Document:

exv10w6

 

EXECUTION VERSION

Exhibit 10.6

 

GUARANTEE AND COLLATERAL AGREEMENT

made by

CINEMARK HOLDINGS, INC.

CINEMARK, INC.,

CNMK HOLDING, INC.,

CINEMARK USA, INC.,

and certain of its Subsidiaries

in favor of

LEHMAN COMMERCIAL PAPER INC.,

as Administrative Agent

Dated as of October 5, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 1.	 	DEFINED TERMS	 	 	2	 
	 
	 	1.1	 	Definitions	 	 	2	 
	 
	 	1.2	 	Other Definitional Provisions	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 2.	 	GUARANTEE	 	 	6	 
	 
	 	2.1	 	Guarantee	 	 	6	 
	 
	 	2.2	 	Right of Contribution	 	 	7	 
	 
	 	2.3	 	No Subrogation	 	 	8	 
	 
	 	2.4	 	Amendments, etc. with respect to the Borrower Obligations	 	 	8	 
	 
	 	2.5	 	Guarantee Absolute and Unconditional	 	 	9	 
	 
	 	2.6	 	Reinstatement	 	 	10	 
	 
	 	2.7	 	Payments	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 3.	 	GRANT OF SECURITY INTEREST	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 4.	 	REPRESENTATIONS AND WARRANTIES	 	 	12	 
	 
	 	4.1	 	Representations in Credit Agreement	 	 	12	 
	 
	 	4.2	 	Title; No Other Liens	 	 	12	 
	 
	 	4.3	 	Perfected First Priority Liens	 	 	12	 
	 
	 	4.4	 	Jurisdiction of Organization; Chief Executive Office	 	 	12	 
	 
	 	4.5	 	Inventory and Equipment	 	 	12	 
	 
	 	4.6	 	Farm Products	 	 	12	 
	 
	 	4.7	 	Investment Property	 	 	13	 
	 
	 	4.8	 	Receivables	 	 	13	 
	 
	 	4.9	 	Intellectual Property	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 5.	 	COVENANTS	 	 	14	 
	 
	 	5.1	 	Covenants in Credit Agreement	 	 	14	 
	 
	 	5.2	 	Delivery of Instruments and Chattel Paper	 	 	14	 
	 
	 	5.3	 	Maintenance of Insurance	 	 	14	 
	 
	 	5.4	 	Payment of Obligations	 	 	15	 
	 
	 	5.5	 	Maintenance of Perfected Security Interest; Further Documentation	 	 	15	 
	 
	 	5.6	 	Changes in Locations, Name, etc	 	 	15	 
	 
	 	5.7	 	Notices	 	 	15	 
	 
	 	5.8	 	Investment Property	 	 	16	 
	 
	 	5.9	 	Receivables	 	 	17	 
	 
	 	5.10	 	Intellectual Property	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 6.	 	REMEDIAL PROVISIONS	 	 	19	 
	 
	 	6.1	 	Certain Matters Relating to Receivables	 	 	19	 
	 
	 	6.2	 	Communications with Obligors; Grantors Remain Liable	 	 	20	 
	 
	 	6.3	 	Pledged Stock	 	 	20	 
	 
	 	6.4	 	Proceeds to be Turned Over To Administrative Agent	 	 	21	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	6.5	 	Application of Proceeds	 	 	21	 
	 
	 	6.6	 	Code and Other Remedies	 	 	22	 
	 
	 	6.7	 	Registration Rights	 	 	22	 
	 
	 	6.8	 	Deficiency	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 7.	 	THE ADMINISTRATIVE AGENT	 	 	23	 
	 
	 	7.1	 	Administrative Agent’s Appointment as Attorney-in-Fact, etc	 	 	23	 
	 
	 	7.2	 	Duty of Administrative Agent	 	 	25	 
	 
	 	7.3	 	Execution of Financing Statements	 	 	25	 
	 
	 	7.4	 	Authority of Administrative Agent	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	SECT
	 	ION 8.	 	MISCELLANEOUS	 	 	26	 
	 
	 	8.1	 	Amendments in Writing	 	 	26	 
	 
	 	8.2	 	Notices	 	 	26	 
	 
	 	8.3	 	No Waiver by Course of Conduct; Cumulative Remedies	 	 	26	 
	 
	 	8.4	 	Enforcement Expenses; Indemnification	 	 	26	 
	 
	 	8.5	 	Successors and Assigns	 	 	27	 
	 
	 	8.6	 	Set-Off	 	 	27	 
	 
	 	8.7	 	Counterparts	 	 	27	 
	 
	 	8.8	 	Severability	 	 	27	 
	 
	 	8.9	 	Section Headings	 	 	28	 
	 
	 	8.10	 	Integration	 	 	28	 
	 
	 	8.11	 	GOVERNING LAW	 	 	28	 
	 
	 	8.12	 	Submission To Jurisdiction; Waivers	 	 	28	 
	 
	 	8.13	 	Acknowledgments	 	 	28	 
	 
	 	8.14	 	Additional Grantors	 	 	29	 
	 
	 	8.15	 	Releases	 	 	29	 
	 
	 	8.16	 	WAIVER OF JURY TRIAL	 	 	29	 
	 
	 	8.17	 	Additional Waiver	 	 	29	 

ii

 

	 	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1

	 	Description of Pledged Securities
	Schedule 2

	 	Filings and Other Actions Required to Perfect Security Interest
	Schedule 3

	 	Jurisdiction of Organization, Identification Number and Location of
Chief Executive Office
	Schedule 4

	 	Locations of Inventory and Equipment
	Schedule 5

	 	Receivables
	Schedule 6

	 	Intellectual Property
	Schedule 7

	 	Certificated LLC Interests
	 
	 	 
	Annexes
	 	 
	 
	 	 
	Annex I

	 	Assumption Agreement
	Annex II

	 	Acknowledgment and Consent

iii

 

          GUARANTEE AND COLLATERAL AGREEMENT, dated as of October 5 2006, made by each of the
signatories hereto (together with any other entity that may become a party hereto as provided
herein, the “Grantors”), in favor of LEHMAN COMMERCIAL PAPER INC., as Administrative Agent
(in such capacity, the “Administrative Agent”) for the benefit of the Secured Parties (as
defined below), including the banks, other financial institutions and other entities (the
“Lenders”) from time to time parties to the Credit Agreement, dated as of October 5, 2006
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among CINEMARK HOLDINGS, INC., a Delaware corporation (together with any of its permitted
successors and assigns, the “Parent”), CINEMARK, INC., a Delaware corporation (together
with any of its permitted successors and assigns, “Holdings”), CNMK HOLDING, INC., a
Delaware corporation, CINEMARK USA, INC., a Texas corporation (together with any of its permitted
successors and assigns, the “Borrower”), the Lenders parties thereto, LEHMAN BROTHERS INC.
and MORGAN STANLEY SENIOR FUNDING, INC., as joint lead arrangers and joint bookrunners (in such
capacity, the “Arrangers”), MORGAN STANLEY SENIOR FUNDING, INC., as syndication agent (in
such capacity, the “Syndication Agent”), BNP PARIBAS and GENERAL ELECTRIC CAPITAL
CORPORATION, as co-documentation agents (in such capacity, the “Co-Documentation Agents”),
and the Administrative Agent.

W I T N E S S E T H :

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

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

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have
executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the
Secured Parties;

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

          WHEREAS, this Agreement is necessary and convenient to the conduct, promotion and attainment
of the business of the Borrower and each other Grantor;

          NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and
the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative
Agent, for the ratable benefit of the Secured Parties, as follows:

1 

 

SECTION 1. DEFINED TERMS

          1.1 Definitions. (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 and the
following terms are used herein as defined in the New York UCC: Accounts, Certificated Security,
Chattel Paper, Commercial Tort Claims, Documents, Equipment, Farm Products, General Intangibles,
Goods, Instruments, Inventory, Letter-of-Credit Rights and Supporting Obligations.

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

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

     “Borrower Credit Agreement Obligations”: the collective reference to the
unpaid principal of and interest on the Loans and Reimbursement Obligations and all other
obligations and liabilities of the Borrower (including, without limitation, interest
accruing at the then applicable rate provided in the Credit Agreement after the maturity of
the Loans and Reimbursement Obligations and interest accruing at the then applicable rate
provided in the Credit Agreement after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) to the Administrative Agent or any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred, which may arise
under, out of, or in connection with, the Credit Agreement, this Agreement, or the other
Loan Documents, or any Letter of Credit, or any other document made, delivered or given in
connection therewith, in each case whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Administrative Agent or to the Secured Parties
that are required to be paid by the Borrower pursuant to the terms of any of the foregoing
agreements).

     “Borrower Hedge Agreement Obligations”: the collective reference to all
obligations and liabilities of the Borrower (including, without limitation, interest
accruing at the then applicable rate provided in any Specified Hedge Agreement after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) to any Qualified Counterparty, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, any Specified
Hedge Agreement or any other document made, delivered or given in connection therewith, in
each case whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the relevant Qualified Counterparty that are required to be paid
by the Borrower pursuant to the terms of any Specified Hedge Agreement).

“Borrower Obligations”: the collective reference to (i) the Borrower Credit
Agreement Obligations, (ii) the Borrower Hedge Agreement Obligations, but only to the

2 

 

extent
that, and only so long as, the Borrower Credit Agreement Obligations are secured and
guaranteed pursuant hereto, and (iii) all other obligations and liabilities of the Borrower,
whether direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, this Agreement
(including, without limitation, all fees and disbursements of counsel to the Administrative
Agent or to the Secured Parties that are required to be paid by the Borrower pursuant to the
terms of this Agreement).

     “Collateral”: as defined in Section 3.

     “Collateral Account”: any collateral account established by the Administrative
Agent as provided in Section 6.1 or 6.4.

     “Copyrights”: (i) all copyrights arising under the laws of the United States
or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished (including, without limitation, those listed in Schedule
6), all registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and applications in
the United States Copyright Office, and (ii) the right to obtain all renewals thereof.

     “Copyright Licenses”: any written agreement naming any Grantor as licensor or
licensee (including, without limitation, those listed in Schedule 6), granting any
right under any Copyright, including, without limitation, the grant of rights to
manufacture, distribute, exploit and sell materials derived from any Copyright.

     “Deposit Account”: as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including, without limitation, any demand, time, savings,
passbook or like account maintained with a depositary institution.

     “Excluded Assets”: (i) Capital Stock of Unrestricted Subsidiaries which are
Foreign Subsidiaries, (ii) foreign intellectual property, (iii) subject to Section 5.8(e),
the Capital Stock of Fandango, Inc., Laredo Theatre, Ltd., Greeley, Ltd., NCM Holdings and
National CineMedia, LLC held by any Grantor to the extent and so long as such Capital Stock
is subject to the restrictions on pledge (such as rights of first refusal or similar rights)
set forth in the relevant stockholders agreement or partnership agreement and (iv) any
property to the extent that a grant of a security interest in or lien on such property is
prohibited by any Requirement of Law of a Governmental Authority, requires a consent not
obtained of any Governmental Authority pursuant to such Requirement of Law or is prohibited
by, or constitutes a breach or default under or results in the termination of (or the
creation of a right of termination with respect to) or requires any consent not obtained
under, any contract, license, agreement, instrument or other document evidencing or giving
rise to such property or is prohibited by any contract creating a Lien on such property
permitted by Section 7.3 of the Credit Agreement, except to the extent that such Requirement
of Law or the term in such contract, license, agreement, instrument or other document
providing for such prohibition, breach, default or termination or requiring such consent is
ineffective under applicable law.

     “Foreign Subsidiary”: any Subsidiary organized under the laws of any
jurisdiction outside the United States of America.

3 

 

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

     “Guarantor Hedge Agreement Obligations”: the collective reference to all
obligations and liabilities of a Guarantor (including, without limitation, interest accruing
at the then applicable rate provided in any Specified Hedge Agreement after the filing of
any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to such Guarantor, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) to any Qualified Counterparty, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, any Specified
Hedge Agreement or any other document made, delivered or given in connection therewith, in
each case whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the relevant Qualified Counterparty that are required to be paid
by such Guarantor pursuant to the terms of any Specified Hedge Agreement).

     “Guarantor Obligations”: with respect to any Guarantor, the collective
reference to (i) any Guarantor Hedge Agreement Obligations of such Guarantor, but only to
the extent that, and only so long as, the other Obligations of such Guarantor are secured
and guaranteed pursuant hereto, and (ii) all obligations and liabilities of such Guarantor
which may arise under or in connection with this Agreement (including, without limitation,
Section 2) or any other Loan Document to which such Guarantor is a party, in each case
whether on account of guarantee obligations, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and disbursements of
counsel to the Administrative Agent or to the Secured Parties that are required to be paid
by such Guarantor pursuant to the terms of this Agreement or any other Loan Document).

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

     “Intellectual Property”: the collective reference to all rights, priorities
and privileges relating to intellectual property arising under United States laws,
including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the
Patent Licenses, the Trademarks and the Trademark 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.

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

     “Investment Property”: the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than
any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”) and
(ii) whether or not constituting “investment property” as so defined, all Pledged Notes
and all Pledged Stock.

     “Issuers”: the collective reference to each issuer of any Investment Property.

4 

 

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

     “Obligations”: (i) in the case of the Borrower, the Borrower Obligations, and
(ii) in the case of each Guarantor, its Guarantor Obligations.

     “Patents”: (i) all letters patent of the United States or any political
subdivision thereof, all reissues and extensions thereof and all goodwill associated
therewith, including, without limitation, any of the foregoing referred to in Schedule
6, (ii) all applications for letters patent of the United States and all divisions,
continuations and continuations-in-part thereof, including, without limitation, any of the
foregoing referred to in Schedule 6, and (iii) all rights to obtain any reissues or
extensions of the foregoing.

     “Patent License”: all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use or sell any invention covered in
whole or in part by a Patent, including, without limitation, any of the foregoing referred
to in Schedule 6.

     “Pledged Notes”: all promissory notes listed on Schedule 1, all
Intercompany Notes at any time issued to any Grantor and all other promissory notes issued
to or held by any Grantor (other than (i) promissory notes issued in connection with
extensions of trade credit by any Grantor in the ordinary course of business and (ii)
promissory notes the aggregate face amount of which are not in excess of $100,000).

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

     “Pledged Stock”: the shares of Capital Stock listed on Schedule 1,
together with any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the Capital Stock of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect; provided that in no event
shall more than 65% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign
Subsidiary be required to be pledged hereunder.

     “Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of
the Uniform Commercial Code in effect in the State of New York on the date hereof and, in
any event, including, without limitation, all dividends or other income from the Investment
Property, collections thereon or distributions or payments with respect thereto.

     “Receivable”: any right to payment for goods sold or leased or for services
rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and
whether or not it has been earned by performance (including, without limitation, any
Account).

     “Secured Parties”: the collective reference to the Administrative Agent, the
Lenders (including any Issuing Lender in its capacity as Issuing Lender) and any Qualified
Counterparty.

5 

 

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

     “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and all goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any State thereof or any
political subdivision thereof, or otherwise, and all common-law rights related thereto,
including, without limitation, any of the foregoing referred to in Schedule 6, and
(ii) the right to obtain all renewals thereof.

     “Trademark License”: any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including, without limitation,
any of the foregoing referred to in Schedule 6.

          1.2 Other Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.

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

          (c) 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.

SECTION 2. GUARANTEE

          2.1 Guarantee. (a) (i) The Guarantors hereby, jointly and severally, unconditionally
and irrevocably, guarantee to the Administrative Agent, for the ratable benefit of the Secured
Parties and their respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at stated maturity, by
acceleration or otherwise) of the Borrower Obligations (other than, in the case of each Guarantor,
Borrower Obligations arising pursuant to clause (ii) of this Section 2.1(a) in respect of Guarantor
Hedge Agreement Obligations in respect of which such Guarantor is a primary obligor).

          (ii) The Borrower hereby unconditionally and irrevocably guarantees to the Administrative
Agent, for the ratable benefit of the Secured Parties and their respective successors, endorsees,
transferees and assigns, the prompt and complete payment and performance by each Guarantor when due
(whether at stated maturity, by acceleration or otherwise) of the Guarantor Hedge Agreement
Obligations of such Guarantor.

          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor

6 

 

under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 2.2).

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

          (d) The guarantee contained in this Section 2 shall remain in full force and effect until all
the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in
this Section 2 shall have been satisfied by payment in full, no Letter of Credit shall be
outstanding and the Commitments shall be terminated, notwithstanding that from time to time during
the term of the Credit Agreement the Borrower may be free from any Borrower Obligations and any or
all of the Guarantors may be free from their respective Guarantor Obligations.

          (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by the Administrative Agent or any Secured Party from the Borrower,
any of the Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations or the Guarantor Hedge Agreement Obligations
shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment received or
collected from such Guarantor in respect of the Borrower Obligations or the Guarantor Hedge
Agreement Obligations, respectively), remain liable for the Borrower Obligations and the Guarantor
Hedge Agreement Obligations up to the maximum liability of such Guarantor hereunder until the
Borrower Obligations and the Guarantor Hedge Agreement Obligations are paid in full, no Letter of
Credit shall be outstanding and the Commitments are terminated.

          2.2 Right of Contribution. (a) Each Subsidiary Guarantor hereby agrees that to the
extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment
made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from
and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of
such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and
conditions of Section 2.3. The provisions of this Section 2.2 shall in no respect limit the
obligations and liabilities of any Subsidiary Guarantor to the Administrative Agent and the
Secured Parties, and each Subsidiary Guarantor shall remain liable to the Administrative Agent
and the Secured Parties for the full amount guaranteed by such Subsidiary Guarantor hereunder.

          (b) The Borrower and each Guarantor agrees that to the extent that the Borrower or any
Guarantor shall have paid more than its proportionate share of any payment made hereunder in
respect of any Guarantor Hedge Agreement Obligation of any other Guarantor, the Borrower or such
Guarantor, as the case may be, shall be entitled to seek and receive contribution from and against
the Borrower and any other Guarantor which has not paid its proportionate share of such payment.

7 

 

          (c) The Borrower’s and each Guarantor’s right of contribution under this Section 2.2 shall be
subject to the terms and conditions of Section 2.3. The provisions of this Section 2.2 shall in no
respect limit the obligations and liabilities of the Borrower or any Guarantor to the
Administrative Agent and the Secured Parties, and the Borrower and each Guarantor shall remain
liable to the Administrative Agent and the Secured Parties for the full amount guaranteed by the
Borrower or such Guarantor hereunder.

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

          2.4 Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Borrower Obligations or the Guarantor Hedge Agreement Obligations made by the Administrative
Agent or any Secured Party may be rescinded by the Administrative Agent or such Secured Party and
any of the Borrower Obligations or the Guarantor Hedge Agreement Obligations continued, and the
Borrower Obligations or the Guarantor Hedge Agreement Obligations, or the liability of any other
Person upon or for any part thereof, or any collateral security or guarantee therefor or right of
offset with
respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or
any Secured Party, and the Credit Agreement and the other Loan Documents and any other documents
executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the Required Lenders or all
Lenders, as the case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any Secured Party for
the payment of the Borrower Obligations or the Guarantor Hedge Agreement Obligations may be sold,
exchanged, waived, surrendered or released. Neither the Administrative Agent nor any Secured Party
shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as
security for the Borrower Obligations or the Guarantor Hedge Agreement Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

8 

 

          2.5 Guarantee Absolute and Unconditional. (a) Each Guarantor waives any and all
notice of the creation, renewal, extension or accrual of any of the Borrower Obligations (other
than any notice with respect to any Guarantor Hedge Agreement Obligation with respect to which such
Guarantor is a primary obligor and to which it is entitled pursuant to the applicable Specified
Hedge Agreement) and notice of or proof of reliance by the Administrative Agent or any Secured
Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in
this Section 2; the Borrower Obligations, and any of them, shall conclusively be deemed to have
been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee contained in this Section 2; and all dealings between the Borrower and any of the
Guarantors, on the one hand, and the Administrative Agent and the Secured Parties, on the other
hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. Each Guarantor waives notice of acceleration, notice of
intent to accelerate, diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower or any of the Guarantors with respect to the Borrower
Obligations (other than any diligence, presentment, protest, demand or notice with respect to any
Guarantor Hedge Agreement Obligation with respect to which such Guarantor is a primary obligor and
to which it is entitled pursuant to the applicable Specified Hedge Agreement). Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (1) the validity or
enforceability of the Credit Agreement or any other Loan Document, any of the Borrower Obligations
or any other collateral security therefor or guarantee or right of offset with respect thereto at
any time or from time to time held by the Administrative Agent or any Secured Party, (2) any
defense, set-off or counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by the Borrower or any other Person against the Administrative
Agent or any Secured Party, or (3) any other circumstance whatsoever (with or without notice to or
knowledge of the Borrower or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for the Borrower Obligations, or of
such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any Secured Party may, but shall be under no
obligation to, make a similar demand on
or otherwise pursue such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee for the Borrower
Obligations or any right of offset with respect thereto, and any failure by the Administrative
Agent or any Secured Party to make any such demand, to pursue such other rights or remedies or to
collect any payments from the Borrower, any other Guarantor or any other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of offset, or any release
of the Borrower, any other Guarantor or any other Person or any such collateral security, guarantee
or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Secured Party against any Guarantor. For the
purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

          (b) The Borrower waives any and all notice of the creation, renewal, extension or accrual of
any of the Guarantor Hedge Agreement Obligations and notice of or proof of reliance by the
Administrative Agent or any Secured Party upon the guarantee by the Borrower contained

9 

 

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

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

          2.7 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Administrative Agent without set-off or counterclaim (i) in the case of obligations in
respect of Borrower Obligations arising under the Credit Agreement or any other

10 

 

Loan Document, in
Dollars at the Payment Office specified in the Credit Agreement and (ii) in the case of obligations
in respect of any Borrower Hedge Agreement Obligations or any Guarantor Hedge Agreement
Obligations, in the currency and at the place specified in the applicable Specified Hedge
Agreement.

SECTION 3. GRANT OF SECURITY INTEREST

          Each Grantor hereby grants to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in, and lien on, 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 such Grantor’s Obligations:

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Deposit Accounts;

          (d) all Documents;

          (e) all Equipment;

          (f) all General Intangibles;

          (g) all Instruments;

          (h) all Intellectual Property;

          (i) all Inventory;

          (j) all Investment Property;

          (k) all Letter-of-Credit Rights;

          (l) all Goods and other property not otherwise described above;

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

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

          provided, that the Collateral shall not include the Excluded Assets.

11 

 

SECTION 4. REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each
Grantor hereby represents and warrants to the Administrative Agent and each Lender that:

          4.1 Representations in Credit Agreement. In the case of each Guarantor, the
representations and warranties set forth in Section 4 of the Credit Agreement as they relate to
such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct, and the Administrative Agent and each
Lender shall be entitled to rely on each of them as if they were fully set forth herein,
provided that each reference in such representations and warranties to the Borrower’s
knowledge shall, for the purposes of this Section 4.1, be deemed to be a reference to such
Guarantor’s knowledge.

          4.2 Title; No Other Liens. Except for the security interest granted to the
Administrative Agent for the ratable benefit of the Secured Parties pursuant to this Agreement and
the other Liens permitted to exist on the Collateral by the Credit Agreement, such Grantor owns
each item of the Collateral free and clear of any and all Liens or claims of others. No financing
statement or other public notice with respect to all or any part of the Collateral is on file or of
record in any public office, except such as have been filed in favor of the Administrative Agent,
for the ratable benefit of the Secured Parties, pursuant to this Agreement or in connection with
Liens permitted by the Credit Agreement.

          4.3 Perfected First Priority Liens. The security interests granted pursuant to this
Agreement (a) upon completion of the filings and other actions specified on Schedule 2
(which, in the case of all filings and other documents referred to on said Schedule, have been
delivered to the Administrative Agent in completed and duly executed form) will constitute valid
perfected security interests in all of the Collateral in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations,
enforceable in accordance with the terms hereof against all creditors of such Grantor and any
Persons purporting to purchase any Collateral from such Grantor and (b) are prior to all other
Liens on the Collateral in existence on the date hereof except for Liens permitted by the Credit
Agreement which have priority over the Liens on the Collateral by operation of law or contract.

          4.4 Jurisdiction of Organization; Chief Executive Office. On the date hereof, such
Grantor’s jurisdiction of organization, identification number from the jurisdiction of organization
(if any), and the location of such Grantor’s chief executive office or sole place of business or
principal residence, as the case may be, are specified on Schedule 3. Such Grantor has
furnished to the Administrative Agent a certified charter, certificate of incorporation or other
organization document and long-form good standing certificate as of a date which is recent to the
date hereof.

          4.5 Inventory and Equipment. On the date hereof, the Inventory and the Equipment
(other than mobile goods) are kept at the locations listed on Schedule 4.

          4.6 Farm Products. None of the Collateral constitutes, or is the Proceeds of, Farm
Products.

12 

 

          4.7 Investment Property. (a) The shares of Pledged Stock pledged by such Grantor
hereunder constitute all the issued and outstanding shares of all classes of the Capital Stock of
each Issuer owned by such Grantor (other than any Capital Stock constituting Excluded Assets) or,
in the case of Foreign Subsidiary Voting Stock, if less, 65% of the outstanding Foreign Subsidiary
Voting Stock of each relevant Issuer.

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

          (c) Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

          (d) Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Investment Property pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except for Liens permitted by the Credit Agreement.

          4.8 Receivables. (a) Except as listed Schedule 5, no amount payable to such
Grantor under or in connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Administrative Agent to the extent required by Section 5.2.

          (b) None of the obligors on any Receivable is a Governmental Authority, except for Receivables
constituting not more than 25% of the face amount of all Receivables.

          (c) The amounts represented by such Grantor to the Secured Parties from time to time as owing
to such Grantor in respect of the Receivables will at such times be accurate in all material
respects.

          4.9 Intellectual Property. (a) Schedule 6 lists all material Intellectual
Property owned by such Grantor in its own name on the date hereof.

          (b) On the date hereof, all Intellectual Property of such Grantor described on Schedule
6 is valid, subsisting, unexpired and enforceable, has not been abandoned and does not infringe
the intellectual property rights of any other Person in any material respect.

          (c) Except as set forth in Schedule 6, on the date hereof, none of the Intellectual
Property is the subject of any licensing or franchise agreement pursuant to which such Grantor is
the licensor or franchisor.

          (d) No holding, decision or judgment has been rendered by any Governmental Authority which
would limit, cancel or question the validity of, or such Grantor’s rights in, any Intellectual
Property in any respect that could reasonably be expected to have a Material Adverse Effect.

13 

 

          (e) No action or proceeding is pending, or, to the knowledge of such Grantor, overtly
threatened, on the date hereof (i) seeking to limit, cancel or question the validity of any
material Intellectual Property or such Grantor’s ownership interest therein, or (ii) which, if
adversely determined, would have a Material Adverse Effect.

SECTION 5. COVENANTS

          Each Grantor covenants and agrees with the Administrative Agent and the Secured Parties that,
from and after the date of this Agreement until the Obligations shall have been paid in full, no
Letter of Credit shall be outstanding and the Commitments shall have terminated:

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

          5.2 Delivery of Instruments and Chattel Paper. If any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any Instrument, Certificated
Security or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall be
promptly delivered to the Administrative Agent, duly indorsed in a manner reasonably satisfactory
to the Administrative Agent, to be held as Collateral pursuant to this Agreement; provided,
that the Grantors shall not be obligated to deliver to the Administrative Agent any Instruments or
Chattel Paper held by any Grantor at any time to the extent that the aggregate face amount of all
such Instruments and Chattel Paper held by all Grantors at such time does not exceed $100,000.

          5.3 Maintenance of Insurance. (a) Such Grantor will maintain, with financially sound
and reputable companies, insurance policies (i) insuring the Inventory and Equipment against loss
by fire, explosion, theft and such other casualties as may be reasonably satisfactory to the
Administrative Agent and (ii) insuring such Grantor, the Administrative Agent and the Secured
Parties against liability for personal injury and property damage relating to such Inventory and
Equipment, such policies to be in such form and amounts and having such coverage as the Borrower
deems adequate for its business.

          (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least 30 days (10 days in the case
of failure to pay the premium) after receipt by the Administrative Agent of written notice thereof
and (ii) name the Administrative Agent as an additional insured party or loss payee.

          (c) The Borrower shall deliver to the Administrative Agent a report of a reputable insurance
broker with respect to such insurance substantially concurrently with the delivery by the Borrower
to the Administrative Agent of its audited financial statements for each fiscal year and such
supplemental reports with respect thereto as the Administrative Agent may from time to time
reasonably request.

14 

 

          5.4 Payment of Obligations. Such Grantor will pay and discharge or otherwise satisfy
at or before maturity or before they become delinquent, as the case may be, all taxes, assessments
and governmental charges or levies imposed upon the Collateral or in respect of income or profits
therefrom, as well as all claims of any kind (including, without limitation, claims for labor,
materials and supplies) against or with respect to the Collateral, except that no such charge need
be paid if the amount or validity thereof is currently being contested in good faith by appropriate
proceedings, reserves in conformity with GAAP with respect thereto have been provided on the books
of such
Grantor and such proceedings could not reasonably be expected to result in the sale,
forfeiture or loss of any material portion of the Collateral or any interest therein.

          5.5 Maintenance of Perfected Security Interest; Further Documentation. (a) Such Grantor shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 4.3 and shall defend
such security interest against the claims and demands of all Persons whomsoever except as permitted
by Section 4.2.

          (b) Such Grantor will furnish to the Administrative 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 with the Collateral as the Administrative Agent may reasonably
request, all in reasonable detail.

          (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver,
and have recorded, such further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including, without
limitation, (i) the filing of any financing or continuation statements under the Uniform Commercial
Code (or other similar laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of Investment Property, Deposit Accounts, Letter-of-Credit
Rights and any other relevant Collateral, taking any actions necessary to enable the Administrative
Agent to obtain “control” (within the meaning of the applicable Uniform Commercial Code) with
respect thereto.

          5.6 Changes in Locations, Name, etc. Such Grantor will not, except upon 15 days’
prior written notice to the Administrative Agent (or such shorter period as agreed to by the
Administrative Agent) and delivery to the Administrative Agent of all additional executed financing
statements and other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein:

     (i) change its jurisdiction of organization from that referred to in Section 4.3;
or 

     (ii) change its name.

          5.7 Notices. Such Grantor will advise the Administrative Agent and the Lenders promptly, in reasonable
detail, of:

15 

 

          (a) any Lien (other than security interests created hereby or Liens permitted under the Credit
Agreement) on any of the Collateral which would adversely affect the ability of the Administrative
Agent to exercise any of its remedies hereunder; and

          (b) the occurrence of any other event which could reasonably be expected to have a material
adverse effect on the aggregate value of the Collateral or on the security interests created
hereby.

          5.8 Investment Property. (a) If such Grantor shall become entitled to receive or
shall receive any certificate (including, without limitation, any certificate representing a
dividend or a distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Administrative Agent and the
Secured Parties, hold the same in trust for the Administrative Agent and the Secured Parties and
deliver the same forthwith to the Administrative Agent in the exact form received, duly indorsed by
such Grantor to the Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor, to be held by the Administrative
Agent, subject to the terms hereof, as additional collateral security for the Obligations. Any
sums paid upon or in respect of the Investment Property upon the liquidation or dissolution of any
Issuer shall be paid over to the Administrative Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of capital shall be made on
or in respect of the Investment Property, or any property shall be distributed upon or with respect
to the Investment Property pursuant to the recapitalization or reclassification of the capital of
any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless
otherwise subject to a perfected security interest in favor of the Administrative Agent, be
delivered to the Administrative Agent to be held by it hereunder as additional collateral security
for the Obligations. If any sums of money or property so paid or distributed in respect of the
Investment Property shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Administrative Agent, hold such money or property in trust for
the Secured Parties, segregated from other funds of such Grantor, as additional collateral security
for the Obligations. Notwithstanding the foregoing, the Grantors shall not be required to pay over
to the Administrative Agent or deliver to the Administrative Agent as Collateral any proceeds of
any liquidation or dissolution of any Issuer, or any distribution of capital or property in respect
of any Investment Property, to the extent that (i) such liquidation, dissolution or distribution,
if treated as a Disposition of the relevant Issuer, would be permitted by the Credit Agreement and
(ii) the proceeds thereof are applied as required or permitted by the Credit Agreement.

          (b) Without the prior written consent of the Administrative Agent, such Grantor will not (i)
vote to enable, or take any other action to permit, any Issuer to issue any stock or other equity
securities of any nature or to issue any other securities convertible into or granting the right to
purchase or exchange for any stock or other equity securities of any nature
of any Issuer, unless such securities are delivered to the Administrative Agent, concurrently
with the issuance thereof, to be held by the Administrative Agent as Collateral, (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Investment
Property or Proceeds thereof (except pursuant to a transaction permitted by the Credit Agreement),
(iii) create, incur or permit to exist any Lien or option in favor of, or any claim of

16 

 

any Person
with respect to, any of the Investment Property or Proceeds thereof, or any interest therein,
except for the Liens permitted by the Credit Agreement or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Administrative Agent to sell,
assign or transfer any of the Pledged Securities or Proceeds thereof (except to the extent
permitted by Section 7.14 of the Credit Agreement).

          (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 5.8(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) and 6.7 with respect to the Pledged
Securities issued by it.

          (d) Each Issuer that is a partnership or a limited liability company (other than the limited
liability companies listed on Schedule 7) (i) confirms that none of the terms of any equity
interest issued by it provides that such equity interest is a “security” within the meaning of
Sections 8-102 and 8-103 of the New York UCC (a “Security”), (ii) agrees that it will take
no action to cause or permit any such equity interest to become a Security, (iii) agrees that it
will not issue any certificate representing any such equity interest and (iv) agrees that if,
notwithstanding the foregoing, any such equity interest shall be or become a Security, such Issuer
will (and the Grantor that holds such equity interest hereby instructs such Issuer to) comply with
instructions originated by the Administrative Agent without further consent by such Grantor.

          (e) Each Grantor holding Capital Stock of Laredo Theatre, Ltd. agrees to use commercially
reasonable efforts to obtain the required consent of the other partners of Laredo Theatre, Ltd. to
the pledge of such Capital Stock under this Agreement.

          5.9 Receivables. (a) Other than in the ordinary course of business, such Grantor
will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or
settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially,
any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever
on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could
adversely affect the value thereof.

          (b) Such Grantor will deliver to the Administrative Agent a copy of each material demand,
notice or document received by it that questions or calls into doubt the validity or enforceability
of more than 10% of the aggregate amount of the then outstanding Receivables.

          5.10 Intellectual Property. (a) Such Grantor (either itself or through licensees) will (i) unless a Responsible
Officer determines that is it is not in the best interest of such Grantor, continue to use each
material Trademark in order to maintain such Trademark in full force free from any claim of
abandonment for non-use, (ii) use such Trademark with the appropriate notice of registration and
all other notices and legends required by applicable Requirements of Law, (iii) not adopt or use
any mark which is confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall obtain a perfected
security interest in such mark pursuant to this Agreement, and (iv) unless a Responsible Officer
determines that is it is not in the best interest of

17 

 

such Grantor, not (and not permit any licensee
or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may
become invalidated or impaired in any way.

          (b) Unless a Responsible Officer determines that is it is not in the best interest of such
Grantor, such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material Patent may become forfeited, abandoned or dedicated to the public.

          (c) Unless a Responsible Officer determines that is it is not in the best interest of such
Grantor, such Grantor (either itself or through licensees) (i) will employ each material Copyright
and (ii) will not (and will not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby any material portion of the Copyrights may become invalidated
or otherwise impaired. Unless a Responsible Officer determines that is it is not in the best
interest of such Grantor, such Grantor will not (either itself or through licensees) do any act
whereby any material portion of the Copyrights may fall into the public domain.

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

          (e) Such Grantor will notify the Administrative Agent promptly if it knows, or has reason to
know, that any application or registration relating to any material Intellectual Property may
become forfeited, abandoned or dedicated to the public, or of any adverse determination or
development (including, without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or
the validity of, any material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

          (f) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within 20 Business Days after the last day of the fiscal quarter
in which such filing occurs. Upon request of the Administrative Agent, such Grantor shall execute
and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the
Administrative Agent may reasonably request to evidence the Administrative Agent’s and the Secured
Parties’ security interest in any Copyright, Patent or
Trademark and the goodwill and General Intangibles of such Grantor relating thereto or
represented thereby.

          (g) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency or any political subdivision thereof, to maintain and pursue
each application relating to any material Intellectual Property (and to obtain the relevant
registration) and to maintain each registration of the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and affidavits of
incontestability.

18 

 

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

SECTION 6. REMEDIAL PROVISIONS

          6.1 Certain Matters Relating to Receivables. (a) The Administrative Agent shall have
the right, at any time after the occurrence and during the continuance of an Event of Default, to
make test verifications of the Receivables in any manner and through any medium that it reasonably
considers advisable, and each Grantor shall furnish all such assistance and information as the
Administrative Agent may reasonably require in connection with such test verifications. At any
time and from time to time after the occurrence and during the continuance of an Event of Default,
upon the Administrative Agent’s request and at the expense of the relevant Grantor, such Grantor
shall cause independent public accountants or others satisfactory to the Administrative Agent to
furnish to the Administrative Agent reports showing reconciliations, aging and test verifications
of, and trial balances for, the Receivables.

          (b) The Administrative Agent hereby authorizes each Grantor to collect such Grantor’s
Receivables, subject to the Administrative Agent’s direction and control after the occurrence and
during the continuance of an Event of Default, and the Administrative Agent may curtail or
terminate during the continuance of such Event of Default said authority at any time after the
occurrence and during the continuance of an Event of Default. If required by the Administrative
Agent at any time after the occurrence and during the continuance of an Event of Default, any
payments of Receivables, 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 indorsed by
such Grantor to the Administrative Agent if required, in a Collateral Account maintained under the
sole dominion and control of the Administrative Agent, subject to withdrawal by the Administrative
Agent for the account of the Secured Parties only as provided in Section 6.5, and (ii) until so
turned over, shall be held by such Grantor in trust for the Administrative Agent and the Secured
Parties, segregated from other funds of such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

          (c) At any time after the occurrence and during the continuance of an Event of Default, at the
Administrative Agent’s request, each Grantor shall deliver to the Administrative Agent all original
and other documents evidencing, and relating to, the agreements and transactions which gave rise to
the Receivables, including, without limitation, all original orders, invoices and shipping
receipts.

          (d) At any time after the occurrence and during the continuance of an Event of Default, each
Grantor will cooperate with the Administrative Agent to establish a system of lockbox accounts,
under the sole dominion and control of the Administrative Agent, into which all Receivables shall
be paid and from which all collected funds will be transferred to a Collateral Account.

19 

 

          6.2 Communications with Obligors; Grantors Remain Liable. (a) The Administrative
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 communicate with obligors under the Receivables to verify with
them to the Administrative Agent’s satisfaction the existence, amount and terms of any Receivables.

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

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables (or any agreement giving rise thereto) 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 Administrative Agent nor any Secured
Party shall have any obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the Administrative Agent
or any Secured Party of any payment relating thereto, nor shall the Administrative Agent or any
Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or
pursuant to any Receivable (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 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.

          6.3 Pledged Stock. (a) Unless an Event of Default shall have occurred and be
continuing and the Administrative Agent shall have given notice to the relevant Grantor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each
Grantor shall
be permitted to receive all cash dividends paid in respect of the Pledged Stock and all
payments made in respect of the Pledged Notes, in each case paid in the normal course of business
of the relevant Issuer, to the extent permitted in the Credit Agreement, and to exercise all voting
and corporate rights with respect to the Pledged Securities; provided, however,
that no vote shall be cast or corporate right exercised or other action taken which, in the
Administrative Agent’s reasonable judgment, would impair the Collateral or which would be
inconsistent with or result in any violation of any provision of the Credit Agreement, this
Agreement or any other Loan Document.

          (b) If an Event of Default shall occur and be continuing and the Administrative Agent shall
give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Pledged Securities and make application thereof to the Obligations
in the order set forth in Section 6.5, and (ii) any or all of the Pledged Securities shall be
registered in the name of the Administrative Agent or its nominee, and the Administrative Agent or
its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such
Pledged Securities at any meeting of shareholders of the relevant Issuer or Issuers or otherwise
and (y) any and all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Pledged Securities as if

20 

 

it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion any and all of the
Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such Pledged Securities,
and in connection therewith, the right to deposit and deliver any and all of the Pledged Securities
with any committee, depositary, transfer agent, registrar or other designated agency upon such
terms and conditions as the Administrative Agent may determine), all without liability except to
account for property actually received by it, but the Administrative Agent shall have no duty to
any Grantor to exercise any such right, privilege or option and shall not be responsible for any
failure to do so or delay in so doing.

          (c) Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged
by such Grantor hereunder to (i) comply with any instruction received by it from the Administrative
Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or further instructions
from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so
complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other
payments with respect to the Pledged Securities directly to the Administrative Agent.

          6.4 Proceeds to be Turned Over To Administrative Agent. In addition to the rights of
the Administrative Agent and the Secured Parties specified in Section 6.1 with respect to payments
of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any
Grantor consisting of cash, checks and Instruments shall be held by such Grantor in trust for the
Administrative 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 Administrative Agent in the
exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if
required). All Proceeds received
by the Administrative Agent hereunder shall be held by the Administrative Agent in a
Collateral Account maintained under its sole dominion and control. All Proceeds while held by the
Administrative Agent in a Collateral Account (or by such Grantor in trust for the Administrative
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 6.5.

          6.5 Application of Proceeds. At such intervals as may be agreed upon by the Borrower
and the Administrative Agent, or, if an Event of Default shall have occurred and be continuing, at
any time at the Administrative Agent’s election, the Administrative Agent shall apply all or any
part of Proceeds constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following
order:

     First, to pay incurred and unpaid fees and expenses of the Administrative Agent
under the Loan Documents;

     Second, to the Administrative Agent, for application by it towards payment of
amounts then due and owing and remaining unpaid in respect of the Obligations, pro
rata among the Secured Parties according to the amounts of the Obligations then due
and owing and remaining unpaid to the Secured Parties;

21 

 

     Third, to the Administrative Agent, for application by it towards prepayment of
the Obligations, pro rata among the Secured Parties according to the amounts
of the Obligations then held by the Secured Parties; and

     Fourth, any balance of such Proceeds remaining after the Obligations shall have
been paid in full, no Letters of Credit shall be outstanding and the Commitments shall have
terminated, shall be paid over to the Borrower or to whomsoever may be lawfully entitled to
receive the same.

          6.6 Code and Other Remedies. If an Event of Default shall occur and be continuing,
the Administrative Agent, on behalf of the Secured Parties, may exercise, in addition to all other
rights and remedies granted to them in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Obligations, all rights and remedies of a secured party
under the New York UCC or any other applicable law. Without limiting the generality of the
foregoing, the Administrative Agent, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law referred to below)
to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements
and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate
and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign,
give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale
or sales, at any exchange, broker’s board or office of the Administrative Agent or any Secured
Party or elsewhere upon such terms and conditions as it may deem advisable and at
such prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. The Administrative Agent or any Secured Party shall have the right
upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale
or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity
of redemption in any Grantor, which right or equity is hereby waived and released. Each Grantor
further agrees, at the Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative Agent at places which the Administrative Agent shall reasonably
select, whether at such Grantor’s premises or elsewhere. The Administrative Agent shall apply the
net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable
costs and expenses of every kind incurred in connection therewith or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and the Secured Parties hereunder, including, without limitation, reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, as
specified in Section 6.5, and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of law, including, without
limitation, Section 9-615(a)(3) of the New York UCC, need the Administrative Agent account for the
surplus, if any, to any Grantor. To the extent permitted by applicable law, each Grantor waives
all claims, damages and demands it may acquire against the Administrative Agent or any Secured
Party arising out of the exercise by them of any rights hereunder. If any notice of a proposed
sale or other disposition of Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other disposition.

          6.7 Registration Rights. (a) Each Grantor recognizes that the Administrative Agent
may be unable to effect a public sale of any or all the Pledged Stock, by reason of certain

22 

 

prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and
may be compelled to resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities for their own
account for investment and not with a view to the distribution or resale thereof. Each Grantor
acknowledges and agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that
it is not commercially unreasonable to conduct such a private sale. The Administrative Agent
shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer would agree to do
so.

     (b) Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done
all such acts as may be necessary to make such sale or sales of all or any portion of the Pledged
Stock pursuant to this Section 6.7 valid and binding and in compliance with any and all other
applicable Requirements of Law other than the filing of registration, qualification or similar
statements under the Securities Act or applicable state securities laws. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7 will cause irreparable
injury to the Administrative Agent and the Secured Parties, that the Administrative Agent and the
Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence,
that each and every covenant contained in this Section 6.7 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Credit Agreement.

          6.8 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 Administrative Agent or any Secured Party
to collect such deficiency.

SECTION 7. THE ADMINISTRATIVE AGENT

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

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

23 

 

purpose of collecting any and all
such moneys due under any Receivable 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 Administrative Agent may
request to evidence the Administrative 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, effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premiums therefor and the costs thereof;

     (iv) execute, in connection with any sale provided for in Section 6.6 or 6.7, any
indorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

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

          Anything in this Section 7.1(a) to the contrary notwithstanding, the Administrative Agent
agrees that it will not exercise any rights under the power of attorney provided for in this
Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

24 

 

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

          (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 7.1, together with interest thereon at a rate per annum equal to the rate
per annum at which interest would then be payable on past due Revolving Credit Loans that are Base
Rate Loans under the Credit Agreement, from the date of payment by the Administrative Agent to the
date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative
Agent on demand.

          (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 Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          7.2 Duty of Administrative Agent. The Administrative 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 New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative Agent deals with
similar property for its own account. Neither the Administrative 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 Administrative Agent and the Secured Parties hereunder are
solely to protect the Administrative Agent’s and the Secured Parties’ interests in the Collateral
and shall not impose any duty upon the Administrative Agent or any Secured Party to exercise any
such powers. The Administrative 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.

          7.3 Execution of Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Administrative Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the signature of such
Grantor in such form and in such offices as the Administrative Agent reasonably determines
appropriate to perfect the security interests of the Administrative Agent under this Agreement.
Each Grantor authorizes the Administrative Agent to use the collateral description “all personal
property other than Excluded Assets (as defined on Annex A attached hereto)” in any such financing
statements. Each Grantor hereby ratifies and authorizes the filing by the Administrative Agent of
any financing statement with respect to the Collateral made prior to the date hereof.

          7.4 Authority of Administrative Agent. Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect to any action taken
by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any
option, voting right, request, judgment or other right or remedy provided for herein or resulting
or arising out of this Agreement shall, as between the Administrative Agent and the

25 

 

Secured
Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as
may exist from time to time among them, but, as between the Administrative Agent and the Grantors,
the Administrative Agent shall be conclusively presumed to be acting as agent for the Secured
Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such authority.

SECTION 8. MISCELLANEOUS

          8.1 Amendments in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Section 10.1 of the Credit Agreement.

          8.2 Notices. All notices, requests and demands to or upon the Administrative Agent or
any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor care of the Borrower at the address specified in Section 10.2 of the
Credit Agreement.

          8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Administrative
Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section
8.1), 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. No failure to exercise, nor
any delay in exercising, on the part of the Administrative Agent or any 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 Administrative Agent or any
Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Administrative Agent or such Secured Party would otherwise have on
any future occasion. The rights and remedies 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) Subject to Section 10.5 of the Credit
Agreement, each Guarantor agrees to pay, or reimburse each Secured Party and the Administrative
Agent for, all its costs and expenses incurred in collecting against such Guarantor under the
guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this
Agreement and the other Loan Documents to which such Guarantor is a party, including, without
limitation, the fees and disbursements of counsel (including the allocated fees and expenses of
in-house counsel) to each Secured Party and of counsel to the Administrative Agent.

          (b) Each Guarantor agrees to pay, and to save the Administrative 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
Agreement.

          (c) Each Guarantor agrees to pay, and to save the Administrative Agent and the Secured Parties
harmless from, any and all liabilities, obligations, losses, damages, penalties,

26 

 

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

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

          8.5 Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of each Grantor and shall inure to the benefit of the Administrative Agent and the Secured
Parties and their successors and assigns; provided that no Grantor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior written consent of
the Administrative Agent.

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

          8.7 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument.

          8.8 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

27 

 

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

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

          8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          8.12 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 Agreement and the other Loan 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 Administrative Agent shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right 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 any special,
exemplary, punitive or consequential damages.

          8.13 Acknowledgments. Each Grantor hereby acknowledges that:

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

     (b) neither the Administrative Agent nor any Secured Party has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with this

28 

 

Agreement
or any of the other Loan Documents, and the relationship between the Grantors, on the one
hand, and the Administrative Agent and Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

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

          8.14 Additional Grantors. Each Subsidiary of the Borrower that is required to become
a party to this Agreement pursuant to Section 6.9 of the Credit Agreement shall become a Grantor
for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex 1 hereto.

          8.15 Releases. (a) At such time as the Loans, the Reimbursement Obligations and the
other Obligations (other than Borrower Hedge Agreement Obligations and Guarantor Hedge Agreement
Obligations) shall have been paid in full, the Commitments have been terminated and no Letters of
Credit shall be outstanding, the Collateral shall be released from the Liens created hereby, and
this Agreement and all obligations (other than those expressly stated to survive such termination)
of the Administrative Agent and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the Collateral shall revert to
the Grantors. At the request and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the Administrative Agent
hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination.

          (b) If any of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor in a transaction permitted by the Credit Agreement, then the Administrative
Agent, at the request and sole expense of such Grantor, shall execute and deliver to such
Grantor all releases or other documents reasonably necessary or desirable for the release of the
Liens created hereby on such Collateral. At the request and sole expense of the Borrower, a
Subsidiary Guarantor shall be released from its obligations hereunder in the event that all the
Capital Stock of such Subsidiary Guarantor shall be sold, transferred or otherwise disposed of in a
transaction permitted by the Credit Agreement; provided that the Borrower shall have
delivered to the Administrative Agent, at least 10 Business Days prior to the date of the proposed
release, a written request for release identifying the relevant Subsidiary Guarantor and the terms
of the sale or other disposition in reasonable detail, including the price thereof and any expenses
in connection therewith, together with a certification by the Borrower stating that such
transaction is in compliance with the Credit Agreement and the other Loan Documents.

          8.16 WAIVER OF JURY TRIAL. EACH GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF,
EACH AGENT AND EACH LENDER, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

          8.17 Additional Waiver. Each Guarantor waives all rights and defenses that such
Guarantor may have because the Borrower’s debt is secured by real property. This means, among other
things: (i) the Administrative Agent or the Lenders may collect from any Guarantor without first
foreclosing on any real or personal property collateral pledged by the Borrower and

29 

 

(ii) if the
Administrative Agent or the Lenders foreclose on any real property collateral pledged by the
Borrower, (A) the amount of the debt may be reduced only by the price for which that collateral is
sold at the foreclosure sale, even if the collateral is worth more than the sale price; and (B) the
Administrative Agent or the Lenders may collect from the Guarantors even if the Administrative
Agent or the Lenders, by foreclosing on the real property collateral, has destroyed any right any
Guarantor may have to collect from the Borrower. THIS IS AN UNCONDITIONAL AND IRREVOCABLE WAIVER OF
ANY RIGHTS AND DEFENSES ANY GUARANTOR MAY HAVE BECAUSE THE BORROWER’S DEBT IS SECURED BY REAL
PROPERTY. THESE RIGHTS AND DEFENSES INCLUDE, BUT ARE NOT LIMITED TO, ANY RIGHTS AND DEFENSES BASED
UPON SECTIONS 580a, 580b, 580d, OR 726 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. Each Guarantor
waives all rights and defenses arising out of an election of remedies by the Administrative Agent
or the Lenders, even though that election of remedies, such as a non-judicial foreclosure with
respect to security for an Obligation guaranteed by any Guarantor, has destroyed any Guarantor’s
rights of subrogation and reimbursement against the principal by operation of Section 580d of the
California Code of Civil Procedure or otherwise.

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	CINEMARK HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:		/s/ Michael Cavalier  	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President — General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President — General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CNMK HOLDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President — General Counsel 	 	 

Signature Page to Guarantee

 

 

	 	 	 	 	 	 	 
	 	 	CINEMARK LEASING COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK MEXICO (USA), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK PARTNERS I, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CNMK DELAWARE INVESTMENT PROPERTIES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President of HS General
Partner
CNMK Delaware Investments I, L.L.C. 	 	 

Signature Page to Guarantee

 

 

	 	 	 	 	 	 	 
	 	 	CNMK DELAWARE INVESTMENTS I, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President 	 	 
	 
	 	 	 	 	 	 
	 	 	CNMK DELAWARE INVESTMENTS II, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President 	 	 
	 
	 	 	 	 	 	 
	 	 	CNMK INVESTMENTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President 	 	 
	 
	 	 	 	 	 	 
	 	 	CNMK TEXAS PROPERTIES, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	GREELEY HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	LAREDO THEATRE, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	MULTIPLEX PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vatoni Ragsdale 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Vatoni Ragsdale 	 	 
	 

	 	Title:	 	President 	 	 

Signature Page to Guarantee

 

 

	 	 	 	 	 	 	 
	 	 	MULTIPLEX SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	SUNNYMEAD CINEMA CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	TRANS TEXAS CINEMA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	BRASIL HOLDINGS, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CENTURY THEATRES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	NBE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 

Signature Page to Guarantee

 

 

	 	 	 	 	 	 	 
	 	 	MARIN THEATRE MANAGEMENT, LLC	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CENTURY THEATRES NG, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CINEARTS SACRAMENTO, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CORTE MADERA THEATRES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	NOVATO THEATRES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	SAN RAFAEL THEATRES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 

Signature Page to Guarantee

 

 

	 	 	 	 	 	 	 
	 	 	NORTHBAY THEATRES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CENTURY THEATRES SUMMIT SIERRA, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	CENTURY THEATRES SEATTLE, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael Cavalier 	 	 
	 

	 	Title:	 	Senior Vice President —
General Counsel 	 	 
	 
	 	 	 	 	 	 

Signature Page to Guaranteeexv10w7

 

Exhibit 10.7

THIRD SUPPLEMENTAL INDENTURE

     THIRD SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of October 5, 2006,
among Cinemark USA, Inc., a Texas corporation (the “Company”), the subsidiaries of the Company
listed on the signature pages hereto (each a “New Guarantor” and collectively the “New
Guarantors”), and The Bank of New York Trust Company, N.A., as trustee under the indenture referred
to below (the “Trustee”).

W I T N
E S S E T H :

     WHEREAS, the Company, the Guarantors parties thereto and the Trustee are parties to that
certain Indenture (as supplemented by the First Supplemental Indenture dated as of May 7, 2003 and
the Second Supplemental Indenture dated as of November 11, 2004, and as such may be amended or
supplemented from time to time, the “Indenture”), dated as of February 11, 2003, providing for the
issuance of the Company’s 9% Senior Subordinated Notes due 2013 (the “Notes”);

     WHEREAS, Sections 4.18 and 11.6 of the Indenture provide that the Company shall cause each New
Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which each New
Guarantor shall unconditionally guarantee all the Company’s obligations under the Notes, the
Indenture and the Registration Rights Agreement pursuant to a Subsidiary Guarantee on the terms and
conditions set forth herein; and

     WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee, the Company and the New
Guarantors are authorized to execute and deliver this Supplemental Indenture;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the New Guarantors, the Company and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Agreement to Guarantee. Each New Guarantor hereby, jointly and severally with all
the other Guarantors, unconditionally guarantees the Company’s obligations under the Notes, the
Indenture and the Registration Rights Agreement on the terms and subject to the conditions set
forth in Article 11 of the Indenture and agrees to be bound by all other applicable provisions of
the Indenture, the Notes and the Registration Rights Agreement.

     2. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as
expressly supplemented hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore
or hereafter authenticated and delivered shall be bound hereby.

     3. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

     4. Trustee Makes No Representation. The Trustee makes no representation as to the
validity or sufficiency of this Supplemental Indenture.

     5. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     6. Effect of Headings. The Section headings herein are for convenience only and shall
not effect the construction thereof.

[SIGNATURE PAGE FOLLOWS]

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	THE COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alan W. Stock 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Alan W. Stock	 	 
	 

	 	 	 	President and Chief Operating Officer	 	 

SIGNATURE PAGE TO THIRD SUPPLEMENTAL INDENTURE

S-1

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to
be duly executed as of the date first above written.

THE NEW GUARANTORS:

CENTURY THEATRES, INC.

CENTURY THEATRES NG, LLC

CENTURY THEATRES SEATTLE, LLC

CENTURY THEATRES SUMMIT SIERRA, LLC

CINEARTS, LLC

CINEARTS SACRAMENTO, LLC

CORTE MADERA THEATRES, LLC

MARIN THEATRE MANAGEMENT, LLC

NBE, INC.

NORTHBAY THEATRES, LLC

NOVATO THEATRES, LLC

SAN RAFAEL THEATRES, LLC

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Cavalier 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael Cavalier	 	 
	 

	 	 	 	Senior Vice President-General Counsel and
Secretary	 	 

SIGNATURE
PAGE TO THIRD SUPPLEMENTAL INDENTURE

S-2

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to
be duly executed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	THE TRUSTEE:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ John C. Stohlmann	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	John C. Stohlmann	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 	 	 

SIGNATURE PAGE TO THIRD SUPPLEMENTAL INDENTURE

S-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]