Document:

exv10w3

 

EXHIBIT 10.3

FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT

DATED AS OF JUNE 10, 2005

BY

SPANISH BROADCASTING SYSTEM, INC.

AND CERTAIN OF ITS SUBSIDIARIES,

AS GRANTORS,

IN FAVOR OF

LEHMAN COMMERCIAL PAPER INC.,

AS ADMINISTRATIVE AGENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.

	 	    DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	1.01.

	 	Definition of Terms Used Herein Generally
	 	 	1	 
	1.02.

	 	Definition of Certain Terms Used Herein
	 	 	1	 
	1.03.

	 	Rules of Interpretation
	 	 	8	 
	 
	 	 	 	 	 	 
	SECTION 2.

	 	    GUARANTEE
	 	 	8	 
	 
	 	 	 	 	 	 
	2.01.

	 	Guarantee
	 	 	8	 
	2.02.

	 	Right of Contribution
	 	 	9	 
	2.03.

	 	Subrogation
	 	 	9	 
	2.04.

	 	Amendments, etc. with respect to the Borrower Obligations
	 	 	9	 
	2.05.

	 	Guarantee Absolute and Unconditional
	 	 	10	 
	2.06.

	 	Reinstatement
	 	 	11	 
	2.07.

	 	Payments
	 	 	11	 
	 
	 	 	 	 	 	 
	SECTION 3.

	 	    GRANT OF SECURITY INTEREST
	 	 	11	 
	 
	 	 	 	 	 	 
	SECTION 4.

	 	    AUTHORIZATION TO FILE FINANCING STATEMENTS
	 	 	12	 
	 
	 	 	 	 	 	 
	SECTION 5.

	 	    RELATION TO OTHER SECURITY DOCUMENTS
	 	 	13	 
	 
	 	 	 	 	 	 
	5.01.

	 	Patent and Trademark Security Agreement Supplements
	 	 	13	 
	5.02.

	 	Copyright Security Agreement Supplement
	 	 	13	 
	 
	 	 	 	 	 	 
	SECTION 6.

	 	    REPRESENTATIONS AND WARRANTIES
	 	 	13	 
	 
	 	 	 	 	 	 
	6.01.

	 	Grantors’ Legal Status
	 	 	13	 
	6.02.

	 	Grantors’ Legal Names
	 	 	13	 
	6.03.

	 	Grantors’ Locations
	 	 	13	 
	6.04.

	 	Representations in the Credit Agreement
	 	 	14	 
	6.05.

	 	Title to Collateral
	 	 	14	 
	6.06.

	 	Nature of Collateral
	 	 	14	 
	6.07.

	 	Validity of Security Interest
	 	 	15	 
	6.08.

	 	Perfection Certificate, Intellectual Property Filings
	 	 	15	 
	6.09.

	 	Investment Property
	 	 	15	 
	6.10.

	 	Receivables
	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 7.

	 	    COVENANTS
	 	 	16	 
	 
	 	 	 	 	 	 
	7.01.

	 	Locations
	 	 	16	 
	7.02.

	 	Covenants in Credit Agreement
	 	 	16	 
	7.03.

	 	Promissory Notes and Tangible Chattel Paper
	 	 	16	 
	7.04.

	 	Investment Property
	 	 	16	 
	7.05.

	 	Collateral in the Possession of a Bailee
	 	 	19	 
	7.06.

	 	Electronic Chattel Paper and Transferable Records
	 	 	19	 
	7.07.

	 	Letter-of-Credit Rights
	 	 	19	 
	7.08.

	 	Commercial Tort Claims
	 	 	19	 
	7.09.

	 	Intellectual Property
	 	 	20	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	SECTION 8.

	 	    COLLATERAL PROTECTION EXPENSES; PRESERVATION OF COLLATERAL
	 	 	22	 
	 
	 	 	 	 	 	 
	8.01.

	 	Expenses Incurred by the Administrative Agent
	 	 	22	 
	8.02.

	 	Administrative Agent’s Obligations and Duties
	 	 	22	 
	8.03.

	 	Duties as to Pledged Securities
	 	 	23	 
	8.04.

	 	Use of Collateral
	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 9.

	 	    SECURITIES AND DEPOSITS
	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 10.

	 	    NOTIFICATION TO ACCOUNT DEBTORS AND OTHER PERSONS OBLIGATED ON COLLATERAL
	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 11.

	 	    POWER OF ATTORNEY
	 	 	25	 
	 
	 	 	 	 	 	 
	11.01.

	 	Appointment and Powers of Administrative Agent
	 	 	25	 
	11.02.

	 	Failure of Grantor to Perform
	 	 	27	 
	11.03.

	 	Expenses of Attorney-in-Fact
	 	 	27	 
	11.04.

	 	Ratification by Grantor
	 	 	27	 
	11.05.

	 	No Duty on Secured Party
	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 12.

	 	    REMEDIES
	 	 	27	 
	 
	 	 	 	 	 	 
	12.01.

	 	Default
	 	 	27	 
	12.02.

	 	Remedies Upon Default
	 	 	27	 
	12.03.

	 	Grant of License to Use Intellectual Property
	 	 	29	 
	12.04.

	 	Waivers by Grantors
	 	 	29	 
	12.05.

	 	Application of Proceeds
	 	 	30	 
	12.06.

	 	Surplus, Deficiency
	 	 	30	 
	12.07.

	 	Information Related to the Collateral
	 	 	30	 
	12.08.

	 	Sale Exempt from Registration
	 	 	31	 
	12.09.

	 	Rights and Remedies Cumulative
	 	 	31	 
	12.10.

	 	No Direct Enforcement by Secured Parties
	 	 	31	 
	 
	 	 	 	 	 	 
	SECTION 13.

	 	    STANDARDS FOR EXERCISING REMEDIES
	 	 	31	 
	 
	 	 	 	 	 	 
	13.01.

	 	Commercially Reasonable Manner
	 	 	31	 
	13.02.

	 	Standard of Care
	 	 	32	 
	 
	 	 	 	 	 	 
	SECTION 14.

	 	    WAIVERS BY GRANTOR; OBLIGATIONS ABSOLUTE
	 	 	32	 
	 
	 	 	 	 	 	 
	14.01.

	 	Specific Waivers
	 	 	32	 
	14.02.

	 	Obligations Absolute
	 	 	32	 
	 
	 	 	 	 	 	 
	SECTION 15.

	 	    MARSHALLING
	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 16.

	 	    INTEREST
	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 17.

	 	    REINSTATEMENT
	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 18.

	 	    MISCELLANEOUS
	 	 	33	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	18.01.

	 	Notices
	 	 	33	 
	18.02.

	 	GOVERNING LAW, CONSENT TO JURISDICTION
	 	 	34	 
	18.03.

	 	WAIVER OF JURY TRIAL, ETC
	 	 	34	 
	18.04.

	 	Counterparts
	 	 	34	 
	18.05.

	 	Headings
	 	 	34	 
	18.06.

	 	No Strict Construction
	 	 	34	 
	18.07.

	 	Severability
	 	 	34	 
	18.08.

	 	Survival of Agreement
	 	 	35	 
	18.09.

	 	Fees and Expenses, Indemnification
	 	 	35	 
	18.10.

	 	Binding Effect; Several Agreement
	 	 	35	 
	18.11.

	 	Waivers; Amendment
	 	 	36	 
	18.12.

	 	Set-Off
	 	 	36	 
	18.13.

	 	Integration
	 	 	36	 
	18.14.

	 	Acknowledgments
	 	 	37	 
	18.15.

	 	Additional Grantors and Guarantors
	 	 	37	 
	18.16.

	 	Releases
	 	 	37	 
	18.17.

	 	Intercompany Debt
	 	 	38	 
	18.18.

	 	FCC Matters
	 	 	38	 

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TABLE OF CONTENTS

EXHIBITS

	 	 	 
	A

	 	Perfection Certificate
	B

	 	Form of Copyright Security Agreement Supplement
	C

	 	Form of Patent Security Agreement Supplement
	D

	 	Form of Trademark Security Agreement Supplement
	 
	 	 
	ANNEXES
	 	 
	 
	I

	 	Form of Assumption Agreement

iv

 

     FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT, dated as of June 10, 2005, by each of the
signatories hereto identified on the signature pages hereto as a grantor (together with any other
entity that may become a party hereto as provided herein, each a “Grantor” and
collectively, jointly and severally, the “Grantors”) in favor of Lehman Commercial Paper
Inc. as Administrative Agent (in such capacity, the “Administrative Agent”) for (i) the
banks and other financial institutions or entities (the “Lenders”) from time to time
parties to the First Lien Credit Agreement, dated as of June 10, 2005 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among Spanish Broadcasting
System, Inc., a Delaware corporation (the “Borrower”), the Lenders, the Lead Arranger, the
Arrangers, the Syndication Agent, the Documentation Agent and the Administrative Agent and (ii) the
other Secured Parties (as hereinafter defined).

W I T N E S S E T H :

     WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and conditions set forth therein;

     WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other
Grantor;

     WHEREAS, the proceeds of the extension of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

     WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of extensions of credit
under the Credit Agreement; and

     WHEREAS, it is a condition precedent to the obligations of the Lenders to make their
respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall
have executed and delivered this Agreement to the Administrative Agent.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     Section 1. Definitions.

          1.01. Definition of Terms Used Herein Generally. Except as otherwise provided herein,
all capitalized terms used but not defined herein shall have the meanings set forth in the Credit
Agreement. Except as specifically provided herein, all terms used herein and defined in the NYUCC
(as defined below) shall have the same definitions herein as specified therein as of the date
hereof; provided, however, that if a term is defined in Article 9 of the NYUCC
differently than in another Article of the NYUCC, the term has the meaning specified in Article 9
of the NYUCC as of the date hereof.

          1.02. Definition of Certain Terms Used Herein. As used herein, the following terms
shall have the following meanings:

 

 

     “After-Acquired Intellectual Property”: as defined in Section 7.09.

     “Agreement”: this First Lien Guarantee and Collateral Agreement, as the same may be
amended, supplemented, replaced or otherwise modified from time to time.

     “Arrangers”: Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith,
Incorporated, and Wachovia Capital Markets, LLC.

     “Borrower Obligations”: the collective reference to the Obligations (as defined in the
Credit Agreement).

     “Collateral”: as defined in Section 3.

     “Control Agreements”: as defined in Section 7.07.

     “Copyright License”: 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 the
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 any Grantor under any such
agreement.

     “Copyright Office”: the United States Copyright Office.

     “Copyrights”: (i) all copyrights, whether or not the underlying works of authorship
have been published, and all works of authorship and other intellectual property rights therein,
all copyrights of works based on, incorporated in, derived from or relating to works covered by
such copyrights, all right, title and interest to make and exploit all derivative works based on or
adopted from works covered by such copyrights, and all copyright registrations and copyright
applications, and any renewals or extensions thereof, including, without limitation, each
registration and application identified in Schedule 7(b) to the Perfection Certificate,
(ii) the rights to print, publish and distribute any of the foregoing, (iii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Copyright Licenses
entered into in connection therewith, and damages and payments for past, present or future
infringements thereof), and (v) all other rights of any kind whatsoever accruing thereunder or
pertaining thereto.

     “Copyright Security Agreement Supplement”: a supplement to this Agreement, executed by
one or more Grantors in favor of the Secured Party, substantially in the form of Exhibit B
hereto.

     “Disposition”: with respect to any Property, the sale, lease (other than an operating
lease entered into in the ordinary course of business), conveyance or other disposition of any
assets or rights (including, without limitation, by way of a sale and leaseback), excluding sales
of services and goods in the ordinary course of business consistent with past practices, but not
including the issuance of Capital Stock by the Borrower; and the terms “Dispose” and
“Disposed of” shall have correlative meanings.

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     “Event”: as defined in Section 8.03 hereof.

     “Excluded Assets”: collectively, (a) FCC Licenses, but only if and to the extent that,
and only for as long as, the grant of a security interest therein is prohibited (notwithstanding
the intention of the holder to grant such security interest to the fullest extent lawful) under the
laws of the United States of America; provided, that notwithstanding the foregoing but subject to
clause (e) below, all Proceeds of a Disposition by a Grantor of an FCC License shall not constitute
an Excluded Asset, (b) any General Intangible to the extent that (i) the terms of the agreement
between the applicable Grantor and the account debtor or other contract party with respect to such
General Intangible prohibits, restricts or requires the consent of the account debtor to, the
assignment or transfer of, or creation, attachment or perfection of a security interest in, such
General Intangible, or provides that the assignment or transfer or creation, attachment or
perfection of such security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination or remedy and (ii) such terms are effective under
Sections 9-406, 9-407 or 9-408 of the NYUCC, (c) Excluded Foreign Subsidiary Voting Stock excluded
from the definition of Pledged Stock, (d) any property that is subject to a Lien permitted under
Section 7.3 of the Credit Agreement pursuant to documents that prohibit the applicable Grantor from
granting other liens in such property, and (e) any property to the extent that such grant of a
security interest is prohibited by any Requirements of Law of a Governmental Authority or requires
a consent not obtained of any Governmental Authority pursuant to such Requirement of Law (after the
exercise of commercially reasonable efforts by the applicable Grantor to obtain such consent),
except to the extent that such Requirement of Law providing for such prohibition is ineffective
under applicable law.

     “Excluded Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Excluded
Foreign Subsidiary.

     “FCC Licenses”: any licenses, permits and authorizations issued by the Federal
Communications Commission for the operation of stations.

     “Foreign Subsidiary”: any Subsidiary organized under the laws of any jurisdiction
other than any state of the United States of America or the District of Columbia.

     “Fully Satisfied” means, with respect to the Secured Obligations, Guarantor
Obligations or Borrower Obligations, as the case may be, at any time that (a) all principal
constituting Secured Obligations, Guarantor Obligations or Borrower Obligations, as the case may
be, and all interest (including interest that shall have accrued after the commencement of a
bankruptcy proceeding with respect to the Borrower or any Guarantor at the rate provided in the
Loan Documents) accrued to such time on such principal and on all other Secured Obligations,
Guarantor Obligations or Borrower Obligations, as the case may be, shall have been paid in full in
cash, (b) all fees, expenses and other amounts (including contingent obligations, including those
in respect of indemnification provisions contained in the Loan Documents, but excluding contingent
obligations for which no claim has been made and for which no notice of claim has been given)
unpaid as of such time which constitute Secured Obligations, Guarantor Obligations or Borrower
Obligations, as the case may be, shall have been paid in full in cash, (c) each outstanding Letter
of Credit shall have been (i) terminated, (ii) collateralized with cash as contemplated by the
definition of “Termination Date” in the Credit Agreement, (iii) backed by a

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Qualified Supporting Letter of Credit delivered to the applicable Issuing Lender or (iv) as
otherwise satisfactory to the Issuing Lender, and (d) the Commitments shall have expired or been
terminated.

     “General Intangibles”: all “general intangibles” as such term is defined in Section
9102(42) of the NYUCC as in effect on the date hereof and, in any event, including, without
limitation, with respect to any Grantor, all contracts, agreements, instruments and indentures and
all licenses and permits issued by Governmental Authorities in any form, and portions thereof, to
which such Grantor is a party or under which such Grantor has any right, title or interest or to
which such Grantor or any property of such Grantor is subject, as the same may from time to time be
amended, supplemented, replaced or otherwise modified, including, without limitation, (i) all
rights of such Grantor to receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising
thereunder, (iv) all rights of such Grantor to receive any tax refunds, and (v) all rights of such
Grantor to terminate and to perform, compel performance and to exercise all remedies thereunder.

     “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Loan Document or Specified Hedge
Agreement to which such Guarantor is a party, in each case whether on account of guarantee
obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel to any Secured Party that are required to
be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document or
Specified Hedge Agreement).

     “Guarantors”: the collective reference to each Grantor other than the Borrower.

     “Hedge Agreements”: as to any Person, all interest rate swaps, caps or collar
agreements, foreign exchange agreements, commodity contracts, currency swaps or similar
arrangements entered into by such Person providing for protection against fluctuations in interest
rates or currency exchange rates or the exchange of nominal interest obligations, either generally
or under specific contingencies.

     “Intellectual Property”: all intellectual and similar property of any Grantor of every
kind and nature now owned or hereafter acquired by any Grantor, including inventions, designs,
Patents, Patent Licenses, Trademarks, Trademark Licenses, Copyrights, Copyright Licenses, Trade
Secrets, Trade Secret Licenses, 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, licenses for any of the
foregoing and all license rights, and all additions, improvements and accessions to, and books and
records describing or used in connection with, any of the foregoing.

     “Intellectual Property Security Agreement”: each of a Copyright Security Agreement
Supplement, a Patent Security Agreement Supplement and a Trademark Security Agreement Supplement.

-4-

 

     “Intercompany Debt”: as defined in Section 18.17.

     “Intercompany Note”: any promissory note evidencing loans made by any Grantor to any
of its Subsidiaries or any loan made by any Grantor to another Grantor.

     “Investment Property”: the collective reference to (i) all “investment property” as
such term is defined in Section 9-102(48) of the NYUCC on the date hereof including, without
limitation, all certificated securities and uncertificated securities, all security entitlements,
all securities accounts, all commodity contracts and all commodity accounts (other than any
Excluded Foreign Subsidiary Voting Stock excluded from the definition of Pledged Stock), (ii)
security entitlements, in the case of any United States Treasury book-entry securities, as defined
in 31 C.F.R. section 357.2, or, in the case of any United States federal agency book-entry
securities, as defined in the corresponding United States federal regulations governing such
book-entry securities, and (iii) whether or not constituting “investment property” as so defined,
all Pledged Notes, all Pledged Stock, all Pledged Security Entitlements and all Pledged Commodity
Contracts.

     “Issuers”: the collective reference to each issuer of a Pledged Security.

     “Lead Arranger”: Lehman Brothers Inc., in its capacity as lead arranger and book
running manager.

     “Lease”: any lease of personal property under which any Grantor is the lessee.

     “Lehman Entity”: any of Lehman Commercial Paper Inc. or any of its affiliates.

     “Lien”: any security interest, mortgage, lien, encumbrance or adverse claim, and any
financing statement or similar document filed in respect of same.

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

     “Patent License”: 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”: all of the following now owned or hereafter acquired by any Grantor: (a)
all letters patent of the United States or any other country, all registrations and recordings
thereof, and all pending applications for letters patent of the United States or any other country,
including registrations, recordings and applications in the PTO or in any similar office or agency
of the United States, any State or Territory thereof, or any other country, including those
identified in Schedule 7(a) to the Perfection Certificate, 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 inventions disclosed or
claimed therein.

-5-

 

     “Patent Security Agreement Supplement”: a supplement to this Agreement, executed by
one or more Grantors in favor of Secured Party, substantially in the form of Exhibit C
hereto.

     “Perfection Certificate”: shall mean a certificate substantially in the form of
Exhibit A hereto, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by the Grantors.

     “Pledged Commodity Contracts”: all commodity contracts listed on Schedule 8 in
the Perfection Certificate, and all other commodity contracts to which any Grantor is party from
time to time.

     “Pledged Debt Securities”: the debt securities listed on Schedule 9 to the
Perfection Certificate, together with any other certificates, options, rights or security
entitlements of any nature whatsoever in respect of the debt securities of any Person that may be
issued or granted to, or held by, any Grantor while this Agreement is in effect.

     “Pledged Notes”: all promissory notes listed on Schedule 9 to the Perfection
Certificate, all Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes in an aggregate principal
amount for all Grantors not to exceed $2,500,000 at any time outstanding and any promissory note
issued to any Grantor by an employee of such Grantor).

     “Pledged Securities”: the collective reference to the Pledged Debt Securities, the
Pledged Notes and the Pledged Stock.

     “Pledged Security Entitlements”: all security entitlements with respect to the
financial assets listed on Schedule 8 to the Perfection Certificate and all other security
entitlements of any Grantor.

     “Pledged Stock”: the shares of Capital Stock listed on Schedule 8 to the
Perfection Certificate, together with any other shares, stock certificates, options, rights or
security entitlements of any nature whatsoever in respect of the Capital Stock of any Person that
may be issued or granted to, or held by, any Grantor while this Agreement is in effect; provided
that in no event shall more than 65% of the total outstanding Excluded Foreign Subsidiary Voting
Stock of any Excluded Foreign Subsidiary be required to be pledged hereunder.

     “Proceeds”: all “proceeds” as such term is defined in Section 9-102(64) of the NYUCC
in effect on the date hereof and, in any event, shall include, without limitation, all dividends or
other income from the Pledged Securities, collections thereon or distributions or payments with
respect thereto.

     “PTO”: the United States Patent and Trademark Office.

     “Qualified Counterparty”: with respect to any Hedge Agreement, a Lehman Entity or any
Lender or affiliate of a Lender approved by the Administrative Agent and any Lender or Affiliate of
a Lender under the Second Lien Term Loan Agreement approved by the Administrative Agent thereunder.

-6-

 

     “Receivable”: any right to payment on account of any obligation that could create any
right to receive money, whether or not such right is evidenced by an instrument or chattel paper
and whether or not it has been earned by performance (including, without limitation, any account or
payment intangible).

     “Secured Obligations”: the Borrower Obligations and the Guarantor Obligations.

     “Secured Parties”: collectively, the Arrangers, the Agents, the Lenders and, with
respect to any Specified Hedge Agreement, any Qualified Counterparty and each Indemnitee.

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

     “Security Documents”: this Agreement, the Perfection Certificate and the other
documents, agreements and supplements to be executed pursuant to the terms hereof, including,
without limitation, the Intellectual Property Security Agreements and the Control Agreements
contemplated hereby.

     “Security Interest”: the security interest granted pursuant to Section 3, as
well as all other security interests created or assigned as additional security for the Secured
Obligations pursuant to the provisions of this Agreement.

     “Trade Secret License”: any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trade Secret, including, without limitation, any
of the foregoing referred to on Schedule 7(a) to the Perfection Certificate.

     “Trade Secrets”: (i) all trade secrets and all confidential and proprietary
information, including know-how, trade secrets, manufacturing and production processes and
techniques, inventions, research and development information, technical data, financial, marketing
and business data, pricing and cost information, business and marketing plans, and customer and
supplier lists and information, including, without limitation, those identified in Schedule
7(a) to the Perfection Certificate, (ii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iii) all income, royalties,
damages and other payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all licenses entered into in connection therewith, and damages
and payments for past, present or future infringements thereof), and (iv) all other rights of any
kind whatsoever of such Grantor accruing thereunder or pertaining thereto.

     “Trademark License”: 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.

     “Trademark Security Agreement Supplement”: a supplement to this Agreement, executed by
the Grantor in favor of Secured Party, substantially in the form of Exhibit D hereto.

     “Trademarks”: (i) all trademarks, service marks, trade names, corporate names, company
names, business names, domain names, trade dress, trade styles, logos, or other indicia of origin

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or source identification, trademark and service mark registrations, and applications for
trademark or service mark registrations and any renewals thereof, including, without limitation,
those identified in Schedule 7(a) to the Perfection Certificate, (ii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Trademark Licenses
entered into in connection therewith, and damages and payments for past, present or future
infringements thereof), and (iv) all other rights of any kind whatsoever accruing thereunder or
pertaining thereto, together in each case with the goodwill of the business connected with the use
of, and symbolized by, each of the above.

     “UCC”: the Uniform Commercial Code as in effect in any jurisdiction. References to
particular sections of Article 9 of the UCC shall be, unless otherwise indicated, references to
Revised Article 9 of the UCC adopted and effective in certain jurisdictions on or after July 1,
2001.

          1.03. Rules of Interpretation. The rules of interpretation specified in paragraphs
(c), (d), (e) and (f) of Section 1.2 of the Credit Agreement shall be applicable to this
Agreement. References to “Sections”, “Exhibits” and “Schedules” shall be to Sections, Exhibits and
Schedules, respectively, of this Agreement unless otherwise specifically provided. Any of the
terms defined in this Section 1 may, unless the context otherwise requires, be used in the
singular or the plural depending on the reference. All references to statutes and related
regulations shall include (unless otherwise specifically provided herein) any amendments of same
and any successor statutes and regulations.

     Section 2. Guarantee

          2.01. Guarantee. (a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of
the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt
and complete payment and performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

               (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal, state and other laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 2.02).

               (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Secured Party
hereunder.

               (d) The guarantee contained in this Section 2 shall remain in full force and effect
until all the Borrower Obligations and Guarantor Obligations shall have been Fully

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Satisfied notwithstanding that from time to time during the term of the Credit Agreement the
Borrower may be free from any Borrower Obligations.

               (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by any Secured Party from the Borrower, any of the Guarantors, any
other guarantor or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or in payment of the
Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability
of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment received or collected
from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower
Obligations up to the maximum liability of such Guarantor hereunder until the Borrower Obligations
are Fully Satisfied.

          2.02. Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid at least its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2.03. The
provisions of this Section 2.02 shall in no respect limit the obligations and liabilities
of any Guarantor to the Secured Parties and each Guarantor shall remain liable to the Secured
Parties for the full amount guaranteed by such Guarantor hereunder.

          2.03. Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by any Secured Party, no Guarantor shall be
entitled to be subrogated to any of the rights of any Secured Party against the Borrower or any
other Guarantor or Grantor or any collateral security or guarantee or right of offset held by any
Secured Party for the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor or
Grantor in respect of payments made by such Guarantor hereunder, until all Borrower Obligations are
Fully Satisfied. If any amount shall be paid to any Guarantor on account of such subrogation
rights at any time when all of the Borrower Obligations shall not have been Fully Satisfied, such
amount shall be held by such Guarantor in trust for the Secured Parties, segregated from other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the
Administrative Agent in the exact form received by such Guarantor (duly endorsed by such Guarantor
to the Administrative Agent, if required), to be applied against the Borrower Obligations, whether
matured or unmatured, in such order as the Administrative Agent may determine.

          2.04. Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Borrower Obligations made by any Secured Party may be rescinded by such Secured Party and
any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised,

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waived, surrendered or released by any Secured Party, and the Credit Agreement and the other
Loan Documents and any other documents executed and delivered in connection therewith may be
amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or
the Requisite Lenders under the Credit Agreement or all Lenders, as the case may be) may deem
advisable from time to time, and any collateral security, guarantee or right of offset at any time
held by any Secured Party for the payment of the Borrower Obligations may be sold, exchanged,
waived, surrendered or released. No Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Borrower Obligations or for
the guarantee contained in this Section 2 or any property subject thereto.

          2.05. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or
proof of reliance by any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one hand, and the Secured
Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Borrower or any of the Guarantors with respect to the Borrower Obligations. Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be construed as
a continuing, absolute and unconditional guarantee of payment and performance without regard to (a)
the validity or enforceability of the Credit Agreement or any other Loan Document, any of the
Borrower Obligations or any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by any Secured Party, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which may at any time be
available to or be asserted by the Borrower or any other Person against any Secured Party, or (c)
any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such
Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge
of the Borrower for the Borrower Obligations, or of such Guarantor under the guarantee contained in
this Section 2, in bankruptcy or in any other instance. When making any demand hereunder
or otherwise pursuing its rights and remedies hereunder against any Guarantor, any Secured Party
may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights
and remedies as it may have against the Borrower, any other Guarantor or any other Person or
against any collateral security or guarantee for the Borrower Obligations or any right of offset
with respect thereto, and any failure by any Secured Party to make any such demand, to pursue such
other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any
other Person or to realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of any Secured Party against any Guarantor. For
the purposes hereof, “demand” shall include the commencement and continuance of any legal
proceedings.

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          2.06. Reinstatement. The guarantee contained in this Section 2 shall continue
to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by any
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payments had not been made.

          2.07. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Administrative Agent without set-off or counterclaim in Dollars in immediately available
funds at the office of the Administrative Agent located at the Payment Office specified in the
Credit Agreement and that all such payments will be subject to the provisions of Section 2.20 of
the Credit Agreement.

     Section 3. Grant of Security Interest.

     Each Grantor hereby grants to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in all of the following property 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 “Collateral”), as collateral security for
the prompt and complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Secured Obligations:

          a. all accounts, including health-care receivables;

          b. all chattel paper, whether tangible or electronic;

          c. all deposit accounts, all claims now or hereafter arising therefrom, all funds now or
hereafter therein and all amounts now or hereafter credited thereto;

          d. all goods;

          e. all documents;

          f. all equipment;

          g. all fixtures;

          h. all general intangibles, including all payment intangibles;

          i. all instruments;

          j. all Intellectual Property;

          k. all inventory;

          l. all Investment Property;

          m. all Leases;

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          n. all letter-of-credit rights;

          o. all money;

          p. all supporting obligations;

          q. all tort claims;

          r. all other personal property not otherwise described above;

          s. all bank accounts, all claims now or hereafter arising therefrom, all funds now or
hereafter held therein, all amounts now or hereafter credited thereto and all certificates and
instruments, if any, from time to time representing or evidencing such bank accounts;

          t. all books and records pertaining to the Collateral; and

          u. 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.

     Notwithstanding the foregoing, none of the Excluded Assets shall, to the extent and for so
long as they are Excluded Assets, constitute Collateral. If at any time, by reason of any change
in law or the receipt of any required consent or otherwise, (i) any FCC License that was an
Excluded Asset ceases to meet the conditions set forth in the definition of Excluded Assets found
in Section 1 of this Agreement or (ii) any General Intangible that was an Excluded Asset ceases to
meet the conditions set forth in the definition of Excluded Assets found in Section 1 of
this Agreement, then such FCC License or general intangible, as the case may be, shall immediately
and automatically cease to be an Excluded Asset and the security interest herein granted shall
immediately and automatically attach thereto without necessity of any further act or deed by any
Grantor.

     Section 4. Authorization to File Financing Statements. Each Grantor hereby
irrevocably authorizes the Administrative Agent at any time and from time to time to file in any
jurisdiction in which the UCC has been adopted any initial financing statements and amendments
thereto that (a) indicate the Collateral (i) as all assets of such Grantor or words of similar
effect, regardless of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the NYUCC or such jurisdiction, or (ii) as being of an equal or lesser scope
or with greater detail, and (b) contain any other information required by part 5 of Article 9 of
the UCC for the sufficiency or filing office acceptance of any initial financing statement or
amendment, including (i) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor and, (ii) in the case of a financing
statement filed as a fixture filing or indicating Collateral as timber to be cut or as-extracted
collateral, a sufficient description of real property to which such Collateral relates. Each
Grantor agrees to furnish any such information to the Administrative Agent promptly upon request.
Each Grantor also ratifies its authorization for the Administrative Agent to have filed in any UCC
jurisdiction any like initial financing statements or amendments thereto if filed prior to the date
hereof.

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     Section 5. Relation to Other Security Documents.

          5.01. Patent and Trademark Security Agreement Supplements. Concurrently herewith
certain of the Grantors are executing and delivering to the Administrative Agent for recording in
the PTO the Trademark Security Agreement Supplement. There are no Patents owned by any Grantor as
of the Closing Date. In the event that after the Closing Date any Grantor owns any Patents, or
Trademark Collateral (as defined in the Trademark Security Supplement) Grantors shall promptly
execute and deliver to the Administrative Agent for recording in the PTO one or more Patent
Security Agreement Supplements or Trademark Security Agreement Supplements. The provisions of any
such Patent Security Agreement Supplement or the current or any such future Trademark Security
Agreement Supplement are supplemental to the provisions of this Agreement. Nothing contained in
any such Patent Security Agreement Supplement or the current or any such future Trademark Security
Agreement Supplement shall derogate from any of the rights or remedies of the Secured Party
hereunder, nor shall anything contained in any such Patent Security Agreement Supplement or the
current or any such future Trademark Security Agreement Supplement be deemed to prevent or extend
the time of attachment or perfection of any Security Interest in such Collateral created hereby.

          5.02. Copyright Security Agreement Supplement. There are no Copyrights owned by any
Grantor as of the Closing Date. In the event that after the Closing Date any Grantor owns any
copyrights or Copyright Licenses, such Grantor shall promptly execute and deliver to the
Administrative Agent for recording in the Copyright Office a Copyright Security Agreement
Supplement, the provisions of any such Copyright Security Agreement Supplement will be supplemental
to the provisions of this Agreement. Nothing contained in any such Copyright Security Agreement
Supplement shall derogate from any of the rights or remedies of the Secured Party hereunder, nor
shall anything contained in any such Copyright Security Agreement Supplement be deemed to prevent
or extend the time of attachment or perfection of any Security Interest in such Collateral created
hereby.

     Section 6. Representations and Warranties. To induce the Lead Arranger, the
Arrangers, the Administrative Agent, the Syndication Agent, the Documentation Agent and the Lenders
to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby represents and warrants to the Secured
Parties that:

          6.01. Grantors’ Legal Status. (a) Such Grantor is an organization as set forth in the
Perfection Certificate; (b) if the Grantor is an organization, such organization is of the type,
and is organized in the jurisdiction, set forth in the Perfection Certificate; and (c) the
Perfection Certificate sets forth such Grantor’s organizational identification number or states
that such Grantor has none.

          6.02. Grantors’ Legal Names. Such Grantor’s exact legal name is that set forth on the
Perfection Certificate and on the signature page hereof.

          6.03. Grantors’ Locations. The Perfection Certificate sets forth such Grantor’s place
of business or (if it has more than one place of business) its chief executive office, as well

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as its mailing address if different. Such Grantor’s place of business or (if it has more than
one place of business) its chief executive office (if such Grantor is an organization) is located
in a jurisdiction that has adopted the UCC or whose laws generally require that information
concerning the existence of nonpossessory security interests be made generally available in a
filing, recording or registration system as a condition or result of the security interest
obtaining priority over the rights of a lien creditor with respect to the collateral.

          6.04. Representations in the Credit Agreement. In the case of each Guarantor, the
representations and warranties set forth in Section 4 of the Credit Agreement as they relate to
such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct in all material respects, and the Secured
Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided
that each reference in each such representation and warranty to the Borrower’s knowledge shall, for
the purposes of this Section 6.04, be deemed to be a reference to such Guarantor’s
knowledge.

          6.05. Title to Collateral. The Collateral of such Grantor is owned by such Grantor
free and clear of any Lien, except for Liens expressly permitted pursuant to the Credit Agreement.
Such Grantor has not filed or consented to the filing of (a) any financing statement or analogous
document under the UCC or any other applicable laws covering any of its Collateral, (b) any
assignment in which such Grantor assigns any Collateral or any security agreement or similar
instrument covering any Collateral with the PTO or the Copyright Office or (c) any assignment in
which such Grantor assigns any Collateral or any security agreement or similar instrument covering
any Collateral with any foreign governmental, municipal or other office, which financing statement
or analogous document, assignment, security agreement or similar instrument is still in effect,
except, in each case, with respect to Liens permitted pursuant to the Credit Agreement.

          6.06. Nature of Collateral. None of the Collateral of such Grantor constitutes, or is
the proceeds of, farm products and none of the Collateral has been purchased or will be used by
such Grantor primarily for personal, family or household purposes, and as of the Closing Date,
except as indicated in the Perfection Certificate:

               (a) none of the account debtors or other persons obligated on any of the Collateral of such
Grantor is a governmental authority subject to the Federal Assignment of Claims Act or similar
state or local statute requiring governmental consent to assign Receivables;

               (b) such Grantor holds no commercial tort claims;

               (c) such Grantor has no deposit accounts or other bank accounts;

               (d) such Grantor owns no motor vehicles;

               (e) such Grantor has no securities accounts or securities entitlements or commodities accounts
or commodities contracts;

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               (f) such Grantor holds no interest in, title to or power to transfer, any Patents, Patent
Licenses, Trademarks, Trademark Licenses, Trade Secrets, Trade Secret Licenses, Copyrights or
Copyright Licenses; and

               (g) such Grantor holds no interest in, title to or power to transfer any Intellectual Property
that is eligible for registration in the PTO or the Copyright Office.

          6.07. Validity of Security Interest. Except with respect to assets which in the
aggregate for all Grantors do not have a value exceeding $1,000,000, (a) the Security Interest
granted by such Grantor constitutes a legal and valid security interest in all of the Collateral of
such Grantor securing the payment and performance of the Secured Obligations and (b) upon the
giving of value, the filing of financing statements describing the Collateral in the offices listed
on the Perfection Certificate, the recording in the PTO of the Trademark Security Agreement
Supplement and the Patent Security Agreement Supplement and in the Copyright Office of the
Copyright Security Agreement Supplement, the Security Interest will be valid, enforceable and
perfected in all Collateral of such Grantor in which a security interest can be perfected by the
Secured Party filing a financing statement or making such a recording. The Security Interest is
and shall be prior to any other Lien on the Collateral, other than Liens permitted to be prior to
the Security Interest under the Credit Agreement.

          6.08. Perfection Certificate, Intellectual Property Filings.

               (a) All information set forth on the Perfection Certificate is accurate and complete in all
material respects.

               (b) A fully executed Trademark Security Agreement Supplement containing a description of all
Collateral of such Grantor consisting of United States registered Trademarks (and Trademarks for
which United States registration applications are pending) have been delivered to the Secured Party
for recording by the PTO, as necessary, pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C.
§ 205 and the regulations thereunder, as applicable.

          6.09. Investment Property.

               (a) The shares of Pledged Stock pledged by such Grantor hereunder constitute all of the issued
and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or,
in the case of Excluded Foreign Subsidiary Voting Stock, 65% of the outstanding Excluded Foreign
Subsidiary Voting Stock of each relevant Issuer.

               (b) All the shares of the Pledged Stock pledged by such Grantor have been duly and validly
issued and are fully paid and nonassessable.

               (c) The terms of any uncertificated limited liability company interests and partnership
interests included in the Pledged Stock expressly provide that they are securities governed by
Article 8 of the Uniform Commercial Code in effect from time to time in the “issuer’s jurisdiction”
of each Issuer thereof (as such term is defined in the UCC in effect in such jurisdiction).

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               (d) Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Pledged Securities pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except the Security Interest created by this Agreement or otherwise
permitted by the Credit Agreement.

          6.10. Receivables. No amount exceeding $1,000,000 and payable to such Grantor under
or in connection with any Receivable is evidenced by any instrument or chattel paper which has not
been delivered to the Administrative Agent.

     Section 7. Covenants. Each Grantor covenants and agrees with the Administrative
Agent, in each case at such Grantor’s own cost and expense, as follows:

          7.01. Locations. Upon the reasonable request of the Administrative Agent, each
Grantor shall deliver to the Administrative Agent a list of any locations of Collateral held by the
Borrower or a Domestic Subsidiary thereof that is not set forth in a Perfection Certificate.

          7.02. Covenants in Credit Agreement. Each Guarantor shall take, or shall refrain from
taking, as the case may be, each action that is necessary to be taken or not taken, as the case may
be, so that no Default or Event of Default is caused by the failure to take such action or to
refrain from taking such action by such Guarantor or any of its Subsidiaries.

          7.03. Promissory Notes and Tangible Chattel Paper. If such Grantor, together with the
other Grantors, shall at any time hold or acquire any promissory notes (other than those made by an
employee of such Grantor) or tangible chattel paper in an aggregate principal amount of more than
$1,000,000, such Grantor shall forthwith endorse, assign and deliver the same to the Administrative
Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the
Administrative Agent may from time to time specify to be held by the Administrative Agent as
Collateral pursuant to this Agreement.

          7.04. Investment Property.

               (a) If any of the Collateral shall be or become evidenced or represented by an uncertificated
security, such Grantor shall cause the Issuer thereof either (i) to register the Administrative
Agent as the registered owner of such uncertificated security, upon original issue or registration
of transfer or (ii) to agree in writing with such Grantor and the Administrative Agent that such
Issuer will comply with instructions with respect to such uncertificated security originated by the
Administrative Agent without further consent of such Grantor, such agreement (an
“Uncertificated Securities Control Agreement”) to be in a form reasonably acceptable to the
Administrative Agent.

               (b) If any of the Collateral shall be or become evidenced or represented by a security
entitlement, such Grantor shall cause the securities intermediary with respect to such security
entitlement either (i) to identify in its records the Administrative Agent as having such security
entitlement against such securities intermediary or (ii) to agree in writing with such Grantor and
the Administrative Agent that such securities intermediary will comply with entitlement orders
originated by the Administrative Agent without further consent of such Grantor, such agreement (a
“Securities Account Control Agreement”) to be in a form reasonably acceptable to the
Administrative Agent.

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               (c) If any of the Collateral shall be or become evidenced or represented by a commodity
contract, such Grantor shall cause the commodity intermediary with respect to such commodity
contract to agree in writing with such Grantor and the Administrative Agent that such commodity
intermediary will apply any value distributed on account of such commodity contract as directed by
the Administrative Agent without further consent of such Grantor, such agreement (a “Commodity
Contract Control Agreement”) to be in a form reasonably acceptable to the Administrative Agent.

               (d) If any of the Collateral shall be or become evidenced or represented by or held in a
securities account or a commodity account, such Grantor shall, in the case of a securities account,
comply with subsection (b) of this Section 7.04 with respect to all security entitlements
carried in such securities account and, in the case of a commodity account, comply with subsection
(c) of this Section 7.04 with respect to all commodity contracts carried in such commodity
account.

               (e) If such Grantor shall receive any stock or other ownership certificate (including, without
limitation, any certificate representing a stock dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in connection with any
reorganization), option or rights in respect of the Capital Stock of any Issuer, whether in
addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other
ownership interests in the Pledged Stock, or otherwise in respect thereof, such Grantor shall
accept the same as the agent of the Secured Parties, hold the same in trust for the Secured Parties
and deliver the same forthwith to the Administrative Agent in the exact form received, duly
endorsed by such Grantor to the Administrative Agent, if required, together with an undated stock
power covering such certificate duly executed in blank by such Grantor and with, if the
Administrative Agent so requests, signature guaranteed, to be held by the Administrative Agent,
subject to the terms hereof, as additional collateral security for the Secured Obligations.

               (f) Subject to Section 7.04(h) hereof, such Grantor shall be entitled:

                    (i) to exercise, in its sole discretion, the voting power with respect to the Pledged Stock of
such Grantor, and for that purpose the Administrative Agent shall (if any Pledged Stock shall be
registered in the name of the Administrative Agent or its nominee) execute or cause to be executed
from time to time, at the expense of such Grantor, such proxies or other instruments in favor of
such Grantor or its nominee, in such form and for such purposes as shall be reasonably required by
such Grantor and shall be specified in a written request therefor, to enable it to exercise such
voting power with respect to the Pledged Stock; and

                    (ii) except as otherwise provided in paragraphs (g) and (h) of this Section 7.04, to
receive and retain for its own account any and all payments made in respect of the Pledged
Securities to the extent such are permitted pursuant to the terms of the Credit Agreement.

               (g) Any sums paid upon or in respect of the Pledged Securities upon the liquidation or
dissolution of the Borrower shall be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Secured Obligations, and in case

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any distribution of capital shall be made on or in respect of the Pledged Securities or any
property shall be distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization
thereof, the property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the Administrative Agent to be held
by it hereunder as additional collateral security for the Secured Obligations. If any sums of
money or property so paid or distributed in respect of the Pledged Securities shall be received by
such Grantor, such Grantor shall, until such money or property is paid or delivered to the
Administrative Agent, hold such money or property in trust for the Secured Parties, segregated from
other funds of such Grantor, as additional collateral security for the Secured Obligations.

               (h) Upon the occurrence and during the continuance of any Event of Default and following a
single written notice thereof from the Administrative Agent to the Borrower referring to this
Section 7.04(h), all rights of such Grantor to exercise or refrain from exercising the
voting and other consensual rights that it would otherwise be entitled to exercise pursuant to
Section 7.04(f)(1) hereof and to receive the payments pursuant to Section
7.04(f)(ii) hereof shall cease, and thereupon the Administrative Agent shall be entitled to
exercise all voting power with respect to the Pledged Securities and to receive and retain, as
additional collateral hereunder, any and all such payments any time declared or paid upon any of
the Pledged Securities during such an Event of Default and otherwise to act with respect to the
Pledged Securities as outright owner thereof.

               (i) At any time and from time to time with respect to Pledged Securities other than Pledged
Stock of a Subsidiary of the Borrower and at any time and from time to time during the continuance
of an Event of Default with respect to Pledged Stock of a Subsidiary of the Borrower, the
Administrative Agent may cause all or any of the Pledged Securities to be transferred to or
registered in its name or the name of its nominee or nominees.

               (j) Without the prior written consent of the Administrative Agent, such Grantor will not enter
into any agreement or undertaking expressly restricting the foreclosure of the Administrative
Agent’s Security Interest in any of the Investment Property or Proceeds thereof or any interest
therein.

               (k) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 7.04(e) or Section 7.04(g) with respect to the Pledged Securities issued by
it and (iii) the terms of Section 12.04(c) shall apply to it, mutatis mutandis, with
respect to all actions that may be required of it with respect to the Pledged Securities issued by
it. Each Grantor which is an Issuer consents to the grant of a Security Interest in Capital Stock
of such Issuer the exercise of rights by the Administrative Agent in respect of such Capital Stock,
including (to the extent permitted hereunder) the foreclosure thereon and the Administrative Agent,
its nominee or transferee becoming a partner or member of any such Issuer that is a partnership or
limited liability company.

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          7.05. Collateral in the Possession of a Bailee. If any goods with a value in excess
of $1,000,000 are at any time in the possession of a bailee, such Grantor shall use commercially
reasonable efforts to notify the Administrative Agent thereof and, if reasonably requested by the
Administrative Agent, shall promptly obtain an acknowledgement from such bailee, in form and
substance reasonably satisfactory to the Administrative Agent, that such bailee holds such
Collateral for the benefit of the Secured Parties.

          7.06. Electronic Chattel Paper and Transferable Records. If such Grantor, together
with the other Grantors, shall at any time hold or acquire interests 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, in excess of $1,000,000 in
the aggregate, 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 Section 9-105 of the UCC, 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 shall 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 such Grantor to make alterations
to the electronic chattel paper or transferable record permitted under Section 9-105 of the UCC 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, 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.

          7.07. Letter-of-Credit Rights. If such Grantor, together with the other Grantors,
shall at any time be beneficiaries under one or more letters of credit, now or hereafter issued,
having aggregate undrawn amounts of more than $5,000,000, such Grantor shall promptly notify the
Administrative Agent thereof and, at the request and option of the Administrative Agent, such
Grantor shall use commercially reasonable efforts to either (a) arrange, for the issuer and any
nominated person with respect to such letter of credit to consent, pursuant to an agreement (a
“Letter-of-Credit Rights Control Agreement”, and together with the Account Control
Agreement, Uncertificated Securities Control Agreement, Securities Accounts Control Agreement and
Commodities Contracts Control Agreement, the “Control Agreements”) or other authenticated
record with and in form and substance satisfactory to the Administrative Agent, to an assignment to
the Administrative Agent of the proceeds of any drawing under the letter of credit or (b) arrange
for the Administrative Agent to become the transferee beneficiary of the letter of credit.

          7.08. Commercial Tort Claims. If such Grantor shall at any time hold or acquire a
commercial tort claim in an amount in excess of $10,000,000, such Grantor shall promptly notify the
Administrative Agent in a writing signed by such Grantor of the brief details thereof and grant to
the Secured Parties 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.

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          7.09. Intellectual Property.

               (a) Except in any respect that would not reasonably be expected to have a Material Adverse
Effect:

                    (i) Such Grantor (either itself or through licensees) will (A) continue to use each material
Trademark on each and every trademark class of goods applicable to its current line as reflected in
its current catalogs, brochures and price lists in order to maintain such Trademark in full force
free from any claim of abandonment for non-use, (B) maintain as in the past the quality of products
and services offered under such Trademark and take all necessary steps to ensure that all licensed
users of such Trademark maintain as in the past such quality, (C) use such Trademark with the
appropriate notice of registration and all other notices and legends required by applicable
Requirements of Law, (D) not adopt or use any mark which is confusingly similar or a colorable
imitation of such Trademark unless the Administrative Agent, for the ratable benefit of the Secured
Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement and the
Intellectual Property Security Agreement, and (E) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark may become
invalidated or impaired in any way.

                    (ii) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material Patent may become forfeited, abandoned or dedicated to the public.

                    (iii) Such Grantor (either itself or through licensees) (A) will employ each material
Copyright and (B) will not (and will not permit any licensee or sublicensee thereof to) do any act
or knowingly omit to do any act whereby any material portion of the Copyrights may become
invalidated or otherwise impaired. Such Grantor will not (either itself or through licensees) do
any act whereby any material portion of the Copyrights may fall into the public domain.

                    (iv) Such Grantor (either itself or through licensees) will not do any act that knowingly uses
any material Intellectual Property to infringe the intellectual property rights of any other
Person.

                    (v) Such Grantor (either itself or through licensees) will use proper statutory notice in
connection with the use of each material Patent, Trademark and Copyright included in the
Intellectual Property.

                    (vi) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the PTO, the Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, to maintain and pursue each application (and to
obtain the relevant registration) and to maintain each registration of material Intellectual
Property, including, without limitation, the payment of required fees and taxes, the filing of
responses to office actions issued by the PTO and the Copyright Office, the filing of applications
for renewal or extension, the filing of affidavits of use and affidavits of incontestability, the
filing of divisional, continuation, continuation-in-part, reissue, and renewal applications or
extensions, the payment of maintenance fees, and the participation in

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interference, reexamination, opposition, cancellation, infringement and misappropriation
proceedings.

                    (vii) Such Grantor (either itself or through licensees) will not, without the prior written
consent of the Administrative Agent, discontinue use of or otherwise abandon any Intellectual
Property or abandon any right to file an application for letters patent, trademark, or copyright,
unless such Grantor shall have previously determined that such use or the pursuit or maintenance of
such Intellectual Property is no longer desirable in the conduct of such Grantor’s business and
that the loss thereof could not reasonably be expected to have a Material Adverse Effect and, in
which case, such Grantor shall give prompt notice of any such abandonment to the Administrative
Agent in accordance herewith.

                    (viii) In the event that any material Intellectual Property is infringed, misappropriated or
diluted by a third party, such Grantor shall (A) take such actions as such Grantor shall reasonably
deem appropriate under the circumstances to protect such Intellectual Property and (B) if such
Intellectual Property is of material economic value, promptly notify the Administrative Agent after
it learns thereof and sue for infringement, misappropriation or dilution, to seek injunctive relief
where appropriate and to recover any and all damages for such infringement, misappropriation or
dilution.

                    (ix) Such Grantor will do all things that are necessary and proper within such Grantor’s power
and control to keep each license of Intellectual Property held by such Grantor as licensee or
licensor in full force and effect except to the extent that (A) such Grantor has reasonably
determined that the failure to keep any such license in full force and effect could not be
reasonably expected to have a Material Adverse Effect or (B) any such license would expire by its
terms or is terminable at will by a Person other than Grantor.

               (b) Such Grantor will promptly notify the Administrative Agent if it knows or has reason to
know that any registration relating to any material Intellectual Property has been or could
reasonably be expected to be forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the PTO, the Copyright Office or any court or
tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any
Intellectual Property or such Grantor’s right to register the same or to own and maintain the same,
which could reasonably be expected to have a Material Adverse Effect.

               (c) Such Grantor agrees that, should it obtain an ownership interest in any item of
Intellectual Property which is not now a part of the Intellectual Property Collateral (the
“After-Acquired Intellectual Property”), (i) the provisions of Section 3 shall
automatically apply thereto, (ii) any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or symbolized thereby, shall
automatically become part of the Collateral, (iii) it shall provide the Administrative Agent
promptly upon request with an amended Perfection Certificate and amended schedules to the
applicable Intellectual Property Security Agreement reflecting the acquisition of such
After-Acquired Intellectual Property. Such Grantor authorizes the Administrative Agent to modify
this Agreement by amending the Perfection Certificate and to modify the schedules to the applicable
Intellectual Property Security Agreement if such Grantor fails to provide the Administrative

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Agent with satisfactory amended schedules hereto or thereto within the time period required
hereunder (and will cooperate with the Administrative Agent in effecting any such amendment) to
include any After-Acquired Intellectual Property which becomes part of the Intellectual Property
Collateral under this Section, and to record any such modified agreement with the PTO, the
Copyright Office, or any other applicable Governmental Authority.

               (d) Such Grantor assumes all responsibility and liability arising from the use of the
Intellectual Property and hereby indemnifies and holds the Secured Parties harmless from and
against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees arising out
of any alleged defect in any product manufactured, promoted or sold by such Grantor (or any
affiliate or subsidiary thereof) in connection with such Intellectual Property or out of the
manufacture, promotion, labeling, sale or advertisement of any such product by such Grantor (or any
affiliate or subsidiary thereof).

               (e) Such Grantor agrees to execute one or more applicable Intellectual Property Security
Agreements with respect to its Intellectual Property in order to record the Security Interest
granted herein to the Administrative Agent for the ratable benefit of the Secured Parties with the
PTO, the Copyright Office, and any other applicable Governmental Authority.

     Section 8. Collateral Protection Expenses; Preservation of Collateral.

          8.01. Expenses Incurred by the Administrative Agent. In its discretion, the
Administrative Agent may discharge taxes and other encumbrances at any time levied or placed on any
of the Collateral, make repairs thereto and pay any necessary filing fees or, if the debtor fails
to do so, insurance premiums. Each Grantor agrees to reimburse the Administrative Agent on demand
for any and all expenditures so made, and all sums disbursed by the Administrative Agent in
connection with this Section 8.01, including reasonable attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by such Grantor to the
Administrative Agent shall bear interest at the per annum rate specified in Section 16 and
shall constitute additional Secured Obligations. The Administrative Agent shall have no obligation
to any Grantor to make any such expenditures, nor shall the making thereof relieve any Grantor of
any default.

          8.02. Administrative Agent’s Obligations and Duties.

               (a) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each contract or agreement comprised in the Collateral provided by it to be observed or performed
by such Grantor thereunder. Neither the Administrative Agent nor any other Secured Party shall
have any obligation or liability under any such contract or agreement by reason of or arising out
of this Agreement or the receipt by the Administrative Agent or any other Secured Party of any
payment relating to any of the Collateral, nor shall the Administrative Agent or any other Secured
Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant
to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Administrative Agent or any other Secured Party in respect of the Collateral or as
to the sufficiency of any performance by any party under any such contract or agreement, to present
or file any claim, to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to the

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Administrative Agent or any other Secured Party or to which the Administrative Agent or any
other Secured Party may be entitled at any time or times.

               (b) The Administrative Agent’s sole duty with respect to the custody, safe keeping and
physical preservation of the Collateral in its possession, under Section 9-207 of the NYUCC or
otherwise, shall be to deal with such Collateral in the same manner as the Secured Party deals with
similar property for its own account.

               (c) Neither the Administrative Agent, nor any other Secured Party nor any of their respective
officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact
or affiliates shall be liable for failure to demand, collect or realize upon any of the Collateral
or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers conferred on the Secured
Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall
not impose any duty upon any Secured Party to exercise any such powers. The Secured Parties shall
be accountable only for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, partners, employees, agents,
attorneys and other advisors, attorneys-in-fact or affiliates shall be responsible to any Grantor
for any act or failure to act hereunder, except to the extent that any such act or failure to act
is found by a final and nonappealable decision of a court of competent jurisdiction to have
resulted from their respective gross negligence or willful misconduct.

               (d) Each Grantor acknowledges that the rights and responsibilities of the Administrative Agent
under this Agreement with respect to any action taken by the Administrative Agent or the exercise
or non-exercise by the Administrative Agent of any option, voting right, request, judgment or other
right or remedy provided for herein or resulting or arising out of this Agreement shall, as between
the Administrative Agent and the other Secured Parties, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among them, but, as
between the Administrative Agent and the Grantors, the Administrative Agent shall be conclusively
presumed to be acting as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any
inquiry respecting such authority.

          8.03. Duties as to Pledged Securities.

               (a) With respect to any calls, conversions, exchanges, redemptions, offers, tenders or similar
matters relating to any such Pledged Securities (herein called “Events”), any duty in
connection therewith imposed on the Administrative Agent by applicable law shall be fully satisfied
if:

                    (i) the Administrative Agent exercises reasonable care to ascertain the occurrence and to give
reasonable notice to the applicable Grantor of any Events applicable to any Pledged Securities that
are registered and held in the name of Secured Party or its nominee;

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                    (ii) the Administrative Agent gives the applicable Grantor reasonable notice of the occurrence
of any Events of which the Administrative Agent has received actual knowledge, which Events are
applicable to any securities that are in bearer form or are not registered and held in the name of
the Administrative Agent or its nominee (each Grantor agreeing to give the Administrative Agent
reasonable notice of the occurrence of any Events of which such Grantor has knowledge, which Events
are applicable to any securities in the possession of the Administrative Agent); and

                    (iii) the Administrative Agent endeavors to take such action with respect to any of the Events
as the applicable Grantor may reasonably and specifically request in writing in sufficient time for
such action to be evaluated and taken or, if the Administrative Agent reasonably believes that the
action requested would adversely affect the value of the Pledged Securities as collateral or the
collection of the Secured Obligations, or would otherwise prejudice the interests of any Secured
Party, the Administrative Agent gives reasonable notice to such Grantor that any such requested
action will not be taken and, if the Administrative Agent makes such determination or if such
Grantor fails to make such timely request, the Administrative Agent takes such other action as it
reasonably deems advisable in the circumstances.

               (b) Except as hereinabove specifically set forth, neither the Administrative Agent nor any
other Secured Party shall have any further obligation to ascertain the occurrence of, or to notify
any Grantor with respect to, any Events and shall not be deemed to assume any such further
obligation as a result of the establishment by the Administrative Agent or any other Secured Party
of any internal procedures with respect to any securities in its possession, nor shall the
Administrative Agent or any other Secured Party be deemed to assume any other responsibility for,
or obligation or duty with respect to, any Pledged Securities or its use of any nature or kind, or
any matter or proceedings arising out of or relating thereto, including, without limitation, any
obligation or duty to take any action to collect, preserve or protect its or any Grantor’s rights
in the Pledged Securities or against any prior parties thereto, but the same shall be at such
Grantor’s sole risk and responsibility at all times.

               (c) Nothing contained in this Section 8.03 shall be deemed to create any obligation in
respect of Events on the Administrative Agent, the purpose of this Section 8.03 being
solely to provide standards, in the event that applicable law imposes any obligations on the
Administrative Agent as to Events.

          8.04. Use of Collateral. With respect to any Collateral in the possession of the
Administrative Agent or any other Secured Party, or a bailee or other third party holding on its
behalf, the Administrative Agent or such other Secured Party may use or operate such Collateral in
any reasonable manner and to the extent determined by the Administrative Agent or such Secured
Party.

     Section 9. Securities and Deposits. Subject to Section 7.04, whether or not any
Secured Obligations are due, the Administrative Agent may after the occurrence and during the
continuance of an Event of Default demand, sue for, collect, or make any settlement or compromise
which it deems desirable with respect to the Collateral. Regardless of the adequacy of Collateral
or any other security for the Secured Obligations, any deposits or other sums at any

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time credited by or due from the Administrative Agent or any other Secured Party to any
Grantor may at any time be applied to or set off against any of the Secured Obligations whether or
not due and owing.

     Section 10. Notification to Account Debtors and Other Persons Obligated on
Collateral. If an Event of Default shall have occurred and be continuing, each Grantor shall,
at the request of the Administrative Agent, notify account debtors and other persons obligated on
any of the Collateral of such Grantor of the Security Interest in any account, chattel paper,
general intangible, instrument or other claims constituting Collateral that payment thereof is to
be made directly to the Administrative Agent or to any financial institution designated by the
Administrative Agent as the Administrative Agent’s agent therefor, and the Administrative Agent may
itself, if an Event of Default shall have occurred and be continuing, without notice to or demand
upon any Grantor, so notify account debtors and other persons obligated on Collateral. After the
making of such a request or the giving of any such notification, each Grantor shall hold any
proceeds of collection of accounts, chattel paper, general intangibles, instruments and other
claims constituting Collateral received by the Grantor as trustee for the Secured Parties without
commingling the same with other funds of the Grantor and shall turn the same over to the
Administrative Agent in the identical form received, together with any necessary endorsements or
assignments. If an Event of Default shall have occurred and be continuing, the Administrative
Agent may apply the proceeds of collection of accounts, chattel paper, general intangibles,
instruments and other claims constituting Collateral received by the Administrative Agent or any
other Secured Party to the Secured Obligations or hold such proceeds as additional Collateral, at
the option of the Administrative Agent. The provisions of Section 9-209 of the NYUCC shall not
apply to any account, chattel paper or payment intangible as to which notification of assignment
has been sent to the account debtor or other person obligation on the Collateral, whether under
this Section 10, Section 11 or Section 12.

     Section 11. Power of Attorney.

          11.01. Appointment and Powers of Administrative Agent. Each Grantor hereby
irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of such Grantor or in
its own name, for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any or all of the following:

               (a) in the name of such Grantor or its own name, or otherwise, take possession of and endorse
and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys
due under any Receivable or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise deemed appropriate by the
Administrative Agent for the purpose of collecting any and all such moneys due under any Receivable
or with respect to any other Collateral whenever payable;

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          (b) in the case of any Intellectual Property, execute and deliver, and have recorded, any and
all agreements, instruments, documents and papers as the Administrative Agent may request to
evidence the Security Interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;

          (c) pay or discharge taxes and Liens levied or placed on or threatened against the Collateral,
effect any repairs or provide any insurance and pay all or any part of the premiums therefor and
the costs thereof;

          (d) execute, in connection with any sale provided for in Section 12, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the Collateral;

          (e) exercise all rights of such Grantor as owner of the Pledged Securities or as party to any
partnership, limited liability company or similar agreement, including, without limitation, the
right to sign any and all amendments, instruments, certificates, proxies, and other writings and
exercise all voting and consent rights with respect to the Pledged Securities;

          (f) (1) direct any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct; (2) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express
bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the Collateral; (4) commence
and prosecute any suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor
with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the Administrative
Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill
of the business to which any such Copyright, Patent or Trademark pertains) throughout the world for
such term or terms, on such conditions, and in such manner, as the Administrative Agent shall in
its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement
with respect to or otherwise deal with any of the Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do, at the
Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time, all
acts and things which the Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Security Interest therein and to effect the intent of this Agreement, all as
fully and effectively as such Grantor might do; and

          (g) to the extent that such Grantor’s authorization given in Section 4 is not sufficient, to
file such financing statements or similar documents under the laws of any jurisdiction with respect
hereto, with or without such Grantor’s signature, or a photocopy of this Agreement in substitution
for a financing statement or such other document, as the

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Administrative Agent may deem appropriate and to execute in such Grantor’s name such financing
statements, other such documents and amendments thereto and continuation statements which may
require such Grantor’s signature. Anything in this Section 11.01 to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any rights under the
power of attorney provided for in this Section 11.01 (other than under paragraph (g) of
this Section 11.01) unless an Event of Default shall have occurred and be continuing and,
in the case of paragraph (e) of this Section 11.01 until the notice referred to in
Section 7.04(h) has been given.

          11.02. Failure of Grantor to Perform. If any Grantor fails to perform or comply with
any of its agreements contained herein, the Administrative Agent, at its option, but without any
obligation so to do, may following not less than five (5) days’ prior written notice to the
Borrower, perform or comply, or otherwise cause performance or compliance, with such agreement.

          11.03. Expenses of Attorney-in-Fact. The expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this Section 11, together
with interest thereon at a rate per annum equal to the rate per annum at which interest would then
be payable on past due Base Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.

          11.04. Ratification by Grantor. To the extent permitted by law, each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this
Section 11. This power of attorney is a power coupled with an interest and is irrevocable.

          11.05. No Duty on Secured Party. The powers conferred on the Administrative Agent,
its directors, officers and agents pursuant to this Section 11 are solely to protect the
Secured Parties’ interests in the Collateral and shall not impose any duty upon any of them to
exercise any such powers. Each Secured Party shall be accountable only for the amounts that it
actually receives as a result of the exercise of such powers, and neither it nor any of its
officers, directors, employees or agents shall be responsible to any Grantor for any act or failure
to act, except for such Secured Party’s own gross negligence or willful misconduct.

     Section 12. Remedies.

          12.01. Default. Grantors shall be in default under this Agreement (a) whenever any
Event of Default has occurred and is continuing (and each of the Grantors shall thereupon be in
default hereunder without regard to whether or to what degree any Grantor individually may have
caused, participated in, or had any knowledge of the occurrence of such Event of Default) and (b)
at all times after the Loans have become due and payable (giving effect to any grace period),
whether at maturity, upon acceleration pursuant to the Credit Agreement or otherwise.

          12.02. Remedies Upon Default. At any time when any Grantor is in default under this
Agreement as set forth in Section 12.01, the Administrative Agent may exercise and enforce,
in any order, (i) each and all of the rights and remedies available to a secured party upon default
under the NYUCC or any other applicable UCC or other applicable law, (ii) each and all

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of the rights and remedies available to it under the Credit Agreement or any other Loan
Document and (iii) each and all of the following rights and remedies:

               (a) Collection Rights. Without notice to any Grantor or any other Loan Party, the
Administrative Agent may notify any or all account debtors and obligors on any accounts,
instruments, general intangibles or other claims constituting Collateral of the Secured Parties’
Security Interests therein and may direct, demand and enforce payment thereof directly to the
Administrative Agent. The provisions of Section 9-209 of the NYUCC shall not apply to any account,
chattel paper or payment intangible as to which notification of assignment has been sent to the
account debtor.

               (b) Taking Possession. The Administrative Agent may (i) enter upon any and all
premises owned or leased by any Grantor where Collateral is located (or believed by the
Administrative Agent to be located), with or (to the fullest extent permitted by law) without
judicial process and without any obligation to pay rent, (ii) prior to the disposition of the
Collateral, store, process, repair or recondition the Collateral or otherwise prepare the
Collateral for disposition in any manner to the extent the Administrative Agent deems appropriate,
(iii) take possession of any Grantor’s premises or place custodians in exclusive control thereof,
remain on such premises and use the same and any Grantor’s equipment for the purpose of completing
any work in process or otherwise preparing the Collateral for sale or selling or otherwise
transferring the Collateral, (iv) take possession of all items of Collateral that are not then in
its possession, either upon such premises or by removal from such premises, and (v) require any
Grantor or the Person in possession thereof to deliver such Collateral to the Administrative Agent
at one or more locations designated by the Administrative Agent and reasonably convenient to it and
each Grantor owning an interest therein.

               (c) Foreclosure. The Administrative Agent may sell, lease, license or otherwise
dispose of or transfer any or all of the Collateral or any part thereof in one or more parcels at
public sale or in private sale or transaction, on any exchange or market or at the Administrative
Agent’s offices or on any Grantor’s premises or at any other location, for cash, on credit or for
future delivery, and may enter into all contracts necessary or appropriate in connection therewith,
without any notice whatsoever unless required by law. Where permitted by law, one or more of the
Secured Parties may be the purchasers at any such sale and in such event, if such bid is made by
all of the Lenders or otherwise whenever a credit bid is expressly permitted under the Credit
Agreement or approved in writing by the Administrative Agent and the Required Lenders, the Secured
Parties bidding at such sale may bid part or all of the Obligations owing to them without necessity
of any cash payment on account of the purchase price, even though any other purchaser at such sale
is required to bid a purchase price payable in cash. Each Grantor agrees that at least ten (10)
calendar days’ written notice to such Grantor of the time and place of any public sale of
Collateral owned by it (or, to the extent such Grantor is entitled by law to notice thereof, the
public sale of any other Collateral), or the time after which any private sale of Collateral owned
by it (or, to the extent such Grantor is entitled by law to notice thereof, the private sale of any
other Collateral) is to be made, shall be commercially reasonable. For purposes of such notice, to
the fullest extent permitted by law (i) each Grantor waives notice of any sale of Collateral owned
by any other Grantor and (ii) each Grantor agrees that notice given to the Borrower shall
constitute notice given to such Grantor. The giving of notice of any such sale or other
disposition shall not obligate the Administrative Agent to

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proceed with the sale or disposition, and any such sale or disposition may be postponed or
adjourned from time to time, without further notice.

               (d) Voting Rights. Subject to Section 7.04(h), the Administrative Agent may
exercise any and all rights of any Grantor as the owner of any Pledged Securities, including,
without limitation, voting rights, rights to give or withhold consent under any agreement under
which any Pledged Security is issued and all other rights referred to in Section 11.01(e).

               (e) Use of Intellectual Property. The Administrative Agent may, on a royalty-free
basis, use and license use of any Trademark, Trade Secret, trade name, trade style, Copyright,
Patent, technical knowledge or process or other Intellectual Property owned, held or used by any
Grantor in respect of any Collateral as to which any right or remedy of the Administrative Agent is
exercised or enforced. In addition, the Administrative Agent may exercise and enforce such rights
and remedies for collection as may be available to it by law or agreement. Each Grantor grants a
license pursuant to Section 12.03 in connection therewith.

          12.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Administrative Agent to exercise rights and remedies under this Section 12 at such time as
the Administrative Agent shall be lawfully and otherwise 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 such Grantor) to use,
license or sub-license any of the Collateral consisting of Intellectual Property now owned or
hereafter acquired by the Grantor to the extent that such Grantor is not legally or contractually
prohibited from doing so (Grantor agreeing to use commercially reasonable efforts not to enter
into, after the Closing Date, any such contractual prohibition), 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 shall be exercised, at
the Administrative Agent’s option, only upon the occurrence and during the continuation of an Event
of Default; provided that any license, sub-license or other transaction entered into by the
Administrative Agent in accordance herewith shall be binding upon each Grantor notwithstanding any
subsequent cure, waiver or other termination of an Event of Default.

          12.04. Waivers by Grantors. Each Grantor hereby irrevocably waives (a) all rights of
redemption from any foreclosure sale, (b) the benefit of all valuation, appraisal, exemption and
moratorium laws, (c) to the fullest extent permitted by law, all rights to notice or a hearing
prior to the exercise by the Administrative Agent of its right to take possession of any
Collateral, whether by self-help or by legal process and any right to object to the Administrative
Agent taking possession of any Collateral by self-help, and (d) if the Administrative Agent seeks
to obtain possession of any Collateral by replevin, claim and delivery, attachment, levy or other
legal process, (i) any notice or demand for possession prior to the commencement of legal
proceedings, (ii) the posting of any bond or security in any such proceedings, and (iii) any
requirement that the Administrative Agent retain possession and not dispose of any Collateral until
after a trial or final judgment in such proceedings.

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          12.05. Application of Proceeds. Except as expressly provided elsewhere in this
Agreement, all proceeds received by the Administrative Agent in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral may, in the discretion of the
Administrative Agent, be held by the Administrative Agent as Collateral for, or then, or at any
other time thereafter, applied in full or in part by the Administrative Agent against, the Secured
Obligations in the following order of priority:

          FIRST: to the payment of all reasonable out of pocket costs and expenses of such sale,
collection or other realization, including reasonable compensation to the Administrative
Agent and its agents and counsel, and all other reasonable expenses, liabilities and
advances made or incurred by the Administrative Agent in connection therewith, and all
amounts for which the Administrative Agent is entitled to indemnification hereunder and all
reasonable advances made by the Administrative Agent hereunder for the account of any
Grantor, and to the payment of all reasonable out of pocket costs and expenses paid or
incurred by the Administrative Agent in connection with the exercise of any right or remedy
hereunder, all in accordance with Section 18.09;

          SECOND: to the payment of all other Secured Obligations (for the ratable benefit of the
holders thereof) then due and payable;

          THIRD: to any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC;
and

          FOURTH, to the payment to or upon the order of the Grantor entitled thereto, or to
whomsoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct, of any surplus then remaining from such proceeds.

          12.06. Surplus, Deficiency. Any surplus proceeds of any sale or other disposition by
the Administrative Agent of any Collateral remaining after discharge of the Credit Agreement and
after all Secured Obligations are paid in full and in cash and any payments required by Sections
9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC are paid in full shall be paid over to the Grantor
entitled thereto, or to whomever may be lawfully entitled to receive such surplus or as a court of
competent jurisdiction may direct, but prior to termination and discharge of the Credit Agreement,
such surplus proceeds may be retained by the Administrative Agent and held as Collateral until
termination and discharge of the Credit Agreement. The Borrower and each Guarantor shall be and
remain liable for any deficiency.

          12.07. Information Related to the Collateral. If, during the continuance of an Event
of Default, the Administrative Agent determines to sell or otherwise transfer any Collateral, each
Grantor shall, and shall cause any Person controlled by it to, furnish to the Administrative Agent
all information the Administrative Agent may request that pertains or could pertain to the value or
condition of the Collateral or that would or might facilitate such sale or transfer. The
Administrative Agent shall have the right, notwithstanding any confidentiality obligation or
agreement otherwise binding upon it, freely (but not in violation of any law, including federal
securities laws) to disclose such information, and any and all other information (including
confidential information) pertaining in any manner to the Collateral or the assets, liabilities,
results of operations, business or prospects of any Secured Parties, freely to any

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Person that the Administrative Agent in good faith believes to be a potential or prospective
purchaser in such sale or transfer, without liability for any disclosure, dissemination or use that
may be made as to such information by any such Person.

          12.08. Sale Exempt from Registration. The Administrative Agent shall be entitled at
any such sale or other transfer, if it deems it advisable to do so, to restrict the prospective
bidders or purchasers to Persons who will provide assurances satisfactory to the Administrative
Agent that the Collateral may be offered and sold to them without registration under the Securities
Act, and without registration or qualification under any other applicable state or federal law.
Upon the 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. The
Administrative Agent may solicit offers to buy the Collateral, or any part of it, from a limited
number of investors deemed by the Administrative Agent, in its good faith judgment or in good faith
reliance upon advice of its counsel, to meet the requirements to purchase securities under
Regulation D promulgated under the Securities Act (or any other regulation of similar import). If
the Administrative Agent solicits such offers from such investors, then the acceptance by the
Administrative Agent of the highest offer obtained from any of them shall be deemed to be a
commercially reasonable method of disposition of the Collateral.

          12.09. Rights and Remedies Cumulative. The rights provided for in this Agreement and
the other Loan Documents are cumulative and are not exclusive of any other rights, powers or
privileges or remedies provided by law or in equity, or under any other instrument, document or
agreement. The Administrative Agent may exercise and enforce each right and remedy available to it
either before or concurrently with or after, and independently of, any exercise or enforcement of
any other right or remedy of the Administrative Agent or any Secured Party against any Person or
property. All such rights and remedies shall be cumulative, and no one of them shall exclude or
preclude any other.

          12.10. No Direct Enforcement by Secured Parties. The Administrative Agent may freely
exercise and enforce any and all of its rights and remedies hereunder, for the benefit of the
Secured Parties. No Secured Party, other than the Administrative Agent, shall have any independent
right to collect, take possession of, foreclose against or otherwise enforce the Security Interests
granted hereby.

     Section 13. Standards for Exercising Remedies.

          13.01. Commercially Reasonable Manner. To the extent that applicable law imposes
duties on the Administrative Agent to exercise remedies in a commercially reasonable manner, each
Grantor acknowledges and agrees that it is not commercially unreasonable for the Administrative
Agent (a) to fail to incur expenses reasonably deemed significant by the Administrative Agent to
prepare Collateral for disposition or otherwise to complete raw material or work in process into
finished goods or other finished products for disposition or to postpone any such disposition
pending any such preparation or processing; (b) to fail to obtain third party consents for access
to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be
collected or disposed of; (c) to fail to exercise collection remedies against account debtors or
other persons obligated on Collateral or to remove any Lien on or any adverse claims against

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Collateral; (d) to exercise collection remedies against account debtors and other persons
obligated on Collateral directly or through the use of collection agencies and other collection
specialists; (e) to advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature; (f) to contact other
persons, whether or not in the same business as such Grantor, for expressions of interest in
acquiring all or any portion of the Collateral; (g) to hire one or more professional auctioneers to
assist in the disposition of Collateral, whether or not the collateral is of a specialized nature;
(h) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of
the types included in the Collateral or that have the reasonable capability of doing so, or that
match buyers and sellers of assets; (i) to dispose of assets in wholesale rather than retail
markets; (j) to disclaim disposition warranties; (k) to purchase insurance or credit enhancements
to insure the Administrative Agent against risks of loss, collection or disposition of Collateral
or to provide to the Administrative Agent a guaranteed return from the collection or disposition of
Collateral; or (I) to the extent deemed appropriate by the Administrative Agent, to obtain the
services of other brokers, investment bankers, consultants and other professionals to assist the
Administrative Agent in the collection or disposition of any of the Collateral. Each Grantor
acknowledges that the purpose of this Section 13 is to provide non-exhaustive indications of what
actions or omissions by the Administrative Agent would not be commercially unreasonable in the
Administrative Agent’s exercise of remedies against the Collateral and that other actions or
omissions by the Administrative Agent shall not be deemed commercially unreasonable solely on
account of not being indicated in this Section 13. Without limiting the foregoing, nothing
contained in this Section 13 shall be construed to grant any rights to any Grantor or to
impose any duties on the Administrative Agent that would not have been granted or imposed by this
Agreement or by applicable law in the absence of this Section 13.

          13.02. Standard of Care. The powers conferred on the Administrative Agent hereunder
are solely to protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the exercise of reasonable care in the custody of any
Collateral in its possession and the accounting for moneys actually received by it hereunder, the
Administrative Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or to protect, preserve, vote or exercise any rights
pertaining to any Collateral. The Administrative Agent shall be deemed to have exercised
reasonable care in the custody and preservation of Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which the Administrative Agent accords its own
property or if it selects, with reasonable care, a custodian to hold such Collateral on its behalf.

     Section 14. Waivers by Grantor; Obligations Absolute.

          14.01. Specific Waivers. Each Grantor waives demand, notice, protest, notice of
acceptance of this Agreement, notice of loans made, credit extended, Collateral received or
delivered or other action taken in reliance hereon and all other demands and notices of any
description.

          14.02. Obligations Absolute. All rights of the Administrative Agent hereunder, the
Security Interest and all obligations of the Grantors 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 Secured Obligations or any

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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 Secured 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
nonperfection of any Lien on other collateral, or any release or amendment or waiver of or consent
under or departure from or any acceptance of partial payment thereon and or settlement, compromise
or adjustment of any Secured Obligation or of any guarantee, securing or guaranteeing all or any of
the Secured Obligations, or (d) any other circumstance that might otherwise constitute a defense
available to, or a discharge of, any Grantor in respect of the Secured Obligations or this
Agreement.

     Section 15. Marshalling. The Administrative Agent shall not be required to marshal
any present or future collateral security (including but not limited to this Agreement and the
Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to
resort to such collateral security or other assurances of payment in any particular order, and all
of its rights hereunder and in respect of such collateral security and other assurances of payment
shall be cumulative and in addition to all other rights, however existing or arising. To the
extent that it lawfully may, each Grantor hereby agrees that it shall not invoke any law relating
to the marshalling of collateral which might cause delay in or impede the enforcement of the
Administrative Agent’s rights under this Agreement or under any other instrument creating or
evidencing any of the Secured Obligations or under which any of the Secured Obligations is
outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise
assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the
benefits of all such laws.

     Section 16. Interest. Until paid, all amounts due and payable by each Grantor
hereunder shall be a debt secured by the Collateral and shall bear, whether before or after
judgment, interest at a rate per annum equal to the rate per annum at which interest would then be
payable on past due Base Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by such Grantor, and such interest shall be payable by
such Grantor to the Administrative Agent on demand.

     Section 17. Reinstatement. The obligations of each Grantor pursuant to this
Agreement shall continue to be effective or automatically be reinstated, as the case may be, if at
any time payment of any of the Secured Obligations is rescinded or otherwise must be restored or
returned by the Administrative Agent or any other Secured Party upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of such Grantor or any other obligor or otherwise, all
as though such payment had not been made.

     Section 18. Miscellaneous.

          18.01. Notices. All notices, requests and demands to or upon the Administrative Agent
or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of
the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor
shall be addressed to such Guarantor at its notice address set forth beneath its signature to this
Agreement.

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          18.02. GOVERNING LAW, CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Each Grantor agrees that any
suit for the enforcement of this Agreement may be brought in the courts of the State of New York or
any federal court sitting therein and consents to the non-exclusive jurisdiction of such court and
to service of process in any such suit being made upon such Grantor by mail at the address
specified in Section 10.2 of the Credit Agreement or in the case of any Guarantor, beneath
its signature to this Agreement. Each Grantor hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such suit is brought in an
inconvenient court.

          18.03. WAIVER OF JURY TRIAL, ETC. EACH GRANTOR WAIVES ITS RIGHT TO A JURY TRIAL WITH
RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY LITIGATION OR DISPUTE DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR
THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. EXCEPT AS PROHIBITED BY LAW, EACH GRANTOR
WAIVES ANY RIGHT WHICH IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION OR DISPUTE REFERRED TO IN
THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. Each Grantor certifies that neither the
Administrative Agent, any other Secured Party nor any representative, agent or attorney of the
Administrative Agent or other Secured Party has represented, expressly or otherwise, that the
Administrative Agent or other Secured Party would not, in the event of litigation, seek to enforce
the foregoing waivers and acknowledges that, in entering into the Credit Agreement and the other
Loan Documents to which any Secured Party is a party, such Secured Party is relying upon, among
other things, the waivers and certifications contained in this Section 18.03.

          18.04. Counterparts. This Agreement may be executed in two or more separate
counterparts, each of which shall constitute an original and all of which shall collectively and
separately constitute one and the same agreement.

          18.05. Headings. The headings of each section of this Agreement are for convenience
only and shall not define or limit the provisions thereof.

          18.06. No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

          18.07. Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular provision in a

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particular jurisdiction shall not in and of itself affect the validity of such provision in
any other jurisdiction).

          18.08. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Grantors herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the Secured Parties and shall survive the execution and delivery of the Credit Agreement,
and the advance of all extensions of credit contemplated thereby, regardless of any investigation
made by any Secured Party, and shall continue in full force and effect until this Agreement shall
terminate (or thereafter to the extent provided herein).

          18.09. Fees and Expenses, Indemnification.

               (a) The Grantors, jointly and severally, agree to pay upon demand the amount of any and all
expenses, including the fees, disbursements and other charges of counsel and of any experts or
agents, which (i) any Secured Party may incur in connection with (x) collecting against any Grantor
under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights
under this Agreement and the other Loan Documents, (y) the exercise, enforcement or protection of
any of the rights of such Secured Party hereunder or (z) the failure of any Grantor to perform or
observe any of the provisions hereof, and (ii) the Administrative Agent may incur in connection
with (x) the administration of this Agreement (including the customary fees and charges of such
Secured Party for any audits conducted by it or on its behalf with respect to the accounts
receivable or inventory) or (y) the custody or preservation of, or the sale of, collection from or
other realization upon any of the Collateral.

               (b) Each Grantor agrees to pay, and to save the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the Borrower would be
required to do so pursuant to Section 10.5 of the Credit Agreement.

               (c) The agreements in this Section shall survive repayment of the Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents.

               (d) Each Grantor agrees that the provisions of Section 2.20 of the Credit Agreement
are hereby incorporated herein by reference, mutatis mutandis, and each Secured Party shall be
entitled to rely on each of them as if they were fully set forth herein.

          18.10. Binding Effect; Several Agreement. This Agreement is binding upon each Grantor
and the Secured Parties and their respective successors and permitted assigns, and shall inure to
the benefit of the Grantors, the Secured Parties and their respective successors and permitted
assigns, except that no Grantor shall have any right to assign or transfer its rights or
obligations hereunder or any interest herein, except as specifically permitted by the Credit
Agreement, without the prior written consent of the Administrative Agent (and any such assignment
or transfer shall be void).

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          18.11. Waivers; Amendment

               (a) No failure or delay of the Administrative Agent in exercising any power or right hereunder
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 Secured Parties hereunder and of the Secured Parties under the Credit Agreement and
other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provisions of this Agreement or consent to any departure by any
Grantor therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. No notice to or demand on any Grantor in any case shall entitle such
or any other Grantor 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 each
affected Grantor; provided, that any provision of this Agreement imposing obligations on
any Grantor may be waived by the Administrative Agent in a written instrument executed by the
Administrative Agent in accordance with Section 10.1 of the Credit Agreement.

          18.12. Set-Off. Each Grantor hereby irrevocably authorizes each Secured Party at any
time and from time to time while an Event of Default shall have occurred and be continuing, without
notice to such Grantor or any other Grantor, any such notice being expressly waived by each
Grantor, to set-off and appropriate and apply any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Secured Party to or for the credit or the account of
such Grantor, or any part thereof in such amounts as such Secured Party may elect, against and on
account of the obligations and liabilities of such Grantor to such Secured Party hereunder and
claims of every nature and description of such Secured Party against such Grantor, in any currency,
whether arising hereunder, under the Credit Agreement, any other Loan Document or otherwise, as
such Secured Party may elect, whether or not any Secured Party has made any demand for payment and
although such obligations, liabilities and claims may be contingent or unmatured. Each Secured
Party shall notify such Grantor promptly of any such setoff and the application made by such
Secured Party of the proceeds thereof, provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of each Secured Party under this
Section are in addition to other rights and remedies (including, without limitation, other rights
of set-off) which such Secured Party may have.

          18.13. Integration. This Agreement and the other Loan Documents represent the
agreement of the Grantors, the Administrative Agent and the other Secured Parties with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or
warranties by any Secured Party relative to subject matter hereof and thereof not expressly set
forth or referred to herein or in the other Loan Documents.

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          18.14. Acknowledgments. Each Grantor hereby acknowledges that:

               (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

               (b) no Secured Party has any fiduciary relationship with or duty to any Grantor arising out of
or in connection with this Agreement or any of the other Loan Documents, and the relationship
between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

               (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and
the Secured Parties.

          18.15. Additional Grantors and Guarantors. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 6.10 of the Credit Agreement shall
become a Grantor and Guarantor for all purposes of this Agreement upon execution and delivery by
such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

     18.16. Releases.

               (a) Notwithstanding anything to the contrary contained in the Credit Agreement, herein or in
any other Loan Document, upon request of the Borrower in connection with any Disposition of
Property permitted by the Loan Documents or upon the occurrence of any other circumstance referred
to in Section 10.15 of the Credit Agreement, the Administrative Agent shall (without notice to or
vote or consent of any Lender, or any affiliate of any Lender that is a party to any Specified
Hedge Agreement or any other Secured Party) take such actions as shall be required to release the
Security Interest in any Collateral being Disposed of in such Disposition, and to release any
guarantee obligations of any Person being Disposed of in such Disposition, to the extent necessary
to permit consummation of such Disposition in accordance with the Loan Documents. The Borrower
shall deliver to the Administrative Agent, at least five (5) Business Days prior to the date of the
proposed release, a written request for release identifying the relevant Collateral being Disposed
of in such Disposition and the terms of such Disposition.

               (b) If any of the Collateral shall be Disposed of by any Grantor in a transaction permitted by
the Credit Agreement, then the Administrative Agent, at the request and sole expense of such
Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such Collateral. At the
request and sole expense of the Borrower, a Subsidiary Guarantor shall be released from its
obligations hereunder in the event that all the Capital Stock of such Subsidiary Guarantor shall be
Disposed of in a transaction permitted by the Credit Agreement. The Borrower shall deliver to the
Administrative Agent, at least five (5) Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Subsidiary Guarantor and the terms of the
Disposition in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Borrower stating that

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such transaction is in compliance with the Credit Agreement and the other Loan Documents and
that the Proceeds of such Disposition will be applied in accordance therewith.

          18.17. Intercompany Debt.

               (a) Each Grantor hereby agrees that any intercompany Indebtedness or other intercompany
payables or receivables, or intercompany advances directly or indirectly made by or owed to such
Grantor by any other Grantor (collectively, “Intercompany Debt”), of whatever nature at any
time outstanding shall be subordinate and subject in right of payment to the prior payment in full
in cash of the Borrower Obligations. Each Grantor hereby agrees that following a single written
notice to the Borrower, such Grantor will not, while any Event of Default is continuing, accept any
payment, including by offset, on any Intercompany Debt until the Termination Date, in each case,
except with the prior written consent of the Administrative Agent.

               (b) In the event that any payment on any Intercompany Debt shall be received by a Grantor
other than as permitted by this Section 18.17 before the Termination Date, such Grantor
shall receive such payments and hold the same in trust for, segregate the same from its own assets
and shall immediately pay over to, the Administrative Agent for the benefit of the Administrative
Agent and Lenders all such sums to the extent necessary so that the Administrative Agent and the
Lenders shall have been paid in full, in cash, all Borrower Obligations owed or which may become
owing.

               (c) Upon any payment or distribution of any assets of any Grantor of any kind or character,
whether in cash, property or securities by set-off, recoupment or otherwise, to creditors in any
liquidation or other winding-up of such Grantor or in the event of any case, proceeding or other
action described in Section 8(f) of the Credit Agreement, the Administrative Agent and Lenders
shall first be entitled to receive payment in full in cash, in accordance with the terms of the
Borrower Obligations and of this Agreement, of all amounts payable under or in respect of such
Borrower Obligations, before any payment or distribution is made on, or in respect of, any
Intercompany Debt, in any such case, proceeding or other action, any distribution or payment, to
which the Administrative Agent or any Lender would be entitled except for the provisions hereof
shall be paid by such Grantor, or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other person making such payment or distribution directly to the Administrative Agent (for
the benefit of the Administrative Agent and the Lenders) to the extent necessary to pay all such
Borrower Obligations in full in cash, after giving effect to any concurrent payment or distribution
to the Administrative Agent and Lenders (or to the Administrative Agent for the benefit of the
Administrative Agent and Lenders).

          18.18. FCC Matters. Notwithstanding anything to the contrary in this Agreement or any
other Loan Document, the Administrative Agent’s and the Lenders’ remedies hereunder and under the
other Loan Documents are subject to compliance with the Communications Act of 1934, as amended, and
to all applicable rules, regulations and policies of the FCC, and neither the Administrative Agent
nor any Lender nor any other Secured Party will take any action pursuant to this Agreement or any
other Loan Document that would constitute or result in any assignment of an FCC License or any
transfer of control of the Borrower or any of its Subsidiaries or any Station if such assignment of
license or transfer of control would require

-38-

 

under then existing law (including the written rules and regulations promulgated by the FCC),
the prior approval of the FCC, without first obtaining such approval of the FCC. Without limiting
the generality of the foregoing, the parties hereto agree that to the extent required by law: (i)
voting rights with respect to the Collateral will remain with Grantors upon and following the
occurrence of an Event of Default unless any required prior approvals of the FCC to the transfer of
such voting rights to the Administrative Agent shall have been obtained; and (ii) prior to the
exercise of voting rights by a purchaser at any sale of the Collateral, the prior consent of the
FCC pursuant to 47 U.S.C. section 310(d) will be obtained.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

-39-

 

     IN WITNESS WHEREOF, each of the undersigned has caused this First Lien Guarantee and
Collateral Agreement to be duly executed and delivered as of the date first above written.

GRANTORS:

SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation

SPANISH BROADCASTING SYSTEM FINANCE CORPORATION

SPANISH BROADCASTING SYSTEM OF GREATER MIAMI, INC.

SPANISH BROADCASTING SYSTEM OF ILLINOIS, INC.

SPANISH BROADCASTING SYSTEM INC., a New Jersey corporation

SPANISH BROADCASTING SYSTEM OF SAN ANTONIO, INC.

ALARCON HOLDINGS, INC.

SPANISH BROADCASTING SYSTEM OF CALIFORNIA, INC.

SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Delaware corporation

SPANISH BROADCASTING SYSTEM OF FLORIDA, INC.

SBS OF GREATER NEW YORK, INC.

SBS FUNDING, INC.

SBS BAY AREA, LLC

SPANISH BROADCASTING SYSTEM NETWORK, INC.

SBS PROMOTIONS, INC.

SPANISH BROADCASTING SYSTEM SOUTHWEST, INC.

SPANISH BROADCASTING SYSTEM-SAN FRANCISCO, INC.

WRMA LICENSING, INC.

WXDJ LICENSING, INC.

WDEK LICENSING, INC.

WKIE LICENSING, INC.

WKIF LICENSING, INC.

WLEY LICENSING, INC.

WSKQ LICENSING, INC.

KLEY LICENSING, INC.

KSAH LICENSING, INC.

KZAB LICENSING, INC.

KZBA LICENSING, INC.

KPTI LICENSING, INC.

WCMQ LICENSING, INC.

KLAX LICENSING, INC.

WPAT LICENSING, INC.

KRZZ LICENSING, LLC.

KXOL LICENSING, INC.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Joseph A. Garcia
 	 
	 	 	Name:  	Joseph A. Garcia 	 
	 	 	Title:  	Chief Financial Officer, Executive Vice President and Secretary 	 

-40-

 

	 	 	 	 	 

Address for Notice:

2601 South Bayshore Drive, PH II

Coconut Grove, Florida 33133

Attention: Joseph A. Garcia

Telecopy: (305) 441-7861

Telephone: (305) 441-6901

Copy to:

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: William E. Wallace, Esq.

Telecopy: (212) 836-3598

Telephone: (212) 836-8556

Accepted: as to Sections 8.02 and 8.03

LEHMAN COMMERCIAL PAPER INC.

as Administrative Agent

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ V. Paul Arzouian
 	 
	 	 	Name:  	V. Paul Arzouian 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Address for Notice:

745 Seventh Avenue

New York, New York 10019

Attention: Paul Arzouian

Telecopy: (646) 758-4980

Telephone: (212) 526-5803

Copy to:

Dechert LLP

30 Rockefeller Plaza

New York, New York 10112-2200

Attention: Bonnie Barsamian, Esq.

Telecopy: (212) 249-9445

Telephone: (212) 698-3520

-41-exv10w4

 

 EXHIBIT 10.4

SECOND LIEN GUARANTEE AND COLLATERAL AGREEMENT

DATED AS OF JUNE 10, 2005

BY

SPANISH BROADCASTING SYSTEM, INC.

AND CERTAIN OF ITS SUBSIDIARIES,

AS GRANTORS,

IN FAVOR OF

LEHMAN COMMERCIAL PAPER INC.,

AS ADMINISTRATIVE AGENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 1.	 	DEFINITIONS
	 	 	1	 
	 	1.01.	 	 	Definition of Terms Used Herein Generally
	 	 	1	 
	 	1.02.	 	 	Definition of Certain Terms Used Herein
	 	 	1	 
	 	1.03.	 	 	Rules of Interpretation
	 	 	8	 
	SECTION 2.	 	GUARANTEE
	 	 	8	 
	 	2.01.	 	 	Guarantee
	 	 	8	 
	 	2.02.	 	 	Right of Contribution
	 	 	9	 
	 	2.03.	 	 	Subrogation
	 	 	9	 
	 	2.04.	 	 	Amendments, etc. with respect to the Borrower Obligations
	 	 	9	 
	 	2.05.	 	 	Guarantee Absolute and Unconditional
	 	 	10	 
	 	2.06.	 	 	Reinstatement
	 	 	11	 
	 	2.07.	 	 	Payments
	 	 	11	 
	SECTION 3.	 	GRANT OF SECURITY INTEREST
	 	 	11	 
	SECTION 4.	 	AUTHORIZATION TO FILE FINANCING STATEMENTS
	 	 	12	 
	SECTION 5.	 	RELATION TO OTHER SECURITY DOCUMENTS
	 	 	13	 
	 	5.01.	 	 	Patent and Trademark Security Agreement Supplements
	 	 	13	 
	 	5.02.	 	 	Copyright Security Agreement Supplement
	 	 	13	 
	SECTION 6.	 	REPRESENTATIONS AND WARRANTIES
	 	 	13	 
	 	6.01.	 	 	Grantors’ Legal Status
	 	 	13	 
	 	6.02.	 	 	Grantors’ Legal Names
	 	 	13	 
	 	6.03.	 	 	Grantors’ Locations
	 	 	13	 
	 	6.04.	 	 	Representations in the Credit Agreement
	 	 	14	 
	 	6.05.	 	 	Title to Collateral
	 	 	14	 
	 	6.06.	 	 	Nature of Collateral
	 	 	14	 
	 	6.07.	 	 	Validity of Security Interest
	 	 	15	 
	 	6.08.	 	 	Perfection Certificate, Intellectual Property Filings
	 	 	15	 
	 	6.09.	 	 	Investment Property
	 	 	15	 
	 	6.10.	 	 	Receivables
	 	 	16	 
	SECTION 7.	 	COVENANTS
	 	 	16	 
	 	7.01.	 	 	Locations
	 	 	16	 
	 	7.02.	 	 	Covenants in Credit Agreement
	 	 	16	 
	 	7.03.	 	 	Promissory Notes and Tangible Chattel Paper
	 	 	16	 
	 	7.04.	 	 	Investment Property
	 	 	16	 
	 	7.05.	 	 	Collateral in the Possession of a Bailee
	 	 	19	 
	 	7.06.	 	 	Electronic Chattel Paper and Transferable Records
	 	 	19	 
	 	7.07.	 	 	Letter-of-Credit Rights
	 	 	19	 
	 	7.08.	 	 	Commercial Tort Claims
	 	 	19	 
	 	7.09.	 	 	Intellectual Property
	 	 	20	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 8.	 	COLLATERAL PROTECTION EXPENSES; PRESERVATION OF COLLATERAL
	 	 	22	 
	 	8.01.	 	 	Expenses Incurred by the Administrative Agent
	 	 	22	 
	 	8.02.	 	 	Administrative Agent’s Obligations and Duties
	 	 	22	 
	 	8.03.	 	 	Duties as to Pledged Securities
	 	 	23	 
	 	8.04.	 	 	Use of Collateral
	 	 	24	 
	SECTION 9.	 	SECURITIES AND DEPOSITS
	 	 	24	 
	SECTION 10.	 	NOTIFICATION TO ACCOUNT DEBTORS AND OTHER PERSONS OBLIGATED ON COLLATERAL
	 	 	25	 
	SECTION 11.	 	POWER OF ATTORNEY
	 	 	25	 
	 	11.01.	 	 	Appointment and Powers of Administrative Agent
	 	 	25	 
	 	11.02.	 	 	Failure of Grantor to Perform
	 	 	27	 
	 	11.03.	 	 	Expenses of Attorney-in-Fact
	 	 	27	 
	 	11.04.	 	 	Ratification by Grantor
	 	 	27	 
	 	11.05.	 	 	No Duty on Secured Party
	 	 	27	 
	SECTION 12.	 	REMEDIES
	 	 	27	 
	 	12.01.	 	 	Default
	 	 	27	 
	 	12.02.	 	 	Remedies Upon Default
	 	 	27	 
	 	12.03.	 	 	Grant of License to Use Intellectual Property
	 	 	29	 
	 	12.04.	 	 	Waivers by Grantors
	 	 	29	 
	 	12.05.	 	 	Application of Proceeds
	 	 	30	 
	 	12.06.	 	 	Surplus, Deficiency
	 	 	30	 
	 	12.07.	 	 	Information Related to the Collateral
	 	 	30	 
	 	12.08.	 	 	Sale Exempt from Registration
	 	 	31	 
	 	12.09.	 	 	Rights and Remedies Cumulative
	 	 	31	 
	 	12.10.	 	 	No Direct Enforcement by Secured Parties
	 	 	31	 
	SECTION 13.	 	STANDARDS FOR EXERCISING REMEDIES
	 	 	31	 
	 	13.01.	 	 	Commercially Reasonable Manner
	 	 	31	 
	 	13.02.	 	 	Standard of Care
	 	 	32	 
	SECTION 14.	 	WAIVERS BY GRANTOR; OBLIGATIONS ABSOLUTE
	 	 	32	 
	 	14.01.	 	 	Specific Waivers
	 	 	32	 
	 	14.02.	 	 	Obligations Absolute
	 	 	32	 
	SECTION 15.	 	MARSHALLING
	 	 	33	 
	SECTION 16.	 	INTEREST
	 	 	33	 
	SECTION 17.	 	REINSTATEMENT
	 	 	33	 
	SECTION 18.	 	MISCELLANEOUS
	 	 	33	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	18.01.	 	 	Notices
	 	 	33	 
	 	18.02.	 	 	GOVERNING LAW, CONSENT TO JURISDICTION
	 	 	34	 
	 	18.03.	 	 	WAIVER OF JURY TRIAL, ETC
	 	 	34	 
	 	18.04.	 	 	Counterparts
	 	 	34	 
	 	18.05.	 	 	Headings
	 	 	34	 
	 	18.06.	 	 	No Strict Construction
	 	 	34	 
	 	18.07.	 	 	Severability
	 	 	34	 
	 	18.08.	 	 	Survival of Agreement
	 	 	35	 
	 	18.09.	 	 	Fees and Expenses, Indemnification
	 	 	35	 
	 	18.10.	 	 	Binding Effect; Several Agreement
	 	 	35	 
	 	18.11.	 	 	Waivers; Amendment
	 	 	36	 
	 	18.12.	 	 	Set-Off
	 	 	36	 
	 	18.13.	 	 	Integration
	 	 	36	 
	 	18.14.	 	 	Acknowledgments
	 	 	37	 
	 	18.15.	 	 	Additional Grantors and Guarantors
	 	 	37	 
	 	18.16.	 	 	Releases
	 	 	37	 
	 	18.17.	 	 	Intercompany Debt
	 	 	38	 
	 	18.18.	 	 	FCC Matters
	 	 	38	 
	 	18.19.	 	 	Intercreditor Agreement
	 	 	38	 

-iii-

 

EXHIBITS

	 	 	 
	A	 	Perfection Certificate

	B	 	Form of Copyright Security Agreement Supplement

	C	 	Form of Patent Security Agreement Supplement

	D	 	Form of Trademark Security Agreement Supplement

ANNEXES

	 	 	 
	I	 	Form of Assumption Agreement

-iv-

 

     SECOND LIEN GUARANTEE AND COLLATERAL AGREEMENT, dated as of June 10, 2005, by each of the
signatories hereto identified on the signature pages hereto as a grantor (together with any other
entity that may become a party hereto as provided herein, each a “Grantor” and
collectively, jointly and severally, the “Grantors”) in favor of Lehman Commercial Paper
Inc. as Administrative Agent (in such capacity, the “Administrative Agent”) for (i) the
banks and other financial institutions or entities (the “Lenders”) from time to time
parties to the Second Lien Term Loan Agreement, dated as of June 10, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”) among Spanish Broadcasting
System, Inc., a Delaware corporation (the “Borrower”), the Lenders, the Lead Arranger, the
Arrangers, the Syndication Agent, the Documentation Agent and the Administrative Agent and (ii) the
other Secured Parties (as hereinafter defined).

W I T N E S S E T H :

     WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and conditions set forth therein;

     WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other
Grantor;

     WHEREAS, the proceeds of the extension of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

     WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of extensions of credit
under the Credit Agreement; and

     WHEREAS, it is a condition precedent to the obligations of the Lenders to make their
respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall
have executed and delivered this Agreement to the Administrative Agent.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     Section 1. Definitions.

          1.01. Definition of Terms Used Herein Generally. Except as otherwise provided herein,
all capitalized terms used but not defined herein shall have the meanings set forth in the Credit
Agreement. Except as specifically provided herein, all terms used herein and defined in the NYUCC
(as defined below) shall have the same definitions herein as specified therein as of the date
hereof; provided, however, that if a term is defined in Article 9 of the NYUCC
differently than in another Article of the NYUCC, the term has the meaning specified in Article 9
of the NYUCC as of the date hereof.

          1.02. Definition of Certain Terms Used Herein. As used herein, the following terms
shall have the following meanings:

 

 

               “After-Acquired Intellectual Property”: as defined in Section 7.09.

               “Agreement”: this Second Lien Guarantee and Collateral Agreement, as the same may be
amended, supplemented, replaced or otherwise modified from time to time.

               “Arrangers”: Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith,
Incorporated, and Wachovia Capital Markets, LLC.

               “Borrower Obligations”: the collective reference to the Obligations (as defined in the
Credit Agreement).

               “Collateral”: as defined in Section 3.

               “Control Agreements”: as defined in Section 7.07.

               “Copyright License”: 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 the
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 any Grantor under any such
agreement.

               “Copyright Office”: the United States Copyright Office.

               “Copyrights”: (i) all copyrights, whether or not the underlying works of authorship
have been published, and all works of authorship and other intellectual property rights therein,
all copyrights of works based on, incorporated in, derived from or relating to works covered by
such copyrights, all right, title and interest to make and exploit all derivative works based on or
adopted from works covered by such copyrights, and all copyright registrations and copyright
applications, and any renewals or extensions thereof, including, without limitation, each
registration and application identified in Schedule 7(b) to the Perfection Certificate,
(ii) the rights to print, publish and distribute any of the foregoing, (iii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Copyright Licenses
entered into in connection therewith, and damages and payments for past, present or future
infringements thereof), and (v) all other rights of any kind whatsoever accruing thereunder or
pertaining thereto.

               “Copyright Security Agreement Supplement”: a supplement to this Agreement, executed by
one or more Grantors in favor of the Secured Party, substantially in the form of Exhibit B
hereto.

               “Disposition”: with respect to any Property, the sale, lease (other than an operating
lease entered into in the ordinary course of business), conveyance or other disposition of any
assets or rights (including, without limitation, by way of a sale and leaseback), excluding sales
of services and goods in the ordinary course of business consistent with past practices, but not
including the issuance of Capital Stock by the Borrower; and the terms “Dispose” and
“Disposed of” shall have correlative meanings.

-2-

 

               “Event”: as defined in Section 8.03 hereof.

               “Excluded Assets”: collectively, (a) FCC Licenses, but only if and to the extent that,
and only for as long as, the grant of a security interest therein is prohibited (notwithstanding
the intention of the holder to grant such security interest to the fullest extent lawful) under the
laws of the United States of America; provided, that notwithstanding the foregoing but subject to
clause (e) below, all Proceeds of a Disposition by a Grantor of an FCC License shall not constitute
an Excluded Asset, (b) any General Intangible to the extent that (i) the terms of the agreement
between the applicable Grantor and the account debtor or other contract party with respect to such
General Intangible prohibits, restricts or requires the consent of the account debtor to, the
assignment or transfer of, or creation, attachment or perfection of a security interest in, such
General Intangible, or provides that the assignment or transfer or creation, attachment or
perfection of such security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination or remedy and (ii) such terms are effective under
Sections 9-406, 9-407 or 9-408 of the NYUCC, (c) Excluded Foreign Subsidiary Voting Stock excluded
from the definition of Pledged Stock, (d) any property that is subject to a Lien permitted under
Section 7.3 of the Credit Agreement pursuant to documents that prohibit the applicable Grantor from
granting other liens in such property, and (e) any property to the extent that such grant of a
security interest is prohibited by any Requirements of Law of a Governmental Authority or requires
a consent not obtained of any Governmental Authority pursuant to such Requirement of Law (after the
exercise of commercially reasonable efforts by the applicable Grantor to obtain such consent),
except to the extent that such Requirement of Law providing for such prohibition is ineffective
under applicable law.

               “Excluded Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Excluded
Foreign Subsidiary.

               “FCC Licenses”: any licenses, permits and authorizations issued by the Federal
Communications Commission for the operation of stations.

               “Foreign Subsidiary”: any Subsidiary organized under the laws of any jurisdiction
other than any state of the United States of America or the District of Columbia.

               “Fully Satisfied” means, with respect to the Secured Obligations, Guarantor
Obligations or Borrower Obligations, as the case may be, at any time that (a) all principal
constituting Secured Obligations, Guarantor Obligations or Borrower Obligations, as the case may
be, and all interest (including interest that shall have accrued after the commencement of a
bankruptcy proceeding with respect to the Borrower or any Guarantor at the rate provided in the
Loan Documents) accrued to such time on such principal and on all other Secured Obligations,
Guarantor Obligations or Borrower Obligations, as the case may be, shall have been paid in full in
cash, (b) all fees, expenses and other amounts (including contingent obligations, including those
in respect of indemnification provisions contained in the Loan Documents, but excluding contingent
obligations for which no claim has been made and for which no notice of claim has been given)
unpaid as of such time which constitute Secured Obligations, Guarantor Obligations or Borrower
Obligations, as the case may be, shall have been paid in full in cash, and (c) the Commitments
shall have expired or been terminated.

-3-

 

               “General Intangibles”: all “general intangibles” as such term is defined in Section
9102(42) of the NYUCC as in effect on the date hereof and, in any event, including, without
limitation, with respect to any Grantor, all contracts, agreements, instruments and indentures and
all licenses and permits issued by Governmental Authorities in any form, and portions thereof, to
which such Grantor is a party or under which such Grantor has any right, title or interest or to
which such Grantor or any property of such Grantor is subject, as the same may from time to time be
amended, supplemented, replaced or otherwise modified, including, without limitation, (i) all
rights of such Grantor to receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising
thereunder, (iv) all rights of such Grantor to receive any tax refunds, and (v) all rights of such
Grantor to terminate and to perform, compel performance and to exercise all remedies thereunder.

               “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Loan Document or Specified Hedge
Agreement to which such Guarantor is a party, in each case whether on account of guarantee
obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel to any Secured Party that are required to
be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document or
Specified Hedge Agreement).

               “Guarantors”: the collective reference to each Grantor other than the Borrower.

               “Hedge Agreements”: as to any Person, all interest rate swaps, caps or collar
agreements, foreign exchange agreements, commodity contracts, currency swaps or similar
arrangements entered into by such Person providing for protection against fluctuations in interest
rates or currency exchange rates or the exchange of nominal interest obligations, either generally
or under specific contingencies.

               “Intellectual Property”: all intellectual and similar property of any Grantor of every
kind and nature now owned or hereafter acquired by any Grantor, including inventions, designs,
Patents, Patent Licenses, Trademarks, Trademark Licenses, Copyrights, Copyright Licenses, Trade
Secrets, Trade Secret Licenses, 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, licenses for any of the
foregoing and all license rights, and all additions, improvements and accessions to, and books and
records describing or used in connection with, any of the foregoing.

               “Intellectual Property Security Agreement”: each of a Copyright Security Agreement
Supplement, a Patent Security Agreement Supplement and a Trademark Security Agreement Supplement.

               “Intercompany Debt”: as defined in Section 18.17.

-4-

 

               “Intercompany Note”: any promissory note evidencing loans made by any Grantor to any
of its Subsidiaries or any loan made by any Grantor to another Grantor.

               “Intercreditor Agreement”: as defined in Section 18.19.

               “Investment Property”: the collective reference to (i) all “investment property” as
such term is defined in Section 9-102(48) of the NYUCC on the date hereof including, without
limitation, all certificated securities and uncertificated securities, all security entitlements,
all securities accounts, all commodity contracts and all commodity accounts (other than any
Excluded Foreign Subsidiary Voting Stock excluded from the definition of Pledged Stock), (ii)
security entitlements, in the case of any United States Treasury book-entry securities, as defined
in 31 C.F.R. section 357.2, or, in the case of any United States federal agency book-entry
securities, as defined in the corresponding United States federal regulations governing such
book-entry securities, and (iii) whether or not constituting “investment property” as so defined,
all Pledged Notes, all Pledged Stock, all Pledged Security Entitlements and all Pledged Commodity
Contracts.

               “Issuers”: the collective reference to each issuer of a Pledged Security.

               “Lead Arranger”: Lehman Brothers Inc., in its capacity as lead arranger and book
running manager.

               “Lease”: any lease of personal property under which any Grantor is the lessee.

               “Lehman Entity”: any of Lehman Commercial Paper Inc. or any of its affiliates.

               “Lien”: any security interest, mortgage, lien, encumbrance or adverse claim, and any
financing statement or similar document filed in respect of same.

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

               “Patent License”: 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”: all of the following now owned or hereafter acquired by any Grantor: (a)
all letters patent of the United States or any other country, all registrations and recordings
thereof, and all pending applications for letters patent of the United States or any other country,
including registrations, recordings and applications in the PTO or in any similar office or agency
of the United States, any State or Territory thereof, or any other country, including those
identified in Schedule 7(a) to the Perfection Certificate, 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 inventions disclosed or
claimed therein.

-5-

 

               “Patent Security Agreement Supplement”: a supplement to this Agreement, executed by
one or more Grantors in favor of Secured Party, substantially in the form of Exhibit C
hereto.

               “Perfection Certificate”: shall mean a certificate substantially in the form of
Exhibit A hereto, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by the Grantors.

               “Pledged Commodity Contracts”: all commodity contracts listed on Schedule 8 in
the Perfection Certificate, and all other commodity contracts to which any Grantor is party from
time to time.

               “Pledged Debt Securities”: the debt securities listed on Schedule 9 to the
Perfection Certificate, together with any other certificates, options, rights or security
entitlements of any nature whatsoever in respect of the debt securities of any Person that may be
issued or granted to, or held by, any Grantor while this Agreement is in effect.

               “Pledged Notes”: all promissory notes listed on Schedule 9 to the Perfection
Certificate, all Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes in an aggregate principal
amount for all Grantors not to exceed $2,500,000 at any time outstanding and any promissory note
issued to any Grantor by an employee of such Grantor).

               “Pledged Securities”: the collective reference to the Pledged Debt Securities, the
Pledged Notes and the Pledged Stock.

               “Pledged Security Entitlements”: all security entitlements with respect to the
financial assets listed on Schedule 8 to the Perfection Certificate and all other security
entitlements of any Grantor.

               “Pledged Stock”: the shares of Capital Stock listed on Schedule 8 to the
Perfection Certificate, together with any other shares, stock certificates, options, rights or
security entitlements of any nature whatsoever in respect of the Capital Stock of any Person that
may be issued or granted to, or held by, any Grantor while this Agreement is in effect; provided
that in no event shall more than 65% of the total outstanding Excluded Foreign Subsidiary Voting
Stock of any Excluded Foreign Subsidiary be required to be pledged hereunder.

               “Proceeds”: all “proceeds” as such term is defined in Section 9-102(64) of the NYUCC
in effect on the date hereof and, in any event, shall include, without limitation, all dividends or
other income from the Pledged Securities, collections thereon or distributions or payments with
respect thereto.

               “PTO”: the United States Patent and Trademark Office.

               “Qualified Counterparty”: with respect to any Hedge Agreement, a Lehman Entity or any
Lender or affiliate of a Lender approved by the Administrative Agent and any Lender or Affiliate of
a Lender under the First Lien Credit Agreement approved by the Administrative Agent thereunder.

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               “Receivable”: any right to payment on account of any obligation that could create any
right to receive money, whether or not such right is evidenced by an instrument or chattel paper
and whether or not it has been earned by performance (including, without limitation, any account or
payment intangible).

               “Secured Obligations”: the Borrower Obligations and the Guarantor Obligations.

               “Secured Parties”: collectively, the Arrangers, the Agents, the Lenders and, with
respect to any Specified Hedge Agreement, any Qualified Counterparty and each Indemnitee.

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

               “Security Documents”: this Agreement, the Perfection Certificate and the other
documents, agreements and supplements to be executed pursuant to the terms hereof, including,
without limitation, the Intellectual Property Security Agreements and the Control Agreements
contemplated hereby.

               “Security Interest”: the security interest granted pursuant to Section 3, as
well as all other security interests created or assigned as additional security for the Secured
Obligations pursuant to the provisions of this Agreement.

               “Trade Secret License”: any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trade Secret, including, without limitation, any
of the foregoing referred to on Schedule 7(a) to the Perfection Certificate.

               “Trade Secrets”: (i) all trade secrets and all confidential and proprietary
information, including know-how, trade secrets, manufacturing and production processes and
techniques, inventions, research and development information, technical data, financial, marketing
and business data, pricing and cost information, business and marketing plans, and customer and
supplier lists and information, including, without limitation, those identified in Schedule
7(a) to the Perfection Certificate, (ii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iii) all income, royalties,
damages and other payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all licenses entered into in connection therewith, and damages
and payments for past, present or future infringements thereof), and (iv) all other rights of any
kind whatsoever of such Grantor accruing thereunder or pertaining thereto.

               “Trademark License”: 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.

               “Trademark Security Agreement Supplement”: a supplement to this Agreement, executed by
the Grantor in favor of Secured Party, substantially in the form of Exhibit D hereto.

               “Trademarks”: (i) all trademarks, service marks, trade names, corporate names, company
names, business names, domain names, trade dress, trade styles, logos, or other indicia of origin

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or source identification, trademark and service mark registrations, and applications for
trademark or service mark registrations and any renewals thereof, including, without limitation,
those identified in Schedule 7(a) to the Perfection Certificate, (ii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Trademark Licenses
entered into in connection therewith, and damages and payments for past, present or future
infringements thereof), and (iv) all other rights of any kind whatsoever accruing thereunder or
pertaining thereto, together in each case with the goodwill of the business connected with the use
of, and symbolized by, each of the above.

               “UCC”: the Uniform Commercial Code as in effect in any jurisdiction. References to
particular sections of Article 9 of the UCC shall be, unless otherwise indicated, references to
Revised Article 9 of the UCC adopted and effective in certain jurisdictions on or after July 1,
2001.

          1.03. Rules of Interpretation. The rules of interpretation specified in paragraphs
(c), (d), (e) and (f) of Section 1.2 of the Credit Agreement shall be applicable to this
Agreement. References to “Sections”, “Exhibits” and “Schedules” shall be to Sections, Exhibits and
Schedules, respectively, of this Agreement unless otherwise specifically provided. Any of the
terms defined in this Section 1 may, unless the context otherwise requires, be used in the
singular or the plural depending on the reference. All references to statutes and related
regulations shall include (unless otherwise specifically provided herein) any amendments of same
and any successor statutes and regulations.

Section 2. Guarantee

          2.01. Guarantee. (a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of
the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt
and complete payment and performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

               (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal, state and other laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 2.02).

               (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Secured Party
hereunder.

               (d) The guarantee contained in this Section 2 shall remain in full force and effect
until all the Borrower Obligations and Guarantor Obligations shall have been Fully

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Satisfied notwithstanding that from time to time during the term of the Credit Agreement the
Borrower may be free from any Borrower Obligations.

               (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by any Secured Party from the Borrower, any of the Guarantors, any
other guarantor or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or in payment of the
Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability
of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment received or collected
from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower
Obligations up to the maximum liability of such Guarantor hereunder until the Borrower Obligations
are Fully Satisfied.

          2.02. Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid at least its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2.03. The
provisions of this Section 2.02 shall in no respect limit the obligations and liabilities
of any Guarantor to the Secured Parties and each Guarantor shall remain liable to the Secured
Parties for the full amount guaranteed by such Guarantor hereunder.

          2.03. Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by any Secured Party, no Guarantor shall be
entitled to be subrogated to any of the rights of any Secured Party against the Borrower or any
other Guarantor or Grantor or any collateral security or guarantee or right of offset held by any
Secured Party for the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor or
Grantor in respect of payments made by such Guarantor hereunder, until all Borrower Obligations are
Fully Satisfied. If any amount shall be paid to any Guarantor on account of such subrogation
rights at any time when all of the Borrower Obligations shall not have been Fully Satisfied, such
amount shall be held by such Guarantor in trust for the Secured Parties, segregated from other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the
Administrative Agent in the exact form received by such Guarantor (duly endorsed by such Guarantor
to the Administrative Agent, if required), to be applied against the Borrower Obligations, whether
matured or unmatured, in such order as the Administrative Agent may determine.

          2.04. Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Borrower Obligations made by any Secured Party may be rescinded by such Secured Party and
any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised,

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waived, surrendered or released by any Secured Party, and the Credit Agreement and the other
Loan Documents and any other documents executed and delivered in connection therewith may be
amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or
the Requisite Lenders under the Credit Agreement or all Lenders, as the case may be) may deem
advisable from time to time, and any collateral security, guarantee or right of offset at any time
held by any Secured Party for the payment of the Borrower Obligations may be sold, exchanged,
waived, surrendered or released. No Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Borrower Obligations or for
the guarantee contained in this Section 2 or any property subject thereto.

          2.05. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or
proof of reliance by any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one hand, and the Secured
Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Borrower or any of the Guarantors with respect to the Borrower Obligations. Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be construed as
a continuing, absolute and unconditional guarantee of payment and performance without regard to (a)
the validity or enforceability of the Credit Agreement or any other Loan Document, any of the
Borrower Obligations or any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by any Secured Party, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which may at any time be
available to or be asserted by the Borrower or any other Person against any Secured Party, or (c)
any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such
Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge
of the Borrower for the Borrower Obligations, or of such Guarantor under the guarantee contained in
this Section 2, in bankruptcy or in any other instance. When making any demand hereunder
or otherwise pursuing its rights and remedies hereunder against any Guarantor, any Secured Party
may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights
and remedies as it may have against the Borrower, any other Guarantor or any other Person or
against any collateral security or guarantee for the Borrower Obligations or any right of offset
with respect thereto, and any failure by any Secured Party to make any such demand, to pursue such
other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any
other Person or to realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of any Secured Party against any Guarantor. For
the purposes hereof, “demand” shall include the commencement and continuance of any legal
proceedings.

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          2.06. Reinstatement. The guarantee contained in this Section 2 shall continue
to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by any
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payments had not been made.

          2.07. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Administrative Agent without set-off or counterclaim in Dollars in immediately available
funds at the office of the Administrative Agent located at the Payment Office specified in the
Credit Agreement and that all such payments will be subject to the provisions of Section 2.20 of
the Credit Agreement.

     Section 3. Grant of Security Interest.

     Each Grantor hereby grants to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in all of the following property 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 “Collateral”), as collateral security for
the prompt and complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Secured Obligations:

          a. all accounts, including health-care receivables;

          b. all chattel paper, whether tangible or electronic;

          c. all deposit accounts, all claims now or hereafter arising therefrom, all funds now or
hereafter therein and all amounts now or hereafter credited thereto;

          d. all goods;

          e. all documents;

          f. all equipment;

          g. all fixtures;

          h. all general intangibles, including all payment intangibles;

          i. all instruments;

          j. all Intellectual Property;

          k. all inventory;

          l. all Investment Property;

          m. all Leases;

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          n. all letter-of-credit rights;

          o. all money;

          p. all supporting obligations;

          q. all tort claims;

          r. all other personal property not otherwise described above;

          s. all bank accounts, all claims now or hereafter arising therefrom, all funds now or
hereafter held therein, all amounts now or hereafter credited thereto and all certificates and
instruments, if any, from time to time representing or evidencing such bank accounts;

          t. all books and records pertaining to the Collateral; and

          u. 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.

     Notwithstanding the foregoing, none of the Excluded Assets shall, to the extent and for so
long as they are Excluded Assets, constitute Collateral. If at any time, by reason of any change
in law or the receipt of any required consent or otherwise, (i) any FCC License that was an
Excluded Asset ceases to meet the conditions set forth in the definition of Excluded Assets found
in Section 1 of this Agreement or (ii) any General Intangible that was an Excluded Asset ceases to
meet the conditions set forth in the definition of Excluded Assets found in Section 1 of
this Agreement, then such FCC License or general intangible, as the case may be, shall immediately
and automatically cease to be an Excluded Asset and the security interest herein granted shall
immediately and automatically attach thereto without necessity of any further act or deed by any
Grantor.

     Section 4. Authorization to File Financing Statements. Each Grantor hereby
irrevocably authorizes the Administrative Agent at any time and from time to time to file in any
jurisdiction in which the UCC has been adopted any initial financing statements and amendments
thereto that (a) indicate the Collateral (i) as all assets of such Grantor or words of similar
effect, regardless of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the NYUCC or such jurisdiction, or (ii) as being of an equal or lesser scope
or with greater detail, and (b) contain any other information required by part 5 of Article 9 of
the UCC for the sufficiency or filing office acceptance of any initial financing statement or
amendment, including (i) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor and, (ii) in the case of a financing
statement filed as a fixture filing or indicating Collateral as timber to be cut or as-extracted
collateral, a sufficient description of real property to which such Collateral relates. Each
Grantor agrees to furnish any such information to the Administrative Agent promptly upon request.
Each Grantor also ratifies its authorization for the Administrative Agent to have filed in any UCC
jurisdiction any like initial financing statements or amendments thereto if filed prior to the date
hereof.

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     Section 5. Relation to Other Security Documents.

          5.01. Patent and Trademark Security Agreement Supplements. Concurrently herewith
certain of the Grantors are executing and delivering to the Administrative Agent for recording in
the PTO the Trademark Security Agreement Supplement. There are no Patents owned by any Grantor as
of the Closing Date. In the event that after the Closing Date any Grantor owns any Patents, or
Trademark Collateral (as defined in the Trademark Security Supplement) Grantors shall promptly
execute and deliver to the Administrative Agent for recording in the PTO one or more Patent
Security Agreement Supplements or Trademark Security Agreement Supplements. The provisions of any
such Patent Security Agreement Supplement or the current or any such future Trademark Security
Agreement Supplement are supplemental to the provisions of this Agreement. Nothing contained in
any such Patent Security Agreement Supplement or the current or any such future Trademark Security
Agreement Supplement shall derogate from any of the rights or remedies of the Secured Party
hereunder, nor shall anything contained in any such Patent Security Agreement Supplement or the
current or any such future Trademark Security Agreement Supplement be deemed to prevent or extend
the time of attachment or perfection of any Security Interest in such Collateral created hereby.

          5.02. Copyright Security Agreement Supplement. There are no Copyrights owned by any
Grantor as of the Closing Date. In the event that after the Closing Date any Grantor owns any
copyrights or Copyright Licenses, such Grantor shall promptly execute and deliver to the
Administrative Agent for recording in the Copyright Office a Copyright Security Agreement
Supplement, the provisions of any such Copyright Security Agreement Supplement will be supplemental
to the provisions of this Agreement. Nothing contained in any such Copyright Security Agreement
Supplement shall derogate from any of the rights or remedies of the Secured Party hereunder, nor
shall anything contained in any such Copyright Security Agreement Supplement be deemed to prevent
or extend the time of attachment or perfection of any Security Interest in such Collateral created
hereby.

     Section 6. Representations and Warranties. To induce the Lead Arranger, the
Arrangers, the Administrative Agent, the Syndication Agent, the Documentation Agent and the Lenders
to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby represents and warrants to the Secured
Parties that:

          6.01. Grantors’ Legal Status. (a) Such Grantor is an organization as set forth in the
Perfection Certificate; (b) if the Grantor is an organization, such organization is of the type,
and is organized in the jurisdiction, set forth in the Perfection Certificate; and (c) the
Perfection Certificate sets forth such Grantor’s organizational identification number or states
that such Grantor has none.

          6.02. Grantors’ Legal Names. Such Grantor’s exact legal name is that set forth on the
Perfection Certificate and on the signature page hereof.

          6.03. Grantors’ Locations. The Perfection Certificate sets forth such Grantor’s place
of business or (if it has more than one place of business) its chief executive office, as well

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as its mailing address if different. Such Grantor’s place of business or (if it has more than
one place of business) its chief executive office (if such Grantor is an organization) is located
in a jurisdiction that has adopted the UCC or whose laws generally require that information
concerning the existence of nonpossessory security interests be made generally available in a
filing, recording or registration system as a condition or result of the security interest
obtaining priority over the rights of a lien creditor with respect to the collateral.

          6.04. Representations in the Credit Agreement. In the case of each Guarantor, the
representations and warranties set forth in Section 4 of the Credit Agreement as they relate to
such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct in all material respects, and the Secured
Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided
that each reference in each such representation and warranty to the Borrower’s knowledge shall, for
the purposes of this Section 6.04, be deemed to be a reference to such Guarantor’s
knowledge.

          6.05. Title to Collateral. The Collateral of such Grantor is owned by such Grantor
free and clear of any Lien, except for Liens expressly permitted pursuant to the Credit Agreement.
Such Grantor has not filed or consented to the filing of (a) any financing statement or analogous
document under the UCC or any other applicable laws covering any of its Collateral, (b) any
assignment in which such Grantor assigns any Collateral or any security agreement or similar
instrument covering any Collateral with the PTO or the Copyright Office or (c) any assignment in
which such Grantor assigns any Collateral or any security agreement or similar instrument covering
any Collateral with any foreign governmental, municipal or other office, which financing statement
or analogous document, assignment, security agreement or similar instrument is still in effect,
except, in each case, with respect to Liens permitted pursuant to the Credit Agreement.

          6.06. Nature of Collateral. None of the Collateral of such Grantor constitutes, or is
the proceeds of, farm products and none of the Collateral has been purchased or will be used by
such Grantor primarily for personal, family or household purposes, and as of the Closing Date,
except as indicated in the Perfection Certificate:

               (a) none of the account debtors or other persons obligated on any of the Collateral of such
Grantor is a governmental authority subject to the Federal Assignment of Claims Act or similar
state or local statute requiring governmental consent to assign Receivables;

               (b) such Grantor holds no commercial tort claims;

               (c) such Grantor has no deposit accounts or other bank accounts;

               (d) such Grantor owns no motor vehicles;

               (e) such Grantor has no securities accounts or securities entitlements or commodities accounts
or commodities contracts;

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               (f) such Grantor holds no interest in, title to or power to transfer, any Patents, Patent
Licenses, Trademarks, Trademark Licenses, Trade Secrets, Trade Secret Licenses, Copyrights or
Copyright Licenses; and

               (g) such Grantor holds no interest in, title to or power to transfer any Intellectual Property
that is eligible for registration in the PTO or the Copyright Office.

          6.07. Validity of Security Interest. Except with respect to assets which in the
aggregate for all Grantors do not have a value exceeding $1,000,000, (a) the Security Interest
granted by such Grantor constitutes a legal and valid security interest in all of the Collateral of
such Grantor securing the payment and performance of the Secured Obligations and (b) upon the
giving of value, the filing of financing statements describing the Collateral in the offices listed
on the Perfection Certificate, the recording in the PTO of the Trademark Security Agreement
Supplement and the Patent Security Agreement Supplement and in the Copyright Office of the
Copyright Security Agreement Supplement, the Security Interest will be valid, enforceable and
perfected in all Collateral of such Grantor in which a security interest can be perfected by the
Secured Party filing a financing statement or making such a recording. The Security Interest is
and shall be prior to any other Lien on the Collateral, other than Liens permitted to be prior to
the Security Interest under the Credit Agreement.

          6.08. Perfection Certificate, Intellectual Property Filings.

               (a) All information set forth on the Perfection Certificate is accurate and complete in all
material respects.

               (b) A fully executed Trademark Security Agreement Supplement containing a description of all
Collateral of such Grantor consisting of United States registered Trademarks (and Trademarks for
which United States registration applications are pending) have been delivered to the Secured Party
for recording by the PTO, as necessary, pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C.
§ 205 and the regulations thereunder, as applicable.

          6.09. Investment Property.

               (a) The shares of Pledged Stock pledged by such Grantor hereunder constitute all of the issued
and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or,
in the case of Excluded Foreign Subsidiary Voting Stock, 65% of the outstanding Excluded Foreign
Subsidiary Voting Stock of each relevant Issuer.

               (b) All the shares of the Pledged Stock pledged by such Grantor have been duly and validly
issued and are fully paid and nonassessable.

               (c) The terms of any uncertificated limited liability company interests and partnership
interests included in the Pledged Stock expressly provide that they are securities governed by
Article 8 of the Uniform Commercial Code in effect from time to time in the “issuer’s jurisdiction”
of each Issuer thereof (as such term is defined in the UCC in effect in such jurisdiction).

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               (d) Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Pledged Securities pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except the Security Interest created by this Agreement or otherwise
permitted by the Credit Agreement.

          6.10. Receivables. No amount exceeding $1,000,000 and payable to such Grantor under
or in connection with any Receivable is evidenced by any instrument or chattel paper which has not
been delivered to the Administrative Agent.

     Section 7. Covenants. Each Grantor covenants and agrees with the Administrative
Agent, in each case at such Grantor’s own cost and expense, as follows:

          7.01. Locations. Upon the reasonable request of the Administrative Agent, each
Grantor shall deliver to the Administrative Agent a list of any locations of Collateral held by the
Borrower or a Domestic Subsidiary thereof that is not set forth in a Perfection Certificate.

          7.02. Covenants in Credit Agreement. Each Guarantor shall take, or shall refrain from
taking, as the case may be, each action that is necessary to be taken or not taken, as the case may
be, so that no Default or Event of Default is caused by the failure to take such action or to
refrain from taking such action by such Guarantor or any of its Subsidiaries.

          7.03. Promissory Notes and Tangible Chattel Paper. If such Grantor, together with the
other Grantors, shall at any time hold or acquire any promissory notes (other than those made by an
employee of such Grantor) or tangible chattel paper in an aggregate principal amount of more than
$1,000,000, such Grantor shall forthwith endorse, assign and subject to the provisions of the
Intercreditor Agreement, deliver the same to the Administrative Agent, accompanied by such
instruments of transfer or assignment duly executed in blank as the Administrative Agent may from
time to time specify to be held by the Administrative Agent as Collateral pursuant to this
Agreement.

          7.04. Investment Property.

               (a) If any of the Collateral shall be or become evidenced or represented by an uncertificated
security, such Grantor shall cause the Issuer thereof either (i) to register the Administrative
Agent as the registered owner of such uncertificated security, upon original issue or registration
of transfer or (ii) to agree in writing with such Grantor and the Administrative Agent that such
Issuer will comply with instructions with respect to such uncertificated security originated by the
Administrative Agent without further consent of such Grantor, such agreement (an
“Uncertificated Securities Control Agreement”) to be in a form reasonably acceptable to the
Administrative Agent in the case of each of (i) and (ii), subject to the provisions of the
Intercreditor Agreement.

               (b) If any of the Collateral shall be or become evidenced or represented by a security
entitlement, such Grantor shall cause the securities intermediary with respect to such security
entitlement either (i) to identify in its records the Administrative Agent as having such security
entitlement against such securities intermediary or (ii) to agree in writing with such Grantor and
the Administrative Agent that such securities intermediary will comply with entitlement orders
originated by the Administrative Agent without further consent of such

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Grantor, such agreement (a “Securities Account Control Agreement”) to be in a form
reasonably acceptable to the Administrative Agent, in the case of each of (i) and (ii), subject to
the provisions of the Intercreditor Agreement.

               (c) If any of the Collateral shall be or become evidenced or represented by a commodity
contract, such Grantor shall cause the commodity intermediary with respect to such commodity
contract to agree in writing with such Grantor and the Administrative Agent that such commodity
intermediary will apply any value distributed on account of such commodity contract as directed by
the Administrative Agent without further consent of such Grantor, subject to the provisions of the
Intercreditor Agreement, such agreement (a “Commodity Contract Control Agreement”) to be in
a form reasonably acceptable to the Administrative Agent.

               (d) If any of the Collateral shall be or become evidenced or represented by or held in a
securities account or a commodity account, such Grantor shall, in the case of a securities account,
comply with subsection (b) of this Section 7.04 with respect to all security entitlements
carried in such securities account and, in the case of a commodity account, comply with subsection
(c) of this Section 7.04 with respect to all commodity contracts carried in such commodity
account.

               (e) If such Grantor shall receive any stock or other ownership certificate (including, without
limitation, any certificate representing a stock dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in connection with any
reorganization), option or rights in respect of the Capital Stock of any Issuer, whether in
addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other
ownership interests in the Pledged Stock, or otherwise in respect thereof, such Grantor shall
accept the same as the agent of the Secured Parties, hold the same in trust for the Secured Parties
and subject to the provisions of the Intercreditor Agreement, deliver the same forthwith to the
Administrative Agent in the exact form received, duly endorsed by such Grantor to the
Administrative Agent, if required, together with an undated stock power covering such certificate
duly executed in blank by such Grantor and with, if the Administrative Agent so requests, signature
guaranteed, to be held by the Administrative Agent, subject to the terms hereof and the provisions
of the Intercreditor Agreement, as additional collateral security for the Secured Obligations.

               (f) Subject to Section 7.04(h) hereof, such Grantor shall be entitled:

                    (i) to exercise, in its sole discretion, the voting power with respect to the Pledged Stock of
such Grantor, and for that purpose the Administrative Agent shall (if any Pledged Stock shall be
registered in the name of the Administrative Agent or its nominee) execute or cause to be executed
from time to time, at the expense of such Grantor, such proxies or other instruments in favor of
such Grantor or its nominee, in such form and for such purposes as shall be reasonably required by
such Grantor and shall be specified in a written request therefor, to enable it to exercise such
voting power with respect to the Pledged Stock; and

                    (ii) except as otherwise provided in paragraphs (g) and (h) of this Section 7.04, to
receive and retain for its own account any and all payments made in respect

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of the Pledged Securities to the extent such are permitted pursuant to the terms of the Credit
Agreement.

               (g) Any sums paid upon or in respect of the Pledged Securities upon the liquidation or
dissolution of the Borrower shall be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Secured Obligations, and in case any
distribution of capital shall be made on or in respect of the Pledged Securities or any property
shall be distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization
thereof, the property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the Administrative Agent to be held
by it hereunder as additional collateral security for the Secured Obligations in each case, subject
to the provisions of the Intercreditor Agreement. If any sums of money or property so paid or
distributed in respect of the Pledged Securities shall be received by such Grantor, such Grantor
shall, until such money or property is paid or delivered to the Administrative Agent, hold such
money or property in trust for the Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Secured Obligations, subject to the provisions of the
Intercreditor Agreement.

               (h) Upon the occurrence and during the continuance of any Event of Default and following a
single written notice thereof from the Administrative Agent to the Borrower referring to this
Section 7.04(h), all rights of such Grantor to exercise or refrain from exercising the
voting and other consensual rights that it would otherwise be entitled to exercise pursuant to
Section 7.04(f)(1) hereof and to receive the payments pursuant to Section
7.04(f)(ii) hereof shall cease, and thereupon the Administrative Agent shall be entitled to
exercise all voting power with respect to the Pledged Securities and to receive and retain, as
additional collateral hereunder, any and all such payments any time declared or paid upon any of
the Pledged Securities during such an Event of Default and otherwise to act with respect to the
Pledged Securities as outright owner thereof.

               (i) At any time and from time to time with respect to Pledged Securities other than Pledged
Stock of a Subsidiary of the Borrower and at any time and from time to time during the continuance
of an Event of Default with respect to Pledged Stock of a Subsidiary of the Borrower, the
Administrative Agent may, subject to the provisions of the Intercreditor Agreement, cause all or
any of the Pledged Securities to be transferred to or registered in its name or the name of its
nominee or nominees.

               (j) Subject to the provisions of the Intercreditor Agreement, without the prior written
consent of the Administrative Agent, such Grantor will not enter into any agreement or undertaking
expressly restricting the foreclosure of the Administrative Agent’s Security Interest in any of the
Investment Property or Proceeds thereof or any interest therein.

               (k) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 7.04(e) or Section 7.04(g) with respect to the Pledged Securities issued by
it and (iii) the

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terms of Section 12.04(c) shall apply to it, mutatis mutandis, with respect to all
actions that may be required of it with respect to the Pledged Securities issued by it. Each
Grantor which is an Issuer consents to the grant of a Security Interest in Capital Stock of such
Issuer the exercise of rights by the Administrative Agent in respect of such Capital Stock,
including (to the extent permitted hereunder) the foreclosure thereon and the Administrative Agent,
its nominee or transferee becoming a partner or member of any such Issuer that is a partnership or
limited liability company, subject to the provisions of the Intercreditor Agreement.

          7.05. Collateral in the Possession of a Bailee. If any goods with a value in excess
of $1,000,000 are at any time in the possession of a bailee (other than pursuant to the terms of
Section 18.19 hereof or the Intercreditor Agreement), such Grantor shall use commercially
reasonable efforts to notify the Administrative Agent thereof and, if reasonably requested by the
Administrative Agent, shall promptly obtain an acknowledgement from such bailee, in form and
substance reasonably satisfactory to the Administrative Agent, that such bailee holds such
Collateral for the benefit of the Secured Parties.

          7.06. Electronic Chattel Paper and Transferable Records. If such Grantor, together
with the other Grantors, shall at any time hold or acquire interests 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, in excess of $1,000,000 in
the aggregate, 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 Section 9-105 of the UCC, 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 in each case,
subject to the provisions of the Intercreditor Agreement. The Administrative Agent agrees with
such Grantor that the Administrative Agent shall 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 (other than in accordance with the Intercreditor Agreement),
for such Grantor to make alterations to the electronic chattel paper or transferable record
permitted under Section 9-105 of the UCC 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, 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.

          7.07. Letter-of-Credit Rights. If such Grantor, together with the other Grantors,
shall at any time be beneficiaries under one or more letters of credit, now or hereafter issued,
having aggregate undrawn amounts of more than $5,000,000, such Grantor shall promptly notify the
Administrative Agent thereof and, at the request and option of the Administrative Agent, such
Grantor shall use commercially reasonable efforts to either (a) arrange, for the issuer and any
nominated person with respect to such letter of credit to consent, pursuant to an agreement (a
“Letter-of-Credit Rights Control Agreement”, and together with the Account Control
Agreement, Uncertificated Securities Control Agreement, Securities Accounts Control Agreement and
Commodities Contracts Control Agreement, the “Control Agreements”) or other authenticated

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record with and in form and substance satisfactory to the Administrative Agent, to an
assignment to the Administrative Agent of the proceeds of any drawing under the letter of credit or
(b) arrange for the Administrative Agent to become the transferee beneficiary of the letter of
credit, in each case, subject to the provisions of the Intercreditor Agreement.

          7.08. Commercial Tort Claims. If such Grantor shall at any time hold or acquire a
commercial tort claim in an amount in excess of $10,000,000, such Grantor shall promptly notify the
Administrative Agent in a writing signed by such Grantor of the brief details thereof and subject
to the provisions of the Intercreditor Agreement, grant to the Secured Parties 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.

          7.09. Intellectual Property.

               (a) Except in any respect that would not reasonably be expected to have a Material Adverse
Effect:

                    (i) Such Grantor (either itself or through licensees) will (A) continue to use each material
Trademark on each and every trademark class of goods applicable to its current line as reflected in
its current catalogs, brochures and price lists in order to maintain such Trademark in full force
free from any claim of abandonment for non-use, (B) maintain as in the past the quality of products
and services offered under such Trademark and take all necessary steps to ensure that all licensed
users of such Trademark maintain as in the past such quality, (C) use such Trademark with the
appropriate notice of registration and all other notices and legends required by applicable
Requirements of Law, (D) not adopt or use any mark which is confusingly similar or a colorable
imitation of such Trademark unless the Administrative Agent, for the ratable benefit of the Secured
Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement and the
Intellectual Property Security Agreement, and (E) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark may become
invalidated or impaired in any way.

                    (ii) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material Patent may become forfeited, abandoned or dedicated to the public.

                    (iii) Such Grantor (either itself or through licensees) (A) will employ each material
Copyright and (B) will not (and will not permit any licensee or sublicensee thereof to) do any act
or knowingly omit to do any act whereby any material portion of the Copyrights may become
invalidated or otherwise impaired. Such Grantor will not (either itself or through licensees) do
any act whereby any material portion of the Copyrights may fall into the public domain.

                    (iv) Such Grantor (either itself or through licensees) will not do any act that knowingly uses
any material Intellectual Property to infringe the intellectual property rights of any other
Person.

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                    (v) Such Grantor (either itself or through licensees) will use proper statutory notice in
connection with the use of each material Patent, Trademark and Copyright included in the
Intellectual Property.

                    (vi) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the PTO, the Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, to maintain and pursue each application (and to
obtain the relevant registration) and to maintain each registration of material Intellectual
Property, including, without limitation, the payment of required fees and taxes, the filing of
responses to office actions issued by the PTO and the Copyright Office, the filing of applications
for renewal or extension, the filing of affidavits of use and affidavits of incontestability, the
filing of divisional, continuation, continuation-in-part, reissue, and renewal applications or
extensions, the payment of maintenance fees, and the participation in interference, reexamination,
opposition, cancellation, infringement and misappropriation proceedings.

                    (vii) Subject to the provisions of the Intercreditor Agreement, such Grantor (either itself or
through licensees) will not, without the prior written consent of the Administrative Agent,
discontinue use of or otherwise abandon any Intellectual Property or abandon any right to file an
application for letters patent, trademark, or copyright, unless such Grantor shall have previously
determined that such use or the pursuit or maintenance of such Intellectual Property is no longer
desirable in the conduct of such Grantor’s business and that the loss thereof could not reasonably
be expected to have a Material Adverse Effect and, in which case, such Grantor shall give prompt
notice of any such abandonment to the Administrative Agent in accordance herewith.

                    (viii) In the event that any material Intellectual Property is infringed, misappropriated or
diluted by a third party, such Grantor shall (A) take such actions as such Grantor shall reasonably
deem appropriate under the circumstances to protect such Intellectual Property and (B) if such
Intellectual Property is of material economic value, promptly notify the Administrative Agent after
it learns thereof and sue for infringement, misappropriation or dilution, to seek injunctive relief
where appropriate and to recover any and all damages for such infringement, misappropriation or
dilution.

                    (ix) Such Grantor will do all things that are necessary and proper within such Grantor’s power
and control to keep each license of Intellectual Property held by such Grantor as licensee or
licensor in full force and effect except to the extent that (A) such Grantor has reasonably
determined that the failure to keep any such license in full force and effect could not be
reasonably expected to have a Material Adverse Effect or (B) any such license would expire by its
terms or is terminable at will by a Person other than Grantor.

               (b) Such Grantor will promptly notify the Administrative Agent if it knows or has reason to
know that any registration relating to any material Intellectual Property has been or could
reasonably be expected to be forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the PTO, the Copyright Office or any court or
tribunal in any country) regarding such Grantor’s ownership of, or the validity of,

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any Intellectual Property or such Grantor’s right to register the same or to own and maintain
the same, which could reasonably be expected to have a Material Adverse Effect.

               (c) Such Grantor agrees that, should it obtain an ownership interest in any item of
Intellectual Property which is not now a part of the Intellectual Property Collateral (the
“After-Acquired Intellectual Property”), (i) the provisions of Section 3 shall
automatically apply thereto, (ii) any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or symbolized thereby, shall
automatically become part of the Collateral, (iii) it shall provide the Administrative Agent
promptly upon request with an amended Perfection Certificate and amended schedules to the
applicable Intellectual Property Security Agreement reflecting the acquisition of such
After-Acquired Intellectual Property. Such Grantor authorizes the Administrative Agent to modify
this Agreement by amending the Perfection Certificate and to modify the schedules to the applicable
Intellectual Property Security Agreement if such Grantor fails to provide the Administrative Agent
with satisfactory amended schedules hereto or thereto within the time period required hereunder
(and will cooperate with the Administrative Agent in effecting any such amendment) to include any
After-Acquired Intellectual Property which becomes part of the Intellectual Property Collateral
under this Section, and to record any such modified agreement with the PTO, the Copyright Office,
or any other applicable Governmental Authority.

               (d) Such Grantor assumes all responsibility and liability arising from the use of the
Intellectual Property and hereby indemnifies and holds the Secured Parties harmless from and
against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees arising out
of any alleged defect in any product manufactured, promoted or sold by such Grantor (or any
affiliate or subsidiary thereof) in connection with such Intellectual Property or out of the
manufacture, promotion, labeling, sale or advertisement of any such product by such Grantor (or any
affiliate or subsidiary thereof).

               (e) Such Grantor agrees to execute one or more applicable Intellectual Property Security
Agreements with respect to its Intellectual Property in order to record the Security Interest
granted herein to the Administrative Agent for the ratable benefit of the Secured Parties with the
PTO, the Copyright Office, and any other applicable Governmental Authority, subject to the
provisions of the Intercreditor Agreement.

     Section 8. Collateral Protection Expenses; Preservation of Collateral.

          8.01. Expenses Incurred by the Administrative Agent. In its discretion, the
Administrative Agent may discharge taxes and other encumbrances at any time levied or placed on any
of the Collateral, make repairs thereto and pay any necessary filing fees or, if the debtor fails
to do so, insurance premiums. Each Grantor agrees to reimburse the Administrative Agent on demand
for any and all expenditures so made, and all sums disbursed by the Administrative Agent in
connection with this Section 8.01, including reasonable attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by such Grantor to the
Administrative Agent shall bear interest at the per annum rate specified in Section 16 and
shall constitute additional Secured Obligations. The Administrative Agent shall have no obligation
to any Grantor to make any such expenditures, nor shall the making thereof relieve any Grantor of
any default.

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          8.02. Administrative Agent’s Obligations and Duties.

               (a) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each contract or agreement comprised in the Collateral provided by it to be observed or performed
by such Grantor thereunder. Neither the Administrative Agent nor any other Secured Party shall
have any obligation or liability under any such contract or agreement by reason of or arising out
of this Agreement or the receipt by the Administrative Agent or any other Secured Party of any
payment relating to any of the Collateral, nor shall the Administrative Agent or any other Secured
Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant
to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Administrative Agent or any other Secured Party in respect of the Collateral or as
to the sufficiency of any performance by any party under any such contract or agreement, to present
or file any claim, to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to the Administrative Agent or any other Secured Party or to
which the Administrative Agent or any other Secured Party may be entitled at any time or times.

               (b) The Administrative Agent’s sole duty with respect to the custody, safe keeping and
physical preservation of the Collateral in its possession, under Section 9-207 of the NYUCC or
otherwise, shall be to deal with such Collateral in the same manner as the Secured Party deals with
similar property for its own account.

               (c) Neither the Administrative Agent, nor any other Secured Party nor any of their respective
officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact
or affiliates shall be liable for failure to demand, collect or realize upon any of the Collateral
or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers conferred on the Secured
Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall
not impose any duty upon any Secured Party to exercise any such powers. The Secured Parties shall
be accountable only for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, partners, employees, agents,
attorneys and other advisors, attorneys-in-fact or affiliates shall be responsible to any Grantor
for any act or failure to act hereunder, except to the extent that any such act or failure to act
is found by a final and nonappealable decision of a court of competent jurisdiction to have
resulted from their respective gross negligence or willful misconduct.

               (d) Each Grantor acknowledges that the rights and responsibilities of the Administrative Agent
under this Agreement with respect to any action taken by the Administrative Agent or the exercise
or non-exercise by the Administrative Agent of any option, voting right, request, judgment or other
right or remedy provided for herein or resulting or arising out of this Agreement shall, as between
the Administrative Agent and the other Secured Parties, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among them, but, as
between the Administrative Agent and the Grantors, the Administrative Agent shall be conclusively
presumed to be acting as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall

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be under any obligation, or entitlement, to make any inquiry respecting such authority,
subject to the Intercreditor Agreement.

          8.03. Duties as to Pledged Securities.

               (a) Subject to the provisions of the Intercreditor Agreement, with respect to any calls,
conversions, exchanges, redemptions, offers, tenders or similar matters relating to any such
Pledged Securities (herein called “Events”), any duty in connection therewith imposed on
the Administrative Agent by applicable law shall be fully satisfied if:

                    (i) the Administrative Agent exercises reasonable care to ascertain the occurrence and to give
reasonable notice to the applicable Grantor of any Events applicable to any Pledged Securities that
are registered and held in the name of Secured Party or its nominee;

                    (ii) the Administrative Agent gives the applicable Grantor reasonable notice of the occurrence
of any Events of which the Administrative Agent has received actual knowledge, which Events are
applicable to any securities that are in bearer form or are not registered and held in the name of
the Administrative Agent or its nominee (each Grantor agreeing to give the Administrative Agent
reasonable notice of the occurrence of any Events of which such Grantor has knowledge, which Events
are applicable to any securities in the possession of the Administrative Agent); and

                    (iii) the Administrative Agent endeavors to take such action with respect to any of the Events
as the applicable Grantor may reasonably and specifically request in writing in sufficient time for
such action to be evaluated and taken or, if the Administrative Agent reasonably believes that the
action requested would adversely affect the value of the Pledged Securities as collateral or the
collection of the Secured Obligations, or would otherwise prejudice the interests of any Secured
Party, the Administrative Agent gives reasonable notice to such Grantor that any such requested
action will not be taken and, if the Administrative Agent makes such determination or if such
Grantor fails to make such timely request, the Administrative Agent takes such other action as it
reasonably deems advisable in the circumstances.

               (b) Except as hereinabove specifically set forth, neither the Administrative Agent nor any
other Secured Party shall have any further obligation to ascertain the occurrence of, or to notify
any Grantor with respect to, any Events and shall not be deemed to assume any such further
obligation as a result of the establishment by the Administrative Agent or any other Secured Party
of any internal procedures with respect to any securities in its possession, nor shall the
Administrative Agent or any other Secured Party be deemed to assume any other responsibility for,
or obligation or duty with respect to, any Pledged Securities or its use of any nature or kind, or
any matter or proceedings arising out of or relating thereto, including, without limitation, any
obligation or duty to take any action to collect, preserve or protect its or any Grantor’s rights
in the Pledged Securities or against any prior parties thereto, but the same shall be at such
Grantor’s sole risk and responsibility at all times.

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               (c) Nothing contained in this Section 8.03 shall be deemed to create any obligation in
respect of Events on the Administrative Agent, the purpose of this Section 8.03 being
solely to provide standards, in the event that applicable law imposes any obligations on the
Administrative Agent as to Events.

          8.04. Use of Collateral. With respect to any Collateral in the possession of the
Administrative Agent or any other Secured Party, or a bailee or other third party holding on its
behalf, the Administrative Agent or such other Secured Party may use or operate such Collateral in
any reasonable manner and to the extent determined by the Administrative Agent or such Secured
Party, subject to the provisions of the Intercreditor Agreement.

     Section 9. Securities and Deposits. Subject to the provisions of the Intercreditor
Agreement and Section 7.04, whether or not any Secured Obligations are due, the Administrative
Agent may after the occurrence and during the continuance of an Event of Default demand, sue for,
collect, or make any settlement or compromise which it deems desirable with respect to the
Collateral. Regardless of the adequacy of Collateral or any other security for the Secured
Obligations, any deposits or other sums at any time credited by or due from the Administrative
Agent or any other Secured Party to any Grantor may at any time be applied to or set off against
any of the Secured Obligations whether or not due and owing.

     Section 10. Notification to Account Debtors and Other Persons Obligated on
Collateral. Subject to the provisions of the Intercreditor Agreement, if an Event of Default
shall have occurred and be continuing, each Grantor shall, at the request of the Administrative
Agent, notify account debtors and other persons obligated on any of the Collateral of such Grantor
of the Security Interest in any account, chattel paper, general intangible, instrument or other
claims constituting Collateral that payment thereof is to be made directly to the Administrative
Agent or to any financial institution designated by the Administrative Agent as the Administrative
Agent’s agent therefor, and the Administrative Agent may itself, if an Event of Default shall have
occurred and be continuing, without notice to or demand upon any Grantor, so notify account debtors
and other persons obligated on Collateral. After the making of such a request or the giving of any
such notification, each Grantor shall hold any proceeds of collection of accounts, chattel paper,
general intangibles, instruments and other claims constituting Collateral received by the Grantor
as trustee for the Secured Parties and the Secured Parties under the First Lien Credit Agreement
without commingling the same with other funds of the Grantor and shall, subject to the provisions
of the Intercreditor Agreement, turn the same over to the Administrative Agent in the identical
form received, together with any necessary endorsements or assignments. Subject to the provisions
of the Intercreditor Agreement, if an Event of Default shall have occurred and be continuing, the
Administrative Agent may apply the proceeds of collection of accounts, chattel paper, general
intangibles, instruments and other claims constituting Collateral received by the Administrative
Agent or any other Secured Party to the Secured Obligations or hold such proceeds as additional
Collateral, at the option of the Administrative Agent. The provisions of Section 9-209 of the
NYUCC shall not apply to any account, chattel paper or payment intangible as to which notification
of assignment has been sent to the account debtor or other person obligation on the Collateral,
whether under this Section 10, Section 11 or Section 12.

     Section 11. Power of Attorney.

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          11.01. Appointment and Powers of Administrative Agent. Each Grantor hereby
irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of such Grantor or in
its own name, for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any or all of the following:

               (a) in the name of such Grantor or its own name, or otherwise, take possession of and endorse
and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys
due under any Receivable or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise deemed appropriate by the
Administrative Agent for the purpose of collecting any and all such moneys due under any Receivable
or with respect to any other Collateral whenever payable;

               (b) in the case of any Intellectual Property, execute and deliver, and have recorded, any and
all agreements, instruments, documents and papers as the Administrative Agent may request to
evidence the Security Interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;

               (c) pay or discharge taxes and Liens levied or placed on or threatened against the Collateral,
effect any repairs or provide any insurance and pay all or any part of the premiums therefor and
the costs thereof;

               (d) execute, in connection with any sale provided for in Section 12, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the Collateral;

               (e) exercise all rights of such Grantor as owner of the Pledged Securities or as party to any
partnership, limited liability company or similar agreement, including, without limitation, the
right to sign any and all amendments, instruments, certificates, proxies, and other writings and
exercise all voting and consent rights with respect to the Pledged Securities;

               (f) (1) direct any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct; (2) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express
bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the Collateral; (4) commence
and prosecute any suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (5) defend any suit, action or

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proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise
or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or
releases as the Administrative Agent may deem appropriate; (7) assign any Copyright, Patent or
Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark
pertains) throughout the world for such term or terms, on such conditions, and in such manner, as
the Administrative Agent shall in its sole discretion determine; and (8) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Administrative Agent were the absolute owner thereof for all purposes,
and do, at the Administrative Agent’s option and such Grantor’s expense, at any time, or from time
to time, all acts and things which the Administrative Agent deems necessary to protect, preserve or
realize upon the Collateral and the Security Interest therein and to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do; and

               (g) to the extent that such Grantor’s authorization given in Section 4 is not sufficient, to
file such financing statements or similar documents under the laws of any jurisdiction with respect
hereto, with or without such Grantor’s signature, or a photocopy of this Agreement in substitution
for a financing statement or such other document, as the Administrative Agent may deem appropriate
and to execute in such Grantor’s name such financing statements, other such documents and
amendments thereto and continuation statements which may require such Grantor’s signature.
Anything in this Section 11.01 to the contrary notwithstanding, the Administrative Agent
agrees that it will not exercise any rights under the power of attorney provided for in this
Section 11.01 (other than under paragraph (g) of this Section 11.01) unless an
Event of Default shall have occurred and be continuing and, in the case of paragraph (e) of this
Section 11.01 until the notice referred to in Section 7.04(h) has been given.

          11.02. Failure of Grantor to Perform. If any Grantor fails to perform or comply with
any of its agreements contained herein, the Administrative Agent, at its option, but without any
obligation so to do, may following not less than five (5) days’ prior written notice to the
Borrower, perform or comply, or otherwise cause performance or compliance, with such agreement.

          11.03. Expenses of Attorney-in-Fact. The expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this Section 11, together
with interest thereon at a rate per annum equal to the rate per annum at which interest would then
be payable on past due Base Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.

          11.04. Ratification by Grantor. To the extent permitted by law, each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this
Section 11. This power of attorney is a power coupled with an interest and is irrevocable.

          11.05. No Duty on Secured Party. The powers conferred on the Administrative Agent,
its directors, officers and agents pursuant to this Section 11 are solely to protect the
Secured Parties’ interests in the Collateral and shall not impose any duty upon any of them to

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exercise any such powers. Each Secured Party shall be accountable only for the amounts that
it actually receives as a result of the exercise of such powers, and neither it nor any of its
officers, directors, employees or agents shall be responsible to any Grantor for any act or failure
to act, except for such Secured Party’s own gross negligence or willful misconduct.

     Section 12. Remedies.

          12.01. Default. Grantors shall be in default under this Agreement (a) whenever any
Event of Default has occurred and is continuing (and each of the Grantors shall thereupon be in
default hereunder without regard to whether or to what degree any Grantor individually may have
caused, participated in, or had any knowledge of the occurrence of such Event of Default) and (b)
at all times after the Loans have become due and payable (giving effect to any grace period),
whether at maturity, upon acceleration pursuant to the Credit Agreement or otherwise.

          12.02. Remedies Upon Default. Subject to the provisions of the Intercreditor
Agreement, at any time when any Grantor is in default under this Agreement as set forth in
Section 12.01, the Administrative Agent may exercise and enforce, in any order, (i) each
and all of the rights and remedies available to a secured party upon default under the NYUCC or any
other applicable UCC or other applicable law, (ii) each and all of the rights and remedies
available to it under the Credit Agreement or any other Loan Document and (iii) each and all of the
following rights and remedies:

               (a) Collection Rights. Without notice to any Grantor or any other Loan Party, the
Administrative Agent may notify any or all account debtors and obligors on any accounts,
instruments, general intangibles or other claims constituting Collateral of the Secured Parties’
Security Interests therein and may direct, demand and enforce payment thereof directly to the
Administrative Agent. The provisions of Section 9-209 of the NYUCC shall not apply to any account,
chattel paper or payment intangible as to which notification of assignment has been sent to the
account debtor.

               (b) Taking Possession. The Administrative Agent may (i) enter upon any and all
premises owned or leased by any Grantor where Collateral is located (or believed by the
Administrative Agent to be located), with or (to the fullest extent permitted by law) without
judicial process and without any obligation to pay rent, (ii) prior to the disposition of the
Collateral, store, process, repair or recondition the Collateral or otherwise prepare the
Collateral for disposition in any manner to the extent the Administrative Agent deems appropriate,
(iii) take possession of any Grantor’s premises or place custodians in exclusive control thereof,
remain on such premises and use the same and any Grantor’s equipment for the purpose of completing
any work in process or otherwise preparing the Collateral for sale or selling or otherwise
transferring the Collateral, (iv) take possession of all items of Collateral that are not then in
its possession, either upon such premises or by removal from such premises, and (v) require any
Grantor or the Person in possession thereof to deliver such Collateral to the Administrative Agent
at one or more locations designated by the Administrative Agent and reasonably convenient to it and
each Grantor owning an interest therein.

               (c) Foreclosure. The Administrative Agent may sell, lease, license or otherwise
dispose of or transfer any or all of the Collateral or any part thereof in one or more

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parcels at public sale or in private sale or transaction, on any exchange or market or at the
Administrative Agent’s offices or on any Grantor’s premises or at any other location, for cash, on
credit or for future delivery, and may enter into all contracts necessary or appropriate in
connection therewith, without any notice whatsoever unless required by law. Where permitted by
law, one or more of the Secured Parties may be the purchasers at any such sale and in such event,
if such bid is made by all of the Lenders or otherwise whenever a credit bid is expressly permitted
under the Credit Agreement or approved in writing by the Administrative Agent and the Required
Lenders, the Secured Parties bidding at such sale may bid part or all of the Obligations owing to
them without necessity of any cash payment on account of the purchase price, even though any other
purchaser at such sale is required to bid a purchase price payable in cash. Each Grantor agrees
that at least ten (10) calendar days’ written notice to such Grantor of the time and place of any
public sale of Collateral owned by it (or, to the extent such Grantor is entitled by law to notice
thereof, the public sale of any other Collateral), or the time after which any private sale of
Collateral owned by it (or, to the extent such Grantor is entitled by law to notice thereof, the
private sale of any other Collateral) is to be made, shall be commercially reasonable. For
purposes of such notice, to the fullest extent permitted by law (i) each Grantor waives notice of
any sale of Collateral owned by any other Grantor and (ii) each Grantor agrees that notice given to
the Borrower shall constitute notice given to such Grantor. The giving of notice of any such sale
or other disposition shall not obligate the Administrative Agent to proceed with the sale or
disposition, and any such sale or disposition may be postponed or adjourned from time to time,
without further notice.

               (d) Voting Rights. Subject to Section 7.04(h), the Administrative Agent may
exercise any and all rights of any Grantor as the owner of any Pledged Securities, including,
without limitation, voting rights, rights to give or withhold consent under any agreement under
which any Pledged Security is issued and all other rights referred to in Section 11.01(e).

               (e) Use of Intellectual Property. The Administrative Agent may, on a royalty-free
basis, use and license use of any Trademark, Trade Secret, trade name, trade style, Copyright,
Patent, technical knowledge or process or other Intellectual Property owned, held or used by any
Grantor in respect of any Collateral as to which any right or remedy of the Administrative Agent is
exercised or enforced. In addition, the Administrative Agent may exercise and enforce such rights
and remedies for collection as may be available to it by law or agreement. Each Grantor grants a
license pursuant to Section 12.03 in connection therewith.

          12.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Administrative Agent to exercise rights and remedies under this Section 12 at such time as
the Administrative Agent shall be lawfully and otherwise 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 such Grantor) to use,
license or sub-license any of the Collateral consisting of Intellectual Property now owned or
hereafter acquired by the Grantor to the extent that such Grantor is not legally or contractually
prohibited from doing so (Grantor agreeing to use commercially reasonable efforts not to enter
into, after the Closing Date, any such contractual prohibition), 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

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compilation or printout thereof. The use of such license by the Administrative Agent shall be
exercised, subject to the provisions of the Intercreditor Agreement, at the Administrative Agent’s
option, only upon the occurrence and during the continuation of an Event of Default; provided that
any license, sub-license or other transaction entered into by the Administrative Agent in
accordance herewith shall be binding upon each Grantor notwithstanding any subsequent cure, waiver
or other termination of an Event of Default.

          12.04. Waivers by Grantors. Each Grantor hereby irrevocably waives (a) all rights of
redemption from any foreclosure sale, (b) the benefit of all valuation, appraisal, exemption and
moratorium laws, (c) to the fullest extent permitted by law, all rights to notice or a hearing
prior to the exercise by the Administrative Agent of its right to take possession of any
Collateral, whether by self-help or by legal process and any right to object to the Administrative
Agent taking possession of any Collateral by self-help, and (d) if the Administrative Agent seeks
to obtain possession of any Collateral by replevin, claim and delivery, attachment, levy or other
legal process, (i) any notice or demand for possession prior to the commencement of legal
proceedings, (ii) the posting of any bond or security in any such proceedings, and (iii) any
requirement that the Administrative Agent retain possession and not dispose of any Collateral until
after a trial or final judgment in such proceedings.

          12.05. Application of Proceeds. Except as expressly provided elsewhere in this
Agreement and the Intercreditor Agreement, all proceeds received by the Administrative Agent in
respect of any sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of the Administrative Agent, be held by the Administrative Agent
as Collateral for, or then, or at any other time thereafter, applied in full or in part by the
Administrative Agent against, the Secured Obligations in the following order of priority:

          FIRST: to the payment of all reasonable out of pocket costs and expenses of such sale,
collection or other realization, including reasonable compensation to the Administrative
Agent and its agents and counsel, and all other reasonable expenses, liabilities and
advances made or incurred by the Administrative Agent in connection therewith, and all
amounts for which the Administrative Agent is entitled to indemnification hereunder and all
reasonable advances made by the Administrative Agent hereunder for the account of any
Grantor, and to the payment of all reasonable out of pocket costs and expenses paid or
incurred by the Administrative Agent in connection with the exercise of any right or remedy
hereunder, all in accordance with Section 18.09;

          SECOND: to the payment of all other Secured Obligations (for the ratable benefit of the
holders thereof) then due and payable;

          THIRD: to any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC;
and

          FOURTH, to the payment to or upon the order of the Grantor entitled thereto, or to
whomsoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct, of any surplus then remaining from such proceeds.

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          12.06. Surplus, Deficiency. Subject to the provisions of the Intercreditor Agreement,
any surplus proceeds of any sale or other disposition by the Administrative Agent of any Collateral
remaining after discharge of the Credit Agreement and after all Secured Obligations are paid in
full and in cash and any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC
are paid in full shall be paid over to the Grantor entitled thereto, or to whomever may be lawfully
entitled to receive such surplus or as a court of competent jurisdiction may direct, but prior to
termination and discharge of the Credit Agreement, such surplus proceeds may be retained by the
Administrative Agent and held as Collateral until termination and discharge of the Credit
Agreement. The Borrower and each Guarantor shall be and remain liable for any deficiency.

          12.07. Information Related to the Collateral. If, during the continuance of an Event
of Default, the Administrative Agent determines to sell or otherwise transfer any Collateral, each
Grantor shall, and shall cause any Person controlled by it to, furnish to the Administrative Agent
all information the Administrative Agent may request that pertains or could pertain to the value or
condition of the Collateral or that would or might facilitate such sale or transfer. The
Administrative Agent shall have the right, notwithstanding any confidentiality obligation or
agreement otherwise binding upon it, freely (but not in violation of any law, including federal
securities laws) to disclose such information, and any and all other information (including
confidential information) pertaining in any manner to the Collateral or the assets, liabilities,
results of operations, business or prospects of any Secured Parties, freely to any Person that the
Administrative Agent in good faith believes to be a potential or prospective purchaser in such sale
or transfer, without liability for any disclosure, dissemination or use that may be made as to such
information by any such Person.

          12.08. Sale Exempt from Registration. The Administrative Agent shall be entitled at
any such sale or other transfer, if it deems it advisable to do so, to restrict the prospective
bidders or purchasers to Persons who will provide assurances satisfactory to the Administrative
Agent that the Collateral may be offered and sold to them without registration under the Securities
Act, and without registration or qualification under any other applicable state or federal law.
Upon the 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. The
Administrative Agent may solicit offers to buy the Collateral, or any part of it, from a limited
number of investors deemed by the Administrative Agent, in its good faith judgment or in good faith
reliance upon advice of its counsel, to meet the requirements to purchase securities under
Regulation D promulgated under the Securities Act (or any other regulation of similar import). If
the Administrative Agent solicits such offers from such investors, then the acceptance by the
Administrative Agent of the highest offer obtained from any of them shall be deemed to be a
commercially reasonable method of disposition of the Collateral.

          12.09. Rights and Remedies Cumulative. The rights provided for in this Agreement and
the other Loan Documents are cumulative and are not exclusive of any other rights, powers or
privileges or remedies provided by law or in equity, or under any other instrument, document or
agreement. The Administrative Agent may exercise and enforce each right and remedy available to it
either before or concurrently with or after, and independently of, any exercise or enforcement of
any other right or remedy of the Administrative Agent or any

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Secured Party against any Person or property. All such rights and remedies shall be
cumulative, and no one of them shall exclude or preclude any other.

          12.10. No Direct Enforcement by Secured Parties. Subject to the provisions of the
Intercreditor Agreement, the Administrative Agent may freely exercise and enforce any and all of
its rights and remedies hereunder, for the benefit of the Secured Parties. No Secured Party, other
than the Administrative Agent, shall have any independent right to collect, take possession of,
foreclose against or otherwise enforce the Security Interests granted hereby.

     Section 13. Standards for Exercising Remedies.

          13.01. Commercially Reasonable Manner. To the extent that applicable law imposes
duties on the Administrative Agent to exercise remedies in a commercially reasonable manner, each
Grantor acknowledges and agrees that it is not commercially unreasonable for the Administrative
Agent (a) to fail to incur expenses reasonably deemed significant by the Administrative Agent to
prepare Collateral for disposition or otherwise to complete raw material or work in process into
finished goods or other finished products for disposition or to postpone any such disposition
pending any such preparation or processing; (b) to fail to obtain third party consents for access
to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be
collected or disposed of; (c) to fail to exercise collection remedies against account debtors or
other persons obligated on Collateral or to remove any Lien on or any adverse claims against
Collateral; (d) to exercise collection remedies against account debtors and other persons obligated
on Collateral directly or through the use of collection agencies and other collection specialists;
(e) to advertise dispositions of Collateral through publications or media of general circulation,
whether or not the Collateral is of a specialized nature; (f) to contact other persons, whether or
not in the same business as such Grantor, for expressions of interest in acquiring all or any
portion of the Collateral; (g) to hire one or more professional auctioneers to assist in the
disposition of Collateral, whether or not the collateral is of a specialized nature; (h) to dispose
of Collateral by utilizing Internet sites that provide for the auction of assets of the types
included in the Collateral or that have the reasonable capability of doing so, or that match buyers
and sellers of assets; (i) to dispose of assets in wholesale rather than retail markets; (j) to
disclaim disposition warranties; (k) to purchase insurance or credit enhancements to insure the
Administrative Agent against risks of loss, collection or disposition of Collateral or to provide
to the Administrative Agent a guaranteed return from the collection or disposition of Collateral;
or (I) to the extent deemed appropriate by the Administrative Agent, to obtain the services of
other brokers, investment bankers, consultants and other professionals to assist the Administrative
Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that
the purpose of this Section 13 is to provide non-exhaustive indications of what actions or
omissions by the Administrative Agent would not be commercially unreasonable in the Administrative
Agent’s exercise of remedies against the Collateral and that other actions or omissions by the
Administrative Agent shall not be deemed commercially unreasonable solely on account of not being
indicated in this Section 13. Without limiting the foregoing, nothing contained in this
Section 13 shall be construed to grant any rights to any Grantor or to impose any duties on
the Administrative Agent that would not have been granted or imposed by this Agreement or by
applicable law in the absence of this Section 13.

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          13.02. Standard of Care. The powers conferred on the Administrative Agent hereunder
are solely to protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the exercise of reasonable care in the custody of any
Collateral in its possession and the accounting for moneys actually received by it hereunder, the
Administrative Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or to protect, preserve, vote or exercise any rights
pertaining to any Collateral. The Administrative Agent shall be deemed to have exercised
reasonable care in the custody and preservation of Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which the Administrative Agent accords its own
property or if it selects, with reasonable care, a custodian to hold such Collateral on its behalf.

     Section 14. Waivers by Grantor; Obligations Absolute.

          14.01. Specific Waivers. Each Grantor waives demand, notice, protest, notice of
acceptance of this Agreement, notice of loans made, credit extended, Collateral received or
delivered or other action taken in reliance hereon and all other demands and notices of any
description.

          14.02. Obligations Absolute. All rights of the Administrative Agent hereunder, the
Security Interest and all obligations of the Grantors 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 Secured 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 Secured 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 nonperfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from or any
acceptance of partial payment thereon and or settlement, compromise or adjustment of any Secured
Obligation or of any guarantee, securing or guaranteeing all or any of the Secured Obligations, or
(d) any other circumstance that might otherwise constitute a defense available to, or a discharge
of, any Grantor in respect of the Secured Obligations or this Agreement.

     Section 15. Marshalling. The Administrative Agent shall not be required to marshal
any present or future collateral security (including but not limited to this Agreement and the
Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to
resort to such collateral security or other assurances of payment in any particular order, and all
of its rights hereunder and in respect of such collateral security and other assurances of payment
shall be cumulative and in addition to all other rights, however existing or arising. To the
extent that it lawfully may, each Grantor hereby agrees that it shall not invoke any law relating
to the marshalling of collateral which might cause delay in or impede the enforcement of the
Administrative Agent’s rights under this Agreement or under any other instrument creating or
evidencing any of the Secured Obligations or under which any of the Secured Obligations is
outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise
assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the
benefits of all such laws.

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     Section 16. Interest. Until paid, all amounts due and payable by each Grantor
hereunder shall be a debt secured by the Collateral and shall bear, whether before or after
judgment, interest at a rate per annum equal to the rate per annum at which interest would then be
payable on past due Base Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by such Grantor, and such interest shall be payable by
such Grantor to the Administrative Agent on demand.

     Section 17. Reinstatement. The obligations of each Grantor pursuant to this
Agreement shall continue to be effective or automatically be reinstated, as the case may be, if at
any time payment of any of the Secured Obligations is rescinded or otherwise must be restored or
returned by the Administrative Agent or any other Secured Party upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of such Grantor or any other obligor or otherwise, all
as though such payment had not been made.

     Section 18. Miscellaneous.

          18.01. Notices. All notices, requests and demands to or upon the Administrative Agent
or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of
the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor
shall be addressed to such Guarantor at its notice address set forth beneath its signature to this
Agreement.

          18.02. GOVERNING LAW, CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Each Grantor agrees that any
suit for the enforcement of this Agreement may be brought in the courts of the State of New York or
any federal court sitting therein and consents to the non-exclusive jurisdiction of such court and
to service of process in any such suit being made upon such Grantor by mail at the address
specified in Section 10.2 of the Credit Agreement or in the case of any Guarantor, beneath
its signature to this Agreement. Each Grantor hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such suit is brought in an
inconvenient court.

          18.03. WAIVER OF JURY TRIAL, ETC. EACH GRANTOR WAIVES ITS RIGHT TO A JURY TRIAL WITH
RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY LITIGATION OR DISPUTE DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR
THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. EXCEPT AS PROHIBITED BY LAW, EACH GRANTOR
WAIVES ANY RIGHT WHICH IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION OR DISPUTE REFERRED TO IN
THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. Each Grantor certifies that neither the
Administrative Agent, any other Secured Party nor any representative, agent or attorney of the
Administrative Agent or other Secured Party has represented, expressly or otherwise, that the
Administrative Agent or other Secured Party would not, in the event of litigation, seek to enforce
the foregoing waivers and acknowledges that, in entering into the

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Credit Agreement and the other Loan Documents to which any Secured Party is a party, such
Secured Party is relying upon, among other things, the waivers and certifications contained in this
Section 18.03.

          18.04. Counterparts. This Agreement may be executed in two or more separate
counterparts, each of which shall constitute an original and all of which shall collectively and
separately constitute one and the same agreement.

          18.05. Headings. The headings of each section of this Agreement are for convenience
only and shall not define or limit the provisions thereof.

          18.06. No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

          18.07. Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision in any other
jurisdiction).

          18.08. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Grantors herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the Secured Parties and shall survive the execution and delivery of the Credit Agreement,
and the advance of all extensions of credit contemplated thereby, regardless of any investigation
made by any Secured Party, and shall continue in full force and effect until this Agreement shall
terminate (or thereafter to the extent provided herein).

          18.09. Fees and Expenses, Indemnification.

               (a) The Grantors, jointly and severally, agree to pay upon demand the amount of any and all
expenses, including the fees, disbursements and other charges of counsel and of any experts or
agents, which (i) any Secured Party may incur in connection with (x) collecting against any Grantor
under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights
under this Agreement and the other Loan Documents, (y) the exercise, enforcement or protection of
any of the rights of such Secured Party hereunder or (z) the failure of any Grantor to perform or
observe any of the provisions hereof, and (ii) the Administrative Agent may incur in connection
with (x) the administration of this Agreement (including the customary fees and charges of such
Secured Party for any audits conducted by it or on its behalf with respect to the accounts
receivable or inventory) or (y) the custody or preservation of, or the sale of, collection from or
other realization upon any of the Collateral.

               (b) Each Grantor agrees to pay, and to save the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,

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suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this Agreement to the extent
the Borrower would be required to do so pursuant to Section 10.5 of the Credit Agreement.

               (c) The agreements in this Section shall survive repayment of the Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents.

               (d) Each Grantor agrees that the provisions of Section 2.20 of the Credit Agreement
are hereby incorporated herein by reference, mutatis mutandis, and each Secured Party shall be
entitled to rely on each of them as if they were fully set forth herein.

          18.10. Binding Effect; Several Agreement. This Agreement is binding upon each Grantor
and the Secured Parties and their respective successors and permitted assigns, and shall inure to
the benefit of the Grantors, the Secured Parties and their respective successors and permitted
assigns, except that no Grantor shall have any right to assign or transfer its rights or
obligations hereunder or any interest herein, except as specifically permitted by the Credit
Agreement, without the prior written consent of the Administrative Agent (and any such assignment
or transfer shall be void).

          18.11. Waivers; Amendment

               (a) No failure or delay of the Administrative Agent in exercising any power or right hereunder
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 Secured Parties hereunder and of the Secured Parties under the Credit Agreement and
other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provisions of this Agreement or consent to any departure by any
Grantor therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. No notice to or demand on any Grantor in any case shall entitle such
or any other Grantor 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 each
affected Grantor; provided, that any provision of this Agreement imposing obligations on
any Grantor may be waived by the Administrative Agent in a written instrument executed by the
Administrative Agent in accordance with Section 10.1 of the Credit Agreement.

          18.12. Set-Off. Each Grantor hereby irrevocably authorizes each Secured Party at any
time and from time to time while an Event of Default shall have occurred and be continuing, without
notice to such Grantor or any other Grantor, any such notice being expressly waived by each
Grantor, to set-off and appropriate and apply any and all deposits (general or

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special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Secured Party to or for the
credit or the account of such Grantor, or any part thereof in such amounts as such Secured Party
may elect, against and on account of the obligations and liabilities of such Grantor to such
Secured Party hereunder and claims of every nature and description of such Secured Party against
such Grantor, in any currency, whether arising hereunder, under the Credit Agreement, any other
Loan Document or otherwise, as such Secured Party may elect, whether or not any Secured Party has
made any demand for payment and although such obligations, liabilities and claims may be contingent
or unmatured. Each Secured Party shall notify such Grantor promptly of any such setoff and the
application made by such Secured Party of the proceeds thereof, provided that the failure to give
such notice shall not affect the validity of such set-off and application. The rights of each
Secured Party under this Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which such Secured Party may have.

          18.13. Integration. This Agreement and the other Loan Documents represent the
agreement of the Grantors, the Administrative Agent and the other Secured Parties with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or
warranties by any Secured Party relative to subject matter hereof and thereof not expressly set
forth or referred to herein or in the other Loan Documents.

          18.14. Acknowledgments. Each Grantor hereby acknowledges that:

               (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

               (b) no Secured Party has any fiduciary relationship with or duty to any Grantor arising out of
or in connection with this Agreement or any of the other Loan Documents, and the relationship
between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

               (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and
the Secured Parties.

          18.15. Additional Grantors and Guarantors. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 6.10 of the Credit Agreement shall
become a Grantor and Guarantor for all purposes of this Agreement upon execution and delivery by
such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

          18.16. Releases.

               (a) Notwithstanding anything to the contrary contained in the Credit Agreement, herein or in
any other Loan Document, upon request of the Borrower in connection with any Disposition of
Property permitted by the Loan Documents or upon the occurrence of any other circumstance referred
to in Section 10.15 of the Credit Agreement, the Administrative

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Agent shall (without notice to or vote or consent of any Lender, or any affiliate of any
Lender that is a party to any Specified Hedge Agreement or any other Secured Party) take such
actions as shall be required to release the Security Interest in any Collateral being Disposed of
in such Disposition, and to release any guarantee obligations of any Person being Disposed of in
such Disposition, to the extent necessary to permit consummation of such Disposition in accordance
with the Loan Documents. The Borrower shall deliver to the Administrative Agent, at least five (5)
Business Days prior to the date of the proposed release, a written request for release identifying
the relevant Collateral being Disposed of in such Disposition and the terms of such Disposition.

               (b) If any of the Collateral shall be Disposed of by any Grantor in a transaction permitted by
the Credit Agreement, then the Administrative Agent, at the request and sole expense of such
Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such Collateral. At the
request and sole expense of the Borrower, a Subsidiary Guarantor shall be released from its
obligations hereunder in the event that all the Capital Stock of such Subsidiary Guarantor shall be
Disposed of in a transaction permitted by the Credit Agreement. The Borrower shall deliver to the
Administrative Agent, at least five (5) Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Subsidiary Guarantor and the terms of the
Disposition in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Borrower stating that such transaction is in
compliance with the Credit Agreement and the other Loan Documents and that the Proceeds of such
Disposition will be applied in accordance therewith.

          18.17. Intercompany Debt.

               (a) Each Grantor hereby agrees that any intercompany Indebtedness or other intercompany
payables or receivables, or intercompany advances directly or indirectly made by or owed to such
Grantor by any other Grantor (collectively, “Intercompany Debt”), of whatever nature at any
time outstanding shall be subordinate and subject in right of payment to the prior payment in full
in cash of the Borrower Obligations. Each Grantor hereby agrees that following a single written
notice to the Borrower, such Grantor will not, while any Event of Default is continuing, accept any
payment, including by offset, on any Intercompany Debt until the Termination Date, in each case,
except with the prior written consent of the Administrative Agent.

               (b) Subject to the provisions of the Intercreditor Agreement, in the event that any payment on
any Intercompany Debt shall be received by a Grantor other than as permitted by this Section
18.17 before the Termination Date, such Grantor shall receive such payments and hold the same
in trust for, segregate the same from its own assets and shall immediately pay over to, the
Administrative Agent for the benefit of the Administrative Agent and Lenders all such sums to the
extent necessary so that the Administrative Agent and the Lenders shall have been paid in full, in
cash, all Borrower Obligations owed or which may become owing.

               (c) Subject to the provisions of the Intercreditor Agreement, upon any payment or distribution
of any assets of any Grantor of any kind or character, whether in cash,

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property or securities by set-off, recoupment or otherwise, to creditors in any liquidation or
other winding-up of such Grantor or in the event of any case, proceeding or other action described
in Section 8(f) of the Credit Agreement, the Administrative Agent and Lenders shall first be
entitled to receive payment in full in cash, in accordance with the terms of the Borrower
Obligations and of this Agreement, of all amounts payable under or in respect of such Borrower
Obligations, before any payment or distribution is made on, or in respect of, any Intercompany
Debt, in any such case, proceeding or other action, any distribution or payment, to which the
Administrative Agent or any Lender would be entitled except for the provisions hereof shall be paid
by such Grantor, or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other
person making such payment or distribution directly to the Administrative Agent (for the benefit of
the Administrative Agent and the Lenders) to the extent necessary to pay all such Borrower
Obligations in full in cash, after giving effect to any concurrent payment or distribution to the
Administrative Agent and Lenders (or to the Administrative Agent for the benefit of the
Administrative Agent and Lenders).

          18.18. FCC Matters. Notwithstanding anything to the contrary in this Agreement or any
other Loan Document, the Administrative Agent’s and the Lenders’ remedies hereunder and under the
other Loan Documents are subject to compliance with the Communications Act of 1934, as amended, and
to all applicable rules, regulations and policies of the FCC, and neither the Administrative Agent
nor any Lender nor any other Secured Party will take any action pursuant to this Agreement or any
other Loan Document that would constitute or result in any assignment of an FCC License or any
transfer of control of the Borrower or any of its Subsidiaries or any Station if such assignment of
license or transfer of control would require under then existing law (including the written rules
and regulations promulgated by the FCC), the prior approval of the FCC, without first obtaining
such approval of the FCC. Without limiting the generality of the foregoing, the parties hereto
agree that to the extent required by law: (i) voting rights with respect to the Collateral will
remain with Grantors upon and following the occurrence of an Event of Default unless any required
prior approvals of the FCC to the transfer of such voting rights to the Administrative Agent shall
have been obtained; and (ii) prior to the exercise of voting rights by a purchaser at any sale of
the Collateral, the prior consent of the FCC pursuant to 47 U.S.C. section 310(d) will be obtained.

          18.19. Intercreditor Agreement. Notwithstanding anything herein to the contrary, the
lien and security interest granted to the Administrative Agent pursuant to this Agreement and the
exercise of any right or remedy by the Administrative Agent hereunder are subject to the provisions
of the Intercreditor Agreement, dated as of June 10, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”, among the Borrower,
Lehman Commercial Paper Inc., as First Lien Collateral Agent, and Lehman Commercial Paper Inc., as
Second Lien Collateral Agent, and certain other persons party or that may become party thereto from
time to time. In the event of any conflict between the terms of the Intercreditor Agreement and
this Agreement, the terms of the Intercreditor Agreement shall govern and control with respect to
any exercise of a right or remedy. Without limiting the generality of the foregoing, and
notwithstanding anything herein to the contrary, all rights and remedies of the Administrative
Agent (and the Secured Parties) shall be subject to the terms of the Intercreditor Agreement, and
until the First Lien Obligations (as defined in the Intercreditor Agreement) have been Fully
Satisfied (as such term is defined in the First Lien Guarantee and Collateral Agreement), (i) no
Grantor shall be required hereunder to take any action that is

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inconsistent with such Grantor’s obligations under the First Lien Loan Documents and (ii) any
obligation of any Grantor hereunder with respect to the delivery or control of any Collateral, the
notation of any lien on any certificate of title, bill of lading or other Document, the giving of
any notice to any bailee or other Person, the provision of voting rights or the obtaining of any
consent of any Person shall be deemed to be satisfied if the Grantor complies with the requirements
of the similar provision of the applicable First Lien Loan Document. Until the First Lien
Obligations (as defined in the Intercreditor Agreement) have been Fully Satisfied (as such term is
defined in the First Lien Guarantee and Collateral Agreement), the Administrative Agent may not
require any Grantor to take any action with respect to the creation, perfection or priority of its
security interest, whether pursuant to the express terms hereof or pursuant to the further
assurances provisions hereof, unless the First Lien Agent shall have required such Grantor to take
similar action, and delivery of any Collateral to the First Lien Agent pursuant to the First Lien
Loan Documents shall satisfy any delivery requirement hereunder.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

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     IN WITNESS WHEREOF, each of the undersigned has caused this Second Lien Guarantee and
Collateral Agreement to be duly executed and delivered as of the date first above written.

GRANTORS:

SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation

SPANISH BROADCASTING SYSTEM FINANCE CORPORATION

SPANISH BROADCASTING SYSTEM OF GREATER MIAMI, INC.

SPANISH BROADCASTING SYSTEM OF ILLINOIS, INC.

SPANISH BROADCASTING SYSTEM INC., a New Jersey corporation

SPANISH BROADCASTING SYSTEM OF SAN ANTONIO, INC.

ALARCON HOLDINGS, INC.

SPANISH BROADCASTING SYSTEM OF CALIFORNIA, INC.

SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Delaware corporation

SPANISH BROADCASTING SYSTEM OF FLORIDA, INC.

SBS OF GREATER NEW YORK, INC.

SBS FUNDING, INC.

SBS BAY AREA, LLC

SPANISH BROADCASTING SYSTEM NETWORK, INC.

SBS PROMOTIONS, INC.

SPANISH BROADCASTING SYSTEM SOUTHWEST, INC.

SPANISH BROADCASTING SYSTEM-SAN FRANCISCO, INC.

WRMA LICENSING, INC.

WXDJ LICENSING, INC.

WDEK LICENSING, INC.

WKIE LICENSING, INC.

WKIF LICENSING, INC.

WLEY LICENSING, INC.

WSKQ LICENSING, INC.

KLEY LICENSING, INC.

KSAH LICENSING, INC.

KZAB LICENSING, INC.

KZBA LICENSING, INC.

KPTI LICENSING, INC.

WCMQ LICENSING, INC.

KLAX LICENSING, INC.

WPAT LICENSING, INC.

KRZZ LICENSING, LLC.

KXOL LICENSING, INC.

	By:	 	/s/ Joseph A. Garcia

Name: Joseph A. Garcia

Title: Chief Financial Officer, Executive 

          Vice President and Secretary

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Address for Notice:

2601 South Bayshore Drive, PH II

Coconut Grove, Florida 33133

Attention: Joseph A. Garcia

Telecopy: (305) 441-7861

Telephone: (305) 441-6901

Copy to:

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: William E. Wallace, Esq.

Telecopy: (212) 836-3598

Telephone: (212) 836-8556

Accepted: as to Sections 8.02 and 8.03

LEHMAN COMMERCIAL PAPER INC.

as Administrative Agent

	By:	 	/s/ V. Paul Arzouian

Name: V. Paul Arzouian

Title: Authorized Signatory

Address for Notice:

745 Seventh Avenue

New York, New York 10019

Attention: Paul Arzouian

Telecopy: (646) 758-4980

Telephone: (212) 526-5803

Copy to:

Dechert LLP

30 Rockefeller Plaza

New York, New York 10112-2200

Attention: Bonnie Barsamian, Esq.

Telecopy: (212) 249-9445

Telephone: (212) 698-3520

-42-

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