrower, any other Guaranteed
Party, any other Credit Party, any Subsidiary thereof, any other guarantor of the Guaranteed
Obligations or others or otherwise act or refrain from acting;

     (d) release or substitute any one or more endorsers, Guarantors, other guarantors, the
Borrower, any other Guaranteed Party, or other obligors;

     (e) settle or compromise any of the Guaranteed Obligations, any security therefor or any
liability (including any of those hereunder) incurred directly or indirectly in respect thereof or
hereof, and may subordinate the payment of all or any part thereof to the payment of any liability
(whether due or not) of the Borrower or any other Guaranteed Party to creditors of the Borrower or
such other Guaranteed Party other than the Secured Creditors;

 

 

     (f) apply any sums by whomsoever paid or howsoever realized to any liability or liabilities of
the Borrower or any other Guaranteed Party to the Secured Creditors regardless of what liabilities
of the Borrower or such other Guaranteed Party remain unpaid;

     (g) consent to or waive any breach of, or any act, omission or default under, any of the
Interest Rate Protection Agreements or Other Hedging Agreements, the Credit Documents or any of the
instruments or agreements referred to therein, or otherwise amend, modify or supplement any of the
Interest Rate Protection Agreements or Other Hedging Agreements, the Credit Documents or any of
such other instruments or agreements;

     (h) act or fail to act in any manner referred to in this Guaranty which may deprive such
Guarantor of its right to subrogation against the Borrower or any other Guaranteed Party to recover
full indemnity for any payments made pursuant to this Guaranty; and/or

     (i) take any other action or omit to take any other action which would, under otherwise
applicable principles of common law, give rise to a legal or equitable discharge of such Guarantor
from its liabilities under this Guaranty.

     No invalidity, illegality, irregularity or unenforceability of all or any part of the
Guaranteed Obligations, the Credit Documents, the Interest Rate Protection Agreements and Other
Hedging Agreements or any other agreement or instrument relating to the Guaranteed Obligations or
of any security or guarantee therefor shall affect, impair or be a defense to this Guaranty, and
this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any
event or the existence of any other circumstances which might constitute a legal or equitable
discharge of a surety or guarantor except payment in full in cash of the Guaranteed Obligations.

     7. This Guaranty is a continuing one and all liabilities to which it applies or may apply
under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No
failure or delay on the part of any Secured Creditor in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein expressly specified are cumulative
and not exclusive of any rights or remedies which any Secured Creditor would otherwise have. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to any other further
notice or demand in similar or other circumstances or constitute a waiver of the rights of any
Secured Creditor to any other or further action in any circumstances without notice or demand. It
is not necessary for any Secured Creditor to inquire into the capacity or powers of the Borrower or
any other Guaranteed Party or the officers, directors, partners or agents acting or purporting to
act on its or their behalf, and any indebtedness made or created in reliance upon the professed
exercise of such powers shall be guaranteed hereunder.

     8. Any indebtedness of the Borrower or any other Guaranteed Party now or hereafter held by any
Guarantor is hereby subordinated to the indebtedness of the Borrower or such other Guaranteed Party
to the Secured Creditors, and such indebtedness of the Borrower or

 

 

such other Guaranteed Party to any Guarantor, if the Administrative Agent or the Collateral
Agent, after the occurrence and during the continuance of an Event of Default, so requests, shall
be collected, enforced and received by such Guarantor as trustee for the Secured Creditors and be
paid over to the Secured Creditors on account of the indebtedness of the Borrower or the other
Guaranteed Parties to the Secured Creditors, but without affecting or impairing in any manner the
liability of such Guarantor under the other provisions of this Guaranty. Prior to the transfer by
any Guarantor of any note or negotiable instrument evidencing any indebtedness of the Borrower or
any other Guaranteed Party to such Guarantor, such Guarantor shall mark such note or negotiable
instrument with a legend that the same is subject to this subordination. Without limiting the
generality of the foregoing, each Guarantor hereby agrees with the Secured Creditors that it will
not exercise any right of subrogation which it may at any time otherwise have as a result of this
Guaranty (whether contractual, under Section 509 of the Bankruptcy Code or otherwise) until all
Guaranteed Obligations have been irrevocably paid in full in cash (other than contingent
indemnification obligations that are not then due and payable); provided, that if any
amount shall be paid to such Guarantor on account of such subrogation rights at any time prior to
the irrevocable payment in full in cash of all the Guaranteed Obligations, such amount shall be
held in trust for the benefit of the Secured Creditors and shall forthwith be paid to the Secured
Creditors to be credited and applied upon the Guaranteed Obligations, whether matured or unmatured,
in accordance with the terms of the Credit Documents or, if the Credit Documents do not provide for
the application of such amount, to be held by the Secured Creditors as collateral security for any
Guaranteed Obligations thereafter existing.

     9. a. Each Guarantor waives any right (except as shall be required by applicable law and
cannot be waived) to require the Secured Creditors to: (i) proceed against the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party; (ii) proceed against or exhaust any security held from the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party; or (iii) pursue any other remedy in the Secured Creditors’ power whatsoever. Each
Guarantor waives any defense based on or arising out of any defense of the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party other than payment in full in cash of the Guaranteed Obligations in accordance with the
terms thereof, including, without limitation, any defense based on or arising out of the disability
of the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the
Guaranteed Obligations or any other party, or the unenforceability of the Guaranteed Obligations or
any part thereof from any cause, or the cessation from any cause of the liability of the Borrower
or any other Guaranteed Party other than payment in full of the Guaranteed Obligations in cash.
The Secured Creditors may, at their election, foreclose on any security held by the Administrative
Agent, the Collateral Agent or the other Secured Creditors by one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable, or exercise any
other right or remedy the Secured Creditors may have against the Borrower, any other Guaranteed
Party or any other party, or any security, without affecting or impairing in any way the liability
of any Guarantor hereunder except to the extent the Guaranteed Obligations have been paid in full
in cash in accordance with the terms thereof. Each Guarantor waives any defense arising out of any
such election by the

 

 

Secured Creditors, even though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower, any
other Guaranteed Party or any other party or any security.

     (b) Each Guarantor waives all presentments, demands for performance, protests and notices,
including, without limitation, notices of nonperformance, notices of protest, notices of dishonor,
notices of acceptance of this Guaranty, and notices of the existence, creation or incurring of new
or additional indebtedness. Each Guarantor assumes all responsibility for being and keeping itself
informed of the Borrower’s and each other Guaranteed Party’s financial condition and assets, and of
all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks which such Guarantor assumes and incurs hereunder, and agrees
that the Secured Creditors shall have no duty to advise any Guarantor of information known to them
regarding such circumstances or risks.

     10. Notwithstanding anything to the contrary contained elsewhere in this Guaranty, the Secured
Creditors agree that this Guaranty may be enforced only by the action of the Administrative Agent
or the Collateral Agent, in each case acting upon the instructions of the Required Lenders (or,
after the date on which all Credit Document Obligations have been paid in full, the holders of at
least a majority of the outstanding Other Obligations) and that no other Secured Creditors shall
have any right individually to seek to enforce or to enforce this Guaranty or to realize upon the
security to be granted by the Security Documents, it being understood and agreed that such rights
and remedies may be exercised by the Administrative Agent or the Collateral Agent or, after all the
Credit Document Obligations have been paid in full (other than contingent indemnification
obligations that are not then due and payable), by the holders of at least a majority of the
outstanding Other Obligations, as the case may be, for the benefit of the Secured Creditors upon
the terms of this Guaranty and the Security Documents. The Secured Creditors further agree that
this Guaranty may not be enforced against any director, officer, employee, partner, member or
stockholder of any Guarantor (except to the extent such partner, member or stockholder is also a
Guarantor hereunder). It is understood and agreed that the agreement in this Section 10 is
among and solely for the benefit of the Secured Creditors and that, if the Required Lenders (or,
after the date on which all Credit Document Obligations have been paid in full, the holders of at
least a majority of the outstanding Other Obligations) so agree (without requiring the consent of
any Guarantor), this Guaranty may be directly enforced by any Secured Creditor.

     11. In order to induce the Lenders to make Loans to, and issue Letters of Credit for the
account of, the Borrower pursuant to the Credit Agreement, and in order to induce the Other
Creditors to execute, deliver and perform the Interest Rate Protection Agreements and Other Hedging
Agreements, each Guarantor represents, warrants and covenants that:

     (a) Such Guarantor (i) is a duly organized and validly existing corporation, partnership or
limited liability company, as the case may be, in good standing under the laws of the jurisdiction
of its organization, (ii) has the corporate, partnership or limited liability company power and
authority, as the case may be, to own its property and assets and to transact the business in which
it is engaged and presently proposes to engage and (iii) is duly qualified and is

 

 

authorized to do business and is in good standing in each jurisdiction where the nature of its
business requires such qualification except for failures to be so qualified which, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     (b) Such Guarantor has the corporate, partnership or limited liability company power and
authority, as the case may be, to execute, deliver and perform the terms and provisions of this
Guaranty and each other Credit Document to which it is a party and has taken all necessary
corporate, partnership or limited liability company action, as the case may be, to authorize the
execution, delivery and performance by it of this Guaranty and each such other Credit Document.
Such Guarantor has duly executed and delivered this Guaranty and each other Credit Document to
which it is a party, and this Guaranty and each such other Credit Document constitutes the legal,
valid and binding obligation of such Guarantor enforceable in accordance with its terms, except to
the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights
and by equitable principles (regardless of whether enforcement is sought in equity or at law).

     (c) Neither the execution, delivery or performance by such Guarantor of this Guaranty or any
other Credit Document to which it is a party, nor compliance by it with the terms and provisions
hereof and thereof, will (i) contravene any provision of any applicable law, statute, rule or
regulation or any applicable order, writ, injunction or decree of any court or governmental
instrumentality, (ii) conflict with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the creation or imposition
of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents)
upon any of the property or assets of such Guarantor or any of its Subsidiaries pursuant to the
terms of any indenture, mortgage, deed of trust, loan agreement, credit agreement, or any other
material agreement, contract or instrument to which such Guarantor or any of its Subsidiaries is a
party or by which it or any of its property or assets is bound or to which it may be subject or
(iii) violate any provision of the certificate or articles of incorporation or by-laws (or
equivalent organizational documents) of such Guarantor or any of its Subsidiaries.

     (d) No order, consent, approval, license, authorization or validation of, or filing, recording
or registration with (except as have been obtained or made prior to the date when required and
which remain in full force and effect), or exemption by, any governmental or public body or
authority, or any subdivision thereof, is required to authorize, or is required for, (i) the
execution, delivery and performance of this Guaranty by such Guarantor or any other Credit Document
to which such Guarantor is a party or (ii) the legality, validity, binding effect or enforceability
of this Guaranty or any other Credit Document to which such Guarantor is a party.

     (e) There are no actions, suits or proceedings pending or, to such Guarantor’s knowledge,
threatened (i) with respect to this Guaranty or any other Credit Document to which such Guarantor
is a party or (ii) with respect to such Guarantor or any of its Subsidiaries that, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

 

     12. Each Guarantor covenants and agrees that on and after the Effective Date and until the
termination of the Total Commitment and all Interest Rate Protection Agreements and Other Hedging
Agreements and until such time as no Note or Letter of Credit remains outstanding and all
Guaranteed Obligations have been paid in full (other than contingent indemnification obligations
that are not then due and payable), such Guarantor will comply, and will cause each of its
Subsidiaries to comply, with all of the applicable provisions, covenants and agreements contained
in Sections 8 and 9 of the Credit Agreement, and will take, or will refrain from taking, as the
case may be, all actions that are necessary to be taken or not taken so that it is not in violation
of any provision, covenant or agreement contained in Section 8 or 9 of the Credit Agreement, and so
that no Default or Event of Default is caused by the actions of such Guarantor or any of its
Subsidiaries.

     13. The Guarantors hereby jointly and severally agree to pay all reasonable out-of-pocket
costs and expenses of each Secured Creditor in connection with the enforcement of this Guaranty and
of the Administrative Agent in connection with any amendment, waiver or consent relating hereto
(including, in each case, without limitation, the reasonable fees and disbursements of counsel
employed by each Secured Creditor).

     14. This Guaranty shall be binding upon each Guarantor and its successors and assigns and
shall inure to the benefit of the Secured Creditors and their successors and assigns.

     15. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or
terminated except with the written consent of each Guarantor directly affected thereby and with the
written consent of either (x) the Required Lenders (or, to the extent required by Section 13.12 of
the Credit Agreement, with the written consent of each Lender) at all times prior to the time on
which all Credit Document Obligations have been paid in full (other than contingent indemnification
obligations that are not then due and payable) or (y) the holders of at least a majority of the
outstanding Other Obligations at all times after the time on which all Credit Document Obligations
have been paid in full (other than contingent indemnification obligations that are not then due and
payable); provided, that any change, waiver, modification or variance affecting the rights
and benefits of a single Class (as defined below) of Secured Creditors (and not all Secured
Creditors in a like or similar manner) shall also require the written consent of the Requisite
Creditors (as defined below) of such Class of Secured Creditors (it being understood that the
addition or release of any Guarantor hereunder in accordance with the terms hereof or the Credit
Agreement shall not constitute a change, waiver, discharge or termination affecting any Guarantor
other than the Guarantor so added or released and shall not require the consent of any Secured
Creditor other than the Administrative Agent). For the purpose of this Guaranty, the term
“Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender
Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as the holders
of the Other Obligations. For the purpose of this Guaranty, the term “Requisite Creditors”
of any Class shall mean (x) with respect to the Credit Document Obligations, the Required Lenders
(or, to the extent required by Section 13.12 of the Credit Agreement, each Lender) and (y) with
respect to the Other Obligations, the holders of at least a

 

 

majority of all obligations outstanding from time to time under the Interest Rate Protection
Agreements and Other Hedging Agreements.

     16. Each Guarantor acknowledges that an executed (or conformed) copy of each of the Credit
Documents and Interest Rate Protection Agreements or Other Hedging Agreements has been made
available to a senior officer of such Guarantor and such officer is familiar with the contents
thereof.

     17. In addition to any rights now or hereafter granted under applicable law (including,
without limitation, Section 151 of the New York Debtor and Secured Creditor Law) and not by way of
limitation of any such rights, upon the occurrence and during the continuance of an Event of
Default (such term to mean and include any “Event of Default” (or similar term) as defined in the
Credit Agreement or in any Interest Rate Protection Agreement or Other Hedging Agreement entered
into with any Other Creditor and shall in any event include, without limitation, any payment
default under any of the Obligations continuing after any applicable grace period), each Secured
Creditor is hereby authorized, at any time or from time to time, without notice to any Guarantor or
to any other Person, any such notice being expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other indebtedness at any time held or
owing by such Secured Creditor (including, without limitation, by branches and agencies of such
Secured Creditor wherever located) to or for the credit or the account of such Guarantor, against
and on account of the obligations and liabilities of such Guarantor to such Secured Creditor under
this Guaranty, irrespective of whether or not such Secured Creditor shall have made any demand
hereunder and although said obligations, liabilities, deposits or claims, or any of them, shall be
contingent or unmatured.

     18. Except as otherwise provided herein, all notices, requests, demands or other
communications to or upon the respective parties hereto shall be sent or delivered by mail,
telegraph, telex, telecopy, cable or courier service and all such notices and communications shall,
when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight courier, be effective
when deposited in the mails, delivered to the telegraph company, cable company or overnight
courier, as the case may be, or sent by telex or telecopier, except that notices and communications
to the Administrative Agent or any Guarantor shall not be effective until received by the
Administrative Agent or such Guarantor, as the case may be. All notices and other communications
shall be in writing and addressed to such party at (i) in the case of any Lender Creditor, as
provided in the Credit Agreement, (ii) in the case of any Guarantor, at its address set forth
opposite its signature page below, and (iii) in the case of any Other Creditor, at such address as
such Other Creditor shall have specified in writing to the Borrower; or in any case at such other
address as any of the Persons listed above may hereafter notify the others in writing.

     19. If any claim is ever made upon any Secured Creditor for repayment or recovery of any
amount or amounts received in payment or on account of any of the Guaranteed Obligations and any of
the aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or
order of any court or administrative body having jurisdiction over such payee or any of its
property or (ii) any settlement or compromise of any such claim effected by

 

 

such payee with any such claimant (including, without limitation, the Borrower or any other
Guaranteed Party) then and in such event each Guarantor agrees that any such judgment, decree,
order, settlement or compromise shall be binding upon such Guarantor, notwithstanding any
revocation hereof or the cancellation of any Note, any Interest Rate Protection Agreement, any
Other Hedging Agreement or any other instrument evidencing any liability of the Borrower or any
other Guaranteed Party, and such Guarantor shall be and remain liable to the aforesaid payees
hereunder for the amount so repaid or recovered to the same extent as if such amount had never
originally been received by any such payee.

     20. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE SECURED CREDITORS AND OF THE
UNDERSIGNED HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK. Any legal action or proceeding with respect to this Guaranty or any other Credit
Document to which any Guarantor is a party may be brought in the courts of the State of New York or
of the United States of America for the Southern District of New York in each case which are
located in the County of New York, and, by execution and delivery of this Guaranty, each Guarantor
hereby irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each Guarantor hereby further
irrevocably waives any claim that any such court lacks personal jurisdiction over such Guarantor,
and agrees not to plead or claim in any legal action or proceeding with respect to this Guaranty or
any other Credit Document to which such Guarantor is a party brought in any of the aforesaid courts
that any such court lacks personal jurisdiction over such Guarantor. Each Guarantor further
irrevocably consents to the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or certified mail, postage
prepaid, to such Guarantor at its address set forth opposite its signature below, such service to
become effective 30 days after such mailing. Each Guarantor hereby irrevocably waives any
objection to such service of process and further irrevocably waives and agrees not to plead or
claim in any action or proceeding commenced hereunder or under any other Credit Document to which
such Guarantor is a party that such service of process was in any way invalid or ineffective.
Nothing herein shall affect the right of any of the Secured Creditors to serve process in any other
manner permitted by law or to commence legal proceedings or otherwise proceed against each
Guarantor in any other jurisdiction.

     (b) Each Guarantor hereby irrevocably waives (to the fullest extent permitted by applicable
law) any objection which it may now or hereafter have to the laying of venue of any of the
aforesaid actions or proceedings arising out of or in connection with this Guaranty or any other
Credit Document to which such Guarantor is a party brought in the courts referred to in clause (a)
above and hereby further irrevocably waives and agrees not to plead or claim in any such court that
such action or proceeding brought in any such court has been brought in an inconvenient forum.

     (c) EACH GUARANTOR AND EACH SECURED CREDITOR (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS
GUARANTY) HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, THE OTHER

 

 

CREDIT DOCUMENTS TO WHICH SUCH GUARANTOR IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

     21. In the event that all of the capital stock of one or more Guarantors is sold or otherwise
disposed of or liquidated in compliance with the requirements of Section 9.02 of the Credit
Agreement (or such sale, other disposition or liquidation has been approved in writing by the
Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement)) and the
proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of
the Credit Agreement, to the extent applicable, such Guarantor shall upon consummation of such sale
or other disposition (except to the extent that such sale or disposition is to Holdings or another
Subsidiary thereof) be released from this Guaranty automatically and without further action and
this Guaranty shall, as to each such Guarantor or Guarantors, terminate, and have no further force
or effect (it being understood and agreed that the sale of one or more Persons that own, directly
or indirectly, all of the capital stock or other equity interests of any Guarantor shall be deemed
to be a sale of such Guarantor for the purposes of this Section 21).

     22. At any time a payment in respect of the Guaranteed Obligations is made under this
Guaranty, the right of contribution of each Guarantor against each other Guarantor shall be
determined as provided in the immediately following sentence, with the right of contribution of
each Guarantor to be revised and restated as of each date on which a payment (a “Relevant
Payment”) is made on the Guaranteed Obligations under this Guaranty. At any time that a
Relevant Payment is made by a Guarantor that results in the aggregate payments made by such
Guarantor in respect of the Guaranteed Obligations to and including the date of the Relevant
Payment exceeding such Guarantor’s Contribution Percentage (as defined below) of the aggregate
payments made by all Guarantors in respect of the Guaranteed Obligations to and including the date
of the Relevant Payment (such excess, the “Aggregate Excess Amount”), each such Guarantor
shall have a right of contribution against each other Guarantor who has made payments in respect of
the Guaranteed Obligations to and including the date of the Relevant Payment in an aggregate amount
less than such other Guarantor’s Contribution Percentage of the aggregate payments made to and
including the date of the Relevant Payment by all Guarantors in respect of the Guaranteed
Obligations (the aggregate amount of such deficit, the “Aggregate Deficit Amount”) in an
amount equal to (x) a fraction the numerator of which is the Aggregate Excess Amount of such
Guarantor and the denominator of which is the Aggregate Excess Amount of all Guarantors multiplied
by (y) the Aggregate Deficit Amount of such other Guarantor. A Guarantor’s right of contribution
pursuant to the preceding sentences shall arise at the time of each computation, subject to
adjustment to the time of each computation; provided that no Guarantor may take any action
to enforce such right until the Guaranteed Obligations have been irrevocably paid in full in cash
and the Total Commitment and all Letters of Credit have been terminated, it being expressly
recognized and agreed by all parties hereto that any Guarantor’s right of contribution arising
pursuant to this Section 22 against any other Guarantor shall be expressly junior and
subordinate to such other Guarantor’s obligations and liabilities in respect of the Guaranteed
Obligations and any other obligations owing under this Guaranty. As used in this Section
22: (i) each Guarantor’s “Contribution Percentage” shall mean the percentage obtained
by dividing (x) the Adjusted Net Worth (as defined below) of such

 

 

Guarantor by (y) the aggregate Adjusted Net Worth of all Guarantors; (ii) the “Adjusted
Net Worth” of each Guarantor shall mean the greater of (x) the Net Worth (as defined below) of
such Guarantor and (y) zero; and (iii) the “Net Worth” of each Guarantor shall mean the
amount by which the fair saleable value of such Guarantor’s assets on the date of any Relevant
Payment exceeds its existing debts and other liabilities (including contingent liabilities, but
without giving effect to any Guaranteed Obligations arising under this Guaranty or any guaranteed
obligations arising under any guaranty of the Senior Notes) on such date. Notwithstanding anything
to the contrary contained above, any Guarantor that is released from this Guaranty pursuant to
Section 21 hereof shall thereafter have no contribution obligations, or rights, pursuant to
this Section 22, and at the time of any such release, if the released Guarantor had an
Aggregate Excess Amount or an Aggregate Deficit Amount, same shall be deemed reduced to $0, and the
contribution rights and obligations of the remaining Guarantors shall be recalculated on the
respective date of release (as otherwise provided above) based on the payments made hereunder by
the remaining Guarantors. All parties hereto recognize and agree that, except for any right of
contribution arising pursuant to this Section 22, each Guarantor who makes any payment in
respect of the Guaranteed Obligations shall have no right of contribution or subrogation against
any other Guarantor in respect of such payment until all of the Guaranteed Obligations have been
irrevocably paid in full in cash (other than contingent indemnification obligations that are not
then due and payable). Each of the Guarantors recognizes and acknowledges that the rights to
contribution arising hereunder shall constitute an asset in favor of the party entitled to such
contribution. In this connection, each Guarantor has the right to waive its contribution right
against any Guarantor to the extent that after giving effect to such waiver such Guarantor would
remain solvent, in the reasonable determination of the Required Lenders.

     23. Each Guarantor and each Secured Creditor (by its acceptance of the benefits of this
Guaranty) hereby confirms that it is its intention that this Guaranty not constitute a fraudulent
transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act
of any similar Federal or state law. To effectuate the foregoing intention, each Guarantor and
each Secured Creditor (by its acceptance of the benefits of this Guaranty) hereby irrevocably
agrees that the Guaranteed Obligations guaranteed by such Guarantor shall be limited to such amount
as will, after giving effect to such maximum amount and all other (contingent or otherwise)
liabilities of such Guarantor that are relevant under such laws and after giving effect to any
rights to contribution pursuant to any agreement providing for an equitable contribution among such
Guarantor and the other Guarantors, result in the Guaranteed Obligations of such Guarantor in
respect of such maximum amount not constituting a fraudulent transfer or conveyance.

     24. This Guaranty may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.

 

 

     25. All payments made by any Guarantor hereunder will be made without setoff, counterclaim or
other defense and on the same basis as payments are made by the Borrower under Sections 4.03 and
4.04 of the Credit Agreement.

     26. It is understood and agreed that any Subsidiary of the Borrower that is required to
execute a counterpart of this Guaranty after the date hereof pursuant to the Credit Agreement shall
become a Guarantor hereunder by (x) executing and delivering a counterpart hereof (or a Joinder
Agreement) to the Administrative Agent and (y) taking all actions as specified in this Guaranty as
would have been taken by such Guarantor had it been an original party to this Guaranty, in each
case with all documents and actions required to be taken above to be taken to the reasonable
satisfaction of the Administrative Agent.

*    *    *

 

 

     IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of
the date first above written.

	 	 	 

	Address:

	 	TSI 217 BROADWAY, LLC
	c/o Town Sports International, LLC

	 	TSI ALEXANDRIA, LLC
	888 Seventh Avenue, 25th Floor

	 	TSI ALLSTON, LLC
	New York, NY 10106

	 	TSI ANDOVER, LLC
	Attention: Richard Pyle

	 	TSI ARDMORE, LLC
	Tel. No.: (212) 246-6700

	 	TSI ARTHRO-FITNESS SERVICES, LLC
	Fax No.: (212) 664-8906

	 	TSI ASTORIA, LLC
	 

	 	TSI BATTERY PARK, LLC
	 

	 	TSI BETHESDA, LLC
	 

	 	TSI BAY RIDGE 86TH STREET, LLC
	 

	 	TSI BAYRIDGE, LLC
	 

	 	TSI BOYLSTON, LLC
	 

	 	TSI BROADWAY, LLC
	 

	 	TSI BROOKLYN BELT, LLC
	 

	 	TSI BRUNSWICK, LLC
	 

	 	TSI BULFINCH, LLC
	 

	 	TSI BUTLER, LLC
	 

	 	TSI CARMEL, LLC
	 

	 	TSI CASH MANAGEMENT, LLC
	 

	 	TSI CENTRAL SQUARE, LLC
	 

	 	TSI CHERRY HILL, LLC
	 

	 	TSI CHEVY CHASE, LLC
	 

	 	TSI CLARENDON, LLC
	 

	 	TSI CLIFTON, LLC
	 

	 	TSI COBBLE HILL, LLC
	 

	 	TSI COLONIA, LLC
	 

	 	TSI COLUMBIA HEIGHTS, LLC
	 

	 	TSI COMMACK, LLC
	 

	 	TSI CONNECTICUT AVENUE, LLC
	 

	 	TSI COURT STREET, LLC
	 

	 	TSI CROTON, LLC
	 

	 	TSI DANBURY, LLC
	 

	 	TSI DOBBS FERRY, LLC
	 

	 	TSI DAVIS SQUARE, LLC
	 

	 	TSI DOWNTOWN CROSSING, LLC
	 

	 	TSI DUPONT CIRCLE, INC.
	 

	 	TSI DUPONT II, INC.,

     each as a Guarantor

 

 

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Richard Pyle
 	 
	 	 	Title:   Chief Financial Officer 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 

	Address:

	 	TSI EAST MEADOW, LLC
	c/o Town Sports International, LLC

	 	TSI EAST 23, LLC
	888 Seventh Avenue, 25th Floor

	 	TSI EAST 31, LLC
	New York, NY 10106

	 	TSI EAST 34, LLC
	Attention: Richard Pyle

	 	TSI EAST 36, LLC
	Tel. No.: (212) 246-6700

	 	TSI EAST 41, LLC
	Fax No.: (212) 664-8906

	 	TSI EAST 48, LLC
	 

	 	TSI EAST 51, LLC
	 

	 	TSI EAST 59, LLC
	 

	 	TSI EAST 76, LLC
	 

	 	TSI EAST 86, LLC
	 

	 	TSI EAST 91, LLC
	 

	 	TSI ENGLEWOOD, LLC
	 

	 	TSI F STREET, LLC
	 

	 	TSI FAIRFAX, LLC
	 

	 	TSI FENWAY, LLC
	 

	 	TSI FIFTH AVENUE, INC.
	 

	 	TSI FIRST AVENUE, LLC
	 

	 	TSI FOREST HILLS, LLC
	 

	 	TSI FORT LEE, LLC
	 

	 	TSI FRAMINGHAM, LLC
	 

	 	TSI FRANKLIN (MA), LLC
	 

	 	TSI FRANKLIN PARK, LLC
	 

	 	TSI FREEHOLD, LLC
	 

	 	TSI GALLERY PLACE, LLC
	 

	 	TSI GARDEN CITY, LLC
	 

	 	TSI GEORGETOWN, LLC
	 

	 	TSI GERMANTOWN, LLC
	 

	 	TSI GLENDALE, LLC
	 

	 	TSI GLOVER, LLC
	 

	 	TSI GRAND CENTRAL, LLC
	 

	 	TSI GREAT NECK, LLC
	 

	 	TSI GREENWICH, LLC
	 

	 	TSI HARTSDALE, LLC
	 

	 	TSI HAWTHORNE, LLC
	 

	 	TSI HERALD, LLC
	 

	 	TSI HICKSVILLE, LLC
	 

	 	TSI HIGHPOINT, LLC

TSI HOBOKEN, LLC
	 

	 	TSI HOBOKEN NORTH, LLC,
	 

	 	each as a Guarantor

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Richard Pyle
 	 
	 	 	Title:   Chief Financial Officer 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 

	Address:

	 	TSI HOLDINGS (CIP), LLC
	c/o Town Sports International, LLC

	 	TSI HOLDINGS (DC), LLC
	888 Seventh Avenue, 25th Floor

	 	TSI HOLDINGS (IP), LLC
	New York, NY 10106

	 	TSI HOLDINGS (MA), LLC
	Attention: Richard Pyle

	 	TSI HOLDINGS (MD), LLC
	Tel. No.: (212) 246-6700

	 	TSI HOLDINGS (NJ), LLC
	Fax No.: (212) 664-8906

	 	TSI HOLDINGS (PA), LLC
	 

	 	TSI HOLDINGS (VA), LLC
	 

	 	TSI HUNTINGTON, LLC
	 

	 	TSI INSURANCE, INC.
	 

	 	TSI INTERNATIONAL, INC.
	 

	 	TSI IRVING PLACE, LLC
	 

	 	TSI JERSEY CITY, LLC
	 

	 	TSI K STREET, LLC
	 

	 	TSI LARCHMONT, LLC
	 

	 	TSI LEXINGTON (MA), LLC
	 

	 	TSI LINCOLN, LLC
	 

	 	TSI LIVINGSTON, LLC
	 

	 	TSI LONG BEACH, LLC
	 

	 	TSI LYNNFIELD, LLC
	 

	 	TSI M STREET, LLC
	 

	 	TSI MADISON, INC.
	 

	 	TSI MAHWAH, LLC
	 

	 	TSI MAMARONECK, LLC
	 

	 	TSI MARKET STREET, LLC
	 

	 	TSI MARLBORO, LLC
	 

	 	TSI MATAWAN, LLC
	 

	 	TSI MERCER STREET, LLC
	 

	 	TSI MIDWOOD, LLC
	 

	 	TSI MONTCLAIR, LLC
	 

	 	TSI MORRIS PARK, LLC
	 

	 	TSI MURRAY HILL, LLC
	 

	 	TSI NANUET, LLC
	 

	 	TSI NATICK, LLC
	 

	 	TSI NEW ROCHELLE, LLC
	 

	 	TSI NEWARK, LLC
	 

	 	TSI NEWBURY STREET, LLC
	 

	 	TSI NEWTON, LLC
	 

	 	TSI NO SWEAT, LLC
	 

	 	TSI NORTH BETHESDA, LLC
	 

	 	TSI NORWALK, LLC,

     each as a Guarantor

 

 

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Richard Pyle
 	 
	 	 	Title:   Chief Financial Officer 	 
	 	 	 	 
	 

 

 

	 	 	 

	Address:

	 	TSI OCEANSIDE, LLC
	c/o Town Sports International, LLC

	 	TSI OLD BRIDGE, LLC
	888 Seventh Avenue, 25th Floor

	 	TSI PARSIPPANY, LLC
	New York, NY 10106

	 	TSI PLAINSBORO, LLC
	Attention: Richard Pyle

	 	TSI PORT JEFFERSON, LLC
	Tel. No.: (212) 246-6700

	 	TSI PRINCETON, LLC
	Fax No.: (212) 664-8906

	 	TSI PRINCETON NORTH, LLC
	 

	 	TSI RADNOR, LLC
	 

	 	TSI RAMSEY, LLC
	 

	 	TSI READE STREET, LLC
	 

	 	TSI REGO PARK, LLC
	 

	 	TSI RIDGEWOOD, LLC
	 

	 	TSI RODIN PLACE, LLC
	 

	 	TSI RYE, INC.
	 

	 	TSI SCARSDALE, LLC
	 

	 	TSI SEAPORT, LLC
	 

	 	TSI SHERIDAN, LLC
	 

	 	TSI SILVER SPRING, LLC
	 

	 	TSI SMITHTOWN, LLC
	 

	 	TSI SOCIETY HILL, LLC
	 

	 	TSI SOHO, LLC
	 

	 	TSI SOMERS, LLC
	 

	 	TSI SOMERSET, LLC
	 

	 	TSI SOUTH BETHESDA, LLC
	 

	 	TSI SOUTH END, LLC
	 

	 	TSI SOUTH PARK SLOPE, LLC
	 

	 	TSI SOUTH STATION, LLC
	 

	 	TSI SPRINGFIELD, LLC
	 

	 	TSI STAMFORD DOWNTOWN, LLC
	 

	 	TSI STAMFORD POST, LLC
	 

	 	TSI STAMFORD RINKS, LLC
	 

	 	TSI STATEN ISLAND, LLC
	 

	 	TSI STERLING, LLC
	 

	 	TSI SYOSSET, LLC
	 

	 	TSI UNIVERSITY MANAGEMENT, LLC
	 

	 	TSI VARICK STREET, LLC
	 

	 	TSI WALL STREET, LLC
	 

	 	TSI WALTHAM, LLC
	 

	 	TSI WASHINGTON, INC.
	 

	 	TSI WATER STREET, LLC
	 

	 	TSI WATERTOWN, LLC,
	 

	 	each as a Guarantor

 

 

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Richard Pyle
 	 
	 	 	Title:   Chief Financial Officer 	 
	 	 	 	 
	 

 

 

	 	 	 

	Address:

	 	TSI WELLESLEY, LLC
	c/o Town Sports International, LLC

	 	TSI WELLINGTON CIRCLE, LLC
	888 Seventh Avenue, 25th Floor

	 	TSI WEST CALDWELL, LLC
	New York, NY 10106

	 	TSI WEST NEWTON, LLC
	Attention: Richard Pyle

	 	TSI WEST NYACK, LLC
	Tel. No.: (212) 246-6700

	 	TSI WEST SPRINGFIELD, LLC
	Fax No.: (212) 664-8906

	 	TSI WEST 14, LLC
	 

	 	TSI WEST 16, LLC
	 

	 	TSI WEST 23, LLC
	 

	 	TSI WEST 38, LLC
	 

	 	TSI WEST 41, LLC
	 

	 	TSI WEST 44, LLC
	 

	 	TSI WEST 48, LLC
	 

	 	TSI WEST 52, LLC
	 

	 	TSI WEST 73, LLC
	 

	 	TSI WEST 76, LLC
	 

	 	TSI WEST 80, LLC
	 

	 	TSI WEST 94, LLC
	 

	 	TSI WEST 115TH STREET, LLC
	 

	 	TSI WEST 125, LLC
	 

	 	TSI WEST 145TH STREET, LLC
	 

	 	TSI WESTPORT, LLC
	 

	 	TSI WESTWOOD, LLC
	 

	 	TSI WEYMOUTH, LLC
	 

	 	TSI WHITE PLAINS CITY CENTER, LLC
	 

	 	TSI WHITE PLAINS, LLC
	 

	 	TSI WHITESTONE, LLC
	 

	 	TSI WOODMERE, LLC,

     each as a Guarantor

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Richard Pyle
 	 
	 	 	Title:   Chief Financial Officer 	 
	 	 	 	 
	 

 

 

Accepted and Agreed to:

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Administrative Agent

	 	 	 	 	 

	By:

	 	/s/ Carin Keegan
 

Title: Vice President
	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mary Kay Coyle
 

Title: Managing Director
	 	 

 

 

EXHIBIT J

SOLVENCY CERTIFICATE

To the Administrative Agent and each of the Lenders

party to the Credit Agreement referred to below:

     I, the undersigned, the Chief Financial Officer of Town Sports International Holdings, Inc.
(“Holdings”), a Delaware corporation, in that capacity only and not in my individual
capacity (and without personal liability), do hereby certify on behalf of Holdings as of the date
hereof that, based upon current assumptions which I do not believe to be unreasonable in light of
the circumstances applicable thereto:

     1. This Certificate is furnished to the Administrative Agent and the Lenders pursuant to
Section 6.13(i) of the Credit Agreement, dated as of May [__], 2011 among Holdings, Town Sports
International, LLC (the “Borrower”), the lenders from time to time party thereto (each, a
“Lender” and, collectively, the “Lenders”) and Deutsche Bank Trust Company
Americas, as Administrative Agent (the “Administrative Agent”) (the “Credit
Agreement”). Unless otherwise defined herein, capitalized terms used in this Certificate shall
have the meanings set forth in the Credit Agreement.

     2. For purposes of this Certificate, the terms below shall have the following definitions:

	 	(a)	 	“Fair Value”
	 
	 	 	 	The amount at which the assets (both tangible and intangible), in their
entirety, of Holdings and its Subsidiaries (taken as a whole) would change
hands between a willing buyer and a willing seller, within a commercially
reasonable period of time, each having reasonable knowledge of the relevant
facts, with neither being under any compulsion to act.
	 
	 	(b)	 	“Present Fair Salable Value”
	 
	 	 	 	The amount that could be obtained by an independent willing seller from an
independent willing buyer if the assets of Holdings and its Subsidiaries
(taken as a whole) are sold with reasonable promptness in an arm’s-length
transaction under present conditions for the sale of comparable business
enterprises.
	 
	 	(c)	 	“New Financing”
	 
	 	 	 	All Indebtedness incurred or to be incurred by Holdings and its Subsidiaries
in connection with the Transaction (including Indebtedness under the Credit
Documents (assuming the full utilization by the Borrower of the Commitments
(except for any Incremental Term Loan

 

 

	 	 	 	Commitment) under the Credit Agreement) and all other financings
contemplated by the other Credit Documents), in each case after giving
effect to the Transaction and the incurrence of all financings, redemptions
and repayments in connection therewith.
	 
	 	(d)	 	“Stated Liabilities”
	 
	 	 	 	The recorded liabilities (including contingent liabilities that would be
recorded in accordance with GAAP) of Holdings and its Subsidiaries (taken as
a whole) as of the date hereof after giving effect to the consummation of
the Transaction (which, for purposes of this Certificate, shall include the
retirement and repayment on the Initial Borrowing Date of indebtedness in
respect of the Refinancing and the Existing Holdings Notes Redemption Date,
in each case with the proceeds of the New Financing), determined in
accordance with GAAP consistently applied, together with the amount of the
New Financing.
	 
	 	(e)	 	“Identified Contingent Liabilities”
	 
	 	 	 	The maximum estimated amount of liabilities reasonably likely to result from
pending litigation, asserted claims and assessments, guaranties, uninsured
risks and other contingent liabilities (other than such contingent
liabilities included within the term “Stated Liabilities”) of Holdings and
its Subsidiaries (taken as a whole), after giving effect to the Transaction
(including all fees and expenses related thereto but exclusive of such
contingent liabilities to the extent reflected in Stated Liabilities), as
identified and explained in terms of their nature and estimated magnitude by
responsible officers of Holdings and the Borrower or that have been
identified as such by an officer of Holdings or the Borrower, determined in
accordance with GAAP.
	 
	 	(f)	 	“will be able to pay its or their respective Stated
Liabilities and Identified Contingent Liabilities as they mature or otherwise
become payable”
	 
	 	 	 	For the period from the date hereof through the stated maturity of all New
Financing, Holdings and its Subsidiaries (taken as a whole) will have
sufficient assets and cash flow to pay its or their respective Stated
Liabilities and Identified Contingent Liabilities as those liabilities
mature or otherwise become payable.
	 
	 	(g)	 	“does or do not have Unreasonably Small Capital”
	 
	 	 	 	For the period from the date hereof through the stated maturity of all New
Financing, Holdings and its Subsidiaries (taken as a whole) after
consummation of the Transaction and all Indebtedness (including the Loans)
being incurred, issued (including the Loans and Letters of Credit)

 

 

	 	 	 	and Liens created by Holdings and its Subsidiaries in connection therewith,
are a going concern and have sufficient capital to ensure that they will
continue to be a going concern (as such term is determined in accordance
with GAAP) for such period and to remain a going concern.

     3. For purposes of this Certificate, I, or officers of Holdings and/or its Subsidiaries under
my direction and supervision, have performed the following procedures as of and for the periods set
forth below.

	 	(a)	 	Reviewed the financial statements (including the pro
forma financial statements) referred to in Section 8.05 of the Credit
Agreement.
	 
	 	(b)	 	Made inquiries of certain officials of Holdings and its
Subsidiaries who have responsibility for financial and accounting matters
regarding (i) the existence and amount of Identified Contingent Liabilities
associated with the business of Holdings and its Subsidiaries and (ii) whether
the financial statements referred to in paragraph (a) above are in conformity
with GAAP applied on a basis consistent with that of Holdings’ audited
financial statements as of December 31, 2010.
	 
	 	(c)	 	Reviewed to my satisfaction the Credit Documents and the
respective Schedules and Exhibits thereto.
	 
	 	(d)	 	With respect to Identified Contingent Liabilities:

	 	1.	 	inquired of certain officials of Holdings
and/or its Subsidiaries who have responsibility for legal, financial
and accounting matters as to the existence and estimated liability with
respect to all contingent liabilities associated with the business of
Holdings and its Subsidiaries;
	 
	 	2.	 	confirmed with officers of Holdings and/or its
Subsidiaries that, to the best of such officers’ knowledge, (i) all
appropriate items were included in Stated Liabilities or Identified
Contingent Liabilities and that (ii) the amounts relating thereto were
the maximum estimated amount of liabilities reasonably likely to result
therefrom as of the date hereof; and
	 
	 	3.	 	to the best of my knowledge, in making the
certification set forth in paragraph 4 below, considered all material
Identified Contingent Liabilities that may arise from any pending
litigation, asserted claims and assessments, guarantees, uninsured
risks and other Identified Contingent Liabilities of Holdings and its
Subsidiaries (exclusive of such Identified Contingent Liabilities to
the extent reflected in Stated Liabilities) (after giving effect to the
Transaction) and with respect to each such Identified Contingent

 

 

	 	 	 	Liability the estimable maximum amount of liability with respect
thereto was used in making such certification.

	 	(e)	 	Made inquiries of certain officers of Holdings and/or its
Subsidiaries who have responsibility for financial reporting and accounting
matters regarding whether they were aware of any events or conditions that, as
of the date hereof, would cause Holdings and its Subsidiaries (taken as a
whole), after giving effect to the consummation of the Transaction and the
related financing transactions (including the incurrence of the New Financing),
to (i) have assets with a Fair Value or Present Fair Salable Value that are
less than the sum of its or their Stated Liabilities and Identified Contingent
Liabilities; (ii) have Unreasonably Small Capital; or (iii) not be able to pay
its or their respective Stated Liabilities and Identified Contingent
Liabilities as they mature or otherwise become payable.
	 
	 	(f)	 	Had the Projections relating to Holdings and/or its
Subsidiaries which have been previously delivered to the Administrative Agent
and the Lenders, prepared under my direction based on good faith estimates and
assumptions, and have re-examined the Projections on the date hereof and
considered the effect thereon of any changes since the date of the preparation
thereof on the results projected therein.
	 
	 	4.	 	Based on and subject to the foregoing, I hereby certify on
behalf of Holdings that, on and as of the date hereof and after giving effect
to the consummation of the Transaction and the related financing transactions
(including the incurrence of the New Financing), it is my opinion that (i) the
Fair Value and Present Fair Salable Value of Holdings and its Subsidiaries
(taken as a whole) exceed their respective Stated Liabilities and Identified
Contingent Liabilities; (ii) Holdings and its Subsidiaries (taken as a whole)
do not have Unreasonably Small Capital; and (iii) Holdings and its Subsidiaries
(taken as a whole) intend to and believes that they will be able to pay their
respective Stated Liabilities and Identified Contingent Liabilities as they
mature or otherwise become payable.
	 
	 	5.	 	Holdings and the Borrower do not intend, in consummating the
transactions contemplated by the New Financing, to delay, hinder, or defraud
either present or future creditors.

     IN WITNESS WHEREOF, Holdings has caused this certificate to be executed on its behalf by the
Chief Financial Officer of Holdings this [___]th day of April, 2011.

 

 

	 	 	 	 	 	 	 

	 	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Dan Gallagher
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

 

 

EXHIBIT K

COMPLIANCE CERTIFICATE

     This Compliance Certificate is delivered to you pursuant to Section 9.01(e) of the Credit
Agreement, dated as of May [__], 2011 (as amended, restated, supplemented and/or modified from time
to time, the “Credit Agreement”), among Town Sports International Holdings, Inc., Town
Sports International, LLC, the lenders from time to time party thereto and Deutsche Bank Trust
Company Americas, as Administrative Agent. Terms defined in the Credit Agreement and not otherwise
defined herein are used herein as therein defined.

     1. I am the duly elected, qualified and acting [Insert title of the Authorized Financial
Officer] and deliver this Compliance Certificate in such capacity and not in my individual
capacity.

     2. I have reviewed and am familiar with the contents of this Compliance Certificate. The
matters set forth herein are true to the best of my knowledge after due inquiry.

     3. I have reviewed the terms of the Credit Agreement and the other Credit Documents and have
made or caused to be made under my supervision a review in reasonable detail of the transactions
and condition of Holdings and its Subsidiaries during the accounting period covered by the
financial statements attached hereto as ANNEX 1 (the “Financial Statements”). Such review did not
disclose the existence during or at the end of the accounting period covered by the Financial
Statements, and I have no knowledge of the existence, as of the date of this Compliance
Certificate, of any condition or event which constitutes a Default or an Event of Default [, except
as set forth below].

     4. Attached hereto as ANNEX 2 are the computations showing (in reasonable detail) compliance
with the covenants specified therein.

     5. Attached hereto as ANNEX 3 is the information required by Section 9.01(e)(iii) of the
Credit Agreement as of the date of this Compliance Certificate and Holdings and its Subsidiaries
have taken all actions required to be taken by them pursuant to the respective Security Documents
in connection with the information set forth on ANNEX 3.

     6. Attached hereto as ANNEX 4 is the information required to establish compliance with
Sections 5.02(d) and (f) of the Credit Agreement for the Relevant Period (as defined in Annex 2
hereto).

     [7. Attached hereto as ANNEX 5 is the information required by Section 9.01(e)(ii) of the
Credit Agreement as of the date of this Compliance Certificate.]1

 

			
	1	 	Insert only for a Relevant Period ending on
December 31 in any fiscal year of Holdings (commencing with the fiscal year
ending December 31, 2012).

 

 

Page 2

     IN WITNESS WHEREOF, I have executed this Compliance Certificate this ____ day of 20_.

	 	 	 	 	 	 	 

	 	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

ANNEX 1

[Applicable Financial Statements To Be Attached]

 

 

ANNEX 2

     The information described herein is as of                                         ,
                     (the “Computation Date”)
and, except as otherwise indicated below, pertains to the period from [the Initial Borrowing Date]
[                                        ,
20                    ]19 through the Computation Date (the “Relevant Period”).

	 	 	 	 	 
	 	 	Period or Date of Determination	 	Amount
	Negative and Financial Covenants	 	 	 	 
	 
	 	 	 	 
	A. Liens (Section 10.01)
	 	 	 	 
	(i) Section 10.01(x)
	 	Amount outstanding on Computation Date	 	$                    
	(ii) Section 10.01(xvi)
	 	Amount outstanding on Computation Date	 	
$                    
	 
	 	 	 	 
	B. Asset Sales, etc. (Section 10.02)
	 	 	 	 
	Section 10.02(iv)
	 	Aggregate proceeds received during  Relevant Period	 	$                    
	 
	 	 	 	 
	C. Dividends (Section 10.03)
	 	 	 	 
	(i) Section 10.03(iii)
	 	Aggregate amount made during Relevant Period	 	$                     (of which (x) $                     represents amounts funded with proceeds from the issuance of Holdings’ common stock to officers, directors or employees of Holdings and its Subsidiaries and (y)
$                     represents amounts funded with key-man life insurance proceeds)
	(ii) Section 10.03(v)
	 	Aggregate amount made during Relevant Period	 	$                    
	(iii) Section 10.03(vi)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	(iv) Section 10.03(vii)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	(v) Section 10.03(viii)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	 
	 	 	 	 
	D. Indebtedness (Section 10.04)
	 	 	 	 
	(i) Section 10.04(iii)
	 	Amount outstanding on Computation Date	 	$                    
	(ii) Section 10.04(v)
	 	Amount outstanding on Computation Date	 	$                    
	(iii) Section 10.04(x)
	 	Amount outstanding on Computation Date	 	$                    

 

			
	19	 	Insert the first day of Holdings’ respective
fiscal year; provided that, with respect to the Compliance Certificates
delivered in respect of each Relevant Period ending on or prior to December 31,
2011, insert the Initial Borrowing Date.

 

 

Page
2

	 	 	 	 	 
	 	 	Period or Date of Determination	 	Amount
	Negative and Financial Covenants	 	 	 	 
	E. Investments (Section 10.05)
	 	 	 	 
	(i) Section 10.05(vii)
	 	 	 	 
	(a) Non-Guarantor Subsidiaries
	 	Amount outstanding on Computation Date	 	$                    
	(b) Captive Insurance Company
	 	Amount outstanding on Computation Date	 	$                    
	(ii) Section 10.05(viii)
	 	 	 	 
	(a) Captive Insurance Company
	 	Amount outstanding on Computation Date	 	$                    
	(b) Non-Guarantor Subsidiaries
	 	Amount outstanding on Computation Date	 	$                    
	(iii) Section 10.05(xiii)
	 	Amount outstanding on Computation Date	 	$                    
	(iv) Section 10.05(xiv)
	 	Amount made since the Initial Borrowing Date	 	$                    
	(v) Section 10.05(xv)
	 	Amount made since the Initial Borrowing Date	 	$                    
	F. Financial Covenant
	 	 	 	 
	Interest Expense Coverage Ratio

(Section 10.07(a))
	 	 	 	 
	(a) Consolidated
EBITDA20 for the
Test Period ended on the
Computation Date
	 	 	 	$                    
	(b) Consolidated Interest
Expense21 for
the Test Period
ended on the Computation
Date
	 	 	 	$                    
	(c) Ratio of line (a) to (b)
	 	 	 	           :1.00
	(d) Required Covenant Level
	 	 	 	           :1.00
	Total Leverage Ratio (Section
10.07(b))
	 	 	 	 
	(a) Consolidated
Indebtedness22 as at
Computation Date
	 	 	 	$                    
	(b) Consolidated
EBITDA23 for the
Test Period ended on the
Computation Date
	 	 	 	$                    
	(c) Ratio of line (a) to (b)
	 	 	 	           :1.00
	(d) Required Covenant Level
	 	 	 	           :1.00
	G. Limitations on Payment of Permitted
Unsecured Debt (Section 10.08(i))
	 	 	 	 

 

			
	20	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated EBITDA for purposes of the
Interest Expense Coverage Ratio.
	 
	21	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated Interest Expense.
	 
	22	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated Indebtedness.
	 
	23	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated EBITDA for purposes of the
Total Leverage Ratio.
	 

 

 

Page
3

	 	 	 	 	 
	 	 	Period or Date of Determination	 	Amount
	          Negative and Financial Covenants	 	 	 	 
	(i) Section 10.08(i)(x)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	(ii) Section 10.08(i)(y)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	(iii) Section 10.08(i)(z)
	 	Aggregate amount made since the Initial Borrowing Date	 	$                    
	H. Limitations on Capital Expenditures
(Section 10.13)
	 	 	 	 
	(i) Section 10.13(a)
	 	Aggregate amount made during Relevant Period	 	$                    
	(ii) Section 10.13(b)
	 	Aggregate amount made during Relevant Period	 	$                    
	(iii) Section 10.13(c)
	 	Aggregate amount made during Relevant Period	 	$                    
	(iv) Section 10.13(d)
	 	Aggregate amount made during Relevant Period	 	$                    
	(v) Section 10.13(e)
	 	Aggregate amount made during Relevant Period	 	$                    
	I. Secured Leverage Ratio
	 	 	 	 
	(a) Consolidated Secured
	 	 	 	$                    
	Indebtedness24 as at
Computation Date
	 	 	 	 
	(b) Consolidated
EBITDA25 for the
Test Period  ended on the
Computation Date
	 	 	 	$                    
	(c) Ratio of line (a) to (b)
	 	 	 	          :1.00

 

			
	24	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated Secured Indebtedness.
	 
	25	 	Attach hereto in reasonable detail the
calculations required to arrive at Consolidated EBITDA for purposes of the
Secured Leverage Ratio.

 

 

ANNEX 3

     1. It is hereby certified that no changes are required to be made pursuant to the terms
of the Security Documents to any of Annexes B through G, inclusive, in each case of
the Security Agreement, Annexes A through F of the Pledge Agreement, in each case
so as to make the information set forth therein accurate and complete as of date of this
Certificate[, except as specifically set forth below:

                         

                         

                         

 

 

ANNEX 4

     1. [During the Relevant Period, (i) the aggregate sale proceeds and Net Sale Proceeds received
by Holdings and its Subsidiaries from all Asset Sales were $                     and $                    , respectively,
of which (x) $                     has been applied as a mandatory repayment pursuant to Section 5.02(d) of the
Credit Agreement, (y) $                     has been reinvested as permitted by Section 5.02(d) of the Credit
Agreement, and (z) $                     has not yet been applied as a mandatory repayment or
reinvestment.]26 [During the Relevant Period, neither Holdings nor any of its
Subsidiaries has made any Asset Sale.]

     2. [During the Relevant Period, the aggregate cash proceeds and Net Cash Proceeds received by
Holdings and its Subsidiaries from all Recovery Events were $                     and $                    , respectively,
of which (x) $                     has been applied as a mandatory repayment pursuant to Section 5.02(f) of
the Credit Agreement, (y) $                     has been reinvested as permitted by Section 5.02(f) of the
Credit Agreement, and (z) $                     has not yet been applied as a mandatory repayment or
reinvestment.]27 [During the Relevant Period, neither Holdings nor any of its
Subsidiaries has received any cash proceeds from any Recovery Event.]

 

			
	26	 	If Holdings or any of its Subsidiaries has
received such Net Sale Proceeds during the Relevant Period, the certificate
should describe the amounts and dates of the receipt thereof, as well as the
amounts and dates of the required mandatory repayments pursuant to Section
5.02(d) of the Credit Agreement, together with the certification that such
payments have in fact been made.
	 
	27	 	If Holdings or any of its Subsidiaries has
received any such applicable proceeds from any Recovery Event during the
Relevant Period, the certificate should describe same and state the date of
each receipt thereof and the amount of such proceeds received on each such
date, together with sufficient information as to mandatory repayments and/or
reinvestments thereof to determine compliance with Section 5.02(f) of the
Credit Agreement, together with a statement that the Borrower is in compliance
with the requirements of said Section 5.02(f).

 

 

EXHIBIT K

     1. For the applicable Excess Cash Flow Payment Period, the Excess Cash Flow is $_____________
and the Applicable Excess Cash Flow Repayment Percentage is __%.28

     2. As of the Computation Date, the Cumulative Retained Excess Cash Flow Amount is
$_____________ .29

 

			
	28	 	This certification is only required in the
case of a compliance certificate delivered with annual financial statements
pursuant to Section 9.01(b) of the Credit Agreement. The certificate should
describe in reasonable detail the calculations necessary to determine the
amount of Excess Cash Flow for the applicable Excess Cash Flow Payment Period
as well as the Applicable Excess Cash Flow Repayment Percentage and the amount
and dates of the required mandatory repayments pursuant to Section 5.02(e) of
the Credit Agreement, together with the certification that the required
mandatory repayments have been (or will be) made on the Excess Cash Flow
Payment Date.
	 
	29	 	The certificate should describe in
reasonable detail the calculation necessary to determine the amount of
Cumulative Retained Excess Cash Flow as of the Computation Date.

 

 

EXHIBIT L

FORM OF ASSIGNMENT

AND

ASSUMPTION AGREEMENT30

     This Assignment and Assumption Agreement (this “Assignment”), is dated as of the
Effective Date set forth below, and is entered into by and between [the] [each] Assignor identified
in item [1] [2] below ([the] [each, an] “Assignor”) and [[the] [each] Assignee identified
in item 2 below ([the] [each, an] “Assignee”). [It is understood and agreed that the
rights and obligations of such [Assignees] [and Assignors] hereunder are several and not joint.]
Capitalized terms used herein but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (as amended, restated, supplemented and/or otherwise modified
from time to time, the “Credit Agreement”). The Standard Terms and Conditions for this
Assignment set forth in Annex 1 hereto (the “Standard Terms and Conditions”) are hereby
agreed to and incorporated herein by reference and made a part of this Assignment as if set forth
herein in full.

     For an agreed consideration, [the] [each] Assignor hereby irrevocably sells and assigns to
[the] [each] Assignee, and [the] [each] Assignee hereby irrevocably purchases and assumes from
[the] [each] Assignor, subject to and in accordance with the Standard Terms and Conditions and the
Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated
below, the interest in and to all of [the] [each] Assignor’s rights and obligations under the
Credit Agreement and any other documents or instruments delivered pursuant thereto that represent
the amount and percentage interest identified below of all of the respective Assignor’s outstanding
rights and obligations under the respective Tranches identified below (including, to the extent
included in any such Tranches, Letters of Credit and Swingline Loans) ([the] [each, an]
“Assigned Interest”). [Such] [Each] sale and assignment is without recourse to [the] [any]
Assignor and, except as expressly provided in this Assignment, without representation or warranty
by [the] [any] Assignor.

	 	 	 	 	 

	[1. Assignor:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	2. Assignee:

	 	 
 

	]31 
	 
	 	 	 	 

			
	[1.][3.] Credit Agreement:	 	Credit Agreement, dated as of May [__],
2011, among Town Sports International
Holdings, Inc., Town Sports International,
LLC, the Lenders party thereto from time
to time and Deutsche

 

			
	30	 	This Form of Assignment and Assumption
Agreement should be used by Lenders for an assignment to a single Assignee or
to funds managed by the same or related investment managers.
	 
	31	 	If the form is used for a single Assignor
and Assignee, items 1 and 2 should list the Assignor and Assignee,
respectively. In the case of an assignment to funds managed by the same or
related investment managers, or an assignment by multiple Assignors, the
Assignors and the Assignees should be listed in the table under bracketed item
2 below.

 

 

EXHIBIT L

Bank Trust Company Americas, as Administrative Agent
(such Credit Agreement, as in affect on the date of this
Assignment, being herein called the “Credit Agreement”).

[2. Assigned Interest:32

	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of Commitment/Loan
	Tranche	 	Commitment/Loans under Relevant	 	under Relevant Tranche
	Assigned33	 	Tranche for all Lenders	 	Assigned
	[Name of       [Name of
	 			 	 			 
	Assignor]      Assignee]
	 	$	                    	 	 	$	                    	 
	 
	 	 	 	 	 	 	 	 
	[Name of       [Name of
	 			 	 			 
	Assignor]      Assignee]
	 	$	                    	 	 	$	                    
	 

[4.      Assigned Interest:34

	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of Commitment/Loans	 	Amount of Commitment/Loan under
	Tranche Assigned	 	under Relevant Tranche for all Lenders	 	Relevant Tranche Assigned
	Initial Term Loan
	 	$	                    	 	 	$	                    	 
	 
	 	 	 	 	 	 	 	 
	Incremental Term Loans
	 	$	                    	 	 	$	                    	 
	 
	 	 	 	 	 	 	 	 
	Revolving Loan
Commitment/ Revolving
Loans
	 	$	                    	 	 	$	                    	 

Effective Date ___________, ____, 20_.

 

			
	32	 	Insert this chart if this Form of Assignment
and Assumption Agreement is being used for assignments to funds managed by the
same or related investment managers or for an assignment by multiple Assignors.
Insert additional rows as needed.
	 
	33	 	For complex multi-Tranche assignments a
separate chart for each Tranche should be used for ease of reference.
	 
	34	 	Insert this chart if this Form of Assignment
and Assumption is being used by a single Assignor for an assignment to a single
Assignee.

 

 

EXHIBIT L

	 	 	 	 	 	 	 	 	 
	Assignor[s] Information	 	 	 	Assignee[s] Information	 	 	 	 
	Payment Instructions:

	 	 	 	Payment Instructions:	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Reference:
 

	 	 	 	Reference:
                      
	 	 
	 
	 	 	 	 	 	 	 	 
	Notice Instructions:

	 	 	 	Notice Instructions:	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Reference:  

	 	 	 	Reference:                     	 	 

The terms set forth in this Assignment are hereby agreed to:

	 	 	 	 	 	 	 	 	 

	ASSIGNOR	 	ASSIGNEE	 	 
	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]35	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Name:
	 	 	 	 

Name:
	 	 
	 

	 	Title:
	 	 	 	Title:	 	 

 

			
	35	 	Add additional signature blocks, as
needed, if this Form of Assignment and Assumption Agreement is being
used by funds managed by the same or related investment managers.

 

 

EXHIBIT L

[Consented to and]36 Accepted:

DEUTSCHE BANK TRUST COMPANY AMERICAS,

	 	 	 	 	 

	 	 	as Administrative Agent
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[TOWN SPORTS INTERNATIONAL, LLC]
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 	 	Title:]37
	 
	 	 	 	 
	[DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 	 	as Swingline Lender
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[NAME OF EACH ISSUING LENDER]

 

			
	36	 	Insert only if assignment is being made to an
Eligible Transferee pursuant to Section 13.04(b)(y) of the Credit Agreement.
Consent of the Administrative Agent shall not be unreasonably withheld or
delayed.
	 
	37	 	Insert only if (i) no Event of Default under
Section 11.01 or 11.05 of the Credit Agreement (other than with respect to an
Immaterial Subsidiary) is then in existence and (ii) the assignment is being
made to an Eligible Transferee pursuant to Section 13.04(b)(y) of the Credit
Agreement. Consent of the Borrower shall not be unreasonably withheld or
delayed, provided that the Borrower shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the
Administrative Agent within 5 Business Days of receiving notice thereof.

 

 

EXHIBIT L

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:]38	 	 

 

			
	38	 	Insert for any assignment of Revolving Loan
Commitments (and related Obligations) pursuant to Section 13.04(b)(y) of the
Credit Agreement. Consent of the Swingline Lender and each Issuing Lender not
to be unreasonably withheld or delayed.

 

 

EXHIBIT M

JOINDER AGREEMENT

     THIS JOINDER IN SUBSIDIARIES GUARANTY, SECURITY AGREEMENT AND PLEDGE AGREEMENT (this
“Joinder”) is executed as of [DATE] by [NAME OF NEW SUBSIDIARY], a __________ [corporation]
[limited liability company] [partnership] (“Joining Party”), and delivered to DEUTSCHE BANK
TRUST COMPANY AMERICAS, as Administrative Agent and Collateral Agent, for the benefit of the
Secured Creditors (as defined below). Except as otherwise defined herein, capitalized terms used
herein and defined in the Credit Agreement (as defined below) shall be used herein as therein
defined.

W
I T N E S S E
T H :

     WHEREAS, Town Sports International Holdings, Inc. (“Holdings”), Town Sports
International, LLC (the “Borrower”), the lenders from time to time party thereto (the
“Lenders”), and Deutsche Bank Trust Company Americas, as administrative agent (together
with any successor administrative agent, the “Administrative Agent”), have entered into a
Credit Agreement, dated as of May [__], 2011 (as amended, modified, restated and/or supplemented
from time to time, the “Credit Agreement”), providing for the making of Loans to the
Borrower and the issuance of, and participation in, Letters of Credit for the account of the
Borrower, all as contemplated therein (the Lenders, the Issuing Lenders, the Administrative Agent
and the Collateral Agent are herein called the “Lender Creditors”);

     WHEREAS, the Borrower and/or one or more of its Subsidiaries may at any time and from time to
time enter into one or more Interest Rate Protection Agreements or Other Hedging Agreements with
one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with
such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other
Creditors” and, together with the Lender Creditors, the “Secured Creditors”);

     WHEREAS, the Joining Party is a direct or indirect Wholly-Owned Domestic Subsidiary of the
Borrower and desires, or is required pursuant to the provisions of the Credit Agreement, to become
a Subsidiary Guarantor under the Subsidiaries Guaranty, an Assignor under, and as defined in, the
Security Agreement (an “Assignor”), and a Pledgor under, and as defined in, the Pledge
Agreement (a “Pledgor”); and

     WHEREAS, the Joining Party will obtain benefits from the incurrence of Loans by, and the
issuance of Letters of Credit for the account of, the Borrower, in each case pursuant to the Credit
Agreement and the entering into by the Borrower and/or one or more of its other Subsidiaries of
Interest Rate Protection Agreements and Other Hedging Agreements and, accordingly, desires to
execute this Joinder in order to satisfy the requirements described in the preceding recital;

     NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to the Joining
Party, the receipt and sufficiency of which are hereby acknowledged, the

 

 

EXHIBIT M

Joining Party hereby makes the following representations and warranties to the Secured
Creditors and hereby covenants and agrees with each Secured Creditor as follows:

     NOW, THEREFORE, the Joining Party agrees as follows:

     1. By this Joinder, the Joining Party becomes (i) a Subsidiary Guarantor for all purposes
under the Subsidiaries Guaranty, pursuant to Section 25 thereof, (ii) an Assignor for all purposes
under the Security Agreement, pursuant to Section 10.12 thereof, and (iii) a Pledgor for all
purposes under the Pledge Agreement, pursuant to Section 29 thereof.

     2. The Joining Party agrees that, upon its execution hereof, it will become a Subsidiary
Guarantor under the Subsidiaries Guaranty with respect to all Guaranteed Obligations (as defined in
the Subsidiaries Guaranty), and will be bound by all terms, conditions and duties applicable to a
Subsidiary Guarantor under the Subsidiaries Guaranty and the other Credit Documents. Without
limitation of the foregoing, and in furtherance thereof, the Joining Party unconditionally,
absolutely and irrevocably guarantees on a joint and several basis the due and punctual payment and
performance of all Guaranteed Obligations (on the same basis as the other Subsidiary Guarantors
under the Subsidiaries Guaranty).

     3. The Joining Party agrees that, upon its execution hereof, it will become a Pledgor under
the Pledge Agreement, and will be bound by all terms, conditions and duties applicable to a Pledgor
under the Pledge Agreement. Without limitation of the foregoing and in furtherance thereof, as
security for the due and punctual payment of the Obligations (as defined in the Pledge Agreement),
the Joining Party hereby grants, pledges and assigns to the Collateral Agent for the benefit of the
Secured Creditors and hereby grants to the Collateral Agent for the benefit of the Secured
Creditors a continuing security interest in all Pledge Agreement Collateral, if any, now owned or,
to the extent provided in the Pledge Agreement, hereafter acquired by it.

     4. The Joining Party agrees that, upon its execution hereof, it will become an Assignor under
the Security Agreement, and will be bound by all terms, conditions and duties applicable to an
Assignor under the Security Agreement. Without limitation of the foregoing and in furtherance
thereof, as security for the due and punctual payment of the Obligations (as defined in the
Security Agreement), the Joining Party hereby assigns and transfers unto the Collateral Agent for
the benefit of the Secured Creditors and hereby pledges and grants to the Collateral Agent for the
benefit of the Secured Creditors, a continuing security interest in all Security Agreement
Collateral, if any, now owned or, to the extent provided in the Security Agreement, hereafter
acquired by it.

     5. In connection with the grant by the Joining Party, pursuant to paragraph 3 above, of a
security interest in all of its right, title and interest in the Pledge Agreement Collateral in
favor of the Collateral Agent, the Joining Party agrees to deliver to the Collateral Agent for the
benefit of the Secured Creditors, together with the delivery of this Joinder, each of the items
required to be delivered by it pursuant to Section 3.2 of the Pledge Agreement.

     6. Without limiting the foregoing, the Joining Party hereby makes and undertakes, as the case
may be, each covenant, representation and warranty made by, and as

 

 

EXHIBIT M

(i) each Subsidiary Guarantor pursuant to Section 11 of the Subsidiaries Guaranty, (ii) each
Assignor pursuant to Articles II, III, IV, V and VI of the Security Agreement and (iii) each
Pledgor pursuant to Section 16 of the Pledge Agreement, and agrees to be bound by all covenants,
agreements and obligations of a Subsidiary Guarantor, Assignor and Pledgor pursuant to the
Subsidiaries Guaranty, the Security Agreement and the Pledge Agreement, respectively, and all other
Credit Documents to which it is or becomes a party.

     7. Annexes A, B, C, D, E, F and G to the Pledge Agreement are hereby amended by supplementing
such Annexes with the information for the Joining Party contained on Annexes A, B, C, D, E, F and G
attached hereto as Annex I. In addition, Annexes A, B, C, D, E, F and G to the Security Agreement
are hereby amended by supplementing such Annexes with the information for the Joining Party
contained on Annexes A, B, C, D, E, F and G attached hereto as Annex II.

     8. This Joinder shall be binding upon the parties hereto and their respective successors and
assigns and shall inure to the benefit of and be enforceable by each of the parties hereto and its
successors and assigns. THIS JOINDER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK. This Joinder may be executed in any number of
counterparts, each of which shall be an original, but all of which shall constitute one instrument.
In the event that any provision of this Joinder shall prove to be invalid or unenforceable, such
provision shall be deemed to be severable from the other provisions of this Joinder which shall
remain binding on all parties hereto.

     9. From and after the execution and delivery hereof by the parties hereto, this Joinder shall
constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit
Documents.

     10. The effective date of this Joinder is [DATE].

* * *

 

 

EXHIBIT M

     IN WITNESS WHEREOF, the Joining Party has caused this Joinder to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	[NAME OF NEW SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Accepted and Acknowledged by:

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Administrative Agent and as

Collateral Agent

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT M: ANNEX I

to

JOINDER AGREEMENT

SCHEDULES A, B, C, D, E, F and G TO THE PLEDGE AGREEMENT

 

 

EXHIBIT M: ANNEX A

to

PLEDGE AGREEMENT

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION

(AND WHETHER A REGISTERED ORGANIZATION AND/OR

A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION

AND ORGANIZATIONAL IDENTIFICATION NUMBERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Registered	 	 	 	 	 	 	Pledgor’s	 	 	Transmitting	 
	Exact Legal Name of Each	 	 	Organization?	 	 	Jurisdiction of	 	 	Organization Identification Number (or, if	 	 	Utility?	 
	Pledgor	 	 	(Yes/No)	 	 	Organization	 	 	it has none, so indicate)	 	 	(Yes/No)	 

 

 

EXHIBIT M: ANNEX B

to

PLEDGE AGREEMENT

SCHEDULE OF SUBSIDIARIES

	 	 	 	 	 	 	 	 	 
	Entity	 	 	Ownership	 	 	Jurisdiction of	 
	 	 	 	 	 	 	 	 	Organization	 

 

 

EXHIBIT M: ANNEX C

to

PLEDGE AGREEMENT

SCHEDULE OF STOCK

	1.	 	[PLEDGOR]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Issuing	 	 	Type of	 	 	Number of	 	 	Certificate	 	 	Percentage	 	 	of Pledge	 
	Corporation	 	 	Shares	 	 	Shares	 	 	No.	 	 	Owned	 	 	Agreement	 

	2.	 	[ADDITIONAL PLEDGOR(S)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of
	Name of	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Section 3.2(a)
	Issuing	 	Type of	 	Number of	 	Certificate	 	Percentage	 	of Pledge
	Corporation	 	Shares	 	Shares	 	No.	 	Owned	 	Agreement

 

 

EXHIBIT M: ANNEX D

to

PLEDGE AGREEMENT

SCHEDULE OF NOTES

	1.	 	[PLEDGOR]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Amount	 	 	Maturity Date	 	 	Obligor	 	 	of Pledge Agreement	 

	2.	 	[ADDITIONAL PLEDGOR(S)]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	 	 	 	 	 	 	 	 	 	 	 	 	Section 3.2(a)	 
	Amount	 	 	Maturity Date	 	 	Obligor	 	 	of Pledge Agreement	 

 

 

EXHIBIT M: ANNEX E

to

PLEDGE AGREEMENT

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

	1.	 	[PLEDGOR]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	Issuing Limited	 	 	Type of	 	 	 	 	 	 	Section 3.2(a)	 
	Liability Company	 	 	Interest	 	 	Percentage Owned	 	 	of Pledge Agreement	 

	2.	 	[ADDITIONAL PLEDGOR(S)]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	Issuing Limited	 	 	Type of	 	 	 	 	 	 	Section 3.2(a)	 
	Liability Company	 	 	Interest	 	 	Percentage Owned	 	 	of Pledge Agreement	 

 

 

EXHIBIT M: ANNEX F

to

PLEDGE AGREEMENT

SCHEDULE OF PARTNERSHIP INTERESTS

	1.	 	[PLEDGOR]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of	 	 	Type of	 	 	 	 	 	 	Section 3.2(a)	 
	Issuing Partnership	 	 	Interest	 	 	Percentage Owned	 	 	of Pledge Agreement	 

	2.	 	[ADDITIONAL PLEDGOR(S)]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Sub-clause of	 
	Name of	 	 	Type of	 	 	 	 	 	 	Section 3.2(a)	 
	Issuing Partnership	 	 	Interest	 	 	Percentage Owned	 	 	of Pledge Agreement	 

 

 

EXHIBIT M: ANNEX G

to

PLEDGE AGREEMENT

SCHEDULE OF CHIEF EXECUTIVE OFFICES

	 	 	 	 	 
	Name of Pledgor	 	 	Address(es) of Chief Executive Office	 

 

 

EXHIBIT M: ANNEX II

to

JOINDER AGREEMENT

SCHEDULES A, B, C, D, E, F and G TO THE SECURITY AGREEMENT

 

 

EXHIBIT M: ANNEX A

to

SECURITY AGREEMENT

SCHEDULE OF CHIEF EXECUTIVE OFFICES

	 	 	 	 	 
	Name of Assignor	 	 	Address(es) of Chief Executive Office	 

 

 

EXHIBIT M: ANNEX B

to

SECURITY AGREEMENT

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION

(AND WHETHER A REGISTERED ORGANIZATION AND/OR

A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION

AND ORGANIZATIONAL IDENTIFICATION NUMBERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Type of Organization (or, if	 	 	 	 	 	 	 	 	 	 
	Exact Legal Name	 	the Assignor is an	 	Registered	 	 	 	 	 	Assignor's Organization	 	Transmitting
	of Each	 	Individual, so	 	Organization?	 	Jurisdiction of	 	Identification Number (or,	 	Utility?
	Assignor	 	indicate)	 	(Yes/No)	 	Organization	 	if it has none, so indicate)	 	(Yes/No)

 

 

EXHIBIT M: ANNEX C

to

SECURITY AGREEMENT

SCHEDULE OF TRADE AND FICTITIOUS NAMES

	 	 	 	 	 
	Name of	 	 	Trade and/or	 
	Assignor	 	 	Fictitious Names	 

 

 

EXHIBIT M: ANNEX D

to

SECURITY AGREEMENT

DESCRIPTION OF COMMERCIAL TORT CLAIMS

	 	 	 	 	 
	Name of Assignor	 	 	Description of Commercial Tort Claims	 

 

 

EXHIBIT M: ANNEX E

to

SECURITY AGREEMENT

SCHEDULE OF MARKS AND APPLICATIONS;

INTERNET DOMAIN NAME REGISTRATIONS

	1.	 	Marks and Applications:

	 	 	 	 	 	 	 	 	 
	Marks	 	Country	 	Registration No.
	 
	2.      Internet Domain Name Registrations:
	Internet Domain Names	 	Country	 	Registration No. (or other

applicable identifier)

 

 

EXHIBIT M: ANNEX F

to

SECURITY AGREEMENT

SCHEDULE OF PATENTS

 

 

 EXHIBIT M 

SCHEDULE OF COPYRIGHTS

	 	 	 	 	 	 	 	 	 
	NUMBERS	 	PUBLICATION	 	COPYRIGHT
	REGISTRATION	 	DATE	 	TITLE

 

 

 EXHIBIT N 

FORM OF SUBORDINATION PROVISIONS

     Section 1.01. Subordination of Liabilities. [Name of Payor] (the “Payor”), for
itself, its successors and assigns, covenants and agrees, and each holder of the Note to which this
Annex A is attached (the “Note”) by its acceptance thereof likewise covenants and agrees, that the
payment of the principal of, interest on, and all other amounts owing in respect of, the Note (the
“Subordinated Indebtedness”) is hereby expressly subordinated, to the extent and in the manner set
forth below, to the prior payment in full in cash of all Senior Indebtedness (as defined in Section
1.07 of this Annex A). The provisions of this Annex A shall constitute a continuing offer to all
persons or other entities who, in reliance upon such provisions, become holders of, or continue to
hold, Senior Indebtedness, and such holders are made obligees hereunder the same as if their names
were written herein as such, and they and/or each of them may proceed to enforce such provisions.

     Section 1.02. Payor Not to Make Payments with Respect to Subordinated Indebtedness in
Certain Circumstances. (a) Upon the maturity of any Senior Indebtedness (including interest
thereon or fees or any other amounts owing in respect thereof), whether at stated maturity, by
acceleration or otherwise, all Obligations (as defined in Section 1.07 of this Annex A) owing in
respect of the Senior Indebtedness shall first be paid in full in cash in accordance with the terms
thereof, before any payment of any kind or character, whether in cash, property, securities or
otherwise, is made on account of the Subordinated Indebtedness.

     (b) The Payor may not, directly or indirectly (and no person or other entity on behalf of the
Payor may), make any payment of any Subordinated Indebtedness and may not acquire any Subordinated
Indebtedness for cash or property until all Senior Indebtedness has been paid in full in cash if
any event of default under the Credit Agreement (as defined in Section 1.07 of this Annex A) or any
other issue of Senior Indebtedness is then in existence or would result therefrom. Each holder of
the Note hereby agrees that, so long as any such event of default in respect of any issue of Senior
Indebtedness exists, it will not sue for, or otherwise take any action to enforce the Payor’s
obligations to pay, amounts owing in respect of the Note. Each holder of the Note understands and
agrees that to the extent that clause (a) of this Section 1.02 or this clause (b) prohibits the
payment of any Subordinated Indebtedness, such unpaid amount shall not constitute a payment default
under the Note and the holder of the Note may not sue for, or otherwise take action to enforce the
Payor’s obligation to pay such amount, provided that such unpaid amount shall remain an
obligation of the Payor to the holder of the Note pursuant to the terms of the Note.

     (c) In the event that, notwithstanding the provisions of the preceding subsections (a) and (b)
of this Section 1.02, the Payor (or any Person on behalf of the Payor) shall make (or the holder of
the Note shall receive) any payment on account of the Subordinated Indebtedness at a time when
payment is not permitted by said subsection (a) or (b), such payment shall be held by the holder of
the Note, in trust for the benefit of, and shall be paid forthwith over and delivered to, the
holders of Senior Indebtedness or their representative or the trustee under the indenture or other
agreement pursuant to which any instruments evidencing any

 

 

EXHIBIT N: 

ANNEX C to SECURITY AGREEMENT

Senior Indebtedness may have been issued, as their respective interests may appear (including
by giving effect to any intercreditor or subordination arrangements among such holders), for
application pro rata to the payment of all Senior Indebtedness remaining unpaid to the extent
necessary to pay all Senior Indebtedness in full in cash in accordance with the terms of such
Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness. Without in any way modifying the provisions of this Annex A or
affecting the subordination effected hereby if such notice is not given, the Payor shall give the
holder of the Note prompt written notice of any maturity of Senior Indebtedness after which such
Senior Indebtedness remains unsatisfied.

     Section 1.03. Subordination to Prior Payment of All Senior Indebtedness on Dissolution,
Liquidation or Reorganization of Payor. (a) Upon any distribution of assets of the Payor upon
dissolution, winding up, liquidation or reorganization of the Payor (whether in bankruptcy,
insolvency or receivership proceedings or upon an assignment for the benefit of creditors or
otherwise):

     (i) the holders of all Senior Indebtedness shall first be entitled to receive payment
in full in cash of all Senior Indebtedness in accordance with the terms thereof (including,
without limitation, post-petition interest at the rate provided in the documentation with
respect to the Senior Indebtedness, whether or not such post-petition interest is an allowed
claim against the debtor in any bankruptcy or similar proceeding) before the holder of the
Note is entitled to receive any payment of any kind or character on account of the
Subordinated Indebtedness;

     (ii) any payment or distributions of assets of the Payor of any kind or character,
whether in cash, property or securities to which the holder of the Note would be entitled
except for the provisions of this Annex A, shall be paid by the liquidating trustee or agent
or other person making such payment or distribution, whether a trustee in bankruptcy, a
receiver or liquidating trustee or other trustee or agent, directly to the holders of Senior
Indebtedness or their representative or representatives, or to the trustee or trustees under
any indenture under which any instruments evidencing any such Senior Indebtedness may have
been issued as their respective interests may appear (including by giving effect to any
intercreditor or subordination arrangements among such holders), to the extent necessary to
make payment in full in cash of all Senior Indebtedness remaining unpaid, after giving
effect to any concurrent payment or distribution to the holders of such Senior Indebtedness;
and

     (iii) in the event that, notwithstanding the foregoing provisions of this Section 1.03,
any payment or distribution of assets of the Payor of any kind or character, whether in
cash, property or securities, shall be received by the holder of the Note on account of
Subordinated Indebtedness before all Senior Indebtedness is paid in full in cash in
accordance with the terms thereof, such payment or distribution shall be received and held
in trust for and shall be paid over to the holders of the Senior Indebtedness remaining
unpaid or their representative or representatives, or to the trustee or trustees under any
indenture under which any instruments evidencing any of such Senior Indebtedness may have
been issued, as their respective interests may appear (including by giving effect to any
intercreditor or subordination arrangements among such holders)

 

 

EXHIBIT N: 

ANNEX C to SECURITY AGREEMENT

for application to the payment of such Senior Indebtedness until all such Senior
Indebtedness shall have been paid in full in cash in accordance with the terms thereof,
after giving effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness.

     (b) To the extent any payment of Senior Indebtedness (whether by or on behalf of any Payor,
as proceeds of security or enforcement of any right of setoff or otherwise) is declared to be
fraudulent or preferential, set aside or required to be paid to any receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar person under any bankruptcy, insolvency,
receivership, fraudulent conveyance or similar law, then, if such payment is recovered by, or paid
over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other similar person,
the Senior Indebtedness or part thereof originally intended to be satisfied shall be deemed to be
reinstated and outstanding as if such payment has not occurred.

     (c) If the holder of the Note does not file a proper claim or proof of debt in the form
required in any proceeding or other action referred to in the introduction paragraph of this
Section 1.03 prior to 30 days before the expiration of the time to file such claim or claims, then
any of the holders of the Senior Indebtedness or their representative is hereby authorized to file
an appropriate claim for and on behalf of the holder of the Note.

     (d) Without in any way modifying the provisions of this Annex A or affecting the subordination
effected hereby if such notice is not given, the Payor shall give prompt written notice to the
holder of the Note of any dissolution, winding up, liquidation or reorganization of the Payor
(whether in bankruptcy, insolvency or receivership proceedings or upon assignment for the benefit
of creditors or otherwise).

     Section 1.04. Subrogation. Subject to the prior payment in full in cash of all
Senior Indebtedness in accordance with the terms thereof, the holder of the Note shall be
subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions
of assets of the Payor applicable to the Senior Indebtedness until all amounts owing on the Note
shall be paid in full, and for the purpose of such subrogation no payments or distributions to the
holders of the Senior Indebtedness by or on behalf of the Payor or by or on behalf of the holder of
the Note by virtue of this Annex A which otherwise would have been made to the holder of the Note
shall, as between the Payor, its creditors other than the holders of Senior Indebtedness, and the
holder of the Note, be deemed to be payment by the Payor to or on account of the Senior
Indebtedness, it being understood that the provisions of this Annex A are and are intended solely
for the purpose of defining the relative rights of the holder of the Note, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

     Section 1.05. Obligation of the Payor Unconditional. Nothing contained in this Annex
A or in the Note is intended to or shall impair, as between the Payor and the holder of the Note,
the obligation of the Payor, which is absolute and unconditional, to pay to the holder of the Note
the principal of and interest on the Note as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative rights of the holder of
the Note and creditors of the Payor other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the holder of the Note from exercising all remedies otherwise
permitted by applicable law upon an event of default under the Note, subject to the

 

 

EXHIBIT N: 

ANNEX C to SECURITY AGREEMENT

provisions of this Annex A and the rights, if any, under this Annex A of the holders of Senior
Indebtedness in respect of cash, property, or securities of the Payor received upon the exercise of
any such remedy. Upon any distribution of assets of the Payor referred to in this Annex A, the
holder of the Note shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which such dissolution, winding up, liquidation or reorganization
proceedings are pending, or a certificate of the liquidating trustee or agent or other person
making any distribution to the holder of the Note, for the purpose of ascertaining the persons
entitled to participate in such distribution, the holders of the Senior Indebtedness and other
indebtedness of the Payor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Annex A.

     Section 1.06. Subordination Rights Not Impaired by Acts or Omissions of Payor or Holders
of Senior Indebtedness. No right of any present or future holders of any Senior Indebtedness
to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired
by any act or failure to act on the part of the Payor or by any act or failure to act in good faith
by any such holder, or by any noncompliance by the Payor with the terms and provisions of the Note,
regardless of any knowledge thereof which any such holder may have or be otherwise charged with.
The holders of the Senior Indebtedness may, without in any way affecting the obligations of the
holder of the Note with respect hereto, at any time or from time to time and in their absolute
discretion, change the manner, place or terms of payment of, change or extend the time of payment
of, or renew, increase or otherwise alter, any Senior Indebtedness or amend, modify or supplement
any agreement or instrument governing or evidencing such Senior Indebtedness or any other document
referred to therein, or exercise or refrain from exercising any other of their rights under the
Senior Indebtedness including, without limitation, the waiver of default thereunder and the release
of any collateral securing such Senior Indebtedness, all without notice to or assent from the
holder of the Note.

     Section 1.07. Senior Indebtedness. The term “Senior Indebtedness” shall mean all
Obligations (as defined below) (i) of the Payor under, or in respect of, (x) the Credit Agreement
(as amended, modified, supplemented, extended, restated, refinanced, replaced or refunded from time
to time, the “Credit Agreement”), dated as of May [__], 2011, by and among Town Sports
International Holdings, Inc., [the Payor] [Town Sports International, LLC], the lenders from time
to time party thereto and Deutsche Bank Trust Company Americas, as Administrative Agent, and any
renewal, extension, restatement, refinancing or refunding thereof, and (y) each other Credit
Document (as defined in the Credit Agreement) to which the Payor is a party and (ii) of the Payor
under, or in respect of (including by reason of its Guaranty (as defined in the Credit Agreement)
to the extent that the Payor is a party thereto), any Interest Rate Protection Agreements or Other
Hedging Agreements (each as defined in the Credit Agreement). As used herein, the term
“Obligation” shall mean any principal, interest, premium, penalties, fees, expenses, indemnities
and other liabilities and obligations (including guaranties of the foregoing liabilities and
obligations) payable under the documentation governing any Senior Indebtedness (including
post-petition interest at the rate provided in the documentation with respect to such Senior
Indebtedness, whether or not such interest is an allowed claim against the debtor in any bankruptcy
or similar proceeding).

 

 

EXHIBIT N: 

ANNEX C to SECURITY AGREEMENT

     Section 1.08. Miscellaneous. If, at any time, all or part of any payment with
respect to Senior Indebtedness theretofore made by the Payor or any other Person or entity is
rescinded or must otherwise be returned by the holders of Senior Indebtedness for any reason
whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of the
Payor or such other Person or entity), the subordination provisions set forth herein shall continue
to be effective or be reinstated, as the case may be, all as though such payment had not been made.

 

 

EXHIBIT O-1

INCREMENTAL TERM LOAN COMMITMENT AGREEMENT

[Name(s) of Lender(s)]

_____________, ______

Town Sports International, LLC

5 Penn Plaza

4th Floor

New York, New York 10001

			
	Re:	 	Incremental Term Loan Commitments

Ladies and Gentlemen:

     Reference is hereby made to the Credit Agreement, dated as of May [__], 2011, (as amended,
restated, modified and/or supplemented from time to time, the “Credit Agreement”), among
Town Sports International Holdings, Inc. (“Holdings”), Town Sports International, LLC (the
“Borrower”), the lenders from time to time party thereto (the “Lenders”) and
Deutsche Bank Trust Company Americas, as administrative agent (in such capacity, the
“Administrative Agent”). Unless otherwise defined herein, capitalized terms used herein
shall have the respective meanings set forth in the Credit Agreement.

     Each Lender (each an “Incremental Term Loan Lender”) party to this letter agreement
(this “Agreement”) hereby severally agrees to provide the Incremental Term Loan Commitment
set forth opposite its name on Annex I attached hereto (for each such Incremental Term Loan
Lender, its “Incremental Term Loan Commitment”). Each Incremental Term Loan Commitment
provided pursuant to this Agreement shall be subject to all of the terms and conditions set forth
in the Credit Agreement, including, without limitation, Sections 2.01(c) and 2.14 thereof.

     Each Incremental Term Loan Lender, the Borrower and the Administrative Agent acknowledge and
agree that the Incremental Term Loan Commitments provided pursuant to this Agreement shall
constitute Incremental Term Loan Commitments of the respective Tranche specified in Annex I
attached hereto and, upon the incurrence of Incremental Term Loans pursuant to such Incremental
Term Loan Commitments, shall constitute Incremental Term Loans under such specified Tranche for all
purposes of the Credit Agreement and the other applicable Credit Documents. Each Incremental Term
Loan Lender, the Borrower and the Administrative Agent further agree that, with respect to the
Incremental Term Loan Commitment provided by each Incremental Term Loan Lender pursuant to this
Agreement, such Incremental Term Loan Lender shall receive from the Borrower such upfront fees,
unutilized commitment fees and/or other fees, if any, as may be separately agreed to in writing
with the Borrower and the Incremental Term Loan Lenders (and which fees have
been identified by the Borrower to the Administrative Agent), all of which fees shall be due and
payable to such Incremental Term Loan Lender on the terms and conditions set forth in each such
separate agreement.

 

 

EXHIBIT O-1

Page 2

     Furthermore, each of the parties to this Agreement hereby agree to the terms and conditions
set forth on Annex I hereto in respect of each Incremental Term Loan Commitment provided
pursuant to this Agreement.

     Each Incremental Term Loan Lender party to this Agreement, to the extent not already a party
to the Credit Agreement as a Lender thereunder, (i) confirms that it has received a copy of the
Credit Agreement and the other Credit Documents, together with copies of the financial statements
referred to therein and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Agreement and to become a Lender under the
Credit Agreement, (ii) agrees that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement and the other Credit Documents, (iii) appoints and authorizes the
Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to
exercise such powers under the Credit Agreement and the other Credit Documents, as are delegated to
the Administrative Agent and the Collateral Agent, as the case may be, by the terms thereof,
together with such powers as are reasonably incidental thereto, (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the Credit Agreement and
the other Credit Documents are required to be performed by it as a Lender, and (v) in the case of
each Incremental Term Loan Lender that is a Foreign Lender, attaches the forms and/or Certificates
referred to in Section 5.04(b) of the Credit Agreement, certifying as to its entitlement as of the
date hereof to a complete exemption from United States withholding taxes with respect to all
payments to be made to it by the Borrower under the Credit Agreement and the other Credit
Documents.

     Upon the date of (i) the execution of a counterpart of this Agreement by each Incremental Term
Loan Lender, the Administrative Agent, the Borrower, Holdings and each
Subsidiary Guarantor, (ii) the delivery to the Administrative Agent of a fully executed counterpart
(including by way of facsimile) hereof, (iii) the payment of any fees then due and payable in
connection herewith and (iv) the satisfaction of any other conditions precedent set forth in
Section 8 of Annex I hereto (such date, the “Agreement Effective Date”),
each Incremental Term Loan Lender party hereto (i) shall be obligated to make the Incremental Term
Loans provided to be made by it as provided in this Agreement on the terms, and subject to the
conditions, set forth in the Credit Agreement and in this Agreement, and (ii) to the extent
provided in this Agreement, shall have the rights and obligations of a Lender thereunder and under
the other applicable Credit Documents.

     The Borrower acknowledges and agrees that (i) it shall be liable for all Obligations with
respect to the Incremental Term Loan Commitments provided hereby including, without limitation, all
Incremental Term Loans made pursuant thereto, and (ii) all such Obligations (including all such
Incremental Term Loans) shall constitute (and be included in the definition of) “Guaranteed
Obligations” under each Guaranty and be entitled to the benefits of the respective Security
Documents and each Guaranty as, and to the extent, provided in the Credit Agreement and in such
other Credit Documents.

     Holdings and each Subsidiary Guarantor acknowledges and agrees that all Obligations with
respect to the Incremental Term Loan Commitments provided hereby and all Incremental Term Loans
made pursuant thereto shall (i) be fully guaranteed pursuant to the Guaranties as, and to the
extent, provided in the respective Guaranties and in the Credit

 

 

EXHIBIT O-1

Page 3

Agreement, and (ii) be entitled to the benefits of the respective Security Documents as, and
to the extent, provided therein and in the Credit Agreement.

     Attached hereto as Annex II is the officer’s certificate required to be delivered
pursuant to clause (iii) of the definition of “Incremental Commitment Requirements” contained in
the Credit Agreement certifying as to compliance with clauses (i) and (ii) of such definition and
containing the calculations (in reasonable detail) required by such clause (ii) thereof.

     Attached hereto as Annex III [is an opinion] [are opinions] of [insert name or names
of counsel, including in-house counsel, who will be delivering opinions], counsel to the respective
Credit Parties required to be delivered pursuant to clause (v) of the definition of “Incremental
Commitment Requirements” contained in the Credit Agreement.

     Attached hereto as Annex IV are true and correct copies of the applicable officers’
certificates and board of directors resolutions of the Credit Parties and, solely with respect to
the Borrower, good standing certificate, required to be delivered pursuant to clause (vi) of the
definition of “Incremental Commitment Requirements” appearing in the Credit Agreement.

     You may accept this Agreement by signing the enclosed copies in the space provided below, and
returning one copy of same to us before the close of business on ____________, ____. If you do not
so accept this Agreement by such time, our Incremental Term Loan Commitments set forth in this
Agreement shall be deemed canceled.

     After the execution and delivery to the Administrative Agent of a fully executed copy of this
Agreement (including by way of counterparts and by facsimile transmission) by the parties hereto,
this Agreement may only be changed, modified or varied by written instrument in accordance with the
requirements for the modification of Credit Documents pursuant to Section 13.12 of the Credit
Agreement.

     In the event of any conflict between the terms of this Agreement and those of the Credit
Agreement, the terms of the Credit Agreement shall control.

*****

 

 

EXHIBIT O-1

Page 4

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF EACH INCREMENTAL TERM LOAN LENDER]	 	
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title	 	 

Agreed and Accepted

this ___ day of __________, ____:

	 	 	 	 	 

	TOWN SPORTS INTERNATIONAL, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT O-1

Page 5

	 	 	 	 	 

	DEUTSCHE BANK TRUST COMPANY AMERICAS,	 	 
	 

	 	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT O-1

Page 6

Each of Holdings and each Subsidiary Guarantor acknowledges and agrees to each the foregoing
provisions of this Incremental Term Loan Commitment Agreement and to the incurrence of the
Incremental Term Loans to be made pursuant thereto.

[INSERT SIGNATURE BLOCK FOR HOLDINGS AND SUBSIDIARY GUARANTORS]

 

 

EXHIBIT O-1

TERMS AND CONDITIONS FOR

INCREMENTAL TERM LOAN COMMITMENT AGREEMENT

Dated as of _____________, ____

1. Name of Borrower and jurisdiction of organization: Town Sports International, LLC, a New York
limited liability company.

2. Incremental Term Loan Commitment Amounts (as of the Agreement Effective Date):

	 	 	 	 	 
	 	 	 	 	Amount of Incremental Term Loan	 
	Names of Incremental Term Loan Lenders	 	 	Commitment stated Dollars	 

Total:39

	3.	 	Designation of Tranche of Incremental Term Loan Commitments (and Incremental Term Loans to be
funded thereunder)40:
	 
	4.	 	Indicate the Incremental Term Loan Borrowing Date:
	 
	5.	 	Incremental Term Loan Maturity Date:41
	 
	6.	 	Dates for, and amounts of, Incremental Term Loan Scheduled Repayments:42

 

			
	39	 	The aggregate amount of each Tranche of
Incremental Term Loan Commitments must be at least $25,000,000 (or such lower
amount as may be acceptable to the Administrative Agent) and in integral
multiples of $5,000,000 in excess thereof.
	 
	2	 	Designate the respective Tranche for such
Incremental Term Loan Commitments or indicate that it is to be added to (and
form part of) an existing Tranche of Term Loans.
	 
	3	 	Insert Maturity Date for the Incremental Term
Loans to be incurred pursuant to the Incremental Term Loan Commitments provided
hereunder, provided that (i) such Incremental Term Loan Maturity Date shall be
no earlier than the Initial Term Loan Maturity Date, and (ii) in the event the
Incremental Term Loan Commitments to be provided pursuant to this Agreement are
to be added to (and form a part of ) an existing Tranche of Term Loans, the
Incremental Term Loan Maturity Date for the Incremental Term Loans to be
incurred pursuant to such Incremental Term Loan Commitments shall be the same
Maturity Date as for such existing Tranche of Term Loans.
	 
	4	 	Set forth the Scheduled Incremental Term Loan
Repayment Dates and the principal amount (expressed as a numerical amount or as
a percentage of the aggregate amount of Incremental Term Loans to be incurred

(continued...)

 

 

Exhibit O-1

Page 2

	7.	 	Applicable Margins, Base Rate floor and Eurodollar Rate floor:43
	 
	8.	 	Other Conditions Precedent:44
	 
	[9. 	 	The Borrower agrees to pay compensation as, and to the extent, provided in the last paragraph
of Section 2.14(c) of the Credit 

Agreement.]45

 

			
	 (...continued)   

	 
		 	pursuant to the Incremental Term Loan Commitments provided hereunder),
provided that (i) to the extent the Incremental Term Loan Commitments
being provided hereunder constitute a new Tranche of Term Loans, the Weighted
Average Life to Maturity of such new Tranche shall be no less than the Weighted
Average Life to Maturity as then in effect for the Initial Term Loans, and (ii)
in the event the Incremental Term Loan Commitments to be provided hereunder are
to be added to (and form a part of) an existing Tranche of Term Loans, (x) the
Scheduled Incremental Term Loan Repayments for such Incremental Term Loans
shall be the same (on a proportionate basis) as is theretofore applicable to
the existing Tranche of Term Loans to which such new Incremental Term Loans are
being added, and (y) such Incremental Term Loans shall have the same Scheduled
Incremental Term Loan Repayment Dates.
	 
	43	 	Insert the Applicable Margins, Base Rate
floor and Eurodollar Rate floor that shall apply to the Incremental Term Loans
being provided hereunder, provided in the event the Incremental Term
Loan Commitments to be provided hereunder are to be made under (and form a part
of) an existing Tranche of Term Loans, the Incremental Term Loans to be
incurred pursuant to such Incremental Term Loan Commitments shall have the same
Applicable Margins applicable to such existing Tranche of Term Loans.
	 
	7	 	Insert any additional conditions precedent
which may be required to be satisfied prior to the Agreement Effective Date.
	 
	45	 	Insert if the respective Incremental Term
Loan Commitments are to be added to (and form a part of) an existing Tranche of
Term Loans and to the extent any related breakage type compensation is required
to be paid by the Borrower.

 

 

EXHIBIT O-2

INCREMENTAL RL COMMITMENT AGREEMENT

[Name(s) of Lender(s)]

_____________, ______

Town Sports International, LLC

5 Penn Plaza

4th Floor

New York, New York 10001

			
	Re:	 	Incremental RL Commitments

Ladies and Gentlemen:

     Reference is hereby made to the Credit Agreement, dated as of May [__], 2011, (as amended,
restated, modified and/or supplemented from time to time, the “Credit Agreement”), among
Town Sports International Holdings, Inc. (“Holdings”), Town Sports International, LLC (the
“Borrower”), the lenders from time to time party thereto (the “Lenders”) and
Deutsche Bank Trust Company Americas, as administrative agent (in such capacity, the
“Administrative Agent”). Unless otherwise defined herein, capitalized terms used herein
shall have the respective meanings set forth in the Credit Agreement.

     Each Lender (each an “Incremental RL Lender”) party to this letter agreement (this
“Agreement”) hereby severally agrees to provide the Incremental RL Commitment set forth
opposite its name on Annex I attached hereto (for each such Incremental RL Lender, its
“Incremental RL Commitment”). Each Incremental RL Commitment provided pursuant to this
Agreement shall be subject to all of the terms and conditions set forth in the Credit Agreement,
including, without limitation, Sections 2.01(b) and 2.15 thereof.

     Each Incremental RL Lender, the Borrower and the Administrative Agent acknowledge and agree
that the Revolving Loans incurred pursuant to the Incremental RL Commitments provided pursuant to
this Agreement shall constitute Revolving Loans for all purposes of the Credit Agreement and the
other applicable Credit Documents. Each Incremental RL Lender, the Borrower and the Administrative
Agent further agree that, with respect to the Incremental RL Commitment provided by each
Incremental RL Lender pursuant to this Agreement, such Incremental RL Lender shall receive from the
Borrower such upfront fees, unutilized commitment fees and/or other fees, if any, as may be
separately agreed to in writing with the Borrower and the Incremental RL
Lenders (and which fees have been identified by the Borrower to the Administrative Agent), all of
which fees shall be due and payable to such Incremental RL Lender on the terms and conditions set
forth in each such separate agreement.

     Furthermore, each of the parties to this Agreement hereby agree to the terms and conditions
set forth on Annex I hereto in respect of each Incremental RL Commitment provided pursuant
to this Agreement.

 

 

Exhibit O-2

Page 2

     Each Incremental RL Lender party to this Agreement, to the extent not already a party to the
Credit Agreement as a Lender thereunder, (i) confirms that it has received a copy of the Credit
Agreement and the other Credit Documents, together with copies of the financial statements referred
to therein and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Agreement and to become a Lender under the Credit
Agreement, (ii) agrees that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under the
Credit Agreement and the other Credit Documents, (iii) appoints and authorizes the Administrative
Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such
powers under the Credit Agreement and the other Credit Documents, as are delegated to the
Administrative Agent and the Collateral Agent, as the case may be, by the terms thereof, together
with such powers as are reasonably incidental thereto, (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the Credit Agreement and
the other Credit Documents are required to be performed by it as a Lender, and (v) in the case of
each Incremental RL Lender that is a Foreign Lender, attaches the forms and/or Certificates
referred to in Section 5.04(b) of the Credit Agreement, certifying as to its entitlement as of the
date hereof to a complete exemption from United States withholding taxes with respect to all
payments to be made to it by the Borrower under the Credit Agreement and the other Credit
Documents.

     Upon the date of (i) the execution of a counterpart of this Agreement by each Incremental RL
Lender, the Administrative Agent, the Borrower, Holdings and each Subsidiary
Guarantor, (ii) the delivery to the Administrative Agent of a fully executed counterpart (including
by way of facsimile) hereof, (iii) the payment of any fees then due and payable in connection
herewith and (iv) the satisfaction of any other conditions precedent set forth in Section 5
of Annex I hereto (such date, the “Agreement Effective Date”), each Incremental RL
Lender party hereto (i) shall be obligated to make the Revolving Loans provided to be made by it as
provided in this Agreement on the terms, and subject to the conditions, set forth in the Credit
Agreement and in this Agreement, and (ii) to the extent provided in this Agreement, shall have the
rights and obligations of a Lender thereunder and under the other applicable Credit Documents.

     The Borrower acknowledges and agrees that (i) it shall be liable for all Obligations with
respect to the Incremental RL Commitments provided hereby including, without limitation, all
Revolving Loans made pursuant thereto, and (ii) all such Obligations (including all such Revolving
Loans) shall constitute (and be included in the definition of) “Guaranteed Obligations” under each
Guaranty and be entitled to the benefits of the respective Security Documents and each Guaranty as,
and to the extent, provided in the Credit Agreement and in such other Credit Documents.

     Holdings and each Subsidiary Guarantor acknowledges and agrees that all Obligations with
respect to the Incremental RL Commitments provided hereby and all Revolving Loans made pursuant
thereto shall (i) be fully guaranteed pursuant to the Guaranties as, and to the extent, provided in
the respective Guaranties and in the Credit Agreement, and (ii) be entitled to the benefits of the
respective Security Documents as, and to the extent, provided therein and in the Credit Agreement.

 

 

Exhibit O-2

Page 3

     Attached hereto as Annex II is the officer’s certificate required to be delivered
pursuant to clause (iii) of the definition of “Incremental Commitment Requirements” contained in
the Credit Agreement certifying as to compliance with clauses (i) and (ii) of such definition and
containing the calculations (in reasonable detail) required by such clause (ii) thereof.

     Attached hereto as Annex III [is an opinion] [are opinions] of [insert name or names
of counsel, including in-house counsel, who will be delivering opinions], counsel to the respective
Credit Parties required to be delivered pursuant to clause (v) of the definition of “Incremental
Commitment Requirements” contained in the Credit Agreement.

     Attached hereto as Annex IV are true and correct copies of the applicable officers’
certificates and board of directors resolutions of the Credit Parties and, solely with respect to
the Borrower, good standing certificate, required to be delivered pursuant to clause (vi) of the
definition of “Incremental Commitment Requirements” appearing in the Credit Agreement.

     You may accept this Agreement by signing the enclosed copies in the space provided below, and
returning one copy of same to us before the close of business on ____________, ____. If you do not
so accept this Agreement by such time, our Incremental RL Commitments set forth in this Agreement
shall be deemed canceled.

     After the execution and delivery to the Administrative Agent of a fully executed copy of this
Agreement (including by way of counterparts and by facsimile transmission) by the parties hereto,
this Agreement may only be changed, modified or varied by written instrument in accordance with the
requirements for the modification of Credit Documents pursuant to Section 13.12 of the Credit
Agreement.

     In the event of any conflict between the terms of this Agreement and those of the Credit
Agreement, the terms of the Credit Agreement shall control.

*****

 

 

Exhibit O-2

Page 4

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 	 	[NAME OF EACH INCREMENTAL RL LENDER]	 	 
	 
	 

	 	By
	 	 

Name:
	 	 
	 

	 	 	 	Title	 	 

Agreed and Accepted

this ___ day of __________, ____:

TOWN SPORTS INTERNATIONAL, LLC

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Exhibit O-2

Page 5

	 	 	 	 	 

	DEUTSCHE BANK TRUST COMPANY AMERICAS,	 	 
	 

	 	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Exhibit O-2

Page 6

Each of Holdings and each Subsidiary Guarantor acknowledges and agrees to each the foregoing
provisions of this Incremental RL Commitment Agreement and to the incurrence of the Revolving
Loans to be made pursuant thereto.

[INSERT SIGNATURE BLOCK FOR HOLDINGS AND SUBSIDIARY GUARANTORS]

 

 

EXHIBIT O-2

TERMS AND CONDITIONS FOR

INCREMENTAL RL COMMITMENT AGREEMENT

Dated as of _____________, ____

1. Name of Borrower and jurisdiction of organization: Town Sports International, LLC, a New York
limited liability company.

2. Incremental RL Commitment Amounts (as of the Agreement Effective Date):

	 	 	 	 	 
	 	 	 	 	Amount of Incremental RL Commitment stated
	Names of Incremental RL Lenders	 	Dollars

Total:46

	3.	 	Indicate the Incremental RL Commitment Date:
	 
	4.	 	Applicable
Margins:47
	 
	5.	 	Other Conditions
Precedent:48
	 
	[6. 	 	The Borrower agrees to pay compensation as, and to the extent, provided in Section 2.15(c) of
the Credit
Agreement.]49

 

			
	46	 	The aggregate amount of Incremental RL
Commitments must be at least $25,000,000 (or such lower amount as may be
acceptable to the Administrative Agent) and in integral multiples of $5,000,000
in excess thereof.
	 
	47	 	Insert the Applicable Margins that shall
apply to the Revolving Loans to be incurred pursuant to the Incremental RL
Commitments being provided hereunder.
	 
	48	 	Insert any additional conditions precedent
which may be required to be satisfied prior to the Agreement Effective Date.
	 
	49	 	Insert to the extent any related breakage
type compensation is required to be paid by the Borrower.exv10w2

Exhibit 10.2

SUBSIDIARIES GUARANTY

     SUBSIDIARIES GUARANTY, dated as of May 11, 2011 (as amended, modified or supplemented from
time to time, this “Guaranty”), made by each of the undersigned guarantors (each a
“Guarantor” and, together with any other entity that becomes a guarantor hereunder pursuant
to Section 25 hereof, the “Guarantors”). Except as otherwise defined herein,
capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used
herein as therein defined.

W I T N E S S E T H :

     WHEREAS, Town Sports International Holdings, Inc., Town Sports International, LLC (the
“Borrower”), the lenders from time to time party thereto (the “Lenders”) and Deutsche Bank
Trust Company Americas, as administrative agent (together with any successor administrative agent,
the “Administrative Agent”), have entered into a Credit Agreement, dated as of May 11, 2011
(as amended, modified, restated, extended, restructured and/or supplemented from time to time,
together with any agreement refinancing in full the Indebtedness under such agreement or successor
agreements to the extent such agreement provides that it is to be the “Credit Agreement” hereunder,
the “Credit Agreement”), providing for the making of Loans to, and the issuance of, and
participation in, Letters of Credit for the account of, the Borrower as contemplated therein (the
Lenders, the Collateral Agent, the Issuing Lenders and the Administrative Agent are herein called
the “Lender Creditors”);

     WHEREAS, the Borrower and/or one or more of its Subsidiaries may at any time and from time to
time enter into one or more Interest Rate Protection Agreements or Other Hedging Agreements with
one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with
such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other
Creditors” and, together with the Lender Creditors, the “Secured Creditors”);

     WHEREAS, each Guarantor is a direct or indirect Wholly-Owned Domestic Subsidiary of the
Borrower;

     WHEREAS, it is a condition precedent to the making of Loans to the Borrower, and the issuance
of, and participation in, Letters of Credit for the account of the Borrower under the Credit
Agreement and to the Other Creditors entering into Interest Rate Protection Agreements and Other
Hedging Agreements that each Guarantor shall have executed and delivered to the Administrative
Agent this Guaranty; and

     WHEREAS, each Guarantor will obtain benefits from the incurrence of Loans to the Borrower, and
the issuance of, and participation in, Letters of Credit for the account of the Borrower under the
Credit Agreement and the entering into by the Borrower and/or one or more of its Subsidiaries of
Interest Rate Protection Agreements or Other Hedging Agreements and,

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

accordingly, desires to execute this Guaranty in order to satisfy the condition described in
the preceding paragraph;

     NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each
Guarantor, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby
makes the following representations and warranties to the Secured Creditors and hereby covenants
and agrees with each Secured Creditor as follows:

     1. Each Guarantor, jointly and severally, irrevocably, absolutely and unconditionally
guarantees as a primary obligor and not merely as a surety: (i) to the Lender Creditors the full
and prompt payment when due (whether at the stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise) of (x) the principal of, premium, if any, and interest on the
Notes issued by, and the Loans made to, the Borrower under the Credit Agreement, and all
reimbursement obligations and Unpaid Drawings with respect to Letters of Credit and (y) all other
obligations (including, without limitation, obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness owing by the
Borrower to the Lender Creditors under the Credit Agreement and each other Credit Document (as
defined in the Credit Agreement, as any such document may be amended, modified, restated and/or
supplemented from time to time in connection with the Credit Agreement) to which the Borrower is a
party (including, without limitation, indemnities, Fees and interest thereon (including, without
limitation, any interest accruing after the commencement of any bankruptcy, insolvency,
receivership or similar proceeding at the rate provided for in the Credit Agreement, whether or not
such interest is an allowed claim in any such proceeding), whether now existing or hereafter
incurred under, arising out of or in connection with the Credit Agreement and any such other Credit
Document and the due performance and compliance by the Borrower with all of the terms, conditions,
covenants and agreements contained in all such Credit Documents (all such principal, premium,
interest, liabilities, indebtedness and obligations under this clause (i), except to the extent
consisting of obligations or liabilities with respect to Interest Rate Protection Agreements and
Other Hedging Agreements, being herein collectively called the “Credit Document
Obligations”); and (ii) to each Other Creditor the full and prompt payment when due (whether at
the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of all
obligations (including, without limitation, obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including,
without limitation, any interest accruing after the commencement of any bankruptcy, insolvency,
receivership or similar proceeding at the rate provided for in the respective Interest Rate
Protection Agreements or Other Hedging Agreements, whether or not such interest is an allowed claim
in any such proceeding) owing by the Borrower and/or one or more of its Subsidiaries under any
Interest Rate Protection Agreement or Other Hedging Agreement, whether now in existence or
hereafter arising, and the due performance and compliance by the Borrower and such Subsidiaries
with all of the terms, conditions, covenants and agreements contained in each Interest Rate
Protection Agreement and Other Hedging Agreement to which it is a party (all such obligations,
liabilities and indebtedness being herein collectively called the “Other Obligations” and,
together with the Credit Document Obligations, the “Guaranteed Obligations”). As used
herein, the term “Guaranteed Party” shall mean the Borrower and each Subsidiary thereof
party to any Interest Rate Protection Agreement or Other Hedging Agreement with an Other Creditor.

 

 

Each Guarantor understands, agrees and confirms that the Secured Creditors may enforce this
Guaranty up to the full amount of the Guaranteed Obligations against such Guarantor without
proceeding against any other Guarantor, the Borrower, any other Guaranteed Party, against any
security for the Guaranteed Obligations, or under any other guaranty covering all or a portion of
the Guaranteed Obligations.

     2. Additionally, each Guarantor, jointly and severally, unconditionally, absolutely and
irrevocably, guarantees the payment of any and all Guaranteed Obligations upon the occurrence in
respect of the Borrower or any other Guaranteed Party of any of the events specified in Section
11.05 of the Credit Agreement, and unconditionally, absolutely and irrevocably, jointly and
severally, promises to pay such Guaranteed Obligations to the Secured Creditors, or order, on
demand. This Guaranty shall constitute a guaranty of payment and performance, and not of
collection.

     3. The liability of each Guarantor hereunder is primary, absolute, joint and several, and
unconditional and is exclusive and independent of any security for or other guaranty of the
indebtedness of the Borrower or any other Guaranteed Party whether executed by such Guarantor, any
other Guarantor, any other guarantor or by any other party, and the liability of each Guarantor
hereunder shall not be affected or impaired by any circumstance or occurrence whatsoever,
including, without limitation: (a) any direction as to application of payment by the Borrower or
any other Guaranteed Party or by any other party, (b) any other continuing or other guaranty,
undertaking or maximum liability of a Guarantor or of any other party as to the Guaranteed
Obligations, (c) any payment on or in reduction of any such other guaranty or undertaking, (d) any
dissolution, termination or increase, decrease or change in personnel by the Borrower or any other
Guaranteed Party, (e) the failure of a Guarantor to receive any benefit from or as a result of its
execution, delivery and performance of this Guaranty, (f) any payment made to any Secured Creditor
on the indebtedness which any Secured Creditor repays the Borrower or any other Guaranteed Party
pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor
relief proceeding, and each Guarantor waives any right to the deferral or modification of its
obligations hereunder by reason of any such proceeding, (g) any action or inaction by the Secured
Creditors as contemplated in Section 6 hereof or (h) any invalidity, recission,
irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any
security therefor.

     4. The obligations of each Guarantor hereunder are independent of the obligations of any other
Guarantor, any other guarantor, the Borrower or any other Guaranteed Party, and a separate action
or actions may be brought and prosecuted against each Guarantor whether or not action is brought
against any other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party and
whether or not any other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party
be joined in any such action or actions. Each Guarantor waives, to the fullest extent permitted by
applicable law, the benefits of any statute of limitations affecting its liability hereunder or the
enforcement thereof. Any payment by the Borrower or any other Guaranteed Party or other
circumstance which operates to toll any statute of limitations as to the Borrower or any other
Guaranteed Party shall operate to toll the statute of limitations as to each Guarantor.

 

 

     5. Each Guarantor hereby waives (to the fullest extent permitted by applicable law) notice of
acceptance of this Guaranty and notice of the existence, creation or incurrence of any new or
additional liability to which it may apply, and waives promptness, diligence, presentment, demand
of payment, demand for performance, protest, notice of dishonor or nonpayment of any such
liabilities, suit or taking of other action by the Administrative Agent or any other Secured
Creditor against, and any other notice to, any party liable thereon (including such Guarantor, any
other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party) and each
Guarantor further hereby waives any and all notice of the creation, renewal, extension or accrual
of any of the Guaranteed Obligations and notice or proof of reliance by any Secured Creditor upon
this Guaranty, and the Guaranteed Obligations shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended, modified, supplemented or waived, in
reliance upon this Guaranty.

     6. Any Secured Creditor may (except as shall be required by applicable statute and cannot be
waived) at any time and from time to time without the consent of, or notice to, any Guarantor,
without incurring responsibility to such Guarantor, without impairing or releasing the obligations
or liabilities of such Guarantor hereunder, upon or without any terms or conditions and in whole or
in part:

     (a) change the manner, place or terms of payment of, and/or change, increase or extend the
time of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations
(including, without limitation, any increase or decrease in the rate of interest thereon or the
principal amount thereof), any security therefor, or any liability incurred directly or indirectly
in respect thereof, and the guaranty herein made shall apply to the Guaranteed Obligations as so
changed, extended, increased, accelerated, renewed or altered;

     (b) take and hold security for the payment of the Guaranteed Obligations and sell, exchange,
release, surrender, impair, realize upon or otherwise deal with in any manner and in any order any
property or other collateral by whomsoever at any time pledged or mortgaged to secure, or howsoever
securing, the Guaranteed Obligations or any liabilities (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and/or any offset there against;

     (c) exercise or refrain from exercising any rights against the Borrower, any other Guaranteed
Party, any other Credit Party, any Subsidiary thereof, any other guarantor of the Guaranteed
Obligations or others or otherwise act or refrain from acting;

     (d) release or substitute any one or more endorsers, Guarantors, other guarantors, the
Borrower, any other Guaranteed Party, or other obligors;

     (e) settle or compromise any of the Guaranteed Obligations, any security therefor or any
liability (including any of those hereunder) incurred directly or indirectly in respect thereof or
hereof, and may subordinate the payment of all or any part thereof to the payment of any liability
(whether due or not) of the Borrower or any other Guaranteed Party to creditors of the Borrower or
such other Guaranteed Party other than the Secured Creditors;

 

 

     (f) apply any sums by whomsoever paid or howsoever realized to any liability or liabilities of
the Borrower or any other Guaranteed Party to the Secured Creditors regardless of what liabilities
of the Borrower or such other Guaranteed Party remain unpaid;

     (g) consent to or waive any breach of, or any act, omission or default under, any of the
Interest Rate Protection Agreements or Other Hedging Agreements, the Credit Documents or any of the
instruments or agreements referred to therein, or otherwise amend, modify or supplement any of the
Interest Rate Protection Agreements or Other Hedging Agreements, the Credit Documents or any of
such other instruments or agreements;

     (h) act or fail to act in any manner referred to in this Guaranty which may deprive such
Guarantor of its right to subrogation against the Borrower or any other Guaranteed Party to recover
full indemnity for any payments made pursuant to this Guaranty; and/or

     (i) take any other action or omit to take any other action which would, under otherwise
applicable principles of common law, give rise to a legal or equitable discharge of such Guarantor
from its liabilities under this Guaranty.

     No invalidity, illegality, irregularity or unenforceability of all or any part of the
Guaranteed Obligations, the Credit Documents, the Interest Rate Protection Agreements and Other
Hedging Agreements or any other agreement or instrument relating to the Guaranteed Obligations or
of any security or guarantee therefor shall affect, impair or be a defense to this Guaranty, and
this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any
event or the existence of any other circumstances which might constitute a legal or equitable
discharge of a surety or guarantor except payment in full in cash of the Guaranteed Obligations.

     7. This Guaranty is a continuing one and all liabilities to which it applies or may apply
under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No
failure or delay on the part of any Secured Creditor in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein expressly specified are cumulative
and not exclusive of any rights or remedies which any Secured Creditor would otherwise have. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to any other further
notice or demand in similar or other circumstances or constitute a waiver of the rights of any
Secured Creditor to any other or further action in any circumstances without notice or demand. It
is not necessary for any Secured Creditor to inquire into the capacity or powers of the Borrower or
any other Guaranteed Party or the officers, directors, partners or agents acting or purporting to
act on its or their behalf, and any indebtedness made or created in reliance upon the professed
exercise of such powers shall be guaranteed hereunder.

     8. Any indebtedness of the Borrower or any other Guaranteed Party now or hereafter held by any
Guarantor is hereby subordinated to the indebtedness of the Borrower or such other Guaranteed Party
to the Secured Creditors, and such indebtedness of the Borrower or such other Guaranteed Party to
any Guarantor, if the Administrative Agent or the Collateral Agent, after the occurrence and during
the continuance of an Event of Default, so requests, shall

 

 

be collected, enforced and received by such Guarantor as trustee for the Secured Creditors and
be paid over to the Secured Creditors on account of the indebtedness of the Borrower or the other
Guaranteed Parties to the Secured Creditors then due and owing or payable, if any, but without
otherwise affecting or impairing in any manner the liability of such Guarantor under the other
provisions of this Guaranty. Without limiting the generality of the foregoing, each Guarantor
hereby agrees with the Secured Creditors that it will not exercise any right of subrogation which
it may at any time otherwise have as a result of this Guaranty (whether contractual, under Section
509 of the Bankruptcy Code or otherwise) until all Guaranteed Obligations have been irrevocably
paid in full in cash (other than contingent indemnification obligations that are not then due and
payable); provided, that if any amount shall be paid to such Guarantor on account of such
subrogation rights at any time prior to the irrevocable payment in full in cash of all the
Guaranteed Obligations, such amount shall be held in trust for the benefit of the Secured Creditors
and shall forthwith be paid to the Secured Creditors to be credited and applied upon the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms of the Credit Documents or,
if the Credit Documents do not provide for the application of such amount, to be held by the
Secured Creditors as collateral security for any Guaranteed Obligations thereafter existing.

     9. (a) Each Guarantor waives any right (except as shall be required by applicable law and
cannot be waived) to require the Secured Creditors to: (i) proceed against the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party; (ii) proceed against or exhaust any security held from the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party; or (iii) pursue any other remedy in the Secured Creditors’ power whatsoever. Each
Guarantor waives any defense based on or arising out of any defense of the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any
other party other than payment in full in cash of the Guaranteed Obligations in accordance with the
terms thereof, including, without limitation, any defense based on or arising out of the disability
of the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the
Guaranteed Obligations or any other party, or the unenforceability of the Guaranteed Obligations or
any part thereof from any cause, or the cessation from any cause of the liability of the Borrower
or any other Guaranteed Party other than payment in full of the Guaranteed Obligations in cash.
Any or all of the Collateral under the Credit Documents may be foreclosed upon in one or more
judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and the Secured Creditors may exercise any other right or remedy the Secured Creditors
may have against the Borrower, any other Guaranteed Party or any other party, or any security,
without affecting or impairing in any way the liability of any Guarantor hereunder except to the
extent the Guaranteed Obligations have been paid in full in cash in accordance with the terms
thereof. Each Guarantor waives any defense arising out of any such election by the Secured
Creditors, even though such election operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of such Guarantor against the Borrower, any other Guaranteed
Party or any other party or any security.

     (b) Each Guarantor waives all presentments, demands for performance, protests and notices,
including, without limitation, notices of nonperformance, notices of protest, notices of dishonor,
notices of acceptance of this Guaranty, and notices of the existence, creation

 

 

or incurring of new or additional indebtedness. Each Guarantor assumes all responsibility for
being and keeping itself informed of the Borrower’s and each other Guaranteed Party’s financial
condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligations and the nature, scope and extent of the risks which such Guarantor assumes
and incurs hereunder, and agrees that the Secured Creditors shall have no duty to advise any
Guarantor of information known to them regarding such circumstances or risks. Each Guarantor
acknowledges and agrees that (x) the Secured Creditors shall have no obligation to investigate the
financial condition or affairs of the Borrower, any other Guaranteed Party or any other Guarantor
for the benefit of such Guarantor nor to advise such Guarantor of any fact respecting, or any
change in, the financial condition, assets or affairs of the Borrower, any other Guaranteed Party
or any other Guarantor that might become known to any Secured Creditor at any time, whether or not
such Secured Creditor knows or believes or has reason to know or believe that any such fact or
change is unknown to such Guarantor, or might (or does) increase the risk of such Guarantor as
guarantor hereunder, or might (or would) affect the willingness of such Guarantor to continue as a
guarantor of the Guaranteed Obligations hereunder and (y) the Secured Creditors shall have no duty
to advise any Guarantor of information known to them regarding any of the aforementioned
circumstances or risks.

     (c) Each Guarantor hereby acknowledges and agrees that no Secured Creditor nor any other
Person shall be under any obligation (a) to marshal any assets in favor of such Guarantor or in
payment of any or all of the liabilities of any Guaranteed Party under the Credit Documents or the
obligation of such Guarantor hereunder or (b) to pursue any other remedy that such Guarantor may or
may not be able to pursue itself any right to which such Guarantor hereby waives.

     (d) Each Guarantor warrants and agrees that each of the waivers set forth in Section 3 and in
this Section 9 is made with full knowledge of its significance and consequences and that if any of
such waivers are determined to be contrary to any applicable law or public policy, such waivers
shall be effective only to the maximum extent permitted by applicable law.

     10. Notwithstanding anything to the contrary contained elsewhere in this Guaranty, the Secured
Creditors agree that this Guaranty may be enforced only by the action of the Administrative Agent
or the Collateral Agent, in each case acting upon the instructions of the Required Lenders (or,
after the date on which all Credit Document Obligations have been paid in full, the holders of at
least a majority of the outstanding Other Obligations) and that no other Secured Creditors shall
have any right individually to seek to enforce or to enforce this Guaranty or to realize upon the
security to be granted by the Security Documents, it being understood and agreed that such rights
and remedies may be exercised by the Administrative Agent or the Collateral Agent or, after all the
Credit Document Obligations have been paid in full (other than contingent indemnification
obligations that are not then due and payable), by the holders of at least a majority of the
outstanding Other Obligations, as the case may be, for the benefit of the Secured Creditors upon
the terms of this Guaranty and the Security Documents. The Secured Creditors further agree that
this Guaranty may not be enforced against any director, officer, employee, partner, member or
stockholder of any Guarantor (except to the extent such partner, member or stockholder is also a
Guarantor hereunder). It is understood and agreed that the agreement in this Section 10 is
among and solely for the benefit of the Secured Creditors and that, if the Required Lenders (or,
after the date on which all Credit Document Obligations have

 

 

been paid in full, the holders of at least a majority of the outstanding Other Obligations) so
agree (without requiring the consent of any Guarantor), this Guaranty may be directly enforced by
any Secured Creditor.

     11. In order to induce the Lenders to make Loans to, and issue Letters of Credit for the
account of, the Borrower pursuant to the Credit Agreement, and in order to induce the Other
Creditors to execute, deliver and perform the Interest Rate Protection Agreements and Other Hedging
Agreements, each Guarantor represents, warrants and covenants that:

     (a) Such Guarantor (i) is a duly organized and validly existing corporation, partnership or
limited liability company, as the case may be, in good standing under the laws of the jurisdiction
of its organization, (ii) has the corporate, partnership or limited liability company power and
authority, as the case may be, to own its property and assets and to transact the business in which
it is engaged and presently proposes to engage and (iii) is duly qualified and is authorized to do
business and is in good standing in each jurisdiction where the nature of its business requires
such qualification except (x) in the case of preceding clauses (i) and (ii), for Immaterial
Subsidiaries, and (y) in the case of preceding clause (iii), for failures to be so qualified which,
either individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     (b) Such Guarantor has the corporate, partnership or limited liability company power and
authority, as the case may be, to execute, deliver and perform the terms and provisions of this
Guaranty and each other Credit Document to which it is a party and has taken all necessary
corporate, partnership or limited liability company action, as the case may be, to authorize the
execution, delivery and performance by it of this Guaranty and each such other Credit Document.
Such Guarantor has duly executed and delivered this Guaranty and each other Credit Document to
which it is a party, and this Guaranty and each such other Credit Document constitutes the legal,
valid and binding obligation of such Guarantor enforceable in accordance with its terms, except to
the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights
and by equitable principles (regardless of whether enforcement is sought in equity or at law).

     (c) Neither the execution, delivery or performance by such Guarantor of this Guaranty or any
other Credit Document to which it is a party, nor compliance by it with the terms and provisions
hereof and thereof, will (i) contravene in any material respect any provision of any applicable
law, statute, rule or regulation or any applicable order, writ, injunction or decree of any court
or governmental instrumentality, (ii) conflict with or result in any breach of any of the terms,
covenants, conditions or provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security
Documents) upon any of the property or assets of such Guarantor or any of its Subsidiaries pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement, credit agreement, or any
other material agreement, contract or instrument to which such Guarantor or any of its Subsidiaries
is a party or by which it or any of its property or assets is bound or to which it may be subject
or (iii) violate any provision of the certificate or articles of incorporation, by-laws,
partnership agreement or limited liability company agreement (or

 

 

equivalent organizational documents), as the case may be, of such Guarantor or any of its
Subsidiaries.

     (d) No order, consent, approval, license, authorization or validation of, or filing, recording
or registration with (except as have been obtained or made and which remain in full force and
effect), or exemption by, any governmental or public body or authority, or any subdivision thereof,
is required to authorize, or is required for, (i) the execution, delivery and performance of this
Guaranty by such Guarantor or any other Credit Document to which such Guarantor is a party or (ii)
the legality, validity, binding effect or enforceability of this Guaranty or any other Credit
Document to which such Guarantor is a party.

     (e) There are no actions, suits or proceedings pending or, to such Guarantor’s knowledge,
threatened (i) with respect to this Guaranty or any other Credit Document to which such Guarantor
is a party or (ii) with respect to such Guarantor or any of its Subsidiaries that, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

     12. The Guarantors hereby jointly and severally agree to pay all reasonable out-of-pocket
costs and expenses of the Administrative Agent in connection with the enforcement of this Guaranty
and of the Administrative Agent in connection with any amendment, waiver or consent relating hereto
(including, in each case, without limitation, the reasonable fees and disbursements of counsel
employed by the Administrative Agent).

     13. This Guaranty shall be binding upon each Guarantor and its successors and assigns and
shall inure to the benefit of the Secured Creditors and their successors and assigns.

     14. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or
terminated except with the written consent of each Guarantor directly affected thereby and with the
written consent of either (x) the Required Lenders (or, to the extent required by Section 13.12 of
the Credit Agreement, with the written consent of each Lender) at all times prior to the time on
which all Credit Document Obligations have been paid in full (other than contingent indemnification
obligations that are not then due and payable) or (y) the holders of at least a majority of the
outstanding Other Obligations at all times after the time on which all Credit Document Obligations
have been paid in full (other than contingent indemnification obligations that are not then due and
payable); provided, that any change, waiver, modification or variance affecting the rights
and benefits of a single Class (as defined below) of Secured Creditors (and not all Secured
Creditors in a like or similar manner) shall also require the written consent of the Requisite
Creditors (as defined below) of such Class of Secured Creditors (it being understood that the
addition or release of any Guarantor hereunder in accordance with the terms hereof or the Credit
Agreement shall not constitute a change, waiver, discharge or termination affecting any Guarantor
other than the Guarantor so added or released and shall not require the consent of any Secured
Creditor other than the Administrative Agent). For the purpose of this Guaranty, the term
“Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender
Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as the holders
of the Other Obligations. For the purpose of this Guaranty, the term “Requisite Creditors”
of any Class shall mean (x) with respect to the Credit Document

 

 

Obligations, the Required Lenders (or, to the extent required by Section 13.12 of the Credit
Agreement, each Lender) and (y) with respect to the Other Obligations, the holders of at least a
majority of all obligations outstanding from time to time under the Interest Rate Protection
Agreements and Other Hedging Agreements.

     15. Each Guarantor acknowledges that an executed (or conformed) copy of each of the Credit
Documents and Interest Rate Protection Agreements or Other Hedging Agreements has been made
available to a senior officer of such Guarantor and such officer is familiar with the contents
thereof.

     16. In addition to any rights and remedies now or hereafter granted under applicable law
(including, without limitation, Section 151 of the New York Debtor and Secured Creditor Law), the
Security Documents or otherwise, and not by way of limitation of any such rights or remedies, upon
any Guaranteed Obligation becoming due and payable by the Borrower (whether at the stated maturity,
by acceleration or otherwise), each Secured Creditor is hereby authorized, at any time or from time
to time, without notice to any Guarantor or to any other Person, any such notice being expressly
waived, to set off and to appropriate and apply any and all deposits (general or special) and any
other indebtedness at any time held or owing by such Secured Creditor (including, without
limitation, by branches and agencies of such Secured Creditor wherever located) to or for the
credit or the account of such Guarantor, against and on account of the obligations and liabilities
of such Guarantor to such Secured Creditor under this Guaranty, irrespective of whether or not such
Secured Creditor shall have made any demand hereunder and although said obligations, liabilities,
deposits or claims, or any of them, shall be contingent or unmatured.

     17. Except as otherwise provided herein, all notices, requests, demands or other
communications to or upon the respective parties hereto shall be sent or delivered by mail,
telecopy or courier service and all such notices and communications shall, when mailed, telecopied,
or sent by overnight courier, be effective when deposited in the mails, delivered to the overnight
courier, as the case may be, or sent by telecopier, except that notices and communications to the
Administrative Agent or any Guarantor shall not be effective until received by the Administrative
Agent or such Guarantor, as the case may be. All notices and other communications shall be in
writing and addressed to such party at (i) in the case of any Lender Creditor, as provided in the
Credit Agreement, (ii) in the case of any Guarantor, at its address set forth opposite its
signature page below, and (iii) in the case of any Other Creditor, at such address as such Other
Creditor shall have specified in writing to the Borrower; or in any case at such other address as
any of the Persons listed above may hereafter notify the others in writing.

     18. If any claim is ever made upon any Secured Creditor for repayment or recovery of any
amount or amounts received in payment or on account of any of the Guaranteed Obligations and any of
the aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or
order of any court or administrative body having jurisdiction over such payee or any of its
property or (ii) any settlement or compromise of any such claim effected by such payee with any
such claimant (including, without limitation, the Borrower or any other Guaranteed Party) then and
in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise
shall be binding upon such Guarantor, notwithstanding any

 

 

revocation hereof or the cancellation of any Note, any Interest Rate Protection Agreement, any
Other Hedging Agreement or any other instrument evidencing any liability of the Borrower or any
other Guaranteed Party, and such Guarantor shall be and remain liable to the aforesaid payees
hereunder for the amount so repaid or recovered to the same extent as if such amount had never
originally been received by any such payee.

     19. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE SECURED CREDITORS AND OF THE
UNDERSIGNED HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK. Any legal action or proceeding with respect to this Guaranty or any other Credit
Document to which any Guarantor is a party shall be brought in the courts of the State of New York
or of the United States of America for the Southern District of New York in each case which are
located in the County of New York, and, by execution and delivery of this Guaranty, each Guarantor
hereby irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts. Each Guarantor hereby further
irrevocably waives any claim that any such court lacks personal jurisdiction over such Guarantor,
and agrees not to plead or claim in any legal action or proceeding with respect to this Guaranty or
any other Credit Document to which such Guarantor is a party brought in any of the aforesaid courts
that any such court lacks personal jurisdiction over such Guarantor. Each Guarantor further
irrevocably consents to the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or certified mail, postage
prepaid, to such Guarantor at its address set forth opposite its signature below, such service to
become effective 30 days after such mailing. Each Guarantor hereby irrevocably waives any
objection to such service of process and further irrevocably waives and agrees not to plead or
claim in any action or proceeding commenced hereunder or under any other Credit Document to which
such Guarantor is a party that such service of process was in any way invalid or ineffective.
Nothing herein, however, shall affect the right of any of the Secured Creditors to serve process in
any other manner permitted by law or to commence legal proceedings or otherwise proceed against
each Guarantor in any other jurisdiction.

     (b) Each Guarantor hereby irrevocably waives (to the fullest extent permitted by applicable
law) any objection which it may now or hereafter have to the laying of venue of any of the
aforesaid actions or proceedings arising out of or in connection with this Guaranty or any other
Credit Document to which such Guarantor is a party brought in the courts referred to in clause (a)
above and hereby further irrevocably waives and agrees not to plead or claim in any such court that
such action or proceeding brought in any such court has been brought in an inconvenient forum.

     (c) EACH GUARANTOR AND EACH SECURED CREDITOR (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS
GUARANTY) HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, THE OTHER CREDIT DOCUMENTS TO WHICH SUCH
GUARANTOR IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     20. In the event that all of the Equity Interests of one or more Guarantors is sold or
otherwise disposed of or liquidated in compliance with the requirements of Section 10.02

 

 

of the Credit Agreement (or such sale, other disposition or liquidation has been approved in
writing by the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit
Agreement)) and the proceeds of such sale, disposition or liquidation are applied in accordance
with the provisions of the Credit Agreement, to the extent applicable, such Guarantor shall upon
consummation of such sale or other disposition (except to the extent that such sale or disposition
is to Holdings or another Credit Party) be released from this Guaranty automatically and without
further action and this Guaranty shall, as to each such Guarantor or Guarantors, terminate, and
have no further force or effect (it being understood and agreed that the sale of one or more
Persons that own, directly or indirectly, all of the Equity Interests of any Guarantor shall be
deemed to be a sale of such Guarantor for the purposes of this Section 20).

     21. At any time a payment in respect of the Guaranteed Obligations is made under this
Guaranty, the right of contribution of each Guarantor against each other Guarantor shall be
determined as provided in the immediately following sentence, with the right of contribution of
each Guarantor to be revised and restated as of each date on which a payment (a “Relevant
Payment”) is made on the Guaranteed Obligations under this Guaranty. At any time that a
Relevant Payment is made by a Guarantor that results in the aggregate payments made by such
Guarantor in respect of the Guaranteed Obligations to and including the date of the Relevant
Payment exceeding such Guarantor’s Contribution Percentage (as defined below) of the aggregate
payments made by all Guarantors in respect of the Guaranteed Obligations to and including the date
of the Relevant Payment (such excess, the “Aggregate Excess Amount”), each such Guarantor
shall have a right of contribution against each other Guarantor who has made payments in respect of
the Guaranteed Obligations to and including the date of the Relevant Payment in an aggregate amount
less than such other Guarantor’s Contribution Percentage of the aggregate payments made to and
including the date of the Relevant Payment by all Guarantors in respect of the Guaranteed
Obligations (the aggregate amount of such deficit, the “Aggregate Deficit Amount”) in an
amount equal to (x) a fraction the numerator of which is the Aggregate Excess Amount of such
Guarantor and the denominator of which is the Aggregate Excess Amount of all Guarantors multiplied
by (y) the Aggregate Deficit Amount of such other Guarantor. A Guarantor’s right of contribution
pursuant to the preceding sentences shall arise at the time of each computation, subject to
adjustment to the time of each computation; provided that no Guarantor may take any action
to enforce such right until the Guaranteed Obligations have been irrevocably paid in full in cash
and the Total Commitment and all Letters of Credit have been terminated, it being expressly
recognized and agreed by all parties hereto that any Guarantor’s right of contribution arising
pursuant to this Section 21 against any other Guarantor shall be expressly junior and
subordinate to such other Guarantor’s obligations and liabilities in respect of the Guaranteed
Obligations and any other obligations owing under this Guaranty. As used in this Section
21: (i) each Guarantor’s “Contribution Percentage” shall mean the percentage obtained
by dividing (x) the Adjusted Net Worth (as defined below) of such Guarantor by (y) the aggregate
Adjusted Net Worth of all Guarantors; (ii) the “Adjusted Net Worth” of each Guarantor shall
mean the greater of (x) the Net Worth (as defined below) of such Guarantor and (y) zero; and (iii)
the “Net Worth” of each Guarantor shall mean the amount by which the fair saleable value of
such Guarantor’s assets on the date of any Relevant Payment exceeds its existing debts and other
liabilities (including contingent liabilities, but without giving effect to any Guaranteed
Obligations arising under this Guaranty or any guaranteed obligations arising under any guaranty of
the Senior Notes) on such date. Notwithstanding anything to the contrary contained above, any
Guarantor that is released from this Guaranty pursuant to Section 20

 

 

hereof shall thereafter have no contribution obligations, or rights, pursuant to
this Section 21, and at the time of any such release, if the released Guarantor had an
Aggregate Excess Amount or an Aggregate Deficit Amount, same shall be deemed reduced to $0, and the
contribution rights and obligations of the remaining Guarantors shall be recalculated on the
respective date of release (as otherwise provided above) based on the payments made hereunder by
the remaining Guarantors. All parties hereto recognize and agree that, except for any right of
contribution arising pursuant to this Section 21, each Guarantor who makes any payment in
respect of the Guaranteed Obligations shall have no right of contribution or subrogation against
any other Guarantor in respect of such payment until all of the Guaranteed Obligations have been
irrevocably paid in full in cash (other than contingent indemnification obligations that are not
then due and payable). Each of the Guarantors recognizes and acknowledges that the rights to
contribution arising hereunder shall constitute an asset in favor of the party entitled to such
contribution. In this connection, each Guarantor has the right to waive its contribution right
against any Guarantor to the extent that after giving effect to such waiver such Guarantor would
remain solvent, in the reasonable determination of the Required Lenders.

     22. Each Guarantor and each Secured Creditor (by its acceptance of the benefits of this
Guaranty) hereby confirms that it is its intention that this Guaranty not constitute a fraudulent
transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act
of any similar Federal or state law. To effectuate the foregoing intention, each Guarantor and
each Secured Creditor (by its acceptance of the benefits of this Guaranty) hereby irrevocably
agrees that the Guaranteed Obligations guaranteed by such Guarantor shall be limited to such amount
as will, after giving effect to such maximum amount and all other (contingent or otherwise)
liabilities of such Guarantor that are relevant under such laws and after giving effect to any
rights to contribution pursuant to any agreement providing for an equitable contribution among such
Guarantor and the other Guarantors, result in the Guaranteed Obligations of such Guarantor in
respect of such maximum amount not constituting a fraudulent transfer or conveyance.

     23. This Guaranty may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.

     24. All payments made by any Guarantor hereunder will be made without setoff, counterclaim or
other defense and on the same basis as payments are made by the Borrower under Sections 5.03 and
5.04 of the Credit Agreement.

     25. It is understood and agreed that any Wholly-Owned Domestic Subsidiary of the Borrower that
is required to execute a counterpart of this Guaranty after the date hereof pursuant to the Credit
Agreement shall become a Guarantor hereunder by (x) executing and delivering a counterpart hereof
(or a Joinder Agreement) to the Administrative Agent and (y) taking all actions as specified in
this Guaranty as would have been taken by such Guarantor had it been an original party to this
Guaranty, in each case with all documents and actions required to be taken above to be taken to the
reasonable satisfaction of the Administrative Agent.

*   *   *

 

 

     IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of
the date first above written.

	 	 	 

	Address:

	 	TSI 217 BROADWAY, LLC
	c/o Town Sports International, LLC

	 	TSI ALEXANDRIA, LLC
	5 Penn Plaza, 4th Floor

	 	TSI ALEXANDRIA WEST, LLC
	New York, NY 10001

	 	TSI ALLSTON, LLC
	Attention: Dan Gallagher

	 	TSI ANDOVER, LLC
	Tel. No.: (212) 246-6700

	 	TSI ARDMORE, LLC
	Fax No.: (212) 246-8422

	 	TSI ARTHRO-FITNESS SERVICES, LLC
	 

	 	TSI ASTORIA, LLC
	 

	 	TSI BATTERY PARK, LLC
	 

	 	TSI BAY RIDGE 86TH STREET, LLC
	 

	 	TSI BAYONNE, LLC
	 

	 	TSI BAYRIDGE, LLC
	 

	 	TSI BENSONHURST, LLC
	 

	 	TSI BETHESDA, LLC
	 

	 	TSI BOYLSTON, LLC
	 

	 	TSI BROADWAY, LLC
	 

	 	TSI BROOKLYN BELT, LLC
	 

	 	TSI BRUNSWICK, LLC
	 

	 	TSI BULFINCH, LLC
	 

	 	TSI BUTLER, LLC
	 

	 	TSI CARMEL, LLC
	 

	 	TSI CASH MANAGEMENT, LLC
	 

	 	TSI CENTRAL SQUARE, LLC
	 

	 	TSI CHERRY HILL, LLC
	 

	 	TSI CHEVY CHASE, LLC
	 

	 	TSI CLARENDON, LLC
	 

	 	TSI CLIFTON, LLC
	 

	 	TSI COBBLE HILL, LLC
	 

	 	TSI COLONIA, LLC
	 

	 	TSI COLUMBIA HEIGHTS, LLC
	 

	 	TSI COMMACK, LLC
	 

	 	TSI CONNECTICUT AVENUE, LLC
	 

	 	TSI COURT STREET, LLC
	 

	 	TSI CROTON, LLC
	 

	 	TSI DANBURY, LLC
	 

	 	TSI DAVIS SQUARE, LLC
	 

	 	TSI DEDHAM, LLC,
	 

	 	      each as a Guarantor

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	     
     Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 

	 

	 	TSI DEER PARK, LLC
	 

	 	TSI DOBBS FERRY, LLC
	 

	 	TSI DOWNTOWN CROSSING, LLC
	 

	 	TSI DUPONT CIRCLE, INC.
	 

	 	TSI DUPONT II, INC.
	 

	 	TSI EAST 23, LLC
	 

	 	TSI EAST 31, LLC
	 

	 	TSI EAST 34, LLC
	 

	 	TSI EAST 36, LLC
	 

	 	TSI EAST 41, LLC
	 

	 	TSI EAST 48, LLC
	 

	 	TSI EAST 51, LLC
	 

	 	TSI EAST 59, LLC
	 

	 	TSI EAST 76, LLC
	 

	 	TSI EAST 86, LLC
	 

	 	TSI EAST 91, LLC
	 

	 	TSI EAST BRUNSWICK, LLC
	 

	 	TSI EAST MEADOW, LLC
	 

	 	TSI ENGLEWOOD, LLC
	 

	 	TSI F STREET, LLC
	 

	 	TSI FAIRFAX, LLC
	 

	 	TSI FENWAY, LLC
	 

	 	TSI FIRST AVENUE, LLC
	 

	 	TSI FOREST HILLS, LLC
	 

	 	TSI FORT LEE, LLC
	 

	 	TSI FRAMINGHAM, LLC
	 

	 	TSI FRANKLIN (MA), LLC
	 

	 	TSI FRANKLIN PARK, LLC
	 

	 	TSI FREEHOLD, LLC
	 

	 	TSI GALLERY PLACE, LLC
	 

	 	TSI GARDEN CITY, LLC
	 

	 	TSI GARNERVILLE, LLC
	 

	 	TSI GEORGETOWN, LLC
	 

	 	TSI GERMANTOWN, LLC
	 

	 	TSI GLENDALE, LLC
	 

	 	TSI GLOVER, LLC
	 

	 	TSI GRAND CENTRAL, LLC
	 

	 	TSI GREAT NECK, LLC
	 

	 	TSI GREENWICH, LLC,
	 

	 	     each as a Guarantor

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	          
Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 

	 

	 	TSI HARTSDALE, LLC
	 

	 	TSI HAWTHORNE, LLC
	 

	 	TSI HERALD, LLC
	 

	 	TSI HICKSVILLE, LLC
	 

	 	TSI HIGHPOINT, LLC
	 

	 	TSI HOBOKEN, LLC
	 

	 	TSI HOBOKEN NORTH, LLC
	 

	 	TSI HOLDINGS (CIP), LLC
	 

	 	TSI HOLDINGS (DC), LLC
	 

	 	TSI HOLDINGS (MA), LLC
	 

	 	TSI HOLDINGS (MD), LLC
	 

	 	TSI HOLDINGS (NJ), LLC
	 

	 	TSI HOLDINGS (PA), LLC
	 

	 	TSI HOLDINGS (VA), LLC
	 

	 	TSI HUNTINGTON, LLC
	 

	 	TSI INTERNATIONAL, INC.
	 

	 	TSI IRVING PLACE, LLC
	 

	 	TSI JAMAICA ESTATES, LLC
	 

	 	TSI JERSEY CITY, LLC
	 

	 	TSI K STREET, LLC
	 

	 	TSI LARCHMONT, LLC
	 

	 	TSI LEXINGTON (MA), LLC
	 

	 	TSI LINCOLN, LLC
	 

	 	TSI LIVINGSTON, LLC
	 

	 	TSI LONG BEACH, LLC
	 

	 	TSI LYNNFIELD, LLC
	 

	 	TSI M STREET, LLC
	 

	 	TSI MAHWAH, LLC
	 

	 	TSI MAMARONECK, LLC
	 

	 	TSI MARKET STREET, LLC
	 

	 	TSI MARLBORO, LLC
	 

	 	TSI MATAWAN, LLC
	 

	 	TSI MERCER STREET, LLC
	 

	 	TSI MIDWOOD, LLC
	 

	 	TSI MONTCLAIR, LLC
	 

	 	TSI MORRIS PARK, LLC
	 

	 	TSI MURRAY HILL, LLC
	 

	 	TSI NANUET, LLC
	 

	 	TSI NATICK, LLC,
	 

	 	     each as a Guarantor

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	          
Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 

	 

	 	TSI NEW ROCHELLE, LLC
	 

	 	TSI NEWARK, LLC
	 

	 	TSI NEWBURY STREET, LLC
	 

	 	TSI NEWTON, LLC
	 

	 	TSI NO SWEAT, LLC
	 

	 	TSI NORTH BETHESDA, LLC
	 

	 	TSI NORWALK, LLC
	 

	 	TSI OCEANSIDE, LLC
	 

	 	TSI OLD BRIDGE, LLC
	 

	 	TSI PARSIPPANY, LLC
	 

	 	TSI PLAINSBORO, LLC
	 

	 	TSI PORT JEFFERSON, LLC
	 

	 	TSI PRINCETON, LLC
	 

	 	TSI PRINCETON NORTH, LLC
	 

	 	TSI PROVIDENCE DOWNTOWN, LLC
	 

	 	TSI PROVIDENCE EASTSIDE, LLC
	 

	 	TSI RADNOR, LLC
	 

	 	TSI RAMSEY, LLC
	 

	 	TSI READE STREET, LLC
	 

	 	TSI REGO PARK, LLC
	 

	 	TSI RIDGEWOOD, LLC
	 

	 	TSI RODIN PLACE, LLC
	 

	 	TSI SCARSDALE, LLC
	 

	 	TSI SEAPORT, LLC
	 

	 	TSI SHERIDAN, LLC
	 

	 	TSI SILVER SPRING, LLC
	 

	 	TSI SMITHTOWN, LLC
	 

	 	TSI SOCIETY HILL, LLC
	 

	 	TSI SOHO, LLC
	 

	 	TSI SOMERS, LLC
	 

	 	TSI SOMERSET, LLC
	 

	 	TSI SOUTH BETHESDA, LLC
	 

	 	TSI SOUTH END, LLC
	 

	 	TSI SOUTH PARK SLOPE, LLC
	 

	 	TSI SOUTH STATION, LLC
	 

	 	TSI SPRINGFIELD, LLC
	 

	 	TSI STAMFORD DOWNTOWN, LLC
	 

	 	TSI STAMFORD POST, LLC
	 

	 	TSI STAMFORD RINKS, LLC,
	 

	 	     each as a Guarantor

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	          
Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 

	 

	 	TSI STATEN ISLAND, LLC
	 

	 	TSI STERLING, LLC
	 

	 	TSI SUNNYSIDE, LLC
	 

	 	TSI SYOSSET, LLC
	 

	 	TSI UNIVERSITY MANAGEMENT, LLC
	 

	 	TSI VARICK STREET, LLC
	 

	 	TSI WALL STREET, LLC
	 

	 	TSI WALTHAM, LLC
	 

	 	TSI WASHINGTON, INC.
	 

	 	TSI WATER STREET, LLC
	 

	 	TSI WATERTOWN, LLC
	 

	 	TSI WAYLAND, LLC
	 

	 	TSI WELLESLEY, LLC
	 

	 	TSI WELLINGTON CIRCLE, LLC
	 

	 	TSI WEST 14, LLC
	 

	 	TSI WEST 16, LLC
	 

	 	TSI WEST 23, LLC
	 

	 	TSI WEST 38, LLC
	 

	 	TSI WEST 41, LLC
	 

	 	TSI WEST 44, LLC
	 

	 	TSI WEST 48, LLC
	 

	 	TSI WEST 52, LLC
	 

	 	TSI WEST 73, LLC
	 

	 	TSI WEST 76, LLC
	 

	 	TSI WEST 80, LLC
	 

	 	TSI WEST 94, LLC
	 

	 	TSI WEST 115TH STREET, LLC
	 

	 	TSI WEST 125, LLC
	 

	 	TSI WEST 145TH STREET, LLC
	 

	 	TSI WEST CALDWELL, LLC
	 

	 	TSI WEST HARTFORD, LLC
	 

	 	TSI WEST NEWTON, LLC
	 

	 	TSI WEST NYACK, LLC
	 

	 	TSI WEST SPRINGFIELD, LLC
	 

	 	TSI WESTBOROUGH, LLC
	 

	 	TSI WESTPORT, LLC
	 

	 	TSI WESTWOOD, LLC
	 

	 	TSI WEYMOUTH, LLC,
	 

	 	     each as a Guarantor

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	          
Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 

	 

	 	TSI WHITE PLAINS, LLC
	 

	 	TSI WHITE PLAINS CITY CENTER, LLC
	 

	 	TSI WHITESTONE, LLC
	 

	 	TSI WOBURN, LLC
	 

	 	TSI WOODMERE, LLC

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Daniel G. Gallagher
 

Name: Daniel G. Gallagher
	 	 
	 

	 	 	 	Title: Senior Vice President — Chief	 	 
	 

	 	 	 	          
Financial Officer	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

 

 

	 	 	 	 	 

	Accepted and Agreed to:	 	 
	 
	 	 	 	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS,	 	 
	as Administrative Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Carin Keegan
 

Name: Carin Keegan
	 	 
	 

	 	Title: Director	 	 
	 
	 	 	 	 
	By:

	 	/s/ Enrique Landaeta
 

Name: Enrique Landaeta
	 	 
	 

	 	Title: Vice President	 	 

Signature page to Town Sports Subsidiaries Guaranty — 2011

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