Document:

Exhibit 10.4

 

Exhibit 10.4

Execution Copy

SECOND LIEN PLEDGE AND SECURITY AGREEMENT

by and between

DAY INTERNATIONAL, INC.

DAY INTERNATIONAL GROUP, INC.

VARN INTERNATIONAL, INC.

DAY INTERNATIONAL FINANCE, INC.

NETWORK DISTRIBUTION INTERNATIONAL

NETWORK DISTRIBUTION INTERNATIONAL, INC.

as Grantors

and

THE BANK OF NEW YORK,

as Collateral Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 1. DEFINITIONS; GRANT OF SECURITY
	 	 	2	 
	1.1 General Definitions
	 	 	2	 
	1.2 Definitions; Interpretation
	 	 	9	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY
	 	 	10	 
	2.1 Grant of Security
	 	 	10	 
	2.2 Certain Limited Exclusions
	 	 	10	 
	2.3 Lien Subordination
	 	 	10	 
	 
	 	 	 	 
	SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE
	 	 	11	 
	3.1 Security for Obligations
	 	 	11	 
	3.2 Continuing Liability Under Collateral
	 	 	11	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS
	 	 	12	 
	4.1 Generally
	 	 	12	 
	4.2 Equipment and Inventory
	 	 	15	 
	4.3 Receivables
	 	 	16	 
	4.4 Investment Related Property
	 	 	18	 
	4.5 Material Contracts
	 	 	24	 
	4.6 Letter of Credit Rights
	 	 	25	 
	4.7 Intellectual Property
	 	 	26	 
	4.8 Commercial Tort Claims
	 	 	29	 
	 
	 	 	 	 
	SECTION 5. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS
	 	 	29	 
	5.1 Access; Right of Inspection
	 	 	30	 
	5.2 Further Assurances
	 	 	30	 
	5.3 Additional Grantors
	 	 	31	 
	 
	 	 	 	 
	SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	31	 
	6.1 Power of Attorney
	 	 	31	 
	6.2 No Duty on the Part of Collateral Agent or Secured Parties
	 	 	32	 
	 
	 	 	 	 
	SECTION 7. REMEDIES
	 	 	32	 
	7.1 Generally
	 	 	32	 
	7.2 Application of Proceeds
	 	 	34	 
	7.3 Sales on Credit
	 	 	34	 
	7.4 Deposit Accounts
	 	 	34	 
	7.5 Investment Related Property
	 	 	35	 
	7.6 Intellectual Property
	 	 	35	 
	7.7 Cash Proceeds
	 	 	37	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL AGENT
	 	 	37	 
	 
	 	 	 	 
	SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS
	 	 	38	 

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	SECTION 10. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM
	 	 	38	 
	 
	 	 	 	 
	SECTION 11. MISCELLANEOUS
	 	 	39	 
	 
	 	 	 	 
	SECTION 12. CONFLICTS WITH FIRST LIEN LOAN DOCUMENTS
	 	 	38	 
	 
	 	 	 	 
	SCHEDULE 4.1 — GENERAL INFORMATION
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.2 — LOCATION OF EQUIPMENT AND INVENTORY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.4 — INVESTMENT RELATED PROPERTY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.6 — DESCRIPTION OF LETTERS OF CREDIT
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.7
— INTELLECTUAL PROPERTY - EXCEPTIONS
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.8 — COMMERCIAL TORT CLAIMS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A — PLEDGE SUPPLEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT C — SECURITIES ACCOUNT CONTROL AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT D — DEPOSIT ACCOUNT CONTROL AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT E — TRADEMARK SECURITY AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT F — COPYRIGHT SECURITY AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT G — PATENT SECURITY AGREEMENT
	 	 	 	 

 ii

 

 

          This SECOND LIEN PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or
otherwise modified from time to time, this “Agreement”), dated as of December 5, 2005, is made by
and between DAY INTERNATIONAL, INC., a Delaware corporation (the “Company”), DAY INTERNATIONAL
GROUP, INC., a Delaware corporation (“Holdings”) and CERTAIN SUBSIDIARIES OF THE COMPANY, as
Guarantors (described below) (each of the Guarantors, the Company and Holdings are referred to
hereinafter individually as a “Grantor”, and collectively as the “Grantors”), and THE BANK OF NEW
YORK, as collateral agent for the Secured Parties described below (together with its successors,
designees and permitted assigns in such capacity, the “Collateral Agent”).

RECITALS:

     WHEREAS, reference is made to that certain Credit and Guaranty Agreement, dated as of the date
hereof (as it may be amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among the COMPANY, HOLDINGS AND CERTAIN AFFILIATES OF THE COMPANY as
guarantors party thereto (the “Guarantors”), the financial institutions from time to time parties
thereto (such financial institutions, together with their respective successors and assigns, are
referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), GOLDMAN
SACHS CREDIT PARTNERS L.P. (“GSCP”), as Sole Lead Arranger, Sole Bookrunner and Sole Syndication
Agent (in each such capacity, the “Arranger”), and THE BANK OF NEW YORK as Administrative Agent (in
such capacity, the “Administrative Agent”) and as Collateral Agent;

     WHEREAS, subject to the terms and conditions of the Credit Agreement, certain Grantors may
enter into one or more Hedge Agreements with one or more Lender Counterparties;

     WHEREAS, in order to induce the Secured Parties (as hereinafter defined) to provide Loans and
other financial accommodations under the Credit Agreement and Hedge Agreements, each Guarantor has
agreed pursuant to the Credit Agreement to guaranty all of the Obligations (as hereinafter defined)
and have agreed to cause certain future Affiliates of the Company to guaranty all of the
Obligations (the “Second Lien Guaranty”); and

     WHEREAS, in order to induce the Collateral Agent and the Secured Parties to enter into the
Credit Agreement and other Hedge Agreements and to induce the Secured Parties to make the Loans and
provide other financial accommodations, Grantors have agreed to grant a continuing Lien on the
Collateral (as hereinafter defined) to secure all of the Obligations;

     WHEREAS, as of the date hereof, Grantors have also entered into (a) that certain Credit and
Guaranty Agreement, dated as of the date hereof (as may be amended, supplemented or otherwise
modified from time to time, the “First Lien Credit Agreement”), by and among the Grantors, the
lenders party thereto from time to time, GSCP, as sole bookrunner, sole lead arrangers and sole
syndication agent (in each such capacity, the “First Lien Arranger”), and as administrative agent
and collateral agent (together with its permitted successors and assigns, in such capacities, the
“First Lien Collateral Agent”), and (b) that certain First Lien Pledge and Security Agreement,
dated as of the date hereof (as may be amended, supplemented or otherwise modified from time to
time, the “First Lien Security Agreement”), by and between each of the Grantors and the First Lien
Collateral Agent, pursuant to which each Grantor has granted a first priority Lien to the First
Lien Collateral Agent for the benefit of the holders of First Lien Obligations (as defined in the
Intercreditor Agreement referred to below) on the Collateral to secure such Grantor’s obligations
under the First Lien Loan Documents (as defined in the Intercreditor Agreement); and

 

 

     WHEREAS, Company, the First Lien Collateral Agent and the Collateral Agent have entered into
an Intercreditor Agreement, dated as of the date hereof (as may be amended, supplemented or
otherwise from time to time, the “Intercreditor Agreement”);

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and mutual
covenants herein contained, each Grantor and the Collateral Agent 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; GRANT OF SECURITY.

     1.1 General Definitions. In this Agreement, the following terms shall have the following
meanings:

          “Account Debtor” shall mean each Person who is obligated on a Receivable or any Supporting
Obligation related thereto.

          “Accounts” shall mean all “accounts” as defined in Article 9 of the UCC.

          “Additional Grantors” shall have the meaning assigned in Section 5.3.

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

          “Assigned Agreements” shall mean all agreements and contracts to which such Grantor is a party
as of the date hereof, or to which such Grantor becomes a party after the date hereof, including,
without limitation, each Material Contract, as each such agreement may be amended, supplemented or
otherwise modified from time to time.

          “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as now
and hereafter in effect, or any successor statute.

          “Cash Proceeds” shall have the meaning assigned in Section 7.7.

          “Chattel Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including,
without limitation, “electronic chattel paper” or “tangible chattel paper”, as each term is defined
in Article 9 of the UCC.

          “Collateral” shall have the meaning assigned in Section 2.1.

          “Collateral Account” shall mean any account established by the Collateral Agent.

          “Collateral Agent” shall have the meaning set forth in the preamble.

          “Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and related data processing software and similar items that at any time evidence or contain
information relating to any of the Collateral or are otherwise necessary or helpful in the
collection thereof or realization thereupon.

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          “Collateral Support” shall mean all property (real or personal) assigned, hypothecated or
otherwise securing any Collateral and shall include any security agreement or other agreement
granting a lien or security interest in such real or personal property.

          “Commercial Tort Claims” shall mean all “commercial tort claims” as defined in Article 9 of
the UCC, including, without limitation, all commercial tort claims listed on Schedule 4.8 (as such
schedule may be amended or supplemented from time to time).

          “Commodities Accounts” (i) shall mean all “commodity accounts” as defined in Article 9 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4 under
the heading “Commodities Accounts” (as such schedule may be amended or supplemented from time to
time).

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

          “Controlled Foreign Corporation” shall mean “controlled foreign corporation” as defined in the
Tax Code.

          “Copyright Licenses” shall mean any and all agreements providing for the granting of any right
in or to Copyrights (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Schedule 4.7(B) (as such schedule may be amended or
supplemented from time to time).

          “Copyrights” shall mean all United States, and foreign copyrights (including Community
designs), including but not limited to copyrights in software and databases, and all Mask Works (as
defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered, and,
with respect to any and all of the foregoing: (i) all registrations and applications therefor
including, without limitation, the registrations and applications referred to in Schedule 4.7(A)
(as such schedule may be amended or supplemented from time to time), (ii) all extensions and
renewals thereof, (iii) all rights corresponding thereto throughout the world, (iv) all rights to
sue for past, present and future infringements thereof, and (v) all Proceeds of the foregoing,
including, without limitation, licenses, royalties, income, payments, claims, damages and proceeds
of suit.

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

          “Deposit Accounts” (i) shall mean all “deposit accounts” as defined in Article 9 of the UCC
and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4 under the
heading “Deposit Accounts” (as such schedule may be amended or supplemented from time to time).

          “Documents” shall mean all “documents” as defined in Article 9 of the UCC.

          “Equipment” shall mean: (i) all “equipment” as defined in Article 9 of the UCC, (ii) all
machinery, manufacturing equipment, data processing equipment, computers, office equipment,
furnishings, furniture, appliances, fixtures and tools (in each case, regardless of whether
characterized as equipment under the UCC) and (iii) all accessions or additions thereto, all parts
thereof, whether or not at any time of determination incorporated or installed therein or attached
thereto, and all replacements therefor, wherever located, now or hereafter existing, including any
fixtures.

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          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto.

          “Event of Default” shall mean an Event of Default under any of the Second Lien Credit
Document.

          “First Lien Collateral Agent” shall have the meaning set forth in the recitals.

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

          “First Lien Loan Documents” shall have the meaning set forth in the Intercreditor Agreement.

          “First Lien Security Agreement” shall have the meaning set forth in the recitals.

          “Foreign Deposit Accounts” shall mean the Company’s existing Deposit Accounts on the date
hereof in China, Japan and the U.K., in an aggregate amount not to exceed $1,000,000 on the date
hereof and at any time thereafter.

          “General Intangibles” (i) shall mean all “general intangibles” as defined in Article 9 of the
UCC, including “payment intangibles” also as defined in Article 9 of the UCC and (ii) shall
include, without limitation, all interest rate or currency protection or hedging arrangements, all
tax refunds, all licenses, permits, concessions and authorizations, all Assigned Agreements and all
Intellectual Property (in each case, regardless of whether characterized as general intangibles
under the UCC).

          “Goods” (i) shall mean all “goods” as defined in Article 9 of the UCC and (ii) shall include,
without limitation, all Inventory and Equipment (in each case, regardless of whether characterized
as goods under the UCC).

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

          “Guarantors” shall have the meaning set forth in the recitals.

          “Hedge Agreement” shall mean any (i) interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedging agreement or other similar
agreement or arrangement, each of which is for the purpose of hedging the interest rate exposure
associated with Grantors’ operations or (ii) foreign exchange contract, currency swap agreement,
futures contract, option contract, synthetic cap or other similar agreement or arrangement, each of
which is for the purpose of hedging the foreign currency risk associated with Grantors’ operations.

          “Indemnitee” shall mean the Collateral Agent, and its and its Affiliates’ officers, partners,
directors, trustees, employees and agents.

          “Instruments” shall mean all “instruments” as defined in Article 9 of the UCC.

          “Insurance” shall mean (i) all insurance policies covering any or all of the Collateral
(regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any key man life
insurance policies.

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          “Intellectual Property” shall mean, collectively, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets, and the
Trade Secret Licenses.

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

          “Inventory” shall mean (i) all “inventory” as defined in Article 9 of the UCC and (ii) all
goods held for sale or lease or to be furnished under contracts of service or so leased or
furnished, all raw materials, work in process, finished goods, and materials used or consumed in
the manufacture, packing, shipping, advertising, selling, leasing, furnishing or production of such
inventory or otherwise used or consumed in any Grantor’s business; all goods in which any Grantor
has an interest in mass or a joint or other interest or right of any kind; and all goods which are
returned to or repossessed by any Grantor, all computer programs embedded in any goods and all
accessions thereto and products thereof (in each case, regardless of whether characterized as
inventory under the UCC).

          “Investment Accounts” shall mean the Collateral Account, Securities Accounts, Commodities
Accounts and Deposit Accounts.

          “Investment Related Property” shall mean: (i) all “investment property” (as such term is
defined in Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as
investment property under the UCC): all Pledged Equity Interests, Pledged Debt, the Investment
Accounts and certificates of deposit.

          “Lender” shall have the meaning set forth in the recitals.

          “Letter of Credit Right” shall mean “letter-of-credit right” as defined in Article 9 of the
UCC.

          “Lien” shall mean (i) any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale
or other title retention agreement, and any lease in the nature thereof) and any option, trust or
other preferential arrangement having the practical effect of any of the foregoing and (ii) in the
case of Pledged Equity Interests, any purchase option, call or similar right of a third party with
respect to such Pledged Equity Interests.

          “Material Adverse Effect” shall mean a material adverse effect on (i) the business,
operations, properties, assets, condition (financial or otherwise) or prospects of Company and its
subsidiaries taken as a whole; (ii) the ability of any Grantor to fully and timely perform its
Obligations; (iii) the legality, validity, binding effect or enforceability against a Grantor of a
Second Lien Credit Document to which it is a party; or (iv) the rights, remedies and benefits
available to, or conferred upon, any agent and any Lender or any Secured Party under any Second
Lien Credit Document.

          “Material Contract” shall mean any contract or other arrangement to which any Grantor is a
party (other than the Credit Documents) for which breach, nonperformance, cancellation or failure
to renew could reasonably be expected to have a Material Adverse Effect.

          “Money” shall mean “money” as defined in the UCC.

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          “Non-Assignable Contract” shall mean any agreement, contract or license to which any Grantor
is a party that by its terms purports to restrict or prevent the assignment or granting of a
security interest therein (either by its terms or by any federal or state statutory prohibition or
otherwise irrespective of whether such prohibition or restriction is enforceable under Section
9-406 through 409 of the UCC).

          “Obligations” shall mean all obligations of every nature of each Grantor from time to time
owed to the Secured Parties or any of them under the Credit Agreement, Hedge Agreements and other
Second Lien Credit Documents, whether for principal or interest, and shall include all interest
accrued or accruing (or which would, absent commencement of an Insolvency or Liquidation Proceeding
(as defined in the Intercreditor Agreement) accrue) after commencement of an Insolvency or
Liquidation Proceeding in accordance with the rate specified in the relevant Second Lien Credit
Document whether or not the claim for such interest is allowed as a claim in such Insolvency or
Liquidation Proceeding, reimbursement of amounts drawn under letters of credit, payments for early
termination of Hedge Agreements, fees, expenses, indemnification or otherwise.

          “Patent Licenses” shall mean all agreements providing for the granting of any right in or to
Patents (whether such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule 4.7(D) (as such schedule may be amended or supplemented from
time to time).

          “Patents” shall mean all United States and foreign patents and certificates of invention, or
similar industrial property rights, and applications for any of the foregoing, including, but not
limited to: (i) each patent and patent application referred to in Schedule 4.7(C) hereto (as such
schedule may be amended or supplemented from time to time), (ii) all reissues, divisions,
continuations, continuations-in-part, extensions, renewals, and reexaminations thereof, (iii) all
rights corresponding thereto throughout the world, (iv) all inventions and improvements described
therein, (v) all rights to sue for past, present and future infringements thereof, (vi) all
licenses, claims, damages, and proceeds of suit arising therefrom, and (vii) all Proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit.

          “Pledge Supplement” shall mean any supplement to this agreement in substantially the form of
Exhibit A.

          “Pledged Debt” shall mean all Indebtedness owed to such Grantor, including, without
limitation, all Indebtedness described on Schedule 4.4(A) under the heading “Pledged Debt” (as such
schedule may be amended or supplemented from time to time), issued by the obligors named therein,
the instruments evidencing such Indebtedness, and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such Indebtedness.

          “Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged
Partnership Interests and Pledged Trust Interests.

          “Pledged LLC Interests” shall mean all interests in any limited liability company including,
without limitation, all limited liability company interests listed on Schedule 4.4(A) under the
heading “Pledged LLC Interests” (as such schedule may be amended or supplemented from time to time)
and the certificates, if any, representing such limited liability company interests and any
interest of such Grantor on the books and records of such limited

6

 

liability company or on the books and records of any securities intermediary pertaining to
such interest and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such limited liability company
interests.

          “Pledged Partnership Interests” shall mean all interests in any general partnership, limited
partnership, limited liability partnership or other partnership including, without limitation, all
partnership interests listed on Schedule 4.4(A) under the heading “Pledged Partnership Interests”
(as such schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such partnership interests and any interest of such Grantor on the books and records
of such partnership or on the books and records of any securities intermediary pertaining to such
interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities
and other property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such partnership interests.

          “Pledged Stock” shall mean all shares of capital stock owned by such Grantor, including,
without limitation, all shares of capital stock described on Schedule 4.4(A) under the heading
“Pledged Stock” (as such schedule may be amended or supplemented from time to time), and the
certificates, if any, representing such shares and any interest of such Grantor in the entries on
the books of the issuer of such shares or on the books of any securities intermediary pertaining to
such shares, and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such shares.

          “Pledged Trust Interests” shall mean all interests in a Delaware business trust or other trust
including, without limitation, all trust interests listed on Schedule 4.4(A) under the heading
“Pledged Trust Interests” (as such schedule may be amended or supplemented from time to time) and
the certificates, if any, representing such trust interests and any interest of such Grantor on the
books and records of such trust or on the books and records of any securities intermediary
pertaining to such interest and all dividends, distributions, cash, warrants, rights, options,
instruments, securities and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such trust interests.

          “Proceeds” shall mean: (i) all “proceeds” as defined in Article 9 of the UCC, (ii) payments
or distributions made with respect to any Investment Related Property and (iii) whatever is
receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise
disposed of, whether such disposition is voluntary or involuntary.

          “Receivables” shall mean all rights to payment, whether or not earned by performance, for
goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services
rendered or to be rendered, including, without limitation all such rights constituting or evidenced
by any Account, Chattel Paper, Instrument, General Intangible or Investment Related Property,
together with all of Grantor’s rights, if any, in any goods or other property giving rise to such
right to payment and all Collateral Support and Supporting Obligations related thereto and all
Receivables Records.

          “Receivables Records” shall mean (i) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and

7

 

other papers relating to Receivables, including, without limitation, all tapes, cards,
computer tapes, computer discs, computer runs, record keeping systems and other papers and
documents relating to the Receivables, whether in the possession or under the control of Grantor or
any computer bureau or agent from time to time acting for Grantor or otherwise, (iii) all evidences
of the filing of financing statements and the registration of other instruments in connection
therewith, and amendments, supplements or other modifications thereto, notices to other creditors
or secured parties, and certificates, acknowledgments, or other writings, including, without
limitation, lien search reports, from filing or other registration officers, (iv) all credit
information, reports and memoranda relating thereto and (v) all other written or nonwritten forms
of information related in any way to the foregoing or any Receivable.

          “Record” shall have the meaning specified in Article 9 of the UCC.

          “Second Lien Credit Documents” shall mean the Credit Agreement, the Credit Documents and any
Hedge Agreements entered into with a Lender Counterparty, and each of the other agreements,
documents and instruments providing for or evidencing any other Obligation, and any other document
or instrument executed or delivered at any time in connection with any Obligations, including any
intercreditor or joinder agreement among holders of Obligations, to the extent such are effective
at the relevant time, as each may be amended, restated, supplemented, modified, renewed or extended
from time to time in accordance with the provisions of the Intercreditor Agreement

          “Secured Obligations” shall have the meaning assigned in Section 3.1.

          “Secured Parties” shall mean the Agents, the Lenders and the Lender Counterparties and shall
include, without limitation, all former Agents, Lenders and Lender Counterparties to the extent
that any Obligations owing to such Persons were incurred while such Persons were Agents, Lenders or
Lender Counterparties and such Obligations have not been paid or satisfied in full.

          “Securities” shall mean any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

          “Securities Accounts” (i) shall mean all “securities accounts” as defined in Article 8 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4(A) under
the heading “Securities Accounts” (as such schedule may be amended or supplemented from time to
time).

          “Supporting Obligation” shall mean all “supporting obligations” as defined in Article 9 of the
UCC.

          “Tax Code” shall mean the United States Internal Revenue Code of 1986, as amended from time to
time.

          “Trademark Licenses” shall mean any and all agreements providing for the granting of any right
in or to Trademarks (whether such Grantor is licensee or licensor

8

 

thereunder) including, without limitation, each agreement referred to in Schedule 4.7(F) (as
such schedule may be amended or supplemented from time to time).

          “Trademarks” shall mean all United States, and foreign trademarks, trade names, corporate
names, company names, business names, fictitious business names, Internet domain names, service
marks, certification marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications for any of the
foregoing including, but not limited to: (i) the registrations and applications referred to in
Schedule 4.7(E) (as such schedule may be amended or supplemented from time to time), (ii) all
extensions or renewals of any of the foregoing, (iii) all of the goodwill of the business connected
with the use of and symbolized by the foregoing, (iv) the right to sue for past, present and future
infringement or dilution of any of the foregoing or for any injury to goodwill, and (v) all
Proceeds of the foregoing, including, without limitation, licenses, royalties, income, payments,
claims, damages, and proceeds of suit.

          “Trade Secret Licenses” shall mean any and all agreements providing for the granting of any
right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to in Schedule 4.7(G) (as such schedule may be amended
or supplemented from time to time).

          “Trade Secrets” shall mean all trade secrets and all other confidential or proprietary
information and know-how whether or not such Trade Secret has been reduced to a writing or other
tangible form, including all documents and things embodying, incorporating, or referring in any way
to such Trade Secret, including but not limited to: (i) the right to sue for past, present and
future misappropriation or other violation of any Trade Secret, and (ii) all Proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York or, when the context implies, the Uniform Commercial Code as in effect from time to time
in any other applicable jurisdiction.

          “United States” shall mean the United States of America.

     1.2 Definitions; Interpretation. All capitalized terms used herein (including the preamble
and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in
the Credit Agreement or, if not defined therein, in the UCC. References to “Sections,” “Exhibits”
and “Schedules” shall be to Sections, Exhibits and Schedules, as the case may be, of this Agreement
unless otherwise specifically provided. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose or be given any substantive effect. Any of the terms defined herein may, unless the
context otherwise requires, be used in the singular or the plural, depending on the reference. The
use herein of the word “include” or “including”, when following any general statement, term or
matter, shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
nonlimiting language (such as “without limitation” or “but not limited to” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement, term or matter. If
any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit
Agreement
shall govern. Notwithstanding anything herein to the contrary, the lien and security interest
granted to the Collateral Agent pursuant to this Agreement and the

9

 

exercise of any right or remedy
by the Collateral Agent hereunder are subject to the provisions of the Intercreditor Agreement. In
the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the
terms of the Intercreditor Agreement shall govern and control. All references herein to provisions
of the UCC shall include all successor provisions under any subsequent version or amendment to any
Article of the UCC.

SECTION 2. GRANT OF SECURITY.

     2.1 Grant of Security. Each Grantor hereby grants to the Collateral Agent a security interest
in and continuing lien on all of such Grantor’s right, title and interest in, to and under all
personal property of such Grantor including, but not limited to the following, in each case whether
now owned or existing or hereafter acquired or arising and wherever located (all of which being
hereinafter collectively referred to as the “Collateral”):

          (a) Accounts;

          (b) Chattel Paper;

          (c) Documents;

          (d) General Intangibles;

          (e) Goods;

          (f) Instruments;

          (g) Insurance;

          (h) Intellectual Property;

          (i) Investment Related Property;

          (j) Letter of Credit Rights;

          (k) Money;

          (l) Receivables and Receivable Records;

          (m) Commercial Tort Claims;

          (n) to the extent not otherwise included above, all Collateral Records, Collateral Support and
Supporting Obligations relating to any of the foregoing; and

          (o) to the extent not otherwise included above, all Proceeds, products, accessions, rents and
profits of or in respect of any of the foregoing.

     2.2 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event shall the Collateral include
or the security interest granted under Section 2.1 hereof attach to (a) any Intellectual Property,
lease, license, contract, property rights or agreement to which any Grantor is a party or any of
its rights or interests thereunder if and for so long as the grant of such security interest shall
constitute or result in (i) the abandonment, invalidation or unenforceability of any right, title
or interest of any Grantor therein or (ii) in a breach or

10

 

termination pursuant to the terms of, or
a default under, any such lease, license, contract property rights or agreement (other than to the
extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or
9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity), provided however
that the Collateral shall include and such security interest shall attach immediately at such time
as the condition causing such abandonment, invalidation or unenforceability shall be remedied and
to the extent severable, shall attach immediately to any portion of such Lease, license, contract,
property rights or agreement that does not result in any of the consequences specified in (i) or
(ii) above; or (b) any of the outstanding capital stock of a Controlled Foreign Corporation in
excess of 65% of the voting power of all classes of capital stock of such Controlled Foreign
Corporation entitled to vote; provided that immediately upon the amendment of the Tax Code to allow
the pledge of a greater percentage of the voting power of capital stock in a Controlled Foreign
Corporation without adverse tax consequences, the Collateral shall include, and the security
interest granted by each Grantor shall attach to, such greater percentage of capital stock of each
Controlled Foreign Corporation.

     2.3 Lien Subordination. Notwithstanding anything herein to the contrary, it is the
understanding of the parties that the Liens granted pursuant to Section 2.1 herein shall, prior to
the Discharge of First Lien Obligations (as defined in the Intercreditor Agreement), be subject and
subordinate to the Liens granted to the First Lien Collateral Agent for the benefit of the holders
of the First Lien Obligations to secure the First Lien Obligations pursuant to the First Lien
Security Agreement. All other rights and remedies of the Collateral Agent and the other Secured
Parties are further subject to the provisions of the Intercreditor Agreement.

SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

     3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral
security for, the prompt and complete payment or performance in full when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the
payment of amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all
Obligations with respect to every Grantor (the “Secured Obligations”).

     3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary,
(i) each Grantor shall remain liable for all obligations under the Collateral and nothing contained
herein is intended or shall be a delegation of duties to the Collateral Agent or any Secured Party,
(ii) each Grantor shall remain liable under each of the agreements included in the Collateral,
including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged
LLC Interests, to perform all of the obligations undertaken by it thereunder all in accordance with
and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any Secured
Party shall have any obligation or liability under any of such agreements by reason of or arising
out of this Agreement
or any other document related thereto nor shall the Collateral Agent nor any Secured Party
have any obligation to make any inquiry as to the nature or sufficiency of any payment received by
it or have any obligation to take any action to collect or enforce any rights under any agreement
included in the Collateral, including, without limitation, any agreements relating to Pledged
Partnership Interests or Pledged LLC Interests, and (iii) the exercise by the Collateral Agent of
any of its rights hereunder shall not release any Grantor from any of its duties or obligations
under the contracts and agreements included in the Collateral.

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SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS.

     4.1 Generally.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and on each Credit Date, that:

          (i) it owns the Collateral purported to be owned by it or otherwise has the rights it
purports to have in each item of Collateral and, as to all Collateral whether now existing
or hereafter acquired, will continue to own or have such rights in each item of the
Collateral, in each case free and clear of any and all Liens, rights or claims of all other
Persons other than Permitted Liens;

          (ii) it has indicated on Schedule 4.1(A)(as such schedule may be amended or
supplemented from time to time): (w) the type of organization of such Grantor, (x) the
jurisdiction of organization of such Grantor, (y) its organizational identification number
and (z) the jurisdiction where the chief executive office or its sole place of business is
(or the principal residence if such Grantor is a natural person), and for the one-year
period preceding the date hereof has been, located.

          (iii) the full legal name of such Grantor is as set forth on Schedule 4.1(A) and it
has not done in the last five (5) years, and does not do, business under any other name
(including any trade name or fictitious business name) except for those names set forth on
Schedule 4.1(B) (as such schedule may be amended or supplemented from time to time);

          (iv) except as provided on Schedule 4.1(C), it has not changed its name, jurisdiction
of organization, chief executive office or sole place of business (or principal residence
if such Grantor is a natural person) or its corporate structure in any way (e.g., by
merger, consolidation, change in corporate form or otherwise) within the past five (5)
years;

          (v) except in connection with Permitted Liens, it has not within the last five (5)
years become bound (whether as a result of merger or otherwise) as debtor under a security
agreement entered into by another Person, which has not heretofore been terminated;

          (vi) (u) upon the filing of all UCC financing statements naming each Grantor as
“debtor” and the Collateral Agent as “secured party” and describing the Collateral in the
filing offices set forth opposite such Grantor’s name on Schedule 4.1(E) hereof (as such
schedule may be amended or supplemented from time to time) and other filings delivered by
each Grantor, (v) upon delivery of all Instruments, Chattel Paper and certificated Pledged
Equity Interests and Pledged Debt to the First Lien Collateral Agent
or the Collateral Agent in accordance with the Intercreditor Agreement, (w) upon
sufficient identification of Commercial Tort Claims, (x) upon execution of a control
agreement establishing the Collateral Agent’s “control” (within the meaning of Section
8-106, 9-106 or 9-104 of the UCC, as applicable) with respect to any Investment Account,
(y) upon consent of the issuer with respect to Letter of Credit Rights, and (z) to the
extent not subject to Article 9 of the UCC, upon recordation of the security interests
granted hereunder in Patents, Trademarks and Copyrights in the applicable intellectual
property registries, including but not limited to the United States Patent and Trademark
Office and

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the United States Copyright Office, the security interests granted to the
Collateral Agent hereunder constitute valid and perfected first priority Liens (subject in
the case of priority only to (i) Permitted Liens and to the rights of the United States
government (including any agency or department thereof) with respect to United States
government Receivables and (ii) Liens granted to the First Lien Collateral Agent) on all of
the Collateral;

          (vii) all actions and consents, including all filings, notices, registrations and
recordings necessary or desirable for the exercise by the Collateral Agent of the voting or
other rights provided for in this Agreement or the exercise of remedies in respect of the
Collateral have been made or obtained;

          (viii) other than the financing statements filed in favor of the Collateral Agent, no
effective UCC financing statement, fixture filing or other instrument similar in effect
under any applicable law covering all or any part of the Collateral is on file in any
filing or recording office except for (x) financing statements for which proper termination
statements have been delivered to the Collateral Agent for filing and (y) financing
statements filed in connection with Permitted Liens;

          (ix) no authorization, approval or other action by, and no notice to or filing with,
any Governmental Authority or regulatory body is required for either (i) the pledge or
grant by any Grantor of the Liens purported to be created in favor of the Collateral Agent
hereunder or (ii) the exercise by Collateral Agent of any rights or remedies in respect of
any Collateral (whether specifically granted or created hereunder or created or provided
for by applicable law), except (A) for the filings contemplated by clause (vii) above and
(B) as may be required, in connection with the disposition of any Investment Related
Property, by laws generally affecting the offering and sale of Securities;

          (x) all information supplied by any Grantor with respect to any of the Collateral (in
each case taken as a whole with respect to any particular Collateral) is accurate and
complete in all material respects;

          (xi) none of the Collateral constitutes, or is the Proceeds of, “farm products” (as
defined in the UCC);

          (xii) it does not own any “as extracted collateral” (as defined in the UCC) or any
timber to be cut; and

          (xiii) such Grantor has been duly organized as an entity of the type as set forth
opposite such Grantor’s name on Schedule 4.1(A) solely under the laws of the jurisdiction
as set forth opposite such Grantor’s name on Schedule 4.1(A) and remains duly existing as
such. Such Grantor has not filed any certificates of domestication, transfer or
continuance in any other jurisdiction.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

          (i) except for the security interest created by this Agreement, it shall not create or
suffer to exist any Lien upon or with respect to any of the Collateral,

13

 

except Permitted
Liens, and such Grantor shall defend the Collateral against all Persons at any time
claiming any interest therein;

          (ii) it shall not produce, use or permit any Collateral to be used unlawfully or in
violation of any provision of this Agreement or any applicable statute, regulation or
ordinance or any policy of insurance covering the Collateral;

          (iii) it shall not change such Grantor’s name, identity, corporate structure (e.g., by
merger, consolidation, change in corporate form or otherwise) sole place of business (or
principal residence if such Grantor is a natural person), chief executive office, type of
organization or jurisdiction of organization or establish any trade names unless it shall
have (a) notified the Collateral Agent in writing, by executing and delivering to the
Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A
attached hereto, together with all Supplements to Schedules thereto, at least thirty (30)
days prior to any such change or establishment, identifying such new proposed name,
identity, corporate structure, sole place of business (or principal residence if such
Grantor is a natural person), chief executive office, jurisdiction of organization or trade
name and providing such other information in connection therewith as the Collateral Agent
may reasonably request and (b) taken all actions necessary or advisable to maintain the
continuous validity, perfection and the same or better priority of the Collateral Agent’s
security interest in the Collateral intended to be granted and agreed to hereby;

          (iv) if the Collateral Agent or any Secured Party gives value to enable Grantor to
acquire rights in or the use of any Collateral, it shall use such value for such purposes
and such Grantor further agrees that repayment of any Obligation shall apply on a
“first-in, first-out” basis so that the portion of the value used to acquire rights in any
Collateral shall be paid in the chronological order such Grantor acquired rights therein;

          (v) it shall pay promptly when due all property and other taxes, assessments and
governmental charges or levies imposed upon, and all claims (including claims for labor,
materials and supplies) against, the Collateral, except to the extent the validity thereof
is being contested in good faith; provided, such Grantor shall in any event pay such taxes,
assessments, charges, levies or claims not later than five (5) days prior to the date of
any proposed sale under any judgment, writ or warrant of attachment entered or filed
against such Grantor or any of the Collateral as a result of the failure to make such
payment;

          (vi) upon such Grantor or any officer of such Grantor obtaining knowledge thereof, it
shall promptly notify the Collateral Agent in writing of any event that may have a Material
Adverse Effect on the value of the Collateral or any portion thereof, the ability of any
Grantor or the Collateral Agent to dispose of the Collateral or any portion thereof, or the
rights and remedies of the Collateral Agent in relation thereto,
including, without limitation, the levy of any legal process against the Collateral or
any portion thereof;

          (vii) it shall not take or permit any action which could impair the Collateral Agent’s
rights in the Collateral; and

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          (viii) it shall not sell, transfer or assign (by operation of law or otherwise) any
Collateral except as otherwise permitted in accordance with the Credit Agreement.

     4.2 Equipment and Inventory.

          (a) Representations and Warranties. Each Grantor represents and warrants, on the
Closing Date and on each Credit Date, that:

          (i) all of the Equipment and Inventory included in the Collateral with a fair market
value of $100,000 or more is kept for the past four (4) years only at the locations
specified in Schedule 4.2 (as such schedule may be amended or supplemented from time to
time);

          (ii) any Goods now or hereafter produced by any Grantor included in the Collateral
have been and will be produced in compliance with the requirements of the Fair Labor
Standards Act, as amended; and

          (iii) except as set forth in Schedule 4.2 (as such schedule may be amended or
supplemented from time to time), none of the Inventory or Equipment included in the
Collateral with a fair market value of $100,000 or more is in the possession of an issuer
of a negotiable document (as defined in Section 7-104 of the UCC) therefor or otherwise in
the possession of a bailee or a warehouseman.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

          (i) it shall keep the Equipment, Inventory and any Documents evidencing any Equipment
and Inventory in the locations specified on Schedule 4.2 (as such schedule may be amended
or supplemented from time to time) unless it shall have (a) notified the Collateral Agent
in writing, by executing and delivering to the Collateral Agent a completed Pledge
Supplement, substantially in the form of Exhibit A attached hereto, together with all
Supplements to Schedules thereto, at least thirty (30) days prior to any change in
locations, identifying such new locations and providing such other information in
connection therewith as the Collateral Agent may reasonably request and (b) taken all
actions necessary or advisable to maintain the continuous validity, perfection and the same
or better priority of the Collateral Agent’s security interest in the Collateral intended
to be granted and agreed to hereby, or to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder, with respect to such Equipment and Inventory;

          (ii) it shall keep correct and accurate records of the Inventory, as is customarily
maintained under similar circumstances by Persons of established reputation engaged in
similar business, and in any event in conformity with GAAP;

          (iii) it shall not deliver any Document evidencing any Equipment and Inventory to any
Person other than the issuer of such Document to claim the Goods evidenced therefor or the
Collateral Agent;

15

 

          (iv) if any Equipment or Inventory is in possession or control of any third party,
each Grantor shall join with the Collateral Agent in notifying the third party of the
Collateral Agent’s security interest and obtaining an acknowledgment from the third party
that it is holding the Equipment and Inventory for the benefit of the Collateral Agent; and

          (v) with respect to any item of Equipment which is covered by a certificate of title
under a statute of any jurisdiction under the law of which indication of a security
interest on such certificate is required as a condition of perfection thereof, upon the
reasonable request of the Collateral Agent, (A) provide information with respect to any
such Equipment in excess of $50,000 individually or $500,000 in the aggregate, (B) execute
and file with the registrar of motor vehicles or other appropriate authority in such
jurisdiction an application or other document requesting the notation or other indication
of the security interest created hereunder on such certificate of title, and (C) deliver to
the Collateral Agent copies of all such applications or other documents filed during such
calendar quarter and copies of all such certificates of title issued during such calendar
quarter indicating the security interest created hereunder in the items of Equipment
covered thereby.

     4.3 Receivables.

          (a) Representations and Warranties. Each Grantor represents and warrants, on the
Closing Date and on each Credit Date, that:

          (i) each Receivable (a) is and will be the legal, valid and binding obligation of the
Account Debtor in respect thereof, representing an unsatisfied obligation of such Account
Debtor, (b) is and will be enforceable in accordance with its terms, (c) is not and will
not be subject to any setoffs, defenses, taxes, counterclaims (except with respect to
refunds, returns and allowances in the ordinary course of business with respect to damaged
merchandise) and (d) is and will be in compliance with all applicable laws, whether
federal, state, local or foreign;

          (ii) none of the Account Debtors in respect of any Receivable in excess of $30,000
individually or $100,000 in the aggregate is the government of the United States, any
agency or instrumentality thereof, any state or municipality or any foreign sovereign. No
Receivable in excess of $30,000 individually or $100,000 in the aggregate requires the
consent of the Account Debtor in respect thereof in connection with the pledge hereunder,
except any consent which has been obtained;

          (iii) no Receivable is evidenced by, or constitutes, an Instrument or Chattel Paper
which has not been delivered to, or otherwise subjected to the control of, the Collateral
Agent to the extent required by, and in accordance with Section 4.3(c); and

          (iv) each Grantor has delivered to the Collateral Agent a complete and correct copy of
each standard form of document under which a Receivable may arise.

          (b) Covenants and Agreements: Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

16

 

          (i) it shall keep and maintain at its own cost and expense satisfactory and complete
records of the Receivables in accordance with its ordinary commercial practice;

          (ii) it shall mark conspicuously, in form and manner reasonably satisfactory to the
Collateral Agent, all Chattel Paper and Instruments (other than any delivered to the
Collateral Agent as provided herein), with an appropriate reference to the fact that the
Collateral Agent has a security interest therein;

          (iii) it shall perform in all material respects all of its obligations with respect to
the Receivables;

          (iv) it shall not amend, modify, terminate or waive any provision of any Receivable in
any manner which could reasonably be expected to have a Material Adverse Effect on the
value of such Receivable as Collateral. Other than in the ordinary course of business as
generally conducted by it on and prior to the date hereof, and except as otherwise provided
in subsection (v) below, following an Event of Default, such Grantor shall not (w) grant
any extension or renewal of the time of payment of any Receivable, (x) compromise or settle
any dispute, claim or legal proceeding with respect to any Receivable for less than the
total unpaid balance thereof, (y) release, wholly or partially, any Person liable for the
payment thereof, or (z) allow any credit or discount thereon;

          (v) except as otherwise provided in this subsection, each Grantor shall continue to
collect all amounts due or to become due to such Grantor under the Receivables and any
Supporting Obligation and diligently exercise each material right it may have under any
Receivable any Supporting Obligation or Collateral Support, in each case, at its own
expense, and in connection with such collections and exercise, such Grantor shall take such
action as such Grantor or the Collateral Agent may deem necessary or advisable.
Notwithstanding the foregoing, the Collateral Agent shall have the right at any time
following the occurrence and during the continuation of an Event of Default, the Collateral
Agent may, subject to the terms of the Intercreditor Agreement: (1) direct the Account
Debtors under any Receivables to make payment of all amounts due or to become due to such
Grantor thereunder directly to the Collateral Agent; (2) notify, or require any Grantor to
notify, each Person maintaining a lockbox or similar arrangement to which Account Debtors
under any Receivables have been directed to make payment to remit all amounts representing
collections on checks and other payment items from time to time sent to or deposited in
such lockbox or other arrangement directly to the Collateral Agent; and (3) enforce, at the
expense of such Grantor,
collection of any such Receivables and to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor might have done.
If the Collateral Agent notifies any Grantor that it has elected to collect the
Receivables in accordance with the preceding sentence, any payments of Receivables received
by such Grantor shall be forthwith (and in any event within two (2) Business Days)
deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the
Collateral Agent if required, in the Collateral Account maintained under the sole dominion
and control of the Collateral Agent, and until so turned over, all amounts and proceeds
(including checks and other instruments) received by such Grantor in respect of the
Receivables, any Supporting Obligation or Collateral Support shall be received in trust for
the benefit of the Collateral Agent hereunder and shall be segregated from other funds of
such Grantor and such Grantor shall not adjust, settle or compromise

17

 

the amount or payment
of any Receivable, or release wholly or partly any Account Debtor or obligor thereof, or
allow any credit or discount thereon; and

          (vi) it shall use its reasonable efforts to keep in full force and effect any
Supporting Obligation or Collateral Support relating to any Receivable.

          (c) Delivery and Control of Receivables. With respect to any Receivables in excess of
$30,000 individually or $100,000 in the aggregate that is evidenced by, or constitutes, Chattel
Paper or Instruments, each Grantor shall cause each originally executed copy thereof to be
delivered to the First Lien Collateral Agent or the Collateral Agent (or its respective agent or
designee), as applicable, in accordance with the Intercreditor Agreement, appropriately indorsed to
the First Lien Collateral Agent or the Collateral Agent, as applicable, or indorsed in blank: (i)
with respect to any such Receivables in existence on the date hereof, on or prior to the date
hereof and (ii) with respect to any such Receivables hereafter arising, within ten (10) days of
such Grantor acquiring rights therein. With respect to any Receivables in excess of $30,000
individually or $100,000 in the aggregate which would constitute “electronic chattel paper” under
Article 9 of the UCC, each Grantor shall take all steps necessary to give the Collateral Agent
control over such Receivables (within the meaning of Section 9-105 of the UCC): (i) with respect
to any such Receivables in existence on the date hereof, on or prior to the date hereof and (ii)
with respect to any such Receivables hereafter arising, within ten (10) days of such Grantor
acquiring rights therein. Subject to the Intercreditor Agreement, any Receivable not otherwise
required to be delivered or subjected to the control of the First Lien Collateral Agent or the
Collateral Agent, as applicable, in accordance with this subsection (c) shall be delivered or
subjected to such control upon request of the First Lien Collateral Agent or the Collateral Agent,
as applicable, in accordance with the Intercreditor Agreement, during the continuance of an Event
of Default.

     4.4 Investment Related Property.

          4.4.1 Investment Related Property Generally

          (a) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

          (i) in the event it acquires rights in any Investment Related Property after the date
hereof, it shall deliver to the Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all
Supplements to Schedules thereto, reflecting such new Investment Related Property and
all other Investment Related Property. Notwithstanding the foregoing, it is understood and
agreed that the security interest of the Collateral Agent shall attach to all Investment
Related Property immediately upon any Grantor’s acquisition of rights therein and shall not
be affected by the failure of any Grantor to deliver a supplement to Schedule 4.4 as
required hereby;

          (ii) except as provided in the next sentence, in the event such Grantor receives any
dividends, interest or distributions on any Investment Related Property, or any securities
or other property upon the merger, consolidation, liquidation or dissolution of any issuer
of any Investment Related Property, then (a) such dividends, interest or distributions and
securities or other property shall be included in the definition of Collateral without
further action and (b) such Grantor shall immediately take all steps, if any, necessary or
advisable to ensure the validity, perfection, priority and, if applicable,

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control of the
Collateral Agent (subject to the terms of the Intercreditor Agreement) over such Investment
Related Property (including, without limitation, delivery thereof to the Collateral Agent)
and pending any such action such Grantor shall be deemed to hold such dividends, interest,
distributions, securities or other property in trust for the benefit of the Collateral
Agent (subject to the terms of the Intercreditor Agreement) and shall segregate such
dividends, distributions, Securities or other property from all other property of such
Grantor. Notwithstanding the foregoing, so long as no Event of Default shall have occurred
and be continuing, the Collateral Agent authorizes each Grantor to retain all ordinary cash
dividends and distributions paid in the normal course of the business of the issuer and
consistent with the past practice of the issuer and all scheduled payments of interest;

          (iii) each Grantor consents to the grant by each other Grantor of a Security Interest
in all Investment Related Property to the Collateral Agent.

          (b) Delivery and Control.

          (i) Each Grantor agrees that with respect to any Investment Related Property in which
it currently has rights it shall comply with the provisions of this Section 4.4.1(b) on or
before the Credit Date and with respect to any Investment Related Property hereafter
acquired by such Grantor it shall comply with the provisions of this Section 4.4.1(b)
within (5) Business Days upon acquiring rights therein, in each case in form and substance
satisfactory to the Collateral Agent. With respect to any Investment Related Property that
is represented by a certificate or that is an “instrument” (other than any Investment
Related Property credited to a Securities Account) it shall cause such certificate or
instrument to be delivered to the First Lien Collateral Agent or the Collateral Agent, as
applicable, in accordance with the Intercreditor Agreement, indorsed in blank by an
“effective indorsement” (as defined in Section 8-107 of the UCC), regardless of whether
such certificate constitutes a “certificated security” for purposes of the UCC. With
respect to any Investment Related Property that is an “uncertificated security” for
purposes of the UCC (other than any “uncertificated securities” credited to a Securities
Account), it shall cause the issuer of such uncertificated security to either (i) register
the First Lien Collateral Agent (or the Collateral Agent if there has been a Discharge of
the First Lien Obligations or as expressly provided in the proviso in clause (ii) of
Section 3.1(a)(1) of the Intercreditor Agreement) as the registered owner thereof on the
books and records of the issuer or (ii) execute an agreement substantially in the form of
Exhibit B hereto, pursuant to which
such issuer agrees to comply with the Collateral Agent’s instructions with respect to
such uncertificated security without further consent by such Grantor.

          (c) Voting and Distributions.

          (i) So long as no Event of Default shall have occurred and be continuing:

	 	(1)	 	except as otherwise provided under the covenants and agreements relating to
Investment Related Property in this Agreement or elsewhere herein or in the Second
Lien Credit Documents, each Grantor shall be entitled to exercise or refrain from
exercising any and all voting and other consensual rights pertaining to the Investment
Related Property or any part thereof for any purpose not inconsistent with the terms
of this Agreement or the Second Lien Credit

19

 

	 	 	 	Documents; provided, no Grantor shall
exercise or refrain from exercising any such right if the Collateral Agent shall have
notified such Grantor (in accordance with the terms of the Intercreditor Agreement)
that, in the Collateral Agent’s reasonable judgment, such action would have a Material
Adverse Effect on the value of the Investment Related Property or any part thereof; it
being understood, however, that neither the voting by such Grantor of any Pledged
Stock for, or such Grantor’s consent to, the election of directors (or similar
governing body) at a regularly scheduled annual or other meeting of stockholders or
with respect to incidental matters at any such meeting, nor such Grantor’s consent to
or approval of any action otherwise permitted under this Agreement and the Credit
Agreement, shall be deemed inconsistent with the terms of this Agreement or the Credit
Agreement within the meaning of this Section 4.4(c)(i)(1), and no notice of any such
voting or consent need be given to the Collateral Agent; and
	 
	 	(2)	 	the Collateral Agent, at Grantor’s expense, shall promptly execute and
deliver (or cause to be executed and delivered) to each Grantor all proxies, and other
instruments as such Grantor may from time to time reasonably request for the purpose
of enabling such Grantor to exercise the voting and other consensual rights when and
to the extent which it is entitled to exercise pursuant to clause (1) above;
	 
	 	(3)	 	subject to the Intercreditor Agreement, upon the occurrence and during the
continuation of an Event of Default:

	 	(A)	 	all rights of each Grantor to exercise or refrain from
exercising the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant hereto shall cease and all such rights shall
thereupon become vested in the Collateral Agent who shall thereupon have the
sole right to exercise such voting and other consensual rights; and
	 
	 	(B)	 	in order to permit the Collateral Agent to exercise the
voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder: (1) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to the Collateral Agent
all proxies, dividend payment orders and other instruments as the Collateral
Agent may from time to time reasonably request and (2) each
Grantor acknowledges that the Collateral Agent may utilize the power of
attorney set forth in Section 6.1.

          4.4.2 Pledged Equity Interests

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and on each Credit Date, that:

          (i) Schedule 4.4(A) (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Pledged Stock, “Pledged LLC Interests,” “Pledged
Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged
Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests
owned by any Grantor and such Pledged Equity

20

 

Interests constitute the percentage of issued
and outstanding shares of stock, percentage of membership interests, percentage of
partnership interests or percentage of beneficial interest of the respective issuers
thereof indicated on such Schedule;

          (ii) except as set forth on Schedule 4.4(B), it has not acquired any equity interests
of another entity or substantially all the assets of another entity within the past five
(5) years;

          (iii) it is the record and beneficial owner of the Pledged Equity Interests free of
all Liens, rights or claims of other Persons other than Permitted Liens and there are no
outstanding warrants, options or other rights to purchase, or shareholder, voting trust or
similar agreements outstanding with respect to, or property that is convertible into, or
that requires the issuance or sale of, any Pledged Equity Interests;

          (iv) without limiting the generality of Section 4.1(a)(v), no consent of any Person
including any other general or limited partner, any other member of a limited liability
company, any other shareholder or any other trust beneficiary is necessary or desirable in
connection with the creation, perfection or first priority status of the security interest
of the Collateral Agent (in the case of priority, subject to Liens granted to the First
Lien Collateral Agent) in any Pledged Equity Interests or the exercise by the Collateral
Agent of the voting or other rights provided for in this Agreement or the exercise of
remedies in respect thereof;

          (v) none of the Pledged LLC Interests nor Pledged Partnership Interests are or
represent interests in issuers that: (a) are registered as investment companies or (b) are
dealt in or traded on securities exchanges or markets; and

          (vi) except as otherwise set forth on Schedule 4.4(C), all of the Pledged LLC
Interests and Pledged Partnership Interests are or represent interests in issuers that have
opted to be treated as securities under the uniform commercial code of any jurisdiction.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

          (i) without the prior written consent of the First Lien Collateral Agent or the
Collateral Agent, as applicable, in accordance with the Intercreditor Agreement, it shall
not vote to enable or take any other action to: (a) amend or terminate any partnership
agreement, limited liability company agreement, certificate of incorporation, by-laws or
other organizational documents in any way that adversely affects the validity, perfection
or priority of the Collateral Agent’s security interest, (b) permit any issuer of any
Pledged Equity Interest to issue any additional stock, partnership interests, limited
liability company interests or other equity interests of any nature or to issue securities
convertible into or granting the right of purchase or exchange for any stock or other
equity interest of any nature of such issuer unless such stock or interest is pledged
hereunder, (c) other than as permitted under the Credit Agreement, permit any issuer of any
Pledged Equity Interest to dispose of all or a material portion of their assets, (d) waive
any default under or breach of any terms of organizational document relating to the issuer
of any Pledged Equity Interest or the terms of any Pledged Debt that would individually or
in the aggregate cause a Material Adverse Effect, or (e) cause any issuer

21

 

of any Pledged
Partnership Interests or Pledged LLC Interests which are not securities (for purposes of
the UCC) on the date hereof to elect or otherwise take any action to cause such Pledged
Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of
the UCC; unless such Grantor shall promptly notify the Collateral Agent in writing of any
such election or action and, in such event, shall take all steps necessary or advisable to
establish the Collateral Agent’s “control” thereof;

          (ii) it shall comply with all of its material obligations under any partnership
agreement or limited liability company agreement relating to Pledged Partnership Interests
or Pledged LLC Interests and shall enforce all of its material rights with respect to any
Investment Related Property;

          (iii) without the prior written consent of the First Lien Collateral Agent or the
Collateral Agent, as applicable, in accordance with the Intercreditor Agreement, it shall
not permit any issuer of any Pledged Equity Interest to merge or consolidate unless the
covenants of the Second Lien Documents are complied with; and

          (iv) each Grantor consents to the grant by each other Grantor of a security interest
in all Investment Related Property to the Collateral Agent and, without limiting the
foregoing, consents to the transfer of any Pledged Partnership Interest and any Pledged LLC
Interest to the First Lien Collateral Agent or the Collateral Agent (or its respective
nominee), as applicable, in accordance with the Intercreditor Agreement following an Event
of Default and to the substitution of the First Lien Collateral Agent or the Collateral
Agent (or its respective nominee), as applicable, in accordance with the Intercreditor
Agreement, as a partner in any partnership or as a member in any limited liability company
with all the rights and powers related thereto.

          4.4.3 Pledged Debt

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and each Credit Date, that Schedule 4.4 (as such schedule may be amended or
supplemented from time to time) sets forth under the heading “Pledged Debt” all of the Pledged Debt
owned by any Grantor and all of such Pledged Debt has been duly authorized, authenticated or
issued, and delivered and is the legal, valid and binding obligation of the issuers thereof and is
not in default and constitutes all of the issued and outstanding inter-company Indebtedness; and

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements, it shall notify the Collateral Agent of any default under
any Pledged Debt that has caused, either in any individual case or in the aggregate, a Material
Adverse Effect.

          4.4.4 Investment Accounts

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and immediately after the payment in full of all obligations outstanding pursuant
to Existing Indebtedness, and on each Credit Date, that:

          (i) Schedule 4.4 hereto (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Securities Accounts” and

22

 

“Commodities Accounts,”
respectively, all of the Securities Accounts and Commodities Accounts in which each Grantor
has an interest. Each Grantor is the sole entitlement holder of each such Securities
Account and Commodity Account, and such Grantor has not consented to, and is not otherwise
aware of, any Person (other than the Collateral Agent pursuant hereto or the First Lien
Collateral Agent pursuant to the First Lien Security Agreement) having “control” (within
the meanings of Sections 8-106 and 9-106 of the UCC) over, or any other interest in, any
such Securities Account or Commodity Account or securities or other property credited
thereto;

          (ii) Schedule 4.4 hereto (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Deposit Accounts” all of the Deposit Accounts in which
each Grantor has an interest. Each Grantor is the sole account holder of each such Deposit
Account and such Grantor has not consented to, and is not otherwise aware of, any Person
(other than the Collateral Agent pursuant hereto or the First Lien Collateral Agent
pursuant to the First Lien Security Agreement) having either sole dominion and control
(within the meaning of common law) or “control” (within the meanings of Section 9-104 of
the UCC) over, or any other interest in, any such Deposit Account or any money or other
property deposited therein; and

          (iii) Subject to Section 4.4.4(a)(iii) of the First Lien Pledge and Security Agreement
and the Intercreditor Agreement, each Grantor has taken all actions necessary or reasonably
desirable, including those specified in Section 4.4.4(c), to: (a) establish Collateral
Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any
portion of the Investment Related Property constituting Certificated Securities,
Uncertificated Securities, Securities Accounts, Securities Entitlements or Commodities
Accounts (each as defined in the UCC); (b) establish the Collateral Agent’s “control”
(within the meaning of Section 9-104 of the UCC) over all Deposit Accounts (other than
Foreign Deposit Accounts); and (c) deliver all Instruments to the Collateral Agent.

          (b) Covenant and Agreement. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements, it shall not permit any Investment Account to exist unless
a control agreement with respect to any such Investment Account has been entered into by the
appropriate Grantor, Collateral Agent and securities intermediary or depository institution at
which such successor or replacement account is to be maintained in accordance with the provisions
of Section 4.4.4(c).

          (c) Delivery and Control

          (i) With respect to any Investment Related Property consisting of Securities Accounts
or Securities Entitlements, it shall cause the securities intermediary maintaining such
Securities Account or Securities Entitlement to enter into an agreement substantially in
the form of Exhibit C hereto pursuant to which it shall agree to comply (subject to Section
4.4.4(c)(i) of the First Lien Pledge and Security Agreement and the Intercreditor
Agreement) with the Collateral Agent’s “entitlement orders” without further consent by such
Grantor. With respect to any Investment Related Property that is a “Deposit Account”
(other than Foreign Deposit Accounts), it shall cause the depositary institution
maintaining such account to enter into an agreement substantially in the form of Exhibit D
hereto, pursuant to which the Collateral Agent shall have (subject to Section 4.4.4(c)(i)
of the First Lien Pledge and Security Agreement and

23

 

the Intercreditor Agreement) both sole
dominion and control over such Deposit Account (within the meaning of the common law) and
“control” (within the meaning of Section 9-104 of the UCC) over such Deposit Account. Each
Grantor shall have entered into such control agreement or agreements with respect to: (i)
any Securities Accounts, Securities Entitlements or Deposit Accounts (other than Foreign
Deposit Accounts) that exist on the Credit Date, as of or prior to the Credit Date and (ii)
any Securities Accounts, Securities Entitlements or Deposit Accounts (other than Foreign
Deposit Accounts) that are created or acquired after the Credit Date, as of or prior to the
deposit or transfer of any such Securities Entitlements or funds, whether constituting
moneys or investments, into such Securities Accounts or Deposit Accounts.

In addition to the foregoing, if any issuer of any Investment Related Property is located
in a jurisdiction outside of the United States, each Grantor shall (subject to Section
4.4.4(c) of the First Lien Pledge and Security Agreement and the Intercreditor Agreement)
take such additional actions, including, without limitation, causing the issuer to register
the pledge on its books and records or making such filings or recordings, in each case as
may be necessary or advisable, under the laws of such issuer’s jurisdiction to insure the
validity, perfection and priority of the security interest of the Collateral Agent. Upon
the occurrence and during the continuance of an Event of Default, the Collateral Agent
shall have the right, subject to the Intercreditor Agreement, without notice to any
Grantor, to transfer all or any portion of the Investment Related Property to its name or
the name of its nominee or agent. In addition, the Collateral Agent shall have the right
at any time, subject to the Intercreditor Agreement, without notice to any Grantor, to
exchange any certificates or instruments representing any Investment Related Property for
certificates or instruments of smaller or larger denominations.

     4.5 Material Contracts.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and on each Credit Date, that:

          (i) the Material Contracts, true and complete copies (including any amendments or
supplements thereof) of which have been furnished to the Collateral Agent, have been duly
authorized, executed and delivered by all parties thereto, are in full force and effect and
are binding upon and enforceable against all parties thereto in accordance with their
respective terms. There exists no default under any Material
Contract by any party thereto and neither such Grantor, nor to its best knowledge, any
other Person party thereto is likely to become in default thereunder and no Person party
thereto has any defenses, counterclaims or right of set-off with respect to any Material
Contract. Each Person party to a Material Contract (other than any Grantor) has executed
and delivered to the applicable Grantor a consent to the assignment of such Material
Contract to the Collateral Agent pursuant to this Agreement; and

          (ii) no Material Contract prohibits assignment or requires consent of or notice to any
Person in connection with the assignment to the Collateral Agent hereunder, except such as
has been given or made or is currently sought pursuant to Section 4.5 (b)(vii) hereof.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

24

 

          (i) in addition to any rights under the Section of this Agreement relating to
Receivables, the Collateral Agent may at any time notify, or require any Grantor to so
notify, the counterparty on any Material Contract of the security interest of the
Collateral Agent therein. In addition, after the occurrence and during the continuance of
an Event of Default, the Collateral Agent may (subject to the First Lien Pledge and
Security Agreement and the Intercreditor Agreement) upon written notice to the applicable
Grantor, notify, or require any Grantor to notify, the counterparty to make all payments
under the Material Contracts directly to the Collateral Agent;

          (ii) each Grantor shall deliver promptly to the Collateral Agent a copy of each
material demand, notice or document received by it relating in any way to any Material
Contract;

          (iii) each Grantor shall deliver promptly to the Collateral Agent, and in any event
within ten (10) Business Days, after (1) any Material Contract of such Grantor is
terminated or amended in a manner that is materially adverse to such Grantor or (2) any new
Material Contract is entered into by such Grantor, a written statement describing such
event, with copies of such material amendments or new contracts, delivered to the
Collateral Agent (to the extent such delivery is permitted by the terms of any such
Material Contract, provided, no prohibition on delivery shall be effective if it were
bargained for by such Grantor with the intent of avoiding compliance with this Section
4.5(b)(iii)), and an explanation of any actions being taken with respect thereto;

          (iv) it shall perform in all material respects all of its obligations with respect to
the Material Contracts;

          (v) it shall promptly and diligently exercise each material right (except the right of
termination) it may have under any Material Contract, any Supporting Obligation or
Collateral Support, in each case, at its own expense, and in connection with such
collections and exercise, such Grantor shall take such action as such Grantor or the
Collateral Agent may deem necessary or advisable;

          (vi) it shall use its reasonable best efforts to keep in full force and effect any
Supporting Obligation or Collateral Support relating to any Material Contract; and

          (vii) each Grantor shall, within thirty (30) days after entering into any
Non-Assignable Contract that is a Material Contract after the Closing Date, request in
writing the consent of the counterparty or counterparties to such Non-Assignable Contract
pursuant to the terms of such Non-Assignable Contract or applicable law to the assignment
or granting of a security interest in such Non-Assignable Contract to Secured Party and use
its best efforts to obtain such consent as soon as practicable thereafter.

     4.6 Letter of Credit Rights.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and on each Credit Date, that:

          (i) all material letters of credit to which such Grantor has rights is listed on
Schedule 4.6 (as such schedule may be amended or supplemented from time to time) hereto;
and

25

 

          (ii) it has obtained the consent of each issuer of any material letter of credit
(other than Supporting Obligations) to the assignment of the proceeds of the letter of
credit to the First Lien Collateral Agent or the Collateral Agent, as applicable, in
accordance with the Intercreditor Agreement.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements, with respect to any material letter of credit (other than
Supporting Obligations) hereafter arising it shall obtain the consent of the issuer thereof to the
assignment of the proceeds of the letter of credit to the First Lien Collateral Agent or the
Collateral Agent, as applicable, in accordance with the Intercreditor Agreement, and shall deliver
to the Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A
attached hereto, together with all Supplements to Schedules thereto.

     4.7 Intellectual Property.

          (a) Representations and Warranties. Except as disclosed in Schedule 4.7(H) (as such
schedule may be amended or supplemented from time to time), each Grantor hereby represents and
warrants, on the Closing Date and on each Credit Date, that:

          (i) Schedule 4.7 (as such schedule may be amended or supplemented from time to time)
sets forth a true and complete list of (i) all United States, state and foreign
registrations of and applications for Patents, Trademarks, and Copyrights owned by each
Grantor and (ii) all Patent Licenses, Trademark Licenses, Trade Secret Licenses and
Copyright Licenses material to the business of such Grantor other than by and among
Subsidiaries of Holdings;

          (ii) it is the sole and exclusive owner of the entire right, title, and interest in or
is a licensee to all Intellectual Property listed on Schedule 4.7 (as such schedule may be
amended or supplemented from time to time), and owns or has the valid right to use all
other Intellectual Property used in or necessary to conduct its business, free and clear of
all Liens, claims, encumbrances and licenses, except for Permitted Liens
and the licenses set forth on Schedule 4.7(B), (D), (F) and (G) (as each may be
amended or supplemented from time to time);

          (iii) all Intellectual Property is subsisting and has not been adjudged invalid or
unenforceable, in whole or in part, and each Grantor has performed all acts and has paid
all renewal, maintenance, and other fees and taxes required to maintain each and every
registration and application of Copyrights, Patents and Trademarks in full force and
effect;

          (iv) all Intellectual Property is valid and enforceable; no holding, decision, or
judgment has been rendered in any action or proceeding before any court or administrative
authority challenging the validity of, such Grantor’s right to register, or such Grantor’s
rights to own or use, any Intellectual Property and no such action or proceeding is pending
or, to such Grantor’s knowledge, threatened;

          (v) all registrations and applications for Copyrights, Patents and Trademarks are
standing in the name of each Grantor, and none of the Trademarks, Patents, Copyrights or
Trade Secrets has been licensed by any Grantor to any Affiliate or

26

 

third party (other than
a Subsidiary of the Company), except as disclosed in Schedule 4.7(B), (D), (F), or (G) (as
each may be amended or supplemented from time to time);

          (vi) each Grantor has been using appropriate statutory notice of registration in
connection with its use of registered Trademarks, proper marking practices in connection
with the use of Patents, and appropriate notice of copyright in connection with the
publication of Copyrights material to the business of such Grantor;

          (vii) each Grantor uses commercially reasonable standards of quality in the
manufacture, distribution, and sale of all products sold and in the provision of all
services rendered under or in connection with all Trademark Collateral and has taken
commercially reasonable measures to insure that all licensees of the Trademark Collateral
owned by such Grantor use such adequate standards of quality;

          (viii) the conduct of each Grantor’s business, to such Grantor’s knowledge, does not
infringe upon or otherwise violate any trademark, patent, copyright, trade secret or other
intellectual property right owned or controlled by a third party; no claim has been made
that the use of any Intellectual Property owned, licensed or used by Grantor (or any of its
respective licensees) violates the asserted rights of any third party;

          (ix) to each Grantor’s knowledge, no third party is infringing upon or otherwise
violating any rights in any Intellectual Property owned or used by such Grantor, or any of
its respective licensees;

          (x) no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by Grantor or to which Grantor is bound that adversely
affect Grantor’s rights to own or use any Intellectual Property; and

          (xi) each Grantor has not made a previous assignment, sale, transfer or agreement
constituting a present or future assignment, sale, transfer or agreement of any
Intellectual Property that has not been terminated or released. There is no effective
financing statement or other document or instrument now executed, or on file or recorded in
any public office, granting a security interest in or otherwise encumbering
any part of the Intellectual Property, other than in favor of the Collateral Agent or
Permitted Liens.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements:

          (i) it shall not do any act or omit to do any act whereby any of the Intellectual
Property which is material to the business of Grantor may lapse, or become abandoned,
dedicated to the public, or unenforceable, or which would adversely affect the validity,
grant, or enforceability of the security interest granted therein;

          (ii) it shall not, with respect to any Trademarks which are material to the business
of any Grantor, cease the use of any of such Trademarks, unless the products or services
rendered under any such Trademark are being discontinued in the reasonable business
judgment of the applicable Grantor, or fail to maintain the level of the quality of
products sold and services rendered under any such Trademark at a level at least
substantially consistent with the quality of such products and services as of the date

27

 

hereof, and each Grantor shall take commercially reasonable measures to insure that
licensees of such Trademarks use such consistent standards of quality;

          (iii) it shall, within thirty (30) days of the creation or acquisition of any
Copyrightable work which is material to the business of Grantor, apply to register the
Copyright in the United States Copyright Office;

          (iv) it shall promptly notify the Collateral Agent if it knows or has reason to know
that any item of the Intellectual Property that is material to the business of any Grantor
may become (a) abandoned or dedicated to the public or placed in the public domain (except,
in the case of Patents or Copyrights, due to the expiration of the statutory term of such
item of Intellectual Property), (b) invalid or unenforceable, or (c) subject to any adverse
determination or the institution of adverse proceedings in any action or proceeding in the
United States Patent and Trademark Office, the United States Copyright Office, any state
registry, any foreign counterpart of the foregoing, or any court;

          (v) it shall take all reasonable steps in the United States Patent and Trademark
Office, the United States Copyright Office, any state registry or any foreign counterpart
of the foregoing, to pursue any application and maintain any registration of each
Trademark, Patent, and Copyright owned by any Grantor and material to its business which is
now or shall become included in the Intellectual Property including, but not limited to,
those items on Schedule 4.7(A), (C) and (E) (as each may be amended or supplemented from
time to time);

          (vi) in the event that any Intellectual Property owned by or exclusively licensed to
any Grantor is infringed, misappropriated, or diluted by a third party, such Grantor shall
promptly take reasonable action to stop such infringement, misappropriation, or dilution
and protect its rights in such Intellectual Property including, but not limited to, the
initiation of a suit for injunctive relief and to recover damages;

          (vii) it shall promptly (but in no event more than thirty (30) days after any Grantor
obtains knowledge thereof) report to the Collateral Agent (i) the filing
of any application to register any Intellectual Property with the United States Patent
and Trademark Office, the United States Copyright Office, or any state registry or foreign
counterpart of the foregoing (whether such application is filed by such Grantor or through
any agent, employee, licensee, or designee thereof) and (ii) the registration of any
Intellectual Property by any such office, in each case by executing and delivering to the
Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A
attached hereto, together with all Supplements to Schedules thereto;

          (viii) it shall, promptly upon the reasonable request of the Collateral Agent, subject
to the Intercreditor Agreement, execute and deliver to the Collateral Agent any document
required to acknowledge, confirm, register, record, or perfect the Collateral Agent’s
interest in any part of the Intellectual Property, whether now owned or hereafter acquired;

          (ix) except with the prior consent of the Collateral Agent or as permitted under the
Credit Agreement, each Grantor shall not execute, and there will not be on file in any
public office, any financing statement or other document or instruments, except financing
statements or other documents or instruments filed or to be filed in favor

28

 

of the
Collateral Agent and each Grantor shall not sell, assign, transfer, license, grant any
option, or create or suffer to exist any Lien upon or with respect to the Intellectual
Property, except for the Lien created by and under this Agreement and the other Credit
Documents and sales, assignments, transfers, licenses and grants of options to Subsidiaries
of the Company;

          (x) it shall hereafter use commercially reasonable efforts so as not to permit the
inclusion in any contract to which it hereafter becomes a party of any provision that could
or might in any way materially impair or prevent the creation of a security interest in, or
the assignment of, such Grantor’s rights and interests in any property included within the
definitions of any Intellectual Property acquired under such contracts;

          (xi) it shall take commercially reasonable measures to protect the secrecy of all
Trade Secrets, including, without limitation, entering into confidentiality agreements with
employees and labeling and restricting access to secret information and documents;

          (xii) it shall use proper statutory notice in connection with its use of any of the
Intellectual Property; and

          (xiii) it shall continue to collect, at its own expense, all amounts due or to become
due to such Grantor in respect of the Intellectual Property or any portion thereof. In
connection with such collections, each Grantor may take (and, at the Collateral Agent’s
reasonable direction, shall take) such action as such Grantor or the Collateral Agent may
deem reasonably necessary or advisable to enforce collection of such amounts.
Notwithstanding the foregoing, the Collateral Agent shall have the right at any time, to
notify, or require any Grantor to notify, any obligors with respect to any such amounts of
the existence of the security interest created hereby.

     4.8 Commercial Tort Claims

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Closing Date and on each Credit Date, that Schedule 4.8 (as such schedule may be amended or
supplemented from time to time) sets forth all material Commercial Tort Claims of each Grantor
which could reasonably be expected to be determined in favor of such Grantor; and

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations) and the expiration
or termination of all Hedge Agreements, with respect to any material Commercial Tort Claim
hereafter arising which could reasonably be expected to be determined in favor of such Grantor, it
shall deliver to the Collateral Agent a completed Pledge Supplement, substantially in the form of
Exhibit A attached hereto, together with all Supplements to Schedules thereto, identifying such new
Commercial Tort Claims.

SECTION 5. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.

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     5.1 Access; Right of Inspection. Subject to the terms and conditions set forth in Section 5.6
of the Credit Agreement, the Collateral Agent shall at all times have full and free access during
normal business hours to all the books, correspondence and records of each Grantor, and the
Collateral Agent and its representatives may examine the same, take extracts therefrom and make
photocopies thereof, and each Grantor agrees to render to the Collateral Agent, at such Grantor’s
cost and expense, such clerical and other assistance as may be reasonably requested with regard
thereto. Subject to the terms and conditions set forth in Section 5.6 of the Credit Agreement, the
Collateral Agent and its representatives shall at all times also have the right to enter any
premises of each Grantor and inspect any property of each Grantor where any of the Collateral of
such Grantor granted pursuant to this Agreement is located for the purpose of inspecting the same,
observing its use or otherwise protecting its interests therein.

     5.2 Further Assurances.

          (a) Each Grantor agrees that from time to time, at the expense of such Grantor, that it shall
promptly execute and deliver all further instruments and documents, and take all further action,
that may be necessary or reasonably desirable, or that the Collateral Agent may reasonably request
(such request, in all events, shall not be in contravention of the Intercreditor Agreement), in
order to create and/or maintain the validity, perfection or priority of and protect any security
interest granted hereby or to enable the Collateral Agent to exercise and enforce its rights and
remedies hereunder with respect to any Collateral. Without limiting the generality of the
foregoing, each Grantor shall:

          (i) file such financing or continuation statements, or amendments thereto, and execute
and deliver such other agreements, instruments, endorsements, powers of attorney or
notices, as may be necessary or desirable, or as the Collateral Agent may reasonably
request, in order to perfect and preserve the security interests granted or purported to be
granted hereby;

          (ii) take all actions necessary to ensure the recordation of appropriate evidence of
the liens and security interest granted hereunder in the Intellectual Property with any
intellectual property registry in which said Intellectual Property is registered or in
which an application for registration is pending including, without limitation, the United
States Patent and Trademark Office, the United States Copyright Office, the various
Secretaries of State, and the foreign counterparts on any of the foregoing;

          (iii) upon the occurrence and during the continuance of an Event of Default, and upon
request by the Collateral Agent, assemble the Collateral and allow inspection of the
Collateral by the Collateral Agent, or persons designated by the Collateral Agent; and

          (iv) at the Collateral Agent’s request, appear in and defend any action or proceeding
that could reasonably be expected to have a Material Adverse Effect with respect to such
Grantor’s title to or the Collateral Agent’s security interest in all or any part of the
Collateral.

          (b) Each Grantor hereby authorizes the Collateral Agent to file a Record or Records,
including, without limitation, financing or continuation statements, and amendments thereto, in any
jurisdictions and with any filing offices as the Collateral Agent may determine, in

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its sole
discretion, are necessary or advisable to perfect the security interest granted to the Collateral
Agent herein. Such financing statements may describe the Collateral in the same manner as
described herein or may contain an indication or description of collateral that describes such
property in any other manner as the Collateral Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral
granted to the Collateral Agent herein, including, without limitation, describing such property as
“all assets” or “all personal property, whether now owned or hereafter acquired.” Each Grantor
shall furnish to the Collateral Agent from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral
as the Collateral Agent may reasonably request, all in reasonable detail.

          (c) Each Grantor hereby authorizes the Collateral Agent to modify this Agreement after
obtaining such Grantor’s written approval of or signature to such modification by amending Schedule
4.7 (as such schedule may be amended or supplemented from time to time) to include reference to any
right, title or interest in any existing Intellectual Property or any Intellectual Property
acquired or developed by any Grantor after the execution hereof or to delete any reference to any
right, title or interest in any Intellectual Property in which any Grantor no longer has or claims
any right, title or interest.

     5.3 Additional Grantors. From time to time subsequent to the date hereof, additional Persons
may become parties hereto as additional Grantors (each, an “Additional Grantor”), by executing a
Counterpart Agreement. Upon delivery of any such counterpart agreement to the Collateral Agent,
notice of which is hereby waived by Grantors, each Additional Grantor shall be a Grantor and shall
be as fully a party hereto as if Additional Grantor were an original signatory hereto. Each
Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished
by the addition or release of any other Grantor hereunder, nor by any election of Collateral Agent
not to cause any Subsidiary of Company to become an Additional Grantor hereunder. This Agreement
shall be fully effective as to any Grantor that is or becomes a party hereto regardless of
whether any other Person becomes or fails to become or ceases to be a Grantor hereunder.

SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

     6.1 Power of Attorney. Subject to Section 6.1 of the First Lien Pledge and Security Agreement
and the Intercreditor Agreement, each Grantor hereby irrevocably appoints the Collateral Agent
(such appointment being coupled with an interest) as such Grantor’s attorney-in-fact, with full
authority in the place and stead of such Grantor and in the name of such Grantor, the Collateral
Agent or otherwise, from time to time in the Collateral Agent’s discretion to take any action and
to execute any instrument that the Collateral Agent may deem reasonably necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation, the following:

          (a) upon the occurrence and during the continuance of any Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent pursuant
to the Credit Agreement;

          (b) upon the occurrence and during the continuance of any Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys
due and to become due under or in respect of any of the Collateral;

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          (c) upon the occurrence and during the continuance of any Event of Default, to receive,
endorse and collect any drafts or other instruments, documents and chattel paper in connection with
clause (b) above;

          (d) upon the occurrence and during the continuance of any Event of Default, to file any claims
or take any action or institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the
Collateral Agent with respect to any of the Collateral;

          (e) to prepare and file any UCC financing statements against such Grantor as debtor;

          (f) to prepare, sign, and file for recordation in any intellectual property registry,
appropriate evidence of the lien and security interest granted herein in the Intellectual Property
in the name of such Grantor as debtor;

          (g) upon the occurrence and during the continuance of an Event of Default, to take or cause to
be taken all actions necessary to perform or comply or cause performance or compliance with the
terms of this Agreement, including, without limitation, access to pay or discharge taxes or Liens
(other than Permitted Liens) levied or placed upon or threatened against the Collateral, the
legality or validity thereof and the amounts necessary to discharge the same to be determined by
the Collateral Agent in its sole discretion, any such payments made by the Collateral Agent to
become obligations of such Grantor to the Collateral Agent, due and payable immediately without
demand; and

          (h) upon the occurrence and during the continuance of an Event of Default, generally to sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral
as fully and completely as though the Collateral Agent were the absolute owner
thereof for all purposes, and to do, at the Collateral Agent’s option and such Grantor’s
expense, at any time or from time to time, all acts and things that the Collateral Agent deems
reasonably necessary to protect, preserve or realize upon the Collateral and the Collateral Agent’s
security interest therein in order to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

     6.2 No Duty on the Part of Collateral Agent or Secured Parties. The powers conferred on the
Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the
Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to exercise
any such powers. The Collateral Agent and 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, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful misconduct.

SECTION 7. REMEDIES.

     7.1 Generally.

          (a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may,
subject to the terms of and in the manner contemplated by the Intercreditor

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Agreement, exercise in
respect of the Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it at law or in equity, all the rights and remedies of the Collateral Agent
on default under the UCC (whether or not the UCC applies to the affected Collateral) to collect,
enforce or satisfy any Secured Obligations then owing, whether by acceleration or otherwise, and
also may pursue any of the following separately, successively or simultaneously:

          (i) require any Grantor to, and each Grantor hereby agrees that it shall at its
expense and promptly upon request of the Collateral Agent forthwith, assemble all or part
of the Collateral as directed by the Collateral Agent (subject to the Intercreditor
Agreement) and make it available to the Collateral Agent at a place to be designated by the
Collateral Agent that is reasonably convenient to both parties;

          (ii) enter onto the property where any Collateral is located and take possession
thereof with or without judicial process;

          (iii) 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 Collateral Agent deems appropriate; and

          (iv) without notice except as specified below or under the UCC, sell, assign, lease,
license (on an exclusive or nonexclusive basis) or otherwise dispose of the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral
Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or
times and at such price or prices and upon such other terms as the Collateral Agent may
deem commercially reasonable.

          (b) The Collateral Agent or any Secured Party may be the purchaser of any or all of the
Collateral at any public or private (to the extent to the portion of the Collateral being privately
sold is of a kind that is customarily sold on a recognized market or the subject of widely
distributed standard price quotations) sale in accordance with the UCC and the Collateral Agent, as
collateral agent for and representative of the Secured Parties, shall be entitled, for the purpose
of bidding and making settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral payable by the
Collateral Agent at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Each Grantor agrees that it would not be
commercially unreasonable for the Collateral Agent to dispose of the Collateral or any portion
thereof by using 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. Each Grantor hereby waives any claims against the Collateral Agent arising by reason of
the fact that the price at which any Collateral may have been sold at such a private

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sale was less
than the price which might have been obtained at a public sale, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more than one offeree. If
the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the
Secured Obligations, Grantors shall be liable for the deficiency and the fees of any attorneys
employed by the Collateral Agent to collect such deficiency. Each Grantor further agrees that a
breach of any of the covenants contained in this Section will cause irreparable injury to the
Collateral Agent, that the Collateral Agent has no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any
defenses against an action for specific performance of such covenants except for a defense that no
default has occurred giving rise to the Secured Obligations becoming due and payable prior to their
stated maturities. Nothing in this Section shall in any way alter the rights of the Collateral
Agent hereunder.

          (c) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title or
the like. This procedure will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

          (d) The Collateral Agent shall have no obligation to marshal any of the Collateral.

     7.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement, the
Credit Agreement or the Intercreditor Agreement, all proceeds received by the Collateral Agent in
respect of any sale, any collection from, or other realization upon all or any part of the
Collateral shall be applied in full
or in part by the Collateral Agent against, the Secured Obligations in the following order of
priority: first, to the payment of all costs and expenses of such sale, collection or other
realization, including reasonable compensation to the Collateral Agent and its agents and counsel,
and all other expenses, liabilities and advances made or incurred by the Collateral Agent in
connection therewith, and all amounts for which the Collateral Agent is entitled to indemnification
hereunder (in its capacity as the Collateral Agent and not as a Lender) and all advances made by
the Collateral Agent hereunder for the account of the applicable Grantor, and to the payment of all
costs and expenses paid or incurred by the Collateral Agent in connection with the exercise of any
right or remedy hereunder or under the Credit Agreement, all in accordance with the terms hereof or
thereof; second, to the extent of any excess of such proceeds, to the payment of all other Secured
Obligations for the ratable benefit of the Secured Parties; and third, to the extent of any excess
of such proceeds, to the payment to or upon the order of such Grantor or to whosoever may be
lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

     7.3 Sales on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor
will be credited only with payments actually made by purchaser and received by Collateral Agent and
applied to indebtedness of the purchaser. In the event the purchaser fails to pay for the
Collateral, Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds
of the sale.

     7.4 Deposit Accounts.

     If any Event of Default shall have occurred and be continuing, the Collateral Agent may,
subject to the Intercreditor Agreement, apply the balance from any Deposit Account (other than
Foreign Deposit Accounts) or instruct the bank at which any Deposit Account (other than Foreign

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Deposit Accounts) is maintained to pay the balance of any Deposit Account (other than Foreign
Deposit Accounts) to or for the benefit of the Collateral Agent.

     7.5 Investment Related Property.

     Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws, the Collateral Agent may be compelled, with respect to
any sale of all or any part of the Investment Related Property conducted without prior registration
or qualification of such Investment Related Property under the Securities Act and/or such state
securities laws, to limit purchasers to those who will agree, among other things, to acquire the
Investment Related Property for their own account, for investment and not with a view to the
distribution or resale thereof. Each Grantor acknowledges that any such private sale may be at
prices and on terms less favorable than those obtainable through a public sale without such
restrictions (including a public offering made pursuant to a registration statement under the
Securities Act) and, notwithstanding such circumstances, each Grantor agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner and that the Collateral
Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any
Investment Related Property for the period of time necessary to permit the issuer thereof to
register it for a form of public sale requiring registration under the Securities Act or under
applicable state securities laws, even if such issuer would, or should, agree to so register it.
If the Collateral Agent determines to exercise its right to sell any or all of the Investment
Related Property (subject to the terms of the Intercreditor Agreement), upon written request, each
Grantor shall and shall cause each issuer of any Pledged Stock to be sold hereunder, each
partnership and each limited liability company from time to time to furnish to the Collateral Agent
all such
information as the Collateral Agent may request in order to determine the number and nature of
interest, shares or other instruments included in the Investment Related Property which may be sold
by the Collateral Agent in exempt transactions under the Securities Act and the rules and
regulations of the Securities and Exchange Commission thereunder, as the same are from time to time
in effect.

     7.6 Intellectual Property.

          (a) Anything contained herein to the contrary notwithstanding, upon the occurrence and during
the continuation of an Event of Default and subject to the Intercreditor Agreement:

          (i) the Collateral Agent shall have the right (but not the obligation) to bring suit
or otherwise commence any action or proceeding in the name of any Grantor, the Collateral
Agent or otherwise, in the Collateral Agent’s sole discretion, to enforce any Intellectual
Property, in which event such Grantor shall, at the request of the Collateral Agent, do any
and all lawful acts and execute any and all documents required by the Collateral Agent in
aid of such enforcement and such Grantor shall promptly, upon written demand, reimburse and
indemnify the Collateral Agent as provided in Section 10 hereof in connection with the
exercise of its rights under this Section, and, to the extent that the Collateral Agent
shall elect not to bring suit to enforce any Intellectual Property as provided in this
Section, each Grantor agrees to use commercially reasonable measures, whether by action,
suit, proceeding or otherwise, to prevent the infringement or other violation of any of
such Grantor’s rights in the Intellectual Property by others and for that purpose agrees to
diligently maintain any action, suit or proceeding against any Person so infringing as
shall be necessary to prevent such infringement or violation;

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          (ii) upon written demand from the Collateral Agent, each Grantor shall grant, assign,
convey or otherwise transfer to the Collateral Agent or such Collateral Agent’s designee
all of such Grantor’s right, title and interest in and to the Intellectual Property and
shall execute and deliver to the Collateral Agent such documents as are necessary or
appropriate to carry out the intent and purposes of this Agreement;

          (iii) each Grantor agrees that such an assignment and/or recording shall be applied to
reduce the Secured Obligations outstanding only to the extent that the Collateral Agent (or
any Secured Party) receives cash proceeds in respect of the sale of, or other realization
upon, the Intellectual Property;

          (iv) subject to the terms of the Intercreditor Agreement, within five (5) Business
Days after written notice from the Collateral Agent, each Grantor shall make available to
the Collateral Agent, to the extent within such Grantor’s power and authority, such
personnel in such Grantor’s employ on the date of such Event of Default as the Collateral
Agent may reasonably designate, by name, title or job responsibility, to permit such
Grantor to continue, directly or indirectly, to produce, advertise and sell the products
and services sold or delivered by such Grantor under or in connection with the Trademarks,
Trademark Licenses, such persons to be available to perform their prior functions on the
Collateral Agent’s behalf and to be compensated by the Collateral Agent at such Grantor’s
expense on a per diem, pro-rata basis consistent with the salary and benefit structure
applicable to each as of the date of such Event of Default; and

          (v) the Collateral Agent shall have the right to notify, or require each Grantor to
notify, any obligors with respect to amounts due or to become due to such Grantor in
respect of the Intellectual Property, of the existence of the security interest created
herein, to direct such obligors to make payment of all such amounts directly to the
Collateral Agent, and, upon such notification and at the expense of such Grantor, to
enforce collection of any such amounts and to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor might have done;

	 	(1)	 	all amounts and proceeds (including checks and other instruments) received by
Grantor in respect of amounts due to such Grantor in respect of the Collateral or any
portion thereof shall be received in trust for the benefit of the Collateral Agent
hereunder, shall be segregated from other funds of such Grantor and shall be forthwith
paid over or delivered to the Collateral Agent in the same form as so received (with
any necessary endorsement) to be held as cash Collateral and applied as provided by
Section 7.7 hereof; and
	 
	 	(2)	 	Grantor shall not adjust, settle or compromise the amount or payment of any
such amount or release wholly or partly any obligor with respect thereto or allow any
credit or discount thereon.

          (b) If (i) an Event of Default shall have occurred and, by reason of cure, waiver,
modification, amendment or otherwise, no longer be continuing, (ii) no other Event of Default shall
have occurred and be continuing, (iii) an assignment or other transfer to the Collateral Agent of
any rights, title and interests in and to the Intellectual Property shall have been previously made
and shall have become absolute and effective, and (iv) the Secured Obligations shall not have
become immediately due and payable, upon the written request of any

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Grantor, the Collateral Agent
shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost and expense, such
assignments or other transfer as may be necessary to reassign to such Grantor any such rights,
title and interests as may have been assigned to the Collateral Agent as aforesaid, subject to any
disposition thereof that may have been made by the Collateral Agent; provided, after giving effect
to such reassignment, the Collateral Agent’s security interest granted pursuant hereto, as well as
all other rights and remedies of the Collateral Agent granted hereunder, shall continue to be in
full force and effect; and provided further, the rights, title and interests so reassigned shall be
free and clear of any other Liens granted by or on behalf of the Collateral Agent and the Secured
Parties.

          (c) Solely for the purpose of enabling the Collateral Agent to exercise rights and remedies
under this Section 7 and at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent, to the
extent it has the right to do so, an irrevocable (except by reason of cure of an Event of Default),
nonexclusive license (exercisable without payment of royalty or other compensation to such
Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and
inspection in favor of such Grantor to avoid the risk of invalidation of said Trademarks, to use,
operate under, license, or sublicense any Intellectual Property now owned or hereafter acquired by
such Grantor, and wherever the same may be located.

     7.7 Cash Proceeds. In addition to the rights of the Collateral Agent specified in Section 4.3
with respect to payments of Receivables (and subject to the terms of the Intercreditor Agreement),
upon the
occurrence and during the continuance of an Event of Default all proceeds of any Collateral
received by any Grantor consisting of cash, checks and other non-cash items (collectively, “Cash
Proceeds”) shall be held by such Grantor in trust for the Collateral Agent, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, unless otherwise provided
pursuant to Section 4.4.1(a)(ii), be turned over to the Collateral Agent in the exact form received
by such Grantor (duly indorsed by such Grantor to the Collateral Agent, if required) and held by
the Collateral Agent in the Collateral Account. Upon the occurrence and during the continuance of
an Event of Default any Cash Proceeds received by the Collateral Agent (whether from a Grantor or
otherwise) may, in the sole discretion of the Collateral Agent, (A) be held by the Collateral Agent
for the ratable benefit of the Secured Parties, as collateral security for the Secured Obligations
(whether matured or unmatured) and/or (B) then or at any time thereafter may be applied by the
Collateral Agent against the Secured Obligations then due and owing.

SECTION 8. COLLATERAL AGENT.

     The Collateral Agent has been appointed to act as Collateral Agent hereunder by Lenders and,
by their acceptance of the benefits hereof, the other Secured Parties. The Collateral Agent shall
be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any action (including,
without limitation, the release or substitution of Collateral), solely in accordance with this
Agreement and the Second Lien Credit Documents. In furtherance of the foregoing provisions of this
Section, each Secured Party, by its acceptance of the benefits hereof, agrees that it shall have no
right individually to realize upon any of the Collateral hereunder, it being understood and agreed
by such Secured Party that all rights and remedies hereunder may be exercised solely by the
Collateral Agent for the benefit of Secured Parties in accordance with the terms of this Section.
Collateral Agent may resign at any time by giving thirty (30) days’ prior written notice thereof to
Lenders and the Grantors, and Collateral Agent may be removed at any time with or without cause by
an instrument or concurrent instruments in writing delivered to the

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Grantors and Collateral Agent
signed by the Requisite Lenders. Upon any such notice of resignation or any such removal,
Requisite Lenders shall have the right, upon five (5) Business Days’ notice to the Administrative
Agent, to appoint a successor Collateral Agent. Upon the acceptance of any appointment as
Collateral Agent hereunder by a successor Collateral Agent, that successor Collateral Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring or removed Collateral Agent under this Agreement, and the retiring or removed Collateral
Agent under this Agreement shall promptly (i) transfer to such successor Collateral Agent all sums,
Securities and other items of Collateral held hereunder, together with all records and other
documents necessary or appropriate in connection with the performance of the duties of the
successor Collateral Agent under this Agreement, and (ii) execute and deliver to such successor
Collateral Agent or otherwise authorize the filing of such amendments to financing statements, and
take such other actions, as may be necessary or appropriate in connection with the assignment to
such successor Collateral Agent of the security interests created hereunder, whereupon such
retiring or removed Collateral Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring or removed Collateral Agent’s resignation or removal hereunder as
the Collateral Agent, the provisions of this Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it under this Agreement while it was the Collateral Agent
hereunder.

SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS; RELEASES.

     This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the payment in full of all Secured Obligations and the expiration or
termination of all Hedge Agreements, be binding upon each Grantor, its successors and assigns, and
inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of
the Collateral Agent and its successors, transferees and assigns. Without limiting the generality
of the foregoing, but subject to the terms of the Credit Agreement, any Lender may assign or
otherwise transfer any Loans held by it to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to Lenders herein or otherwise.
Upon the payment in full of all Secured Obligations and the expiration or termination of all Hedge
Agreements, the security interest granted hereby shall automatically terminate hereunder and of
record and all rights to the Collateral shall revert to Grantors. Upon any such termination the
Collateral Agent shall, at Grantors’ expense, execute and deliver to Grantors or otherwise
authorize the filing of such documents as Grantors shall reasonably request, including financing
statement amendments to evidence such termination. Upon any disposition of property permitted by
the Second Lien Credit Documents or as provided in the Intercreditor Agreement, the Liens granted
herein shall be deemed to be automatically released and such property shall automatically revert to
the applicable Grantor with no further action on the part of any Person. The Collateral Agent
shall, at Grantor’s expense, execute and deliver or otherwise authorize the filing of such
documents as Grantors shall reasonably request, in form and substance reasonably satisfactory to
the Collateral Agent, including financing statement amendments to evidence such release.

SECTION 10. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

     The powers conferred on the Collateral 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 Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior

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parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its
own property. Neither the Collateral Agent nor any of its directors, officers, employees or agents
shall be liable for failure to demand, collect or realize upon all or any part 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 otherwise. If any Grantor fails to perform any
agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such
agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be
payable by each Grantor under Section 10.2 of the Credit Agreement.

SECTION 11. MISCELLANEOUS.

     Any notice required or permitted to be given under this Agreement shall be given in accordance
with Section 10.1 of the Credit Agreement. No failure or delay on the part of the Collateral Agent
in the exercise of any power, right or privilege hereunder or under any other Second Lien Credit
Document shall impair such power, right or privilege or be construed to be a waiver of any default
or acquiescence therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other power, right or privilege.
All rights and remedies existing under this Agreement and the other Second Lien Credit Documents
are cumulative to, and not exclusive of, any rights or remedies otherwise available. In case any
provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not
in any way be affected or impaired thereby. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or would otherwise be within the limitations
of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists. This Agreement shall be binding upon and inure to the benefit
of the Collateral Agent and Grantors and their respective successors and assigns. Except as
permitted under the Second Lien Credit Documents, no Grantor shall, without the prior written
consent of the Collateral Agent given in accordance with the Credit Agreement, assign any right,
duty or obligation hereunder. This Agreement and the other Second Lien Credit Documents embody the
entire agreement and understanding between Grantors and the Collateral Agent and supersede all
prior agreements and understandings between such parties relating to the subject matter hereof and
thereof. Accordingly, the Second Lien Credit Documents may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. This Agreement may be executed in one or more counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.

SECTION 12. CONFLICTS WITH FIRST LIEN LOAN DOCUMENTS.

     In the event of any conflict between the provisions of this Agreement and the provisions of
the First Lien Loan Documents, the provisions of the Intercreditor Agreement shall govern and
control.

39

 

     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO ITS CONFLICTS OF LAW PROVISIONS THAT WOULD REQUIRE THE APPLICATION OF LAWS OF ANOTHER
STATE.

[Remainder of this page intentionally left blank]

40

 

          IN WITNESS WHEREOF, each Grantor and the Collateral Agent have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	DAY INTERNATIONAL, INC.
	 	 	as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	DAY INTERNATIONAL GROUP, INC.
	 	 	as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	VARN INTERNATIONAL, INC.
	 	 	as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	DAY INTERNATIONAL FINANCE, INC.
	 	 	as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	NETWORK DISTRIBUTION INTERNATIONAL
	 	 	as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 

[SECOND LIEN PLEDGE AND SECURITY AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	NETWORK DISTRIBUTION INTERNATIONAL, INC.

as Grantor
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Thomas J. Koenig
 

Name: Thomas J. Koenig
	 	 
	 

	 	 	 	Title: Vice President and CFO	 	 

[SECOND LIEN PLEDGE AND SECURITY AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 	 	as the Collateral Agent
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephen C. Jerard
 

	 	 
	 	 	Name: Stephen C. Jerard
	 	 	Title: Vice President

[SECOND LIEN PLEDGE AND SECURITY AGREEMENT]Exhibit 10.5

 

Exhibit 10.5

EXECUTION COPY

INTERCREDITOR AGREEMENT

     This INTERCREDITOR AGREEMENT (“Agreement”), is dated as of December 5, 2005, and entered into
by and among Day International, Inc. (the “Company”), Goldman Sachs Credit Partners L.P. (“GSCP”),
in its capacity as collateral agent for the First Lien Obligations (as defined below), including
its successors and assigns from time to time (the “First Lien Collateral Agent”), and The Bank of
New York (“BNY”), in its capacity as collateral agent for the Second Lien Obligations (as defined
below), including its successors and assigns from time to time (the “Second Lien Collateral
Agent”). Capitalized terms used in this Agreement have the meanings assigned to them in Section 1
below.

RECITALS

     The Company, Day International Group, Inc. and certain Subsidiaries of the Company, as
guarantors party thereto (collectively, the “Guarantors”), the lenders and agents party thereto,
and GSCP, as Sole Lead Arranger, Sole Bookrunner and Syndication Agent (in each such capacity, the
“Arranger”), and as Administrative Agent and Collateral Agent, have entered into that Credit and
Guaranty Agreement dated as of the date hereof providing for a first lien secured revolving credit
facility and term loan (as amended, restated, supplemented, modified, replaced or refinanced from
time to time, the “First Lien Credit Agreement”);

     The Company, the Guarantors, the lenders and agents party thereto, and GSCP, as Sole Lead
Arranger, Sole Bookrunner and Syndication Agent, and BNY as Administrative Agent and Collateral
Agent, entered into that Credit and Guaranty Agreement dated as of the date hereof providing for a
second lien secured term loan (as amended, restated, supplemented, modified, replaced or refinanced
from time to time, the “Second Lien Credit Agreement”);

     Pursuant to (i) the First Lien Credit Agreement, the Guarantors have agreed to guaranty the
First Lien Obligations and have agreed to cause certain future Subsidiaries of the Company to
guaranty the First Lien Obligations (the “First Lien Guaranty”) and (ii) the Second Lien Credit
Agreement, the Guarantors have agreed to guaranty the Second Lien Obligations and have agreed to
cause certain future Subsidiaries of the Company to guaranty the Second Lien Obligations (the
“Second Lien Guaranty”);

     The obligations of the Company under the First Lien Credit Agreement and any Hedge Agreements
with a Lender Counterparty and the obligations of the Guarantors under the First Lien Guaranty will
be secured on a first priority basis by liens on substantially all the assets of the Company and
the Guarantors, respectively, pursuant to the terms of the First Lien Collateral Documents;

     The obligations of the Company under the Second Lien Credit Agreement and the obligations of
the Guarantors under the Second Lien Guaranty will be secured on a

 

 

second priority basis by liens on substantially all the assets of the Company and the
Guarantors, respectively, pursuant to the terms of the Second Lien Collateral Documents;

     The First Lien Loan Documents and the Second Lien Loan Documents provide, among other things,
that the parties thereto shall set forth in this Agreement their respective rights and remedies
with respect to the Collateral; and

     In order to induce the First Lien Collateral Agent and the First Lien Claimholders to consent
to the Grantors incurring the Second Lien Obligations and to induce the First Lien Claimholders to
extend credit and other financial accommodations and lend monies to or for the benefit of the
Company or any other Grantor, the Second Lien Collateral Agent on behalf of the Second Lien
Claimholders has agreed to the intercreditor and other provisions set forth in this Agreement.

AGREEMENT

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

     SECTION
1. Definitions.

     1.1 Defined Terms. As used in the Agreement, the following terms shall have the following
meanings:

     “Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, controls or is controlled by or is under common
control with the Person specified. For purposes of this definition, a Person shall be deemed to
“control” or be “controlled by” a Person if such Person possesses, directly or indirectly, power to
direct or cause the direction of the management or policies of such Person whether through
ownership of equity interests, by contract or otherwise.

     “Agreement” means this Intercreditor Agreement, as amended, restated, renewed, extended,
supplemented or otherwise modified from time to time.

     “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

     “Bankruptcy Law” means the Bankruptcy Code and any similar federal, state or foreign law for
the relief of debtors.

     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close.

     “Cap Amount” has the meaning assigned to that term within the definition of “First Lien
Obligation”.

2

 

     “Collateral” means all of the assets and property of any Grantor, whether real, personal or
mixed, constituting both First Lien Collateral and Second Lien Collateral.

     “Company” has the meaning assigned to that term in the Preamble to this Agreement.

     “Comparable Second Lien Collateral Document” means, in relation to any Collateral subject to
any Lien created under any First Lien Collateral Document, the Second Lien Loan Document which
creates a Lien on the same Collateral, granted by the same Grantor.

     “Currency Agreement” means any foreign exchange contract, currency swap agreement, futures
contract, option contract, synthetic cap or other similar agreement or arrangement, each of which
is for the purpose of hedging the foreign currency risk associated with the Company’s and the
Guarantors’ operations and not for speculative purposes.

     “DIP Financing” has the meaning assigned to that term in Section 6.1.

     “Discharge of First Lien Obligations” means, except to the extent otherwise expressly provided
in Section 5.5:

     (a) payment in full in cash of the principal of and interest (including interest accruing on
or after the commencement of any Insolvency or Liquidation Proceeding, whether or not such interest
would be allowed in such Insolvency or Liquidation Proceeding), on all Indebtedness outstanding
under the First Lien Loan Documents and constituting First Lien Obligations;

     (b) payment in full in cash of all other First Lien Obligations that are due and payable or
otherwise accrued and owing at or prior to the time such principal and interest are paid;

     (c) termination or expiration of all commitments, if any, to extend credit that would
constitute First Lien Obligations; and

     (d) termination or cash collateralization (in an amount and manner reasonably satisfactory to
the First Lien Collateral Agent, but in no event greater than 105% of the aggregate undrawn face
amount) of all letters of credit issued under the First Lien Loan Documents and constituting First
Lien Obligations.

     “Disposition” has the meaning assigned to that term in Section 5.1(b).

     “First Lien Claimholders” means, at any relevant time, the holders of First Lien Obligations
at that time, including the First Lien Lenders and the agents under the First Lien Loan Documents.

     “First Lien Collateral Agent” has the meaning assigned to that term in the Recitals to this
Agreement.

3

 

     “First Lien Collateral” means all of the assets and property of any Grantor, whether real,
personal or mixed, with respect to which a Lien is granted as security for any First Lien
Obligations.

     “First Lien Collateral Documents” means the Collateral Documents (as defined in the First Lien
Credit Agreement) and any other agreement, document or instrument pursuant to which a Lien is
granted securing any First Lien Obligations or under which rights or remedies with respect to such
Liens are governed.

     “First Lien Credit Agreement” has the meaning assigned to that term in the Recitals to this
Agreement.

     “First Lien Guaranty” has the meaning assigned to that term in the Recitals to this Agreement.

     “First Lien Lenders” means the “Lenders” under and as defined in the First Lien Loan
Documents.

     “First Lien Loan Documents” means the First Lien Credit Agreement and the Credit Documents (as
defined in the First Lien Credit Agreement), including Hedge Agreements entered into with a Lender
Counterparty, and each of the other agreements, documents and instruments providing for or
evidencing any other First Lien Obligation, and any other document or instrument executed or
delivered at any time in connection with any First Lien Obligations, including any intercreditor or
joinder agreement among holders of First Lien Obligations, to the extent such are effective at the
relevant time, as each may be amended, restated, supplemented, modified, renewed or extended from
time to time in accordance with the provisions of this Agreement.

     “First Lien Mortgages” means a collective reference to each mortgage, deed of trust and other
document or instrument under which any Lien on real property owned or leased by any Grantor is
granted to secure any First Lien Obligations or under which rights or remedies with respect to any
such Liens are governed.

     “First Lien Obligations” means, subject to the next sentence, all Obligations outstanding
under the First Lien Credit Agreement and the other First Lien Loan Documents, including Hedge
Agreements entered into with any Lender Counterparty. “First Lien Obligations” shall include all
interest accrued or accruing (or which would, absent commencement of an Insolvency or Liquidation
Proceeding, accrue) after commencement of an Insolvency or Liquidation Proceeding in accordance
with the rate specified in the relevant First Lien Loan Document whether or not the claim for such
interest is allowed as a claim in such Insolvency or Liquidation Proceeding.

     Notwithstanding the foregoing, if the sum of: (1) Indebtedness for borrowed money constituting
principal outstanding under the First Lien Credit Agreement and the other First Lien Documents;
plus (2) the aggregate face amount of any letters of credit
issued but not reimbursed under the First Lien Credit Agreement, is in excess of $368.5
million in the aggregate (the “Cap Amount”), then only that portion of such Indebtedness and such
aggregate face amount of letters of credit equal to the Cap Amount shall be

4

 

included in First Lien
Obligations and interest and reimbursement obligations with respect to such Indebtedness and
letters of credit shall only constitute First Lien Obligations to the extent related to
Indebtedness and face amounts of letters of credit included in the First Lien Obligations.

     “Governmental Authority” means any federal, state, municipal, national or other government,
governmental department, commission, board, bureau, court, agency or instrumentality or political
subdivision thereof or any entity or officer exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any government or any court, in each
case whether associated with a state of the United States, the United States, or a foreign entity
or government.

     “Grantors” means the Company, the Guarantors and each other Person that has or may from time
to time hereafter execute and deliver a First Lien Collateral Document or a Second Lien Collateral
Document as a “Grantor” (or the equivalent thereof).

     “Guarantors” has the meaning set forth in the Recitals to this Agreement.

     “Hedge Agreements” means an Interest Rate Agreement or a Currency Agreement entered
into with a Lender Counterparty in order to satisfy the requirements of the First Lien Credit
Agreement or otherwise in the ordinary course of the Company’s or any of the Guarantors’
businesses.

     “Hedging Obligation” of any Person means any obligation of such Person pursuant to any Hedge
Agreements.

     “Indebtedness” means and includes all Obligations that constitute “Indebtedness” within the
meaning of the First Lien Credit Agreement or the Second Lien Credit Agreement, as applicable.

     “Insolvency or Liquidation Proceeding” means:

     (a) any voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to
any Grantor;

     (b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding
with respect to any Grantor or with respect to a material portion of their respective assets;

     (c) any liquidation, dissolution, reorganization or winding up of any Grantor whether
voluntary or involuntary and whether or not involving insolvency or bankruptcy; or

     (d) any assignment for the benefit of creditors or any other marshalling of assets and
liabilities of any Grantor.

5

 

     “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, interest rate hedging agreement or other similar agreement or
arrangement each of which is for the purpose of hedging the interest rate exposure associated with
the Company’s or the Guarantors’ operations and not for speculative purposes.

     “Lender Counterparty” means the Arranger and each First Lien Lender or any Affiliate of a
First Lien Lender counterparty to a Hedge Agreement (including any Person who is a First Lien
Lender (and any Affiliate thereof) as of the Closing Date (as defined in the First Lien Credit
Agreement) but subsequently, whether before or after entering into a Hedge Agreement, ceases to be
a First Lien Lender) including, without limitation, each such Affiliate that enters into a joinder
agreement with the First Lien Collateral Agent.

     “Lien” means any lien, mortgage, pledge, assignment, security interest, charge or encumbrance
of any kind (including any agreement to give any of the foregoing, any conditional sale or other
title retention agreement, and any lease in the nature thereof) and any option, trust, UCC
financing statement or other preferential arrangement having the practical effect of any of the
foregoing.

     “New Agent” has the meaning assigned to that term in Section 5.5.

     “Obligations” means all obligations of every nature of each Grantor from time to time owed to
any agent or trustee, the First Lien Claimholders, the Second Lien Claimholders or any of them or
their respective Affiliates, in each case under the First Lien Loan Documents, the Second Lien Loan
Documents or Hedge Agreements, whether for principal, interest or payments for early termination of
Interest Rate Agreements, fees, expenses, indemnification or otherwise and all guarantees of any of
the foregoing.

     “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, governmental authority or other entity.

     “Pledged Collateral” has the meaning set forth in Section 5.4(a).

     “Recovery” has the meaning set forth in Section 6.5.

     “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, defease,
amend, modify, supplement, restructure, replace, refund or repay, or to issue other indebtedness,
in exchange or replacement for, such Indebtedness in whole or in part. “Refinanced” and
“Refinancing” shall have correlative meanings.

     “Second Lien Claimholders” means, at any relevant time, the holders of Second Lien Obligations
at that time, including the Second Lien Lenders and the agents under the Second Lien Loan
Documents.

6

 

     “Second Lien Collateral” means all of the assets and property of any Grantor, whether real,
personal or mixed, with respect to which a Lien is granted as security for any Second Lien
Obligations.

     “Second Lien Collateral Agent” has the meaning assigned to that term in the Preamble of this
Agreement.

     “Second Lien Collateral Documents” means the Collateral Documents (as defined in the Second
Lien Credit Agreement) and any other agreement, document or instrument pursuant to which a Lien is
granted securing any Second Lien Obligations or under which rights or remedies with respect to such
Liens are governed.

     “Second Lien Credit Agreement” has the meaning assigned to that term in the Recitals to this
Agreement.

     “Second Lien Guaranty” has the meaning assigned to that term in the Recitals to this
Agreement.

     “Second Lien Lenders” means the “Lenders” under and as defined in the Second Lien Credit
Agreement.

     “Second Lien Loan Documents” means the Second Lien Credit Agreement and the Credit Documents
(as defined in the Second Lien Credit Agreement) and each of the other agreements, documents and
instruments providing for or evidencing any other Second Lien Obligation, and any other document or
instrument executed or delivered at any time in connection with any Second Lien Obligations,
including any intercreditor or joinder agreement among holders of Second Lien Obligations to the
extent such are effective at the relevant time, as each may be amended, restated, supplemented,
modified, renewed or extended from time to time in accordance with the provisions of this
Agreement.

     “Second Lien Mortgages” means a collective reference to each mortgage, deed of trust and any
other document or instrument under which any Lien on real property owned or leased by any Grantor
is granted to secure any Second Lien Obligations or under which rights or remedies with respect to
any such Liens are governed.

     “Second Lien Obligations” means all Obligations outstanding under the Second Lien Credit
Agreement and the other Second Lien Loan Documents. “Second Lien Obligations” shall include all
interest accrued or accruing (or which would, absent commencement of an Insolvency or Liquidation
Proceeding, accrue) after commencement of an Insolvency or Liquidation Proceeding in accordance
with the rate specified in the relevant Second Lien Loan Document whether or not the claim for such
interest is allowed as a claim in such Insolvency or Liquidation Proceeding.

     “Standstill Period” has the meaning set forth in Section 3.1(a)(1).

     “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of

7

 

which more than 50% of the total voting power of shares of stock or other ownership interests
entitled (without regard to the occurrence of any contingency) to vote in the election of the
Person or Persons (whether directors, managers, trustees or other Persons performing similar
functions) having the power to direct or cause the direction of the management and policies thereof
is at the time owned or controlled, directly or indirectly, by that Person or one or more of the
other Subsidiaries of that Person or a combination thereof.

     “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in
effect in any applicable jurisdiction.

     1.2 Terms Generally. The definitions of terms in this Agreement shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The
word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the
context requires otherwise:

     (a) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time
amended, restated, supplemented, modified, renewed or extended;

     (b) any reference herein to any Person shall be construed to include such Person’s permitted
successors and assigns;

     (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof;

     (d) all references herein to Sections shall be construed to refer to Sections of this
Agreement; and

     (e) the words “asset” and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

     SECTION 2. Lien Priorities.

     2.1 Relative Priorities. Notwithstanding the date, time, method, manner or order of
grant, attachment or perfection of any Liens securing the Second Lien Obligations granted on the
Collateral or of any Liens securing the First Lien Obligations granted on the Collateral and
notwithstanding any provision of the UCC, or any other applicable law or the Second Lien Loan
Documents or any defect or deficiencies in, or failure to perfect, the Liens securing
the First Lien Obligations or any other circumstance whatsoever, the Second Lien Collateral
Agent, on behalf of itself and the Second Lien Claimholders, hereby agrees that:

8

 

     (a) any Lien on the Collateral securing any First Lien Obligations now or hereafter held by or
on behalf of the First Lien Collateral Agent or any First Lien Claimholders or any agent or trustee
therefor, regardless of how acquired, whether by grant, possession, statute, operation of law,
subrogation or otherwise, shall be senior in all respects and prior to any Lien on the Collateral
securing any Second Lien Obligations; and

     (b) any Lien on the Collateral securing any Second Lien Obligations now or hereafter held by
or on behalf of the Second Lien Collateral Agent, any Second Lien Claimholders or any agent or
trustee therefor regardless of how acquired, whether by grant, possession, statute, operation of
law, subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on the
Collateral securing any First Lien Obligations. All Liens on the Collateral securing any First
Lien Obligations shall be and remain senior in all respects and prior to all Liens on the
Collateral securing any Second Lien Obligations for all purposes, whether or not such Liens
securing any First Lien Obligations are subordinated to any Lien securing any other obligation of
the Company, any other Grantor or any other Person.

     2.2 Prohibition on Contesting Liens. Each of the Second Lien Collateral Agent, for itself
and on behalf of each Second Lien Claimholder, and the First Lien Collateral Agent, for itself and
on behalf of each First Lien Claimholder, agrees that it will not (and hereby waives any right to)
contest or support any other Person in contesting, in any proceeding (including any Insolvency or
Liquidation Proceeding), the perfection, priority, validity or enforceability of a Lien held by or
on behalf of any of the First Lien Claimholders in the First Lien Collateral or by or on behalf of
any of the Second Lien Claimholders in the Second Lien Collateral, as the case may be, or the
provisions of this Agreement; provided that nothing in this Agreement shall be construed to
prevent or impair the rights of the First Lien Collateral Agent or any First Lien Claimholder to
enforce this Agreement, including the provisions of this Agreement relating to the priority of the
Liens securing the First Lien Obligations as provided in Sections 2.1 and 3.1.

     2.3 No New Liens. So long as the Discharge of First Lien Obligations has not occurred, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or against the Company or any
other Grantor, the parties hereto agree that the Company shall not, and shall not permit any other
Grantor to:

     (a) grant or permit any additional Liens on any asset or property to secure any Second Lien
Obligation unless it has granted or concurrently grants a Lien on such asset or property to secure
the First Lien Obligations; or

     (b) grant or permit any additional Liens on any asset or property to secure any First Lien
Obligations unless it has granted or concurrently grants a Lien on such asset or property to secure
the Second Lien Obligations.

To the extent that the foregoing provisions are not complied with for any reason, without limiting
any other rights and remedies available to the First Lien Collateral Agent and/or the First Lien
Claimholders, the Second Lien Collateral Agent, on behalf of Second Lien Claimholders, agrees that
any amounts received by or distributed to any of them pursuant

9

 

to or as a result of Liens granted
in contravention of this Section 2.3 shall be subject to Section 4.2.

     2.4 Similar Liens and Agreements. The parties hereto agree that it is their intention
that the First Lien Collateral and the Second Lien Collateral be identical. In furtherance of the
foregoing and of Section 8.9, the parties hereto agree, subject to the other provisions of this
Agreement:

     (a) upon request by the First Lien Collateral Agent or the Second Lien Collateral Agent, to
cooperate in good faith (and to direct their counsel to cooperate in good faith) from time to time
in order to determine the specific items included in the First Lien Collateral and the Second Lien
Collateral and the steps taken to perfect their respective Liens thereon and the identity of the
respective parties obligated under the First Lien Loan Documents and the Second Lien Loan
Documents; and

     (b) that the documents and agreements creating or evidencing the First Lien Collateral and the
Second Lien Collateral and guarantees for the First Lien Obligations and the Second Lien
Obligations, subject to Section 5.3(d), shall be in all material respects the same forms of
documents other than with respect to the first lien and the second lien nature of the Obligations
thereunder.

     SECTION 3. Enforcement.

     3.1 Exercise of Remedies.

     (a) Until the Discharge of First Lien Obligations has occurred, whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against the Company or any other Grantor, the
Second Lien Collateral Agent and the Second Lien Claimholders:

     (1) will not exercise or seek to exercise any rights or remedies with respect to any
Collateral (including the exercise of any right of setoff or any right under any lockbox
agreement, account control agreement, landlord waiver or bailee’s letter or similar
agreement or arrangement to which the Second Lien Collateral Agent or any Second Lien
Claimholder is a party) or institute any action or proceeding with respect to such rights
or remedies (including any action of foreclosure); provided, however, that
the Second Lien Collateral Agent may
exercise any or all such rights or remedies after the passage of a period of at least
180 days has elapsed since the later of: (i) the date on which the Second Lien Collateral
Agent declares the existence of any Event of Default under any Second Lien Loan Documents
and demands the repayment of all the principal amount of any Second Lien Obligations; and
(ii) the date on which the First Lien Collateral Agent receives notice from the Second Lien
Collateral Agent of such declarations of an Event of Default, (the “Standstill Period”);
provided, further, however, that notwithstanding anything herein to
the contrary, in no event shall the Second Lien Collateral Agent or any Second Lien
Claimholder exercise any rights or remedies with respect to the Collateral if,
notwithstanding the expiration of the Standstill

10

 

Period, the First Lien Collateral Agent or
First Lien Claimholders shall have commenced and be diligently pursuing the exercise of
their rights or remedies with respect to all or any material portion of the Collateral
(prompt notice of such exercise to be given to the Second Lien Collateral Agent);

     (2) will not contest, protest or object to any foreclosure proceeding or action
brought by the First Lien Collateral Agent or any First Lien Claimholder or any other
exercise by the First Lien Collateral Agent or any First Lien Claimholder of any rights and
remedies relating to the Collateral under the First Lien Loan Documents or otherwise; and

     (3) subject to their rights under clause (a)(1) above and except as may be permitted
in Section 3.1(c), will not object to the forbearance by the First Lien Collateral Agent or
the First Lien Claimholders from bringing or pursuing any foreclosure proceeding or action
or any other exercise of any rights or remedies relating to the Collateral;

provided, that, in the case of (1), (2) and (3) above, the Liens granted to
secure the Second Lien Obligations of the Second Lien Claimholders shall attach to any
proceeds resulting from actions taken by the First Lien Collateral Agent or any First Lien
Claimholder in accordance with this Agreement after application of such proceeds to the
extent necessary to meet the requirements of a Discharge of First Obligations.

     (b) Until the Discharge of First Lien Obligations has occurred, whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against the Company or any other Grantor,
subject to Section 3.1(a)(1), the First Lien Collateral Agent and the First Lien Claimholders shall
have the right to enforce rights, exercise remedies (including set-off and the right to credit bid
their debt) and make determinations regarding the release, disposition, or restrictions with
respect to the Collateral without any consultation with or the consent of the Second Lien
Collateral Agent or any Second Lien Claimholder; provided, that the Lien securing the
Second Lien Obligations shall remain on the proceeds of such Collateral released or disposed of
subject to the relative priorities described in Section 2. In exercising rights and remedies with
respect to the Collateral, the First Lien Collateral Agent and the First Lien Claimholders may
enforce the provisions of the First Lien Loan Documents and exercise remedies thereunder, all in
such order and in such manner as they may determine in the exercise of their sole discretion. Such
exercise
and enforcement shall include the rights of an agent appointed by them to sell or otherwise
dispose of Collateral upon foreclosure, to incur expenses in connection with such sale or
disposition, and to exercise all the rights and remedies of a secured creditor under the UCC and of
a secured creditor under Bankruptcy Laws of any applicable jurisdiction.

     (c) Notwithstanding the foregoing, the Second Lien Collateral Agent and any Second Lien
Claimholder may:

11

 

     (1) file a claim or statement of interest with respect to the Second Lien Obligations;
provided that an Insolvency or Liquidation Proceeding has been commenced by or
against the Company or any other Grantor;

     (2) take any action (not adverse to the priority status of the Liens on the Collateral
securing the First Lien Obligations, or the rights of any First Lien Collateral Agent or
the First Lien Claimholders to exercise remedies in respect thereof) in order to create,
perfect, preserve or protect its Lien on the Collateral;

     (3) file any necessary responsive or defensive pleadings in opposition to any motion,
claim, adversary proceeding or other pleading made by any person objecting to or otherwise
seeking the disallowance of the claims of the Second Lien Claimholders, including any
claims secured by the Collateral, if any, in each case in accordance with the terms of this
Agreement;

     (4) file any pleadings, objections, motions or agreements which assert rights or
interests available to unsecured creditors of the Grantors arising under either any
Insolvency or Liquidation Proceeding or applicable non-bankruptcy law, in each case not
inconsistent with the terms of this Agreement;

     (5) vote on any plan of reorganization, file any proof of claim, make other filings
and make any arguments and motions that are, in each case, in accordance with the terms of
this Agreement, with respect to the Second Lien Obligations and the Collateral; and

     (6) exercise any of its rights or remedies with respect to the Collateral after the
termination of the Standstill Period to the extent permitted by Section 3.1(a)(1).

     The Second Lien Collateral Agent, on behalf of itself and the Second Lien Claimholders, agrees
that it will not take or receive any Collateral or any proceeds of Collateral in connection with
the exercise of any right or remedy (including set-off) with respect to any Collateral in its
capacity as a creditor in violation of this Agreement. Without limiting the generality of the
foregoing, unless and until the Discharge of First Lien Obligations has occurred, except as
expressly provided in Sections 3.1(a), 6.3(b) and this Section 3.1(c), the sole right of the Second
Lien Collateral Agent and the Second Lien Claimholders with respect to the Collateral is to hold a
Lien on the Collateral pursuant to the Second Lien Collateral Documents for the period and to the
extent granted therein and to receive a share of the proceeds thereof, if any, after the Discharge
of First Lien Obligations has occurred.

     (d) Subject to Sections 3.1(a) and (c) and Section 6.3(b):

     (1) the Second Lien Collateral Agent, for itself and on behalf of the Second Lien
Claimholders, agrees that the Second Lien Collateral Agent and the Second Lien Claimholders
will not take any action that would hinder any exercise of remedies under the First Lien
Loan Documents or is otherwise prohibited

12

 

hereunder, including any sale, lease, exchange,
transfer or other disposition of the Collateral, whether by foreclosure or otherwise;

     (2) the Second Lien Collateral Agent, for itself and on behalf of the Second Lien
Claimholders, hereby waives any and all rights it or the Second Lien Claimholders may have
as a junior lien creditor or otherwise to object to the manner in which the First Lien
Collateral Agent or the First Lien Claimholders seek to enforce or collect the First Lien
Obligations or the Liens securing the First Lien Obligations granted in any of the First
Lien Collateral undertaken in accordance with this Agreement, regardless of whether any
action or failure to act by or on behalf of the First Lien Collateral Agent or First Lien
Claimholders is adverse to the interest of the Second Lien Claimholders; and

     (3) the Second Lien Collateral Agent hereby acknowledges and agrees that no covenant,
agreement or restriction contained in the Second Lien Collateral Documents or any other
Second Lien Document (other than this Agreement) shall be deemed to restrict in any way the
rights and remedies of the First Lien Collateral Agent or the First Lien Claimholders with
respect to the Collateral as set forth in this Agreement and the First Lien Loan Documents.

     (e) Except as otherwise specifically set forth in Sections 3.1(a) and (d), the Second Lien
Collateral Agent and the Second Lien Claimholders may exercise rights and remedies as unsecured
creditors against the Company or any other Grantor that has guaranteed or granted Liens to secure
the Second Lien Obligations in accordance with the terms of the Second Lien Loan Documents and
applicable law; provided that in the event that any Second Lien Claimholder becomes a
judgment Lien creditor in respect of Collateral as a result of its enforcement of its rights as an
unsecured creditor with respect to the Second Lien Obligations, such judgment Lien shall be subject
to the terms of this Agreement for all purposes (including in relation to the First Lien
Obligations) as the other Liens securing the Second Lien Obligations are subject to this Agreement.

     (f) Nothing in this Agreement shall prohibit the receipt by the Second Lien Collateral Agent
or any Second Lien Claimholders of the required payments of interest, principal and other amounts
owed in respect of the Second Lien Obligations so long as such receipt is not the direct or
indirect result of the exercise by the Second Lien Collateral Agent or any Second Lien Claimholders
of rights or remedies as a secured creditor (including set-off) or enforcement in contravention of
this Agreement of any Lien held by any of them. Nothing in this Agreement impairs or otherwise
adversely affects any rights or remedies the First Lien Collateral Agent or the First Lien
Claimholders may have with respect to the First Lien Collateral.

     SECTION 4. Payments.

     4.1 Application of Proceeds. So long as the Discharge of First Lien Obligations has not
occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced by or against
the Company or any other Grantor, Collateral or proceeds thereof received in connection with the
sale or other disposition of, or collection on, such

13

 

Collateral upon the exercise of remedies by
the First Lien Collateral Agent or First Lien Claimholders, shall be applied by the First Lien
Collateral Agent to the First Lien Obligations in such order as specified in the relevant First
Lien Loan Documents. Upon the Discharge of First Lien Obligations, the First Lien Collateral Agent
shall deliver to the Second Lien Collateral Agent any Collateral and proceeds of Collateral held by
it in the same form as received, with any necessary endorsements or as a court of competent
jurisdiction may otherwise direct to be applied by the Second Lien Collateral Agent to the Second
Lien Obligations in such order as specified in the Second Lien Collateral Documents.

     4.2 Payments Over in Violation of Agreement. So long as the Discharge of First Lien
Obligations has not occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against the Company or any other Grantor, any Collateral or proceeds thereof
(including assets or proceeds subject to Liens referred to in the final sentence of Section 2.3)
received by the Second Lien Collateral Agent or any Second Lien Claimholders in connection with the
exercise of any right or remedy (including set-off) relating to the Collateral in contravention of
this Agreement shall be segregated and held in trust and forthwith paid over to the First Lien
Collateral Agent for the benefit of the First Lien Claimholders in the same form as received, with
any necessary endorsements or as a court of competent jurisdiction may otherwise direct. The First
Lien Collateral Agent is hereby authorized to make any such endorsements as agent for the Second
Lien Collateral Agent or any such Second Lien Claimholders. This authorization is coupled with an
interest and is irrevocable until the Discharge of First Lien Obligations.

     SECTION 5. Other Agreements.

     5.1 Releases.

     (a) If in connection with the exercise of the First Lien Collateral Agent’s remedies in
respect of the Collateral provided for in Section 3.1, the First Lien Collateral Agent, for itself
or on behalf of any of the First Lien Claimholders, releases any of its Liens on any part of the
Collateral or releases any Grantor from its obligations under its guaranty of the First Lien
Obligations in connection with the sale of the stock, or substantially all the assets, of such
Grantor, then the Liens, if any, of the Second Lien Collateral Agent, for itself or for the benefit
of the Second Lien Claimholders, on such Collateral, and the obligations of such Grantor under its
guaranty of the Second Lien Obligations, shall be automatically, unconditionally and simultaneously
released. The Second Lien Collateral
Agent, for itself or on behalf of any such Second Lien Claimholders, promptly shall execute
and deliver to the First Lien Collateral Agent or such Grantor such termination statements,
releases and other documents as the First Lien Collateral Agent or such Grantor may request to
effectively confirm such release.

     (b) If in connection with any sale, lease, exchange, transfer or other disposition of any
Collateral (collectively, a “Disposition”) permitted under the terms of both the First Lien Loan
Documents and the Second Lien Loan Documents (other than in connection with the exercise of the
First Lien Collateral Agent’s remedies in respect of the Collateral provided for in Section 3.1),
the First Lien Collateral Agent, for itself or on

14

 

behalf of any of the First Lien Claimholders,
releases any of its Liens on any part of the Collateral, or releases any Grantor from its
obligations under its guaranty of the First Lien Obligations in connection with the sale of the
stock, or substantially all the assets, of such Grantor, in each case other than (A) in connection
with the Discharge of First Lien Obligations and (B) after the occurrence and during the
continuance of any Event of Default under the Second Lien Credit Agreement, then the Liens, if any,
of the Second Lien Collateral Agent, for itself or for the benefit of the Second Lien Claimholders,
on such Collateral, and the obligations of such Grantor under its guaranty of the Second Lien
Obligations, shall be automatically, unconditionally and simultaneously released. The Second Lien
Collateral Agent, for itself or on behalf of any such Second Lien Claimholders, promptly shall
execute and deliver to the First Lien Collateral Agent or such Grantor such termination statements,
releases and other documents as the First Lien Collateral Agent or such Grantor may request to
effectively confirm such release.

     (c) Until the Discharge of First Lien Obligations occurs, the Second Lien Collateral Agent,
for itself and on behalf of the Second Lien Claimholders, hereby irrevocably constitutes and
appoints the First Lien Collateral Agent and any officer or agent of the First Lien Collateral
Agent, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of the Second Lien Collateral Agent or such
holder or in the First Lien Collateral Agent’s own name, from time to time in the First Lien
Collateral Agent’s discretion, for the purpose of carrying out the terms of this Section 5.1, to
take any and all appropriate action and to execute any and all documents and instruments which may
be necessary to accomplish the purposes of this Section 5.1, including any endorsements or other
instruments of transfer or release.

     (d) Until the Discharge of First Lien Obligations occurs, to the extent that the First Lien
Collateral Agent or the First Lien Claimholders (i) have released any Lien on Collateral or any
Grantor from its obligation under its guaranty and any such Liens or guaranty are later reinstated
or (ii) obtain any new liens or additional guarantees from any Grantor, then the Second Lien
Collateral Agent, for itself and for the Second Lien Claimholders, shall be granted a Lien on any
such Collateral, subject to the lien subordination provisions of this Agreement, and an additional
guaranty, as the case may be.

     (e) In the event that the principal amount of funded First Lien Obligations plus the
aggregate face amount of letters of credit, if any, issued under the First Lien Credit Agreement
and not reimbursed plus the aggregate principal amount of
unfunded commitments under the First Lien Credit Agreement (collectively, the “First Lien
Obligations Amount”), at any date of determination no longer constitute at least 15% of the sum of
(i) the First Lien Obligations Amount and (ii) the principal amount of Second Lien Obligations
(collectively, the “Second Lien Obligations Amount”), then any agreement provided for in Section
5.1(a) and (b) above (except for releases given in connection with a Disposition permitted under
the First Lien Loan Documents and the Second Lien Loan Documents) shall require the consent of
First Lien Claimholders and Second Lien Claimholders representing in the aggregate more than 50% of
the sum of (i) the First Lien Obligations Amount and (ii) the Second Lien Obligations Amount.

15

 

     5.2 Insurance. Unless and until the Discharge of First Lien Obligations has occurred,
subject to the terms of, and the rights of the Grantors under, the First Lien Loan Documents, the
First Lien Collateral Agent and the First Lien Claimholders shall have the sole and exclusive right
to adjust settlement for any insurance policy covering the Collateral in the event of any loss
thereunder and to approve any award granted in any condemnation or similar proceeding (or any deed
in lieu of condemnation) affecting the Collateral. Unless and until the Discharge of First Lien
Obligations has occurred, and subject to the rights of the Grantors under the First Lien Loan
Documents, all proceeds of any such policy and any such award (or any payments with respect to a
deed in lieu of condemnation) if in respect to the Collateral and to the extent required by the
First Lien Loan Documents shall be paid to the First Lien Collateral Agent for the benefit of the
First Lien Claimholders pursuant to the terms of the First Lien Loan Documents (including, without
limitation, for purposes of cash collateralization of letters of credit) and thereafter, to the
extent no First Lien Obligations are outstanding, and subject to the rights of the Grantors under
the Second Lien Collateral Documents, to the Second Lien Collateral Agent for the benefit of the
Second Lien Claimholders to the extent required under the Second Lien Collateral Documents and
then, to the extent no Second Lien Obligations are outstanding, to the owner of the subject
property, such other Person as may be entitled thereto or as a court of competent jurisdiction may
otherwise direct. Until the Discharge of First Lien Obligations has occurred, if the Second Lien
Collateral Agent or any Second Lien Claimholders shall, at any time, receive any proceeds of any
such insurance policy or any such award or payment in contravention of this Agreement, it shall
segregate and hold in trust and forthwith pay such proceeds over to the First Lien Collateral Agent
in accordance with the terms of Section 4.2.

     5.3 Amendments to First Lien Loan Documents and Second Lien Loan Documents. (a) The
First Lien Loan Documents may be amended, supplemented or otherwise modified in accordance with
their terms and the First Lien Credit Agreement may be Refinanced, in each case, without notice to,
or the consent of the Second Lien Collateral Agent or the Second Lien Claimholders, all without
affecting the lien subordination or other provisions of this Agreement; provided,
however, that the holders of such Refinancing debt bind themselves in a writing addressed
to the Second Lien Collateral Agent and the Second Lien Claimholders to the terms of this Agreement
and any such amendment, supplement, modification or Refinancing shall not, without the consent
of the Second Lien Collateral Agent:

     (1) increase the sum of (without duplication) (A) the then outstanding aggregate
principal amount of the First Lien Credit Agreement and (B) the aggregate amount of
Revolving Commitment under the First Lien Credit Agreement and (C) the aggregate face
amount of any letters of credit issued under the First Lien Credit Agreement and not
reimbursed and (D) the then outstanding aggregate principal amount of First Lien
Obligations and the aggregate face amount of any letters of credit issued and not
reimbursed constituting First Lien Obligations in excess of the Cap Amount;

     (2) increase the “Applicable Margin” or similar component of the interest rate or
yield provisions applicable to the First Lien Obligations by more

16

 

than 2.5% per annum
(excluding increases (A) resulting from application of the pricing grid set forth in the
First Lien Credit Agreement as in effect on the date hereof or (B) resulting from the
accrual of interest at the default rate);

     (3) extend the scheduled maturity of the First Lien Credit Agreement or any
Refinancing thereof beyond the scheduled maturity of the Second Lien Credit Agreement or
any Refinancing thereof; or

     (4) contravene the provisions of this Agreement.

     (b) Without the prior written consent of the First Lien Collateral Agent, no Second Lien Loan
Document may be Refinanced, amended, supplemented or otherwise modified or entered into to the
extent such Refinancing, amendment, supplement or modification, or the terms of any new Second Lien
Loan Document, would:

     (1) increase the principal amount of the Second Lien Credit Agreement in excess of the
amount permitted under the First Lien Credit Agreement;

     (2) increase the “Applicable Margin” or similar component of the interest rate or
yield provisions applicable to the Second Lien Obligations by more than 2.5% per annum
(excluding increases resulting from the accrual of interest at the default rate);

     (3) change any default or Event of Default thereunder in a manner adverse to
the loan parties thereunder (other than to eliminate any such Event of Default or
increase any grace period related thereto or otherwise make such Event of Default
or condition less restrictive or burdensome on the Company);

     (3) change (to earlier dates) any dates upon which payments of principal or
interest are due thereon;

     (4) change the prepayment provisions thereof;

     (5) increase materially the obligations of the obligor thereunder or to
confer any additional material rights on the lenders under the Second Lien Credit
Agreement (or a representative on their behalf) which would be adverse to any
Credit Party or any First Lien Lenders; or

     (6) contravene the provisions of this Agreement.

     The Second Lien Credit Agreement may be Refinanced to the extent the terms and conditions of
such Refinancing debt meet the requirements of this Section 5.3(b), the average life to maturity
thereof is greater than or equal to that of the Second Lien Credit Agreement and the holders of
such Refinancing debt bind themselves in a writing addressed to the First Lien Collateral Agent and
the First Lien Claimholders to the terms of this Agreement.

17

 

     (c) The Company agrees that each Second Lien Collateral Document shall include the following
language (or language to similar effect approved by the First Lien Collateral Agent):

“Notwithstanding anything herein to the contrary, the lien and security interest
granted to the Second Lien Collateral Agent pursuant to this Agreement and the
exercise of any right or remedy by the Second Lien Collateral Agent hereunder are
subject to the provisions of the Intercreditor Agreement, dated as of December 5
2005 (as amended, restated, supplemented or otherwise modified from time to time,
the “Intercreditor Agreement”), among Day International, Inc., Goldman Sachs Credit
Partners L.P., as First Lien Collateral Agent and The Bank of New York, 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.”

In addition, the Company agrees that each Second Lien Mortgage covering any Collateral shall
contain such other language as the First Lien Collateral Agent may reasonably request to reflect
the subordination of such Second Lien Mortgage to the First Lien Collateral Document covering such
Collateral.

     (d) In the event any First Lien Collateral Agent or the First Lien Claimholders and the
relevant Grantor enter into any amendment, waiver or consent in respect of any of the First Lien
Collateral Documents for the purpose of adding to, or deleting from, or waiving or consenting to
any departures from any provisions of, any First Lien Collateral Document or changing in any manner
the rights of the First Lien Collateral Agent, such First Lien Claimholders, the Company or any
other Grantor thereunder, then such amendment, waiver or consent shall apply automatically to any
comparable provision of the Comparable Second Lien Collateral Document without the consent of the
Second Lien Collateral Agent or the Second Lien Claimholders and without any action by the Second
Lien Collateral Agent, the Company or any other Grantor, provided, that:

     (1) no such amendment, waiver or consent shall have the effect of:

     (A) removing or releasing assets subject to the Lien of the Second Lien
Collateral Documents, except to the extent that a release of such Lien is permitted
or required by Section 5.1 of this Agreement and provided that there is a
corresponding release of the Liens securing the First Lien Obligations;

     (B) imposing duties on the Second Lien Collateral Agent without its consent;

     (C) permitting other Liens on the Collateral not permitted under the terms of
the Second Lien Loan Documents or Section 6; or

18

 

     (D) being prejudicial to the interests of the Second Lien Claimholders to a
greater extent than the First Lien Claimholders; and

     (2) notice of such amendment, waiver or consent shall have been given to the Second
Lien Collateral Agent within ten (10) Business Days after the effective date of such
amendment, waiver or consent.

     5.4
Bailee for Perfection. (a) The First Lien Collateral Agent agrees to hold that
part of the Collateral that is in its possession or control (or in the possession or control of its
agents or bailees) to the extent that possession or control thereof is taken to perfect a Lien
thereon under the UCC (such Collateral being the “Pledged Collateral”) as collateral agent for the
First Lien Claimholders and as bailee for the Second Lien Collateral Agent (such bailment being
intended, among other things, to satisfy the requirements of Sections 8-301(a)(2) and 9-313(c) of
the UCC) and any assignee solely for the purpose of perfecting the security interest granted under
the First Lien Loan Documents and the Second Lien Loan Documents, respectively, subject to the
terms and conditions of this Section 5.4.

     (b) The First Lien Collateral Agent shall have no obligation whatsoever to the First Lien
Claimholders, the Second Lien Collateral Agent or any Second Lien Claimholder to ensure that the
Pledged Collateral is genuine or owned by any of the Grantors or to preserve rights or benefits of
any Person except as expressly set forth in this Section 5.4. The duties or responsibilities of
the First Lien Collateral Agent under this Section 5.4 shall be limited solely to holding the
Pledged Collateral as bailee in accordance with this Section 5.4 and delivering the Pledged
Collateral upon a Discharge of First Lien Obligations as provided in paragraph (d) below.

     (c) The First Lien Collateral Agent acting pursuant to this Section 5.4 shall not have by
reason of the First Lien Collateral Documents, the Second Lien Collateral Documents, this Agreement
or any other document a fiduciary relationship in respect of the First Lien Claimholders, the
Second Lien Collateral Agent or any Second Lien Claimholder.

     (d) Upon the Discharge of First Lien Obligations under the First Lien Loan Documents to which
the First Lien Collateral Agent is a party, the First Lien Collateral Agent shall deliver the
remaining Pledged Collateral (if any) together with any necessary endorsements, first, to
the Second Lien Collateral Agent to the extent Second Lien Obligations remain outstanding, and
second, to the Company to the extent no First Lien Obligations or Second Lien Obligations
remain outstanding (in each case, so as to allow such Person to obtain possession or control of
such Pledged Collateral). The First Lien Collateral Agent further agrees to take all other action
reasonably requested by the Second Lien Collateral Agent in connection with the Second Lien
Collateral Agent obtaining a first-priority interest in the Collateral or as a court of competent
jurisdiction may otherwise direct.

     (e) Subject to the terms of this Agreement, so long as the Discharge of First Lien
Obligations has not occurred, the First Lien Collateral Agent shall be entitled to deal

19

 

with the
Pledged Collateral or Collateral within its “control” in accordance with the terms of this
Agreement and other First Lien Loan Documents as if the Liens of the Second Lien Collateral Agent
and Second Lien Claimholders did not exist.

     5.5 When Discharge of First Lien Obligations Deemed to Not Have Occurred. If concurrently
with the Discharge of First Lien Obligations, the Company thereafter enters into any Refinancing of
any First Lien Loan Document evidencing a First Lien Obligation which Refinancing is permitted by
the Second Lien Loan Documents, then such Discharge of First Lien Obligations shall automatically
be deemed not to have occurred for all purposes of this Agreement (other than with respect to any
actions taken as a result of the occurrence of such first Discharge of First Lien Obligations),
and, from and after the date on which the New First Lien Debt Notice is delivered to the Second
Lien Collateral Agent in accordance with the next sentence, the obligations under such Refinancing
of the First Lien Loan Document shall automatically be treated as First Lien Obligations for all
purposes of this Agreement, including for purposes of the Lien priorities and rights in respect of
Collateral set forth herein, and the First Lien Collateral Agent under such First Lien Loan
Documents shall be the First Lien Collateral Agent for all purposes of this Agreement. Upon
receipt of a notice (the “New First Lien Debt Notice”) stating that the Company has entered into a
new First Lien Loan Document (which notice shall include the identity of the new first lien
collateral agent, such agent, the “New Agent”), the Second Lien Collateral Agent shall promptly (a)
enter into such documents and agreements (including amendments or supplements to this Agreement) as
the Company or such New Agent shall reasonably request in order to provide to the New Agent the
rights contemplated hereby, in each case consistent in all material respects with the terms of this
Agreement and (b) deliver to the New Agent any Pledged Collateral held by it together with any
necessary endorsements (or otherwise allow the New Agent to obtain control of such Pledged
Collateral). The New Agent shall agree in a writing addressed to the Second Lien Collateral Agent
and the Second Lien Claimholders to be bound by the terms of this Agreement. If the new First Lien
Obligations under the new First Lien Loan Documents are secured by assets of the Grantors
constituting Collateral that do not also secure the Second Lien Obligations, then the Second Lien
Obligations shall be secured at such time
by a second priority Lien on such assets to the same extent provided in the Second Lien
Collateral Documents and this Agreement.

     5.6 Purchase Right. Without prejudice to the enforcement of the First Lien Claimholders
remedies, the First Lien Claimholders agree at any time following an acceleration of the First Lien
Obligations in accordance with the terms of the First Lien Credit Agreement, the First Lien
Claimholders will offer the Second Lien Claimholders the option to purchase the entire aggregate
amount of outstanding First Lien Obligations (including unfunded commitments under the First Lien
Credit Agreement) at par plus accrued interest (without regard to any prepayment penalty or
premium), without warranty or representation or recourse, on a pro rata basis across First Lien
Claimholders. The Second Lien Claimholders shall irrevocably accept or reject such offer within
ten (10) Business Days of the receipt thereof and the parties shall endeavor to close promptly
thereafter. If the Second Lien Claimholders accept such offer, it shall be exercised pursuant to
documentation mutually acceptable to each of the First Lien Collateral Agent and the Second Lien
Collateral Agent. If the Second Lien Claimholders reject such offer

20

 

(or do not so irrevocably
accept such offer within the required timeframe), the First Lien Claimholders shall have no further
obligations pursuant to this Section 5.6 and may take any further actions in their sole discretion
in accordance with the First Lien Loan Documents and this Agreement.

     SECTION 6. Insolvency or Liquidation Proceedings.

     6.1 Finance and Sale Issues. Until the Discharge of First Lien Obligations has occurred,
if the Company or any other Grantor shall be subject to any Insolvency or Liquidation Proceeding
and the First Lien Collateral Agent shall desire to permit the use of “Cash Collateral” (as such
term is defined in Section 363(a) of the Bankruptcy Code), on which the First Lien Collateral Agent
or any other creditor has a Lien or to permit the Company or any other Grantor to obtain financing,
whether from the First Lien Claimholders or any other Person under Section 364 of the Bankruptcy
Code or any similar Bankruptcy Law (“DIP Financing”) then the Second Lien Collateral Agent, on
behalf of itself and the Second Lien Claimholders, agrees that it will raise no objection to such
Cash Collateral use or DIP Financing; provided that the Second Lien Collateral Agent and
the Second Lien Claimholders retain the right to object to (i) any ancillary agreements or
arrangements regarding the Cash Collateral use or the DIP Financing that are materially prejudicial
to their interests, (ii) the DIP Financing to the extent that it compels the Company to seek
confirmation of a specific plan of reorganization for which all or substantially all of the
material terms are set forth in the DIP Financing documentation or a related document or (iii) the
DIP Financing documentation or Cash Collateral order to the extent that it expressly requires the
liquidation of the Collateral prior to a default under the DIP Financing documentation or Cash
Collateral order. To the extent the Liens securing the First Lien Obligations are subordinated to
or pari passu with such DIP Financing and the Second Lien Collateral Agent has not raised any
objections by reasons of any of the clauses
(i) through (iii) above, the Second Lien Collateral Agent will subordinate its Liens in the
Collateral to the Liens securing such DIP Financing (and all Obligations relating thereto) and will
not request adequate protection or any other relief in connection therewith (except, as expressly
agreed by the First Lien Collateral Agent or to the extent permitted by Section 6.3).

     6.2 Relief from the Automatic Stay. Until the Discharge of First Lien Obligations has
occurred, the Second Lien Collateral Agent, on behalf of itself and the Second Lien Claimholders,
agrees that none of them shall seek (or support any other Person seeking) relief from the automatic
stay or any other stay in any Insolvency or Liquidation Proceeding in respect of the Collateral,
without the prior written consent of the First Lien Collateral Agent, unless a motion for adequate
protection permitted under Section 6.3 has been denied by the Bankruptcy Court.

     6.3 Adequate Protection.

     (a) The Second Lien Collateral Agent, on behalf of itself and the Second Lien Claimholders,
agrees that none of them shall contest (or support any other Person contesting):

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     (1) any request by the First Lien Collateral Agent or the First Lien Claimholders for
adequate protection; or

     (2) any objection by the First Lien Collateral Agent or the First Lien Claimholders to
any motion, relief, action or proceeding based on the First Lien Collateral Agent or the
First Lien Claimholders claiming a lack of adequate protection.

     (b) Notwithstanding the foregoing provisions in this Section 6.3, in any Insolvency or
Liquidation Proceeding:

     (1) if the First Lien Claimholders (or any subset thereof) are granted adequate
protection in the form of additional collateral in connection with any Cash Collateral use
or DIP Financing, then the Second Lien Collateral Agent, on behalf of itself or any of the
Second Lien Claimholders, may seek or request adequate protection in the form of a Lien on
such additional collateral, which Lien will be subordinated to the Liens securing the First
Lien Obligations and such Cash Collateral use or DIP Financing (and all Obligations
relating thereto) on the same basis as the other Liens securing the Second Lien Obligations
are so subordinated to the First Lien Obligations under this Agreement; and

     (2) in the event the Second Lien Collateral Agent, on behalf of itself or any of the
Second Lien Claimholders, seeks or requests adequate protection in respect of Second Lien
Obligations and such adequate protection is granted in the
form of additional collateral, then the Second Lien Collateral Agent, on behalf of
itself or any of the Second Lien Claimholders, agrees that the First Lien Collateral Agent
shall also be granted a senior Lien on such additional collateral as security for the First
Lien Obligations and for any Cash Collateral use or DIP Financing provided by the First
Lien Claimholders and that any Lien on such additional collateral securing the Second Lien
Obligations shall be subordinated to the Lien on such collateral securing the First Lien
Obligations and any such DIP Financing provided by the First Lien Claimholders (and all
Obligations relating thereto) and to any other Liens granted to the First Lien Claimholders
as adequate protection on the same basis as the other Liens securing the Second Lien
Obligations are so subordinated to such First Lien Obligations under this Agreement.
Except as otherwise expressly set forth in Section 6.1 or in connection with the exercise
of remedies with respect to the Collateral, nothing herein shall limit the rights of the
Second Lien Collateral Agent or the Second Lien Claimholders from seeking adequate
protection with respect to their rights in the Collateral in any Insolvency or Liquidation
Proceeding (including adequate protection in the form of a cash payment, periodic cash
payments or otherwise).

     6.4 No Waiver. Subject to Sections 3.1(a) and (d), nothing contained herein shall
prohibit or in any way limit the First Lien Collateral Agent or any First Lien Claimholder from
objecting in any Insolvency or Liquidation Proceeding or otherwise to any action taken by the
Second Lien Collateral Agent or any of the Second Lien Claimholders, including the seeking by the
Second Lien Collateral Agent or any Second Lien

22

 

Claimholders of adequate protection or the
asserting by the Second Lien Collateral Agent or any Second Lien Claimholders of any of its rights
and remedies under the Second Lien Loan Documents or otherwise.

     6.5 Avoidance Issues. If any First Lien Claimholder is required in any Insolvency or
Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of the Company or
any other Grantor any amount paid in respect of First Lien Obligations (a “Recovery”), then such
First Lien Claimholders shall be entitled to a reinstatement of First Lien Obligations with respect
to all such recovered amounts. If this Agreement shall have been terminated prior to such
Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination
shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties
hereto from such date of reinstatement.

     6.6 Reorganization Securities. If, in any Insolvency or Liquidation Proceeding, debt
obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor
are distributed pursuant to a plan of reorganization or similar dispositive restructuring plan,
both on account of First Lien Obligations and on account of Second Lien Obligations, then, to the
extent the debt obligations distributed on account of the First Lien Obligations and
on account of the Second Lien Obligations are secured by Liens upon the same property, the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt obligations.

     6.7 Post-Petition Interest. (a) Neither the Second Lien Collateral Agent nor any
Second Lien Claimholder shall oppose or seek to challenge any claim by the First Lien Collateral
Agent or any First Lien Claimholder for allowance in any Insolvency or Liquidation Proceeding of
First Lien Obligations consisting of post-petition interest, fees or expenses to the extent of the
value of any First Lien Claimholder’s Lien, without regard to the existence of the Lien of the
Second Lien Collateral Agent on behalf of the Second Lien Claimholders on the Collateral.

     (b) Neither the First Lien Collateral Agent nor any other First Lien Claimholder shall oppose
or seek to challenge any claim by the Second Lien Collateral Agent or any Second Lien Claimholder
for allowance in any Insolvency or Liquidation Proceeding of Second Lien Obligations consisting of
post-petition interest, fees or expenses to the extent of the value of the Lien of the Second Lien
Collateral Agent on behalf of the Second Lien Claimholders on the Collateral (after taking into
account the First Lien Collateral).

     6.8 Waiver. The Second Lien Collateral Agent, for itself and on behalf of the Second Lien
Claimholders, waives any claim it may hereafter have against any First Lien Claimholder arising out
of the election of any First Lien Claimholder of the application of Section 1111(b)(2) of the
Bankruptcy Code, and/or out of any cash collateral or financing arrangement or out of any grant of
a security interest in connection with the Collateral in any Insolvency or Liquidation Proceeding.

23

 

     6.9 Separate Grants of Security and Separate Classification. The Second Lien Collateral
Agent, for itself and on behalf of the Second Lien Claimholders, and the First Lien Collateral
Agent for itself and on behalf of the First Lien Claimholders, acknowledges and agrees that:

     (a) the grants of Liens pursuant to the First Lien Collateral Documents and the Second Lien
Collateral Documents constitute two separate and distinct grants of Liens; and (b) because of,
among other things, their differing rights in the Collateral, the Second Lien Obligations are
fundamentally different from the First Lien Obligations and must be separately classified in any
plan of reorganization proposed or adopted in an Insolvency or Liquidation Proceeding.

To further effectuate the intent of the parties as provided in the immediately preceding sentence,
if it is held that the claims of the First Lien Claimholders and the Second Lien Claimholders in
respect of the Collateral constitute only one secured claim (rather than
separate classes of senior and junior secured claims), then each of the parties hereto hereby
acknowledges and agrees that, subject to Sections 2.1 and 4.1, all distributions shall be made as
if there were separate classes of senior and junior secured claims against the Grantors in respect
of the Collateral (with the effect being that, to the extent that the aggregate value of the
Collateral is sufficient (for this purpose ignoring all claims held by the Second Lien
Claimholders), the First Lien Claimholders shall be entitled to receive, in addition to amounts
otherwise distributed to them in respect of principal, pre-petition interest and other claims, all
amounts owing in respect of post-petition interest, including any additional interest payable
pursuant to the First Lien Credit Agreement, arising from or related to a default, which is
disallowed as a claim in any Insolvency or Liquidation Proceeding) before any distribution is made
in respect of the claims held by the Second Lien Claimholders with respect to the Collateral, with
the Second Lien Collateral Agent, for itself and on behalf of the Second Lien Claimholders, hereby
acknowledging and agreeing to turn over to the First Lien Collateral Agent, for itself and on
behalf of the First Lien Claimholders, amounts otherwise received or receivable by them to the
extent necessary to effectuate the intent of this sentence (with respect to the payment of
post-petition interest), even if such turnover has the effect of reducing the claim or recovery of
the Second Lien Claimholders).

     SECTION 7. Reliance; Waivers; Etc.

     7.1 Reliance. Other than any reliance on the terms of this Agreement, the First Lien
Collateral Agent, on behalf of itself and the First Lien Claimholders under its First Lien Loan
Documents, acknowledges that it and such First Lien Claimholders have, independently and without
reliance on the Second Lien Collateral Agent or any Second Lien Claimholders, and based on
documents and information deemed by them appropriate, made their own credit analysis and decision
to enter into such First Lien Loan Documents and be bound by the terms of this Agreement and they
will continue to make their own credit decision in taking or not taking any action under the First
Lien Credit Agreement or this Agreement. The Second Lien Collateral Agent, on behalf of itself and
the Second Lien Claimholders, acknowledges that it and the Second Lien Claimholders have,
independently and without reliance on the First Lien Collateral Agent or any First Lien
Claimholder, and

24

 

based on documents and information deemed by them appropriate, made their own
credit analysis and decision to enter into each of the Second Lien Loan Documents and be bound by
the terms of this Agreement and they will continue to make their own credit decision in taking or
not taking any action under the Second Lien Loan Documents or this Agreement.

     7.2 No Warranties or Liability. The First Lien Collateral Agent, on behalf of itself and
the First Lien Claimholders under the First Lien Loan Documents, acknowledges and agrees that each
of the Second Lien Collateral Agent and the Second Lien Claimholders have made no express or
implied representation or warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Second Lien Loan Documents, the
ownership of any Collateral or the perfection or priority of any Liens
thereon. Except as otherwise provided herein, the Second Lien Claimholders will be entitled
to manage and supervise their respective loans and extensions of credit under the Second Lien Loan
Documents in accordance with law and as they may otherwise, in their sole discretion, deem
appropriate. Except as otherwise provided herein, the Second Lien Collateral Agent, on behalf of
itself and the Second Lien Obligations, acknowledges and agrees that the First Lien Collateral
Agent and the First Lien Claimholders have made no express or implied representation or warranty,
including with respect to the execution, validity, legality, completeness, collectibility or
enforceability of any of the First Lien Loan Documents, the ownership of any Collateral or the
perfection or priority of any Liens thereon. Except as otherwise provided herein, the First Lien
Claimholders will be entitled to manage and supervise their respective loans and extensions of
credit under their respective First Lien Loan Documents in accordance with law and as they may
otherwise, in their sole discretion, deem appropriate. The Second Lien Collateral Agent and the
Second Lien Claimholders shall have no duty to the First Lien Collateral Agent or any of the First
Lien Claimholders, and the First Lien Collateral Agent and the First Lien Claimholders shall have
no duty to the Second Lien Collateral Agent or any of the Second Lien Claimholders, to act or
refrain from acting in a manner which allows, or results in, the occurrence or continuance of an
event of default or default under any agreements with the Company or any other Grantor (including
the First Lien Loan Documents and the Second Lien Loan Documents), regardless of any knowledge
thereof which they may have or be charged with.

     7.3 No Waiver of Lien Priorities. (a) No right of the First Lien Claimholders, the
First Lien Collateral Agent or any of them to enforce any provision of this Agreement or any First
Lien Loan Document shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or any other Grantor or by any act or failure to act by any First
Lien Claimholder or the First Lien Collateral Agent, or by any noncompliance by any Person with the
terms, provisions and covenants of this Agreement, any of the First Lien Loan Documents or any of
the Second Lien Loan Documents, regardless of any knowledge thereof which the First Lien Collateral
Agent or the First Lien Claimholders, or any of them, may have or be otherwise charged with.

     (b) Without in any way limiting the generality of the foregoing paragraph (but subject to the
rights of the Company and the other Grantors under the First Lien Loan Documents and subject to the
provisions of Section 5.3(a)), the First Lien

25

 

Claimholders, the First Lien Collateral Agent and any
of them may, at any time and from time to time in accordance with the First Lien Loan Documents
and/or applicable law, without the consent of, or notice to, the Second Lien Collateral Agent or
any Second Lien Claimholders, without incurring any liabilities to the Second Lien Collateral Agent
or any Second Lien Claimholders and without impairing or releasing the Lien priorities and other
benefits provided in this Agreement (even if any right of subrogation or other right or remedy of
the Second Lien Collateral Agent or any Second Lien Claimholders is affected, impaired or
extinguished thereby) do any one or more of the following:

     (1) change the manner, place or terms of payment or change or extend the time of
payment of, or amend, renew, exchange, increase or alter, the terms of any of the First
Lien Obligations or any Lien on any First Lien Collateral or guaranty thereof or any
liability of the Company or any other Grantor, or any liability incurred directly or
indirectly in respect thereof (including any increase in or extension of the First Lien
Obligations, without any restriction as to the tenor or terms of any such increase or
extension) or otherwise amend, renew, exchange, extend, modify or supplement in any manner
any Liens held by the First Lien Collateral Agent or any of the First Lien Claimholders,
the First Lien Obligations or any of the First Lien Loan Documents; provided that
any such increase in the First Lien Obligations shall not increase the sum of the
Indebtedness constituting principal under the First Lien Credit Agreement and the face
amount of any letters of credit issued under the First Lien Credit Agreement and not
reimbursed to an amount in excess of the Cap Amount;

     (2) sell, exchange, release, surrender, realize upon, enforce or otherwise deal with
in any manner and in any order any part of the First Lien Collateral or any liability of
the Company or any other Grantor to the First Lien Claimholders or the First Lien
Collateral Agent, or any liability incurred directly or indirectly in respect thereof;

     (3) settle or compromise any First Lien Obligation or any other liability of the
Company or any other Grantor or any security therefor or any liability incurred directly or
indirectly in respect thereof and apply any sums by whomsoever paid and however realized to
any liability (including the First Lien Obligations) in any manner or order; and

     (4) exercise or delay in or refrain from exercising any right or remedy against the
Company or any security or any other Grantor or any other Person, elect any remedy and
otherwise deal freely with the Company, any other Grantor or any First Lien Collateral and
any security and any guarantor or any liability of the Company or any other Grantor to the
First Lien Claimholders or any liability incurred directly or indirectly in respect
thereof.

     (c) Except as otherwise provided herein, the Second Lien Collateral Agent, on behalf of itself
and the Second Lien Claimholders, also agrees that the First Lien Claimholders and the First Lien
Collateral Agent shall have no liability to the Second Lien Collateral Agent or any Second Lien
Claimholders, and the Second Lien Collateral Agent,

26

 

on behalf of itself and the Second Lien
Claimholders, hereby waives any claim against any First Lien Claimholder or the First Lien
Collateral Agent, arising out of any and all actions which the First Lien Claimholders or the First
Lien Collateral Agent may take or permit or omit to take with respect to:

     (1) the First Lien Loan Documents (other than this Agreement);

     (2) the collection of the First Lien Obligations; or

     (3) the foreclosure upon, or sale, liquidation or other disposition of, any First Lien
Collateral. The Second Lien Collateral Agent, on behalf of itself and the Second Lien
Claimholders, agrees that the First Lien Claimholders and the First Lien Collateral Agent
have no duty to them in respect of the maintenance or preservation of the First Lien
Collateral, the First Lien Obligations or otherwise.

     (d) Until the Discharge of First Lien Obligations, the Second Lien Collateral Agent, on behalf
of itself and the Second Lien Claimholders, agrees not to assert and hereby waives, to the fullest
extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim
the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be
available under applicable law with respect to the Collateral or any other similar rights a junior
secured creditor may have under applicable law.

     7.4 Obligations Unconditional. All rights, interests, agreements and obligations of the
First Lien Collateral Agent and the First Lien Claimholders and the Second Lien Collateral Agent
and the Second Lien Claimholders, respectively, hereunder shall remain in full force and effect
irrespective of:

     (a) any lack of validity or enforceability of any First Lien Loan Documents or any Second Lien
Loan Documents;

     (b) except as otherwise expressly set forth in this Agreement, any change in the time, manner
or place of payment of, or in any other terms of, all or any of the First Lien Obligations or
Second Lien Obligations, or any amendment or waiver or other modification, including any increase
in the amount thereof, whether by course of conduct or otherwise, of the terms of any First Lien
Loan Document or any Second Lien Loan Document;

     (c) except as otherwise expressly set forth in this Agreement, any exchange of any security
interest in any Collateral or any other collateral, or any amendment, waiver or other modification,
whether in writing or by course of conduct or otherwise, of all or any of the First Lien
Obligations or Second Lien Obligations or any guaranty thereof;

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

27

 

     (e) any other circumstances which otherwise might constitute a defense available to, or a
discharge of, the Company or any other Grantor in respect of the First Lien Collateral Agent, the
First Lien Obligations, any First Lien Claimholder, the Second Lien Collateral Agent, the Second
Lien Obligations or any Second Lien Claimholder in respect of this Agreement.

     SECTION 8. Miscellaneous.

     8.1 Conflicts. In the event of any conflict between the provisions of this Agreement and
the provisions of the First Lien Loan Documents or the Second Lien Loan Documents, the provisions
of this Agreement shall govern and control.

     8.2 Effectiveness; Continuing Nature of this Agreement; Severability. This Agreement
shall become effective when executed and delivered by the parties hereto. This is a continuing
agreement of lien subordination and the First Lien Claimholders may continue, at any time and
without notice to the Second Lien Collateral Agent or any Second Lien Claimholder subject to the
Second Lien Loan Documents, to extend credit and other financial accommodations and lend monies to
or for the benefit of the Company or any Grantor constituting First Lien Obligations in reliance
hereof. The Second Lien Collateral Agent, on behalf of itself and the Second Lien Claimholders,
hereby waives any right it may have under applicable law to revoke this Agreement or any of the
provisions of this Agreement. The terms of this Agreement shall survive, and shall continue in
full force and effect, in any Insolvency or Liquidation Proceeding. Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction. All references to
the Company or any other Grantor shall include the Company or such Grantor as debtor and
debtor-in-possession and any receiver or trustee for the Company or any other Grantor (as the case
may be) in any Insolvency or Liquidation Proceeding. This Agreement shall terminate and be of no
further force and effect:

     (a) with respect to the First Lien Collateral Agent, the First Lien Claimholders and the First
Lien Obligations, the date of Discharge of First Lien Obligations, subject to the rights of the
First Lien Claimholders under Section 6.5; and

     (b) with respect to the Second Lien Collateral Agent, the Second Lien Claimholders and the
Second Lien Obligations, upon the later of (1) the date upon which the obligations under the Second
Lien Credit Agreement terminate if there are no other Second Lien Obligations outstanding on such
date and (2) if there are other Second Lien Obligations outstanding on such date, the date upon
which such Second Lien Obligations terminate.

     8.3 Amendments; Waivers. No amendment, modification or waiver of any of the provisions of
this Agreement by the Second Lien Collateral Agent or the First Lien Collateral Agent shall be
deemed to be made unless the same shall be in writing signed on behalf of each party hereto or its
authorized agent and each waiver, if any, shall be a waiver only with respect to the specific
instance involved and shall in no way impair

28

 

the rights of the parties making such waiver or the
obligations of the other parties to such party in any other respect or at
any other time. Notwithstanding the foregoing, the Company shall not have any right to
consent to or approve any amendment, modification or waiver of any provision of this Agreement
except to the extent its rights are directly affected (which includes, but is not limited to any
amendment to the Grantors’ ability to cause additional obligations to constitute First Lien
Obligations or Second Lien Obligations as the Company may designate).

     8.4 Information Concerning Financial Condition of the Company and its Subsidiaries. The
First Lien Collateral Agent and the First Lien Claimholders, on the one hand, and the Second Lien
Claimholders and the Second Lien Collateral Agent, on the other hand, shall each be responsible for
keeping themselves informed of (a) the financial condition of the Company and the Guarantors and
all endorsers and/or guarantors of the First Lien Obligations or the Second Lien Obligations and
(b) all other circumstances bearing upon the risk of nonpayment of the First Lien Obligations or
the Second Lien Obligations. The First Lien Collateral Agent and the First Lien Claimholders shall
have no duty to advise the Second Lien Collateral Agent or any Second Lien Claimholder of
information known to it or them regarding such condition or any such circumstances or otherwise.
In the event the First Lien Collateral Agent or any of the First Lien Claimholders, in its or their
sole discretion, undertakes at any time or from time to time to provide any such information to the
Second Lien Collateral Agent or any Second Lien Claimholder, it or they shall be under no
obligation:

     (a) to make, and the First Lien Collateral Agent and the First Lien Claimholders shall not
make, any express or implied representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of any such information so provided;

     (b) to provide any additional information or to provide any such information on any subsequent
occasion;

     (c) to undertake any investigation; or

     (d) to disclose any information, which pursuant to accepted or reasonable commercial finance
practices, such party wishes to maintain confidential or is otherwise required to maintain
confidential.

     8.5 Subrogation. With respect to the value of any payments or distributions in cash,
property or other assets that any of the Second Lien Claimholders or the Second Lien Collateral
Agent pays over to the First Lien Collateral Agent or the First Lien Claimholders under the terms
of this Agreement, the Second Lien Claimholders and the Second Lien Collateral Agent shall be
subrogated to the rights of the First Lien Collateral Agent and the First Lien Claimholders;
provided that, the Second Lien Collateral Agent, on behalf of itself and the Second Lien
Claimholders, hereby agrees not to assert or enforce all such rights of subrogation it may acquire
as a result of any payment hereunder until the
Discharge of First Lien Obligations has occurred. The Company acknowledges and agrees that
the value of any payments or distributions in cash, property or other assets

29

 

received by the Second
Lien Collateral Agent or the Second Lien Claimholders that are paid over to the First Lien
Collateral Agent or the First Lien Claimholders pursuant to this Agreement shall not reduce any of
the Second Lien Obligations.

     8.6 Application of Payments. All payments received by the First Lien Collateral Agent or
the First Lien Claimholders may be applied, reversed and reapplied, in whole or in part, to such
part of the First Lien Obligations provided for in the First Lien Loan Documents. The Second Lien
Collateral Agent, on behalf of itself and the Second Lien Claimholders, assents to any extension or
postponement of the time of payment, subject to Section 5.3(a)(3), of the First Lien Obligations or
any part thereof and to any other indulgence with respect thereto, to any substitution, exchange or
release of any security which may at any time secure any part of the First Lien Obligations and to
the addition or release of any other Person primarily or secondarily liable therefor.

     8.7 SUBMISSION TO JURISDICTION; WAIVERS. (a) ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS
AGREEMENT, EACH PARTY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY:

     (1) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF
SUCH COURTS;

     (2) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

     (3) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT
ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 8.8; AND

     (4) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (3) ABOVE IS SUFFICIENT TO CONFER
PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT,
AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

     (b) EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON

30

 

LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE; MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 8.7(b) AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

     (c) EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
FIRST LIEN LOAN DOCUMENT OR SECOND LIEN LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY HERETO.

     8.8 Notices. All notices to the Second Lien Claimholders and the First Lien Claimholders
permitted or required under this Agreement shall also be sent to the Second Lien Collateral Agent
and the First Lien Collateral Agent, respectively. Unless otherwise specifically provided herein,
any notice hereunder shall be in writing and may be personally served, telexed or sent by
telefacsimile or United States mail or courier service and shall be deemed to have been given when
delivered in person or by courier service and signed for against receipt thereof, upon receipt of
telefacsimile or telex, or three Business Days after depositing it in the United States mail with
postage prepaid and properly addressed. For the purposes hereof, the addresses of the parties
hereto shall be as set forth on Annex I hereto, or, as to each party, at such other address as may
be designated by such party in a written notice to all of the other parties.

     8.9 Further Assurances. The First Lien Collateral Agent, on behalf of itself and the First Lien Claimholders under
the First Lien Loan Documents, and the Second Lien Collateral Agent, on behalf of itself and the
Second Lien Claimholders under the Second Lien Loan Documents, and the Company, agree that each of
them shall take such further action and shall execute and deliver such additional documents and
instruments (in recordable form, if requested) as the First Lien Collateral Agent or the Second
Lien Collateral Agent may reasonably request to effectuate the terms of and the Lien priorities
contemplated by this Agreement.

31

 

     8.10 APPLICABLE LAW. THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

     8.11 Binding on Successors and Assigns. This Agreement shall be binding upon the First
Lien Collateral Agent, the First Lien Claimholders, the Second Lien Collateral Agent, the Second
Lien Claimholders and their respective successors and assigns.

     8.12 Specific Performance. Each of the First Lien Collateral Agent and the Second Lien
Collateral Agent may demand specific performance of this Agreement. The First Lien Collateral
Agent, on behalf of itself and the First Lien Claimholders under the First Lien Loan Documents, and
the Second Lien Collateral Agent, on behalf of itself and the Second Lien Claimholders, hereby
irrevocably waive any defense based on the adequacy of a remedy at law and any other defense which
might be asserted to bar the remedy of specific performance in any action which may be brought by
the First Lien Collateral Agent or the First Lien Claimholders or the Second Lien Collateral Agent
or the Second Lien Claimholders, as the case may be.

     8.13 Headings. Section headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.

     8.14 Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. Delivery of an executed counterpart
of a signature page of this Agreement or any document or instrument delivered in connection
herewith by telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement or such other document or instrument, as applicable.

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

     8.16 No Third Party Beneficiaries. This Agreement and the rights and benefits hereof shall
inure to the benefit of each of the parties hereto and its respective successors and assigns and
shall inure to the benefit of each of the First Lien Claimholders and the Second Lien Claimholders.
Nothing in this Agreement shall impair, as between the Company and the other Grantors and the
First Lien Collateral Agent and the First Lien Claimholders, or as between the Company and the
other Grantors and the Second Lien Collateral Agent and the Second Lien Claimholders, the
obligations of the Company and the other Grantors to pay principal, interest, fees and other
amounts as provided in the First Lien Loan Documents and the Second Lien Loan Documents,
respectively.

32

 

     8.17 Provisions Solely to Define Relative Rights. The provisions of this Agreement are and
are intended solely for the purpose of defining the relative rights of the First Lien Collateral
Agent and the First Lien Claimholders on the one hand and the Second Lien Collateral Agent and the
Second Lien Claimholders on the other hand. None of the Company, any other Grantor or any other
creditor thereof shall have any rights hereunder and neither the Company nor any Grantor may rely
on the terms hereof. Nothing in this Agreement is intended to or shall impair the obligations of
the Company or any other Grantor, which are absolute and unconditional, to pay the First Lien
Obligations and the Second Lien Obligations as and when the same shall become due and payable in
accordance with their terms.

[Remainder of this page intentionally left blank]

33

 

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

	 	 	 	 	 
	 	First Lien Collateral Agent

GOLDMAN SACHS CREDIT PARTNERS L.P.

as First Lien Collateral Agent,

 	 
	 	By:  	     /s/ William W. Archer
 	 
	 	 	Name:  William W. Archer 	 
	 	 	Title:  Managing Director 	 
	 

[INTERCREDITOR AGREEMENT]

 

 

	 	 	 	 	 
	 	Second Lien Collateral Agent

THE BANK OF NEW YORK,

as Second Lien Collateral Agent

 	 
	 	By:  	     /s/ Stephen C. Jerard
 	 
	 	 	Name:  Stephen C. Jerard 	 
	 	 	Title:  Vice President 	 
	 

[INTERCREDITOR AGREEMENT]

 

 

	 	 	 	 	 	 	 
	Acknowledged and Agreed to by:	 	 
	 
	 	 	 	 	 	 
	The Company	 	 	 	 
	 
	 	 	 	 	 	 
	DAY INTERNATIONAL, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	     /s/ Thomas J. Koenig	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: Thomas J. Koenig	 	 	 
	 

	 	Title: Vice President and CFO	 	 	 

[INTERCREDITOR AGREEMENT]

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