Document:

exv10w13

 

Exhibit-10.13

Amendment No. 2, Consent and Waiver 

under

Credit Agreement

          Amendment No. 2, Consent and Waiver (this “Amendment No. 2, Consent and
Waiver”), dated as of April _, 2006, to and under the Credit Agreement (the “Credit
Agreement”) dated as of December 1, 2005, among AVAGO TECHNOLOGIES FINANCE PTE. LTD., a company
incorporated under the Singapore Companies Act (the “Company” or the “Singaporean
Borrower”), a wholly-owned Subsidiary of AVAGO TECHNOLOGIES HOLDING PTE. LTD., a company
incorporated under the Singapore Companies Act (“Holdings”), a wholly-owned Subsidiary of
AVAGO TECHNOLOGIES LIMITED, a company incorporated under the Singapore Companies Act
(“Parent”), AVAGO TECHNOLOGIES FINANCE S.À.R.L., a Grand Duchy of Luxembourg limited
liability company (the “Lux Borrower”), AVAGO TECHNOLOGIES (MALAYSIA) SDN. BHD. (f/k/a
Jumbo Portfolio Sdn. Bhd.) (Company No. 704181-P), a company incorporated in Malaysia under the
Companies Act 1965 (the “Malaysian Borrower”), AVAGO TECHNOLOGIES WIRELESS (U.S.A.)
MANUFACTURING INC., a Delaware corporation (“U.S. Wireless”), and AVAGO TECHNOLOGIES U.S.
INC., a Delaware corporation (“U.S. Opco” and together with U.S. Wireless, collectively,
the “U.S. Borrowers” and each a “U.S. Borrower”, and together with the Singaporean
Borrower, the Lux Borrower and the Malaysian Borrower, collectively, the “Borrowers”), the
lending institutions listed on the signature pages thereto as a “Lender” or that from time to time
become parties thereto by execution of an Assignment and Acceptance (each a “Lender” and,
collectively, the “Lenders”), CITICORP INTERNATIONAL LIMITED (HONG KONG), as Asian
Administrative Agent, CITICORP NORTH AMERICA, INC., as Tranche B Term Loan Administrative Agent and
as Collateral Agent, CITIGROUP GLOBAL MARKETS INC., as Joint Lead Arranger and Joint Lead
Bookrunner, LEHMAN BROTHERS INC., as Joint Lead Arranger, Joint Lead Bookrunner and Syndication
Agent, CREDIT SUISSE, as Documentation Agent, OVERSEA-CHINESE BANKING CORPORATION LIMITED, as
Singaporean Managing Agent, and THE ROYAL BANK OF SCOTLAND, as Senior Managing Agent, as amended.
Capitalized terms used herein but not defined herein are used as defined in the Credit Agreement.

W i t n e s s e t h:

          Whereas, the Company failed to deliver the Section 9.1 Financials for the quarterly
accounting period ended January 31, 2006 (the “First Quarter Section 9.1 Financials”) in
accordance with Section 9.1(b) and Section 9.1(d) of the Credit Agreement (the “Section 9.1
Financials Default”); and

          Whereas, the Borrowers requested that the Administrative Agent and the Lenders agree
to defer the delivery date of the First Quarter Financials to any date prior to May 1, 2006, and
waive the Section 9.1 Financial Default as herein set forth; and

          WHEREAS, the Lenders signatory to a consent in the form set forth hereto as Exhibit A
(an “Acknowledgment and Consent”) and the Administrative Agents have agreed, subject to the
conditions herein provided, to waive the Section 9.1 Financial Default; and

 

 

          Whereas, the Lenders signatory to an Acknowledgment and Consent, the Borrowers and
the Administrative Agents have agreed to amend the Credit Agreement on the terms and subject to the
conditions herein provided.

          Now, Therefore, in consideration of the foregoing, the mutual covenants and
obligations herein set forth and other good and valuable consideration, the adequacy and receipt of
which is hereby acknowledged, and in reliance upon the representations, warranties and covenants
herein contained, the parties hereto, intending to be legally bound, hereby agree as follows:

     Section 1. Waiver and Consent. As of the Effective Date (as defined below), each of
the Administrative Agents and each Lender signatory to an Acknowledgment and Consent hereby (a)
agrees to defer the delivery date of the First Quarter Section 9.1 Financials to any date prior to
May 1, 2006 and (b) waive the Section 9.1 Financial Default, provided that if the Company fails to
deliver the First Quarter Section 9.1 Financials on or prior to May 1, 2006, the waiver set forth
in this clause (b) shall automatically and without any further action be voided and of no further
force and effect.

     Section 2. Amendment No. 2 to the Credit Agreement. As of the Effective Date (as
defined below), the Credit Agreement is hereby amended by deleting Section 5.5 in its entirety and
inserting in lieu thereof the following:

     “5.5 Computations of Interest and Fees. (a) Interest on LIBOR Loans, SOR
Loans, RM Loans and, except as provided in the next succeeding sentence, ABR Loans shall be
calculated on the basis of a 360-day year for the actual days elapsed. Interest on ABR
Loans in respect of which the rate of interest is calculated on the basis of the U.S. Prime
Rate shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for
the actual days elapsed.

     (b) Fees and Letters of Credit Outstanding shall be calculated on the basis of a 360-
day year for the actual days elapsed.

     Section 3. Conditions Precedent to Amendments. This Amendment No. 2, Consent And
Waiver shall become effective as of the date (the “Effective Date”) on which each of the
following conditions precedent set shall have been satisfied or duly waived:

     (a) Certain Documents. The Administrative Agents shall have received each of the
following:

          (i) this Amendment No. 2, Consent And Waiver, duly executed by each of the Credit Parties and
each of the Administrative Agents; and

          (ii) Acknowledgment and Consent, duly executed by each of the Requisite Lenders.

     (b) Representations and Warranties. Each of the representations and warranties
contained in Section 4 below shall be true and correct in all material respects.

     (c) No Default or Event of Default. After giving effect to this Amendment No. 2,
Consent And Waiver, no Default or Event of Default, shall have occurred and be continuing.

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     Section 4. Representations and Warranties. Each Credit Party hereby jointly and
severally represents and warrants to the Administrative Agents and each Lender, with respect to all
Credit Parties, as follows:

     (a) After giving effect to this Amendment No. 2, Consent And Waiver, each of the
representations and warranties in the Credit Agreement and in the other Credit Documents are true
and correct in all material respects on and as of the date hereof as though made on and as of such
date, except to the extent that any such representation or warranty expressly relates to an earlier
date and except for changes therein expressly permitted by the Credit Agreement.

     (b) The execution, delivery and performance by each Credit Party of this Amendment No. 2,
Consent And Waiver have been duly authorized by all requisite corporate, limited liability company
or limited partnership action on the part of such Credit Party and will not violate any of the
articles of incorporation or bylaws (or other constituent documents) of such Credit Party.

     (c) This Amendment No. 2, Consent And Waiver has been duly executed and delivered by each
Credit Party, and each of this Amendment No. 2, Consent And Waiver and the Credit Agreement as
amended hereby constitutes the legal, valid and binding obligation of such Credit Party,
enforceable against such Credit Party in accordance with their terms, except as the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
rights of creditors generally and by general principles of equity.

     (d) After giving effect to this Amendment No. 2, Consent And Waiver, no Default or Event of
Default has occurred and is continuing as of the date hereof.

     Section 5. Costs and Expenses. As provided in Section 13.5 of the Credit Agreement,
the Company agrees to reimburse the Agents for all reasonable fees, costs and expenses, including
the reasonable fees, costs and expenses of counsel or other advisors for advice, assistance or
other representation in connection with this Amendment No. 2, Consent And Waiver.

     Section 6. Reference to and Effect on the Credit Documents.

     (a) As of the Effective Date, each reference in the Credit Agreement and the other Credit
Documents to “this Agreement,” “hereunder,” “hereof,” “herein,” or
words of like import, and each reference in the other Credit Documents to the Credit Agreement
(including, without limitation, by means of words like “thereunder,” “thereof” and
words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and
this Amendment No. 2, Consent And Waiver and the Credit Agreement shall be read together and
construed as a single instrument. Each of the table of contents and lists of Exhibits and
Schedules of the Credit Agreement shall be amended to reflect the changes made in this Amendment
No. 2, Consent And Waiver.

     (b) Except as expressly amended hereby, all of the terms and provisions of the Credit
Agreement and all other Credit Documents are and shall remain in full force and effect and are
hereby ratified and confirmed.

     (c) The execution, delivery and effectiveness of this Amendment No. 2, Consent And Waiver
shall not, except as expressly provided herein, operate as a waiver of any right,

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power or remedy of any Agent, any Lender or the Letter of Credit Issuer under the Credit
Agreement or any Credit Document, or constitute a waiver or amendment of any other provision of the
Credit Agreement or any Credit Document except as and to the extent expressly set forth herein.

     (d) Each Credit Party hereby confirms that the guaranties, security interests and liens
granted pursuant to the Credit Documents continue to guarantee and secure the Obligations as set
forth in the Credit Documents and that such guaranties, security interests and liens remain in full
force and effect.

     Section 7. Counterparts. This Amendment No. 2, Consent And Waiver may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. Receipt by the Administrative Agents of a facsimile copy of an
executed signature page hereof shall constitute receipt by the Administrative Agents of an executed
counterpart of this Amendment No. 2, Consent And Waiver.

     Section 8. Governing Law. This Amendment No. 2, Consent And Waiver and the rights and
obligations of the parties hereto shall be governed by, and construed and interpreted in accordance
with, the law of the State of New York.

     Section 9. Headings. Section headings contained in this Amendment No. 2, Consent And
Waiver are included herein for convenience of reference only and shall not constitute a part of
this Amendment No. 2, Consent And Waiver for any other purposes.

     Section 10. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TRIAL
BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT NO. 2, CONSENT AND WAIVER OR ANY
OTHER CREDIT DOCUMENT.

[Signature Pages Follow]

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          In Witness Whereof, the parties hereto have caused this Amendment No. 2, Consent And
Waiver to be executed by their respective officers and members thereunto duly authorized, on the
date indicated below.

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES FINANCE PTE. LTD.

 	 
	 	By:	
/s/ Dick Chang	 
	 	 	Name:  	Dick Chang	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES HOLDING PTE. LTD.

 	 
	 	By:	
 /s/ Dick Chang	 
	 	 	Name:  	Dick Chang	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES FINANCE S.À.R.L.

 	 
	 	By: 	
/s/ Rex Jackson	 
	 	 	Name:  	Rex Jackson	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES WIRELESS (U.S.A.) MANUFACTURING INC.

 	 
	 	By: 	
/s/ Rex Jackson	 
	 	 	Name:  	Rex Jackson	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES U.S. INC.

 	 
	 	By: 	
/s/ Rex Jackson	 
	 	 	Name:  	Rex Jackson	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES (MALAYSIA) SDN. BHD. (f/k/a Jumbo Portfolio Sdn. Bhd.)

 	 
	 	
/s/ Rex Jackson	 
	 	Name:  Rex Jackson	 
	 	Title:    Director	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]

 

 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,
as Tranche B Term Loan Administrative Agent, Collateral Agent, and Lender
 
	 
	 	By:  	
/s/ C.P. Mahon	 
	 	 	Name:  	C.P. Mahon	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	CITICORP INTERNATIONAL LIMITED
(HONG KONG),
as Asian Administrative Agent

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITIBANK N.A., SINGAPORE BRANCH,
as Lender and Letter of Credit Issuer

 
	 
	 	By:  	
/s/ David J. Wirdnam	 
	 	 	Name:  	David J. Wirdnam	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	CITIBANK BERHAD,
as Lender

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]

 

 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,
as Tranche B Term Loan Administrative Agent, Collateral Agent, and Lender
 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITICORP INTERNATIONAL LIMITED
(HONG KONG),
as Asian Administrative Agent

 
	 
	 	By:  	
/s/ Justin Crane	 
	 	 	Name:  	Justin Crane	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	CITIBANK N.A., SINGAPORE BRANCH,
as Lender and Letter of Credit Issuer

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITIBANK BERHAD,
as Lender

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]

 

 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,
as Tranche B Term Loan Administrative Agent, Collateral Agent, and Lender
 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITICORP INTERNATIONAL LIMITED
(HONG KONG),
as Asian Administrative Agent

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITIBANK N.A., SINGAPORE BRANCH,
as Lender and Letter of Credit Issuer

 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITIBANK BERHAD,
as Lender

 
	 
	 	By:  	
/s/ Jacob Chia	 
	 	 	Name:  	Jacob Chia	 
	 	 	Title:  	Director

Corporate Banking Head

Penang	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC.,
as Lender

 
	 
	 	By:  	
/s/ Craig Malloy	 
	 	 	Name:  	Craig Malloy	 
	 	 	Title:  	Authorized Signatory	 
	 

	 	 	 	 	 
	 	LEHMAN BROTHERS INC.,
as Joint Lead Arranger and as Syndication Agent

 
	 
	 	By:  	
/s/ Craig Malloy	 
	 	 	Name:  	Craig Malloy	 
	 	 	Title:  	V.P.	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND,
as Senior Managing Agent and Lender

 
	 
	 	By:  	
/s/ Alan Goodyear	 
	 	 	Name:  	Alan Goodyear	 
	 	 	Title:  	General Manager & Head of Corporates	 
	 

[Signature Page to Avago Amendment No. 2, Consent and Waiver]exv10w16

 

Exhibit-
10.16

Execution Version

SECURITY AGREEMENT

          THIS SECURITY AGREEMENT dated as of December 1, 2005, among AVAGO TECHNOLOGIES WIRELESS
(U.S.A.) MANUFACTURING INC., a Delaware corporation (“U.S. Wireless”), and AVAGO
TECHNOLOGIES U.S. INC., a Delaware corporation (“U.S. Opco” and together with U.S.
Wireless, the “U.S. Borrowers” and each a “U.S. Borrower”), each of the
Subsidiaries of the Company listed on the signature pages hereto (each such entity being a
“Subsidiary Grantor” and, collectively, the “Subsidiary Grantors”; the Subsidiary
Grantors and the U.S. Borrowers are referred to collectively as the “Grantors”) and
CITICORP NORTH AMERICA, INC., as Collateral Agent (in such capacity, the “Collateral
Agent”) under the Credit Agreement (as defined below) for the benefit of the Secured Parties
(as defined below).

W I  T  N  E  S  S  E  T  H:

WHEREAS, the U.S. Borrowers are party to the Credit Agreement, dated as of December 1, 2005
(as the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced
from time to time, the “Credit Agreement”) among AVAGO TECHNOLOGIES FINANCE PTE. LTD.
(company registration number 200512223N), a Singapore limited company (the “Singaporean
Borrower” or the “Company”), a wholly-owned Subsidiary of AVAGO TECHNOLOGIES HOLDING
PTE. LTD. (company registration number 200512203H), a Singapore limited company
(“Holdings”), a wholly-owned Subsidiary of AVAGO TECHNOLOGIES LIMITED, formerly known as
Avago Technologies Pte. Limited (company registration number 200510713C), a Singapore limited
company (“Avago” or “Parent”), AVAGO TECHNOLOGIES FINANCE S.À.R.L., a Grand Duchy
of Luxembourg limited liability company (the “Lux Borrower”), AVAGO TECHNOLOGIES (MALAYSIA)
SDN. BHD. (f/k/a Jumbo Portfolio Sdn. Bhd.) (Company No. 704181-P), a company incorporated in
Malaysia under the Companies Act, 1965 (the “Malaysian Borrower”), each of the U.S.
Borrowers (together with the Singaporean Borrower, the Lux Borrower and the Malaysian Borrower, the
“Borrowers”), the lenders or other financial institutions or entities from time to time
parties thereto (the “Lenders”), CITICORP INTERNATIONAL LIMITED (HONG KONG), as Asian
Administrative Agent and CITICORP NORTH AMERICA, INC., as Tranche B-1 Term Loan Administrative
Agent and as Collateral Agent.

WHEREAS, (a) pursuant to the Credit Agreement, the Lenders have severally agreed to make Loans
to the Borrowers and the Letter of Credit Issuer has agreed to issue Letters of Credit for the
account of the Borrowers (collectively, the “Extensions of Credit”) upon the terms and
subject to the conditions set forth therein and (b) one or more Lenders or affiliates of Lenders
may from time to time enter into Hedge Agreements with one or more of the Borrowers;

WHEREAS, pursuant to the Guarantee (the “Guarantee”) dated as of the date hereof, each
Subsidiary Grantor party thereto has unconditionally and irrevocably

 

 

guaranteed, as primary obligor and not merely as surety, to the Collateral Agent for the
benefit of the Secured Parties the prompt and complete payment and performance when due (whether at
the stated maturity, by acceleration or otherwise) of the Obligations;

          WHEREAS, each Subsidiary Grantor is a Subsidiary Guarantor;

          WHEREAS, the proceeds of the Extensions of Credit will be used in part to enable the U.S.
Borrowers to make valuable transfers to the Subsidiary Grantors in connection with the operation of
their respective businesses;

          WHEREAS, each Grantor acknowledges that it will derive substantial direct and indirect benefit
from the making of the Extensions of Credit; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders and the Letter of Credit
Issuer to make their respective Extensions of Credit to the Borrowers under the Credit Agreement
that the Grantors shall have executed and delivered this Security Agreement to the Collateral Agent
for the ratable benefit of the Secured Parties;

          NOW, THEREFORE, in consideration of the premises and to induce each Administrative Agent, the
Collateral Agent, the Syndication Agent, the Lenders and the Letter of Credit Issuer to enter into
the Credit Agreement and to induce the respective Lenders and the Letter of Credit Issuer to make
their respective Extensions of Credit to the Borrowers under the Credit Agreement and to induce one
or more Lenders or affiliates of Lenders to enter into Hedge Agreements with the Borrowers, the
Grantors hereby agree with the Collateral Agent, for the ratable benefit of the Secured Parties, as
follows:

          1. Defined Terms.

          (a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

          (b) Terms used herein without definition that are defined in the UCC have the meanings given
to them in the UCC, including the following terms (which are capitalized herein): Account, Chattel
Paper, Documents, Instruments, Inventory, Letter-of-Credit Right, Securities Account.

          (c) The following terms shall have the following meanings:

          “Collateral” shall have the meaning provided in Section 2.

          “Collateral Account” shall mean any collateral account established by the Collateral
Agent as provided in Section 5.1 or Section 5.3.

2

 

          “Collateral Agent” shall have the meaning provided in the preamble to this Security
Agreement.

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

          “copyrights” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (i) all copyright rights in any work subject to the copyright
laws of the United States or any other country, whether as author, assignee, transferee or
otherwise, and (ii) all registrations and applications for registration of any such copyright in
the United States or any other country, including registrations, recordings, supplemental
registrations and pending applications for registration in the United States Copyright Office.

          “Copyrights” shall mean all copyrights now owned or hereafter acquired by any Grantor,
including those listed on Schedule 1.

          “equipment” shall mean all “equipment,” as such term is defined in Article 9 of the
UCC, now or hereafter owned by any Grantor or to which any Grantor has rights and, in any event,
shall include all machinery, equipment, furnishings, movable trade fixtures and vehicles now or
hereafter owned by any Grantor or to which any Grantor has rights and any and all Proceeds,
additions, substitutions and replacements of any of the foregoing, wherever located, together with
all attachments, components, parts, equipment and accessories installed thereon or affixed thereto;
but excluding equipment to the extent it is subject to a Lien permitted by the Credit Agreement and
the terms of the Indebtedness securing such Lien prohibit assignment of, or granting of a security
interest in, such Grantor’s rights and interests therein (other than to the extent that any such
prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the
Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction or
any other applicable law), provided, that immediately upon the repayment of all
Indebtedness secured by such Lien, such Grantor shall be deemed to have granted a Security Interest
in all the rights and interests with respect to such equipment.

          “Extensions of Credit” shall have the meaning assigned to such term in the recitals
hereto.

          “General Intangibles” shall mean all “general intangibles” as such term is defined in
Article 9 of the UCC and, in any event, including with respect to any Grantor, all contracts,
agreements, instruments and indentures in any form, and portions thereof, to which such Grantor is
a party or under which such Grantor has any right, title or interest or to which such Grantor or
any property of such Grantor is subject, as the same may from time to time be amended, supplemented
or otherwise modified, including (a) all

3

 

rights of such Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (b) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guarantee with respect thereto, (c) all claims of such Grantor for damages
arising out of any breach of or default thereunder and (d) all rights of such Grantor to terminate,
amend, supplement, modify or exercise rights or options thereunder, to perform thereunder and to
compel performance and otherwise exercise all remedies thereunder, in each case to the extent the
grant by such Grantor of a Security Interest pursuant to this Security Agreement in its right,
title and interest in any such contract, agreement, instrument or indenture (i) is not prohibited
by such contract, agreement, instrument or indenture without the consent of any other party
thereto, (ii) would not give any other party to any such contract, agreement, instrument or
indenture the right to terminate its obligations thereunder or (iii) is permitted with consent if
all necessary consents to such grant of a Security Interest have been obtained from the other
parties thereto (other than to the extent that any such prohibition referred to in clauses (i),
(ii) and (iii) would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction
or any other applicable law) (it being understood that the foregoing shall not be deemed to
obligate such Grantor to obtain such consents), provided that the foregoing limitation
shall not affect, limit, restrict or impair the grant by such Grantor of a Security Interest
pursuant to this Security Agreement in any Account or any money or other amounts due or to become
due under any such contract, agreement, instrument or indenture.

          “Guarantors” shall mean Holdings and each Subsidiary Guarantor.

          “Grantor” shall have the meaning assigned to such term in the recitals hereto.

          “Intellectual Property” shall mean all of the following now owned or hereafter
acquired by any Grantor: rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise now owned or
hereafter acquired, including (a) all information used or useful arising from the business
including all goodwill, trade secrets, trade secret rights, know-how, customer lists, processes of
production, ideas, confidential business information, techniques, processes, formulas and all other
proprietary information, and (b) the Copyrights, the Patents, the Trademarks and the Licenses and
all rights to sue at law or in equity for any infringement or other impairment thereof, including
the right to receive all proceeds and damages therefrom, in each case to the extent the grant by
such Grantor of a Security Interest pursuant to this Security Agreement in any such rights,
priorities and privileges relating to intellectual property (i) is not prohibited by any contract,
agreement or other instrument governing such rights, priorities and privileges without the consent
of any other party thereto, (ii) would not give any other party to any such contract, agreement or
other instrument the right to terminate its obligations thereunder or (iii) is permitted with
consent if all necessary consents to such grant of a Security Interest have been obtained from the
relevant parties (other than to the extent that any such prohibition referred to in clauses (i),
(ii) and (iii) would be rendered ineffective pursuant to Sections

4

 

9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law) (it being understood that the
foregoing shall not be deemed to obligate such Grantor to obtain such consents).

          “Investment Property” shall mean all Securities (whether certificated or
uncertificated), Security Entitlements, Securities Accounts, Commodity Contracts and Commodity
Accounts of any Grantor (other than as pledged pursuant to the Pledge Agreements), whether now or
hereafter acquired by any Grantor, in each case to the extent the grant by a Grantor of a Security
Interest therein pursuant to this Security Agreement in its right, title and interest in any such
Investment Property (i) is not prohibited by any contract, agreement, instrument or indenture
governing such Investment Property without the consent of any other party thereto, (ii) would not
give any other party to any such contract, agreement, instrument or indenture the right to
terminate its obligations thereunder or (iii) is permitted with consent if all necessary consents
to such grant of a Security Interest have been obtained from the other parties thereto (other than
to the extent that any such prohibition referred to in clauses (i), (ii) and (iii) would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial
Code (or any successor provision or provisions) of any relevant jurisdiction or any other
applicable law) (it being understood that the foregoing shall not be deemed to obligate such
Grantor to obtain such consents).

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

          “Obligations” shall mean the collective reference to (i) the due and punctual payment
of (x) the principal of and premium, if any, and interest at the applicable rate provided in the
Credit Agreement (including interest at the contract rate applicable upon default accrued or
accruing after the commencement of any proceeding, under the Bankruptcy Code or any applicable
provision of comparable state or foreign law, whether or not such interest is an allowed claim in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (y) each payment required to be made by any Borrower
under the Credit Agreement or any other Credit Documents in respect of any Letter of Credit, when
and as due, including payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (z) all other monetary obligations, including fees,
costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any proceeding under the Bankruptcy
Code or any applicable provision of comparable state or foreign law, whether or not such interest
is an allowed claim in such proceeding), of any Borrower or any other Credit Party to any of the
Secured Parties under the Credit Agreement and any other Credit Documents, (ii) the due and
punctual performance of all covenants, agreements, obligations and liabilities of the Borrowers
under or pursuant to the Credit Agreement and the other Credit Documents, (iii) the due and
punctual payment and performance of all the covenants, agreements, obligations and liabilities of
each other Credit Party under or pursuant to this Security Agreement or the

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other Credit Documents, (iv) the due and punctual payment and performance of all obligations
of each Credit Party under each Hedge Agreement that (x) is in effect on the Closing Date with a
counterparty that is a Lender or an affiliate of a Lender as of the Closing Date or (y) is entered
into after the Closing Date with any counterparty that is a Lender or an affiliate of a Lender at
the time such Hedge Agreement is entered into and (v) the due and punctual payment and performance
of all obligations in respect of overdrafts and related liabilities owed to the applicable
Administrative Agent or its affiliates arising from or in connection with (a) treasury, depositary,
cash management services, (b) automated clearinghouse transfer of funds or (c) employee credit card
programs of up to the U.S. Dollar Equivalent of $5,000,000.

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

          “patents” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (a) all letters patent of the United States or the equivalent
thereof in any other country, all registrations and recordings thereof, and all applications for
letters patent of the United States or the equivalent thereof in any other country, including
registrations, recordings and pending applications in the United States Patent and Trademark Office
or any similar offices in any other country, and (b) all reissues, continuations, divisions,
continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed or claimed therein.

          “Patents” shall mean all patents now owned or hereafter acquired by any Grantor,
including those listed on Schedule 2.

          “Proceeds” shall mean all “proceeds” as such term is defined in Article 9 of the UCC
and, in any event, shall include with respect to any Grantor, any consideration received from the
sale, exchange, license, lease or other disposition of any asset or property that constitutes
Collateral, any value received as a consequence of the possession of any Collateral and any payment
received from any insurer or other person or entity as a result of the destruction, loss, theft,
damage or other involuntary conversion of whatever nature of any asset or property that constitutes
Collateral, and shall include (a) all cash and negotiable instruments received by or held on behalf
of the Collateral Agent, (b) any claim of any Grantor against any third party for (and the right to
sue and recover for and the rights to damages or profits due or accrued arising out of or in
connection with) (i) past, present or future infringement of any Patent now or hereafter owned by
any Grantor, or licensed under a Patent License, (ii) past, present or future infringement or
dilution of any Trademark now or hereafter owned by any Grantor or licensed under a Trademark
License or injury to the goodwill associated with or symbolized by any Trademark now or hereafter
owned by any Grantor, (iii) past, present

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or future breach of any License and (iv) past, present or future infringement of any Copyright
now or hereafter owned by any Grantor or licensed under a Copyright License and (c) any and all
other amounts from time to time paid or payable under or in connection with any of the Collateral.

          “Secured Parties” shall mean, collectively, (i) the Lenders, (ii) each Administrative
Agent, (iii) the Collateral Agent, (iv) the Letter of Credit Issuer, (v) the Swingline Lender, (vi)
the Syndication Agent, (vii) the Documentation Agent, (viii) each counterparty to a Hedge Agreement
the obligations under which constitute Obligations, (ix) the beneficiaries of each indemnification
obligation undertaken by any Credit Party under the Credit Agreement or any document executed
pursuant thereto and (x) any successors, indorsees, transferees and assigns of each of the
foregoing.

          “Security Agreement” shall mean this Security Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Security Interest” shall have the meaning provided in Section 2.

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

          “trademarks” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (i) all trademarks, service marks, trade names, corporate
names, company names, business names, fictitious business names, trade styles, trade dress, logos,
other source or business identifiers, designs and general intangibles of like nature, now existing
or hereafter adopted or acquired, all registrations and recordings thereof (if any), and all
registration and recording applications filed in connection therewith, including registrations and
registration applications in the United States Patent and Trademark Office or any similar offices
in any State of the United States or any other country or any political subdivision thereof, and
all extensions or renewals thereof, (ii) all goodwill associated therewith or symbolized thereby
and (iii) all other assets, rights and interests that uniquely reflect or embody such goodwill.

          “Trademarks” shall mean all trademarks now owned or hereafter acquired by any Grantor,
including those listed on Schedule 3 hereto; provided that any “intent to use” Trademark
applications for which a statement of use has not been filed (but only until such statement is
filed) are excluded from this definition.

          “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the
State of New York; provided, however, that, in the event that, by reason of mandatory
provisions of law, any of the attachment, perfection or priority of the Collateral Agent’s and the
Secured Parties’ security interest in any Collateral is governed
by the Uniform Commercial Code as in effect in a jurisdiction other than the State of

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New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

          (d) The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when
used in this Security Agreement shall refer to this Security Agreement as a whole and not to any
particular provision of this Security Agreement, and Section, subsection, clause and Schedule
references are to this Security Agreement unless otherwise specified. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

          (e) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (f) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

          (g) References to “Lenders” in this Security Agreement shall be deemed to include affiliates
of any Lender that may from time to time enter into Hedge Agreements with one or more of the
Borrowers.

          2. Grant of Security Interest.

          (a) Each Grantor hereby bargains, sells, conveys, assigns, sets over, mortgages, pledges,
hypothecates and transfers to the Collateral Agent, for the ratable benefit of the Secured Parties,
and grants to the Collateral Agent, for the ratable benefit of the Secured Parties a lien on and
security interest in (the “Security Interest”), all of its right, title and interest in, to
and under all of the following property now owned or at any time hereafter acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any right, title or
interest (collectively, the “Collateral”), as collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations:

     (i) all Accounts;

     (ii) all cash;

     (iii) all Chattel Paper;

     (iv) all Documents;

     (v) all equipment;

     (vi) all General Intangibles;

     (vii) all Instruments;

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     (viii) all Intellectual Property;

     (ix) all Inventory;

     (x) all Investment Property;

     (xi) all Letters of Credit and Letter-of-Credit Rights;

     (xii) all Supporting Obligations;

     (xiii) all Collateral Accounts;

     (xiv) all books and records pertaining to the Collateral;

     (xv) the extent not otherwise included, all Proceeds and products of any and all of
the foregoing.

          (b) Each Grantor hereby irrevocably authorizes the Collateral Agent and its Affiliates,
counsel and other representatives, at any time and from time to time, to file or record financing
statements, amendments to financing statements, and other filing or recording documents or
instruments with respect to the Collateral in such form and in such offices as the Collateral Agent
reasonably determines appropriate to perfect the security interests of the Collateral Agent under
this Security Agreement, and such financing statements and amendments may described the Collateral
covered thereby as “all assets”, “all personal property” or words of similar effect. Each Grantor
hereby also authorizes the Collateral Agent and its Affiliates, counsel and other representatives,
at any time and from time to time, to file continuation statements with respect to previously filed
financing statements. A photographic or other reproduction of this Security Agreement shall be
sufficient as a financing statement or other filing or recording document or instrument for filing
or recording in any jurisdiction to the Collateral Agent..

          Each Grantor hereby agrees to provide to the Collateral Agent, promptly upon request, any
information necessary to effectuate the filings or recordings authorized by this Section 2(b).
Each Grantor also ratifies its authorization for the Collateral Agent to file in any relevant
jurisdiction any initial financing statements or amendments thereto if filed prior to the date
hereof.

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

9

 

          The Security Interests are granted as security only and shall not subject the Collateral Agent
or any other Secured Party to, or in any way alter or modify, any obligation or liability of any
Grantor with respect to or arising out of the Collateral.

          3. Representations and Warranties.

          Each Grantor hereby represents and warrants to the Collateral Agent and each Secured Party
that:

          3.1 Title; No Other Liens. Except for (a) the Security Interest granted to the
Collateral Agent for the ratable benefit of the Secured Parties pursuant to this Security
Agreement, (b) the Liens permitted by the Credit Agreement and (c) any Liens securing Indebtedness
which is no longer outstanding or any Liens with respect to commitments to lend which have been
terminated, such Grantor owns each item of the Collateral free and clear of any and all Liens or
claims of others. No security agreement, financing statement or other public notice with respect
to all or any part of the Collateral that evidences a Lien securing any material Indebtedness is on
file or of record in any public office, except such as have been filed in favor of the Collateral
Agent for the ratable benefit of the Secured Parties pursuant to this Security Agreement or are
permitted by the Credit Agreement.

          3.2 Perfected First Priority Liens. (a) This Security Agreement is effective to
create in favor of the Collateral Agent, for its benefit and for the benefit of the Secured
Parties, legal, valid and enforceable Security Interests in the Collateral, subject to the effects
of bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general
equitable principles.

          (b) Subject to the limitations set forth in clause (c) of this Section 3.2, the Security
Interests granted pursuant to this Security Agreement (i) will constitute valid and perfected
Security Interests in the Collateral (as to which perfection may be obtained by the filings or
other actions described in clause (A), (B) or (C) of this paragraph) in favor of the Collateral
Agent, for the ratable benefit of the Secured Parties, as collateral security for the Obligations,
upon (A) the completion of the filing in the applicable filing offices of all financing statements,
in each case, naming each Grantor as “debtor” and the Collateral Agent as “secured party” and
describing the Collateral, (B) delivery of all Instruments, Chattel Paper, Certificated Securities
and negotiable Documents in each case, properly endorsed for transfer to the Collateral Agent or in
blank and (C) completion of the filing, registration and recording of a fully executed agreement in
the form hereof (or a supplement hereto) and containing a description of all Collateral
constituting Intellectual Property in the United States Patent and Trademark Office (or any
successor office) within the three month period (commencing as of the date hereof) or, in the case
of Collateral constituting Intellectual Property acquired after the date hereof, thereafter
pursuant to 35 USC § 261 and 15 USC § 1060 and the regulations thereunder with respect to United
States Patents and United States registered Trademarks and in the United States Copyright Office
(or any successor office) within the one month period (commencing as of the applicable date of
acquisition or filing) or, in the case of

10

 

Collateral constituting Intellectual Property acquired after the date hereof, thereafter with
respect to United States registered Copyrights pursuant to 17 USC § 205 and the regulations
thereunder as soon as reasonably practicable, and otherwise as may be required pursuant to the laws
of any other necessary jurisdiction to the extent that a security interest may be perfected by such
filings, registrations and recordings, and (ii) are prior to all other Liens on the Collateral
other than Liens permitted pursuant to Section 10.2 of the Credit Agreement.

          (c) Notwithstanding anything to the contrary herein, no Grantor shall be required to perfect
the Security Interests granted by this Security Agreement (including Security Interests in cash,
cash accounts and Investment Property) by any means other than by (i) filings pursuant to the UCC
of the relevant State(s), (ii) filings with the registrars of motor vehicles or other appropriate
authorities in the relevant jurisdictions, (iii) filings approved by United States government
offices with respect to Intellectual Property or (iv) delivery to the Collateral Agent to be held
in its possession of all Collateral consisting of Tangible Chattel Paper, Instruments, Certificated
Securities or Negotiable Documents.

          (d) It is understood and agreed that the Security Interests in cash and Investment Property
created hereunder shall not prevent the Grantors from using such assets in the ordinary course of
their respective businesses.

          4. Covenants.

          Each Grantor hereby covenants and agrees with the Collateral Agent and the Secured Parties
that, from and after the date of this Security Agreement until the Obligations under the Credit
Documents are paid in full, the Commitments are terminated and no Letter of Credit remains
outstanding:

          4.1 Maintenance of Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the Security Interest created by this Security Agreement as a perfected
Security Interest having at least the priority described in Section 3.1 and shall defend such
Security Interest against the claims and demands of all Persons whomsoever, in each case subject to
Section 3.2(c).

          (b) Such Grantor will furnish to the Collateral Agent and the Lenders from time to time
statements and schedules further identifying and describing the assets and property of such Grantor
and such other reports in connection therewith as the Collateral Agent may reasonably request. In
addition, within 30 days after the end of each calendar quarter, such Grantor will deliver to the
Collateral Agent a written supplement substantially in the form of Annex B hereto with
respect to any additional Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
Trademark Licenses acquired by such Grantor after the date hereof, all in reasonable detail.

          (c) Subject to clause (d) below and Section 3.2(c), each Grantor agrees that at any time and
from time to time, at the expense of such Grantor, it will execute any

11

 

and all further documents, financing statements, agreements and instruments, and take all such
further actions (including the filing and recording of financing statements and other documents,
including all applicable documents required under Section 3.2(b)(C)), which may be required under
any applicable law, or which the Collateral Agent or the Required Lenders may reasonably request,
in order (x) to grant, preserve, protect and perfect the validity and priority of the Security
Interests created or intended to be created hereby or (y) to enable the Collateral Agent to
exercise and enforce its rights and remedies hereunder with respect to any Collateral, including
the filing of any financing or continuation statements under the UCC in effect in any jurisdiction
with respect to the Security Interests created hereby and all applicable documents required under
Section 3.2(b)(C), all at the expense of such Grantor.

          (d) Notwithstanding anything in this Section 4.1 to the contrary, (i) with respect to any
assets acquired by such Grantor after the date hereof that are required by the Credit Agreement to
be subject to the Lien created hereby or (ii) with respect to any Person that, subsequent to the
date hereof, becomes a U.S. Subsidiary that is required by the Credit Agreement to become a party
hereto, the relevant Grantor after the acquisition or creation thereof shall promptly take all
actions required by the Credit Agreement or this Section 4.1.

          4.2 Changes in Locations, Name, etc. Each Grantor will furnish to the Collateral
Agent prompt written notice of any change (i) in its legal name, (ii) in its jurisdiction of
organization or location for purposes of the UCC, (iii) in any office in which it maintains books
or records relating to Collateral owned by it (including the establishment of any such new office),
(iv) in its identity or type of organization or corporate structure or (v) in its Federal Taxpayer
Identification Number or organizational identification number. Each Grantor agrees promptly to
provide the Collateral Agent with certified organizational documents reflecting any of the changes
described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made and all actions have
been taken under the UCC or that are otherwise required in order for the Collateral Agent to
continue at all times following such change to have a valid, legal and perfected security interest
in all the Collateral having at least the priority described in Section 3.2. Each Grantor also
agrees promptly to notify the Collateral Agent if any material portion of the Collateral is damaged
or destroyed.

          4.3 Notices. Each Grantor will advise the Collateral Agent and the Lenders promptly,
in reasonable detail, of any Lien of which it has knowledge (other than the Security Interests
created hereby or Liens permitted under the Credit Agreement) on any of the Collateral which would
adversely affect, in any material respect, the ability of the Collateral Agent to exercise any of
its remedies hereunder.

          4.4 Special Covenants with Respect to Equipment. (a) Each Grantor shall, promptly
after the acquisition by such Grantor of any item of equipment that 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

12

 

thereof, 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.

          (b) Upon the occurrence and during the continuation of any Event of Default, all insurance
payments in respect of such equipment shall be paid to and applied by the Collateral Agent as
specified in Section 5.4 hereof.

          (c) At the Collateral Agent’s request at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall deliver to the Collateral Agent the
certificates of title covering each item of equipment the perfection of which is governed by the
notation on the certificate of title of the Collateral Agent’s Security Interest created hereunder.

          5. Remedial Provisions.

          5.1 Certain Matters Relating to Accounts. (a) At any time after the occurrence and
during the continuance of an Event of Default and after giving reasonable notice to the Company and
any other relevant Grantor, the Administrative Agents shall have the right, but not the obligation,
to instruct the Collateral Agent to (and upon such instruction, the Collateral Agent shall) make
test verifications of the Accounts in any manner and through any medium that such Agent reasonably
considers advisable, and each Grantor shall furnish all such assistance and information as such
Agent may require in connection with such test verifications. Such Agent shall have the absolute
right to share any information it gains from such inspection or verification with any Secured
Party.

          (b) The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Accounts and
the Collateral Agent may curtail or terminate said authority at any time after the occurrence and
during the continuance of an Event of Default. If required in writing by the Collateral Agent at
any time after the occurrence and during the continuance of an Event of Default, any payments of
Accounts, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor
to the Collateral Agent if required, in a Collateral Account maintained under the sole dominion and
control of and on terms and conditions reasonably satisfactory to the Collateral Agent, subject to
withdrawal by the Collateral Agent for the account of the Secured Parties only as provided in
Section 5.5, and (ii) until so turned over, shall be held by such Grantor in trust for the
Collateral Agent and the Secured Parties, segregated from other funds of such Grantor. Each such
deposit of Proceeds of Accounts shall be accompanied by a report identifying in reasonable detail
the nature and source of the payments included in the deposit.

          (c) At the Collateral Agent’s request at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall deliver to the Collateral Agent all original
and other documents evidencing, and relating to, the

13

 

agreements and transactions which gave rise to the Accounts, including all original orders,
invoices and shipping receipts.

          (d) Upon the occurrence and during the continuance of an Event of Default, a Grantor shall not
grant any extension of the time of payment of any of the Accounts, compromise, compound or settle
the same for less than the full amount thereof, release, wholly or partly, any person liable for
the payment thereof, or allow any credit or discount whatsoever thereon if the Collateral Agent
shall have instructed the Grantors not to grant or make any such extension, credit, discount,
compromise or settlement under any circumstances during the continuance of such Event of Default.

          (e) At the direction of the Collateral Agent, upon the occurrence and during the continuance
of an Event of Default, each Grantor shall grant to the Collateral Agent to the extent assignable,
an irrevocable, non-exclusive, fully paid-up, royalty-free, worldwide license to use, assign,
license or sublicense any of the Intellectual Property now owned or hereafter acquired by such
Grantor. Such license shall include access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or printout thereof.

          5.2 Communications with Credit Parties; Grantors Remain Liable. (a) The Collateral
Agent in its own name or in the name of others may at any time after the occurrence and during the
continuance of an Event of Default, after giving reasonable notice to the relevant Grantor of its
intent to do so, communicate with obligors under the Accounts to verify with them to the Collateral
Agent’s satisfaction the existence, amount and terms of any Accounts. The Collateral Agent shall
have the absolute right to share any information it gains from such inspection or verification with
any Secured Party.

          (b) Upon the written request of the Collateral Agent at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall notify obligors on the Accounts
that the Accounts have been assigned to the Collateral Agent for the ratable benefit of the Secured
Parties and that payments in respect thereof shall be made directly to the Collateral Agent.

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Accounts to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.
Neither the Collateral Agent nor any Secured Party shall have any obligation or liability under any
Account (or any agreement giving rise thereto) by reason of or arising out of this Security
Agreement or the receipt by the Collateral Agent or any Secured Party of any payment relating
thereto, nor shall the Collateral Agent or any Secured Party be obligated in any manner to perform
any of the obligations of any Grantor under or pursuant to any Account (or any agreement giving
rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any
payment received by it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or

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to collect the payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

          5.3 Proceeds to be Turned Over To Collateral Agent. In addition to the rights of the
Collateral Agent and the Secured Parties specified in Section 5.1 with respect to payments of
Accounts, if an Event of Default shall occur and be continuing and the Collateral Agent so requires
by notice in writing to the relevant Grantor (it being understood that the exercise of remedies by
the Secured Parties in connection with an Event of Default under Section 11.5 of the Credit
Agreement shall be deemed to constitute a request by the Collateral Agent for the purposes of this
sentence and in such circumstances, no such written notice shall be required), all Proceeds
received by any Grantor consisting of cash, checks and other near-cash items shall be held by such
Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral
Agent in the exact form received by such Grantor (duly endorsed by such Grantor to the Collateral
Agent, if required). All Proceeds received by the Collateral Agent hereunder shall be held by the
Collateral Agent in a Collateral Account maintained under its dominion and control and on terms and
conditions reasonably satisfactory to the Collateral Agent. All Proceeds while held by the
Collateral Agent in a Collateral Account (or by such Grantor in trust for the Collateral Agent and
the Secured Parties) shall continue to be held as collateral security for all the Obligations and
shall not constitute payment thereof until applied as provided in Section 5.4.

          5.4 Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection or sale of the Collateral as well as any Collateral consisting of cash, at any time
after receipt as follows:

     (i) first, to the payment of all reasonable and documented costs and expenses incurred
by the Collateral Agent in connection with such collection or sale or otherwise in
connection with this Security Agreement, the other Credit Documents or any of the
Obligations, including all court costs and the reasonable fees and expenses of its agents
and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or
under any other Credit Document on behalf of any Grantor and any other reasonable and
documented costs or expenses incurred in connection with the exercise of any right or
remedy hereunder or under any other Credit Document;

     (ii) second, to the Secured Parties, an amount equal to all Obligations owing to them
on the date of any distribution, and, if such moneys shall be insufficient to pay such
amounts in full, then ratably (without priority of any one over any other) to such Secured
Parties in proportion to the unpaid amounts thereof; and

     (iii) third, any surplus then remaining shall be paid to the Grantors or their
successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct.

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Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale
granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent or such officer or
be answerable in any way for the misapplication thereof.

          5.5 Code and Other Remedies. If an Event of Default shall occur and be continuing,
the Collateral Agent may exercise in respect of the Collateral, in addition to all other rights and
remedies provided for herein or otherwise available to it, all the rights and remedies of a secured
party upon default under the UCC or any other applicable law and also may without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any
Lender or elsewhere for cash or on credit or for future delivery at such price or prices and upon
such other terms as are commercially reasonable irrespective of the impact of any such sales on the
market price of the Collateral. The Collateral Agent shall be authorized at any such sale (if it
deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to
Persons who will represent and agree that they are purchasing the Collateral for their own account
for investment and not with a view to the distribution or sale thereof, and, upon consummation of
any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. 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 law) all rights of redemption, stay and/or
appraisal that it now has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted. The Collateral Agent and any Secured Party shall have the right
upon any such public sale, and, to the extent permitted by law, upon any such private sale, to
purchase the whole or any part of the Collateral so sold, and the Collateral Agent or such Secured
Party may pay the purchase price by crediting the amount thereof against the Obligations. Each
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten 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. To the extent permitted by law, each Grantor hereby waives any
claim 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 sale was less than the price that 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. Each Grantor further agrees, at the Collateral
Agent’s request to assemble the Collateral and make it available to the Collateral Agent, at places
which the Collateral Agent shall reasonably select, whether at such Grantor’s premises or

16

 

elsewhere. The Collateral Agent shall apply the net proceeds of any action taken
by it pursuant to this subsection 5.5 in accordance with the provisions of subsection 5.4.

          5.6 Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the
fees and disbursements of any attorneys employed by the Collateral Agent or any Secured Party to
collect such deficiency.

          5.7 Amendments, etc. with Respect to the Obligations; Waiver of Rights. Each Grantor
shall remain obligated hereunder notwithstanding that, without any reservation of rights against
any Grantor and without notice to or further assent by any Grantor, (a) any demand for payment of
any of the Obligations made by the Collateral Agent or any other Secured Party may be rescinded by
such party and any of the Obligations continued, (b) the Obligations, or the liability of any other
party upon or for any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral
Agent or any other Secured Party, (c) the Credit Agreement, the other Credit Documents, the Letters
of Credit and any other documents executed and delivered in connection therewith and the Hedge
Agreements and any other documents executed and delivered in connection therewith and any documents
entered into with the applicable Administrative Agent or the Collateral Agent or any of its
respective affiliates in connection with treasury, depositary or cash management services or in
connection with any automated clearinghouse transfer of funds may be amended, modified,
supplemented or terminated, in whole or in part, as the applicable Administrative Agent (or the
Required Lenders, as the case may be, or, in the case of any Hedge Agreement or documents entered
into with the applicable Administrative Agent or any of its respective affiliates in connection
with treasury, depositary or cash management services or in connection with any automated
clearinghouse transfer of funds, the party thereto) may deem advisable from time to time, and (d)
any collateral security, guarantee or right of offset at any time held by the Collateral Agent or
any other Secured Party for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Collateral Agent nor any other Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it as security for
the Obligations or for this Security Agreement or any property subject thereto. When making any
demand hereunder against any Grantor, the Collateral Agent or any other Secured Party may, but
shall be under no obligation to, make a similar demand on any Borrower or any Grantor or any other
person, and any failure by the Collateral Agent or any other Secured Party to make any such demand
or to collect any payments from any Borrower or any Grantor or any other person or any release of
any Borrower or any Grantor or any other person shall not relieve any Grantor in respect of which a
demand or collection is not made or any Grantor not so released of its several obligations or
liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied,
or as a matter of law, of the Collateral Agent or any other Secured Party against

17

 

any Grantor. For the purposes hereof “demand” shall include the commencement and continuance
of any legal proceedings.

          6. The Collateral Agent.

          6.1 Collateral Agent’s Appointment as Attorneys-in-Fact, etc. (a) Each Grantor hereby
appoints, which appointment is irrevocable and coupled with an interest, effective upon and during
the occurrence of an Event of Default, the Collateral Agent and any officer or agent thereof, with
full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, for
the purpose of carrying out the terms of this Security Agreement, to take any and all appropriate
action and to execute any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Security Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Collateral Agent the power and right, on behalf of such
Grantor, either in the Collateral Agent’s name or in the name of such Grantor or otherwise, without
assent by such Grantor, to do any or all of the following, in each case after and during the
occurrence of an Event of Default and after written notice by the Collateral Agent of its intent to
do so:

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

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

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral;

     (iv) execute, in connection with any sale provided for in Section 5.5, any
endorsements, assignments or other instruments of conveyance or transfer with respect to
the Collateral;

     (v) obtain and adjust insurance required to be maintained by such Grantor or paid to
the Collateral Agent pursuant to Section 4.5;

18

 

     (vi) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Collateral
Agent or as the Collateral Agent shall direct;

     (vii) ask or demand for, collect and receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of or arising
out of any Collateral;

     (viii) sign and endorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral;

     (ix) commence and prosecute any suits, actions or proceedings at law or in equity in
any court of competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral;

     (x) defend any suit, action or proceeding brought against such Grantor with respect to
any Collateral (with such Grantor’s consent to the extent such action or its resolution
could materially affect such Grantor or any of its affiliates in any manner other than with
respect to its continuing rights in such Collateral);

     (xi) settle, compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the Collateral Agent may deem
appropriate (with such Grantor’s consent to the extent such action or its resolution could
materially affect such Grantor or any of its affiliates in any manner other than with
respect to its continuing rights in such Collateral);

     (xii) assign any Copyright, Patent or Trademark (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), throughout the world
for such term or terms, on such conditions, and in such manner, as the Collateral Agent
shall in its sole discretion determine; and

     (xiii) generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Collateral
Agent were the absolute owner thereof for all purposes, and 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 necessary to protect, preserve or realize upon the
Collateral and the Collateral Agent’s and the Secured Parties’ Security Interests therein
and to effect the intent of this Security Agreement, all as fully and effectively as such
Grantor might do.

Anything in this Section 6.1(a) to the contrary notwithstanding, the Collateral Agent agrees that
it will not exercise any rights under the power of attorney provided for in this Section 6.1(a)
unless an Event of Default shall have occurred and be continuing.

19

 

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) The expenses of the Collateral Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum equal to the
highest rate per annum at which interest would then be payable on any category of past due ABR
Loans under the Credit Agreement, from the date of payment by the Collateral Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the Collateral Agent on
demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Security Agreement are
coupled with an interest and are irrevocable until this Security Agreement is terminated and the
Security Interests created hereby are released.

          6.2 Duty of Collateral Agent. The Collateral Agent’s sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its possession, under Section
9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent
deals with similar property for its own account. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially equal to that which the Collateral Agent
accords its own property. Neither the Collateral Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person
or to take any other action whatsoever with regard to the Collateral or any part thereof. The
powers conferred on the Collateral Agent and the Secured Parties hereunder are solely to protect
the Collateral Agent’s and the Secured Parties’ interests 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.

          6.3 Authority of Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Security Agreement with respect to any action
taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any
option, voting right, request, judgment or other right or remedy provided for herein or resulting
or arising out of this Security Agreement shall, as between the Collateral Agent and the Secured
Parties, be governed by the Credit Agreement, and by such other agreements with respect thereto as
may exist from time to

20

 

time among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent
shall be conclusively presumed to be acting as agent for the applicable Secured Parties with full
and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation,
or entitlement, to make any inquiry respecting such authority.

          6.4 Security Interest Absolute. All rights of the Collateral Agent hereunder, the
security interest and all obligations of the Grantors hereunder shall be absolute and
unconditional.

          6.5 Continuing Security Interest; Assignments Under the Credit Agreement; Release.
(a) This Security Agreement shall remain in full force and effect and be binding in accordance with
and to the extent of its terms upon each Grantor and the successors and assigns thereof and shall
inure to the benefit of the Collateral Agent and the other Secured Parties and their respective
successors, indorsees, transferees and assigns until all Obligations under the Credit Documents
(other than any contingent indemnity obligations not then due) and the obligations of each Grantor
under this Security Agreement shall have been satisfied by payment in full, the Commitments shall
be terminated and no Letters of Credit shall be outstanding, notwithstanding that from time to time
during the term of the Credit Agreement and any Hedge Agreement the Credit Parties may be free from
any Obligations.

          (b) A Subsidiary Grantor shall automatically be released from its obligations hereunder and
the Security Interest in the Collateral of such Subsidiary Grantor shall be automatically released
upon the consummation of any transaction permitted under the Credit Agreement as a result of which
such Subsidiary Grantor ceases to be a Subsidiary Guarantor.

          (c) Upon any sale or other transfer by any Grantor of any Collateral that is permitted under
the Credit Agreement or upon the effectiveness of any written consent to the release of the
security interest granted hereby in any Collateral pursuant to Section 13.1 of the Credit
Agreement, the Security Interest in such Collateral shall be automatically released and such
Collateral sold free and clear of the Lien and Security Interests created hereby.

          (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c), the
Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all documents
that such Grantor shall reasonably request to evidence such termination or release. Any execution
and delivery of documents pursuant to this Section 6.5 shall be without recourse to or warranty by
the Collateral Agent.

          6.6 Reinstatement. Each Grantor further agrees that, if any payment made by any
Credit Party or other Person and applied to the Obligations is at any time annulled, avoided, set
aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to
be refunded or repaid, or the proceeds of Collateral are required to be returned by any Secured
Party to such Credit Party, its estate, trustee, receiver or any other party, including any
Grantor, under any bankruptcy law, state or

21

 

federal law, common law or equitable cause, then, to the extent of such payment or repayment,
any Lien or other Collateral securing such liability shall be and remain in full force and effect,
as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or
other Collateral securing such liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender), such Lien or other Collateral shall be reinstated in full force
and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect any Lien or other Collateral securing the obligations of any Grantor in respect
of the amount of such payment.

          7. Collateral Agent As Agent.

          (a) Citicorp North America, Inc. has been appointed to act as the Collateral Agent under the
Credit Agreement, by the Lenders under the Credit Agreement 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 the release or substitution of
Collateral), solely in accordance with this Security Agreement and the Credit Agreement,
provided that the Collateral Agent shall exercise, or refrain from exercising, any remedies
provided for in Section 5 in accordance with the instructions of Required Lenders. In furtherance
of the foregoing provisions of this Section 7(a), 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 ratable benefit of the
applicable Lenders and Secured Parties in accordance with the terms of this Section 7(a).

          (b) The Collateral Agent shall at all times be the same Person that is the Collateral Agent
under the Credit Agreement. Written notice of resignation by the Collateral Agent pursuant to
Section 12.9 of the Credit Agreement shall also constitute notice of resignation as Collateral
Agent under this Security Agreement; removal of the Collateral Agent shall also constitute removal
under this Security Agreement; and appointment of a Collateral Agent pursuant to Section 12.9 of
the Credit Agreement shall also constitute appointment of a successor Collateral Agent under this
Security Agreement. Upon the acceptance of any appointment as Collateral Agent under Section 12.9
of the Credit Agreement 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 Security Agreement, and the retiring or removed
Collateral Agent under this Security 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 Security 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

22

 

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 Security Agreement. After any retiring or removed Collateral
Agent’s resignation or removal hereunder as Collateral Agent, the provisions of this Security
Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under
this Security Agreement while it was Collateral Agent hereunder.

          (c) The Collateral Agent shall not be deemed to have any duty whatsoever with respect to any
Secured Party that is a counterparty to a Hedge Agreement the obligations under which constitute
Obligations, unless it shall have received written notice in form and substance satisfactory to the
Collateral Agent from a Grantor or any such Secured Party as to the existence and terms of the
applicable Hedge Agreement.

          8. Miscellaneous.

          8.1 Amendments in Writing. None of the terms or provisions of this Security Agreement
may be waived, amended, supplemented or otherwise modified except by a written instrument executed
by the affected Grantor and the applicable Administrative Agent in accordance with Section 13.1 of
the Credit Agreement.

          8.2 Notices. All notices, requests and demands pursuant hereto shall be made in
accordance with Section 13.2 of the Credit Agreement. All communications and notices hereunder to
any Subsidiary Grantor shall be given to it in care of the Company at the Company’s address set
forth in Section 13.2 of the Credit Agreement.

          8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Collateral Agent
nor any Secured Party shall by any act (except by a written instrument pursuant to Section 9.1
hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of
the Collateral Agent or any other Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Collateral Agent or any other Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that
the Collateral Agent or such other Secured Party would otherwise have on any future occasion. The
rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by law.

          8.4 Enforcement Expenses; Indemnification. (a) Each Grantor agrees to pay any and all
expenses (including all reasonable fees and disbursements of counsel) that may be paid or incurred
by any Secured Party in enforcing, or obtaining advice of

23

 

counsel in respect of, any rights with respect to, or collecting, any or all of the
Obligations and/or enforcing any rights with respect to, or collecting against, such Grantor under
this Security Agreement.

          (b) Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined to be payable with
respect to any of the Collateral or in connection with any of the transactions contemplated by this
Security Agreement.

          (c) Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Security Agreement to
the extent a Borrower would be required to do so pursuant to Section 12.7 of the Credit Agreement.

          (d) The agreements in this Section 9.4 shall survive repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Credit Documents.

          8.5 Successors and Assigns. The provisions of this Security Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Grantor may assign, transfer or delegate any of its rights
or obligations under this Security Agreement without the prior written consent of the Collateral
Agent except pursuant to a transaction permitted by the Credit Agreement.

          8.6 Counterparts. This Security Agreement may be executed by one or more of the
parties to this Security Agreement on any number of separate counterparts (including by facsimile
or other electronic transmission), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. A set of the copies of this Security Agreement signed by
all the parties shall be lodged with the Collateral Agent and the Company.

          8.7 Severability. Any provision of this Security Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

24

 

          8.8 Section Headings. The Section headings used in this Security Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

          8.9 Integration. This Security Agreement together with the other Credit Documents
represents the agreement of each of the Grantors with respect to the subject matter hereof and
there are no promises, undertakings, representations or warranties by the Collateral Agent or any
other Secured Party relative to the subject matter hereof not expressly set forth or referred to
herein or in the other Credit Documents.

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

          8.11 Submission To Jurisdiction Waivers. Each Grantor hereby irrevocably and
unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Security Agreement and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts from any
thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form
of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at
such other address of which the Collateral Agent shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right of the Collateral Agent or any
other Secured Party to effect service of process in any other manner permitted by law or
shall limit the right of the Collateral Agent or any Secured Party to sue in any other
jurisdiction; and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to
claim or recover in any legal action or proceeding referred to in this Section 8.11 any
special, exemplary, punitive or consequential damages.

25

 

          8.12 Acknowledgments. Each Grantor hereby acknowledges that:

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

     (b) neither the Collateral Agent nor any other Secured Party has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with this Security
Agreement or any of the other Credit Documents, and the relationship between the Grantors,
on the one hand, and the Collateral Agent and the other Secured Parties, on the other hand,
in connection herewith or therewith is solely that of debtor and creditor; and

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

          8.13 Additional Grantors. Each U.S. Subsidiary of the Company that is required to
become a party to this Security Agreement pursuant to Section 9.11 of the Credit Agreement shall
become a Grantor, with the same force and effect as if originally named as a Grantor herein, for
all purposes of this Security Agreement upon execution and delivery by such U.S. Subsidiary of a
written supplement substantially in the form of Annex A hereto. The execution and delivery
of any instrument adding an additional Grantor as a party to this Security Agreement shall not
require the consent of any other Grantor hereunder. The rights and obligations of each Grantor
hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as
a party to this Security Agreement.

          8.14 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT, ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

[Signature Pages Follow]

26

 

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

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES

WIRELESS (U.S.A.)

MANUFACTURING INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name: 	Adam H.  Clammer	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES U.S.

INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name:  	Adam H.  Clammer	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES

IMAGING (U.S.A.) INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name:  	
Adam H.  Clammer	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES

STORAGE (U.S.A.) INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name:  	
Adam H.  Clammer	 
	 	 	Title:  	 	 
	 

[Signature Page to U.S. Security Agreement]

 

 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES

WIRELESS (U.S.A.) INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name:  	
Adam H.  Clammer	 
	 	 	Title:  	President	 
	 

	 	 	 	 	 
	 	AVAGO TECHNOLOGIES U.S.

R&D INC., as Grantor

 	 
	 	By:  	/s/
Adam H.  Clammer 	 
	 	 	Name:  	
Adam H.  Clammer	 
	 	 	Title:  	Director	 
	 

[Signature Page to U.S. Security Agreement]

 

 

	 	 	 	 	 
	 	Citicorp North America, Inc., as 
Collateral Agent

 	 
	 	By:  	/s/
David Windnam	 
	 	 	Name:  	David Windnam	 
	 	 	Title:  	VP	 
	 

[Signature Page to U.S. Security Agreement]

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