Document:

EX-10.2

	 
	EXHIBIT 10.2

AMENDED AND RESTATED GUARANTEE

AND COLLATERAL AGREEMENT

dated as of

June 29 , 2007,

among

LIVE NATION, INC. (f/k/a CCE SPINCO, INC.),

LIVE NATION WORLDWIDE, INC. (f/k/a SFX ENTERTAINMENT, INC.),

THE OTHER SUBSIDIARIES OF LIVE NATION, INC.

IDENTIFIED HEREIN

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

	 

1

TABLE OF CONTENTS

ARTICLE I

Definitions

	 	 	SECTION 1.01. Credit Agreement

	 	 	SECTION 1.02. Other Defined Terms

ARTICLE II

Guarantee

	 	 	SECTION 2.01. Guarantee

	 	 	SECTION 2.02. Guarantee of Payment

	 	 	SECTION 2.03. No Limitations

	 	 	SECTION 2.04. Reinstatement

	 	 	SECTION 2.05. Agreement To Pay; Subrogation

	 	 	SECTION 2.06. Information

ARTICLE III

Pledge of Securities

	 	 	SECTION 3.01. Pledge

	 	 	SECTION 3.02. Delivery of the Pledged Collateral

	 	 	SECTION 3.03. Representations, Warranties and Covenants

	 	 	SECTION 3.04. Limited Liability Company and Limited Partnership Interests

	 	 	SECTION 3.05. Registration in Nominee Name; Denominations

	 	 	SECTION 3.06. Voting Rights; Dividends and Interest

ARTICLE IV

Security Interests in Personal Property

	 	 	SECTION 4.01. Security Interest

	 	 	SECTION 4.02. Representations and Warranties

	 	 	SECTION 4.03. Covenants

	 	 	SECTION 4.04. Other Actions

	 	 	SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral

ARTICLE V

Remedies

	 	 	SECTION 5.01. Remedies Upon Default

	 	 	SECTION 5.02. Application of Proceeds

	 	 	SECTION 5.03. Grant of License to Use Intellectual Property

	 	 	SECTION 5.04. Securities Act

	 	 	SECTION 5.05. Registration

ARTICLE VI

Indemnity, Subrogation and Subordination

	 	 	SECTION 6.01. Indemnity and Subrogation

	 	 	SECTION 6.02. Contribution and Subrogation

	 	 	SECTION 6.03. Subordination

ARTICLE VII

Miscellaneous

	 	 	SECTION 7.01. Notices

	 	 	SECTION 7.02. Waivers; Amendment

	 	 	SECTION 7.03. Administrative Agent’s Fees and Expenses; Indemnification

	 	 	SECTION 7.04. Successors and Assigns

	 	 	SECTION 7.05. Survival of Agreement

	 	 	SECTION 7.06. Counterparts; Effectiveness; Several Agreement

	 	 	SECTION 7.07. Severability

	 	 	SECTION 7.08. Right of Set-Off

	 	 	SECTION 7.09. Governing Law; Jurisdiction; Consent to Service of Process

	 	 	SECTION 7.10. WAIVER OF JURY TRIAL

	 	 	SECTION 7.11. Headings

	 	 	SECTION 7.12. Security Interest Absolute

	 	 	SECTION 7.13. Termination or Release

	 	 	SECTION 7.14. Additional Subsidiaries

	 	 	SECTION 7.15. Administrative Agent Appointed Attorney-in-Fact

	 	 	SECTION 7.16. Effect of Restatement; Reaffirmation of Guarantee and Security Interest

	 	 	 
	Schedules

Schedule I

Schedule II

Schedule III

Schedule IV

Schedule V

Exhibits

Exhibit I

Exhibit II

	 	

Subsidiary Loan Parties

Pledged Stock; Pledged Debt Securities

Intellectual Property

Insurance Requirements

Commercial Tort Claims

Form of Supplement

Form of Perfection Certificate

2

AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT dated
as of June 29, 2007, among LIVE NATION, INC. (f/k/a CCE SPINCO, INC.),
LIVE NATION WORLDWIDE, INC., (f/k/a SFX ENTERTAINMENT, INC.) the other
Subsidiaries of LIVE NATION, INC. identified herein and JPMORGAN CHASE
BANK, N.A., as Administrative Agent.

Reference is made to the Amended and Restated Credit Agreement dated as of June 29, 2007 (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Live Nation, Inc. (“Parent”), Live Nation Worldwide, Inc. (the “US
Borrower”), the Foreign Borrowers party thereto (together with the US Borrower, the
“Borrowers”), the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative
Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Agent, J.P. Morgan Europe Limited, as
London Agent, and Bank of America, N.A., as Syndication Agent, and to the Guarantee and Collateral
Agreement dated as of December 21, 2005 (the “Existing Guarantee and Collateral Agreement”)
among Parent, the US Borrower, the other subsidiaries of Live Nation, Inc. identified therein and
the Administrative Agent, pursuant to which, among other things, the Grantors party thereto
guaranteed the Obligations (as defined therein) and provided security therefor. The Borrowers, the
other Guarantors and the Administrative Agent desire to amend and restate the Existing Guarantee
and Collateral Agreement in the form hereof to, among other things, reaffirm their obligations
under the Existing Guarantee and Collateral Agreement and to make certain amendments thereto. The
Lenders have agreed to amend the Amended Original Credit Agreement and to extend credit to the
Borrowers subject to the terms and conditions set forth in the Credit Agreement. The consents to
such amendments and the obligations of the Lenders to extend such credit are conditioned upon,
among other things, the execution and delivery of this Agreement. Parent and the Subsidiary Loan
Parties are affiliates of the Borrowers, will derive substantial benefits from the amendments and
the extension of credit to the Borrowers pursuant to the Credit Agreement and are willing to
execute and deliver this Agreement in order to induce the Lenders to agree to such amendments and
extend such credit. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not
otherwise defined herein have the meanings specified in the Credit Agreement. All terms defined in
the New York UCC (as defined herein) and not defined in this Agreement have the meanings specified
therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC.

(b) The rules of construction specified in Section 1.03 of the Credit Agreement also apply to
this Agreement.

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

“Account Debtor” means any Person who is or who may become obligated to any Grantor
under, with respect to or on account of an Account.

“Agreement” means this Guarantee and Collateral Agreement.

“Article 9 Collateral” has the meaning assigned to such term in Section 4.01.

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

“Claiming Party” has the meaning assigned to such term in Section 6.02.

“Collateral” means Article 9 Collateral and Pledged Collateral.

“Contributing Party” has the meaning assigned to such term in Section 6.02.

“Copyright License” means any written agreement, now or hereafter in effect, granting
any right to any third party under any copyright now or hereafter owned by any Grantor or that such
Grantor otherwise has the right to license, or granting any right to any Grantor under any
copyright now or hereafter owned by any third party, and all rights of such Grantor under any such
agreement.

“Copyrights” means all of the following now owned or hereafter acquired by any
Grantor: (a) all copyright rights in any work subject to the copyright laws of the United States
or any other country, whether as author, assignee, transferee or otherwise, and (b) all
registrations and applications for registration of any such copyright in the United States or any
other country, including registrations, recordings, supplemental registrations and pending
applications for registration in the United States Copyright Office, including those listed on
Schedule III.

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

“Existing Guarantee and Collateral Agreement” has the meaning assigned to such term in
the preliminary statement of this Agreement.

“Federal Securities Laws” has the meaning assigned to such term in Section 5.04.

“General Intangibles” means all choses in action and causes of action and all other
intangible personal property of every kind and nature (other than Accounts) now owned or hereafter
acquired by any Grantor, including corporate or other business records, indemnification claims,
contract rights (including rights under leases, whether entered into as lessor or lessee, Swap
Agreements and other agreements), Intellectual Property, goodwill, registrations, franchises, tax
refund claims and any letter of credit, guarantee, claim, security interest or other security held
by or granted to any Grantor to secure payment by an Account Debtor of any of the Accounts.

“Grantors” means Parent, the US Borrower and each other Material Subsidiary that is a
Domestic Subsidiary.

“Guarantors” means Parent, the US Borrower and each other Material Subsidiary that is
a Domestic Subsidiary.

“Guarantee and Collateral Agreement Supplement” means an instrument in the form of
Exhibit I hereto.

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

“Intellectual Property” means all intellectual and similar property of every kind and
nature now owned or hereafter acquired by any Grantor, including inventions, designs, Patents,
Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and databases and all
embodiments or fixations thereof and related documentation, registrations and franchises, and all
additions, improvements and accessions to, and books and records describing or used in connection
with, any of the foregoing.

“License” means any Patent License, Trademark License, Copyright License or other
license or sublicense agreement to which any Grantor is a party.

“Loan Document Obligations” means (a) the due and punctual payment by the Borrowers of
(i) the principal of and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by
any Borrower in respect of any Letter of Credit, when and as due, including payments in respect of
reimbursement of LC Disbursements, interest thereon (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) and obligations to provide cash collateral,
(iii) all reimbursement obligations of the Canadian Borrowers in respect of B/As accepted under or
pursuant to the Credit Agreement and (iv) all other monetary obligations of the Borrowers under the
Credit Agreement and each of the other Loan Documents, including obligations to pay fees, expense
reimbursement obligations and indemnification obligations, whether primary, secondary, direct,
contingent, fixed or otherwise, arising under the Loan Documents (including monetary obligations
incurred during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) and (b) the due and
punctual payment of all the monetary obligations of each other Loan Party under or pursuant to the
Credit Agreement and each of the other Loan Documents

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

“Obligations” means (a) Loan Document Obligations and (b) the due and punctual payment
of all monetary obligations of each Loan Party under each Swap Agreement that (i) is in effect on
the Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as of the
Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a
Lender or an Affiliate of a Lender at the time such Swap Agreement is entered into (other than Swap
Agreements entered into after (A) the principal of and interest on each Loan and all fees payable
under or pursuant to the Credit Agreement have been paid in full, (B) the Lenders have no further
commitment to lend under or pursuant to the Credit Agreement, (C) the LC exposures have been
reduced to zero and (D) the Issuing Banks have no further obligations to issue Letters of Credit).

“Patent License” means any written agreement, now or hereafter in effect, granting to
any third party any right to make, use or sell any invention on which a patent, now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, is in existence, or
granting to any Grantor any right to make, use or sell any invention on which a patent, now or
hereafter owned by any third party, is in existence, and all rights of any Grantor under any such
agreement.

“Patents” means all of the following now owned or hereafter acquired by any Grantor:
(a) all letters patent of the United States or the equivalent thereof in any other country, all
registrations and recordings thereof, and all applications for letters patent of the United States
or the equivalent thereof in any other country, including registrations, recordings and pending
applications in the United States Patent and Trademark Office or any similar offices in any other
country, including those listed on Schedule III, and (b) all reissues, continuations, divisions,
continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed or claimed therein.

“Perfection Certificate” means a certificate substantially in the form of Exhibit II,
completed and supplemented with the schedules and attachments contemplated thereby, and duly
executed by a Financial Officer and the chief legal officer of the US Borrower.

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

“Pledged Debt Securities” has the meaning assigned to such term in Section 3.01.

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

“Pledged Stock” has the meaning assigned to such term in Section 3.01.

“Proceeds” has the meaning specified in Section 9-102 of the New York UCC.

“Secured Parties” means (a) the Lenders, (b) the Administrative Agent, (c) any Issuing
Bank, (d) each counterparty to any Swap Agreement with a Loan Party the obligations under which
constitute Obligations, (e) the beneficiaries of each indemnification obligation undertaken by any
Loan Party under any Loan Document and (f) the successors and assigns of each of the foregoing.

“Security Interest” has the meaning assigned to such term in Section 4.01.

“Subsidiary Loan Parties” means (a) the Subsidiaries identified on Schedule I and
(b) each other Subsidiary that becomes a party to this Agreement as a Subsidiary Loan Party after
the Effective Date.

“Trademark License” means any written agreement, now or hereafter in effect, granting
to any third party any right to use any trademark now or hereafter owned by any Grantor or that any
Grantor otherwise has the right to license, or granting to any Grantor any right to use any
trademark now or hereafter owned by any third party, and all rights of any Grantor under any such
agreement.

“Trademarks” means all of the following now owned or hereafter acquired by any
Grantor: (a) all trademarks, service marks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, trade dress, logos, other source or business
identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all registration and recording applications
filed in connection therewith, including registrations and registration applications in the United
States Patent and Trademark Office or any similar offices in any State of the United States or any
other country or any political subdivision thereof, and all extensions or renewals thereof,
including those listed on Schedule III, (b) all goodwill associated therewith or symbolized thereby
and (c) all other assets, rights and interests that uniquely reflect or embody such goodwill.

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

“US Borrower Subsidiary Party” means each party hereto that is a Subsidiary of the US
Borrower.

ARTICLE II

Guarantee

SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other
Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual
payment of the Obligations. Each Guarantor further agrees that the Obligations may be extended or
renewed, in whole or in part, without notice to or further assent from it, and that it will remain
bound upon its guarantee notwithstanding any extension or renewal of any Obligation. Each
Guarantor waives presentment to, demand of payment from and protest to the applicable Borrower or
any other Loan Party of any of the Obligations, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment.

SECTION 2.02. Guarantee of Payment. Each Guarantor further agrees that its guarantee
hereunder constitutes a guarantee of payment when due and not of collection, and waives any right
to require that any resort be had by the Administrative Agent or any other Secured Party to any
security held for the payment of the Obligations or to any balance of any deposit account or credit
on the books of the Administrative Agent or any other Secured Party in favor of the applicable
Borrower or any other Person.

SECTION 2.03. No Limitations. (a) Except for termination of a Guarantor’s obligations
hereunder as expressly provided in Section 7.13, the obligations of each Guarantor hereunder shall
not be subject to any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any
defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of
the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by (i) the failure of the Administrative Agent or any other Secured Party to
assert any claim or demand or to enforce any right or remedy under the provisions of any Loan
Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release
from any of the terms or provisions of, any Loan Document or any other agreement, including with
respect to any other Guarantor under this Agreement; (iii) the release of any security held by the
Administrative Agent or any other Secured Party for the Obligations or any of them; (iv) any
default, failure or delay, wilful or otherwise, in the performance of the Obligations; or (v) any
other act or omission that may or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of all the Obligations). Each Guarantor expressly
authorizes the Administrative Agent and the other Secured Parties to take and hold security for the
payment of the Obligations, to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and manner of any sale
thereof in their sole discretion or to release or substitute any one or more other guarantors or
obligors upon or in respect of the Obligations, all without affecting the obligations of any
Guarantor hereunder.

(b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based
on or arising out of any defense of the applicable Borrower or any other Loan Party or the
unenforceability of the Obligations or any part thereof from any cause, or the cessation from any
cause of the liability of the applicable Borrower or any other Loan Party, other than the
indefeasible payment in full in cash of all the Obligations. The Administrative Agent and the
other Secured Parties may, at their election, foreclose on any security held by one or more of them
by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of
foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with
the applicable Borrower or any other Loan Party or exercise any other right or remedy available to
them against the applicable Borrower or any other Loan Party, without affecting or impairing in any
way the liability of any Guarantor hereunder except to the extent the Obligations have been
indefeasibly paid in full in cash. To the fullest extent permitted by applicable law, each
Guarantor waives any defense arising out of any such election even though such election operates,
pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or
other right or remedy of such Guarantor against the applicable Borrower or any other Loan Party, as
the case may be, or any security.

SECTION 2.04. Reinstatement. Each Guarantor agrees that its guarantee hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any Obligation is rescinded or must otherwise be restored by the Administrative Agent
or any other Secured Party upon the bankruptcy or reorganization of any Borrower, any other Loan
Party or otherwise.

SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Administrative Agent or any other Secured Party has at law
or in equity against any Guarantor by virtue hereof, upon the failure of the applicable Borrower or
any other Loan Party to pay any Obligation when and as the same shall become due and after the
expiration of any applicable grace period, whether at maturity, by acceleration, after notice of
prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be
paid, to the Administrative Agent for distribution to the applicable Secured Parties in cash the
amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Administrative
Agent as provided above, all rights of such Guarantor against the applicable Borrower or any other
Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement,
indemnity or otherwise shall in all respects be subject to Article VI.

SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping
itself informed of each Borrower’s and each other Loan Party’s financial condition and assets, and
of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the other Secured Parties will have any duty to advise such
Guarantor of information known to it or any of them regarding such circumstances or risks.

ARTICLE III

Pledge of Securities

SECTION 3.01. Pledge. As security for the payment, as the case may be, in full of the
Obligations, each Grantor hereby assigns and pledges to the Administrative Agent, its successors
and assigns, for the benefit of the other Secured Parties, and hereby grants to the Administrative
Agent, its successors and assigns, for the benefit of the other Secured Parties, a security
interest in, all of such Grantor’s right, title and interest in, to and under (a) all Equity
Interests owned by it and listed on Schedule II and any other Equity Interests obtained in the
future by such Grantor and, as reasonably requested by the Administrative Agent, the certificates
or other instruments representing all such Equity Interests (the “Pledged Stock”),
provided that the Pledged Stock shall not include more than 66.5% of the issued and
outstanding voting Equity Interests of any Foreign Subsidiary to the extent that the pledge of any
greater percentage would result in adverse tax consequences; (b)(i) all Indebtedness of Parent, any
Borrower or any other Subsidiary that is evidenced by a promissory note, owing to any Loan Party
and constitutes Collateral and listed opposite the name of such Grantor on Schedule II, (ii) any
debt securities in the future issued to such Grantor and (iii) the promissory notes and any other
instruments evidencing such debt securities (the “Pledged Debt Securities”); (c) all other
property that may be delivered to and held by the Administrative Agent pursuant to the terms of
this Section 3.01; (d) subject to Section 3.06, all payments of principal or interest, dividends,
cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds
received in respect of, the securities referred to in clauses (a) and (b) above; (e) subject to
Section 3.06, all rights and privileges of such Grantor with respect to the securities and other
property referred to in clauses (a), (b), (c) and (d) above; and (f) all Proceeds of any of the
foregoing (the items referred to in clauses (a) through (f) above being collectively referred to as
the “Pledged Collateral”), provided that notwithstanding anything to the contrary
in this Agreement, this Agreement shall not constitute a pledge or grant of a security interest in
any Pledged Collateral if, to the extent and for so long as the Administrative Agent, in
consultation with the US Borrower, reasonably determines that the cost to the Borrowers of creating
or perfecting a pledge or security interest in such Pledged Collateral (taking into account (i) any
adverse tax consequences to Parent, the Borrowers and the other Subsidiaries (including the
imposition of withholding or other material taxes on Lenders) and (ii) with respect to security
interests in Equity Interests in Persons that are not, directly or indirectly, wholly owned by
Parent, any restrictions on the creation or perfection of such security interests (including the
costs of obtaining necessary consents and approvals from other holders of Equity Interest in such
Persons) shall be commercially unreasonable in view of the benefits to be obtained by the Lenders
therefrom.

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

SECTION 3.02. Delivery of the Pledged Collateral. (a) Each Grantor agrees promptly to
deliver or cause to be delivered to the Administrative Agent, for the benefit of the other Secured
Parties, any and all Pledged Securities.

(b) Upon delivery to the Administrative Agent, (i) any Pledged Stock shall be accompanied by
stock powers duly endorsed in blank by the applicable Grantor or other instruments of transfer
satisfactory to the Administrative Agent and by such other instruments and documents as the
Administrative Agent may reasonably request and (ii) all other property comprising part of the
Pledged Collateral shall be accompanied by proper instruments of assignment duly executed by the
applicable Grantor and such other instruments or documents as the Administrative Agent may
reasonably request. Each delivery of Pledged Securities shall be accompanied by a schedule
describing the securities, which schedule shall be attached hereto as Schedule II and made a part
hereof, provided that failure to attach any such schedule hereto shall not affect the
validity of such pledge of such Pledged Securities. Each schedule so delivered shall supplement
any prior schedules so delivered.

SECTION 3.03. Representations, Warranties and Covenants. Each Grantor represents, warrants
and covenants to and with the Administrative Agent, for the benefit of the other Secured Parties,
that with respect to such Grantor:

(a) Schedule II correctly sets forth the percentage of the issued and outstanding
units of each class of the Equity Interests of the issuer thereof represented by such
Grantor’s Pledged Stock and includes all Equity Interests, debt securities and promissory
notes required to be pledged hereunder by such Grantor in order to satisfy the Collateral
and Guarantee Requirement;

(b) the Grantor’s Pledged Stock and Pledged Debt Securities have been duly and validly
authorized and issued by such Grantor and (i) in the case of such Pledged Stock, are fully
paid and nonassessable and (ii) in the case of such Pledged Debt Securities, are legal,
valid and binding obligations of such Grantor, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or law;

(c) except for the security interests granted hereunder, such Grantor (i) is and,
subject to any transfers made in compliance with the Credit Agreement, will continue to be
the direct owner, beneficially and of record, of the Pledged Securities indicated on
Schedule II as owned by such Grantor, (ii) holds the same free and clear of all Liens,
other than Liens created by this Agreement, Permitted Encumbrances and transfers made in
compliance with the Credit Agreement, (iii) will make no assignment, pledge, hypothecation
or transfer of, or create or permit to exist any security interest in or other Lien on, the
Pledged Collateral, other than Liens created by this Agreement, Permitted Encumbrances and
transfers made in compliance with the Credit Agreement and (iv) will defend its title or
interest thereto or therein against any and all Liens (other than Liens created by this
Agreement and Permitted Encumbrances), however, arising, of all Persons whomsoever;

(d) except for restrictions and limitations imposed by the Loan Documents or
securities laws generally and except as described, with respect to Pledged Collateral
pledged by Parent or any Subsidiary on or after the date hereof only, in the applicable
Perfection Certificate, all of such Grantor’s Pledged Collateral is and will continue to be
freely transferable and assignable, and none of such Pledged Collateral is or will be
subject to any option, right of first refusal, shareholders agreement, charter or by-law
provisions or contractual restriction of any nature that might prohibit, impair, delay or
otherwise affect the pledge of such Pledged Collateral hereunder, the sale or disposition
thereof pursuant hereto or the exercise by the Administrative Agent of rights and remedies
hereunder;

(e) each Grantor has the corporate or equivalent power and authority to pledge all of
such Grantor’s Pledged Collateral pledged by it hereunder in the manner hereby done or
contemplated;

(f) no consent or approval of any Governmental Authority, any securities exchange or
any other Person to be obtained by any Loan Party pursuant to any applicable law, rule or
regulation applicable to it was or is necessary to the validity of such Grantor’s pledge
effected hereby (other than such as have been obtained and are in full force and effect);

(g) by virtue of the execution and delivery by such Grantor of this Agreement, when
any of such Grantor’s Pledged Securities are delivered to the Administrative Agent in
accordance with this Agreement, the Administrative Agent will obtain a legal, valid and
perfected first-priority lien upon and security interest in such Pledged Securities as
security for the payment of the Obligations;

(h) such Grantor’s pledge effected hereby is effective to vest in the Administrative
Agent, for the benefit of the other Secured Parties, the rights of the Administrative Agent
in all of such Grantor’s Pledged Collateral as set forth herein; and

(i) except as described, with respect to Pledged Stock pledged by Parent or any
Subsidiary after the date hereof only, in the applicable Perfection Certificate or as
provided in Section 3.04, none of such Grantor’s Pledged Stock consisting of partnership or
limited liability company interests (i) is dealt in or traded on a securities exchange or
securities market, (ii) is a security governed by Article 8 of the New York UCC, (iii) is
an investment company security, (iv) is held in a securities account or (v) constitutes a
“security” or “financial asset” as such terms are defined in Article 8 of the New York UCC.

SECTION 3.04. Limited Liability Company and Limited Partnership Interests. So long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under any
Loan Document is outstanding and unpaid or any Letter of Credit or B/A is outstanding and so long
as the Commitments have not expired or terminated, such Grantor shall not elect to treat any
interest in any limited liability company or limited partnership pledged hereunder as a “security”
within the meaning of Article 8 of the New York UCC or issue any certificate representing such
interest, unless such Grantor provides prior written notification to the Administrative Agent of
such election and immediately delivers any such certificate to the Administrative Agent pursuant to
the terms hereof.

SECTION 3.05. Registration in Nominee Name; Denominations. If an Event of Default shall occur
and be continuing and the Administrative Agent shall give the US Borrower notice of its intent to
exercise such rights, the Administrative Agent, on behalf of the Secured Parties, shall have the
right (in its sole and absolute discretion) to hold the Pledged Securities in its own name as
pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the applicable
Grantor, endorsed or assigned in blank or in favor of the Administrative Agent. Each Grantor will
promptly give to the Administrative Agent copies of any notices or other communications received by
it with respect to Pledged Securities registered in the name of such Grantor. The Administrative
Agent shall at all times have the right to exchange the certificates representing Pledged
Securities for certificates of smaller or larger denominations for any purpose consistent with this
Agreement.

SECTION 3.06. Voting Rights; Dividends and Interest. (a) Unless and until an Event of
Default shall have occurred and be continuing and the Administrative Agent shall have notified the
US Borrower that the rights of the Grantors under this Section 3.06 are being suspended:

(i) Each Grantor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Securities or any part thereof
for any purpose consistent with the terms of this Agreement, the Credit Agreement and the
other Loan Documents, provided that such rights and powers shall not be exercised
in any manner that could reasonably be expected to materially and adversely affect the
rights inuring to a holder of any Pledged Securities or the rights and remedies of any of
the Administrative Agent or the other Secured Parties under this Agreement or the Credit
Agreement or any other Loan Document or the ability of the Secured Parties to exercise the
same.

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

(iii) Each Grantor shall be entitled to receive and retain any and all dividends,
interest, principal and other distributions paid on or distributed in respect of the
Pledged Securities to the extent and only to the extent that such dividends, interest,
principal and other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement, the other Loan Documents
and applicable laws, provided that any noncash dividends, interest, principal or
other distributions that would constitute Pledged Stock or Pledged Debt Securities, whether
resulting from a subdivision, combination or reclassification of the outstanding Equity
Interests of the issuer of any Pledged Securities or received in exchange for Pledged
Securities or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may be a party
or otherwise, shall be and become part of the Pledged Collateral, and, if received by any
Grantor, shall not be commingled by such Grantor with any of its other funds or property
but shall be held separate and apart therefrom, shall be held in trust for the benefit of
the Administrative Agent and the other Secured Parties and shall be forthwith delivered to
the Administrative Agent in the same form as so received (with any necessary endorsement
reasonably requested by the Administrative Agent).

(b) Upon the occurrence and during the continuance of an Event of Default, after the
Administrative Agent shall have notified the US Borrower of the suspension of the rights of the
Grantors under paragraph (a)(i) of this Section 3.06, then all rights of any Grantor to exercise
the voting and/or consensual rights and powers it is entitled to exercise pursuant to
paragraph (a)(i) of this Section 3.06, and the obligations of the Administrative Agent under
paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become
vested in the Administrative Agent, for the benefit of the other Secured Parties, which shall have
the sole and exclusive right and authority to exercise such voting and/or consensual rights and
powers, provided that, unless otherwise directed by the Required Lenders, the
Administrative Agent shall have the right from time to time following and during the continuance of
an Event of Default to permit the Grantors to exercise such rights. After all Events of Default
have been cured or waived and the US Borrower has delivered to the Administrative Agent a
certificate to that effect, each Grantor shall have the exclusive right to exercise the voting
and/or consensual rights and powers that such Grantor would otherwise be entitled to exercise
pursuant to the terms of paragraph (a)(i) above and the obligations of the Administrative Agent
under paragraph (a)(ii) of this Section 3.06 shall be reinstated.

(c) Upon the occurrence and during the continuance of an Event of Default, after the
Administrative Agent shall have notified the US Borrower of the suspension of the rights of the
Grantors under paragraph (a)(iii) of this Section 3.06, then all rights of any Grantor to
dividends, interest, principal or other distributions that such Grantor is authorized to receive
pursuant to paragraph (a)(iii) of this Section 3.06 shall cease, and all such rights shall
thereupon become vested in the Administrative Agent, for the benefit of the other Secured Parties,
which shall have the sole and exclusive right and authority to receive and retain such dividends,
interest, principal or other distributions. All dividends, interest, principal or other
distributions received by any Grantor contrary to the provisions of this Section 3.06 shall be held
in trust for the benefit of the Administrative Agent and the other Secured Parties, shall be
segregated from other property or funds of such Grantor and shall be forthwith delivered to the
Administrative Agent in the same form as so received (with any necessary endorsement reasonably
requested by the Administrative Agent). Any and all money and other property paid over to or
received by the Administrative Agent pursuant to the provisions of this paragraph (b) shall be
retained by the Administrative Agent in an account to be established by the Administrative Agent
upon receipt of such money or other property and shall be applied in accordance with the provisions
of Section 5.02. After all Events of Default have been cured or waived and the US Borrower has
delivered to the Administrative Agent a certificate to that effect, the Administrative Agent shall
promptly repay to each Grantor (without interest) all dividends, interest, principal or other
distributions that such Grantor would otherwise be permitted to retain pursuant to the terms of
paragraph (a)(iii) of this Section 3.06 and that remain in such account.

(d) Any notice given by the Administrative Agent to the US Borrower suspending the rights of
the Grantors under paragraph (a) of this Section 3.06 (i) may be given by telephone if promptly
confirmed in writing, (ii) may be given with respect to one or more of the Grantors at the same or
different times and (iii) may suspend the rights of the Grantors under paragraph (a)(i) or
paragraph (a)(iii) in part without suspending all such rights (as specified by the Administrative
Agent in its sole and absolute discretion) and without waiving or otherwise affecting the
Administrative Agent’s rights to give additional notices from time to time suspending other rights
so long as an Event of Default has occurred and is continuing.

ARTICLE IV

Security Interests in Personal Property

SECTION 4.01. Security Interest. (a) As security for the payment in full of the Obligations,
each Grantor hereby assigns and pledges to the Administrative Agent, its successors and assigns,
for the benefit of the other Secured Parties, and hereby grants to the Administrative Agent, its
successors and assigns, for the benefit of the other Secured Parties, a security interest (the
“Security Interest”) in, all right, title or interest in or to any and all of the following
assets and properties now owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Article 9 Collateral”):

(i) all Accounts;

	 	 	 
	(ii)all Chattel Paper;

(iii)

(iv)

	 	

all Deposit Accounts;

all Documents;

(v) all Equipment;

	 	 	 
	(vi)

(vii)

(viii)

(ix)

	 	all General Intangibles;

all Instruments;

all Inventory;

all Investment Property;

(x) letter of credit rights;

(xi) commercial tort claims listed on Schedule V;

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

(xiii) to the extent not otherwise included, all Proceeds and products of any and all
of the foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing,

provided that notwithstanding anything to the contrary in this Agreement, this Agreement
shall not constitute a grant of a security interest in (A) any Excluded Assets, (B) more than 66.5%
of the issued and outstanding voting Equity Interests of any Foreign Subsidiary to the extent that
the pledge of any greater percentage would result in adverse tax consequences or (C) any asset if,
to the extent and for so long as the Administrative Agent, in consultation with the US Borrower,
reasonably determines that the cost to the Borrower of creating or perfecting a pledge or security
interest in such asset (taking into account (i) any adverse tax consequences to Parent, the
Borrowers and the other Subsidiaries (including the imposition of withholding or other material
taxes on Lenders) and (ii) with respect to security interests in Equity Interests in Persons that
are not, directly or indirectly, wholly owned by Parent, any restrictions on the creation or
perfection of such security interests (including the costs of obtaining necessary consents and
approvals from other holders of Equity Interest in such Persons) shall be commercially unreasonable
in view of the benefits to be obtained by the Lenders therefrom.

(b) Each Grantor hereby irrevocably authorizes the Administrative Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing statements (including
fixture filings) with respect to the Article 9 Collateral or any part thereof and amendments
thereto that (i) indicate the Collateral as all assets of such Grantor or words of similar effect
as being of an equal or lesser scope or with greater detail and (ii) contain the information
required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing
of any financing statement or amendment, including (a) whether such Grantor is an organization, the
type of organization and any organizational identification number issued to such Grantor and (b) in
the case of a financing statement filed as a fixture filing, a sufficient description of the real
property to which such Article 9 Collateral relates. Each Grantor agrees to provide such
information to the Administrative Agent promptly upon request.

Each Grantor also ratifies its authorization for the Administrative Agent to file in any
relevant jurisdiction any initial financing statements or amendments thereto if filed prior to the
date hereof.

The Administrative Agent is further authorized to file with the United States Patent and
Trademark Office or United States Copyright Office (or any successor office or any similar office
in any other country) such documents as may be necessary or advisable for the purpose of
perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each
Grantor, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Administrative Agent as secured party.

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

(d) Notwithstanding anything herein to the contrary, in no event shall the security interest
granted hereunder attach to any contract, agreement or instrument to which a Grantor is a party or
any of its rights or interests thereunder if and for so long as the grant of such security interest
shall constitute or result in (i) the unenforceability of any right of the Grantor therein or
(ii) in a breach or termination pursuant to the terms of, or a default under, any such contract,
agreement or instrument (other than to the extent that any such term would be rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the New York UCC or any other applicable law
or principles of equity), provided, however, that such security interest shall attach
immediately at such time as the condition causing such unenforceability shall be remedied and, to
the extent severable, shall attach immediately to any portion of such contract or agreement that
does not result in any of the consequences specified in clause (i) or (ii) above including any
proceeds of such contract or agreement.

SECTION 4.02. Representations and Warranties. Each Grantor represents and warrants to the
Administrative Agent and the other Secured Parties that with respect to such Grantor:

(a) Such Grantor has good and valid rights in and title to such Grantor’s Article 9 Collateral
with respect to which it has purported to grant a Security Interest hereunder and has full
corporate or equivalent power and authority to grant to the Administrative Agent, for the benefit
of the other Secured Parties, the Security Interest in such Article 9 Collateral pursuant hereto
and to execute, deliver and perform its obligations in accordance with the terms of this Agreement,
without the consent or approval of any other Person other than any consent or approval that has
been obtained and in full force and effect.

(b) Each Perfection Certificate has been duly prepared, completed and executed and the
information set forth therein, including the exact legal name of such Grantor, is correct and
complete, in all material respects, as of the Effective Date, except as specified in schedules
attached to Supplements hereto, a certificate delivered prior to the date hereof pursuant to
Section 5.01(c) or 5.03(b) of the Amended Original Credit Agreement or in the schedules attached
hereto, all of which have been duly prepared, completed and executed. The Uniform Commercial Code
financing statements (including fixture filings, as applicable) or other appropriate filings,
recordings or registrations prepared by the Administrative Agent based upon the information
provided to the Administrative Agent by such Grantor in the Perfection Certificate for filing in
each governmental, municipal or other office specified in Schedule 2 to the Perfection Certificate
(or specified by notice from the US Borrower to the Administrative Agent after the Effective Date
in the case of filings, recordings or registrations required by Section 5.03(a) or 5.12 of the
Credit Agreement), are all the filings, recordings and registrations (other than filings required
to be made in the United States Patent and Trademark Office and the United States Copyright Office
in order to perfect the Security Interest in all of such Grantor’s Article 9 Collateral consisting
of United States Patents, Trademarks and Copyrights) that are necessary to publish notice of and
protect the validity of and to establish a legal, valid and perfected security interest in favor of
the Administrative Agent, for the benefit of the other Secured Parties, in respect of all of such
Grantor’s Article 9 Collateral in which the Security Interest may be perfected by filing, recording
or registration in the United States (or any political subdivision thereof) and its territories and
possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under applicable law with
respect to the filing of continuation statements. Each Grantor represents and warrants that a
fully executed agreement in the form hereof and containing a description of all of such Grantor’s
Article 9 Collateral consisting of Intellectual Property with respect to United States Patents and
United States registered Trademarks (and Trademarks for which United States registration
applications are pending) and United States registered Copyrights have been delivered to the
Administrative Agent for recording by the United States Patent and Trademark Office and the United
States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the
regulations thereunder, as applicable, and otherwise as may be required pursuant to the laws of any
other necessary jurisdiction, to protect the validity of and to establish a legal, valid and
perfected security interest in favor of the Administrative Agent, for the benefit of the other
Secured Parties, in respect of all of such Grantor’s Article 9 Collateral consisting of Patents,
Trademarks and Copyrights in which a security interest may be perfected by filing, recording or
registration in the United States (or any political subdivision thereof) and its territories and
possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary (other than such actions as are necessary to perfect the Security
Interest with respect to any of such Grantor’s Article 9 Collateral consisting of Patents,
Trademarks and Copyrights (or registration or application for registration thereof) acquired or
developed after the Effective Date)).

(c) The Security Interest constitutes (i) a legal and valid security interest in all of such
Grantor’s Article 9 Collateral securing the payment of the Obligations, (ii) subject to the filings
described in Section 4.02(b), a perfected security interest in all of such Grantor’s Article 9
Collateral in which a security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States (or any political subdivision
thereof) and its territories and possessions pursuant to the Uniform Commercial Code or other
applicable law in such jurisdictions and (iii) a security interest that shall be perfected in all
of such Grantor’s Article 9 Collateral in which a security interest may be perfected upon the
receipt and recording of this Agreement with the United States Patent and Trademark Office and the
United States Copyright Office, as applicable, within the three-month period (commencing as of the
date hereof) pursuant to 35 U.S.C. § 261 or 15 U.S.C. § 1060 or the one month period (commencing as
of the date hereof) pursuant to 17 U.S.C. § 205 and otherwise as may be required pursuant to the
laws of any other necessary jurisdiction. The Security Interest is and shall be prior to any other
Lien on any of such Grantor’s Article 9 Collateral, other than Permitted Encumbrances that have
priority as a matter of law and Liens expressly permitted to be prior to the Security Interest
pursuant to Section 6.02(a) of the Credit Agreement.

(d) All of such Grantor’s Article 9 Collateral is owned by such Grantor free and clear of any
Lien, except for Liens expressly permitted pursuant to Section 6.02(a) of the Credit Agreement.
Such Grantor has not filed or consented to the filing of (i) any financing statement or analogous
document under the Uniform Commercial Code or any other applicable laws covering any of such
Grantor’s Article 9 Collateral, (ii) any assignment in which any such Grantor assigns any
Collateral or any security agreement or similar instrument covering any of such Grantor’s Article 9
Collateral with the United States Patent and Trademark Office or the United States Copyright Office
or (iii) any assignment in which any such Grantor assigns any of such Grantor’s Article 9
Collateral or any security agreement or similar instrument covering any of such Grantor’s Article 9
Collateral with any foreign governmental, municipal or other office, which financing statement or
analogous document, assignment, security agreement or similar instrument is still in effect,
except, in each case, for Liens expressly permitted pursuant to Section 6.02(a) of the Credit
Agreement.

SECTION 4.03. Covenants. (a) Each Grantor agrees promptly to notify the Administrative
Agent in writing of any change (i) in its corporate name or in any trade name used to identify it
in the conduct of its business or in the ownership of its properties, (ii) in the location of its
chief executive office, its principal place of business, any office in which it maintains books or
records relating to Article 9 Collateral owned by it or any office or facility at which Article 9
Collateral owned by it is located (including the establishment of any such new office or facility),
(iii) in its identity or type of organization or corporate structure, (iv) to the extent
applicable, in its Federal Taxpayer Identification Number or organizational identification number
or (v) in its jurisdiction of organization. Each Grantor agrees to promptly provide the
Administrative Agent with certified organizational documents reflecting any of the changes
described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Administrative Agent to continue at
all times following such change to have a valid, legal and perfected first priority security
interest in all of such Grantor’s Article 9 Collateral. Each Grantor agrees promptly to notify the
Administrative Agent if any material portion of the Article 9 Collateral owned or held by such
Grantor is damaged or destroyed.

(b) Each Grantor agrees to maintain, at its own cost and expense, such complete and accurate
records with respect to the Article 9 Collateral owned by it as is consistent with its current
practices and in accordance with such prudent and standard practices used in industries that are
the same as or similar to those in which such Grantor is engaged, but in any event to include
complete accounting records indicating all payments and proceeds received with respect to any part
of the Article 9 Collateral owned by it, and, at such time or times as the Administrative Agent may
reasonably request, promptly to prepare and deliver to the Administrative Agent a duly certified
schedule or schedules in form and detail satisfactory to the Administrative Agent showing the
identity, amount and location of any and all Article 9 Collateral owned by it.

(c) Each year, at the time of delivery of annual financial statements with respect to the
preceding fiscal year pursuant to Section 5.01(a) of the Credit Agreement, Parent shall deliver to
the Administrative Agent a certificate executed by a Financial Officer and the general counsel of
Parent (i) setting forth the information required pursuant to Section 2 of the Perfection
Certificate or confirming that there has been no change in such information since the date of the
Perfection Certificate delivered on the Effective Date or the date of the most recent certificate
delivered pursuant to this Section 4.03(c) and (ii) certifying that, to the best knowledge of such
Financial Officer and general counsel, all Uniform Commercial Code financing statements (including
fixture filings, as applicable) or other appropriate filings, recordings or registrations,
including all refilings, rerecordings and reregistrations, containing a description of the
Article 9 Collateral have been filed of record in each governmental, municipal or other appropriate
office in each jurisdiction identified pursuant to clause (a) of this Section 4.03 to the extent
necessary to protect and perfect the Security Interest for a period of not less than 18 months
after the date of such certificate (except as noted therein with respect to any continuation
statements to be filed within such period). Each certificate delivered pursuant to this
Section 4.03(c) shall identify in the format of Schedule III all Intellectual Property of any
Grantor in existence on the date thereof and not then listed on such Schedules or previously so
identified to the Administrative Agent.

(d) Each Grantor shall, at its own expense, take any and all actions necessary to defend title
to the Article 9 Collateral owned by it against all Persons and to defend the Security Interest of
the Administrative Agent in the Article 9 Collateral owned by it and the priority thereof against
any Lien not expressly permitted pursuant to Section 6.02 of the Credit Agreement.

(e) Each Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause to be
duly filed all such further instruments and documents and take all such actions as the
Administrative Agent may from time to time reasonably request to better assure, preserve, protect
and perfect the Security Interest and the rights and remedies created hereby, including the payment
of any fees and taxes required in connection with the execution and delivery of this Agreement, the
granting of the Security Interest and the filing of any financing statements (including fixture
filings) or other documents in connection herewith or therewith. If any amount payable under or in
connection with any of the Article 9 Collateral owned by it shall be or become evidenced by any
promissory note or other instrument, such note or instrument shall be immediately pledged and
delivered to the Administrative Agent, duly endorsed in a manner satisfactory to the Administrative
Agent.

Without limiting the generality of the foregoing, each Grantor hereby authorizes the
Administrative Agent, with prompt notice thereof to the Grantors, to supplement this Agreement by
supplementing Schedule III or adding additional schedules hereto to specifically identify any asset
or item that may constitute Copyrights, Licenses, Patents or Trademarks, provided that any
Grantor shall have the right, exercisable within 10 days after it has been notified by the
Administrative Agent of the specific identification of such Collateral, to advise the
Administrative Agent in writing of any inaccuracy of the representations and warranties made by
such Grantor hereunder with respect to such Collateral. Each Grantor agrees that it will use its
commercially reasonable efforts to take such action as shall be necessary in order that all
representations and warranties hereunder shall be true and correct in all material respects with
respect to such Collateral within 30 days after the date it has been notified by the Administrative
Agent of the specific identification of such Collateral.

(f) The Administrative Agent and such Persons as the Administrative Agent may reasonably
designate shall have the right, at the Grantors’ own cost and expense, to inspect the Article 9
Collateral, all records related thereto (and to make extracts and copies from such records) and the
premises upon which any of the Article 9 Collateral is located, to discuss the Grantors’ affairs
with the officers of the Grantors and their independent accountants and to verify under reasonable
procedures, the validity, amount, quality, quantity, value, condition and status of, or any other
matter relating to, the Article 9 Collateral, including, in the case of Accounts or Article 9
Collateral in the possession of any third person, by contacting Account Debtors or the third person
possessing such Article 9 Collateral for the purpose of making such a verification. The
Administrative Agent shall have the absolute right to share any information it gains from such
inspection or verification with any Secured Party.

(g) At its option, the Administrative Agent may discharge past due taxes, assessments,
charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the
Article 9 Collateral and not permitted pursuant to Section 6.02 of the Credit Agreement, and may
pay for the maintenance and preservation of the Article 9 Collateral to the extent any Grantor
fails to do so as required by the Credit Agreement or this Agreement, and each Grantor jointly and
severally agrees to reimburse the Administrative Agent on demand for any payment made or any
reasonable expense incurred by the Administrative Agent pursuant to the foregoing authorization,
provided that nothing in this paragraph shall be interpreted as excusing any Grantor from
the performance of, or imposing any obligation on the Administrative Agent or any other Secured
Party to cure or perform, any covenants or other promises of any Grantor with respect to taxes,
assessments, charges, fees, Liens, security interests or other encumbrances or maintenance as set
forth herein or in the other Loan Documents.

(h) If at any time any Grantor shall take a security interest in any property of an Account
Debtor or any other Person to secure payment and performance of an Account, such Grantor shall
promptly assign such security interest to the Administrative Agent for the benefit of the other
Secured Parties. Such assignment need not be filed of public record unless necessary to continue
the perfected status of the security interest against creditors of and transferees from the Account
Debtor or other Person granting the security interest.

(i) Each Grantor (rather than the Administrative Agent or any Secured Party) shall remain
liable to observe and perform all the conditions and obligations to be observed and performed by it
under each contract, agreement or instrument relating to the Article 9 Collateral, all in
accordance with the terms and conditions thereof, and each Grantor jointly and severally agrees to
indemnify and hold harmless the Administrative Agent and the other Secured Parties from and against
any and all liability for such performance.

(j) None of the Grantors shall make or permit to be made an assignment, pledge or
hypothecation of the Article 9 Collateral or shall grant any other Lien in respect of the Article 9
Collateral, except as permitted by the Credit Agreement. None of the Grantors shall make or permit
to be made any transfer of the Article 9 Collateral and each Grantor shall remain at all times in
possession of the Article 9 Collateral owned by it, except that unless and until the Administrative
Agent shall notify the Grantors that an Event of Default shall have occurred and be continuing and
that during the continuance thereof the Grantors shall not sell, convey, lease, assign, transfer or
otherwise dispose of any Article 9 Collateral (which notice may be given by telephone if promptly
confirmed in writing), the Grantors may use and dispose of the Article 9 Collateral in any lawful
manner not inconsistent with the provisions of this Agreement, the Credit Agreement or any other
Loan Document. Without limiting the generality of the foregoing, each Grantor agrees that it shall
not permit any Inventory to be in the possession or control of any warehouseman, agent, bailee, or
processor at any time unless such warehouseman, bailee, agent or processor shall have been notified
of the Security Interest and shall have acknowledged in writing, in form and substance reasonably
satisfactory to the Administrative Agent, that such warehouseman, agent, bailee or processor holds
the Inventory for the benefit of the Administrative Agent subject to the Security Interest and
shall act upon the instructions of the Administrative Agent without further consent from the
Grantor, and that such warehouseman, agent, bailee or processor further agrees to waive and release
any Lien held by it with respect to such Inventory, whether arising by operation of law or
otherwise.

(k) None of the Grantors will, without the Administrative Agent’s prior written consent, grant
any extension of the time of payment of any Accounts included in the Article 9 Collateral,
compromise, compound or settle the same for less than the full amount thereof, release, wholly or
partly, any Person liable for the payment thereof or allow any credit or discount whatsoever
thereon, other than extensions, compromises, settlements, releases, credits or discounts granted or
made in the ordinary course of business and consistent with its current practices and in accordance
with such prudent and standard practice used in industries that are the same as or similar to those
in which such Grantor is engaged.

(l) The Grantors, at their own expense, shall maintain or cause to be maintained insurance
covering physical loss or damage to the Inventory and Equipment in accordance with the requirements
set forth in Schedule IV hereto and Section 5.07 of the Credit Agreement. Each Grantor irrevocably
makes, constitutes and appoints the Administrative Agent (and all officers, employees or agents
designated by the Administrative Agent) as such Grantor’s true and lawful agent (and
attorney-in-fact) for the purpose, during the continuance of an Event of Default, of making,
settling and adjusting claims in respect of Article 9 Collateral under policies of insurance,
endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the
proceeds of such policies of insurance and for making all determinations and decisions with respect
thereto. In the event that any Grantor at any time or times shall fail to obtain or maintain any
of the policies of insurance required hereby or to pay any premium in whole or part relating
thereto, the Administrative Agent may, without waiving or releasing any obligation or liability of
the Grantors hereunder or any Event of Default, in its sole discretion, obtain and maintain such
policies of insurance and pay such premium and take any other actions with respect thereto as the
Administrative Agent reasonably deems advisable. All reasonable out-of-pocket sums disbursed by
the Administrative Agent in connection with this paragraph, including reasonable attorneys’ fees,
court costs, reasonable out-of-pocket expenses and other reasonable charges relating thereto, shall
be payable, upon demand, by the Grantors to the Administrative Agent and shall be additional
Obligations secured hereby.

(m) Each Grantor shall maintain, in form and manner reasonably satisfactory to the
Administrative Agent, records of its Chattel Paper and its books, records and documents evidencing
or pertaining thereto.

SECTION 4.04. Other Actions. In order to further insure the attachment, perfection and
priority of, and the ability of the Administrative Agent to enforce, the Security Interest, each
Grantor agrees, in each case at such Grantor’s own expense, to take the following actions with
respect to the following Article 9 Collateral:

(a) Instruments. If any Grantor shall at any time hold or acquire any Instruments,
such Grantor shall forthwith endorse, assign and deliver the same to the Administrative
Agent, for the benefit of the other Secured Parties, accompanied by such instruments of
transfer or assignment duly endorsed in blank by such Grantor as the Administrative Agent
may from time to time reasonably request.

(b) Deposit Accounts. For each deposit account that any Grantor at any time opens or
maintains, such Grantor shall, either (i) cause the depositary bank to agree to comply with
instructions from the Administrative Agent to such depositary bank directing the
disposition of funds from time to time credited to such deposit account, without further
consent of such Grantor or any other Person, pursuant to an agreement satisfactory to the
Administrative Agent, or (ii) arrange for the Administrative Agent to become the customer
of the depositary bank with respect to the deposit account, with the Grantor being
permitted, only with the consent of the Administrative Agent, to exercise rights to
withdraw funds from such deposit account. The Administrative Agent agrees with each
Grantor that the Administrative Agent shall not give any such instructions or withhold any
withdrawal rights from any Grantor unless an Event of Default has occurred and is
continuing, or, after giving effect to any such withdrawal rights, would occur. The
provisions of this paragraph shall not apply to (A) any deposit account for which any
Grantor, the depositary bank and the Administrative Agent have entered into a cash
collateral agreement specially negotiated among such Grantor, the depositary bank and the
Administrative Agent for the specific purpose set forth therein and (B) deposit accounts
for which the Administrative Agent is the depositary.

(c) Investment Property. Except to the extent otherwise provided in Article III, if
any Grantor shall at any time hold or acquire any certificated securities, such Grantor
shall forthwith endorse, assign and deliver the same to the Administrative Agent, for the
benefit of the other Secured Parties, accompanied by such instruments of transfer or
assignment duly endorsed in blank by such Grantor as the Administrative Agent may from time
to time specify. If any securities now or hereafter acquired by any Grantor are
uncertificated and are issued to such Grantor or its nominee directly by the issuer
thereof, such Grantor shall immediately notify the Administrative Agent thereof and, at the
Administrative Agent’s request and option, pursuant to an agreement in form and substance
reasonably satisfactory to the Administrative Agent, either (i) cause the issuer to agree
to comply with instructions from the Administrative Agent as to such securities, without
further consent of any Grantor or such nominee, or (ii) arrange for the Administrative
Agent to become the registered owner of the securities. If any securities, whether
certificated or uncertificated, or other investment property now or hereafter acquired by
any Grantor are held by such Grantor or its nominee through a securities intermediary or
commodity intermediary, such Grantor shall immediately notify the Administrative Agent
thereof and, at the Administrative Agent’s request and option, pursuant to an agreement in
form and substance reasonably satisfactory to the Administrative Agent, either (i) cause
such securities intermediary or (as the case may be) commodity intermediary to agree to
comply with entitlement orders or other instructions from the Administrative Agent to such
securities intermediary as to such security entitlements, or (as the case may be) to apply
any value distributed on account of any commodity contract as directed by the
Administrative Agent to such commodity intermediary, in each case without further consent
of any Grantor or such nominee, or (ii) in the case of financial assets or other Investment
Property held through a securities intermediary, arrange for the Administrative Agent to
become the entitlement holder with respect to such investment property, with the Grantor
being permitted, only with the consent of the Administrative Agent, to exercise rights to
withdraw or otherwise deal with such investment property. The Administrative Agent agrees
with each Grantor that the Administrative Agent shall not give any such entitlement orders
or instructions or directions to any such issuer, securities intermediary or commodity
intermediary, and shall not withhold its consent to the exercise of any withdrawal or
dealing rights by any Grantor, unless an Event of Default has occurred and is continuing,
or, after giving effect to any such investment and withdrawal rights, would occur. The
provisions of this paragraph shall not apply to any financial assets credited to a
securities account for which the Administrative Agent is the securities intermediary.

(d) Electronic Chattel Paper and Transferable Records. If any Grantor at any time
holds or acquires an interest in any electronic chattel paper or any “transferable record,”
as that term is defined in Section 201 of the Federal Electronic Signatures in Global and
National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in
effect in any relevant jurisdiction, such Grantor shall promptly notify the Administrative
Agent thereof and, at the request of the Administrative Agent, shall take such action as
the Administrative Agent may reasonably request to vest in the Administrative Agent control
under New York UCC Section 9-105 of such electronic chattel paper or control under
Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as
the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in
such jurisdiction, of such transferable record. The Administrative Agent agrees with such
Grantor that the Administrative Agent will arrange, pursuant to procedures reasonably
satisfactory to the Administrative Agent and so long as such procedures will not result in
the Administrative Agent’s loss of control, for the Grantor to make alterations to the
electronic chattel paper or transferable record permitted under UCC Section 9-105 or, as
the case may be, Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in
control to allow without loss of control, unless an Event of Default has occurred and is
continuing or would occur after taking into account any action by such Grantor with respect
to such electronic chattel paper or transferable record.

(e) Letter of Credit Rights. If any Grantor is at any time a beneficiary under a
letter of credit now or hereafter issued in favor of such Grantor, such Grantor shall
promptly notify the Administrative Agent thereof and, at the request and option of the
Administrative Agent, such Grantor shall, pursuant to an agreement in form and substance
reasonably satisfactory to the Administrative Agent, either (i) arrange for the issuer and
any confirmer of such letter of credit to consent to an assignment to the Administrative
Agent of the proceeds of any drawing under the letter of credit or (ii) arrange for the
Administrative Agent to become the transferee beneficiary of the letter of credit, with the
Administrative Agent agreeing, in each case, that the proceeds of any drawing under the
letter of credit are to be paid to the applicable Grantor unless an Event of Default has
occurred or is continuing.

((f) Commercial Tort Claims. If any Grantor shall at any time hold or acquire a
commercial tort claim in an amount reasonably estimated to exceed $250,000, the Grantor
shall promptly notify the Administrative Agent thereof in a writing signed by such Grantor
including a summary description of such claim and grant to the Administrative 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
Administrative Agent.

SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each
Grantor agrees that it will not do any act or omit do to any act (and will exercise commercially
reasonable efforts to prevent its licensees from doing any act or omitting to do any act) whereby
any Patent that is material to the conduct of such Grantor’s business may become invalidated or
dedicated to the public, and agrees that it shall continue to mark any products covered by a Patent
with the relevant patent number as necessary and sufficient to establish and preserve its maximum
rights under applicable patent laws.

(b) Each Grantor (either itself or through its licensees or its sublicensees) will, for each
Trademark material to the conduct of such Grantor’s business, (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for non-use, (ii) maintain the quality of
products and services offered under such Trademark, (iii) display such Trademark with notice of
Federal or foreign registration to the extent necessary and sufficient to establish and preserve
its maximum rights under applicable law and (iv) not knowingly use or knowingly permit the use of
such Trademark in violation of any third party rights.

(c) Each Grantor (either itself or through its licensees or sublicensees) will, for each work
covered by a material Copyright, continue to publish, reproduce, display, adopt and distribute the
work with appropriate copyright notice as necessary and sufficient to establish and preserve its
maximum rights under applicable copyright laws.

(d) Each Grantor shall notify the Administrative Agent promptly if it knows or has reason to
know that any Patent, Trademark or Copyright material to the conduct of its business may become
abandoned, lost or dedicated to the public, or of any materially adverse determination or
development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, United States Copyright Office or any
court or similar office of any country) regarding such Grantor’s ownership of any Patent, Trademark
or Copyright, its right to register the same, or its right to keep and maintain the same.

(e) In no event shall any Grantor, either itself or through any agent, employee, licensee or
designee, file an application for any Patent, Trademark or Copyright (or for the registration of
any Trademark or Copyright) with the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof, unless it promptly informs the
Administrative Agent, and, upon request of the Administrative Agent, executes and delivers any and
all agreements, instruments, documents and papers as the Administrative Agent may reasonably
request to evidence the Administrative Agent’s security interest in such Patent, Trademark or
Copyright, and each Grantor hereby appoints the Administrative Agent as its attorney-in-fact to
execute and file such writings for the foregoing purposes, all acts of such attorney being hereby
ratified and confirmed; such power, being coupled with an interest, is irrevocable.

(f) Each Grantor will take all necessary steps that are consistent with the practice in any
proceeding before the United States Patent and Trademark Office, United States Copyright Office or
any office or agency in any political subdivision of the United States or in any other country or
any political subdivision thereof, to maintain and pursue each material application relating to the
Patents, Trademarks and/or Copyrights (and to obtain the relevant grant or registration) and to
maintain each issued Patent and each registration of the Trademarks and Copyrights that is material
to the conduct of any Grantor’s business, including timely filings of applications for renewal,
affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if
consistent with good business judgment, to initiate opposition, interference and cancellation
proceedings against third parties.

(g) In the event that any Grantor has reason to believe that any Article 9 Collateral
consisting of a Patent, Trademark or Copyright material to the conduct of any Grantor’s business
has been or is about to be infringed, misappropriated or diluted by a third party, such Grantor
promptly shall notify the Administrative Agent and shall, if consistent with good business
judgment, promptly sue for infringement, misappropriation or dilution and to recover any and all
damages for such infringement, misappropriation or dilution, and take such other actions as are
appropriate under the circumstances to protect such Article 9 Collateral.

(h) Upon and during the continuance of an Event of Default, each Grantor shall use its
commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of
each Copyright License, Patent License or Trademark License to effect the assignment of all such
Grantor’s right, title and interest thereunder to the Administrative Agent or its designee.

ARTICLE V

Remedies

SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an
Event of Default, each Grantor agrees to deliver each item of Collateral to the Administrative
Agent on demand, and it is agreed that the Administrative Agent shall have the right to take any of
or all the following actions at the same or different times: (a) with respect to any Article 9
Collateral consisting of Intellectual Property, on demand, to cause the Security Interest to become
an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable
Grantors to the Administrative Agent, or to license or sublicense, whether general, special or
otherwise, and whether on an exclusive or nonexclusive basis, any such Article 9 Collateral
throughout the world on such terms and conditions and in such manner as the Administrative Agent
shall determine (other than in violation of any then-existing licensing arrangements to the extent
that waivers cannot be obtained on commercially reasonable terms), and (b) with or without legal
process and with or without prior notice or demand for performance, to take possession of the
Article 9 Collateral and without liability for trespass to enter any premises where the Article 9
Collateral may be located for the purpose of taking possession of or removing the Article 9
Collateral and, generally, to exercise any and all rights afforded to a secured party under the
Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing,
each Grantor agrees that the Administrative Agent shall have the right, subject to the mandatory
requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral
at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon
credit or for future delivery as the Administrative Agent shall deem appropriate. The
Administrative Agent shall be authorized at any such sale of securities (if it deems it advisable
to do so) to restrict the prospective bidders or purchasers to Persons who will represent and agree
that they are purchasing the Collateral for their own account for investment and not with a view to
the distribution or sale thereof, and upon consummation of any such sale the Administrative Agent
shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any sale of Collateral shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by law) all rights of redemption, stay and appraisal which such Grantor
now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted.

The Administrative Agent shall give the applicable Grantors 10 days’ written notice (which
each Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or
its equivalent in other jurisdictions) of the Administrative Agent’s intention to make any sale of
Collateral. Such notice, in the case of a public sale, shall state the time and place for such
sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the
board or exchange at which such sale is to be made and the day on which the Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such public sale shall be
held at such time or times within ordinary business hours and at such place or places as the
Administrative Agent may fix and state in the notice (if any) of such sale. At any such sale, the
Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate
parcels, as the Administrative Agent may (in its sole and absolute discretion) determine. The
Administrative Agent shall not be obligated to make any sale of any Collateral if it shall
determine not to do so, regardless of the fact that notice of sale of such Collateral shall have
been given. The Administrative Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the time and place to
which the same was so adjourned. In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the Administrative Agent
until the sale price is paid by the purchaser or purchasers thereof, but the Administrative Agent
shall not incur any liability in case any such purchaser or purchasers shall fail to take up and
pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again
upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant
to this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by law)
from any right of redemption, stay, valuation or appraisal on the part of any Grantor (all said
rights being also hereby waived and released to the extent permitted by law), the Collateral or any
part thereof offered for sale and may make payment on account thereof by using any claim then due
and payable to such Secured Party from any Grantor as a credit against the purchase price, and such
Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such
property without further accountability to any Grantor therefor. For purposes hereof, a written
agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the
Administrative Agent shall be free to carry out such sale pursuant to such agreement and no Grantor
shall be entitled to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Administrative Agent shall have entered into such an
agreement all Events of Default shall have been remedied and the Obligations paid in full. As an
alternative to exercising the power of sale herein conferred upon it, the Administrative Agent may
proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale
pursuant to the provisions of this Section 5.01 shall be deemed to conform to the commercially
reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

SECTION 5.02. Application of Proceeds. The Administrative Agent shall apply the proceeds of
any collection or sale of Collateral, including any Collateral consisting of cash, as follows:

FIRST, to the payment of all reasonable out-of-pocket costs and expenses incurred by
the Administrative Agent in connection with such collection or sale or otherwise in
connection with this Agreement, any other Loan Document or any of the Obligations,
including all court costs and the reasonable fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Administrative Agent hereunder or under
any other Loan Document on behalf of any Grantor and any other reasonable out-of-pocket
costs or expenses incurred in connection with the exercise of any right or remedy hereunder
or under any other Loan Document;

SECOND, to the payment in full of the Obligations (the amounts so applied to be
distributed among the Secured Parties pro rata in accordance with the amounts of the
Obligations owed to them on the date of any such distribution); and

THIRD, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

The Administrative Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the
Administrative Agent (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Administrative Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Administrative Agent or such officer or be answerable in any way for the misapplication
thereof.

SECTION 5.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Administrative Agent to exercise rights and remedies under this Agreement at such time as the
Administrative Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor
hereby grants to the Administrative Agent an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to the Grantors) to use, license or sublicense any of the
Article 9 Collateral consisting of Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license reasonable access to
all media in which any of the licensed items may be recorded or stored and to all computer software
and programs used for the compilation or printout thereof. The use of such license by the
Administrative Agent may be exercised, at the option of the Administrative Agent, upon the
occurrence and during the continuation of an Event of Default, provided that any license,
sublicense or other transaction entered into by the Administrative Agent in accordance herewith
shall be binding upon the Grantors notwithstanding any subsequent cure of an Event of Default.

SECTION 5.04. Securities Act. In view of the position of the Grantors in relation to the
Pledged Collateral, or because of other current or future circumstances, a question may arise under
the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted
analogous in purpose or effect (such Act and any such similar statute as from time to time in
effect being called the “Federal Securities Laws”) with respect to any disposition of the
Pledged Collateral permitted hereunder. Each Grantor understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of the Administrative Agent if the
Administrative Agent were to attempt to dispose of all or any part of the Pledged Collateral, and
might also limit the extent to which or the manner in which any subsequent transferee of any
Pledged Collateral could dispose of the same. Similarly, there may be other legal restrictions or
limitations affecting the Administrative Agent in any attempt to dispose of all or part of the
Pledged Collateral under applicable Blue Sky or other state securities laws or similar laws
analogous in purpose or effect. Each Grantor recognizes that in light of such restrictions and
limitations the Administrative Agent may, with respect to any sale of the Pledged Collateral, limit
the purchasers to those who will agree, among other things, to acquire such Pledged Collateral for
their own account, for investment, and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that in light of such restrictions and limitations, the
Administrative Agent, in its sole and absolute discretion (a) may proceed to make such a sale
whether or not a registration statement for the purpose of registering such Pledged Collateral or
part thereof shall have been filed under the Federal Securities Laws and (b) may approach and
negotiate with a single potential purchaser to effect such sale. Each Grantor acknowledges and
agrees that any such sale might result in prices and other terms less favorable to the seller than
if such sale were a public sale without such restrictions. In the event of any such sale, the
Administrative Agent shall incur no responsibility or liability for selling all or any part of the
Pledged Collateral at a price that the Administrative Agent, in its sole and absolute discretion,
may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a
substantially higher price might have been realized if the sale were deferred until after
registration as aforesaid or if more than a single purchaser were approached. The provisions of
this Section 5.04 will apply notwithstanding the existence of a public or private market upon which
the quotations or sales prices may exceed substantially the price at which the Administrative Agent
sells.

SECTION 5.05. Registration. Each Grantor agrees that, upon the occurrence and during the
continuance of an Event of Default, if for any reason the Administrative Agent desires to sell any
of the Pledged Collateral at a public sale, such Grantor will, at any time and from time to time,
upon the written request of the Administrative Agent, use its commercially reasonable efforts to
take or to cause the issuer of such Pledged Collateral to take such action and prepare, distribute
and/or file such documents, as are required or advisable in the reasonable opinion of counsel for
the Administrative Agent to permit the public sale of such Pledged Collateral. Each Grantor
further agrees to indemnify, defend and hold harmless the Administrative Agent, each other Secured
Party, any underwriter and their respective officers, directors, affiliates and controlling persons
from and against all loss, liability, reasonable out-of-pocket expenses, reasonable costs of
counsel (including reasonable fees and expenses to the Administrative Agent of legal counsel), and
claims (including the reasonable costs of investigation) that they may incur insofar as such loss,
liability, expense or claim arises out of or is based upon any alleged untrue statement of a
material fact contained in any prospectus (or any amendment or supplement thereto) or in any
notification or offering circular, or arises out of or is based upon any alleged omission to state
a material fact required to be stated therein or necessary to make the statements in any thereof
not misleading, except insofar as the same may have been caused by any untrue statement or omission
based upon information furnished in writing to such Grantor or the issuer of such Pledged
Collateral by the Administrative Agent or any other Secured Party expressly for use therein. Each
Grantor further agrees, upon such written request referred to above, to use its commercially
reasonable efforts to qualify, file or register, or cause the issuer of such Pledged Collateral to
qualify, file or register, any of the Pledged Collateral under the Blue Sky or other securities
laws of such states as may be requested by the Administrative Agent and keep effective, or cause to
be kept effective, all such qualifications, filings or registrations. Each Grantor will bear all
costs and expenses of carrying out its obligations under this Section 5.05. Each Grantor
acknowledges that there is no adequate remedy at law for failure by it to comply with the
provisions of this Section 5.05 and that such failure would not be adequately compensable in
damages, and therefore agrees that its agreements contained in this Section 5.05 may be
specifically enforced.

ARTICLE VI

Indemnity, Subrogation and Subordination

SECTION 6.01. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Guarantors may have under applicable law (but subject to Section 6.03), each
Borrower agrees that (a) in the event a payment of an obligation shall be made by any Guarantor
under this Agreement, such Borrower shall indemnify such Guarantor for the full amount of such
payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment
shall have been made to the extent of such payment and (b) in the event any assets of any Grantor
shall be sold pursuant to this Agreement or any other Security Document to satisfy in whole or in
part an obligation owed to any Secured Party, the applicable Borrower shall indemnify such Grantor
in an amount equal to the greater of the book value or the fair market value of the assets so sold.

SECTION 6.02. Contribution and Subrogation. Each US Borrower Subsidiary Party (a
“Contributing Party”) agrees (subject to Section 6.03) that, in the event a payment shall
be made by any other US Borrower Subsidiary Party hereunder in respect of any Obligation or assets
of any other US Borrower Subsidiary Party shall be sold pursuant to any Security Document to
satisfy any Obligation owed to any Secured Party and such other US Borrower Subsidiary Party (the
“Claiming Party”) shall not have been fully indemnified by the applicable Borrower as
provided in Section 6.01, the Contributing Party shall indemnify the Claiming Party in an amount
equal to the amount of such payment or the greater of the book value or the fair market value of
such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall
be the net worth of the Contributing Party on the date hereof and the denominator shall be the
aggregate net worth of all the US Borrower Subsidiary Parties on the date hereof (or, in the case
of any US Borrower Subsidiary Party becoming a party hereto pursuant to Section 7.14, the date of
the Guarantee and Collateral Agreement Supplement hereto executed and delivered by such US Borrower
Subsidiary Party). Any Contributing Party making any payment to a Claiming Party pursuant to this
Section 6.02 shall be subrogated to the rights of such Claiming Party under Section 6.01 to the
extent of such payment.

SECTION 6.03. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors and Grantors under Sections 6.01 and 6.02 and all other
rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the
part of any Borrower or any Guarantor or Grantor to make the payments required by Sections 6.01 and
6.02 (or any other payments required under applicable law or otherwise) shall in any respect limit
the obligations and liabilities of any Guarantor or Grantor with respect to its obligations
hereunder, and each Guarantor or Grantor shall remain liable for the full amount of the obligations
of such Guarantor or Grantor hereunder.

(b) Each Guarantor and Grantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to any other Subsidiary shall be fully subordinated to the indefeasible
payment in full in cash of the Obligations.

ARTICLE VII

Miscellaneous

SECTION 7.01. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit
Agreement. All communications and notices hereunder to any Subsidiary Loan Party shall be given to
it in care of the US Borrower as provided in Section 9.01 of the Credit Agreement.

SECTION 7.02. Waivers; Amendment. (a) No failure or delay by the Administrative Agent, any
Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder and
under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by any Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section 7.02, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as
a waiver of any Default, regardless of whether the Administrative Agent, any Issuing Bank or any
Lender may have had notice or knowledge of such Default at the time. No notice to or demand on any
Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in
similar or other circumstances.

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the
Loan Party or Loan Parties with respect to which such waiver, amendment or modification is to
apply, subject to any consent required in accordance with Section 9.02 of the Credit Agreement.

SECTION 7.03. Administrative Agent’s Fees and Expenses; Indemnification. (a) The parties
hereto agree that the Administrative Agent shall be entitled to reimbursement of its reasonable
out-of-pocket expenses incurred hereunder as provided in Section 9.03 of the Credit Agreement.

(b) Without limitation of its indemnification obligations under the other Loan Documents, each
Grantor and each Guarantor agrees to indemnify the Administrative Agent and the other Indemnitees
(as defined in Section 9.03(b) of the Credit Agreement) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related reasonable out-of-pocket
expenses, including the reasonable fees, charges and disbursements of any counsel for any
Indemnitee, reasonably incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of (i) the arrangement and the syndication of the credit facilities provided
for herein, the preparation, execution, delivery and administration of the Loan Documents or any
other agreement or instrument contemplated hereby, the performance by the parties to the Loan
Documents of their respective obligations thereunder or the consummation of the Transactions or any
other transactions contemplated hereby, (ii) any Loan, B/A or Letter of Credit or the use of the
proceeds therefrom (including any refusal by an Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property currently or formerly owned or operated by Parent, the
Borrowers or any of the other Subsidiaries, or any Environmental Liability related in any way to
Parent, the Borrowers or any of the other Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto and
regardless of whether such matter is initiated by a third party or by Parent or any Affiliate
thereof, provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related reasonable out-of-pocket expenses
are determined by a court of competent jurisdiction by final and non-appealed judgment to have
resulted from the gross negligence or wilful misconduct of such Indemnitee or such Indemnitee’s
violation of any applicable law or breach of its obligations under the Loan Documents.

(c) Any such amounts payable as provided hereunder shall be additional Obligations secured
hereby and by the other Security Documents. The provisions of this Section 7.03 shall remain
operative and in full force and effect regardless of the termination of this Agreement or any other
Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of
the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or
any other Loan Document, or any investigation made by or on behalf of the Administrative Agent or
any other Secured Party. All amounts due under this Section 7.03 shall be payable on written
demand therefor.

SECTION 7.04. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of such
party; and all covenants, promises and agreements by or on behalf of any Guarantor, Grantor or the
Administrative Agent that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

SECTION 7.05. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Agreement or any other
Loan Document shall be considered to have been relied upon by the Lenders and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any Lender or on its behalf and
notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice
or knowledge of any Default or incorrect representation or warranty at the time any credit is
extended under the Credit Agreement, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under any
Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated.

SECTION 7.06. Counterparts; Effectiveness; Several Agreement. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement. This Agreement shall
become effective as to any Loan Party when a counterpart hereof executed on behalf of such Loan
Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have
been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Loan
Party and the Administrative Agent and their respective permitted successors and assigns, and shall
inure to the benefit of such Loan Party, the Administrative Agent and the other Secured Parties and
their respective successors and assigns, except that no Loan Party shall have the right to assign
or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and
any such assignment or transfer shall be void) except as expressly contemplated by this Agreement
or the Credit Agreement. This Agreement shall be construed as a separate agreement with respect to
each Loan Party and may be amended, modified, supplemented, waived or released with respect to any
Loan Party without the approval of any other Loan Party and without affecting the obligations of
any other Loan Party hereunder.

SECTION 7.07. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The
parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

SECTION 7.08. Right of Set-Off. If an Event of Default shall have occurred and be continuing,
each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by
such Lender or Affiliate to or for the credit or the account of any Subsidiary Loan Party against
any of and all the obligations of such Subsidiary Loan Party now or hereafter existing under this
Agreement owed to such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section 7.08 are in addition to other rights and remedies (including other rights
of set-off) which such Lender may have.

SECTION 7.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement
shall be construed in accordance with and governed by the law of the State of New York.

(b) Each of Parent, the US Borrower and the Subsidiary Loan Parties hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or any other Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final, non-appealed judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect
any right that Parent, the US Borrower, the Subsidiary Loan Parties, any Agent, any Issuing Bank or
any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any
other Loan Document against any other party hereto or their properties in the courts of any
jurisdiction.

(c) Each of Parent, the US Borrower and the Subsidiary Loan Parties hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan Document in any court referred to in
paragraph (b) of this Section 7.09. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

(d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 7.01. Nothing in this Agreement or any other Loan Document will
affect the right of any party to this Agreement to serve process in any other manner permitted by
law.

SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 7.10.

SECTION 7.11. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

SECTION 7.12. Security Interest Absolute. All rights of the Administrative Agent hereunder,
the Security Interest, the grant of a security interest in the Pledged Collateral and all
obligations of each Grantor and Guarantor hereunder shall be absolute and unconditional
irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan
Document, any agreement with respect to any of the Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in
any other term of, all or any of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Credit Agreement, any other Loan Document or any other agreement
or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any
release or amendment or waiver of or consent under or departure from any guarantee, securing or
guaranteeing all or any of the Obligations, or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Grantor or Guarantor in respect of the
Obligations or this Agreement.

SECTION 7.13. Termination or Release. (a) This Agreement, the Guarantees made herein, the
Security Interest and all other security interests granted hereby shall terminate when all the
outstanding Loan Document Obligations have been indefeasibly paid in full and the Lenders have no
further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to zero and
the Issuing Banks have no further obligations to issue Letters of Credit under the Credit
Agreement.

(b) A Subsidiary Loan Party shall automatically be released from its obligations hereunder and
the Security Interest in the Collateral of such Subsidiary Loan Party shall be automatically
released and all provisions of the Loan Documents shall cease to apply to such Subsidiary Loan
Party upon (i) the consummation of any transaction permitted by the Credit Agreement as a result of
which such Subsidiary Loan Party ceases to be a Subsidiary, (ii) the designation of a Material
Subsidiary as an Excluded Subsidiary permitted by the Credit Agreement as a result of which such
Subsidiary Loan Party ceases to be a Material Subsidiary and (iii) a Material Subsidiary’s (under
and as defined in the Amended Original Credit Agreement) designation as an Excluded Subsidiary
under the Credit Agreement effective as of the Effective Date, provided that if so required
by the Credit Agreement, the Required Lenders shall have consented to such transaction or
designation and the terms of such consent did not provide otherwise.

(c) Upon any sale or other transfer by any Grantor (other than to Parent or any Subsidiary) of
any Collateral that is permitted under any Loan Document, or upon the effectiveness of any written
consent to the release of the security interest granted hereby in any Collateral pursuant to
Section 9.02 of the Credit Agreement, the security interest in such Collateral shall be
automatically released.

(d) In connection with any termination or release pursuant to clause (a), (b) or (c) of this
Section 7.13, the Administrative Agent shall execute and deliver to any Grantor, at such Grantor’s
expense, all documents that such Grantor shall reasonably request to evidence such termination or
release. Any execution and delivery of documents pursuant to this Section 7.13 shall be without
recourse to or warranty by the Administrative Agent.

SECTION 7.14. Additional Subsidiaries. Upon execution and delivery by the Administrative
Agent and a Subsidiary of a Guarantee and Collateral Agreement Supplement, such Subsidiary shall
become a Subsidiary Loan Party hereunder with the same force and effect as if originally named as a
Subsidiary Loan Party herein. The execution and delivery of any such instrument shall not require
the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party
hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party
as a party to this Agreement.

SECTION 7.15. Administrative Agent Appointed Attorney-in-Fact. Each Grantor hereby appoints
the Administrative Agent the attorney-in-fact of such Grantor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument that the
Administrative Agent may deem necessary or advisable to accomplish the purposes hereof, which
appointment is irrevocable and coupled with an interest. Without limiting the generality of the
foregoing, the Administrative Agent shall have the right, upon the occurrence and during the
continuance of an Event of Default, with full power of substitution either in the Administrative
Agent’s name or in the name of such Grantor (a) to receive, endorse, assign and/or deliver any and
all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the
Collateral or any part thereof; (b) to demand, collect, receive payment of, give receipt for and
give discharges and releases of all or any of the Collateral; (c) to sign the name of any Grantor
on any invoice or bill of lading relating to any of the Collateral; (d) to send verifications of
Accounts Receivable to any Account Debtor; (e) to commence and prosecute any and all suits, actions
or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise
realize on all or any of the Collateral or to enforce any rights in respect of any Collateral;
(f) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to
all or any of the Collateral; (g) to notify, or to require any Grantor to notify, Account Debtors
to make payment directly to the Administrative Agent; and (h) to use, sell, assign, transfer,
pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and
to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and
completely as though the Administrative Agent were the absolute owner of the Collateral for all
purposes, provided that nothing herein contained shall be construed as requiring or
obligating the Administrative Agent to make any commitment or to make any inquiry as to the nature
or sufficiency of any payment received by the Administrative Agent, or to present or file any claim
or notice, or to take any action with respect to the Collateral or any part thereof or the moneys
due or to become due in respect thereof or any property covered thereby. The Administrative Agent
and the other Secured Parties shall be accountable only for amounts actually received as a result
of the exercise of the powers granted to them herein, and neither they nor their officers,
directors, employees or agents shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or wilful misconduct (as determined by a court of
competent jurisdiction by final and non-appealed judgment).

SECTION 7.16. Effect of Restatement; Reaffirmation of Guarantee and Security Interest. This
Agreement shall supersede the Existing Guarantee and Collateral Agreement from and after the
Effective Date.

3

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

	 	 	 
	THE SUBSIDIARY LOAN PARTIES SET FORTH

ON SCHEDULE 1-A HERETO

	by

	
 
	 	/s/ Alan Ridgeway
	
 
	 	 
	
 
	 	Alan Ridgeway

	 	 	 
	THE SUBSIDIARY LOAN PARTIES
	SET FORTH ON SCHEDULE 1-B HERETO
	by
	 	 	/s/ Matt Bair
	 	 	Matt Bair

4

	 	 	 
	THE SUBSIDIARY LOAN PARTIES SET FORTH

ON SCHEDULE 1-C HERETO

	by

	
 
	 	/s/ Bruce Eskowitz
	
 
	 	 
	
 
	 	Bruce Eskowitz

5

	 	 	 
	JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT,

	by

	
 
	 	/s/ Tina L. Ruyter
	
 
	 	 
	
 
	 	Tina L. Ruyter
	
 
	 	Vice President

6EX-10.3

EXHIBIT 10.3

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

LIVE NATION HOLDCO #2, INC.

(Pursuant to Sections 242 and 245 of the

General Corporation Law of the State of Delaware)

Live Nation Holdco #2, Inc., a corporation organized and existing under and by virtue of the
General Corporation Law of the State of Delaware (the “General Corporation Law”), hereby certifies
as follows:

1. That the present name of this corporation is Live Nation Holdco #2, Inc., and that this
corporation was incorporated pursuant to the General Corporation Law by filing its original
certificate of incorporation on December 19, 2005 under the name CCE Holdco #2, Inc.

2. This Amended and Restated Certificate of Incorporation amends, restates and integrates the
provisions of the certificate of incorporation of the corporation (as heretofore amended) and has
been duly adopted in accordance with the provisions of Sections 242 and 245 of the General
Corporation Law, and adopted by the written consent of holders of the requisite number of shares of
the corporation in accordance with Section 228 of the General Corporation Law.

3. The text of the certificate of incorporation of the corporation is hereby amended and
restated to read in full as follows:

ARTICLE I

NAME

The name of the corporation (which is hereinafter referred to as the “Corporation”) is:

Live Nation Holdco #2, Inc.

ARTICLE II

REGISTERED OFFICE AND AGENT

The address of the Corporation’s registered office in the State of Delaware is 2711
Centerville Road, Suite 400, Wilmington, County of New Castle, Delaware 19808. The name of the
Corporation’s registered agent at such address is Corporation Service Company.

ARTICLE III

PURPOSE

The purpose of the Corporation shall be to engage in any lawful act or activity for which
corporations may be organized and incorporated under the General Corporation Law of the State of
Delaware.

ARTICLE IV

CAPITAL STOCK

SECTION 1. Authorized Capital Stock. The Corporation shall be authorized to issue
12,000,000 shares of capital stock, of which (a) 10,000,000 shares shall be shares of Common Stock,
par value $.01 per share (the “Common Stock”), and (b) 2,000,000 shares shall be shares of
Preferred Stock, par value $.01 per share (the “Preferred Stock”). Shares of Preferred Stock may
be issued from time to time in one or more series.

SECTION 2. Series A Preferred and Series B Preferred. Out of the 2,000,000 shares of
Preferred Stock authorized by SECTION 1 of this ARTICLE IV, there is hereby created a series of
200,000 shares of Preferred Stock to be designated “Series A Redeemable Preferred Stock” (the
“Series A Preferred”) and there is hereby created a series of 200,000 shares of Preferred Stock to
be designated “Series B Redeemable Preferred Stock” (the “Series B Preferred”). The voting powers,
preferences and relative, participating, optional and other special rights, and the qualifications,
limitations and restrictions, of the Series A Preferred and the Series B Preferred, respectively,
are as follows:

(a) Rank. The Series A Preferred and the Series B Preferred shall rank on a
parity with one another with respect to dividend rights and rights upon Liquidation and,
except as otherwise provided in this SECTION 2, the Series A Preferred and the Series B
Preferred shall rank on a parity with one another in all other respects. The Series A
Preferred and the Series B Preferred (sometimes collectively referred to as the “Designated
Preferred”) shall, with respect to dividend rights and rights upon Liquidation, rank:
(i) senior to the Common Stock and each other class or series of capital stock of the
Corporation or series of Preferred Stock established after the date of this Certificate of
Incorporation and issued in accordance with the terms of this ARTICLE IV, the terms of which
do not expressly provide that it ranks senior to or on parity with the Designated Preferred
as to dividend rights and rights upon Liquidation (collectively referred to as “Junior
Securities”); (ii) on a parity with each other class or series of capital stock of the
Corporation or series of Preferred Stock established after the date of this Certificate of
Incorporation and issued in accordance with the terms of this ARTICLE IV, the terms of which
expressly provide that such class or series shall rank on a parity with the Designated
Preferred as to dividend rights and rights upon Liquidation (collectively referred to as
“Parity Securities”); and (iii) junior to each other class or series of capital stock of the
Corporation or series of Preferred Stock established after the date of this Certificate of
Incorporation and issued in accordance with the terms of this ARTICLE IV, the terms of which
expressly provide that such class or series shall rank senior to the Designated Preferred as
to dividend rights and amounts payable upon Liquidation (collectively referred to as “Senior
Securities”).

(b) Dividends.

(i) Dividend Rate. Dividends in respect of each outstanding share of
Designated Preferred (“Designated Preferred Dividends”) shall accrue on a daily
basis from the date of issuance at an annual rate equal to the Dividend Rate (as
defined below) multiplied by the sum of (A) $100 (as it may be adjusted with respect
to each series of Designated Preferred pursuant to SECTION 2(j) of this ARTICLE IV,
the “Stated Liquidation Preference”) plus (B) the amount of all Designated Preferred
Dividends and Designated Preferred Penalty Dividends (as defined below), if any,
that have accrued with respect to such share after the issuance of such share and on
or prior to the immediately preceding Dividend Payment Date (as defined below), less
the amount of all Designated Preferred Dividends and Designated Preferred Penalty
Dividends paid with respect to such share since the issuance of such share
(collectively, “Accumulated Dividends”). The “Dividend Rate” shall be 13% per
annum, except that the Dividend Rate shall be 15.5% per annum with respect to each
day on which a Default occurs or a Default has occurred and is continuing. If a
Triggering Event occurs during any Dividend Period (as defined below) then
additional dividends in respect of each outstanding share of Designated Preferred
(“Designated Preferred Penalty Dividends”) shall accrue from the beginning of such
Dividend Period at the applicable annual penalty dividend rates set forth in the
following table:

	 	 	 	 	 
	Leverage Ratio	 	Annual Penalty Dividend Rate
	Greater than 4.0 to 1.0 but less

than or equal to 5.0 to 1.0

	 	

2%

	Greater than 5.0 to 1.0 but less

than or equal to 6.0 to 1.0

	 	

5%

	Greater than 6.0 to 1.0

	 	 	7	%

Designated Preferred Dividends and Designated Preferred Penalty Dividends, if any,
shall be computed on the basis of a 360-day year consisting of twelve 30-day months.

(ii) Payment Dates. Designated Preferred Dividends and Designated
Preferred Penalty Dividends, if any, are payable on the last day of March, June,
September and December of each year (each of such dates being a “Dividend Payment
Date” and each such quarterly period being a “Dividend Period”) beginning on
March 31, 2006. If any Dividend Payment Date is not a business day, Designated
Preferred Dividends and Designated Preferred Penalty Dividends, if any, shall be
payable on the next succeeding business day. Designated Preferred Dividends and
Designated Preferred Penalty Dividends, if any, payable on any Dividend Payment Date
shall be payable to holders of record as they appear in the Corporation’s stock
records at the close of business on March 15, June 15, September 15 and December 15
immediately preceding the Dividend Payment Date. Accumulated Dividends for any
Dividend Period not paid on the regular Dividend Payment Date may be declared and
paid at any time, without reference to any Dividend Payment Date, to the holders of
record of the Designated Preferred as they appear on the Corporation’s stock
register at the close of business on the record date as shall be fixed by the Board
of Directors, which record date shall be not more than 60 days or less than 10 days
prior to the payment date.

(iii) Accrual and Accumulation of Dividends. Designated Preferred
Dividends and Designated Preferred Penalty Dividends, if any, shall accrue whether
or not the Corporation has earnings or profits, whether or not there are funds
legally available for the payment of such dividends and whether or not dividends are
declared. Designated Preferred Dividends and Designated Preferred Penalty
Dividends, if any, shall be cumulative such that any Designated Preferred Dividends
or Designated Preferred Penalty Dividends accrued but not paid on any Dividend
Payment Date shall accumulate until paid and shall accrue additional dividends to
and including the date of payment thereof at the Dividend Rate and giving effect to
any Designated Preferred Penalty Dividend then in effect, compounded quarterly on
each subsequent Dividend Payment Date. Each payment of Designated Preferred
Dividends and Designated Preferred Penalty Dividends, if any, shall be credited
first against the Accumulated Dividends with respect to the earliest Dividend Period
for which dividends have not been paid in full.

(iv) Form of Payment. All Designated Preferred Dividends and
Designated Preferred Penalty Dividends, if any, declared by the Board of Directors
and paid by the Corporation shall be payable in cash.

(v) Restriction on Dividend Payments. No dividend whatsoever shall be
declared or paid upon, or any sum set apart for the payment of dividends upon, any
outstanding share of Designated Preferred with respect to any Dividend Period unless
all dividends for all preceding Dividend Periods have been declared and paid upon,
or declared and a sufficient sum set apart for the payment of such dividends upon,
all outstanding shares of Designated Preferred. Unless all Accumulated Dividends on
all outstanding Designated Preferred shall have been declared and paid, or declared
and a sufficient sum for the payment thereof set apart, then: (A) no dividend or
distribution (other than a dividend or distribution payable solely in shares of, or
options, warrants or rights to subscribe for or purchase shares of, any Junior
Securities) shall be declared or paid upon, or any sum set apart for the payment of
any dividends or distributions upon, any shares of Junior Securities or Parity
Securities, except dividends paid ratably on the Series A Preferred and Series B
Preferred and all such Parity Securities on which dividends are accrued, accumulated
and unpaid in proportion to the total amounts to which holders of all such shares
are then entitled; (B) no shares of Junior Securities or Parity Securities shall be
purchased, redeemed or otherwise acquired or retired for value (excluding an
exchange for shares of Junior Securities) by the Corporation or any of its
Subsidiaries, except for purchases, redemptions or other acquisitions or retirements
for value paid ratably on the Series A Preferred and Series B Preferred and all such
Parity Securities; and (C) no monies shall be paid into or set apart or made
available for a sinking or other like fund for the purchase, redemption or other
acquisition or retirement for value of any shares of Junior Securities by the
Corporation or any of its Subsidiaries; provided, however, that the foregoing
limitations shall not apply with respect to Junior Securities if at the date of each
such dividend, distribution, purchase, redemption, acquisition, retiring for value,
payment, setting apart or making available, full cumulative dividends determined in
accordance herewith on the Designated Preferred have been paid in full for all
dividend periods ended prior to the date of such event and such event is otherwise
permitted by SECTION 2(g)(xvii) of this ARTICLE IV.

(c) Liquidation.

(i) Liquidation Preference. In the event of any Liquidation, before
any payment or distribution of the Corporation’s assets (whether capital or
surplus), or proceeds thereof, is made to, or set apart for, the holders of Junior
Securities, holders of Designated Preferred shall be entitled to receive in respect
of each share of Designated Preferred payment out of the Corporation’s assets, or
the proceeds thereof, available for distribution of an amount equal to the sum of
(A) the Stated Liquidation Preference, (B) any Accumulated Dividends accrued with
respect to such share and (C) any dividends accrued during the current Dividend
Period to, but not including, the date of final distribution with respect to such
share. If, upon any Liquidation, the Corporation’s assets, or proceeds thereof, are
insufficient to pay, in full, the Stated Liquidation Preference and the other
liquidating payments to which the holders of any Parity Securities are entitled,
then such assets, or the proceeds thereof, shall be distributed among the holders of
Designated Preferred and such Parity Securities ratably in proportion to the
respective amounts that would be payable on such shares of Designated Preferred and
any such Parity Securities if all amounts payable thereon were paid in full.

(ii) No Further Participation. After payment of the full amount of the
sum of (A) the Stated Liquidation Preference, (B) any Accumulated Dividends accrued
with respect to such share and (C) any dividends accrued during the current Dividend
Period to, but not including, the date of final distribution with respect to such
share, to which the holders of shares of Designated Preferred are entitled, the
holders of the Designated Preferred shall have no further right or claim to any of
the Corporation’s remaining assets, or the proceeds thereof.

(d) Redemption.

(i) Mandatory Redemption. On December 21, 2011 (the “Mandatory
Redemption Date”), the Corporation shall redeem all of the outstanding shares of
Designated Preferred, in cash, at a redemption price, calculated as of such date,
equal to the sum of (A) the Stated Liquidation Preference, (B) any Accumulated
Dividends accrued with respect to such share and (C) any dividends accrued during
the current Dividend Period to, but not including, the date of final distribution
with respect to such share. If the Corporation does not have sufficient funds or is
not permitted under applicable law to redeem all of the outstanding shares of
Designated Preferred on the Mandatory Redemption Date, the Corporation shall use all
legally available funds to effect such redemption with respect to the maximum number
of shares of Designated Preferred. The Corporation shall allocate the shares of
Designated Preferred to be redeemed ratably between the Series A Preferred and the
Series B Preferred in proportion to the number of shares of each such series then
outstanding. The Corporation shall allocate the shares of Series A Preferred and
Series B Preferred to be redeemed ratably among the holders of the outstanding
            shares of each such series in proportion to the number of such shares then held by
each holder. The shares of Designated Preferred not redeemed shall remain
outstanding and entitled to all of the rights and preferences provided herein.
Subject to the other provisions hereof, the Corporation shall redeem the balance of
the shares of Designated Preferred on the first date thereafter on which the
Corporation may legally do so (subject to the allocation provisions set forth above
with respect to any further redemption in part).

(ii) Notice of Redemption. The Corporation shall give notice of the
mandatory redemption of Designated Preferred to each holder of record of Designated
Preferred not less than 30 days nor more than 60 days before the redemption date;
provided that neither the failure to give such notice nor any defect therein shall
affect the validity of the procedure for the redemption of any shares of Designated
Preferred to be redeemed except as to any holder to whom the Corporation has failed
to give said notice or whose notice was defective. The notice of mandatory
redemption shall state: (A) the redemption date; (B) the redemption price; (C) if
less than all Designated Preferred are to be redeemed, the aggregate number of
            shares of Designated Preferred to be redeemed and the number of shares held by the
addressee of such notice to be redeemed; (D) the place or places where certificates
evidencing shares of Designated Preferred to be redeemed are to be surrendered for
payment of the redemption price; and (E) that, on the redemption date, the
redemption price shall become due and payable upon each such share of Designated
Preferred to be redeemed and that dividends on the shares of Designated Preferred to
be redeemed shall cease to accrue on such redemption date. Such notice shall be
given by first class mail, postage prepaid, mailed to each holder of record of
Designated Preferred at such holder’s address as the same appears on the
Corporation’s stock register. Upon surrender of the certificates for shares of
Designated Preferred so redeemed, in accordance with the notice of mandatory
redemption, such shares of Designated Preferred shall be redeemed by the Corporation
at the redemption price aforesaid. If fewer than the total number of shares of
Series A Preferred or Series B Preferred represented by a certificate are redeemed,
the Corporation shall issue and deliver to the holder a new certificate representing
the number of unredeemed shares of Series A Preferred or Series B Preferred, as the
case may be, held by such holder.

(iii) Redemption Price. Prior to any redemption date, the Corporation
shall segregate and hold in trust an amount sufficient to pay the redemption price
of all shares of Designated Preferred to be redeemed on that date.

(iv) No Rights in Respect of Redeemed Shares. From and after the
redemption date (unless the Corporation defaults in the payment in full of the
redemption price of the shares called for redemption), dividends on the shares of
Designated Preferred so called for redemption shall cease to accrue, and all rights
of the holders thereof, as holders of such shares of Designated Preferred (except
the right to receive from the Corporation the redemption price), shall cease.

(v) Restrictions After Failure to Effect Full Redemption. If and for
so long as the Corporation fails to redeem, for any reason, all of the outstanding
            shares of Designated Preferred pursuant to this SECTION 2(d), the Corporation shall
not, directly or indirectly, (A) redeem or otherwise acquire any Parity Securities
or discharge any mandatory or optional redemption, sinking fund or other similar
obligation in respect of any Parity Securities (except in connection with a
redemption, sinking fund or other similar obligation in which shares of Designated
Preferred receive a pro rata share) or (B) declare or make any distribution on
Junior Securities, or redeem or otherwise acquire any Junior Securities, or
discharge any mandatory or optional redemption, sinking fund or other similar
obligation in respect of Junior Securities.

(e) Repurchase Offer Upon Change of Control.

(i) Repurchase Offer. At least 20 days prior to the consummation by
the Corporation of any transaction that would result in or constitute a Change of
Control, the Corporation shall give notice to each holder of Designated Preferred
describing the transaction or transactions that constitute a Change of Control and
providing a written offer (the “Repurchase Offer”) to purchase all of the shares of
Designated Preferred held by such holder at a purchase price for such shares equal
to 101% of the sum of (A) the Stated Liquidation Preference, (B) any Accumulated
Dividends accrued with respect to such share and (C) any dividends accrued during
the current Dividend Period to, but not including, the date of final distribution
with respect to such share, calculated as of the day on which such purchase is
consummated (such amount, the “Repurchase Price”). The Repurchase Offer shall be
conditioned upon the consummation by the Corporation of the Change of Control but
shall otherwise be irrevocable.

(ii) Compliance with Securities Laws. The Corporation shall comply
with the requirements of Rule 14e-l under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and any other securities laws and regulations to the
extent those laws and regulations are applicable in connection with the repurchase
of Designated Preferred as a result of a Change of Control. To the extent that the
provisions of any securities laws or regulations conflict with the any of the
provisions of this SECTION 2(e), the Corporation shall comply with the applicable
securities laws and regulations and shall be deemed not to have breached its
obligations under this SECTION 2(e) by virtue of such compliance.

(iii) Closing of the Repurchase Offer. Immediately prior to the
consummation of the Change of Control, the Corporation shall (A) repurchase all
            shares of Designated Preferred properly tendered pursuant to the Repurchase Offer,
and (B) segregate and hold in trust an amount sufficient to pay the Repurchase Price
for all shares of Designated Preferred so tendered. Upon surrender of the
certificates for shares of Designated Preferred so tendered (properly endorsed for
transfer), free and clear of any restrictions, liens or claims, together with such
other instruments of transfer as the Corporation may reasonably request, in
accordance with the Repurchase Offer, the Corporation shall promptly deliver to each
holder of shares of Designated Preferred so tendered the applicable payment for
those shares of Designated Preferred. If fewer than the total number of shares of
Series A Preferred or Series B Preferred represented by a certificate are
repurchased, the Corporation shall issue and deliver to the holder a new certificate
representing the number of unpurchased shares of Series A Preferred or Series B
Preferred, as the case may be, held by such holder. The Corporation shall publicly
announce the results of its Repurchase Offer on or as soon as practicable after
consummation of the Repurchase Offer.

(iv) Third Party Change of Control Offer. The Corporation shall not be
required to make a Repurchase Offer upon the occurrence of a Change of Control if a
third party makes an offer to purchase the Designated Preferred in the manner, at
the times and otherwise in compliance with the requirements described in this
SECTION 2(e) and purchases all shares of Designated Preferred validly tendered and
not withdrawn.

(v) Failure to Comply. The Corporation may not consummate any
transaction that would result in or constitute a Change of Control unless it has
complied in full with its obligations with respect thereto pursuant to this SECTION
2(e).

(f) Voting Rights.

(i) Series A Preferred. In connection with the election of directors,
the holders of Series A Preferred shall have such voting rights as shall be set
forth in ARTICLE VI. In connection with all matters submitted to a vote or written
consent of stockholders of the Corporation, other than the election of directors,
for so long as any shares of Series A Preferred are outstanding, every holder of
Series A Preferred shall be entitled to the Specified Number of votes, in person or
by proxy, for each share of Series A Preferred outstanding in such holder’s name on
the transfer books of the Corporation on the record date for such vote or written
consent of stockholders (or, if no record date is established, on the record date
determined in accordance with applicable law). The holders of Series A Preferred
shall vote together with the holders of the Common Stock on all matters upon which
holders of Common Stock have the right to vote, other than the election of directors
and other than such other matters required by law or this Certificate of
Incorporation to be submitted to a class or series vote. Fractional votes shall be
permitted, provided that any fractional votes shall be rounded to the nearest
one-hundredth of a vote (with five-thousandths being rounded upward). Each holder
of shares of Series A Preferred shall be entitled to notice of any stockholders
meeting in accordance with the By-Laws of the Corporation and applicable law.

(ii) Series B Preferred. The holders of shares of Series B Preferred
are not entitled to any voting rights except as specifically provided in SECTION
2(f)(iii) of this ARTICLE IV and as provided in ARTICLE VI, or as otherwise required
by law.

(iii) Special Designated Preferred Voting Rights. In addition to any
other vote required by this Certificate of Incorporation or by law:

(A) other than as set forth in SECTION 2(f)(iii)(D) of this ARTICLE IV
or as required by law, for so long as any shares of Series A Preferred are
outstanding, the affirmative vote or consent of the holders of a majority of
the outstanding shares of Series A Preferred Stock shall be required to
adopt, amend, alter or repeal any provision of this Certificate of
Incorporation (whether by merger, consolidation or otherwise) so as to
adversely affect the preferences, rights or powers of the Series A Preferred
Stock; provided, however, that any such action that changes the dividend
payable on, the Stated Liquidation Preference of, the mandatory redemption
feature of, the Change of Control repurchase feature of or the non-call
features of, the Series A Preferred Stock shall require the affirmative vote
of the holders of 72.5% of the outstanding shares of Series A Preferred
Stock at a meeting of holders of Series A Preferred Stock duly called for
such purpose or the unanimous written consent of the holders of the Series A
Preferred Stock;

(B) other than as set forth in SECTION 2(f)(iii)(D) of this ARTICLE IV
or as required by law, for so long as any shares of Series B Preferred are
outstanding, the affirmative vote or consent of the holders of a majority of
the outstanding shares of Series B Preferred Stock shall be required to
adopt, amend, alter or repeal any provision of this Certificate of
Incorporation (whether by merger, consolidation or otherwise) so as to
adversely affect the preferences, rights or powers of the Series B Preferred
Stock; provided, however, that any such action that changes the dividend
payable on, the Stated Liquidation Preference of, the mandatory redemption
feature of, the Change of Control repurchase feature of or the non-call
features of, the Series B Preferred Stock shall require the affirmative vote
of the holders of 72.5% of the outstanding shares of Series B Preferred
Stock at a meeting of holders of Series B Preferred Stock duly called for
such purpose or the unanimous written consent of the holders of the Series B
Preferred Stock;

(C) the affirmative vote or consent of the holders of two-thirds of the
outstanding shares of Series A Preferred Stock (if any shares of Series A
Preferred are then outstanding) and the holders of two-thirds of the
outstanding shares of Series B Preferred Stock (if any shares of Series B
Preferred are then outstanding) voting as separate classes shall be required
for the Corporation to designate or issue any Senior Securities or Parity
Securities or reclassify any other securities into Senior Securities or
Parity Securities; and

(D) for so long as any shares of Series A Preferred and Series B
Preferred are outstanding, the affirmative vote or consent of the holders of
a majority of the outstanding shares of Series A Preferred Stock and
Series B Preferred Stock, voting together as a single class, shall be
required to adopt, amend, alter or repeal any provision of (1) SECTION 2(g)
of ARTICLE IV of this Certificate of Incorporation (whether by merger,
consolidation or otherwise) that could reasonably be expected to be material
and adverse to the rights of the holders of the Designated Preferred to
receive the dividends pursuant to SECTION 2(b) of ARTICLE IV or have their
            shares redeemed pursuant to SECTION 2(d) of ARTICLE IV, (2) ARTICLE VI or
(3) SECTION 3 of ARTICLE X.

(g) Covenants. Nothing in SECTION 2(g) of this ARTICLE IV shall limit the
Corporation’s powers in ARTICLE III and no act of the Corporation shall be invalid or
ultra vires by reason of the fact that the Corporation failed to comply with
the covenants of SECTION 2(g) of this ARTICLE IV. The only consequence of such failure by
the Corporation to comply with the covenants of SECTION 2(g) of this ARTICLE IV (other than
SECTION 2(g)(iii), (viii), (x)(A)(3), (xii), (xiii), (xvii) and (xviii) of this ARTICLE IV)
shall be, upon the passage of time set forth in clause (iv) of the definition of “Event of
Default” herein, the occurrence of a Default, with the sole remedies for such Default being
the remedies provided in the second sentence of SECTION 2(b)(i) of ARTICLE IV and the
proviso contained the first sentence of SECTION 1 of ARTICLE VI, and the holders of the
Designated Preferred will not be entitled to specific performance. The consequence of such
failure by the Corporation to comply with the covenants of SECTION 2(g)(iii), (viii),
(x)(A)(3), (xii), (xiii), (xvii) and (xviii) of this ARTICLE IV shall be, upon the passage
of time set forth in clause (iv) of the definition of “Event of Default” herein, the
occurrence of a Default, with the remedies for such Default being, in addition to any
specific remedies provided for in this Agreement, any other legal or equitable remedy
available against the Corporation. Waivers, consents, supplements, amendments and other
modifications to SECTION 2(g) of this ARTICLE IV shall be deemed to be consented and agreed
to by the holders of Designated Preferred in accordance with the second paragraph of ARTICLE
VIII. For so long as any Designated Preferred are outstanding:

(i) Financial Statements and Other Information. The Corporation shall
furnish to the holders of the Designated Preferred (other than as set forth in
clauses (E) and (I) below):

(A) within 90 days after the end of each fiscal year of Parent, its
audited consolidated balance sheet and related statements of operations,
changes in stockholders’ equity and cash flows as of the end of and for such
year, setting forth in each case in comparative form the figures for the
previous fiscal year, all reported on by Ernst & Young LLP or other
independent public accountants of recognized national standing (without a
“going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of Parent and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;

(B) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of Parent, its unaudited consolidated balance
sheet and related statements of operations, changes in stockholders’ equity
and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or,
in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by a Financial Officer as presenting fairly in all
material respects the financial condition and results of operations of
Parent and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes;

(C) concurrently with any delivery of financial statements under clause
(A) or (B) above, a certificate of a Financial Officer (1) certifying, to
the best of such officer’s knowledge, as to whether a Default or Triggering
Event exists at the end of such fiscal quarter or fiscal year, as
applicable, and, if a Default so exists, specifying the details thereof and
any action taken or proposed to be taken with respect thereto; (2) setting
forth reasonably detailed calculations demonstrating compliance with
SECTIONS 2(g) (xxi), (xxii), (xxiii) and (xxiv) of this ARTICLE IV;
(3) setting forth reasonably detailed calculations demonstrating
Consolidated Tangible Assets as of the date of such financial statements;
and (4) stating whether any change in GAAP or in the application thereof has
occurred since the date of Parent’s most recent audited financial statements
and, if any such change has occurred, specifying the effect of such change
on the financial statements accompanying such certificate;

(D) concurrently with any delivery of financial statements under clause
(A) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the
course of their examination of such financial statements of any Default or
Triggering Event (which certificate may be limited to the extent required by
accounting rules or guidelines);

(E) at the request of holders of Designated Preferred owning Designated
Preferred then having a liquidation preference calculated pursuant to
SECTION 2(c)(1) of this ARTICLE IV of at least $7.5 million, as soon as
available to the Board of Directors of Parent, and in any event not later
than 60 days after the end of each fiscal year of Parent, a detailed
consolidated budget for the subsequent fiscal year (including a projected
consolidated balance sheet and related statements of projected operations
and cash flow as of the end of and for each fiscal quarter of such fiscal
year and setting forth the assumptions used for purposes of preparing such
budget) and, promptly when available, any significant revisions of such
budget;

(F) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by
Parent or any of its Subsidiaries with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, or
distributed by Parent to its shareholders generally, as the case may be;

(G) within 100 days after the end of each fiscal year of Parent, the
unaudited consolidated balance sheet and related statements of operations of
the Corporation (with consolidating information reconciling in reasonable
detail such financial statements with the corresponding financial statements
of Parent), as of the end of and for such year, setting forth in comparative
form the figures for the previous fiscal year (provided such figures for the
2004 fiscal year shall not be required for the financial statements to be
provided for the fiscal year ended December 31, 2005), all certified by a
Financial Officer as presenting fairly in all material respects the
financial condition and results of operations of the Corporation and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;

(H) within 55 days after the end of each of the first three fiscal
quarters of each fiscal year of Parent, the unaudited consolidated balance
sheet and related statements of operations of the Corporation (with
consolidating information reconciling in reasonable detail such financial
statements with the corresponding financial statements of Parent), as of the
end of and for such fiscal quarter and the then elapsed portion of the
fiscal year, setting forth in each case in comparative form the figures for
the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by a
Financial Officer as presenting fairly in all material respects the
financial condition and results of operations of the Corporation and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes; and

(I) promptly following any request therefor by holders of Designated
Preferred owning Designated Preferred then having a liquidation preference
calculated pursuant to SECTION 2(c)(1) of this ARTICLE IV of at least $7.5
million, such other information regarding the operations, business affairs
and financial condition of Parent and its Subsidiaries, as a holder of
Designated Preferred may reasonably request.

Upon written request of any holder of Series A Preferred or Series B Preferred, the
Corporation shall provide to such holder a list of all holders of Designated
Preferred within 30 days after such request.

Information required to be delivered pursuant to SECTION 2(g)(i) of this ARTICLE IV
shall be deemed to have been furnished and delivered if such information, or one or
more annual, quarterly or other reports or filings containing such information,
shall have been (1) delivered to each holder of Designated Preferred in electronic
format or (2) electronically filed with the Securities and Exchange Commission, or
any Governmental Authority succeeding to any or all of the functions of said
Commission, and notice thereof shall have been provided to each holder of Designated
Preferred.

(ii) Notices of Material Events. The Corporation shall furnish to the
holders of the Designated Preferred prompt written notice of the following:

(A) the occurrence of any Default;

(B) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or affecting Parent
or any Affiliate thereof that could reasonably be expected to result in a
Material Adverse Effect;

(C) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Corporation and its Subsidiaries in an aggregate
amount exceeding $10,000,000; and

(D) any other occurrences or events that result in, or could reasonably
be expected to result in, a Material Adverse Effect.

Each notice delivered under SECTION 2(g)(ii) of this ARTICLE IV shall be accompanied
by a statement of a Financial Officer setting forth the details of the occurrence or
event requiring such notice and any action taken or proposed to be taken with
respect thereto.

(iii) Existence; Conduct of Business. The Corporation shall, and shall
cause each of its Subsidiaries to, do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks
and trade names material to the conduct of the business of Parent and its
Subsidiaries, taken as a whole, provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under SECTION 2(g)(xii)
of this ARTICLE IV, or any sale, transfer or other disposition permitted by SECTION
2(g)(xiv) of this ARTICLE IV or any statutory conversion.

(iv) Payment of Obligations. The Corporation shall, and shall cause
each of its Subsidiaries to, pay its Indebtedness and other obligations, including
tax liabilities, before the same shall become delinquent, except where (A) the
validity or amount thereof is being contested in good faith and if necessary to so
contest, by appropriate proceedings, (B) the Corporation or such Subsidiary has set
aside on its books adequate reserves with respect thereto in accordance with GAAP,
(C) such contest effectively suspends collection of the contested obligation and the
enforcement of any Lien securing such obligation and (D) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

(v) Maintenance of Properties. The Corporation shall, and shall cause
each of its Subsidiaries to, keep and maintain all property material to the conduct
of the business of Parent and its Subsidiaries, taken as a whole, in good working
order and condition, ordinary wear and tear excepted.

(vi) Insurance. The Corporation shall, and shall cause each of its
Subsidiaries to, maintain, with financially sound and reputable insurance companies,
insurance in such amounts (with no greater risk retention) and against such risks
under similar circumstances as are reasonably determined by the management of Parent
and its Subsidiaries to be sufficient in accordance with usual and customary
practices of companies of established repute engaged in the same or similar
businesses operating in the same or similar locations, except to the extent
reasonable self insurance meeting the same standards is maintained with respect to
such risks. The Corporation shall furnish to holders of Designated Preferred, upon
request of such holders owning Designated Preferred then having a liquidation
preference calculated pursuant to SECTION 2(c)(i) of this ARTICLE IV of at least $15
million and at such holders’ expense, information in reasonable detail as to the
insurance so maintained.

(vii) Casualty and Condemnation. The Corporation shall furnish to the
holders of Designated Preferred prompt written notice of any casualty or other
insured damage to any material portion of its properties or assets and the
properties or assets of its Subsidiaries, taken as a whole, or the commencement of
any action or proceeding for the taking or expropriation of any material portion of
its properties or assets and the properties or assets of its Subsidiaries, taken as
a whole, under power of eminent domain or by condemnation or similar proceeding.

(viii) Books and Records; Inspection and Audit Rights. The Corporation
shall, and shall cause each of its Subsidiaries to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. The Corporation shall, and
shall cause each of its Subsidiaries to, permit any representatives designated by
holders of Designated Preferred owning Designated Preferred then having a
liquidation preference calculated pursuant to SECTION 2(c)(i) of this ARTICLE IV of
at least $15 million, upon reasonable prior notice and during normal business hours,
to visit and inspect its properties, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers and
independent accountants, all at such reasonable times and as often as reasonably
requested, in each case subject to applicable attorney-client privilege exceptions
and compliance with non-disclosure and confidentiality agreements between any of
Parent or any of its Subsidiaries and third parties.

(ix) Compliance with Laws. The Corporation shall, and shall cause each
of its Subsidiaries to, comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, except where the failure to
do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

(x) Indebtedness; Certain Equity Securities.

(A) The Corporation shall not, and shall not permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Indebtedness,
except:

(1) Indebtedness created under the Credit Agreement;

(2) Indebtedness existing on the Restatement Date and
extensions, renewals and replacements of any such Indebtedness that
do not increase the outstanding principal amount thereof or result in
an earlier maturity date or decreased weighted average life thereof
or change the parties directly or indirectly responsible for the
payment thereof;

(3) unsecured Indebtedness of the Corporation or any of its
Subsidiaries to Parent or any of its Subsidiaries, provided that if
such Indebtedness is owed to a wholly-owned Subsidiary and the
obligor is not a wholly-owned Subsidiary such Indebtedness may be
secured, and provided further that (x) such Indebtedness shall not
have been transferred or pledged to any third party other than under
the Credit Agreement, (y) Indebtedness of any Subsidiary to any other
Subsidiary (other than Indebtedness of the Corporation or any of its
Subsidiaries to the Corporation or any of its Subsidiaries) shall be
subject to SECTION 2(g)(xiii) of this ARTICLE IV and (z)  the
aggregate principal amount of Indebtedness of the Corporation or any
of its Subsidiaries to any direct or indirect parent company of the
Corporation permitted by this clause (3) shall not exceed the
aggregate amount of proceeds raised by debt and equity financings of
such parent companies and such Indebtedness shall have terms no less
favorable than those that could otherwise be obtainable on an arms’
length basis;

(4) Indebtedness of the Corporation or any of its Subsidiaries
incurred to finance the acquisition, construction, development,
enlargement, repair or improvement of any fixed or capital assets,
including Capital Lease Obligations and any Indebtedness assumed in
connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof, and
extensions, renewals and replacements of any such Indebtedness that
do not increase the outstanding principal amount thereof or result in
an earlier maturity date or decreased weighted average life thereof
or change the parties directly or indirectly responsible for the
payment thereof, provided that (x) such Indebtedness is incurred
prior to or within 180 days after such acquisition or the completion
of such construction, development, enlargement, repair or improvement
and (y) the aggregate principal amount of Indebtedness permitted by
this clause (4) of SECTION 2(g)(x)(A) of this ARTICLE IV shall not
exceed the US Dollar Equivalent (as such term is defined in the
Credit Agreement as in effect on the Distribution Date) of
$10,000,000 at any time outstanding;

(5) Indebtedness of any Person that becomes a Subsidiary of the
Corporation after the Restatement Date and extensions, renewals and
replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof or result in an earlier maturity
date or decreased weighted average life thereof or change the parties
directly or indirectly responsible for the payment thereof, provided
that (x) such Indebtedness exists at the time such Person becomes a
Subsidiary of the Corporation and is not created in contemplation of
or in connection with such Person becoming a Subsidiary of the
Corporation and (y) the aggregate principal amount of Indebtedness
permitted by this clause (5) of SECTION 2(g)(x)(A) of this ARTICLE IV
shall not exceed the US Dollar Equivalent of $10,000,000 at any time
outstanding;

(6) Permitted Subordinated Indebtedness provided that
immediately before and after giving pro forma effect to the
incurrence of such Permitted Subordinated Indebtedness, no Default
shall have occurred and be continuing (including any Default under
SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv) of this ARTICLE IV);

(7) Indebtedness with respect to Swap Agreements that are
permitted to be entered into under SECTION 2(g)(xvi) of this ARTICLE
IV;

(8) Indebtedness of Foreign Subsidiaries denominated in any
currency (exclusive of Indebtedness incurred under the Credit
Agreement) in an aggregate principal amount not exceeding the sum of
(A) US$75,000,000 plus (B) so long as AMG is a Subsidiary and Parent
holds directly or indirectly not more than 50% of the Equity
Interests in AMG (or any other entity of the Academy Music Group),
Indebtedness of any entity of the Academy Music Group under the AMG
Credit Documents in an aggregate amount not exceeding the US Dollar
Equivalent of £30,000,000 at any time outstanding and any additional
indebtedness incurred by any entity of the Academy Music Group in an
aggregate amount not exceeding the US Dollar Equivalent of
US$10,000,000 at any time outstanding and extensions, renewals and
replacements of such Indebtedness that do not increase the
outstanding principal or commitment amount thereof or result in an
earlier maturity date or decreased weighted average life thereof or
change the parties directly or indirectly responsible for the payment
thereof;

(9) advances and deposits received by the Corporation or its
Subsidiaries in the ordinary course of business and Guarantees
thereof by the Corporation or any other Subsidiary;

(10) other Indebtedness of the Corporation or any of its
Subsidiaries not permitted by any other clause of SECTION 2(g)(x)(A)
of this ARTICLE IV in an aggregate principal amount not exceeding the
US Dollar Equivalent of $50,000,000 at any time outstanding, provided
that immediately before and after giving pro forma effect to the
incurrence of such Indebtedness, no Default shall have occurred and
be continuing (including any Default under SECTION 2(g)(xxi), (xxii),
(xxiii) or (xxiv) of this ARTICLE IV);

(11) Permitted Holding Company Indebtedness of the Corporation,
provided that immediately before and after giving pro forma effect to
the incurrence of such Permitted Holding Company Indebtedness of the
Corporation, no Default shall have occurred and be continuing
(including any Default under SECTION 2(g)(xxi), (xxii), (xxiii) or
(xxiv) of this ARTICLE IV); and

(12) Guarantees by the Corporation and any Subsidiary of the
Corporation in respect of Permitted Holding Company Indebtedness and
Permitted Subordinated Indebtedness, provided that (A) such
Guarantees (1) if of Permitted Holding Company Indebtedness by a
Holding Company are subordinated to, or rank pari passu in right of
payment with, the obligations under the Credit Agreement or (2) are
otherwise subordinated to the obligations under the Credit Agreement
on terms no less favorable to the lenders under the Credit Agreement
than the terms set forth in Exhibit F to the Credit Agreement and (B)
immediately before and after giving pro forma effect to the
incurrence of such Permitted Holding Company Indebtedness or
Permitted Subordinated Indebtedness, as the case may be, no Default
shall have occurred and be continuing (including any Default under
SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv) of this ARTICLE IV).

(B) The Corporation shall not, and shall not permit any of its
Subsidiaries to, issue any preferred stock or other preferred Equity
Interests, other than (i) preferred stock or other preferred Equity
Interests outstanding on the date hereof, (ii) the Designated Preferred and
(iii) preferred stock or other preferred Equity Interests owned by the
Corporation, any of its Subsidiaries or any of its direct or indirect
parents.

(xi) Liens. The Corporation shall not, and shall not permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, or, except as permitted under
SECTION 2(g)(xiv) of this ARTICLE IV, assign or sell any income or revenues
(including accounts receivable) or rights in respect of any thereof, except:

(1) Liens created under the Credit Agreement;

(2) Permitted Encumbrances;

(3) any Lien on any property or asset of the Corporation or any
of its Subsidiaries existing on the Restatement Date, provided that
(x) such Lien shall not apply to any other property or asset of the
Corporation or any of its Subsidiaries other than proceeds from, and
after-acquired property in respect of, the property or assets subject
to such Lien, in each case to the extent required under the terms of
the document or instrument creating such Lien as in effect on the
Restatement Date, and (y) such Lien shall secure only those
obligations which it secures on the Restatement Date and extensions,
renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

(4) any Lien existing on any property or asset prior to the
acquisition thereof by the Corporation or any of its Subsidiaries or
existing on any property or asset of any Person that becomes a
Subsidiary of the Corporation after the Restatement Date prior to the
time such Person becomes such a Subsidiary, provided that (x) such
Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming such a Subsidiary, as the case
may be, (y) such Lien shall not apply to any other property or assets
of the Corporation or any of its Subsidiaries other than proceeds
from, and after-acquired property in respect of, the property or
assets subject to such Lien, in each case to the extent required
under the terms of the document or instrument creating such Lien as
in effect on the date of the applicable acquisition, and (z) such
Lien shall secure only those obligations which it secures on the date
of such acquisition or the date such Person becomes a Subsidiary of
the Corporation, as the case may be, and extensions, renewals and
replacements thereof that do not increase the outstanding principal
amount thereof;

(5) Liens on fixed or capital assets acquired, constructed,
developed, enlarged, repaired or improved by the Corporation or any
of its Subsidiaries, provided that (w) such Liens secure Indebtedness
permitted by SECTION 2(g)(x)(A)(4) of this ARTICLE IV, (x) such Liens
and the Indebtedness secured thereby are incurred prior to or within
180 days after such acquisition or the completion of such
construction, development, enlargement, repair or improvement,
provided that such Liens may also secure extensions, renewals and
replacements of such Indebtedness to the extent such extensions,
renewals and replacements are permitted under SECTION 2(g)(x)(A) of
this ARTICLE IV, (y) the Indebtedness secured thereby does not exceed
100% of the cost of acquiring, constructing, developing, enlarging,
repairing or improving such fixed or capital assets and (z) such
Liens shall not apply to any other property or assets of the
Corporation or any of its Subsidiaries other than proceeds from, and
after-acquired property in respect of, the property or assets subject
to such Lien, in each case to the extent required under the terms of
the document or instrument creating such Lien as in effect on the
date such Lien is created; and

(6) Liens (other than Liens on collateral under the Credit
Agreement or on any real property or interests in real property of
the Corporation or any of its Subsidiaries) in addition to those
permitted by any other clause of SECTION 2(g)(xi) of this ARTICLE IV,
provided that the aggregate amount of all Liens permitted under this
clause (6) (measured, as to each such Lien, as the greater of the
amount secured by such Lien and the fair market value at the time of
the creation of such Lien of the assets subject to such Lien) shall
not exceed the US Dollar Equivalent of $25,000,000; and

(7) Liens securing Indebtedness permitted under SECTION
2(g)(x)(A)(3) of this ARTICLE IV of a Subsidiary that is not a
wholly-owned Subsidiary to a wholly-owned Subsidiary.

(xii) Fundamental Changes.

(A) The Corporation shall not, and shall not permit any of its
Subsidiaries to, merge into or consolidate with any other Person, or permit
any other Person to merge into or consolidate with it, or liquidate or
dissolve, except that, if at the time thereof and immediately after giving
pro forma effect thereto no Default shall have occurred and be continuing
(1) any Person may merge into the Corporation in a transaction in which the
Corporation is the surviving corporation, (2) any Person other than the
Corporation may merge into any Subsidiary (a) in a transaction in which the
surviving entity is a Subsidiary and (b) in connection with a sale or other
disposition of a Subsidiary permitted under SECTION 2(g)(xiv) of ARTICLE IV
that results in such Person ceasing to be a Subsidiary, and (3) any
Subsidiary may liquidate or dissolve if (x) the Corporation determines in
good faith that such liquidation or dissolution is in the best interests of
the Corporation and its other Subsidiaries and is not materially
disadvantageous to the holders of the Designated Preferred and (y) after
giving pro forma effect thereto, no Default shall have occurred and he
continuing, provided that any such merger involving a Person that is not a
wholly owned Subsidiary of the Corporation immediately prior to such merger
shall not be permitted unless also permitted by SECTION 2(g)(xiii) of this
ARTICLE IV.

(B) The Corporation shall not, and shall not permit any of its
Subsidiaries to, engage to any material extent in any business other than a
Related Business.

(C) The Corporation shall not engage in any business or activity other
than the ownership of all the outstanding Equity Interests of Worldwide and
activities incidental thereto. The Corporation shall not own or acquire any
assets (other than Equity Interests of Worldwide, cash and Permitted
Investments) or incur any liabilities (other than liabilities under the
Credit Agreement and other liabilities expressly permitted to be incurred by
the Corporation under this ARTICLE IV, liabilities imposed by law, including
tax liabilities, and other liabilities incidental to its existence and
permitted business and activities).

(D) Each Permitted Acquisition Holding will not engage in any business
or activity other than acquisitions of Related Businesses in one or more
Tax-Free Reorganizations, the issue of the Permitted Acquisition Holding
Guarantee and the ownership of all the outstanding Equity Interests of
Subsidiaries so acquired and activities incidental thereto.

(xiii) Investments, Loans, Advances, Guarantees and Acquisitions. The
Corporation shall not, and shall not permit any of its Subsidiaries to, purchase,
hold or acquire (including pursuant to any merger with any Person that was not a
wholly owned Subsidiary of the Corporation prior to such merger) any Equity
Interests in or evidences of Indebtedness or other securities (including any option,
warrant or other right to acquire any of the foregoing) of, make or permit to exist
any loans or advances to, Guarantee any obligations of, or make or permit to exist
any investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of related transactions) any assets of any
other Person constituting a business unit, line of business or division of a Person
except:

(A) Permitted Investments;

(B) investments existing on the Restatement Date;

(C) investments by the Corporation and its Subsidiaries in Equity
Interests in any Subsidiary of the Corporation;

(D) (1) loans or advances made by the Corporation to any Subsidiary of
the Corporation and; (2) loans or advances made by the Corporation or any
Subsidiary of the Corporation to Parent or any of its Subsidiaries, provided
the aggregate amount of loans or advances made to Parent or any of its
Subsidiaries (other than the Corporation and its Subsidiaries) pursuant to
this clause (D)(2) shall not exceed the amounts permitted by SECTION
2(g)(xvii) of this ARTICLE IV and any amount loaned or advanced to Parent or
any of its Subsidiaries (other than the Corporation and its Subsidiaries)
shall be considered to be Restricted Payments for purposes of calculating
Restricted Payments under SECTION 2(g)(xvii) of this ARTICLE IV;

(E) investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;

(F) purchases or other acquisitions of property and assets or
businesses of any Person or of assets constituting a business unit, a line
of business or division of such Person, or Equity Interests in a Person
that, upon the consummation thereof, shall be a direct or indirect
Subsidiary of Worldwide or, if acquired in a Tax-Free Reorganization, a
direct or indirect Subsidiary of a Permitted Acquisition Holding (including
in each case as a result of a merger or consolidation), provided that with
respect to each purchase or other acquisition made pursuant to SECTION
2(g)(xiii)(F) of this ARTICLE IV (each, a “Permitted Acquisition”):

(1) the acquired property, assets, business or Person is in a
business of the type conducted by the Corporation and its
Subsidiaries on the Restatement Date or a business reasonably related
thereto;

(2) immediately before and after giving pro forma effect to such
purchase or acquisition, no Default shall have occurred and be
continuing (including any Default under SECTION 2(g)(xxi), (xxii),
(xxiii) or (xxiv) of this ARTICLE IV);

(3) The Corporation shall have delivered to the holders of
Designated Preferred, no later than 5 business days prior to the date
on which any such purchase or other acquisition, other than an
Excluded Acquisition, is to be consummated and no later than 20
business days following the date on which an Excluded Acquisition is
consummated, a certificate of a Financial Officer, certifying that
all of the requirements set forth in the immediately preceding
clauses (1) and (2) hereof have been satisfied or shall be satisfied
on or prior to the consummation of such purchase or other
acquisition; and

(4) such purchase or other acquisition shall not have been
consummated through or preceded by an unsolicited tender offer;

(G) Permitted Deposits;

(H) any Equity Interest, Indebtedness, securities or assets received as
a result of the receipt of non-cash consideration from any asset disposition
permitted under SECTION 2(g)(xiv) of this ARTICLE IV;

(I) any Equity Interests, Indebtedness, securities or assets received
solely in exchange for common stock of Parent and (ii) if received in
exchange for common stock of Parent, cash, cash equivalents and Permitted
Investments (or any combination thereof), to the extent received in exchange
for common stock of Parent (provided, for the avoidance of doubt, that the
extent to which Equity Interests, Indebtedness, securities or assets were
received in exchange for common stock of Parent shall be determined in good
faith by the Board of Directors of Worldwide or, but only if the total
consideration received is in excess of US$5,000,000, of the Parent);

(J) loans and advances to employees, officers and directors that do not
exceed the US Dollar Equivalent of $2,000,000 in the aggregate at any time
outstanding;

(K) intercompany Indebtedness permitted under SECTION 2(g)(x)(A)(3) of
this ARTICLE IV;

(L) investments in joint ventures and Subsidiaries of the Corporation
that do not exceed the US Dollar Equivalent of $10,000,000 in the aggregate
at any time outstanding;

(M) with respect to each of the fiscal years ended December 31, 2006
and 2007, investments during such fiscal year that, taken together, do not
exceed $4,000,000, in each case to the extent and at the times required by,
and made in accordance with the terms of the contracts listed as item 1 in
Schedule X to each of the Class A Preferred Stock Subscription Agreement
dated December 12, 2005, between Parent and the investors named therein, and
the Class B Preferred Stock Purchase Agreement dated December 12, 2005,
between Clear Channel and the purchasers named therein;

(N) investments, loans or advances, and purchases and acquisitions
resulting in aggregate payments, at any time in an aggregate amount not
exceeding the Remaining Excess Cash at such time;

(O) (1) Guarantees by the Corporation and any of its Subsidiaries of
obligations that do not constitute Indebtedness, in each case incurred by
any Subsidiary in the ordinary course of business, (2) Guarantees permitted
under SECTION 2(g)(x)(A)(7), 2(g)(x)(A)(9) and 2(g)(x)(A)(12) of this
ARTICLE IV, and (3) Guarantees constituting Indebtedness permitted by
SECTION 2(g)(x) of this ARTICLE IV;

(P) investments that are not permitted by any other clause of SECTION
2(g)(xiii) of this ARTICLE IV that, in the aggregate at any time
outstanding, do not exceed an amount equal to the US Dollar Equivalent of
$200,000,000, provided that immediately after giving pro forma effect to any
such investment, no Default shall have occurred and be continuing (including
any Default under SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv) of this
ARTICLE IV).

(Q) A Guarantee by a Permitted Acquisition Holding, substantially in
the form of Exhibit I to the Credit Agreement (each, a “Permitted
Acquisition Holding Guarantee”), of certain payments to which holders of the
Designated Preferred are entitled pursuant to the terms of the Designated
Preferred.

(xiv) Asset Sales. The Corporation shall not, and shall not permit any
of its Subsidiaries to, sell, transfer, lease or otherwise dispose of any asset,
including any Equity Interest owned by it, nor shall the Corporation permit any of
its Subsidiaries to issue any additional Equity Interest in itself (other than to
the Corporation or another Subsidiary of the Corporation in compliance with SECTION
2(g)(xiii) of this ARTICLE IV), except:

(A) sales of inventory, non-obsolete, used or surplus equipment and
Permitted Investments (including trades or exchanges of Permitted
Investments) in the ordinary course of business;

(B) sales, transfers and dispositions to the Corporation or a
Subsidiary of the Corporation, provided that any such sales, transfers or
dispositions shall be made in compliance with SECTION 2(g)(xviii) of this
ARTICLE IV;

(C) dispositions of assets in trade or exchange for assets of
comparable fair market value used or usable in the business of the
Corporation and its Subsidiaries;

(D) a Restricted Payment that is permitted under SECTION 2(g)(xvii) of
this ARTICLE IV and a sale and leaseback transaction that is permitted under
SECTION 2(g)(xv) of this ARTICLE IV;

(E) sales or other dispositions of obsolete assets neither used nor
useful to any business of the Corporation or any of its Subsidiaries;

(F) any lease or rental of assets entered into in the ordinary course
of business and with respect to which the Corporation or any of its
Subsidiaries is the lessor and the lessee has no option to purchase such
assets for less than fair market value at any time, provided that this
exception shall not permit the sale of such asset pursuant to such lease or
rental;

(G) the disposition of assets received in settlement of debts accrued
in the ordinary course of business;

(H) the creation or perfection of a Lien permitted under SECTION
2(g)(xi) of this ARTICLE IV;

(I) the grant in the ordinary course of business of any non-exclusive
license of patents, trademarks, registrations therefor and other similar
intellectual property;

(J) any disposition of assets pursuant to a condemnation, appropriation
or similar taking;

(K) sales and other dispositions, in one transaction or a series of
related transactions, of assets and other properties of the Corporation and
its Subsidiaries with a fair market value not exceeding the US Dollar
Equivalent of $500,000 and made in the ordinary course of business; and

(L) sales, transfers and other dispositions of assets (other than
Equity Interests in Worldwide) that are not permitted by any other clause of
SECTION 2(g)(xiv) of this ARTICLE IV, provided that the aggregate fair
market value of all Equity Interests or assets sold, transferred or
otherwise disposed of in reliance upon this clause (L) shall not exceed for
so long as any shares of Series A Preferred or Series B Preferred are
outstanding, the greater of (x) 25% of Consolidated Tangible Assets and (y)
25% of the Consolidated Tangible Assets calculated and certified for
December 31, 2006; and

(M) sales or other dispositions from and after the Restatement Date of
non-core assets listed on Schedule 6.05 to the Credit Agreement (“Designated
Assets”) so long as no Default shall have occurred and be continuing or
would result therefrom;

provided that all sales, transfers, leases and other dispositions permitted by
clauses (A), (F), (G), (K), (L) and (M) shall be made for fair market value, and at
least 75% of the consideration received with respect to each such sale, transfer,
lease and other disposition shall consist of cash, cash equivalents, Permitted
Investments, liabilities assumed by the transferee, accounts receivable retained by
the transferor or any combination of the foregoing.

(xv) Sale and Leaseback Transactions. The Corporation shall not, and
shall not permit any of its Subsidiaries to, enter into any arrangement, directly or
indirectly, whereby it shall sell or transfer any property, real or personal, used
or useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease such property or other property that it intends to use for
substantially the same purpose or purposes as the property sold or transferred,
except for any such sale of any fixed or capital assets that is made for cash
consideration in an amount not less than the cost of such fixed or capital asset and
is consummated within 180 days after the Corporation or such Subsidiary acquires or
completes the construction of such fixed or capital asset. Notwithstanding the
foregoing, each of Worldwide and its Subsidiaries may sell or transfer any
Designated Sale-Leaseback Asset, and rent or lease it back (or rent or lease other
property that it intends to use for substantially the same purpose or purposes as
the Sale-Leaseback Assets so sold or transferred), if (a) the Net Proceeds of such
sale or transfer are at least equal to fair market value (provided that in the event
such sale or transfer (or series of related sales or transfers) involves an
aggregate consideration of more than the US Dollar Equivalent of US$15,000,000,
Parent or its respective Subsidiary will obtain a written opinion from an
independent accounting or appraisal firm of nationally recognized standing
confirming that the consideration for such sale or transfer (or series of related
sales or transfers) is fair, from a financial standpoint, to Parent and its other
Subsidiaries or is not less favorable than those that might reasonably have been
obtained in a comparable sale or transfer of such property, real or personal, at
such time on an arm’s-length basis from a Person that is not an Affiliate of
Parent), (b) at least 75% of the consideration received with respect to each such
sale or transfer shall consist of cash, cash equivalents, Permitted Investments,
liabilities assumed by the transferee, accounts receivable retained by the
transferor or any combination of the foregoing, (c) in the event that such sale and
leaseback results in a Capital Lease Obligation, such Capital Lease Obligation is
permitted by SECTION 2(g)(x)(A)(4) and (d) immediately before and after giving pro
forma effect to such sale or transfer, no Default shall have occurred and be
continuing (including any Default under SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv)
of this ARTICLE IV).

(xvi) Swap Agreements. The Corporation shall not, and shall not permit
any of its Subsidiaries to, enter into any Swap Agreement, except (A) Swap
Agreements required by the Credit Agreement, (B) Swap Agreements entered into to
hedge or mitigate risks to which the Corporation or any of its Subsidiaries has
actual exposure (other than those in respect of Equity Interests of the Corporation
or any of its Subsidiaries) and (C) Swap Agreements entered into in order to
effectively cap, collar or exchange (1) interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with respect to
any interest-bearing liability or investment of the Corporation or any of its
Subsidiaries and (2) currency exchange rates, in each case in connection with the
conduct of its business and not for speculative purposes.

(xvii) Restricted Payments; Certain Payments of Indebtedness.

(A) The Corporation shall not, and shall not permit any of its
Subsidiaries to, declare or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except that (1) the Corporation may declare and pay
dividends with respect to its Equity Interests payable solely in additional
            shares of its common stock, (2) the Corporation may declare and pay
dividends with respect to its Designated Preferred, (3) the Corporation may
redeem the Designated Preferred to the extent and at the times required by,
and in accordance with, the terms of the Designated Preferred, (4) any
Subsidiary of the Corporation (except any Permitted Acquisition Holding, but
including Subsidiaries of a Permitted Acquisition Holding) may make
Restricted Payments ratably with respect to its Equity Interests, (5) the
Corporation and its Subsidiaries may make Restricted Payments at any time in
an aggregate amount not in excess of the Remaining Excess Cash at such time
and (6) the Corporation or any Subsidiary of the Corporation may make a
payment or other distribution in cash to any of Parent and its Subsidiaries
(other than the Corporation and its Subsidiaries), provided such payment or
other distribution is used within 30 days to pay any of the following items:
(I) federal, state, local, foreign and other taxes in an amount not to
exceed the sum of (a) the tax liability of the Corporation and its
Subsidiaries calculated on a stand alone basis less any such taxes directly
payable by the Corporation or any of its Subsidiaries and (b) the tax
liability of Parent and its Subsidiaries (other than the Corporation and its
Subsidiaries) resulting from any payment or other distribution made pursuant
to SECTION 2(g)(xvii)(A)(6) of this ARTICLE IV, (II) expenses relating to
being a public company, including conducting shareholder meetings, mailing
and soliciting proxies, compliance with the Exchange Act (including the
preparation of Exchange Act reports) and the Sarbanes-Oxley Act of 2002,
(III) directors and officers insurance, (IV) directors fees and expenses,
(V) expenses and Capital Expenditures associated with the operation of the
theatrical property located in New York City held by the direct parent
company of the Corporation in an amount not to exceed $2,500,000 per fiscal
year, (VI) audit fees and expenses; (VII) fees and expenses associated with
debt or equity issuances by the direct or indirect parent companies of the
Corporation to the extent in excess of cash proceeds received, (VIII) fees
and expenses associated with defending litigation and other contested
matters, (IX) any amount required to be paid by Parent to meet its
obligations under the Master Separation and Distribution Agreement,
Transition Services Agreement, Tax Matters Agreement, Employee Matters
Agreement and Trademark and Copyright License Agreement (X) fees and
expenses required to maintain corporate existence and to pay for general
corporate and overhead expenses (including salaries and other compensation
of the employees) incurred in the ordinary course of its business, which
fees and expenses for purposes of this clause (X) shall not exceed
$5,000,000 during any fiscal year and (XI) any Permitted Acquisition Holding
may make Restricted Payments to Parent, provided that the proceeds of such
Restricted Payments are immediately transferred to Worldwide; provided that
the prohibitions and limitations set forth in SECTION 2(g)(xvii) of this
ARTICLE IV shall not apply with respect to any Restricted Payment if
immediately before and after giving pro forma effect to such Restricted
Payment, (A) the Leverage Ratio would be less than 3.0 to 1.0 and (B) no
Default shall have occurred and be continuing (including any Default under
SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv) of this ARTICLE IV), and any
Restricted Payments made under the exception set forth in this proviso shall
be disregarded for purposes of determining whether any Restricted Payments
may be made under the other provisions of SECTION 2(g)(xvii) of this ARTICLE
IV when such exception is not applicable.

(B) The Corporation shall not, and shall not permit any of its
Subsidiaries to, make or agree to pay or make, directly or indirectly, any
payment or other distribution (whether in cash, securities or other
property) of or in respect of principal of or interest on any Indebtedness,
or any payment or other distribution (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination
of any Indebtedness (excluding, for the avoidance of doubt, any issuance of
common stock of Parent upon conversion of convertible debt or exchange of
exchangeable debt), except:

(1) payment of Indebtedness created under the Credit Agreement;

(2) payments as and when due in respect of any Indebtedness,
other than payments in respect of the Subordinated Indebtedness
prohibited by the subordination provisions thereof;

(3) refinancings of Indebtedness to the extent permitted by
SECTION 2(g)(x) of this ARTICLE IV; and

(4) payment of secured Indebtedness that becomes due as a result
of the voluntary sale or transfer of the property or assets securing
such Indebtedness,

provided that the prohibitions and limitations set forth in SECTION
2(g)(xvii)(B) of this ARTICLE IV shall not apply with respect to any such
payment or other distribution if immediately before and after giving pro
forma effect to such payment or other distribution, (A) the Adjusted
Leverage Ratio (as defined below) would be less than 3.0 to 1.0 and (B) no
Default shall have occurred and be continuing (including any Default under
SECTION 2(g)(xxi), (xxii), (xxiii) or (xxiv) of this ARTICLE IV). “Adjusted
Leverage Ratio” means, on any relevant date of determination, the ratio of
(a) Adjusted Total Indebtedness (as defined below) as of such date minus
Unrestricted Cash and Cash Equivalents as of such date to (b) Adjusted
Consolidated EBITDA (as defined below) for the period of four consecutive
fiscal quarters of Parent ended on such date. “Adjusted Total Indebtedness”
means Total Indebtedness, provided that (i) the aggregate principal amount
of Indebtedness of the Excluded Subsidiaries that would be reflected on a
balance sheet prepared as of such date on a consolidated basis in accordance
with GAAP and (ii) the aggregate principal amount of Indebtedness of the
Excluded Subsidiaries outstanding as of such date that is not required to be
reflected on a balance sheet in accordance with GAAP, determined on a
consolidated basis shall only be included in an amount equal to the amount
of such Indebtedness times Parent’s direct or indirect equity ownership
percentage in such Excluded Subsidiaries. “Adjusted Consolidated EBITDA”
means Consolidated EBITDA to the extent attributable to (x) Parent and its
Subsidiaries (other than Excluded Subsidiaries) and (y) in an amount not
exceeding US$45,000,000, Excluded Subsidiaries.

(xviii) Transactions with Affiliates. The Corporation shall not, and
shall not permit any of its Subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates involving consideration in excess of the US Dollar Equivalent of
$1,000,000 except, without duplication, (A) transactions in the ordinary course of
business that are at prices and on terms and conditions not less favorable to the
Corporation or such Subsidiary than could be obtained on an arm’s-length basis from
unrelated third parties, (B) transactions between or among the Corporation and any
of its Subsidiaries and not involving any other Affiliate, (C) any Restricted
Payment permitted by SECTION 2(g)(xvii) of this ARTICLE IV, (D) investments
permitted under SECTION 2(g)(xiii)(D) of this ARTICLE IV, (E) loans and advances
permitted under SECTION 2(g)(xiii)(J) of this ARTICLE IV and Guarantees permitted
under SECTION 2(g)(xiii)(O) of this ARTICLE IV, (F) the performance of employment,
equity award, equity option or equity appreciation agreements, plans or other
similar compensation or benefit plans or arrangements (including vacation plans,
health and insurance plans, deferred compensation plans and retirement or savings
plans) entered into by the Corporation or any of its Subsidiaries in the ordinary
course of its business with its employees, officers and directors (G) the
performance of any agreement in effect on the Distribution Date, including but not
limited to any agreement filed as an exhibit to the Form 10 of Clear Channel filed
in conjunction with the spin-off of Parent, as such agreements are ultimately filed
in final form with the Securities and Exchange Commission by Parent, (H) fees and
compensation to, and indemnity provided on behalf of, officers, directors, employees
and consultants of the Corporation or any of its Subsidiaries in their capacity as
such, to the extent such fees and compensation are reasonable and customary and
(I) transfers of cash and cash equivalents at any time in an aggregate amount not in
excess of the Remaining Excess Cash at such time.

(xix) Restrictive Agreements. The Corporation shall not, and shall not
permit any of its Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (A) the ability of the Corporation or any of its
Subsidiaries to create, incur or permit to exist any Lien upon any of its property
or assets to secure the obligations under the Credit Agreement, or (B) the ability
of the Corporation or any of its Subsidiaries to pay dividends or other
distributions with respect to its Equity Interests or to make or repay loans or
advances to the Corporation or any of its Subsidiaries or to Guarantee Indebtedness
of the Corporation or any of its Subsidiaries, provided that (1) the foregoing shall
not apply to restrictions and conditions that are (x) imposed by law, the Credit
Agreement or this Certificate of Incorporation or by any agreement governing
Permitted Holding Company Indebtedness (provided that the restrictions contained
therein are no more restrictive than those contained in the Credit Agreement) or
(y) imposed by any agreement or instrument relating to secured Indebtedness
permitted hereunder to the extent that such restrictions apply only to the property
or assets securing such Indebtedness (including, to the extent required under the
terms of such agreement or instrument on the date the applicable Indebtedness is
incurred, proceeds thereof and after-acquired property in respect thereof), (2) the
foregoing shall not apply to restrictions and conditions existing on the Restatement
Date (but shall apply to any extension, renewal, amendment or modification expanding
the scope of any such restriction or condition), (3) the foregoing shall not apply
to customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary of the Corporation pending such sale, as long as such
restrictions and conditions apply only to such Subsidiary that is to be sold and
such sale is permitted hereunder, (4) clause (A) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness
permitted by this Certificate of Incorporation if such restrictions or conditions
apply only to the property or assets securing such Indebtedness, (5) clause (A) of
the foregoing shall not apply to customary provisions in leases, licenses and
similar contracts restricting the assignment, encumbrance or transfer thereof and
(6) clause (A) of the foregoing shall not apply with respect to Subsidiaries that
are not wholly owned by the Corporation, if and to the extent that such restrictions
or conditions (A) were imposed prior to the acquisition of Equity Interests in such
Subsidiary by the Corporation or any other Subsidiary of the Corporation (other than
restrictions or conditions created in contemplation of or in connection with such
acquisition or such Person becoming a Subsidiary) or (B) are otherwise reasonably
satisfactory to the administrative agent under the Credit Agreement (taking into
account the relative direct and indirect equity ownership percentages of the
Corporation and third party holders of Equity Interests in such Subsidiary).

(xx) Amendment of Credit Agreement. The Corporation shall not, and
shall not permit any of its Subsidiaries to, amend, modify or waive any of its
rights under the Credit Agreement to the extent that such amendment, modification or
waiver could reasonably be expected (a) to be material and adverse to the value of
the Designated Preferred or (b) to permit Restricted Payments in excess of amounts
permitted under SECTION 2(g)(xvii) of ARTICLE IV. The foregoing will not prohibit
the amendment of the Credit Agreement pursuant to the Amended and Restated Credit
Agreement dated as of June 29, 2007 by and among Live Nation Worldwide, Inc., Live
Nation, Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the other
lenders, borrowers and agents party thereto.

(xxi) Adjusted Interest Expense Coverage Ratio. The Corporation shall
not permit the ratio of (a) Adjusted Consolidated EBITDA to (b) Consolidated Cash
Interest Expense, in each case as of the end of any period of four consecutive
fiscal quarters, to be less than 2.5 to 1.0.

(xxii) Adjusted Leverage Ratio. The Corporation shall not permit the
Adjusted Leverage Ratio as of the end of any fiscal quarter of Parent during any
period set forth below to exceed the ratio set forth opposite such period:

	 	 	 
	Period	 	Ratio
	Restatement Date through June 30, 2008

	 	4.5 to 1.0
	After June 30, 2008

	 	4.0 to 1.0

provided that at any time when an aggregate principal amount of Subordinated
Indebtedness and Permitted Holding Company Indebtedness of Parent and its
Subsidiaries in excess of the US Dollar Equivalent of $25,000,000 (determined on a
consolidated basis) is outstanding, the Corporation instead shall not permit the
Adjusted Leverage Ratio as of the end of any fiscal quarter of Parent during any
period set forth below to exceed 6.0 to 1.0.

(xxiii) Adjusted Senior Leverage Ratio. At any time when an aggregate
principal amount of Subordinated Indebtedness and Permitted Holding Company
Indebtedness of Parent and its Subsidiaries in excess of the US Dollar Equivalent of
$25,000,000 (determined on a consolidated basis) is outstanding, the Corporation
shall not permit the Adjusted Senior Leverage Ratio (as defined below) as of the end
of any fiscal quarter of Parent to exceed 4.5 to 1.0 (which ratio shall be reduced
to 4.0 to 1.0 for any fiscal quarter ending on and after April 1, 2008). “Adjusted
Senior Leverage Ratio” means, on any relevant date of determination, the ratio of
(a) Adjusted Total Senior Indebtedness (as defined below) as of such date minus
Unrestricted Cash and Cash Equivalents as of such date to (b) Adjusted Consolidated
EBITDA for the period of four consecutive fiscal quarters of Parent ended on such
date. “Adjusted Total Senior Indebtedness” means Total Senior Indebtedness other
than Permitted Holding Company Indebtedness, provided that (i) the aggregate
principal amount of Senior Indebtedness of the Excluded Subsidiaries that would be
reflected on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP and (ii) the aggregate principal amount of Senior Indebtedness
of the Excluded Subsidiaries outstanding as of such date that is not required to be
reflected on a balance sheet in accordance with GAAP, determined on a consolidated
basis shall only be included in an amount equal to the amount of such Senior
Indebtedness times Parent’s direct or indirect equity ownership percentage in such
Excluded Subsidiaries.

(xxiv) Capital Expenditures. The Corporation shall not, and shall not
permit any of its Subsidiaries to, make Capital Expenditures that would cause the US
Dollar Equivalent of the aggregate amount of all Capital Expenditures made by Parent
and its Subsidiaries in any fiscal year of the Corporation to exceed the amount of
Capital Expenditures set forth below opposite such fiscal year:

	 	 	 	 	 
	Fiscal Year Ended	 	Capital Expenditures
	December 31, 2005
	 	$	125,000,000	 
	December 31, 2006
	 	$	125,000,000	 
	December 31, 2007 and thereafter
	 	$	110,000,000	 

provided that to the extent the aggregate amount of Capital Expenditures made by
Parent and its Subsidiaries in any fiscal year pursuant to SECTION 2(g)(xxiv) of
this ARTICLE IV is less than the maximum amount of Capital Expenditures permitted by
SECTION 2(g)(xxiv) of this ARTICLE IV with respect to such fiscal year, the amount
of such difference (the “Rollover Amount”) may be carried forward and used to make
Capital Expenditures in the immediately succeeding fiscal year, provided further
that Capital Expenditures in any fiscal year shall be counted against the Rollover
Amount available with respect to such fiscal year prior to being counted against the
base amount with respect to such fiscal year and provided further that for purposes
of SECTION 2(g)(xxiv) of this ARTICLE IV, all Capital Expenditures made with Net
Proceeds that are reinvested in accordance with Section 2.11(c) of the Credit
Agreement shall be disregarded in determining Capital Expenditures made by Parent
and its Subsidiaries in any fiscal year of Parent.

(xxv) Accounting Changes. Parent shall not make any change to its
fiscal year.

(h) Additional Covenant. The Corporation shall not permit the Leverage Ratio
as of the end of any fiscal quarter of Parent to exceed 4.0 to 1.0. The sole remedy for the
failure by the Corporation to comply with the covenant of SECTION 2(h) of this ARTICLE IV
shall, unless such failure results in a separate default under SECTION 2(g)(xxiii) of this
ARTICLE IV, be to receive Designated Preferred Penalty Dividends as provided in the third
sentence of SECTION 2(b)(i) of this ARTICLE IV, and the holders of the Designated Preferred
will not be entitled to specific performance and a Default will not be deemed to occur.

(i) Status of Reacquired Shares. Shares of Designated Preferred that have been
issued and reacquired in any manner, including shares redeemed or purchased by the
Corporation pursuant to SECTION 2(d) or SECTION 2(e) of this ARTICLE IV, shall (upon
compliance with any applicable provisions of the laws of the State of Delaware) have the
status of authorized and unissued shares of the class of Preferred Stock, undesignated as to
series, and may be redesignated and reissued as part of any series of the Preferred Stock;
provided that no such issued and reacquired shares of Designated Preferred shall be reissued
or sold as shares of Series A Preferred or Series B Preferred.

(j) Adjustments. Upon the occurrence of any stock split, combination or
reclassification of, or other similar event affecting, the Series A Preferred or the
Series B Preferred, the amount of the Stated Liquidation Preference of such series, and any
other right in respect of the shares of such series that is denominated on a “per share”
basis, shall be subject to equitable adjustment.

SECTION 3. Additional Series of Preferred Stock. Subject to SECTION 2 of this ARTICLE
IV the Board of Directors is hereby authorized by resolution or resolutions to provide, out of the
unissued shares of Preferred Stock (other than shares of Preferred Stock that have been designated
herein as Series A Preferred or Series B Preferred), for one or more additional series of Preferred
Stock and, with respect to each such series, to fix the voting powers, if any, designations,
preferences and relative, participating, optional or other special rights, if any, and any
qualifications, limitations or restrictions thereof, of any such series, and to fix the number of
shares constituting such series, and to increase or decrease the number of shares of any such
series (but not below the number of shares thereof then outstanding). The authority of the Board
of Directors with respect to each such series of Preferred Stock shall include, but not be limited
to, determination of the following:

(a) the designation of the series, which may be by distinguishing number, letter or
title;

(b) the number of shares of the series, which number the Board of Directors may
thereafter increase or decrease (but not below the number of shares thereof then
outstanding);

(c) whether dividends, if any, shall be cumulative or noncumulative and the dividend
rate of the series;

(d) dates at which dividends, if any, shall be payable;

(e) the redemption rights and price or prices, if any, for shares of the series;

(f) the terms and amount of any sinking fund provided for the purchase or redemption of
            shares of the series;

(g) the amounts payable on, and the preferences, if any, of shares of the series in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs
of the Corporation;

(h) whether the shares of the series shall be convertible into shares of any other
class or series, or any other security, of the Corporation or any other entity and, if so,
the specification of such other class or series of such other security, the conversion price
or prices or rate or rates, any adjustments thereof, the date or dates at which such shares
shall be convertible and all other terms and conditions upon which such conversion may be
made;

(i) restrictions on the issuance of shares of the same series or of any other class or
series; and

(j) the voting rights, if any, of the holders of shares of the series.

SECTION 4. Common Stock. The following is a statement of the voting powers,
preferences and relative participating, optional or other special rights, and the qualifications,
limitations and restrictions of the Common Stock:

(a) Dividends. Subject to SECTION 2 of this ARTICLE IV and the provisions of
any Certificate of Designations, the holders of Common Stock shall be entitled to receive
such dividends and other distributions, in cash, stock of any entity or property of the
Corporation, when and as may be declared thereon by the Board of Directors from time to time
out of assets or funds of the Corporation legally available therefor and shall share equally
on a per share basis in all such dividends and other distributions.

(b) Voting. At every meeting of the stockholders of the Corporation, every
holder of Common Stock shall be entitled to one vote in person or by proxy for each share of
Common Stock standing in such holder’s name on the transfer books of the Corporation in
connection with the election of directors and on all other matters submitted to a vote of
stockholders of the Corporation.

(c) Payments on Dissolution. In the event of any Liquidation, after payment in
full of the amounts required to be paid to the holders of Preferred Stock pursuant to
SECTION 2(c) of this ARTICLE IV and the provisions of any Certificate of Designations, the
remaining assets and funds of the Corporation shall be distributed pro rata to the holders
of Common Stock.

SECTION 5. No Cumulative Voting. No stockholder shall be entitled to exercise any
right of cumulative voting.

ARTICLE V

CORPORATE OPPORTUNITIES AND CONFLICTS OF INTEREST

SECTION 1. Purpose. This ARTICLE V contemplates that (a) the Corporation shall not be
an indirect subsidiary of Clear Channel and that Parent is and may continue to be, directly or
indirectly, a controlling, majority or significant stockholder of the Corporation, (b) certain
Clear Channel Officials may also serve as Corporation Officials, (c) the Corporation Entities and
the Clear Channel Entities may, from time to time, (i) engage in the same, similar or related
activities or lines of business or other business activities that overlap or compete with those of
the other and (ii) have an interest in the same areas of corporate opportunities, and (d) benefits
may be derived by the Corporation Entities through their continued contractual, corporate and
business relations with the Clear Channel Entities. The provisions of this ARTICLE V shall, to the
fullest extent permitted by law, define the conduct of certain affairs of the Corporation Entities
and Corporation Officials as they may involve the Clear Channel Entities, and the powers, rights,
duties and liabilities of the Corporation Entities and Corporation Officials in connection
therewith. Capitalized terms used and not previously defined in this Certificate of Incorporation
are defined, and shall have the meaning ascribed thereto, in SECTION 1 of ARTICLE XI.

SECTION 2. Existing Transactions with Clear Channel Entities. No contract, agreement,
arrangement or transaction (or any amendment, modification or termination thereof) entered into
between any Corporation Entity, on the one hand, and any Clear Channel Entity, on the other hand,
before the Corporation ceased to be an indirect, wholly-owned Subsidiary of Clear Channel shall be
void or voidable or be considered unfair to the Corporation solely for the reason that any Clear
Channel Entity is a party thereto, or solely because any Clear Channel Official is a party thereto,
or solely because any Clear Channel Official was present at or participated in any meeting of the
Board of Directors, or committee thereof, of the Corporation, or the board of directors, or
committee thereof, of any Corporation Affiliate, that authorized the contract, agreement,
arrangement or transaction (or any amendment, modification or termination thereof), or solely
because his, her or their votes were counted for such purpose. No such contract, agreement,
arrangement or transaction (or the amendment, modification or termination thereof) or the
performance thereof by any Corporation Entity shall be considered to be contrary to any fiduciary
duty owed to any of the Corporation Entities or to any of their respective stockholders by any
Corporation Official (including any Corporation Official who may have been a Clear Channel
Official) and each such Corporation Official shall be deemed to have acted in good faith and in a
manner such person reasonably believed to be in or not opposed to the best interests of the
Corporation Entities, and shall be deemed not to have breached his or her duties of loyalty to the
Corporation Entities and their respective stockholders, and not to have derived an improper
personal benefit therefrom. No Corporation Official shall have or be under any fiduciary duty to
any Corporation Entity or any of their respective stockholders to refrain from acting on behalf of
any such Corporation Entity in respect of any such contract, agreement, arrangement or transaction
(or the amendment, modification, or termination thereof) or to refrain from performing any such
contract, agreement, arrangement or transaction (or the amendment, modification or termination
thereof) in accordance with its terms.

SECTION 3. (1) If a Corporation Official who is also a Clear Channel Official is offered, or
acquires knowledge of, a potential transaction or business opportunity that is or may be a
corporate opportunity for any Corporation Entity, the Corporation, on behalf of itself and each
Corporation Affiliate, to the fullest extent permitted by law except as provided in SECTION 3(3) of
this ARTICLE V, renounces any interest or expectancy in such potential transaction or business
opportunity and waives any claim that such potential transaction or business opportunity
constituted a corporate opportunity that should have been presented to the Corporation or any such
Corporation Affiliate.

(2) If a Corporation Official who is also a Clear Channel Official is offered, or acquires
knowledge of, a potential transaction or business opportunity that is or may be a corporate
opportunity for any Corporation Entity in any manner, such Corporation Official shall have no duty
to communicate or present such potential transaction or business opportunity to the Corporation or
any Corporation Affiliate and shall, to the fullest extent permitted by law, not be liable to any
Corporation Entity, or its stockholders, for breach of any fiduciary duty as a Corporation Official
including without limitation by reason of the fact that any one or more of the Clear Channel
Entities pursues or acquires such potential transaction or business opportunity for itself, directs
such potential transaction or business opportunity to another person or entity, or otherwise does
not communicate information regarding such potential transaction or business opportunity to the
Corporation or any Corporation Affiliate.

(3) Notwithstanding anything to the contrary in this SECTION 3 of this ARTICLE V, the
Corporation does not renounce any interest or expectancy it may have in any corporate opportunity
that is expressly offered to any Corporation Official in writing solely in his or her capacity as a
Corporation Official.

SECTION 4. No amendment or repeal of this ARTICLE V shall apply to or have any effect on the
liability or alleged liability of any Clear Channel Entity or Corporate Official for or with
respect to any corporate opportunity that such Clear Channel Entity or Corporate Official was
offered, or of which such Clear Channel Entity or Corporate Official acquired knowledge prior to
such amendment or repeal.

SECTION 5. In addition to, and notwithstanding the foregoing provisions of this ARTICLE V, a
potential transaction or business opportunity (1) that the Corporation Entities are not financially
able, contractually permitted or legally able to undertake, or (2) that is, from its nature, not in
the line of the Corporation Entities’ business, is of no practical advantage to any Corporation
Entity or that is one in which no Corporation Entity has any interest or reasonable expectancy,
shall not, in any such case, be deemed to constitute a corporate opportunity belonging to the
Corporation, or any Corporate Affiliate, and the Corporation, on behalf of itself and each
Corporation Affiliate, to the fullest extent permitted by law, hereby renounces any interest
therein.

SECTION 6. Anything in this Certificate of Incorporation to the contrary notwithstanding, the
provisions of SECTIONS 3, 4 and 5 of this ARTICLE V shall automatically terminate, expire and have
no further force and effect from and after the date on which no Corporation Official is also a
Clear Channel Official.

ARTICLE VI

BOARD OF DIRECTORS

SECTION 1. Number of Directors. Prior to the issuance of any shares of Designated
Preferred and continuing for so long as any shares of Designated Preferred are outstanding, the
number of directors of the Corporation shall be fixed at four (4); provided, however, that upon the
occurrence of an Event of Default and for so long as such Event of Default is continuing, the
number of directors of the Corporation shall be increased by one member (such member, the
“Designated Director”). From and after the time when shares of Designated Preferred are no longer
outstanding, the number of directors of the Corporation shall be fixed, and may be increased or
decreased from time to time, exclusively by resolution adopted by a majority of the entire Board of
Directors, subject to the rights of the holders of any other series of Preferred Stock to elect
directors under specified circumstances. No decrease in the number of directors shall shorten the
term of any incumbent director.

SECTION 2. Election of Directors. For so long as any shares of Designated Preferred
are outstanding:

(a) three (3) directors of the Corporation shall be elected solely by the holders of
the Common Stock, voting as a separate class, such directors being those persons receiving a
plurality of the votes cast by such holders of Common Stock;

(b) one (1) director of the Corporation shall be elected solely by the holders of the
Series A Preferred, voting as a separate class, such director being the person receiving a
majority of the votes cast by such holders of Series A Preferred, with each share of
Series A Preferred entitling the holder thereof to one (1) vote for such director; and

(c) the Designated Director, if one is to be elected, shall be elected solely by the
holders of the Series A Preferred and the Series B Preferred, voting together as a single
class, such director being the person receiving a majority of the votes cast by such holders
of Series A Preferred and Series B Preferred, with each share of Series A Preferred and each
share of Series B Preferred entitling the holder thereof to one (1) vote for such Designated
Director.

At any time when shares of Designated Preferred are no longer outstanding, subject to the
rights of the holders of any other series of Preferred Stock to elect directors under specified
circumstances, all of the directors of the Corporation shall be elected by the holders of the
capital stock of the Corporation entitled to vote in the election of directors, such directors
being those persons receiving a plurality of the votes cast by such holders of capital stock.

Unless and except to the extent that the By-Laws of the Corporation shall so require, the
election of directors of the Corporation need not be by written ballot.

SECTION 3. Term. Directors shall be elected for a term that shall expire at the next
annual meeting of the stockholders and each shall hold office until his or her successor is duly
elected and qualified or until his or her earlier death, disability, resignation or removal.
Notwithstanding the foregoing, the term of the Designated Director, if one is elected, shall expire
immediately, and without any further action on the part of the Corporation, the Board of Directors,
the Designated Director, the holders of any capital stock of the Corporation or any other person,
at such time as all Events of Default that have occurred are no longer continuing, and no successor
to such Designated Director shall thereupon be elected unless and until a subsequent Event of
Default occurs.

SECTION 4. Removal. For so long as any shares of Designated Preferred are
outstanding:

(a) any director elected solely by the holders of the Common Stock may be removed from
office at any time, with or without cause, but only by the majority vote of the holders of
Common Stock;

(b) any director elected solely by the holders of the Series A Preferred may be removed
from office at any time, with or without cause, but only by the majority vote of the holders
of Series A Preferred; and

(c) the Designated Director, if one is elected, may be removed from office at any time,
with or without cause, but only by the majority vote of the holders of Series A Preferred
and Series B Preferred, voting together, with each share of Series A Preferred and each
share of Series B Preferred entitling the holder thereof to one (1) vote.

At any time when shares of Designated Preferred are no longer outstanding, except as otherwise
provided in a Certificate of Designations, any director or the entire Board of Directors may be
removed from office at any time, with or without cause, but only by the majority vote of the
holders of the capital stock of the Corporation entitled to vote in the election of directors.

SECTION 5. Vacancies. For so long as any shares of Designated Preferred are
outstanding, any vacancy in the Board of Directors resulting from the death, disability,
resignation or removal from office of any director shall be filled by the vote of stockholders that
would have been required to remove such director pursuant to SECTION 4 of this ARTICLE VI. Any
director so chosen shall be elected for the remainder of the term of his or her predecessor or
until his or her earlier death, disability, resignation or removal.

At any time when shares of Designated Preferred are no longer outstanding, except as otherwise
provided in a Certificate of Designations, newly created directorships resulting from any increase
in the authorized number of directors or any vacancies in the Board of Directors resulting from the
death, disability, resignation or removal from office of any director shall be filled solely by the
affirmative vote of a majority of the remaining directors then in office, even though less than a
quorum of the Board of Directors, or by the sole remaining director. Any director so chosen shall
be elected for a term that shall expire at the next annual meeting of the stockholders and shall
hold office until his or her successor is duly elected and qualified or until his or her earlier
death, disability, resignation or removal.

ARTICLE VII

BY-LAWS

In furtherance and not in limitation of the powers conferred by law, the Board of Directors is
expressly authorized and empowered to adopt, amend and repeal the By-Laws of the Corporation at any
regular or special meeting of the Board of Directors or by written consent, subject to the power of
the stockholders of the Corporation to adopt, amend or repeal any By-Laws. Notwithstanding any
other provision of this Certificate of Incorporation or any provision of law that might otherwise
permit a lesser vote or no vote, but in addition to any affirmative vote of the holders of any
series of Preferred Stock required by law, by this Certificate of Incorporation or by a Certificate
of Designations, the affirmative vote of the holders of a majority of the total voting power of the
Voting Stock, voting together as a single class, shall be required for the stockholders of the
Corporation to alter, amend or repeal any provision of the By-Laws, or to adopt any new By-Law.

ARTICLE VIII

AMENDMENT OF CERTIFICATE OF INCORPORATION

The Corporation reserves the right at any time from time to time to amend, alter, change or
repeal any provision contained in this Certificate of Incorporation, and any other provisions
authorized by the laws of the State of Delaware at the time in force may be added or inserted, in
the manner now or hereafter prescribed by law. All rights, preferences and privileges of
whatsoever nature conferred upon stockholders, directors or any other persons or entities
whomsoever by and pursuant to this Certificate of Incorporation in its present form or as hereafter
amended are granted subject to the right reserved in this ARTICLE VIII. Notwithstanding any other
provision of this Certificate of Incorporation or any provision of law that might otherwise permit
a lesser vote or no vote, but in addition to any affirmative vote of the holders of any series of
Preferred Stock required by law, by this Certificate of Incorporation or by a Certificate of
Designations, the affirmative vote of a majority of the total voting power of the Voting Stock,
voting together as a single class, shall be required to amend, alter, change or repeal any
provision of this Certificate of Incorporation, or to adopt any new provision of this Certificate
of Incorporation.

To the extent that the lenders under the Credit Agreement (other than any lender that is
Parent, the Corporation or any of their respective Affiliates or Subsidiaries) agree to a waiver,
consent, supplement, amendment or other modification to any covenant (it being agreed that in
determining whether such waiver, consent, supplement, amendment or other modification shall satisfy
the requirements of this paragraph, such waiver, consent, supplement, amendment or other
modification shall only be applicable if it would have been effective without the vote of all
lenders of the type described in the first parenthetical of this paragraph) in the Credit Agreement
that corresponds to a covenant set forth in SECTION 2(g) of ARTICLE IV (but only to the extent such
covenant corresponds to a covenant set forth in SECTION 2(g) of ARTICLE IV (it being acknowledged
that there are differences between the Credit Agreement and SECTION 2(g) of ARTICLE IV to which
this paragraph shall not apply)), the holders of Designated Preferred will be deemed to have
consented and agreed to such waiver, consent, supplement, amendment or other modification and shall
be deemed to have voted their Designated Preferred to effect such waiver, consent, supplement,
amendment or other modification unless such waiver, consent, supplement, amendment or other
modification could reasonably be expected (a) to be material and adverse to the value of the
Designated Preferred or restrict any payments to the Designated Preferred, (b) to permit
(i) Restricted Payments in excess of amounts permitted under SECTION 2(g)(xvii) of ARTICLE IV,
(ii) transactions with Affiliates prohibited under SECTION 2(g)(xviii) of ARTICLE IV as in effect
on the Distribution Date, (iii) investments in any Person other than the Corporation or a
Subsidiary of the Corporation prohibited by SECTION 2(g)(xiii)(D) of ARTICLE IV as in effect on the
Distribution Date and (iv) Indebtedness owing to Parent or any of its Subsidiaries in excess of
amounts permitted under SECTION 2(g)(x)(A)(3) of ARTICLE IV as in effect on the Distribution Date;
provided, however, that such waiver, consent, supplement, amendment or other modification shall not
be effective until an equivalent amount of any fees or other amounts paid (calculated based on the
percentage of the principal amount of the loan to which such fee or other amount relates) to the
lender or lenders under the Credit Agreement for the granting by such lender or lenders of any such
waiver, consent, supplement, amendment or other modification (the “Modification Fees”) shall be
paid on a pro rata basis (based on liquidation preferences calculated pursuant to SECTION 2(c)(i)
of ARTICLE IV) to the holders of the Designated Preferred. As a condition to receiving any such
Modification Fees, the holders of the Designated Preferred shall provide written consent reasonably
requested by the Corporation, and reasonably satisfactory in form and substance to the holders of
the Designated Preferred, required to effect a formal amendment to this Certificate of
Incorporation to reflect any such waiver, consent, supplement, amendment or other modification.
Until such time as this Certificate of Incorporation has been formally amended, to the extent that
the holders of Designated Preferred are required hereunder to provide their consent, this
Certificate of Incorporation shall be deemed to be amended mutatis mutandis.

ARTICLE IX

LIMITATIONS ON LIABILITY AND INDEMNIFICATION

OF DIRECTORS AND OFFICERS

SECTION 1. Elimination of Certain Liability of Directors. A director of the
Corporation shall not be personally liable to the Corporation, or its stockholders, for monetary
damages for breach of fiduciary duty as a director, except to the extent such exemption from
liability or limitation thereof is not permitted under the General Corporation Law of the State of
Delaware as the same exists at the time of the alleged breach.

Any repeal or modification of the foregoing paragraph shall not adversely affect any right or
protection of a director of the Corporation existing hereunder with respect to any act or omission
occurring prior to such repeal or modification.

SECTION 2. Indemnification and Insurance.

(a) Right to Indemnification. Each person who was or is made a party or is
threatened to be made a party to or is involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of
the fact that he or she, or a person of whom he or she is the legal representative, is or
was a director or officer of the Corporation, or while a director or officer of the
Corporation is or was serving, at the request of the Corporation, as a director, officer,
employee or agent of another corporation or of a partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans maintained or sponsored
by the Corporation, whether the basis of such proceeding is alleged action in an official
capacity as a director, officer, employee or agent or in any other capacity while serving as
a director or officer, employee or agent, shall be indemnified and held harmless by the
Corporation to the fullest extent authorized by the General Corporation Law of the State of
Delaware, as the same exists or may hereafter be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Corporation to provide broader
indemnification rights than said law permitted the Corporation to provide prior to such
amendment), against all expense, liability and loss (including attorneys’ fees, judgments,
fines, amounts paid or to be paid in settlement, and excise taxes or penalties arising under
the Employee Retirement Income Security Act of 1974) reasonably incurred or suffered by such
person in connection therewith and such indemnification shall continue as to a person who
has ceased to be a director, officer, employee or agent and shall inure to the benefit of
his or her heirs, executors and administrators; provided, however, that the Corporation
shall indemnify any such person seeking indemnification in connection with a proceeding (or
part thereof) initiated by such person only if such proceeding (or part thereof) was
authorized by the Board of Directors. The right to indemnification conferred in SECTION 2
of this ARTICLE IX shall be a contract right. The Corporation may, by action of the Board
of Directors, provide indemnification to employees and agents of the Corporation with the
same scope and effect as the foregoing indemnification of director and officers.

(b) Non-Exclusivity of Rights. The right to indemnification conferred in
SECTION 2 of this ARTICLE IX shall not be exclusive of any other right that any person may
have or hereafter acquire under any statute, provision of this Certificate of Incorporation,
By-Law, agreement, vote of stockholders or disinterested directors or otherwise.

(c) Insurance. The Corporation may maintain insurance, at its expense, to
protect itself and any director, officer, employee or agent of the Corporation or another
corporation, partnership, joint venture, trust or other enterprise against any such expense,
liability or loss, whether or not the Corporation would have the power to indemnify such
person against such expense, liability or loss under the General Corporation Law of the
State of Delaware.

ARTICLE X

STOCKHOLDER ACTION

SECTION 1. Action By Written Consent. Any action required or permitted to be taken by
stockholders at any annual or special meeting of stockholders may be taken without a meeting,
without prior notice and without a vote, if a consent or consents in writing, setting forth the
action so taken, shall be signed by the holders of outstanding capital stock having not less than
the minimum number of votes that would be necessary to authorize or take such action at a meeting
at which all shares of capital stock entitled to vote thereon were present and voted.

SECTION 2. Special Meetings of Stockholders. Except as otherwise required by law or a
Certificate of Designations, special meetings of stockholders of the Corporation may be called only
by (1) Holdco #1, or such other holder of all of the outstanding Common Stock of the Corporation,
so long as Parent or a Live Nation Affiliate is the beneficial owner of at least a majority of the
total voting power of the Voting Stock, (2) the Chairman of the Board of Directors or the Board of
Directors pursuant to a resolution approved by a majority of the entire Board of Directors or
(3) in the manner specified, and on the conditions set forth, in SECTION 3 of this ARTICLE X. Any
other power of stockholders to call a special meeting of stockholders is specifically denied. No
business other than that stated in the notice of a special meeting of stockholders shall be
transacted at such special meeting.

SECTION 3. Special Meeting Called Upon a Default. Within five days following the
occurrence of a Default that is not cured or waived within such five day period, the Secretary
shall call a special meeting of stockholders by providing written notice thereof in accordance with
the By-Laws of the Corporation to each record holder of Designated Preferred. Such meeting shall
be held not less than fifteen days nor more than 50 days after the date of such Default. If the
Secretary does not mail or cause to be mailed notice of such meeting as provided above within 20
days after such Default, a special meeting of stockholders may be called by any holder of
Designated Preferred by giving the notice described above, and for that purpose shall have access
to the Corporation’s stock books. The date of such Default shall be the record date for
determining the holders of stock entitled to notice of and to vote at such special meeting.

ARTICLE XI

INTERPRETIVE PROVISIONS

SECTION 1. Certain Definitions. For purposes of this Certificate of Incorporation:

(a) The term “Academy Music Group” shall mean AMG and its subsidiaries.

(b) The term “Affiliate” shall mean, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is Controlled
by or is under common Control with the Person specified.

(c) The term “AMG” shall mean Electric Trading Limited, a company incorporated in
England and Wales.

(d) The term “AMG Credit Documents” shall mean the Senior Sterling Term and Revolving
Facilities Agreement between AMG, Lloyds TSB Bank plc and the other parties thereto, dated
August 27, 2004; the Supplemental Agreement between Electricland Limited and Lloyds TSB Bank
plc, dated September 19, 2006, relating to such Senior Sterling Term and Revolving
Facilities Agreement, and the Mezzanine Facility Agreement between AMG, Lloyds TSB Bank plc
and the other parties thereto, dated August 27, 2004.

(e) The terms “beneficial owner” and “beneficial ownership” shall have the meaning
ascribed to such terms in Rule 13d-3 and Rule 13d-5 under the Exchange Act, and shall be
determined in accordance with such rule.

(f) The term “Capital Expenditures” shall mean, for any period, (i) the additions to
property, plant and equipment and other capital expenditures of Parent and its consolidated
Subsidiaries that are (or should be) set forth in a consolidated statement of cash flows of
Parent for such period prepared in accordance with GAAP and (ii) Capital Lease Obligations
incurred by Parent and its consolidated Subsidiaries during such period. The following items
will be excluded from the definition of Capital Expenditure: (a) expenditures to the extent
funded by insurance proceeds, condemnation awards or payments pursuant to a deed in lieu
thereof, (b) expenditures to the extent made through barter transactions and (c) non-cash
capital expenditures required to be booked in accordance with GAAP.

(g) The term “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement conveying the
right to use) real or personal property, or a combination thereof, which obligations are
required to be classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and the amount of such obligations shall be the capitalized amount
thereof determined in accordance with GAAP.

(h) The term “Certificate of Designations” shall mean the resolution or resolutions
adopted by the Board of Directors pursuant to SECTION 3 of ARTICLE IV designating the
rights, powers and preferences of any series of Preferred Stock (other than the Series A
Preferred and the Series B Preferred) and the Certificate of Designations filed by the
Corporation with respect thereto.

(i) The term “Change of Control” shall mean (a) the acquisition of ownership, directly
or indirectly, beneficially, by any Person or group (within the meaning of the Exchange Act
and the rules and regulations promulgated thereunder but excluding any employee benefit plan
of such Person or its subsidiaries, and any Person acting in its capacity as trustee, agent
or other fiduciary or administrator of such plan), of securities representing more than 35%
of the aggregate ordinary voting power represented by the issued and outstanding securities
of Parent; (b) if, during any period of up to 12 consecutive months, commencing on the
Distribution Date, individuals who at the beginning of such period (together with any new
directors whose election or whose nomination for election by the stockholders was approved
by a vote of 66-2/3% of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination was previously so approved) were
directors of Parent shall cease for any reason to constitute a majority of the Board of
Directors of Parent; (c) any other event that constitutes a “change of control” or similar
event with respect to any Holding Company, however denominated, under any other agreement or
instrument evidencing or governing any Material Indebtedness of Parent or any of its
Subsidiaries or Permitted Holding Company Indebtedness or (d) Parent ceasing to own directly
or indirectly all of the capital stock of the Corporation other than the Designated
Preferred; provided, however, that the spin-off of Parent by Clear Channel as contemplated
by the Form 10 of Clear Channel filed with the Securities and Exchange Commission shall not
be deemed to be a Change of Control hereunder.

(j) The term “Clear Channel” shall mean Clear Channel Communications, Inc., a Texas
corporation.

(k) The term “Clear Channel Affiliate” shall mean, other than the Corporation or any
Corporation Affiliate, (i) any corporation, partnership, joint venture, association or other
entity of which Clear Channel is the beneficial owner (directly or indirectly) of 20% or
more of the outstanding voting stock, voting power, partnership interests or similar voting
interests, or (ii) any other corporation, partnership, joint venture, association or other
entity that is controlled by Clear Channel, controls Clear Channel or is under common
control with Clear Channel.

(l) The term “Clear Channel Entity” shall mean any one or more of Clear Channel and the
Clear Channel Affiliates.

(m) The term “Clear Channel Official” shall mean each person who is a director or an
officer (or both) of one or more Clear Channel Entities.

(n) The term “Consolidated Cash Interest Expense” shall mean for any period, the excess
of (i) the sum of (A) the interest expense (including imputed interest expense in respect of
Capital Lease Obligations) of Parent and its Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP, plus (B) any interest accrued during such period
in respect of Indebtedness of Parent or any of its Subsidiaries that is required to be
capitalized rather than included in consolidated interest expense for such period in
accordance with GAAP, plus (C) any cash payments made during such period in respect of
obligations referred to in clause (ii)(B) below that were amortized or accrued in a previous
period, plus (D) the aggregate amount of all restricted payments made pursuant to the Credit
Agreement (other than Restricted Payments made pursuant to SECTION 2(g)(xvii)(A)(3),
2(g)(xvii)(A)(5) or 2(g)(xvii)(A)(6) of ARTICLE IV) by the Corporation or its direct parent
company to Persons other than the Corporation or such direct parent company during such
period minus (ii) the sum of (A) to the extent included in such consolidated interest
expense for such period, non-cash amounts attributable to amortization of financing costs
paid in a previous period, plus (B) to the extent included in such consolidated interest
expense for such period, non-cash amounts attributable to amortization of debt discounts or
accrued interest payable in kind for such period, provided that Consolidated Cash Interest
Expense with respect to any period shall be determined after giving pro forma effect to all
acquisitions, investments, sales, dispositions, mergers, incurrences of Indebtedness or
similar events (including, as applicable, the application of the proceeds therefrom) during
such period.

(o) The term “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income
for such period plus (i) without duplication and to the extent deducted in
determining such Consolidated Net Income, the sum of (A) consolidated interest expense for
such period, (B) consolidated income tax expense for such period, (C) all amounts
attributable to depreciation and amortization for such period, (D) any extraordinary charges
or losses for such period, and (E) the one-time adjustments with respect to the fiscal
quarters ended March 31, 2005, September 30, 2005 and December 31, 2005 that are set forth
as Item 2 on Schedule X to each of the Class A Preferred Stock Subscription Agreement dated
December 12, 2005, between Parent and the investors named therein, and the Class B Preferred
Stock Purchase Agreement dated December 12, 2005, between Clear Channel and the purchasers
named therein, minus (ii) without duplication and to the extent included in
determining such Consolidated Net Income, any extraordinary gains for such period, all
determined on a consolidated basis in accordance with GAAP and after giving pro forma effect
to all acquisitions, investments, sales, dispositions, mergers, incurrences of Indebtedness
or similar events (including, as applicable, the application of the proceeds therefrom)
during such period.

(p) The term “Consolidated Net Income” shall mean, for any period, the net income or
loss of Parent and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP (adjusted to reflect any charge, tax or expense incurred or accrued by
Parent during such period as though such charge, tax or expense had been incurred by Parent,
to the extent that Parent has made or would be entitled under the Credit Agreement to make
any payment to or for the account of Parent in respect thereof) and after giving pro forma
effect to all acquisitions, investments, sales, dispositions, mergers, incurrences of
Indebtedness or similar events (including, as applicable, the application of the proceeds
therefrom) during such period, provided that, to the extent not included therein, the
foregoing shall include the income of any Person (other than any Subsidiary of Parent) in
which any other Person (other than any other Subsidiary of Parent or any director holding
qualifying shares in compliance with applicable law) owns an Equity Interest, to the extent
of the amount of dividends or other distributions actually paid to Parent or any of its
Subsidiaries during such period.

(q) The term “Consolidated Revenues” shall mean, with respect to Parent, any Subsidiary
or any group of Subsidiaries for any period, the revenues of Parent, such Subsidiary or such
group of Subsidiaries for such period determined on a consolidated basis in accordance with
GAAP excluding any revenues attributable to Permitted Acquisition Subsidiaries.

(r) The term “Consolidated Tangible Assets” shall mean, at any time, the value of the
tangible assets of Parent and its Subsidiaries determined on a consolidated basis in
accordance with GAAP, as set forth in the most recent Financial Officer’s certificate
delivered pursuant to SECTION 2(g)(i) of ARTICLE IV.

(s) The term “Control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies, or the dismissal or appointment
of the management, of a Person, whether through the ability to exercise voting power, by
contract or otherwise. The terms “Controlling” and “Controlled” have meanings correlative
thereto.

(t) The term “corporate opportunity” shall include, but not be limited to, business
opportunities that (i) the Corporation or any Corporation Affiliate is financially able to
undertake, (ii) are, from their nature, in the line of the Corporation’s or any Corporation
Affiliate’s business, and (iii) are of practical advantage to the Corporation or any
Corporation Affiliate and ones in which the Corporation or any Corporation Affiliate, but
for the provisions of ARTICLE V, would have an interest or a reasonable expectancy.

(u) The term “Corporation Affiliate” shall mean (i) any corporation, partnership, joint
venture, association or other entity of which the Corporation is the beneficial owner
(directly or indirectly) of 20% or more of the outstanding voting stock, voting power,
partnership interests or similar voting interests or (ii) any other corporation,
partnership, joint venture, association or other entity that is controlled by the
Corporation,

(v) The term “Corporation Entity” shall mean any one or more of the Corporation and the
Corporation Affiliates.

(w) The term “Corporation Official” shall mean each person who is a director or an
officer (or both) of the Corporation and/or one or more Corporation Affiliates.

(x) The term “Credit Agreement” shall mean that certain Credit Agreement, to be dated
as of December 21, 2005, by and among Parent, Worldwide, the guarantors party thereto, and
initially providing for up to $575.0 million of revolving credit and term loan borrowings,
including any related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended, restated, modified, renewed,
refunded, replaced (whether upon or after termination or otherwise) or refinanced (including
by means of sales of debt securities to institutional investors) in whole or in part from
time to time (and for the avoidance of doubt, the term “Credit Agreement” includes the term
Loan Documents, as defined in the Credit Agreement).

(y) The term “Default” shall mean any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or waived, become an
Event of Default.

(z) The term “Designated Asset” has the meaning set forth in SECTION 2(g)(xiv)(M) of
ARTICLE IV.

(aa) The term “Designated Sale-Leaseback Assets” means the assets listed in Schedule
6.06 to the Credit Agreement.

(bb) The term “Distribution Date” shall mean December 21, 2005.

(cc) The term “Effective Date Excess Cash” shall mean the amount, if any, by which the
US Dollar Equivalent or the aggregate amount of consolidated cash and cash equivalents of
Parent and its Subsidiaries on the effective date of the original Credit Agreement (the
“Effective Date”) exceeded $150,000,000 provided that the Effective Date Excess Cash shall
not exceed $125,000,000.

(dd) The term “Equity Interests” shall mean shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants, options or other
rights entitling the holder thereof to purchase or acquire any such equity interest (but,
for the avoidance of doubt, not including Indebtedness convertible or exchangeable into
common stock of Parent).

(ee) The term “ERISA Affiliate” means any trade or business (whether or not
incorporated) that, together with the Corporation, is treated as a single employer under
Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

(ff) The term “ERISA Event” means (a) any “reportable event”, as defined in Section
4043 of the Employee Retirement Income Security Act of 1974, as amended from time to time
(“ERISA”), or the regulations issued thereunder with respect to a Plan (other than an event
for which the 30-day notice period is waived); (b) the existence with respect to any Plan of
an “accumulated funding deficiency” (as defined in Section 412 of the Internal Revenue Code
of 1986, as amended from time to time (the “Code”), or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any Plan;
(d) the incurrence by the Corporation or any ERISA Affiliate of any liability under Title IV
of ERISA with respect to the termination of any Plan; (e) the receipt by the Corporation or
any ERISA Affiliate from the Pension Benefit Guaranty Corporation referred to and defined in
ERISA and any successor entity performing similar functions (the “PBGC”) or a plan
administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Corporation or any ERISA
Affiliate of any liability with respect to the withdrawal or partial withdrawal from any
Plan or multiemployer plan as defined in Section 4001(a)(3) of ERISA (“Multiemployer Plan”);
or (g) the receipt by the Corporation or any ERISA Affiliate of any notice, or the receipt
by any Multiemployer Plan from the Corporation or any ERISA Affiliate of any notice,
concerning the imposition of liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA, or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

(gg) The term “Event of Default” shall mean (i) the failure of the Corporation to pay
in cash any Designated Preferred Dividends or Designated Preferred Penalty Dividends within
10 business days of the Dividend Payment Date pursuant to SECTION 2(b) of ARTICLE IV
(whether or not such payment is authorized or permitted); (ii) the failure of the
Corporation to redeem all of the shares of Designated Preferred on the Mandatory Redemption
Date or to pay the full redemption price payable with respect to each such share in cash
within ten business days of the surrender to the Corporation of the certificate for such
            shares, all in accordance with SECTION 2(d) of ARTICLE IV (whether or not such payment is
authorized or permitted); (iii) the failure of the Corporation to make a Repurchase Offer
with respect to, or to consummate the purchase in cash of any, shares of Designated
Preferred when required pursuant to SECTION 2(e) of ARTICLE IV (whether or not such payment
is authorized or permitted); (iv) the failure of the Corporation to comply with any other
covenant or provision of SECTION 2 of ARTICLE IV (other than SECTION 2(h) of ARTICLE IV),
ARTICLE VI, ARTICLE VIII or SECTION 3 of ARTICLE X and the continuation of such failure for
at least 60 consecutive days; or (v) the acceleration of any Indebtedness of the Corporation
or any of its Subsidiaries, which Indebtedness is in an aggregate outstanding principal
amount exceeding $10.0 million prior to its stated maturity resulting from a default under
any mortgage, indenture or instrument under which such Indebtedness was issued or by which
such Indebtedness is evidenced or secured, but excluding any Indebtedness permitted by
SECTION 2(g)(x)(A)(8)(B). An Event of Default that has occurred shall be deemed to be no
longer continuing at such time as (A) the Corporation has cured such Event of Default to the
extent such Event of Default can be cured, (B) such Event of Default has been waived in
writing by the holders of a majority of the shares of Series A Preferred and the holders of
a majority of the shares of Series B Preferred for Events of Default other than those
specified in clauses (i), (ii) or (iii) of SECTION 1(gg) of this ARTICLE XI, (C) such Event
of Default has been waived in writing by the holders of 72.5% of the shares of Series A
Preferred and the holders of 72.5% of the shares of Series B Preferred for Events of Default
specified in clauses (i), (ii) or (iii) of SECTION 1(gg) of this ARTICLE XI, or (D) the
circumstances constituting such Event of Default no longer exist.

(hh) The term “Excluded Acquisition” shall mean any purchase or other acquisition, in
one transaction or a series of related transactions, of assets, properties and/or Equity
Interests with an aggregate fair market value not exceeding $2,500,000 (or the US Dollar
Equivalent thereof).

(ii) The term “Excluded Subsidiary” shall mean any Subsidiary of the Corporation that
is not an obligor of the obligations under the Credit Agreement.

(jj) The term “Financial Officer” shall mean the chief financial officer, principal
accounting officer, treasurer or controller of Parent or the Corporation.

(kk) The term “Foreign Subsidiary” shall mean any Subsidiary of the Corporation that is
not organized under the laws of the United States of America or any State thereof or the
District of Columbia.

(ll) The term “GAAP” shall mean generally accepted accounting principles in the United
States of America.

(mm) The term “Governmental Authority” shall mean the government of the United States
of America, any other nation or any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government.

(nn) The term “Guarantee” of or by any Person (the “guarantor”) means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other obligation or to
purchase (or to advance or supply funds for the purchase of) any security for the payment
thereof, (ii) to purchase or lease property, securities or services for the purpose of
assuring the owner of such Indebtedness or other obligation of the payment thereof
(including pursuant to any “synthetic lease” financing), (iii) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or
(iv) as an account party in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation, provided that the term “Guarantee” shall not
include endorsements for collection or deposit in the ordinary course of business.

(oo) The term “Holdco #1” shall mean Live Nation Holdco #1, Inc. (f/k/a CCE Holdco #1),
a Delaware corporation.

(pp) The term “Holding Companies” shall mean Parent, Holdco #1 and the Corporation.

(qq) The term “Indebtedness” of any Person means, without duplication, the following:

(i) all obligations of such Person for borrowed money or with respect to
deposits or advances of any kind made to such Person,

(ii) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments,

(iii) all obligations of such Person which customarily bear interest
irrespective of whether a default has occurred,

(iv) all obligations of such Person under conditional sale or other title
retention agreements (other than customary reservations or retentions of title under
supply agreements entered into in the ordinary course of business) relating to
property acquired by such Person,

(v) all obligations of such Person in respect of the deferred purchase price of
property or services (excluding trade accounts payable incurred in the ordinary
course of business to the extent not more than 90 days overdue),

(vi) all obligations of others of the type referred to in clauses (i) through
(v) and (vii) through (xi) of this definition secured by (or for which the holder of
such obligations has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not such
obligations secured thereby have been assumed,

(vii) all Guarantees by such Person of obligations of others of the type
referred to in clauses (i) through (vi) and (viii) through (xi) of this definition,

(viii) all Capital Lease Obligations of such Person,

(ix) all obligations, contingent or otherwise, of such Person as an account
party in respect of letters of credit and letters of guaranty,

(x) all obligations of such Person with respect to any Swap Agreement and

(xi) all obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances.

The Indebtedness of any Person shall include the Indebtedness of any other entity (including
any partnership in which such Person is a general partner) to the extent such Person is
liable therefor as a result of such Person’s ownership interest in or other relationship
with such entity, except to the extent the terms of such Indebtedness provide that such
Person is not liable therefor.

(rr) The term “Leverage Ratio” shall mean, on any relevant date of determination, the
ratio of (i) Total Indebtedness as of such date minus Unrestricted Cash and Cash Equivalents
as of such date to (ii) Consolidated EBITDA for the period of four consecutive fiscal
quarters of Parent ended on such date.

(ss) The term “Lien” shall mean, with respect to any asset, (i) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (ii) the interest of a vendor or a lessor under any conditional sale agreement,
capital lease or title retention agreement (or any financing lease having substantially the
same economic effect as any of the foregoing) relating to such asset and (iii) in the case
of securities, any purchase option, call or similar right of a third party with respect to
such securities.

(tt) The term “Liquidation” shall mean any liquidation, dissolution or winding-up of
the Corporation, whether voluntary or involuntary; provided, however, that in no event shall
the voluntary sale, conveyance, lease, license, exchange or transfer (for cash, shares of
stock, securities or other consideration) of all or substantially all of the property or
assets of the Corporation or a consolidation or merger of the Corporation with or into one
or more other entities (whether or not the Corporation is the entity surviving such
consolidation or merger) be deemed to be a Liquidation unless such sale, conveyance,
exchange or transfer occurs in connection with the liquidation, dissolution or winding-up of
the Corporation.

(uu) The term “Live Nation Affiliate” shall mean (i) any corporation, partnership,
joint venture, association or other entity of which Parent is the beneficial owner (directly
or indirectly) of 20% or more of the outstanding voting stock, voting power, partnership
interests or similar voting interests, or (ii) any other corporation, partnership, joint
venture, association or other entity that is controlled by Parent, controls Parent or is
under common control with Parent.

(vv) The term “Material Adverse Effect” shall mean a material adverse effect on (i) the
business, assets, operations, properties, condition (financial or otherwise), liabilities
(including contingent liabilities), material agreements or prospects of Parent and its
Subsidiaries, taken as a whole, (ii) the ability of the Corporation to perform any of its
obligations under this Certificate of Incorporation and (iii) the rights or remedies
available to the holders of the Designated Preferred under this Certificate of
Incorporation.

(ww) The term “Material Indebtedness” shall mean (without duplication) Indebtedness, or
obligations in respect of one or more Swap Agreements, of any one or more of Parent and its
Subsidiaries in an aggregate outstanding principal amount exceeding $10,000,000 determined
on a consolidated basis. For purposes of determining Material Indebtedness in respect of
any Swap Agreement, the “amount” of the outstanding principal amount of the obligations of
Parent or any of its Subsidiaries in respect of such Swap Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that Parent or such
Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
Notwithstanding the foregoing, for as long as AMG is a Subsidiary and Parent holds directly
or indirectly not more than 50% of the Equity Interests in AMG (or any other entity of the
Academy Music Group), Indebtedness incurred by any entity of the Academy Music Group under
the AMG Credit Documents and any additional Indebtedness incurred by any entity of the
Academy Music Group in an aggregate amount the US Dollar Equivalent of which does not exceed
US$10,000,000 shall in no event constitute Material Indebtedness.

(xx) The term “Net Proceeds” shall mean, with respect to any event (a) the cash
proceeds received in respect of such event including (i) any cash received in respect of any
non-cash proceeds, but only as and when received, (ii) in the case of a casualty, insurance
proceeds, and (iii) in the case of a condemnation or similar event, condemnation awards and
similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses
paid by Parent and its Subsidiaries to third parties (other than Parent and its
Subsidiaries) in connection with such event, (ii) in the case of a sale, transfer or other
disposition of an asset (including pursuant to a sale and leaseback transaction or a
casualty or a condemnation or similar proceeding), the amount of all payments and
distributions required to be made by Parent and its Subsidiaries as a result of such event
(x) to repay Indebtedness secured by such asset or (y) in respect of or on account of Equity
Interests held by third parties and (iii) the amount of all taxes paid (or reasonably
estimated to be payable) by Parent and its Subsidiaries, and the amount of any reserves
established by Parent and its Subsidiaries to fund contingent liabilities reasonably
estimated to be payable, in each case during the year that such event occurred or the next
succeeding year and that are directly attributable to such event (as determined reasonably
and in good faith by a Financial Officer).

(yy) The term “Parent” shall mean (i) Live Nation, Inc. (f/k/a CCE Spinco, Inc.), a
Delaware corporation, and (ii) for the purposes of SECTION 2(g) of ARTICLE IV if Parent
ceases to be the direct or indirect beneficial owner of a majority in voting power of the
Voting Stock of the Corporation, shall mean the Corporation.

(zz) The term “Permitted Acquisition” has the meaning set forth in SECTION 2(g)(xiii)
of ARTICLE IV.

(aaa) “Permitted Acquisition Holding” shall mean a direct, wholly owned domestic
Subsidiary of Parent that is formed for the purpose of making one or more acquisitions that
are, in each case, Tax-Free Reorganizations.

(bbb) “Permitted Acquisition Holding Guarantee” has the meaning set forth in Section
2(g)(xiii)(Q) of ARTICLE IV.

(ccc) The term “Permitted Deposits” shall mean, with respect to Parent or its
Subsidiaries, cash or cash equivalents (and all accounts and other depositary arrangements
with respect thereto) securing customary obligations of such Person that are incurred in the
ordinary course of business in connection with promoting or producing live entertainment
events.

(ddd) The term “Permitted Encumbrances” shall mean:

(i) Liens imposed by law for taxes, assessments, governmental charges, levies
or claims that are not yet delinquent or are being contested in compliance with
SECTION 2(g)(iv) of ARTICLE IV;

(ii) carriers’, warehousemen’s, mechanics’, laborers’, materialmen’s,
repairmen’s, vendors’ and other like Liens imposed by law, arising in the ordinary
course of business and securing obligations that are not overdue by more than 30
days or are being contested in compliance with SECTION 2(g)(iv) of ARTICLE IV;

(iii) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations;

(iv) Permitted Deposits and deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary course of
business;

(v) awards or judgment liens in respect of awards or judgments, to the extent
not resulting in an Event of Default (as defined in the Credit Agreement);

(vi) easements, zoning restrictions, rights-of-way and similar encumbrances on
real property imposed by law or arising in the ordinary course of business that do
not secure any monetary obligations and do not materially detract from the value of
the affected property or interfere with the ordinary conduct of business of the
Corporation or any of its Subsidiaries;

(vii) Liens created by lease agreements in respect of the leasehold interests
leased by the Corporation or any of its Subsidiaries thereunder to secure the
payments of rental amounts and other sums not yet due thereunder; and

(viii) Liens on leasehold interests of the Corporation or any of its
Subsidiaries created by the lessor in favor of any mortgagee of the leased premises,

provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

(eee) The term “Permitted Holding Company Indebtedness” means unsecured Indebtedness of
the Corporation or any Holding Company issued under an indenture or other agreement that (a)
matures on or after the date that is one year after the maturity date of the term loan
under the Credit Agreement and (b) may include a conversion or exchange feature converting
or exchanging such Permitted Holding Company Indebtedness into Parent common stock, provided
that, if such a conversion or exchange feature is included, (i) the issuer of such Permitted
Holding Company Indebtedness may elect, only after the maturity date of the term loan under
the Credit Agreement, to pay not more than 100% of the principal amount of such Permitted
Holding Company Indebtedness in full or partial satisfaction of its obligation to deliver
Parent common stock following such conversion or exchange and (ii) the holders of such
Permitted Holding Company Indebtedness shall have no right to demand such payment following
a conversion or exchange.

(fff) The term “Permitted Investments” shall mean:

(i) direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States of America (or by any
agency thereof to the extent such obligations are backed by the full faith and
credit of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

(ii) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, a credit rating of at
least A-1 or P-1 from S&P or from Moody’s, respectively;

(iii) investments in certificates of deposit, banker’s acceptances and time
deposits denominated in US Dollars and maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market deposit
accounts denominated in US Dollars issued or offered by, any commercial bank
organized under the laws of the United States of America or any State thereof or any
member nation of the Organization for Economic Cooperation and Development which has
a combined capital and surplus and undivided profits of not less than $500,000,000
(or the US Dollar Equivalent thereof) or any Lender or Affiliate of any Lender;

(iv) fully collateralized repurchase agreements with a term of not more than 30
days for securities described in clause (i) above and entered into with a financial
institution satisfying the criteria described in clause (iii) above; and

(v) money market funds that (A)(1) comply with the criteria set forth in
Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of
1940 (or, in the case of money market funds offered by any commercial bank organized
under the laws of any member nation of the Organization for Economic Cooperation and
Development, the applicable criteria of such member nation to the extent
substantially comparable to the criteria set forth in such Rule 2a-7), (2) are rated
AAA by S&P and Aaa by Moody’s or a comparable rating by any other nationally
recognized rating agency and (3) have portfolio assets of at least $5,000,000,000
(or the US Dollar Equivalent thereof) or (B) are offered by any Lender or Affiliate
of any Lender.

(ggg) The term “Permitted Subordinated Indebtedness” means Indebtedness (other than
Permitted Holding Company Indebtedness) of the Corporation or any of its Subsidiaries that
(i) is subordinated to the obligations under the Credit Agreement on terms no less favorable
to the lenders under the Credit Agreement than the terms set forth in Exhibit F to the
Credit Agreement, (ii) complies otherwise with the terms set forth in Exhibit F to the
Credit Agreement and (iii) matures on or after the date that is one year after the maturity
date of the term loan under the Credit Agreement.

(hhh) The term “Person” shall mean any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental Authority or
other entity.

(iii) The term “Plan” means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA, and in respect of which the Corporation or any ERISA Affiliate
is (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.

(jjj) The term “Related Business” means the business of promoting or producing live
entertainment events as engaged in by Parent and its Subsidiaries on the Restatement Date,
and any services, activities or businesses incidental or directly related or similar
thereto, or any line of business or business activity that is a reasonable extension,
development, application or expansion thereof or ancillary thereto (including by way of
geography or product line), including the music and ticketing business in general.

(kkk) The term “Remaining Excess Cash” shall mean, at any time, an amount equal to the
Effective Date Excess Cash less the sum of (i) the aggregate amount of investments, loans
and advances made, and payments in respect of purchases and acquisitions consummated,
pursuant to SECTION 2(g)(xiii)(M) of ARTICLE IV prior to such time, (ii) the aggregate
amount of Restricted Payments made pursuant to SECTION 2(g)(xvii)(A)(5) of ARTICLE IV prior
to such time and (iii) the aggregate amount of cash and cash equivalents transferred
pursuant to SECTION 2(g)(xviii)(I) of ARTICLE IV prior to such time; provided that Remaining
Excess Cash shall not, at any time, be less than zero.

(lll) The term “Restatement Date” shall mean June 29, 2007.

(mmm) The term “Restricted Payment” shall mean any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity Interests in the
Corporation or any of its Subsidiaries, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any Equity Interests in
the Corporation or any of its Subsidiaries or any option, warrant or other right to acquire
any such Equity Interests in the Corporation or any of its Subsidiaries.

(nnn) The term “Senior Indebtedness” shall mean Indebtedness of Parent or any of its
Subsidiaries that is not expressly subordinated in right of payment to any other
Indebtedness of Parent or any of its Subsidiaries.

(ooo) The term “Senior Leverage Ratio” shall mean, on any relevant date of
determination, the ratio of (i) Total Senior Indebtedness as of such date minus Unrestricted
Cash and Cash Equivalents as of such date to (ii) Consolidated EBITDA for the period of four
consecutive fiscal quarters of Parent ended on such date.

(ppp) The term “Specified Number” shall mean, with respect to any meeting of
stockholders or any written consent of stockholders in lieu of meeting, the result obtained
by dividing (i) the aggregate number of votes entitled to be cast by the holders of Common
Stock by (ii) three times the aggregate number of shares of Series A Preferred outstanding,
in each case calculated as of the record date for such meeting or written consent of
stockholders (or, if no record date is established, as of the date such vote is taken or
such written consent is first solicited).

(qqq) The term “Subordinated Indebtedness” shall mean Indebtedness of Parent or any of
its Subsidiaries that is expressly subordinated in right of payment to the obligations in
the Credit Agreement.

(rrr) The term “Subsidiary” shall mean, with respect to any Person (the
“parent”) at any date, (a) any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the
parent in the parent’s consolidated financial statements if such financial statements were
prepared in accordance with United States generally accepted accounting principles as of
such date, as well as (b) any other corporation, limited liability company, partnership,
association or other entity (i) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting power or,
in the case of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, controlled or held, or (ii) that is, as of such date, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one
or more subsidiaries of the parent, other than solely as a result of a contract under which
the parent or one or more subsidiaries of the parent provides management services; provided
that (A) any subsidiary that is consolidated in the Corporation’s consolidated financial
statements prepared in accordance with GAAP, but which is not controlled by the Corporation
in the manner described in clauses (b)(i) or (b)(ii) in the preceding definition of
“subsidiary”, shall not be a “Subsidiary” and (b) such subsidiaries so excluded from the
definition of “Subsidiary” pursuant to the immediately preceding clause (A) may at no time
represent more than 1.0% of Consolidated EBITDA, Consolidated Revenues or Consolidated
Tangible Assets of the Corporation. For purposes of Section 2(g) of ARTICLE IV, each
Permitted Acquisition Holding and each of its Subsidiaries shall be deemed to be a
Subsidiary of the Corporation so long as such Permitted Acquisition Holding has executed a
Permitted Acquisition Holding Guarantee and delivered such Permitted Acquisition Holding
Guarantee to each holder of Designated Preferred (it being understood, however, that a
holder of Designated Preferred shall not be a beneficiary of, and shall not be entitled to
enforce, such Permitted Acquisition Holding Guarantee unless and until such holder of
Designated Preferred also executes such Permitted Acquisition Holding Guarantee and delivers
such Permitted Acquisition Holding Guarantee to such Permitted Acquisition Holding).

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

(ttt) The term “Tax-Free Reorganization” shall mean an acquisition of a Related
Business in a transaction that is treated as a tax-free reorganization under Section 368 of
the Code.

(uuu) The term “Total Indebtedness” shall mean, as of any relevant date of
determination, the sum of, without duplication, (i) the aggregate principal amount of
Indebtedness of Parent and its Subsidiaries outstanding as of such date, in the amount that
would be reflected on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP, plus (ii) the aggregate principal amount of Indebtedness of Parent and
its Subsidiaries outstanding as of such date that is not required to be reflected on a
balance sheet in accordance with GAAP, determined on a consolidated basis, plus (iii) the
aggregate amount of Accumulated Dividends and the liquidation preference for the Designated
Preferred calculated pursuant to SECTION 2(c)(1) of ARTICLE IV; provided that Total
Indebtedness shall exclude all Indebtedness of Parent and its Subsidiaries permitted under
SECTION 2(g)(x)(A)(7) of ARTICLE IV.

(vvv) The term “Total Senior Indebtedness” shall mean, as of any relevant date of
determination, the sum of (i) the aggregate principal amount of Senior Indebtedness of
Parent and its Subsidiaries outstanding as of such date, in the amount that would be
reflected on a balance sheet prepared as of such date on a consolidated basis in accordance
with GAAP, plus (ii) the aggregate principal amount of Senior Indebtedness of Parent and its
Subsidiaries outstanding as of such date that is not required to be reflected on a balance
sheet in accordance with GAAP, determined on a consolidated basis, provided that
Total Senior Indebtedness shall exclude all Senior Indebtedness of Parent and its
Subsidiaries permitted under SECTION 2(g)(x)(A)(7) and 2(g)(x)(A)(9) of ARTICLE IV.

(www) The term “Triggering Event” shall mean the failure of the Corporation to comply
with the covenant in SECTION 2(h) of ARTICLE IV.

(xxx) The term “Unrestricted Cash and Cash Equivalents” shall mean, as of any date, an
amount equal to (a) the aggregate amount of consolidated cash and cash equivalents of Parent
and its Subsidiaries as of such date less (b) the Remaining Excess Cash as of such date,
provided that for all purposes hereunder, Unrestricted Cash and Cash Equivalents shall not
exceed US$150,000,000.

(yyy) The term “Voting Stock” shall mean all classes of the then outstanding capital
stock of the Corporation entitled to vote generally on any matter that could be submitted to
a vote of stockholders of the Corporation other than the election of directors.

(zzz) The term “Worldwide” shall mean Live Nation Worldwide, Inc. (f/k/a SFX
Entertainment, Inc.), a Delaware corporation.

SECTION 2. Business Day. The term “business day,” when used herein, means any day
other than a Saturday, a Sunday, or a day on which banking institutions in the States of New York
or Texas are authorized or obligated by law or executive order to close.

SECTION 3. Shares Outstanding. The term “outstanding,” when used with reference to
shares of Common Stock, Series A Preferred or Series B Preferred or any other shares of stock,
shall mean issued shares excluding shares held by the Corporation or any Corporation Affiliate.

SECTION 4. Proportion of Shares. Every reference in this Certificate of Incorporation
to a majority or other proportion of shares, or a majority or other proportion of the votes of
shares, of Common Stock, Series A Preferred or any other capital stock shall refer to such majority
or other proportion of the votes to which such shares entitle their holders to cast as provided in
this Certificate of Incorporation.

SECTION 5. Headings. The headings of the articles, sections and subsections of this
Certificate of Incorporation are for convenience of reference only and shall not define, limit or
affect any of the provisions hereof.

* * *

1

IN WITNESS WHEREOF, this Amended and Restated Certificate of Incorporation has been
executed by a duly authorized officer of the Corporation on this 29th day of June, 2007.

By: /s/ Michael Rapino

Michael Rapino

Chief Executive Officer

2

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