Document:

exv10w3

Exhibit 10.3

 

 

INTERCREDITOR AGREEMENT

among

NCI BUILDING SYSTEMS, INC.,

as a Borrower or Guarantor,

CERTAIN DOMESTIC SUBSIDIARIES OF NCI BUILDING SYSTEMS, INC.,

as Borrowers or Guarantors

and

WELLS FARGO FOOTHILL, LLC

as the Working Capital Agent and the Working Capital Administrative Agent

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as the Term Loan Agent and the Term Loan Administrative Agent

and

WELLS FARGO BANK, NATIONAL ASSOCIATION

as the Control Agent

Dated as of October 20, 2009

 

 

 

 

Execution Copy

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1
	 	Definitions	 	 	3	 
	1.1
	 	Defined Terms	 	 	3	 
	1.2
	 	Terms Generally	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 2
	 	Lien Priorities	 	 	19	 
	2.1
	 	Scope of Collateral	 	 	19	 
	2.2
	 	Priority	 	 	19	 
	2.3
	 	Failure to Perfect	 	 	21	 
	2.4
	 	Prohibition on Contesting Liens	 	 	22	 
	2.5
	 	No New Liens	 	 	22	 
	2.6
	 	Similar Liens and Agreements	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 3
	 	Enforcement	 	 	24	 
	3.1
	 	Enforcement	 	 	24	 
	3.2
	 	Actions Upon Breach	 	 	30	 
	 
	 	 	 	 	 	 
	SECTION 4
	 	Payments	 	 	30	 
	4.1
	 	Application of Proceeds	 	 	30	 
	4.2
	 	Payment Turnover	 	 	32	 
	 
	 	 	 	 	 	 
	SECTION 5
	 	Other Agreements	 	 	32	 
	5.1
	 	Releases	 	 	32	 
	5.2
	 	Insurance	 	 	37	 
	5.3
	 	Control Agent for Perfection	 	 	38	 
	5.4
	 	Access to Term Loan Priority Collateral	 	 	40	 
	5.5
	 	Consent to Limited License	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 6
	 	Insolvency or Liquidation Proceedings	 	 	42	 
	6.1
	 	Use of Cash Collateral and Financing Issues	 	 	42	 
	6.2
	 	Sale Issues	 	 	43	 
	6.3
	 	Relief from the Automatic Stay	 	 	43	 
	6.4
	 	Adequate Protection	 	 	43	 
	6.5
	 	Separate Grants of Security and Separate Classification	 	 	44	 
	6.6
	 	Post-Petition Claims	 	 	45	 
	6.7
	 	Avoidance Issues	 	 	45	 
	6.8
	 	Expense Claims	 	 	45	 
	6.9
	 	Effectiveness in Insolvency or Liquidation Proceedings	 	 	45	 
	 
	 	 	 	 	 	 
	SECTION 7
	 	Reliance; Waivers; Etc.	 	 	46	 
	7.1
	 	Non-Reliance	 	 	46	 
	7.2
	 	No Warranties or Liability	 	 	47	 
	7.3
	 	No Waiver of Lien Priorities	 	 	48	 
	7.4
	 	Obligations Unconditional	 	 	50	 
	7.5
	 	Certain Notices	 	 	50	 
	 
	 	 	 	 	 	 
	SECTION 8
	 	Miscellaneous	 	 	51	 
	8.1
	 	Conflicts	 	 	51	 

 

 

	 	 	 	 	 	 	 
	8.2
	 	Effectiveness; Continuing Nature of this Agreement; Severability	 	 	51	 
	8.3
	 	Amendments; Waivers	 	 	51	 
	8.4
	 	Information Concerning Financial Condition of Company and its Subsidiaries	 	 	52	 
	8.5
	 	Subrogation	 	 	52	 
	8.6
	 	[Reserved]	 	 	52	 
	8.7
	 	SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL	 	 	53	 
	8.8
	 	Notices	 	 	54	 
	8.9
	 	Further Assurances	 	 	54	 
	8.10
	 	Designation of Additional Indebtedness; Joinder of Additional Agents	 	 	54	 
	8.11
	 	Binding on Successors and Assigns	 	 	55	 
	8.12
	 	Specific Performance	 	 	55	 
	8.13
	 	Headings	 	 	55	 
	8.14
	 	Counterparts	 	 	56	 
	8.15
	 	Authorization	 	 	56	 
	8.16
	 	No Third Party Beneficiaries	 	 	56	 
	8.17
	 	Provisions Solely to Define Relative Rights	 	 	56	 

 

 

     THIS INTERCREDITOR AGREEMENT (the “Agreement”), dated as of October 20, 2009, is
entered into by and among NCI BUILDING SYSTEMS, INC., a Delaware corporation (the
“Company”), those certain Domestic Subsidiaries of the Company from time to time party to
the Working Capital Credit Documents, the Term Loan Credit Documents or any Additional Documents as
borrowers or guarantors (together, with the Company, the “Grantors”), WACHOVIA BANK,
NATIONAL ASSOCIATION, in its capacity as administrative agent for the Term Loan Lenders referenced
below (in such capacity, together with its successors and assigns in such capacity, the “Term
Loan Administrative Agent”) and its capacity as collateral agent for the Term Loan Lenders
referenced below (in such capacity, together with its successors and assigns in such capacity, the
“Term Loan Agent”), WELLS FARGO FOOTHILL, LLC, in its capacity as administrative agent for
the Working Capital Lenders referenced below (in such capacity, the “Working Capital
Administrative Agent”) and its capacity as collateral agent for the Working Capital Lenders
referenced below (in such capacity, together with its successors and assigns in such capacity, the
“Working Capital Agent”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as
control agent for the Working Capital Agent, the Term Loan Agent and any Additional Agent (in such
capacity, together with its successors and assigns in such capacity, the “Control Agent”).

RECITALS:

     WHEREAS, certain of the Grantors, the financial institutions from time to time party thereto
as lenders (collectively, the “Term Loan Lenders”), the Term Loan Administrative Agent and
the Term Loan Agent are parties to that certain Amended and Restated Credit Agreement dated as of
the date hereof (as amended, restated, supplemented or modified from time to time, the “Initial
Term Loan Credit Agreement”), pursuant to which the Term Loan Lenders shall make a term loan
credit facility available to the Company secured by a first priority security interest in certain
assets of the Grantors and a second priority security interest in certain other assets of such
Grantors;

     WHEREAS, the Grantors, the financial institutions from time to time party thereto as lenders
(collectively, the “Working Capital Lenders”), the Working Capital Administrative Agent and
the Working Capital Agent are parties to that certain Loan and Security Agreement, dated as of the
date hereof (as amended, restated, supplemented or modified from time to time, the “Initial
Working Capital Credit Agreement”), pursuant to which the Working Capital Lenders shall make a
revolving credit facility available to the Grantors that are borrowers thereunder secured by a
first priority security interest in certain assets of the Grantors and a second priority security
interest in certain other assets of the Grantors;

     WHEREAS, pursuant to this Agreement, the Company may, from time to time, designate certain
additional Indebtedness as “Additional Indebtedness” by executing and delivering the Additional
Indebtedness Designation and by complying with the procedures set forth in Section 8.10 hereof, and
the holders of such Additional Indebtedness and any other applicable Additional Claimholder shall
thereafter constitute Additional Claimholder, and any Additional Agent (as hereinafter defined) for
any such Additional Claimholder shall thereafter constitute an Additional Agent, for all purposes
under this Agreement; and

     WHEREAS, the Working Capital Agent, for and on behalf of the Working Capital Claimholders, and
the Term Loan Agent, for and on behalf of the Term Loan Claimholders, desire to enter into this
Agreement to (i) confirm the relative priorities of their respective security interests in the
assets and properties of the Grantors, and (ii) provide for the orderly sharing among them, in
accordance with such priorities, of the proceeds of such assets and properties upon any foreclosure
thereon or other disposition thereof.

2

 

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and
other good and valuable consideration, the existence and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

SECTION 1

DEFINITIONS

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

     “Account” means, as to each Grantor, all present and future rights of such Person to payment
of a monetary obligation, whether or not earned by performance, which is not evidenced by chattel
paper or an instrument, (a) for property that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of, (b) for services rendered or to be rendered, (c) for a
secondary obligation incurred or to be incurred, or (d) arising out of the use of a credit or
charge card or information contained on or for use with the card.

     “Additional Agent” means any one or more agents, trustees or other representatives for or of
any one or more Additional Credit Facility Creditors, and shall include any replacement thereof or
successor thereto, as well as any Person designated as an “Agent” under any Additional Credit
Facility.

     “Additional Bank Products Affiliate” means any Additional Credit Facility Creditor or any
Affiliate of any Additional Credit Facility Creditor that has entered into a Bank Products
Agreement with a Grantor with the obligations of such Grantor thereunder being secured by one or
more Additional Collateral Documents.

     “Additional Borrower” means any Grantor that incurs or issues Additional Indebtedness.

     “Additional Cap Amount” has the meaning set forth in the definition of Additional Obligations.

     “Additional Claimholders” means, at any relevant time, the holder or holders of Additional
Obligations at such time, including without limitation any Additional Credit Facility Creditors,
any Additional Bank Products Affiliate and each Additional Agent, and all successors, assigns,
transferees and replacements thereof, as well as any Person designated as an “Additional
Claimholder” under any Additional Credit Facility; and with respect to any Additional Agent, shall
mean the Additional Claimholders for which such Additional Agent acts as Additional Agent.

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

     “Additional Collateral Disposition” has the meaning set forth in Section 5.1(b)(ii).

     “Additional Collateral Documents” means all “Security Documents” as defined in any Additional
Credit Facility, and in any event shall include all security agreements, mortgages, deeds of trust,
pledges and other collateral documents executed and delivered in connection with any Additional
Credit Facility, and any other agreement, document or instrument pursuant to which a Lien is
granted securing any Additional Obligations or under which rights or remedies with respect to such
Liens are governed, in each case as the same may be amended, restated, modified or supplemented
from time to time.

3

 

     “Additional Collateral Exercise of Remedies” has the meaning set forth in Section
5.1(b)(i).

     “Additional Credit Facilities” means any one or more agreements, instruments and documents
under which any Additional Indebtedness is or may be incurred, including without limitation any
credit agreements, loan agreements, indentures or other financing agreements, in each case as the
same may be amended, modified or supplemented from time to time, together with any other agreement
extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or
any portion of the Additional Obligations, whether by the same or any other lender, debtholder or
group of lenders or debtholders, or the same or any other agent, trustee or representative
therefor, and whether or not increasing the amount of any Indebtedness that may be incurred
thereunder.

     “Additional Credit Facility Creditors” means one or more holders of Additional Indebtedness
(or commitments therefor) that is or may be incurred under one or more Additional Credit
Facilities.

     “Additional Documents” means any Additional Credit Facilities, any Additional Guarantees, any
Additional Collateral Documents, any Bank Products Agreements between any Grantor and any
Additional Bank Products Affiliate, those other ancillary agreements as to which any Additional
Claimholder is a party or a beneficiary and all other agreements, instruments, documents and
certificates, now or hereafter executed by or on behalf of any Grantor or any of its respective
Subsidiaries or Affiliates and delivered to any Additional Agent in connection with any of the
foregoing or any Additional Credit Facility, and any other document or instrument executed or
delivered at any time in connection with any Additional Obligations, including any intercreditor or
joinder agreement among holders of Additional Obligations or among holders of Term Loan Obligations
and Additional Obligations, in each case as the same may be amended, modified or supplemented from
time to time.

     “Additional Effective Date” has the meaning set forth in Section 8.10(b).

     “Additional Guarantees” means any one or more guarantees of any Additional Obligations of any
Grantor by any other Grantor in favor of any Additional Claimholder.

     “Additional Indebtedness” means any Additional Specified Indebtedness that (1) is permitted to
be secured by a Lien (as defined below) on Collateral by

	(a)	 	prior to the Discharge of Working Capital Obligations, Section 10.2 of the Initial Working
Capital Credit Agreement (if the Initial Working Capital Credit Agreement is then in effect)
or the corresponding negative covenant restricting Liens contained in any other Working
Capital Credit Agreement then in effect if the Initial Working Capital Credit Agreement is not
then in effect (which covenant is designated in such Working Capital Credit Agreement as
applicable for purposes of this definition),

	(b)	 	prior to the Discharge of Term Loan Obligations, Section 7.3 of the Initial Term Loan Credit
Agreement (if the Initial Term Loan Credit Agreement is then in effect) or the corresponding
negative covenant restricting Liens contained in any other Term Loan Credit Agreement then in
effect (which covenant is designated in such Term Loan Credit Agreement as applicable for
purposes of this definition) and

	(c)	 	prior to the Discharge of Additional Obligations, any negative covenant restricting Liens
contained in any applicable Additional Credit Facility then in effect (which covenant is
designated in such Additional Credit Facility as applicable for purposes of this definition)
and

4

 

(2) is designated as “Additional Indebtedness” by the Company pursuant to an Additional
Indebtedness Designation and in compliance with the procedures set forth in Section 8.10.

As used in this definition of “Additional Indebtedness”, the term “Lien” shall have the meaning set
forth (x) for purposes of the preceding clause (1)(a), prior to the Discharge of Working Capital
Obligations, in Section 1 of the Initial Working Capital Credit Agreement (if the Initial Working
Capital Credit Agreement is then in effect), or in any other Working Capital Credit Agreement then
in effect (if the Initial Working Capital Credit Agreement is not then in effect), (y) for purposes
of the preceding clause (1)(b), prior to the Discharge of Term Loan Obligations, in Section 1.1 of
the Initial Term Loan Credit Agreement (if the Initial Term Loan Credit Agreement is then in
effect), or in any other Term Loan Credit Agreement then in effect, and (z) for purposes of the
preceding clause (1)(c), prior to the Discharge of Additional Obligations, in the applicable
Additional Credit Facility then in effect.

     “Additional Indebtedness Designation” means a certificate of the Company with respect to
Additional Indebtedness substantially in the form of Exhibit A attached hereto

     “Additional Indebtedness Joinder” means a joinder agreement executed by one or more Additional
Agents in respect of the Additional Indebtedness subject to an Additional Indebtedness Designation,
on behalf of one or more Additional Creditors in respect of such Additional Indebtedness,
substantially in the form of Exhibit B attached hereto

     “Additional Specified Indebtedness” means any Indebtedness that is or may from time to time be
incurred by any Grantor in compliance with:

	(a)	 	prior to the Discharge of Working Capital Obligations, Section 10.3 of the Initial Working
Capital Credit Agreement (if the Initial Working Capital Credit Agreement is then in effect)
or the corresponding negative covenant restricting Indebtedness contained in any other Working
Capital Credit Agreement then in effect if the Initial Working Capital Credit Agreement is not
then in effect (which covenant is designated in such Working Capital Credit Agreement as
applicable for purposes of this definition),

	(b)	 	prior to the Discharge of Term Loan Obligations, Section 7.2 of the Term Credit Agreement (if
the Initial Term Loan Credit Agreement is then in effect) or the corresponding negative
covenant restricting Indebtedness contained in any other Term Loan Credit Agreement then in
effect (which covenant is designated in such Term Loan Credit Agreement as applicable for
purposes of this definition) and

	(c)	 	any negative covenant restricting Indebtedness contained in any Additional Credit Facility
then in effect (which covenant is designated in such Additional Credit Facility as applicable
for purposes of this definition).

As used in this definition of “Additional Specified Indebtedness”, the term “Indebtedness” shall
have the meaning set forth (x) for purposes of the preceding clause (a), prior to the Discharge of
Working Capital Obligations, in Section 1 of the Initial Working Capital Credit Agreement (if the
Initial Working Capital Credit Agreement is then in effect), or in any other Working Capital Credit
Agreement then in effect (if the Initial Working Capital Credit Agreement is not then in effect),
(y) for purposes of the preceding clause (b), prior to the Discharge of Term Loan Obligations, in
Section 1.1 of the Initial Term Loan Credit Agreement (if the Initial Term Loan Credit Agreement is
then in effect), or in any other Term Loan Credit Agreement then in effect, and (z) for purposes of
the preceding clause (c), prior to the Discharge of Additional Obligations, in the applicable
Additional Credit Facility then in effect.

5

 

     “Additional Obligations” means any and all loans and all other obligations, liabilities and
indebtedness of every kind, nature and description owing by any Grantor whether now existing or
hereafter arising, whether arising before, during or after the commencement of any case with
respect to any Grantor under the Bankruptcy Code or any other Insolvency or Liquidation Proceeding
under (i) any Additional Credit Facilities, (ii) any other Additional Documents and (iii) any Bank
Products Agreements with any Additional Agent, any Additional Credit Facility Creditor or any
Affiliate of any Additional Credit Facility Creditor; provided that the aggregate principal
amount of, without duplication, any term loans, bonds, debentures, notes or similar instruments
(excluding, in any event, any Bank Product Debt) issued under any Additional Credit Facility in
excess of the amount thereof constituting Additional Specified Indebtedness (the “Additional Debt
Cap Amount”), shall not constitute Additional Obligations for purposes of this Agreement.
“Additional Obligations” shall include (x) all interest accrued or accruing (or which would, absent
commencement of an Insolvency or Liquidation Proceeding, accrue) in accordance with the rate
specified in the relevant Additional Document and (y) all fees, costs and charges incurred in
connection with the Additional Documents and provided for thereunder, in the case of each of clause
(x) and clause (y) whether before or after commencement of an Insolvency or Liquidation Proceeding
and irrespective of whether any claim for such interest, fees, costs or charges is allowed as a
claim in such Insolvency or Liquidation Proceeding.

     “Affiliate” means, with respect to a specified Person, any other Person which directly or
indirectly, through one or more intermediaries, controls or is controlled by or is under common
control with such Person, and without limiting the generality of the foregoing, includes (a) any
Person which beneficially owns or holds ten (10%) percent or more of any class of Voting Stock of
such Person or other equity interests in such Person, (b) any Person of which such Person
beneficially owns or holds ten (10%) percent or more of any class of Voting Stock or in which such
Person beneficially owns or holds ten (10%) percent or more of the equity interests and (c) any
director or executive officer of such Person. For the purposes of this definition, the term
“control” (including with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of Voting Stock, by agreement or otherwise.

     “Agent” means the Working Capital Agent, the Term Loan Agent or any Additional Agent, as
applicable.

     “Agent Parties” means (i) prior to the Discharge of Term Loan Obligations, the Term Loan
Agent, (ii) prior to the Discharge of Working Capital Obligations, the Working Capital Agent and
(iii) prior to the Discharge of Additional Obligations, any Additional Agent.

     “Aggregate Principal Exposure” means the aggregate principal amount of, without duplication,
any issued but undrawn letters of credit, any reimbursement obligations for drawn letters of
credit, term loans, revolving loans, bonds, debentures, notes or similar instruments (excluding, in
any event, Bank Product Debt) issued under the Working Capital Credit Documents, the Term Loan
Credit Documents, or any Additional Credit Facility and related applicable Additional Documents, as
applicable.

     “Agreement” means this Agreement, as amended, renewed, extended, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

     “Bank Products Agreement” means (x) any agreement pursuant to which a bank or other financial
institution agrees to provide any of the following products, services or facilities extended to any
Grantor by any Claimholder or any of its Affiliates: (a) Cash Management Services; (b) commercial

6

 

credit card and merchant card services; and (c) other banking products or services as may be
requested by any Grantor, other than letters of credit, and (y) any interest rate, foreign
currency, commodity or equity swap, collar, cap, floor or forward rate agreement, or other
agreement or arrangement designed to protect against fluctuations in interest rates or currency,
commodity or equity values (including, without limitation, any option with respect to any of the
foregoing and any combination of the foregoing agreements or arrangements), entered into between
any Grantor and any Claimholder or any of its Affiliates, and any confirmation executed in
connection with any such agreement or arrangement.

     “Bank Product Debt” of any Person means any obligation of such Person pursuant to any Bank
Products Agreement.

     “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended,
modified, succeeded or replaced from time to time.

     “Bankruptcy Law” means the Bankruptcy Code, and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally.

     “Business Day” means any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized or required to close under the laws of the State of New York, and a day on
which the Control Agent is open for the transaction of business.

     “Capital Lease” means, as applied to any Person, any lease of (or any agreement conveying the
right to use) any property (whether real, personal or mixed) by such Person as lessee which in
accordance with GAAP, is required to be reflected as a liability on the balance sheet of such
Person.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of such Person’s capital stock or
partnership, limited liability company or other equity interests at any time outstanding, and any
and all rights, warrants or options exchangeable for or convertible into such capital stock or
other interests (but excluding any debt security that is exchangeable for or convertible into such
capital stock).

     “Cash Management Services” means any services provided from time to time to the Grantors in
connection with operating, collections, payroll, trust, or other depository or disbursement
accounts or otherwise consisting of treasury or cash management services, including automated
clearinghouse, controlled disbursement, depository, electronic funds transfer, information
reporting, lockbox, stop payment, return item, netting, overdraft and/or wire transfer services.

     “Certificated Security” has the meaning set forth in the UCC.

     “Chattel Paper” has the meaning set forth in the UCC.

     “Claimholders” means the Term Loan Claimholders, the Working Capital Claimholders and any
Additional Claimholders.

     “Collateral” means all of the assets and property of any Grantor, whether tangible or
intangible, constituting both Working Capital Collateral and Term Loan Collateral.

     “Commercial Tort Claim” has the meaning set forth in the UCC.

7

 

     “Company” has the meaning set forth in the introductory paragraph of this Agreement.

     “Control Collateral” means any Collateral consisting of any Certificated Security, Instrument,
Investment Property, Deposit Accounts and cash.

     “Controlled Account” means those certain Deposit Accounts of any Grantor subject to Liens
under the terms of the Working Capital Collateral Documents and the Term Loan Collateral Documents.

     “Credit Agreement” means the Term Loan Credit Agreement, the Working Capital Credit Agreement
or any Additional Credit Facility, as applicable.

     “Credit Documents” means the Term Loan Credit Documents, the Working Capital Credit Documents
and any Additional Documents.

     “Customer Contracts” means all contracts for the provision of goods or services by any Grantor
to any Person or by any Person to any Grantor.

     “Deposit Accounts” has the meaning set forth in the UCC.

     “DIP Financing” has the meaning set forth in Section 6.1.

     “Discharge of Additional Obligations” means, if any Indebtedness shall at any time have been
incurred under any Additional Credit Facility, (i) payment in full in cash of the principal of and
interest (including interest accruing on or after the commencement of any Insolvency or Liquidation
Proceeding, whether or not a claim for such interest is, or would be, allowed in whole or in part
in such Insolvency or Liquidation Proceeding) and premium, if any, on all Indebtedness outstanding
under all Additional Credit Facilities and any other Additional Documents and termination of all
commitments to lend or otherwise extend credit (if any) under all Additional Credit Facilities and
other Additional Documents, other than pursuant to any Refinancing through the incurrence of
Indebtedness designated as Additional Indebtedness by the Company, and (ii) payment in full in cash
of all other Additional Obligations that are due and payable or otherwise accrued and owing at or
prior to the time such principal and interest are paid (including legal fees and other expenses,
costs or charges accruing on or after the commencement of any Insolvency or Liquidation Proceeding,
whether or not a claim for such fees, expenses, costs or charges is, or would be, allowed in such
Insolvency or Liquidation Proceeding), and (iii) termination or cash collateralization (in an
amount reasonably satisfactory to the Term Loan Administrative Agent) of any Bank Products
Agreement (to the extent obligations under such Bank Products Agreement constitute applicable
Additional Obligations) and the payment in full in cash of all Bank Product Debt (to the extent
such Bank Product Debt constitutes Additional Obligations), subject, with respect to the aggregate
principal amount of the relevant items set forth in the foregoing clauses (i) and (ii), to the
limitations set forth in the definition of Additional Cap Amount.

     “Discharge of Obligations” means a Discharge of Term Loan Obligations, a Discharge of Working
Capital Obligations, or a Discharge of Additional Obligations, as applicable.

     “Discharge of Term Loan Obligations” means (i) payment in full in cash of the principal of and
interest (including interest accruing on or after the commencement of any Insolvency or Liquidation
Proceeding, whether or not a claim for such interest is, or would be, allowed in whole or in part
in such Insolvency or Liquidation Proceeding) and premium, if any, on all Indebtedness outstanding
under the Term Loan Credit Documents and termination of all commitments to lend or otherwise extend
credit (if

8

 

any) under the Term Loan Credit Documents, other than pursuant to any Refinancing under a Term
Loan Credit Agreement designated as a Term Loan Credit Agreement by the Company, and (ii) payment
in full in cash of all other Term Loan Obligations that are due and payable or otherwise accrued
and owing at or prior to the time such principal and interest are paid (including legal fees and
other expenses, costs or charges accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not a claim for such fees, expenses, costs or charges is, or
would be, allowed in such Insolvency or Liquidation Proceeding), and (iii) termination or cash
collateralization (in an amount reasonably satisfactory to the Term Loan Administrative Agent) of
any Bank Products Agreement (to the extent obligations under such Bank Products Agreement
constitute Term Loan Obligations) and the payment in full in cash of all Bank Product Debt (to the
extent such Bank Product Debt constitutes Term Loan Obligations), subject, with respect to the
aggregate principal amount of the relevant items set forth in the foregoing clauses (i) and (ii),
to the limitations set forth in the definition of TL Cap Amount.

     “Discharge of Working Capital Obligations” means (i) payment in full in cash of the principal
of and interest (including interest accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not a claim for such interest is, or would be, allowed in whole
or in part in such Insolvency or Liquidation Proceeding) and premium, if any, on all Indebtedness
outstanding under the Working Capital Credit Documents and termination of all commitments to lend
or otherwise extend credit under the Working Capital Credit Documents, other than pursuant to any
Refinancing under a Working Capital Credit Agreement designated as a Working Capital Credit
Agreement by the Company, (ii) payment in full in cash of all other Working Capital Obligations
that are due and payable or otherwise accrued and owing at or prior to the time such principal and
interest are paid (including legal fees and other expenses, costs or charges accruing on or after
the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim for such fees,
expenses, costs or charges is, or would be, allowed in whole or in part in such Insolvency or
Liquidation Proceeding), (iii) the payment in full in cash of cash collateral, or at Working
Capital Agent’s option, the delivery to Working Capital Agent of a letter of credit payable to
Working Capital Agent, in either case in accordance with the terms of the Working Capital Credit
Documents in respect of (A) letters of credit, banker’s acceptances or similar instruments issued
under the Working Capital Credit Documents (in an amount equal to one hundred three (103%) percent
of the amount of such letters of credit, banker’s acceptance or similar instruments) and (B)
continuing obligations of Working Capital Agent and Working Capital Lenders under control
agreements and other contingent Working Capital Obligations for which a claim or demand for payment
has been made at such time (including attorneys’ fees and legal expenses) to any Working Capital
Claimholders for which such Working Capital Claimholder is entitled to indemnification by any
Grantor, (iv) termination or cash collateralization (in an amount reasonably satisfactory to the
Working Capital Administrative Agent) of any Bank Products Agreement (to the extent that the
obligations under such Bank Products Agreement constitutes Working Capital Obligations) and the
payment in full in cash of all Bank Product Debt (to the extent such Bank Product Debt constitutes
Working Capital Obligations), subject, with respect to the aggregate principal amount of the
relevant items set forth in the foregoing clauses (i), (ii) and (iii)(A), to the limitations set
forth in the definition of Maximum Working Capital Obligations.

     “Documents” has the meaning set forth in the UCC.

     “Domestic Subsidiaries” shall mean, with respect to any Person, any Subsidiary of such Person
which is incorporated or organized under the laws of any state of the United States or the District
of Columbia.

     “Equipment” has the meaning set forth in the UCC, including all machinery, apparatus,
equipment, fittings, furniture, fixtures, motor vehicles and other tangible personal property
(other than

9

 

Inventory), and all parts, accessories and special tools therefor, and accessions thereto.

     “Event of Default” has the meaning set forth in (a) prior to the Discharge of Working Capital
Obligations, the Working Capital Credit Agreement, (b) prior to the Discharge of Term Loan
Obligations, the Term Loan Credit Agreement and (c) prior to the Discharge of Additional
Obligations, any applicable Additional Credit Facility then in effect.

     “Excess Additional Obligations Principal Exposure” has the meaning set forth in Section
2.2(e).

     “Excess Term Loan Principal Exposure” has the meaning set forth in Section 2.2(d).

     “Excess Working Capital Principal Exposure” has the meaning set forth in Section 2.2(c).

     “Financial Asset” has the meaning set forth in the UCC.

     “Fixture” has the meaning set forth in the UCC.

     “GAAP” means generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “General Intangible” has the meaning set forth in the UCC.

     “Goods” has the meaning set forth in the UCC.

     “Grantors” has the meaning set forth in the introductory paragraph of this Agreement.

     “Indebtedness” means, with respect to any Person, any liability, whether or not contingent,
(a) in respect of borrowed money (whether or not the recourse of the lender is to the whole of the
assets of such Person or only to a portion thereof) or evidenced by bonds, notes, debentures or
similar instruments; (b) representing the balance deferred and unpaid of the purchase price of any
property or services (other than an account payable to a trade creditor (whether or not an
Affiliate) incurred in the ordinary course of business of such Person); (c) all obligations as
lessee under leases which have been, or should be, in accordance with GAAP recorded as Capital
Leases; (d) any contractual obligation, contingent or otherwise, of such Person to pay or be liable
for the payment of any indebtedness described in this definition of another Person, including,
without limitation, any such indebtedness, directly or indirectly guaranteed, or any agreement to
purchase, repurchase, or otherwise acquire such indebtedness, obligation or liability or any
security therefor, or to provide funds for the payment or discharge thereof, or to maintain
solvency, assets, level of income, or other financial condition; (e) all obligations with respect
to redeemable stock and redemption or repurchase obligations under any Capital Stock or other
equity securities issued by such Person; (f) all reimbursement obligations and other liabilities of
such Person with respect to surety bonds (whether bid, performance or otherwise), letters of
credit, banker’s acceptances, drafts or similar documents or instruments issued for such Person’s
account; (g) all indebtedness of such Person in respect of indebtedness of another Person for
borrowed money or indebtedness of another Person otherwise described in this definition which is
secured by any consensual lien, security interest, collateral assignment, conditional sale,
mortgage, deed of trust, or other

10

 

encumbrance on any asset of such Person, whether or not such obligations, liabilities or
indebtedness are assumed by or are a personal liability of such Person, all as of such time; (h)
all obligations, liabilities and indebtedness of such Person (marked to market) arising under swap
agreements, cap agreements and collar agreements and other agreements or arrangements designed to
protect such person against fluctuations in interest rates or currency or commodity values; (i) all
obligations owed by such Person under license agreements with respect to non-refundable, advance or
minimum guarantee royalty payments; (j) indebtedness of any partnership or joint venture in which
such Person is a general partner or a joint venturer to the extent such Person is liable therefor
as a result of such Person’s ownership interest in such entity, except to the extent that the terms
of such indebtedness expressly provide that such Person is not liable therefor or such Person has
no liability therefor as a matter of law and (k) the principal and interest portions of all rental
obligations of such Person under any synthetic lease or similar off-balance sheet financing where
such transaction is considered to be borrowed money for tax purposes but is classified as an
operating lease in accordance with GAAP.

     “Initial Working Capital Credit Agreement” has the meaning set forth in the recitals hereto.

     “Initial Term Loan Credit Agreement” has the meaning set forth in the recitals hereto.

     “Insolvency or Liquidation Proceeding” means any case or proceeding commenced by or against a
Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the
entry of an order for relief under the Bankruptcy Code, or any other Bankruptcy Law or insolvency,
debtor relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator,
administrator, conservator or other custodian for such Person or any part of its Property; or (c)
an assignment or trust mortgage for the benefit of creditors.

     “Instrument” has the meaning set forth in the UCC.

     “Investment Property” has the meaning set forth in the UCC.

     “Inventory” has the meaning set forth in the UCC, including all goods intended for sale,
lease, display or demonstration; all work in process; and all raw materials, and other materials
and supplies of any kind that are or could be used in connection with the manufacture, printing,
packing, shipping, advertising, sale, lease or furnishing of such goods, or otherwise used or
consumed in the Company’s business (but excluding Equipment).

     “Letter of Credit Rights” has the meaning set forth in the UCC.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Limited License” has the meaning set forth in Section 5.5.

     “Maximum Working Capital Obligations” has the meaning set forth in the definition of Working
Capital Obligations.

     “Non-Priority Agent” means, with respect to the Working Capital Priority Collateral, the Term

11

 

Loan Agent and any Additional Agent, as applicable, and, with respect to the Term Loan
Priority Collateral, the Working Capital Agent.

     “Non-Priority Claimholders” means, with respect to the Working Capital Priority Collateral,
the Term Loan Claimholders or the applicable Additional Claimholders, as applicable, and, with
respect to the Term Loan Priority Collateral, the Working Capital Claimholders.

     “Obligations” means Term Loan Obligations, the Working Capital Obligations or any Additional
Obligations, as applicable.

     “Ordinary Course of Business” means the ordinary course of business of the Company or
Subsidiaries, consistent with past practices and undertaken in good faith (and not for the purpose
of evading any provision of a Credit Document).

     “Payment Intangibles” has the meaning set forth in the UCC.

     “Person” means any individual, sole proprietorship, partnership, corporation (including any
corporation which elects subchapter S status under the Internal Revenue Code of 1986), limited
liability company, limited liability partnership, business trust, unincorporated association, joint
stock corporation, trust, joint venture or other entity or any government or any agency or
instrumentality or political subdivision thereof.

     “Priority Agent” means, with respect to the Working Capital Priority Collateral, the Working
Capital Agent, and, with respect to the Term Loan Priority Collateral, the Term Loan
Representative. The Term Loan Representative’s constituents (for purposes of Section 5.3,
Section 5.4 and Section 6.1) shall be all Claimholders who are Priority
Claimholders with respect to the Term Loan Priority Collateral or (after the Discharge of Working
Capital Obligations) the Collateral.

     “Priority Claimholders” means, with respect to the Working Capital Priority Collateral, the
Working Capital Claimholders, and, with respect to the Term Loan Priority Collateral, the Term Loan
Claimholders and any Additional Claimholders, as applicable.

     “Priority Collateral” means, with respect to the Working Capital Agent and the other Working
Capital Claimholders, the Working Capital Priority Collateral, and, with respect to the Term Loan
Agent and the other Term Loan Claimholders and any Additional Agent and any other Additional
Claimholders, the Term Loan Priority Collateral, as applicable.

     “Proceeds” has the meaning set forth in the UCC.

     “Property” means any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.

     “Protective Advances” means loans made under the Working Capital Credit Agreement by the
Working Capital Agent, that, in the exercise of its reasonable business judgment, the Working
Capital Agent deems the funding of such loan to be necessary (i) to preserve or protect the Working
Capital Priority Collateral or any portion thereof, (ii) to enhance the likelihood, or increase the
amount, of repayment of the Working Capital Obligations or (iii) to pay any other amount chargeable
to Grantors pursuant to the terms of the Working Capital Credit Agreement, including costs, fees
and expenses, all of which loans shall be deemed part of the Working Capital Obligations and
secured by the Collateral.

12

 

     “Recovery” has the meaning set forth in Section 6.7.

     “Refinance” means, in respect of any Indebtedness, to refinance, replace or repay, or to issue
other Indebtedness, in exchange or replacement for, such Indebtedness (whether such refinancing,
replacement or repayment or issuance occurs concurrently with the repayment of such Indebtedness or
after any lapse of time during which there may not exist any such Indebtedness). “Refinanced” and
“Refinancing” shall have correlative meanings.

     “Requisite Lenders” means Additional Claimholders and/or Term Loan Claimholders holding, in
the aggregate, in excess of 50% of the aggregate principal amount of the Additional Obligations and
the Term Loan Obligations; provided that, if the matter being consented to or the action being
taken by the Term Loan Representative is the subordination of Liens to other Liens, the consent to
DIP Financing, or the consent to a sale of all or substantially all of the Term Loan Priority
Collateral or (after the Discharge of Working Capital Obligations) all or substantially all of the
Collateral, then “Requisite Lenders” means those Claimholders necessary to validly consent to the
requested action in accordance with the applicable Term Loan Documents and Additional Loan
Documents.

     “Subsidiary” means, with respect to any Person, any corporation, limited liability company,
limited liability partnership or other limited or general partnership, trust, association or other
business entity of which an aggregate of at least a majority of the outstanding Capital Stock or
other interests entitled to vote in the election of the board of directors of such corporation
(irrespective of whether, at the time, Capital Stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of any contingency),
managers, trustees or other controlling persons, or an equivalent controlling interest therein, of
such Person is, at the time, directly or indirectly, owned by such Person and/or one or more
subsidiaries of such Person.

     “Supporting Obligations” has the meaning set forth in the UCC.

     “Term Loan Administrative Agent” has the meaning set forth in the introductory paragraph of
this Agreement and including any replacement or successor agent whether under the Initial Term Loan
Credit Agreement or any subsequent Term Loan Credit Agreement.

     “Term Loan Agent” has the meaning set forth in the introductory paragraph of this Agreement
and including any replacement or successor agent whether under the Initial Term Loan Credit
Agreement or any subsequent Term Loan Credit Agreement.

     “Term Loan Claimholders” means, at any relevant time, the holders of Term Loan Obligations at
such time, including without limitation the Term Loan Lenders and any agent under the Term Loan
Credit Agreement.

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

     “Term Loan Collateral Disposition” has the meaning set forth in Section 5.1(a)(ii).

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

13

 

     “Term Loan Collateral Exercise of Remedies” has the meaning set forth in Section
5.1(a)(i).

     “Term Loan Credit Agreement” means (i) the Initial Term Loan Credit Agreement and (ii) if
designated by the Company, any other credit agreement, loan agreement, note agreement, promissory
note, indenture or other agreement or instrument evidencing or governing the terms of any
indebtedness or other financial accommodation that has been incurred to extend, increase (subject
to the limitations set forth herein), or Refinance in whole or in part the indebtedness and other
obligations outstanding under the (x) Initial Term Loan Credit Agreement or (y) any subsequent Term
Loan Credit Agreement (as amended, restated, supplemented or modified from time to time);
provided, that the lenders party to such Term Loan Credit Agreement shall agree, by a
joinder agreement substantially in the form of Exhibit C hereto or otherwise in form and substance
reasonably satisfactory to the Working Capital Agent, that the obligations under such Term Loan
Credit Agreement are subject to the terms and provisions of this Agreement. Any reference to the
Term Loan Credit Agreement hereunder shall be deemed a reference to any Term Loan Credit Agreement
then in existence.

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

     “Term Loan Lenders” means any “Lender”, as defined in the Term Loan Credit Agreement, and
including, in the case of Bank Products Agreements, Affiliates of Term Loan Lenders who are parties
to Bank Products Agreements with any Grantor.

     “Term Loan Obligations” means any and all loans and all other obligations, liabilities and
indebtedness of every kind, nature and description owing by any Grantor whether now existing or
hereafter arising, whether arising before, during or after the commencement of any case with
respect to any Grantor under the Bankruptcy Code or any other Insolvency or Liquidation Proceeding
under (i) the Term Loan Credit Agreement, (ii) the other Term Loan Credit Documents and (iii) any
Bank Products Agreement entered into with any Person who at the time of entry into such agreement
is either the Term Loan Agent, the Term Loan Administrative Agent, any Term Loan Lender or any
Affiliate of a Term Loan Lender; provided that the aggregate principal amount of, without
duplication, any term loans, bonds, debentures, notes or similar instruments (excluding, in any
event, any Bank Product Debt) issued under the Term Loan Credit Agreement or any other Term Loan
Credit Document (or any Refinancing thereof) in excess of (x) at all times prior to the funding of
the Additional Term Loans (as such term is defined in the Term Loan Credit Agreement in effect as
of the date hereof), $171,000,000, and (y) at all times after the funding of the Additional Term
Loans, the sum of $171,000,000 plus the product of (i) 114% times (ii) the amount
actually funded under the Additional Term Loans in an amount not to exceed the maximum amount of
Incremental Term Loans permitted by the Term Loan Credit Agreement in effect as of the date hereof
(the “TL Cap Amount”), shall not constitute Term Loan Obligations for purposes of this Agreement.
“Term Loan Obligations” shall include (x) all interest accrued or accruing (or which would, absent
commencement of an Insolvency or Liquidation Proceeding, accrue) in accordance with the rate
specified in the relevant Term Loan Credit Document and (y) all fees, costs and charges incurred in
connection with the Term Loan Credit Documents and provided for thereunder, in the case of each of
clause (x) and clause (y) whether before or after commencement of an Insolvency or Liquidation
Proceeding and irrespective of whether any claim for such interest, fees, costs or charges is
allowed as a claim in such Insolvency or Liquidation Proceeding. To the extent that the principal
balance of

14

 

obligations owing under the Term Loan Credit Agreement or any other Term Loan Credit Document
exceeds the TL Cap Amount, the excess shall be attributed entirely to the portion of Term Loan
Obligations that causes the TL Cap Amount to be exceeded.

     “Term Loan Priority Collateral” means all of the present and future assets and Property of the
Company and any other Grantor, whether real, personal or mixed, with respect to which a Lien is
granted as security for any Term Loan Obligations, that do not constitute Working Capital Priority
Collateral, including without limitation:

     (a) all of the Capital Stock of each of the present and future Subsidiaries of the Company;

     (b) all of the following present and future Property of the Company and each other Grantor:

     (i) all present and future patents and patent license rights, trademarks and trademark
license rights, copyrights and copyright license rights, trade secrets and processes and
other intellectual property;

     (ii) all present and future machinery and other Equipment, real Property (whether owned
or leased), Fixtures, Financial Assets, Investment Property and Commercial Tort Claims;

     (iii) the TL Deposit Account (to the extent any Grantor has rights therein) and all
cash from time to time on deposit in the TL Deposit Account (to the extent any Grantor has
rights therein);

     (iv) Chattel Paper, Documents and Instruments; and

     (v) General Intangibles and other contract rights, including any indemnification
rights; and

     (c) all Proceeds (including, without limitation, insurance proceeds) and products of the
Property and assets described in the foregoing clauses (a) and (b).

     “Term Loan Representative” means the Term Loan Agent acting at the direction of the Requisite
Lenders, unless the principal amount of Additional Obligations under any Additional Credit Facility
exceeds the principal amount of Term Loan Obligations under the Term Loan Facility, and in such
case, the Additional Agent under such Additional Credit Facility (or, if there is more than one
such Additional Credit Facility, the Additional Credit Facility under which the greatest principal
amount of Additional Obligations is outstanding at the time) acting at the direction of the
Requisite Lenders.

     “TL Cap Amount” has the meaning set forth in the definition of Term Loan Obligations.

     “TL Deposit Account” means that certain segregated Deposit Account of the Company created on
or after the date hereof to hold the proceeds of Term Loan Priority Collateral, together with any
replacement or similar deposit account created to serve such purpose.

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

     “Voting Stock” means, with respect to any Person, (a) one (1) or more classes of Capital Stock
of such Person having general voting powers to elect at least a majority of the board of directors,
managers

15

 

or trustees of such Person, irrespective of whether at the time Capital Stock of any other
class or classes have or might have voting power by reason of the happening of any contingency, and
(b) any Capital Stock of such Person convertible or exchangeable without restriction at the option
of the holder thereof into Capital Stock of such Person described in clause (a) of this definition.

     “Working Capital Administrative Agent” has the meaning set forth in the introductory paragraph
of this Agreement and including any replacement or successor agent whether under the Initial
Working Capital Credit Agreement or any subsequent Working Capital Credit Agreement.

     “Working Capital Agent” has the meaning set forth in the introductory paragraph of this
Agreement and including any replacement or successor agent whether under the Initial Working
Capital Credit Agreement or any subsequent Working Capital Credit Agreement.

     “Working Capital Claimholders” means, at any relevant time, the holders of Working Capital
Obligations at such time, including without limitation the Working Capital Lenders and any agent
under the Working Capital Credit Agreement, and including, in the case of Bank Products Agreements,
Affiliates of Working Capital Lenders who are parties to Bank Products Agreements with any Grantor.

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

     “Working Capital Collateral Disposition” has the meaning set forth in Section
5.1(d)(ii).

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

     “Working Capital Collateral Exercise of Remedies” has the meaning set forth in Section
5.1(d)(i).

     “Working Capital Credit Agreement” means (i) the Initial Working Capital Credit Agreement and
(ii) if designated by the Company, any other credit agreement, loan agreement, note agreement,
promissory note, indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation that has been incurred to extend, increase
(subject to the limitations set forth herein), or Refinance in whole or in part the indebtedness
and other obligations outstanding under the (x) Initial Working Capital Credit Agreement or (y) any
subsequent Working Capital Credit Agreement (as amended, restated, supplemented or modified from
time to time); provided, that the lenders party to such Working Capital Credit Agreement
shall agree, by a joinder agreement substantially in the form of Exhibit C hereto or otherwise in
form and substance reasonably satisfactory to the Term Loan Agent, that the obligations under such
Working Capital Credit Agreement are subject to the terms and provisions of this Agreement.. Any
reference to the Working Capital Credit Agreement hereunder shall be deemed a reference to any
Working Capital Credit Agreement then in existence.

     “Working Capital Credit Documents” means the Working Capital Credit Agreement and the other
Financing Agreements (as defined in the Working Capital Credit Agreement as amended from time to
time) and each of the other agreements, documents and instruments providing for or evidencing any
other Working Capital Obligation, and any other document or instrument executed or delivered at any
time in connection with any Working Capital Obligations, including any intercreditor or joinder

16

 

agreement among holders of Working Capital Obligations, to the extent such are effective at
the relevant time, as each may be modified from time to time.

     “Working Capital General Intangibles” means all General Intangibles (including, without
limitation, (i) payment intangibles, (ii) all interest, fees, late charges, penalties, collection
fees and other amounts due or to become due or otherwise payable in connection with any Account,
(iii) choses in action, causes of action, or other rights and claims against carriers, shippers,
processors, warehouses, bailees, custom brokers, freight forwarders, or other third parties at any
time in possession of, or using, any of the other Working Capital Priority Collateral or any
sellers of any other Working Capital Priority Collateral, (iv) rights of stoppage in transit,
replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lienor or
secured party, (v) agreements or arrangements with sales agents, distributors or the like and/or
consignees, warehouses or other third persons in possession of Inventory, (vi) guaranty or warranty
claims with respect to Accounts or Inventory, (vii) rights to indemnification and proceeds thereof,
and (viii) commercial tort claims) of a Grantor that arise from, in respect of or constitute
proceeds of, any of the Accounts or other specifically enumerated types of Working Capital Priority
Collateral.

     “Working Capital Lenders” means any “Lender” as such term is defined in the Working Capital
Credit Agreement.

     “Working Capital Obligations” means any and all loans, letter of credit obligations and all
other obligations, liabilities and indebtedness of every kind, nature and description owing by any
Grantor whether now existing or hereafter arising, whether arising before, during or after the
commencement of any case with respect to any Grantor under the Bankruptcy Code or any other
Insolvency or Liquidation Proceeding under (i) the Working Capital Credit Agreement, (ii) the other
Working Capital Credit Documents and (iii) any Bank Products Agreement entered into with any Person
who at the time of entry into such agreement is either the Working Capital Agent, the Working
Capital Administrative Agent, the Working Capital Lenders or any Affiliate of the Working Capital
Lenders; provided that, the aggregate principal amount of, without duplication, any
revolving credit commitments, revolving credit loans, letters of credit, term loans, bonds,
debentures, notes or similar instruments (excluding, in any event, Bank Product Debt and Protective
Advances) issued under the Working Capital Credit Agreement or any other Working Capital Credit
Document (or any Refinancing thereof) in excess of the lesser of (x) the sum of the Maximum Credit
(as such term is defined in the Working Capital Credit Agreement in effect as of the date hereof)
as then in effect in accordance with the terms of the Working Capital Credit Agreement plus
fourteen (14%) percent thereof or (y) $200,000,000 (the “Maximum Working Capital Obligations”),
shall not constitute Working Capital Obligations for purposes of this Agreement. “Working Capital
Obligations” shall include (x) all interest accrued or accruing (or which would, absent
commencement of an Insolvency or Liquidation Proceeding, accrue) in accordance with the rate
specified in the relevant Working Capital Credit Document and (y) all fees, costs and charges
incurred in connection with the Working Capital Credit Documents and provided for thereunder, in
the case of each of clause (x) and clause (y) whether before or after commencement of an Insolvency
or Liquidation Proceeding and irrespective of whether any claim for such interest, fees, costs or
charges is allowed as a claim in such Insolvency or Liquidation Proceeding.

     “Working Capital Priority Collateral” means all of the following present and future assets and
Property of the Company and any other Grantor with respect to which a Lien is granted as security
for any Working Capital Obligations:

     (a) (i) Accounts (other than Accounts or other payment obligations constituting the
proceeds of Term Loan Priority Collateral);

17

 

     (ii) Inventory;

     (iii) Chattel Paper, Instruments, Documents, in each case only to the extent relating
to Accounts (other than Accounts or other payment obligations constituting the proceeds of
Term Loan Priority Collateral), Inventory or other specifically enumerated types of Working
Capital Priority Collateral;

     (iv) Working Capital General Intangibles;

     (v) Deposit Accounts (other than the TL Deposit Account);

     (vi) cash and investment property (other than the TL Deposit Account, the stock of
subsidiaries or Proceeds of the Term Loan Priority Collateral), including all monies,
deposits and balances held in or for deposit in or otherwise attributable to any lockboxes
or deposit accounts established or used by any Grantor in connection with the financing
arrangements with Working Capital Agent and Working Capital Lenders for the handling of
collections of any of the Accounts or any of the other Working Capital Priority Collateral
of Borrower, or any other deposit account, investment account or other account at any
depository or other institution and including any investment property (including securities,
whether certificated or uncertificated, securities accounts, security entitlements,
commodity contracts or commodity accounts), other than the TL Deposit Account or any of the
same held in the TL Deposit Account or constituting the stock of subsidiaries of a Grantor;

     (vii) Letter-of-Credit Rights and Supporting Obligations in respect of Inventory,
Accounts (other than Accounts or other payment obligations constituting the proceeds of Term
Loan Priority Collateral) or other specifically enumerated types of Working Capital Priority
Collateral;

     (viii) books and records and accounting systems relating to Accounts, Inventory or
other specifically enumerated types of Working Capital Priority Collateral including,
without limitation, invoices, purchase order, ledger cards, shipping evidence, statements,
correspondence, memoranda, customer lists, credit files and other data, in each case
relating to any of the other Working Capital Priority Collateral or any account debtor,
together with the tapes, software, disks, diskettes and other data and media storage
devices;

     (ix) Customer Contracts;

     (x) tax refunds (other than any 2009 Tax Refunds (as defined in the Term Loan Credit
Agreement));

     (xi) any Bank Products Agreements consisting of hedge agreements; and

     (b) all Proceeds (including, without limitation, insurance proceeds) and products of the
Property described in the foregoing clause (a).

     1.2 Terms Generally. The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to

18

 

have the same meaning and effect as the word “shall”. Unless the context requires otherwise
(i) any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified, (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (iv) all references herein to Exhibits or
Sections shall be construed to refer to Exhibits or Sections of this Agreement and (v) the words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

SECTION 2

LIEN PRIORITIES

     2.1 Scope of Collateral. The Working Capital Agent, for and on behalf of the Working Capital
Claimholders, hereby acknowledges that (a) the Term Loan Agent, for and on behalf of the Term Loan
Claimholders, has been granted Liens upon all of the Collateral pursuant to the Term Loan Credit
Documents to secure the Term Loan Obligations and (b) upon compliance with Section 8.10 of
this Agreement, any Additional Agent, for and on behalf of the applicable Additional Claimholders,
will have been granted Liens upon all of the Collateral pursuant to the applicable Additional
Documents to secure the applicable Additional Obligations. The Term Loan Agent, for and on behalf
of the Term Loan Claimholders, hereby acknowledges that (a) the Working Capital Agent, for and on
behalf of the Working Capital Claimholders, has been granted Liens upon all of the Collateral
pursuant to the Working Capital Credit Documents to secure the Working Capital Obligations and (b)
upon compliance with Section 8.10 of this Agreement, any Additional Agent, for and on
behalf of the applicable Additional Claimholders, will have been granted Liens upon all of the
Collateral pursuant to the applicable Additional Documents to secure the applicable Additional
Obligations. Each Additional Agent, for and on behalf of the applicable Additional Claimholders,
hereby acknowledges that (a) the Working Capital Agent, for and on behalf of the Working Capital
Claimholders, has been granted Liens upon all of the Collateral pursuant to the Working Capital
Credit Documents to secure the Working Capital Obligations, (b) the Term Loan Agent, for and on
behalf of the Term Loan Claimholders, has been granted Liens upon all of the Collateral pursuant to
the Term Loan Credit Documents to secure the Term Loan Obligations and (c) any other Additional
Agent, for and on behalf of the applicable Additional Claimholders, will have been granted Liens
upon all of the Collateral pursuant to the applicable Additional Documents to secure the applicable
Additional Obligations

     2.2 Priority.

     (a) Notwithstanding the order or time of attachment, or the order, time or manner of
perfection, or the order or time of filing or recordation of any document or instrument, or
other method of perfecting a Lien in favor of any Claimholder in any Working Capital
Priority Collateral, and notwithstanding any conflicting terms or conditions which may be
contained in any of the Credit Documents, subject to Section 2.2(c), (x) the Liens
upon the Working Capital Priority Collateral securing the Working Capital Obligations shall
have priority over the Liens upon the Working Capital Priority Collateral securing the Term
Loan Obligations and any Additional Obligations and such Liens upon the Working Capital
Priority Collateral securing the Term Loan Obligations and any Additional Obligations are
and shall be junior and subordinate to the Liens upon the Working Capital Priority
Collateral securing the Working Capital Obligations in all respects, (y) the Liens upon the
Working Capital Priority Collateral securing the Term Loan

19

 

Obligations shall in all respects be pari passu and equal in priority with any Liens
upon the Working Capital Priority Collateral securing any Additional Obligations and (z)
except as may be separately otherwise agreed by and between or among any applicable
Additional Agents, any Liens upon the Working Capital Priority Collateral securing any
applicable Additional Obligations shall in all respects be pari passu and equal in priority
with any Liens upon the Working Capital Collateral securing any other Additional
Obligations.

     (b) Notwithstanding the order or time of attachment, or the order, time or manner of
perfection, or the order or time of filing or recordation of any document or instrument, or
other method of perfecting a Lien in favor of any Claimholder in any Term Loan Priority
Collateral, and notwithstanding any conflicting terms or conditions which may be contained
in any of the Credit Documents, subject to Section 2.2(d), (x) the Liens upon the
Term Loan Priority Collateral securing the Term Loan Obligations and any Additional
Obligations shall have priority over the Liens upon the Term Loan Priority Collateral
securing the Working Capital Obligations and such Liens upon the Term Loan Priority
Collateral securing the Working Capital Obligations are and shall be junior and subordinate
to the Liens upon the Term Loan Priority Collateral securing the Term Loan Obligations and
any Additional Obligations in all respects, (y) the Liens upon the Term Loan Priority
Collateral securing the Term Loan Obligations shall in all respects be pari passu and equal
in priority with any Liens upon the Term Loan Priority Collateral securing any Additional
Obligations and (z) except as may be separately otherwise agreed by and between or among any
applicable Additional Agents, any Liens upon the Term Loan Priority Collateral securing any
applicable Additional Obligations shall in all respects be pari passu and equal in priority
with any Liens upon the Term Loan Priority Collateral securing any other Additional
Obligations.

     (c) Notwithstanding the foregoing clauses (a) and (b) or anything else in this
Agreement to the contrary, the Aggregate Principal Exposure of extensions of credit made by
the Working Capital Lenders to any of the Grantors that exceed the Maximum Working Capital
Obligations (such excess amount, the “Excess Working Capital Principal Exposure”) shall not
be considered Working Capital Obligations for purposes of the Lien priority set forth in
Section 2.2(a) above with respect to the Working Capital Priority Collateral. To
the extent provided under the Working Capital Credit Documents, all such Excess Working
Capital Principal Exposure shall continue to be secured by the Collateral (including without
limitation the Working Capital Priority Collateral); provided, that to the extent
that the Liens on the Working Capital Priority Collateral secure such Excess Working Capital
Principal Exposure, such Liens shall be junior and subordinate to the Liens on the Working
Capital Priority Collateral securing the Term Loan Obligations (other than any Excess Term
Loan Principal Exposure) and any Additional Obligations (other than any Excess Additional
Obligations Principal Exposure).

     (d) Notwithstanding the foregoing clauses (a) and (b) or anything else in this
Agreement to the contrary, the Aggregate Principal Exposure of extensions of credit made by
Term Loan Lenders to any of the Grantors that exceed the TL Cap Amount (such excess amount,
the “Excess Term Loan Principal Exposure”) shall not be considered Term Loan Obligations for
purposes of the Lien priority set forth in Section 2.2(b) above with respect to the
Term Loan Priority Collateral and Section 2.2(a)(y) above with respect to the
Working Capital Priority Collateral. To the extent provided under the Term Loan Credit
Documents, all such Excess Term Loan Principal Exposure shall continue to be secured by the
Collateral (including without limitation the Term Loan Priority Collateral);
provided, that (x) to the extent that the Liens on the Term Loan Priority Collateral
secure such Excess Term Loan Principal Exposure, such Liens shall be junior and subordinate
to the Liens on the Term Loan Priority Collateral securing the

20

 

Working Capital Obligations (other than any Excess Working Capital Principal Exposure)
and any Additional Obligations (other than any Excess Additional Obligations Principal
Exposure) and (y) to the extent that the Liens on the Working Capital Priority Collateral
secure such Excess Term Loan Principal Exposure, such Liens shall be junior and subordinate
to the Liens on the Working Capital Priority Collateral securing any Additional Obligations
(other than any Excess Additional Obligations Principal Exposure) and any Excess Working
Capital Principal Exposure

     (e) Notwithstanding the foregoing clauses (a) and (b) or anything else in this
Agreement to the contrary, the Aggregate Principal Exposure of extensions of credit made by
any applicable Additional Credit Facility Creditors to any of the Grantors under the
applicable Additional Credit Facility and other related applicable Additional Documents that
exceed the Additional Cap Amount (such excess amount, the “Excess Additional Obligations
Principal Exposure”) shall not be considered Additional Obligations for purposes of the Lien
priority set forth in Section 2.2(b) above with respect to the Term Loan Priority
Collateral and Sections 2.2(a)(y) and 2.2(a)(z) above with respect to the Working
Capital Priority Collateral. To the extent provided under such Additional Credit Facility
and other related applicable Additional Documents, all such Excess Additional Obligations
Principal Exposure shall continue to be secured by the Collateral (including without
limitation the Term Loan Priority Collateral); provided, that (x) to the extent that
the Liens on the Term Loan Priority Collateral secure such Excess Additional Obligations
Principal Exposure, such Liens shall be junior and subordinate to the Liens on the Term Loan
Priority Collateral securing the Working Capital Obligations (other than any Excess Working
Capital Principal Exposure), the Term Loan Obligations (other than any Excess Term Loan
Principal Exposure) and any other Additional Obligations (other than any applicable Excess
Additional Obligations Principal Exposure in respect of such other Additional Obligations)
and (y) to the extent that the Liens on the Working Capital Priority Collateral secure such
Excess Additional Obligations Principal Exposure, such Liens shall be junior and subordinate
to the Liens on the Working Capital Priority Collateral securing the Term Loan Obligations
(other than any Excess Term Loan Principal Exposure) and any other Additional Obligations
(other than any applicable Excess Additional Obligations Principal Exposure in respect of
such other Additional Obligations) and any Excess Working Capital Principal Exposure.

     2.3 Failure to Perfect. Notwithstanding any failure of any Claimholder to perfect its
security interest in its respective Priority Collateral, the subordination of its Lien on such
Priority Collateral to any Lien securing any other obligation of any Grantor, or the avoidance,
invalidation or lapse of its Lien on such Priority Collateral:

	(a)	 	subject to Section 2.2(c), the Liens upon the Working Capital Priority Collateral securing
the Working Capital Obligations shall be and remain senior in all respects and prior to the
Liens on the Working Capital Priority Collateral securing the Term Loan Obligations and any
Additional Obligations,

	(b)	 	subject to Section 2.2(d), the Liens on the Term Loan Priority Collateral securing the Term
Loan Obligations shall be and remain senior in all respects and prior to the Liens on the Term
Loan Priority Collateral securing the Working Capital Obligations, and the Liens on any
Collateral securing the Term Loan Obligations shall be pari passu and equal in priority in all
respects with any Liens on such Collateral securing any Additional Obligations, and

	(c)	 	subject to Section 2.2(e), the Liens on the Term Loan Priority Collateral securing any
Additional Obligations shall be and remain senior in all respects and prior to the Liens on
the Term Loan

21

 

	 	 	Priority Collateral securing the Working Capital Obligations, and the Liens on any
Collateral securing any Additional Obligations shall be pari passu and equal in priority in
all respects with any Liens on such Collateral securing the Term Loan Obligations and any
other Additional Obligations.

     2.4 Prohibition on Contesting Liens. Each of the Working Capital Agent, for itself and on
behalf of each Working Capital Claimholder, the Term Loan Agent, for itself and on behalf of each
Term Loan Claimholder, and each Additional Agent, for itself and on behalf of each applicable
Additional Claimholder, agrees that it shall not (and hereby waives any right to) contest or
support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation
Proceeding), the priority, validity or enforceability of a Lien held by or on behalf of any of the
Term Loan Claimholders in any Collateral, or by or on behalf of any of the Working Capital
Claimholders in any Collateral, or by or on behalf of any of the Additional Claimholders in any
Collateral, as the case may be; provided that nothing in this Agreement shall be
construed to prevent or impair the rights of any such party to enforce this Agreement, including
the priority of the Lien held by it or for its benefit on its respective Priority Collateral as
provided in Sections 2.2 and 3.1.

     2.5 No New Liens.

     (a) Limitation on Collateral for Working Capital Claimholders. Until the
Discharge of Term Loan Obligations shall have occurred, if any Working Capital Claimholder
shall (nonetheless and in breach hereof) acquire any Lien on any assets of any Grantor or
any of its Subsidiaries to secure the Working Capital Obligations, which assets are not also
subject to a Lien in favor of the Term Loan Agent to secure the Term Loan Obligations, then
such Working Capital Claimholder shall, without the need for any further consent of any
other Person and notwithstanding anything to the contrary in any Working Capital Credit
Document (x) also hold and be deemed to have held such Lien and security interest for the
benefit of the Term Loan Agent as security for the Term Loan Obligations subject to the
priorities set forth herein, with any amounts received in respect thereof subject to
distribution and turnover under Section 4, or (y) release such Lien. Until any
applicable Discharge of Additional Obligations shall have occurred, if any Working Capital
Claimholder shall (nonetheless and in breach hereof) acquire any Lien on any assets of any
Grantor or any of its Subsidiaries to secure the Working Capital Obligations, which assets
are not also subject to a Lien in favor of the applicable Additional Agent to secure the
applicable Additional Obligations, then such Working Capital Claimholder shall, without the
need for any further consent of any other Person and notwithstanding anything to the
contrary in any Working Capital Credit Document (x) also hold and be deemed to have held
such Lien and security interest for the benefit of such Additional Agent as security for
such Additional Obligations subject to the priorities set forth herein, with any amounts
received in respect thereof subject to distribution and turnover under Section 4, or
(y) release such Lien.

     (b) Limitation on Collateral for Term Loan Claimholders. Until the Discharge
of Working Capital Obligations shall have occurred, if any Term Loan Claimholder shall
(nonetheless and in breach hereof) acquire any Lien on any assets of any Grantor or any of
its Subsidiaries to secure any Term Loan Obligations, which assets are not also subject to a
Lien of the Working Capital Agent to secure the Working Capital Obligations, then such Term
Loan Claimholder, shall, without the need for any further consent of any other Person and
notwithstanding anything to the contrary in any Term Loan Credit Document (x) also hold and
be deemed to have held such Lien and security interest for the benefit of the Working
Capital Agent as security for the Working Capital Obligations subject to the priorities set
forth herein, with any amounts received in respect thereof subject to distribution and
turnover under Section 4, or 

22

 

(y) release such Lien. Until any applicable Discharge of Additional Obligations shall have
occurred, if any Term Loan Claimholder shall (nonetheless and in breach hereof) acquire any
Lien on any assets of any Grantor or any of its Subsidiaries to secure any Term Loan
Obligations, which assets are not also subject to a Lien of the applicable Additional Agent
to secure the applicable Additional Obligations, then such Term Loan Claimholder, shall,
without the need for any further consent of any other Person and notwithstanding anything to
the contrary in any Term Loan Credit Document (x) also hold and be deemed to have held such
Lien and security interest for the benefit of such Additional Agent as security for such
Additional Obligations subject to the priorities set forth herein, with any amounts received
in respect thereof subject to distribution and turnover under Section 4, or (y)
release such Lien.

     (c) Limitation on Collateral for Additional Claimholders. Until the Discharge
of Working Capital Obligations shall have occurred, if any Additional Claimholder shall
(nonetheless and in breach hereof) acquire any Lien on any assets of any Grantor or any of
its Subsidiaries to secure any Additional Obligations, which assets are not also subject to
a Lien of the Working Capital Agent to secure the Working Capital Obligations, then such
Additional Claimholder, shall, without the need for any further consent of any other Person
and notwithstanding anything to the contrary in any Additional Document (x) also hold and be
deemed to have held such Lien and security interest for the benefit of the Working Capital
Agent as security for the Working Capital Obligations subject to the priorities set forth
herein, with any amounts received in respect thereof subject to distribution and turnover
under Section 4, or (y) release such Lien. Until the Discharge of Term Loan
Obligations shall have occurred, if any Additional Claimholder shall (nonetheless and in
breach hereof) acquire any Lien on any assets of any Grantor or any of its Subsidiaries to
secure any Additional Obligations, which assets are not also subject to a Lien of the Term
Loan Agent to secure the Term Loan Obligations, then such Additional Claimholder, shall,
without the need for any further consent of any other Person and notwithstanding anything to
the contrary in any Additional Document (x) also hold and be deemed to have held such Lien
and security interest for the benefit of the Term Loan Agent as security for the Term Loan
Obligations subject to the priorities set forth herein, with any amounts received in respect
thereof subject to distribution and turnover under Section 4, or (y) release such
Lien. Until any applicable Discharge of Additional Obligations shall have occurred , if any
Additional Agent or other applicable Additional Claimholder shall (nonetheless and in breach
hereof) acquire any Lien on any assets of any Grantor or any of its Subsidiaries to secure
any Additional Obligations, which assets are not also subject to a Lien of any other
Additional Agent to secure any other Additional Obligations, then such Additional Agent or
other applicable Additional Claimholder, shall, without the need for any further consent of
any other Person and notwithstanding anything to the contrary in any applicable Additional
Document (x) also hold and be deemed to have held such Lien and security interest for the
benefit of such other Additional Agent as security for such other Additional Obligations
subject to the priorities set forth herein, with any amounts received in respect thereof
subject to distribution and turnover under Section 4, or (y) release such Lien.

     2.6 Similar Liens and Agreements. The parties hereto agree that it is their intention that
the Working Capital Collateral, the Term Loan Collateral and the Additional Collateral be
identical. In furtherance of the foregoing and of Section 8.9, the parties hereto agree,
subject to the other provisions of this Agreement, that upon request by the Working Capital Agent,
the Term Loan Agent or any Additional Agent, to cooperate in good faith (and to direct their
counsel to cooperate in good faith) from time to time in order to determine the specific items
included in the Working Capital Collateral, the Term Loan Collateral and the Additional Collateral
and the steps taken to perfect their respective Liens thereon and the identity of the respective
parties obligated under the Working Capital Credit Documents, the Term

23

 

Loan Credit Documents and the Additional Documents.

SECTION 3

ENFORCEMENT

     3.1 Enforcement.

     (a) So long as the Discharge of Working Capital Obligations has not occurred, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or against Company or
any other Grantor:

     (i) the Term Loan Agent and the Term Loan Claimholders:

     (A) will not exercise or seek to exercise any rights or remedies
(including any right of set-off or recoupment) with respect to any Working
Capital Priority Collateral (including, without limitation, the exercise of
any right under any lockbox agreement, account control agreement, landlord
waiver or bailee’s letter or similar agreement or arrangement to which the
Term Loan Agent or any Term Loan Claimholder is a party) or institute or
commence (or join with any other Person in commencing) any enforcement,
collection, execution, levy or foreclosure action or proceeding with respect
to any Lien on the Working Capital Priority Collateral held by it under the
Term Loan Credit Documents or otherwise; and

     (B) will not contest, protest or object to any foreclosure proceeding
or action brought by the Working Capital Agent or any Working Claimholder
with respect to the Working Capital Priority Collateral, or any other
exercise by the Working Capital Agent or any other Working Capital
Claimholder, of any rights and remedies relating to the Working Capital
Priority Collateral under the Working Capital Credit Documents or otherwise;
provided that the respective interests of the Term Loan Claimholders attach
to the proceeds thereof, subject to the relative priorities described in
Section 2 and Section 4; and

     (C) will not object to the forbearance by the Working Capital Agent or
the other Working Capital Claimholders from bringing or pursuing any
foreclosure proceeding or action or any other exercise of any rights or
remedies relating to the Working Capital Priority Collateral; and

     (ii) subject to Section 5.1, the Working Capital Agent and the other
Working Capital Claimholders shall have the exclusive right to enforce rights,
exercise remedies (including set-off and the right to credit bid their debt) and
make determinations regarding the release, disposition, or restrictions with respect
to the Working Capital Priority Collateral without any consultation with or the
consent of the Term Loan Agent or any other Term Loan Claimholder; provided,
that

     (A) in any Insolvency or Liquidation Proceeding commenced by or against
Company or any other Grantor, the Term Loan Administrative Agent or the Term
Loan Agent may file a claim or statement of interest with respect to the
Term Loan Obligations,

24

 

     (B) the Term Loan Agent may take any action (not adverse to the Liens
on the Working Capital Priority Collateral securing the Working Capital
Obligations, or the rights of the Working Capital Agent or the other Working
Capital Claimholders to exercise remedies in respect thereof) in order to
preserve or protect its Lien on the Working Capital Priority Collateral,

     (C) the Term Loan Claimholders shall be entitled to file any necessary
responsive or defensive pleadings in opposition to any motion, claim,
adversary proceeding or other pleading made by any person objecting to or
otherwise seeking the disallowance of the claims of the Term Loan
Claimholders, including without limitation any claims secured by the Working
Capital Priority Collateral, if any, in each case in accordance with the
terms of this Agreement,

     (D) in any Insolvency or Liquidation Proceeding, the Term Loan
Claimholders shall be entitled to file any pleadings, objections, motions or
agreements which assert rights or interests available to unsecured creditors
of the Grantors arising under either Bankruptcy Law or applicable
non-bankruptcy law, in each case in accordance with the terms of this
Agreement (including subject to the terms of Section 5.1 and Section 6.2),

     (E) in any Insolvency or Liquidation Proceeding, the Term Loan
Claimholders shall be entitled to vote on any plan of reorganization, except
to the extent inconsistent with the provisions hereof, and

     (F) the Term Loan Agent or any Term Loan Claimholder may exercise any
of its rights or remedies with respect to the Term Loan Priority Collateral
consistent with the terms of this Agreement.

     (b) So long as the Discharge of Term Loan Obligations has not occurred, whether or not
any Insolvency or Liquidation Proceeding has been commenced by or against Company or any
other Grantor:

     (i) the Working Capital Agent and the Working Capital Claimholders:

     (A) will not exercise or seek to exercise any rights or remedies
(including any right of set-off or recoupment) with respect to any Term Loan
Priority Collateral (including, without limitation, the exercise of any
right under any lockbox agreement, account control agreement, landlord
waiver or bailee’s letter or similar agreement or arrangement to which the
Working Capital Agent or any Working Capital Claimholder is a party) or
institute or commence (or join with any other Person in commencing) any
enforcement, collection, execution, levy or foreclosure action or proceeding
with respect to any Lien on the Term Loan Priority Collateral held by it
under the Working Capital Credit Documents or otherwise; and

     (B) will not contest, protest or object to any foreclosure proceeding
or action brought by the Term Loan Agent or any Term Loan Claimholder with
respect to the Term Loan Priority Collateral, or any other exercise by the
Term Loan Agent or any other Term Loan Claimholder, of any rights and
remedies

25

 

relating to the Term Loan Priority Collateral under the Term Loan
Credit Documents or otherwise; provided that the respective interests of the
Working Capital Claimholders attach to the proceeds thereof, subject to the
relative priorities described in Section 2 and Section 4;
and

     (C) will not object to the forbearance by the Term Loan Agent or the
other Term Loan Claimholders from bringing or pursuing any foreclosure
proceeding or action or any other exercise of any rights or remedies
relating to the Term Loan Priority Collateral; and

     (ii) subject to Section 5.1, the Term Loan Representative shall have
the exclusive right to enforce rights, exercise remedies (including set-off and the
right to credit bid their debt) and make determinations regarding the release,
disposition, or restrictions with respect to the Term Loan Priority Collateral
without any consultation with or the consent of the Working Capital Agent or any
other Working Capital Claimholder; provided, that

     (A) in any Insolvency or Liquidation Proceeding commenced by or against
Company or any other Grantor, the Working Capital Administrative Agent or
the Working Capital Agent may file a claim or statement of interest with
respect to the Working Capital Obligations,

     (B) the Working Capital Agent may take any action (not adverse to the
Liens on the Term Loan Priority Collateral securing the Term Loan
Obligations, or the rights of the Term Loan Agent, the other Term Loan
Claimholders, any Additional Agent or any Additional Claimholders to
exercise remedies in respect thereof) in order to preserve or protect its
Lien on the Term Loan Priority Collateral,

     (C) the Working Capital Claimholders shall be entitled to file any
necessary responsive or defensive pleadings in opposition to any motion,
claim, adversary proceeding or other pleading made by any person objecting
to or otherwise seeking the disallowance of the claims of the Working
Capital Claimholders, including without limitation any claims secured by the
Term Loan Priority Collateral, if any, in each case in accordance with the
terms of this Agreement,

     (D) in any Insolvency or Liquidation Proceeding, the Working Capital
Claimholders shall be entitled to file any pleadings, objections, motions or
agreements which assert rights or interests available to unsecured creditors
of the Grantors arising under either Bankruptcy Law or applicable
non-bankruptcy law, in each case in accordance with the terms of this
Agreement (including subject to the terms of Section 5.1 and Section 6.2),

     (E) in any Insolvency or Liquidation Proceeding, the Working Capital
Claimholders shall be entitled to vote on any plan of reorganization, except
to the extent inconsistent with the provisions hereof, and

     (F) the Working Capital Agent or any Working Capital Claimholder may
exercise any of its rights or remedies with respect to the Working Capital

26

 

Priority Collateral consistent with the terms of this Agreement.

     (c) So long as the Discharge of Working Capital Obligations has not occurred, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or against Company or
any other Grantor:

     (i) any Additional Agent and the applicable Additional Claimholders:

     (A) will not exercise or seek to exercise any rights or remedies
(including any right of set-off or recoupment) with respect to any Working
Capital Priority Collateral (including, without limitation, the exercise of
any right under any lockbox agreement, account control agreement, landlord
waiver or bailee’s letter or similar agreement or arrangement to which such
Additional Agent or any such Additional Claimholder is a party) or institute
or commence (or join with any other Person in commencing) any enforcement,
collection, execution, levy or foreclosure action or proceeding with respect
to any Lien on the Working Capital Priority Collateral held by it under the
Additional Documents or otherwise; and

     (B) will not contest, protest or object to any foreclosure proceeding
or action brought by the Working Capital Agent or any Working Claimholder
with respect to the Working Capital Priority Collateral, or any other
exercise by the Working Capital Agent or any other Working Capital
Claimholder, of any rights and remedies relating to the Working Capital
Priority Collateral under the Working Capital Credit Documents or otherwise;
provided that the respective interests of such Additional Agent and other
Additional Claimholders attach to the proceeds thereof, subject to the
relative priorities described in Section 2 and Section 4;
and

     (C) will not object to the forbearance by the Working Capital Agent or
the other Working Capital Claimholders from bringing or pursuing any
foreclosure proceeding or action or any other exercise of any rights or
remedies relating to the Working Capital Priority Collateral; and

     (ii) subject to Section 5.1, the Working Capital Agent and the other
Working Capital Claimholders shall have the exclusive right to enforce rights,
exercise remedies (including set-off and the right to credit bid their debt) and
make determinations regarding the release, disposition, or restrictions with respect
to the Working Capital Priority Collateral without any consultation with or the
consent of such Additional Agent or any such other Additional Claimholder;
provided, that

     (A) in any Insolvency or Liquidation Proceeding commenced by or against
Company or any other Grantor, such Additional Agent may file a claim or
statement of interest with respect to the applicable Additional Obligations,

     (B) such Additional Agent may take any action (not adverse to the Liens
on the Working Capital Priority Collateral securing the Working Capital
Obligations, or the rights of the Working Capital Agent or the other Working
Capital Claimholders to exercise remedies in respect thereof) in order to
preserve or protect its Lien on the Working Capital Priority Collateral,

27

 

     (C) such Additional Agent and other Additional Claimholders shall be
entitled to file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleading made
by any person objecting to or otherwise seeking the disallowance of the
claims of any of such Additional Agent and other Additional Claimholders,
including without limitation any claims secured by the Working Capital
Priority Collateral, if any, in each case in accordance with the terms of
this Agreement,

     (D) in any Insolvency or Liquidation Proceeding, such Additional Agent
and other Additional Claimholders shall be entitled to file any pleadings,
objections, motions or agreements which assert rights or interests available
to unsecured creditors of the Grantors arising under either Bankruptcy Law
or applicable non-bankruptcy law, in each case in accordance with the terms
of this Agreement (including subject to the terms of Section 5.1 and Section
6.2),

     (E) in any Insolvency or Liquidation Proceeding, such Additional Agent
and other Additional Claimholders shall be entitled to vote on any plan of
reorganization, except to the extent inconsistent with the provisions
hereof, and

     (F) such Additional Agent and other Additional Claimholders may
exercise any of its rights or remedies with respect to the Term Loan
Priority Collateral consistent with the terms of this Agreement.

     (d) So long as any Discharge of Additional Obligations has not occurred, whether or not
any Insolvency or Liquidation Proceeding has been commenced by or against Company or any
other Grantor:

     (i) the Working Capital Agent and the Working Capital Claimholders:

     (A) will not exercise or seek to exercise any rights or remedies
(including any right of set-off or recoupment) with respect to any Term Loan
Priority Collateral (including, without limitation, the exercise of any
right under any lockbox agreement, account control agreement, landlord
waiver or bailee’s letter or similar agreement or arrangement to which the
Working Capital Agent or any Working Capital Claimholder is a party) or
institute or commence (or join with any other Person in commencing) any
enforcement, collection, execution, levy or foreclosure action or proceeding
with respect to any Lien on the Term Loan Priority Collateral held by it
under the Working Capital Credit Documents or otherwise; and

     (B) will not contest, protest or object to any foreclosure proceeding
or action brought by any Additional Agent or any Additional Claimholder with
respect to the Term Loan Priority Collateral, or any other exercise by any
Additional Agent or any other Additional Claimholder, of any rights and
remedies relating to the Term Loan Priority Collateral under the Additional
Documents or otherwise; provided that the respective interests of the
Working Capital Claimholders attach to the proceeds thereof, subject to the
relative priorities described in Section 2 and Section 4;
and

28

 

     (C) will not object to the forbearance by any Additional Agent or any
other Additional Claimholder from bringing or pursuing any foreclosure
proceeding or action or any other exercise of any rights or remedies
relating to the Term Loan Priority Collateral.

     (e) In exercising rights and remedies with respect to its or their Priority Collateral,
the applicable Priority Agent and the applicable Priority Claimholders may enforce the
provisions of their respective Credit Documents and exercise Collateral remedies thereunder,
all in such order and in such manner as they may determine in the exercise of their sole
discretion. Such exercise and enforcement shall include the rights of an agent appointed by
the applicable Priority Agent and Priority Claimholders to sell or otherwise dispose of such
Priority Collateral upon foreclosure, to incur expenses in connection with such sale or
disposition, and to exercise all the rights and remedies of a secured creditor under the UCC
of any applicable jurisdiction and of a secured creditor under Bankruptcy Laws of any
applicable jurisdiction. For the avoidance of doubt, the Term Loan Representative shall
enforce rights against Collateral but shall not be entitled (in such capacity), unless
specifically authorized by the applicable Term Loan Agent or Additional Agent, to pursue any
remedy against the Company or a Grantor which is not a Collateral remedy.

     (f) Each Agent, on behalf of itself and Claimholders for which it acts as Agent, agrees
that it will not take or receive any Collateral or any proceeds of Collateral in connection
with the exercise of any right or remedy (including set-off or recoupment) with respect to
any Collateral, except to the extent such Collateral, or proceeds thereof, constitutes its
Priority Collateral, and that any such Collateral or proceeds thereof taken or received by
it that does not constitute its Priority Collateral will be paid over to the applicable
Priority Agent pursuant to Section 4.2, unless and until the relevant Discharge of
Obligations of the Priority Claimholders has occurred, except as expressly provided in
Section 6.4. Without limiting the generality of the foregoing, (i) unless and until
the Discharge of Working Capital Obligations has occurred, (x) the sole right of the Term
Loan Agent and the Term Loan Claimholders with respect to the Working Capital Priority
Collateral is to hold a Lien on the Working Capital Priority Collateral pursuant to the Term
Loan Credit Documents for the period and to the extent granted therein and to receive a
share of the proceeds thereof, if any, after the Discharge of Working Capital Obligations
has occurred in accordance with the terms of the Working Capital Credit Documents and
applicable law and (y) the sole right of any Additional Agent and the other applicable
Additional Claimholders with respect to the Working Capital Priority Collateral is to hold a
Lien on the Working Capital Priority Collateral pursuant to the Additional Documents for the
period and to the extent granted therein and to receive a share of the proceeds thereof, if
any, after the Discharge of Working Capital Obligations has occurred in accordance with the
terms of the Working Capital Credit Documents and applicable law, and (ii) unless and until
the Discharge of Term Loan Obligations and any Discharge of Additional Obligations has
occurred, the sole right of the Working Capital Agent and the Working Capital Claimholders
with respect to the Term Loan Priority Collateral is to hold a Lien on the Term Loan
Priority Collateral pursuant to the Working Capital Credit Documents for the period and to
the extent granted therein and to receive a share of the proceeds thereof, if any, after (x)
the Discharge of Term Loan Obligations has occurred in accordance with the terms of the Term
Loan Credit Documents and applicable law and (y) any Discharge of Additional Obligations has
occurred in accordance with the terms of the Additional Documents and applicable law.

     (g) Subject to the proviso in clause (ii) of Section 3.1(a), Section
3.1(b), Section 3.1(c) or Section 3.1(d), as applicable, (i) the Working
Capital Agent, for itself and on behalf of

29

 

the Claimholders for which it acts as Agent, (x) agrees that neither it nor such
Claimholders for which it acts as Agent will take any action that would hinder, delay or
impede any exercise of remedies by the Term Loan Agent and other Term Loan Claimholders or
any Additional Agent and other Additional Claimholders under the other Agreements with
respect to such Claimholders’ respective Priority Collateral, including any sale, lease,
exchange, transfer or other disposition of such Priority Collateral, whether by foreclosure
or otherwise, and (y) hereby waives any and all rights it or the Claimholders for which it
acts as Agent may have as a junior lien creditor or otherwise to object to the manner or
order in which the Term Loan Agent or the other Term Loan Claimholders, any Additional Agent
or any Additional Claimholders seek to enforce the Liens granted in their respective
Priority Collateral, and (ii) each of the Term Loan Agent and any Additional Agent, for
itself and on behalf of the Claimholders for which it acts as Agent, (x) agrees that neither
it nor such Claimholders for which it acts as Agent will take any action that would hinder,
delay or impede any exercise of remedies by the Working Capital Agent and other Working
Capital Claimholders under the other Agreements with respect to such Claimholders’
respective Priority Collateral, including any sale, lease, exchange, transfer or other
disposition of such Priority Collateral, whether by foreclosure or otherwise, and (y) hereby
waives any and all rights it or the Claimholders for which it acts as Agent may have as a
junior lien creditor or otherwise to object to the manner or order in which the Working
Capital Agent or the other Working Capital Claimholders seek to enforce the Liens granted in
their respective Priority Collateral.

     3.2 Actions Upon Breach.

     (a) If any Claimholder commences or participates in any action or proceeding against
Company, any other Grantor or the Collateral in violation of this Agreement, any Agent for
any other Claimholders may interpose in the name of such Claimholders or in the name of
Company or such Grantor the making of this Agreement as a defense or dilatory plea.

     (b) Should any Claimholder in any way take, or attempt or threaten to take, contrary
to this Agreement, any action with respect to Collateral, or fail to take any action
required by this Agreement, any Agent for any other Claimholders (in its own name or in the
name of a Grantor) may obtain relief against such offending Claimholder by injunction,
specific performance and/or other appropriate equitable relief, it being understood and
agreed by all of the Claimholders that (i) the damages from such actions may be difficult to
ascertain and may be irreparable, and (ii) the offending Claimholder waives any defense that
such other Claimholders cannot demonstrate damage or be made whole by the awarding of
damages.

SECTION 4

PAYMENTS

     4.1 Application of Proceeds.

     (a) So long as the Discharge of Term Loan Obligations and the Discharge of Additional
Obligations have not occurred, any proceeds of Term Loan Priority Collateral received in
connection with the sale or other disposition of such Collateral, or collection on such
Collateral upon the exercise of remedies, shall be applied as follows:

     first, to the payment of costs and expenses of the Term Loan Agent or
any Additional Agent, as applicable, in connection with such sale or disposition of
or

30

 

collection on such Collateral, and

     second, to the payment, on a pro rata basis, of (x) the Term Loan Obligations
in accordance with the relevant Term Loan Credit Documents until the Discharge of
Term Loan Obligations shall have occurred and (y) any Additional Obligations in
accordance with the applicable Additional Documents until the Discharge of
Additional Obligations shall have occurred.

Upon the Discharge of Term Loan Obligations, the Term Loan Agent shall deliver to any
Additional Agent or (if there is no Additional Agent) the Working Capital Agent any proceeds
of Term Loan Priority Collateral held by it in the same form as received, with any necessary
endorsements or, as a court of competent jurisdiction may otherwise direct. Upon the
Discharge of Additional Obligations, the applicable Additional Agent shall deliver to the
Term Loan Agent or any Additional Agent or (if there is no Term Loan Agent or Additional
Agent) the Working Capital Agent any proceeds of Term Loan Priority Collateral held by it in
the same form as received, with any necessary endorsements or, as a court of competent
jurisdiction may otherwise direct. Any such proceeds of Term Loan Priority Collateral so
received by the Working Capital Agent shall be applied by the Working Capital Agent to the
Working Capital Obligations in such order as specified in the Working Capital Credit
Documents and otherwise in accordance with the Working Capital Documents. Any proceeds of
Term Loan Priority Collateral not otherwise applied in accordance with this Section
4.1(a) shall be delivered to the relevant Grantor or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdictions may direct. The
foregoing provisions of this Section 4.1(a) shall not impose on Term Loan Agent or
any other Term Loan Claimholder, or any Additional Agent or any other Additional
Claimholder, any obligations which would conflict with prior perfected claims therein in
favor of any other person or any order or decree of any court or other governmental
authority or any applicable law.

     (b) So long as the Discharge of Working Capital Obligations has not occurred, any
proceeds of Working Capital Priority Collateral received in connection with the sale or
other disposition of such Collateral, or collection on such Collateral upon the exercise of
remedies, shall be applied by the Working Capital Agent to the Working Capital Obligations
in such order as specified in the relevant Working Capital Credit Documents. Upon the
Discharge of Working Capital Obligations, the Working Capital Agent shall deliver to the
Term Loan Representative any proceeds of Working Capital Priority Collateral held by it in
the same form as received for application in accordance with Section 4.1(a), with
any necessary endorsements or, as a court of competent jurisdiction may otherwise direct.
Upon the Discharge of Term Loan Obligations and the Discharge of the Working Capital
Obligations, the Term Loan Agent shall deliver to any Additional Agent any proceeds of
Working Capital Priority Collateral held by it in the same form as received, with any
necessary endorsements or, as a court of competent jurisdiction may otherwise direct. Upon
the Discharge of Additional Obligations related to a particular Additional Credit Facility
and the Discharge of the Working Capital Obligations, the applicable Additional Agent shall
deliver to the Term Loan Agent or any other Additional Agent any proceeds of Working Capital
Priority Collateral held by it in the same form as received, with any necessary endorsements
or, as a court of competent jurisdiction may otherwise direct. Any proceeds of Working
Capital Priority Collateral not otherwise applied in accordance with this Section
4.1(b) shall be delivered to the relevant Grantor or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdictions may direct. The
foregoing provisions of this Section 4.1(b) shall not impose on Working Capital
Agent or any other Working Capital Claimholder any obligations which would conflict with
prior perfected claims therein in favor of

31

 

any other person or any order or decree of any court or other governmental authority or
any applicable law.

     (c) Except as set forth in this Section 4.1(c), nothing in this Agreement shall
require any Agent or any Claimholder to determine the source or priority of funds received
by it and applied to its Obligations. In the absence of fraudulent conduct, willful
misconduct or gross negligence, the sole remedy of any Agent or Claimholder for the tender
and application of proceeds of its Priority Collateral to the Obligations of the
Non-Priority Claimholders shall be to proceed directly against the Grantors unless, prior to
the application of such proceeds to the Obligations of the Non-Priority Claimholders, the
applicable Agent for the applicable Non-Priority Claimholders shall have a received a
written notice that such proceeds are (or will be) the proceeds of the Priority
Claimholders’ Priority Collateral with such notice to contain the following information: (i)
a description of the Priority Claimholders’ Priority Collateral that is being sold,
transferred or otherwise disposed of to generate the proceeds, (ii) a description of the
transaction generating the proceeds and (iii) the actual or anticipated date of such
transaction.

     4.2 Payment Turnover.

     (a) So long as the Discharge of Working Capital Obligations has not occurred, any
Working Capital Priority Collateral or proceeds thereof (together with assets or proceeds
subject to Liens referred to in Section 6.4) received by the Term Loan Agent or any
other Term Loan Claimholders, or by any Additional Agent or any other applicable Additional
Claimholders, in connection with the exercise of any right or remedy (including set-off or
recoupment) in respect of the Working Capital Priority Collateral shall be segregated and
held in trust and forthwith paid over to the Working Capital Agent in the same form as
received, with any necessary endorsements or as a court of competent jurisdiction may
otherwise direct. The Working Capital Agent is hereby authorized to make any such
endorsements as agent for the Term Loan Agent or any such Term Loan Claimholders, or such
Additional Agent or any such Additional Claimholders. This authorization is coupled with an
interest and is irrevocable until such time as this Agreement is terminated in accordance
with its terms.

     (b) So long as the Discharge of Term Loan Obligations and the Discharge of Additional
Obligations have not occurred, any Term Loan Priority Collateral or proceeds thereof
(together with assets or proceeds subject to Liens referred to in Section 6.4)
received by the Working Capital Agent or any other Working Capital Claimholders in
connection with the exercise of any right or remedy (including set-off or recoupment) in
respect of the Term Loan Priority Collateral shall be segregated and held in trust and
forthwith paid over to the Term Loan Representative for application in accordance with
Section 4.1(a) in the same form as received, with any necessary endorsements or as a
court of competent jurisdiction may otherwise direct. Each of the Term Loan Agent and any
Additional Agent is hereby authorized to make any such endorsements as agent for the Working
Capital Agent or any such Working Capital Claimholders. This authorization is coupled with
an interest and is irrevocable until such time as this Agreement is terminated in accordance
with its terms.

SECTION 5

OTHER AGREEMENTS

     5.1 Releases.

32

 

     (a) If, in connection with:

     (i) the exercise of any Term Loan Agent’s remedies in respect of the Term Loan
Priority Collateral, including any sale, lease, exchange, transfer or other
disposition of any such Collateral after an event of default under the terms of the
Term Loan Credit Documents, and as defined therein, has occurred and is continuing
by or on behalf of Term Loan Agent or a Grantor with the approval of Term Loan Agent
(a “Term Loan Collateral Exercise of Remedies”); or

     (ii) any sale, lease, exchange, transfer or other disposition of any Term Loan
Priority Collateral permitted or otherwise consented to under the terms of the Term
Loan Credit Documents (whether or not an event of default thereunder, and as defined
therein, has occurred and is continuing) (a “Term Loan Collateral Disposition”);

     the Term Loan Agent, for itself or on behalf of any of the Term Loan Claimholders,
releases any of its Liens on any part of the Term Loan Priority Collateral, then the Liens,
if any, of the Working Capital Agent, for itself or for the benefit of the Working Capital
Claimholders, on such Term Loan Priority Collateral, shall be automatically, unconditionally
and simultaneously released (the “Term Collateral Second Lien Release”) and the Working
Capital Agent, for itself and the Working Capital Claimholders shall be deemed to have
authorized the Term Loan Agent to file UCC amendments and terminations covering the Term
Loan Priority Collateral so sold or otherwise disposed of with respect to the UCC financing
statements between any Grantor and the Working Capital Agent to evidence such release and
termination and promptly upon the request of the Term Loan Agent execute and deliver such
other release documents and confirmations of the authorization to file UCC amendments and
terminations provided for herein, in each case as the Term Loan Agent may require in
connection with such sale or other disposition by the Term Loan Agent, the Term Loan Agent’s
agents or any Grantor with the consent of the Term Loan Agent to evidence and effectuate
such termination and release; provided, that, (A) any such release or UCC
amendment or termination by or on behalf of the Working Capital Agent shall not extend to or
otherwise affect any of the rights, if any, of the Working Capital Agent to the proceeds
from any such sale or other disposition of Term Loan Priority Collateral upon the Discharge
of Term Loan Obligations and the Discharge of Additional Obligations and (B) the Term
Collateral Second Lien Release shall not occur without the consent of the Working Capital
Agent (x) in the case of a Term Loan Collateral Exercise of Remedies, as to any Term Loan
Priority Collateral the net proceeds of the disposition of which will not be applied to
repay the Term Loan Obligations or Additional Obligations or (y) in the case of a Term Loan
Collateral Disposition, if the Term Loan Collateral Disposition is prohibited by any
provision of the Working Capital Credit Agreement.

     (b) If, in connection with:

     (i) the exercise of any Additional Agent’s remedies in respect of the Term Loan
Priority Collateral, including any sale, lease, exchange, transfer or other
disposition of any such Collateral after an event of default under the terms of the
applicable Additional Documents, and as defined therein, has occurred and is
continuing by or on behalf of such Additional Agent or a Grantor with the approval
of such Additional Agent (a “Additional Collateral Exercise of Remedies”); or

     (ii) any sale, lease, exchange, transfer or other disposition of any Term Loan
Priority Collateral permitted or otherwise consented to under the terms of the
applicable

33

 

Additional Documents (whether or not an event of default thereunder, and as
defined therein, has occurred and is continuing) (a “Additional Collateral
Disposition”);

     such Additional Agent, for itself or on behalf of any of the applicable Additional
Claimholders, releases any of its Liens on any part of the Term Loan Priority Collateral,
then the Liens, if any, of the Working Capital Agent, for itself or for the benefit of the
Working Capital Claimholders, on such Term Loan Priority Collateral, shall be automatically,
unconditionally and simultaneously released (the “Additional Collateral Second Lien
Release”) and the Working Capital Agent, for itself and the Working Capital Claimholders
shall be deemed to have authorized such Additional Agent to file UCC amendments and
terminations covering the Term Loan Priority Collateral so sold or otherwise disposed of
with respect to the UCC financing statements between any Grantor and the Working Capital
Agent to evidence such release and termination and promptly upon the request of such
Additional Agent execute and deliver such other release documents and confirmations of the
authorization to file UCC amendments and terminations provided for herein, in each case as
such Additional Agent may require in connection with such sale or other disposition by such
Additional Agent, such Additional Agent’s agents or any Grantor with the consent of such
Additional Agent to evidence and effectuate such termination and release; provided,
that, (A) any such release or UCC amendment or termination by or on behalf of the
Working Capital Agent shall not extend to or otherwise affect any of the rights, if any, of
the Working Capital Agent to the proceeds from any such sale or other disposition of Term
Loan Priority Collateral upon the Discharge of Term Loan Obligations and the Discharge of
Additional Obligations and (B) the Additional Collateral Second Lien Release shall not occur
without the consent of the Working Capital Agent (x) in the case of an Additional Collateral
Exercise of Remedies, as to any Term Loan Priority Collateral the net proceeds of the
disposition of which will not be applied to repay the Term Loan Obligations or Additional
Obligations or (y) in the case of a Additional Collateral Disposition, if the Additional
Collateral Disposition is prohibited by any provision of the Working Capital Credit
Agreement.

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

     (d) Until the Discharge of Term Loan Obligations occurs, to the extent that the Term
Loan Agent for itself and on behalf of the Term Loan Claimholders has released any Lien on
Term Loan Priority Collateral and any such Liens are later reinstated or the Term Loan
Agent, on behalf of the Term Loan Claimholders, obtain any new Liens from Grantors on Term
Loan Priority Collateral, then the Working Capital Agent for itself and on behalf of the
Working Capital Claimholders shall be granted a Lien on any such Term Loan Priority
Collateral or have its Lien reinstated, as the case may be, subject to the priorities set
forth in Section 2. Until the Discharge of Additional Obligations occurs, to the
extent that the applicable Additional Agent for itself and on behalf of the applicable
Additional Claimholders has released any Lien on Term Loan Priority Collateral and any such
Liens are later reinstated or such Additional Agent, on behalf of such Additional
Claimholders, obtain any new Liens from Grantors, then the Working

34

 

Capital Agent for itself and on behalf of the Working Capital Claimholders shall be
granted a Lien on any such Term Loan Priority Collateral or have its Lien reinstated, as the
case may be, subject to the priorities set forth in Section 2.

     (e) If, in connection with:

     (i) the exercise of any Working Capital Agent’s remedies in respect of the
Working Capital Priority Collateral, including any sale, lease, exchange, transfer
or other disposition of any such Collateral after an event of default under the
terms of the Working Capital Credit Documents, and as defined therein, has occurred
and is continuing by or on behalf of Working Capital Agent or a Grantor with the
approval of Working Capital Agent (a “Working Capital Collateral Exercise of
Remedies”); or

     (ii) any sale, lease, exchange, transfer or other disposition of any Working
Capital Priority Collateral permitted or otherwise consented to under the terms of
the Working Capital Credit Documents (whether or not an event of default thereunder,
and as defined therein, has occurred and is continuing) (a “Working Capital
Collateral Disposition”);

     the Working Capital Agent, for itself or on behalf of any of the Working Capital
Claimholders, releases any of its Liens on any part of the Working Capital Priority
Collateral, then the Liens, if any, of the Term Loan Agent, for itself or for the benefit of
the Term Loan Claimholders, and of any Additional Agent, for itself or for the benefit of
the applicable Additional Claimholders, on such Working Capital Priority Collateral, shall
be automatically, unconditionally and simultaneously released (the “Working Capital
Collateral Second Lien Release”) and

     (1) the Term Loan Agent, for itself and the Term Loan Claimholders shall be
deemed to have authorized the Working Capital Agent to file UCC amendments and
terminations covering the Working Capital Priority Collateral so sold or otherwise
disposed of with respect to the UCC financing statements between any Grantor and the
Term Loan Agent to evidence such release and termination and promptly upon the
request of the Working Capital Agent execute and deliver such other release
documents and confirmations of the authorization to file UCC amendments and
terminations provided for herein, in each case as the Working Capital Agent may
require in connection with such sale or other disposition by the Working Capital
Agent, the Working Capital Agent’s agents or any Grantor with the consent of the
Working Capital Agent to evidence and effectuate such termination and release;
provided, that, (A) any such release or UCC amendment or termination
by or on behalf of the Term Loan Agent shall not extend to or otherwise affect any
of the rights, if any, of the Term Loan Agent to the proceeds from any such sale or
other disposition of Working Capital Priority Collateral upon the Discharge of
Working Capital Obligations and (B) the Working Capital Second Lien Release shall
not occur without the consent of the Term Loan Agent (x) in the case of a Working
Capital Collateral Exercise of Remedies, as to any Working Capital Priority
Collateral the net proceeds of the disposition of which will not be applied to repay
the Working Capital Obligations or (y) in the case of a Working Capital Collateral
Disposition, if the Working Capital Collateral Disposition is prohibited by any
provision of the Term Loan Credit Agreement, and

     (2) any Additional Agent, for itself and the applicable Additional

35

 

Claimholders shall be deemed to have authorized the Working Capital Agent to
file UCC amendments and terminations covering the Working Capital Priority
Collateral so sold or otherwise disposed of with respect to the UCC financing
statements between any Grantor and such Additional Agent to evidence such release
and termination and promptly upon the request of the Working Capital Agent execute
and deliver such other release documents and confirmations of the authorization to
file UCC amendments and terminations provided for herein, in each case as the
Working Capital Agent may require in connection with such sale or other disposition
by the Working Capital Agent, the Working Capital Agent’s agents or any Grantor with
the consent of the Working Capital Agent to evidence and effectuate such termination
and release; provided, that, (A) any such release or UCC amendment
or termination by or on behalf of such Additional Agent shall not extend to or
otherwise affect any of the rights, if any, of such Additional Agent to the proceeds
from any such sale or other disposition of Working Capital Priority Collateral upon
the Discharge of Working Capital Obligations and (B) the Working Capital Second Lien
Release shall not occur without the consent of such Additional Agent (x) in the case
of a Working Capital Collateral Exercise of Remedies, as to any Working Capital
Priority Collateral the net proceeds of the disposition of which will not be applied
to repay the Working Capital Obligations or (y) in the case of a Working Capital
Collateral Disposition, if the Working Capital Collateral Disposition is prohibited
by any provision of the applicable Additional Credit Facility.

     (f) In the event that Proceeds of Collateral are received in connection with any sale,
lease, exchange, transfer or other disposition of any such Collateral that directly or
indirectly involves a combination of Working Capital Priority Collateral or Term Loan
Priority Collateral, the Working Capital Agent, the Term Loan Agent and any Additional Agent
shall use commercially reasonable efforts in good faith to allocate the Proceeds received in
connection with such any sale, lease, exchange, transfer or other disposition of any such
Collateral to the Working Capital Priority Collateral and the Term Loan Priority Collateral.
If the Working Capital Agent, the Term Loan Agent and any Additional Agent are unable to
agree on such allocation within ten (10) days (or such other period of time to which the
Working Capital Agent, the Term Loan Agent and any Additional Agent mutually agree) of the
consummation of such sale, lease, exchange, transfer or other disposition, the portion of
such Proceeds that shall be allocated as Proceeds of Working Capital Priority Collateral for
purposes of this Agreement shall be an amount equal to the sum of the net book value of the
Accounts and Inventory included in the Collateral so disposed of (determined at the time of
such sale, lease, exchange, transfer or other disposition) with the balance of the Proceeds
to be allocated to the Term Loan Priority Collateral; provided however, this Section
5.1(f) shall not apply in the event that the Term Loan Agent or the other Term Loan
Claimholders, the Working Capital Agent or the other Working Capital Claimholders or any
Additional Agent or the other applicable Additional Claimholders did not consent to the
sale, lease, exchange, transfer or other disposition.

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

36

 

Until the Discharge of Working Capital Obligations occurs, each Additional Agent, for
itself and on behalf of the applicable Additional Claimholders, hereby irrevocably
constitutes and appoints the Working Capital Agent and any officer or agent of the Working
Capital Agent, with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of such Additional Agent or any
such Claimholder or in the Working Capital Agent’s own name, from time to time in the
Working Capital Agent’s discretion, for the purpose of carrying out the terms of Section
5.1(e), to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary to accomplish the purposes of Section 5.1(e),
including any endorsements or other instruments of transfer or release. Each authorization
under this Section 5.1(g) is coupled with an interest and is irrevocable until such
time as this Agreement is terminated in accordance with its terms.

     (h) Until the Discharge of Working Capital Obligations occurs, to the extent that the
Working Capital Agent for itself and on behalf of the Working Capital Claimholders has
released any Lien on Working Capital Priority Collateral and any such Liens are later
reinstated or the Working Capital Agent, on behalf of the Working Capital Claimholders,
obtain any new Liens from Grantors on any Working Capital Priority Collateral, then the Term
Loan Agent for itself and on behalf of the Term Loan Claimholders shall be granted a Lien on
any such Working Capital Priority Collateral or have its Lien reinstated, as the case may
be, and each Additional Agent for itself and on behalf of the applicable Additional
Claimholders shall be granted a Lien on any such Working Capital Priority Collateral or have
its Lien reinstated, as the case may be, in each case subject to the priorities set forth in
Section 2.

     5.2 Insurance. The Working Capital Agent, the Term Loan Agent and any Additional Agent shall
be named as additional insureds with respect to liability insurance policies maintained from time
to time by any Grantor, and the Working Capital Agent, the Term Loan Agent, each Additional Agent
or the Control Agent (on behalf of the Agent Parties and Claimholders), as their interests may
appear, shall be named as a loss payee under any casualty insurance policies maintained from time
to time by any Grantor, in each case as and to the extent required in the applicable Credit
Documents. As between the applicable Priority Agent and the applicable Priority Claimholders, on
the one hand, and the applicable Non-Priority Agent and the applicable Non-Priority Claimholders on
the other hand, the applicable Priority Agent and the applicable Priority Claimholders shall have
the sole and exclusive right, in accordance with and subject to the terms of the applicable Credit
Documents, (a) to adjust or settle any insurance policy or claim in the event of any loss with
respect to their respective Priority Collateral and (b) to approve any award granted in any
condemnation or similar proceeding affecting their respective Priority Collateral. All proceeds of
any such policy and any such award in respect of any such Priority Collateral that are payable to
the Agents shall be paid to the applicable Priority Agent (on a ratable basis or as may be
otherwise agreed as between the Term Loan Agent and any Additional Agent, in the case of Term Loan
Priority Collateral) for the benefit of the applicable Priority Claimholders to the extent required
under their respective Credit Documents, and thereafter to the applicable Non-Priority Agent (on a
ratable basis or as may be otherwise agreed as between the Term Loan Agent and any Additional
Agent, in the case of Term Loan Priority Collateral) for the benefit of the applicable Non-Priority
Claimholders to the extent required under their respective Credit Documents, and then to the owner
of the subject property or as a court of competent jurisdiction may otherwise direct. If any
Claimholder shall, at any time, receive any proceeds of any such insurance policy or any such award
in contravention of this Agreement, it shall pay such proceeds over to the Priority Agent in
accordance with the terms of Section 4.2. In the event that an Agent is named as loss
payee on property which is not its Priority Collateral, such Agent agrees to comply with the
instructions of the Priority Agent with respect to such collateral (a) in adjusting or settling any
insurance policy or claim in the event of any loss with respect to such Priority Collateral and (b)
to approving any award granted in any condemnation or similar proceeding affecting such Priority

37

 

Collateral.

     5.3 Control Agent for Perfection.

     (a) The Term Loan Agent, on behalf of itself and the Term Loan Claimholders, and the
Working Capital Agent, on behalf of itself and the Working Capital Claimholders, and any
Additional Agent, on behalf of itself and the applicable Additional Claimholders, each
hereby appoint Wells Fargo Bank, National Association as its collateral agent (in such
capacity, together with any successor in such capacity appointed by the Term Loan Agent, the
Working Capital Agent and any Additional Agent, the “Control Agent”) for the limited purpose
of acting as the agent on behalf of the Term Loan Agent (on behalf of itself and the Term
Loan Claimholders), the Working Capital Agent (on behalf of itself and the Working Capital
Claimholders) and any Additional Agent (on behalf of itself and the applicable Additional
Claimholders) with respect to the Control Collateral. The Control Agent accepts such
appointment and agrees to hold the Control Collateral in its possession or control (or in
the possession or control of its agents or bailees) as Control Agent for the benefit of the
Term Loan Agent (on behalf of itself and the Term Loan Claimholders) and the Working Capital
Agent (on behalf of itself and the Working Capital Claimholders) and any Additional Agent
(on behalf of itself and the applicable Additional Claimholders) and any permitted assignee
of any thereof solely for the purpose of perfecting the security interest granted to such
parties in such Control Collateral, subject to the terms and conditions of this Section
5.3. The Term Loan Agent, the Working Capital Agent and any Additional Agent hereby
acknowledge that the Control Agent shall obtain “control” under the UCC over each Controlled
Account as contemplated by the Term Loan Collateral Documents, the Working Capital
Collateral Documents and the applicable Additional Collateral Documents for the benefit of
both the Term Loan Agent (on behalf of itself and the Term Loan Claimholders) and the
Working Capital Agent (on behalf of itself and the Working Capital Claimholders) and any
Additional Agent (on behalf of itself and the applicable Additional Claimholders) pursuant
to a control agreements relating to a Controlled Account if requested by the Working Capital
Agent, the Term Loan Agent and any Additional Agent to act in such capacity.

     (b) The Control Agent, the Term Loan Agent, on behalf of itself and the Term Loan
Claimholders, and the Working Capital Agent, on behalf of itself and the Working Capital
Claimholders, and any Additional Agent, on behalf of itself and the applicable Additional
Claimholders, each hereby agrees that the applicable Priority Agent shall have the sole and
exclusive right and authority to give instructions to, and otherwise direct, the Control
Agent in respect of the Control Collateral constituting such Priority Agent’s constituents’
Priority Collateral or any control agreement with respect to any Control Collateral until
the date upon which the Discharge of Obligations shall have occurred with respect to the
Obligations owed to Claimholders for whom the applicable Priority Agent acts as Agent, and
none of the Non-Priority Claimholders will impede, hinder, delay or interfere with the
exercise of such rights by the Priority Agent in any respect. The Grantors hereby jointly
and severally agree to pay, reimburse, indemnify and hold harmless the Control Agent to the
same extent and on the same terms that the Grantors are required to do so for the Working
Capital Agent in accordance with the Working Capital Credit Agreement (if the Control Agent
is the Working Capital Agent) or for the Term Loan Agent in accordance with the Term Loan
Credit Agreement (if the Control Agent is the Term Loan Agent) or for any Additional Agent
in accordance with the applicable Additional Credit Facility (if the Control Agent is such
Additional Agent). The Working Capital Claimholders hereby jointly and severally agree to
pay, reimburse, indemnify and hold harmless the Control Agent to the same extent and on the
same terms that the Working Capital Claimholders are required to do so for the Working
Capital Agent in accordance with the

38

 

Working Capital Credit Agreement. The Term Loan Claimholders hereby jointly and
severally agree to pay, reimburse, indemnify and hold harmless the Control Agent to the same
extent and on the same terms that the Term Loan Claimholders are required to do so for the
Term Loan Agent in accordance with the Term Loan Credit Agreement. The applicable
Additional Claimholders hereby jointly and severally agree to pay, reimburse, indemnify and
hold harmless the Control Agent to the same extent and on the same terms that the such
Additional Claimholders are required to do so for the applicable Additional Agent in
accordance with the applicable Additional Credit Facility.

     (c) Except as set forth below, the Control Agent shall have no obligation whatsoever to
the Agents or any other Claimholder including, without limitation, any obligation to assure
that the Control Collateral is genuine or owned by any Grantor or one of their respective
Subsidiaries or to preserve rights or benefits of any Person except as expressly set forth
in this Section 5.3. In acting on behalf of the Agents and other Claimholders, the
duties or responsibilities of the Control Agent under this Section 5.3 shall be
limited solely (i) to physically holding the Control Collateral delivered to the Control
Agent by any Grantor as agent for the Term Loan Agent (on behalf of itself and the Term Loan
Claimholders), the Working Capital Agent (on behalf of itself and the Working Capital
Claimholders) and any Additional Agent (on behalf of itself and the applicable Additional
Claimholders), in each case for purposes of perfecting the Lien held by the Term Loan Agent,
the Working Capital Agent and each Additional Agent, (ii) exercising control of Deposit
Accounts on which it has control and forwarding the funds on deposit therein to the Agent
for the applicable Priority Claimholders, in each case as and to the extent provided in the
Credit Documents and (iii) delivering such collateral as set forth in Section
5.3(e).

     (d) The Control Agent shall not have, by reason of this Agreement or any other document
a fiduciary relationship in respect of the Term Loan Agent or any Term Loan Claimholder, the
Working Capital Agent or any Working Capital Claimholder, or any Additional Agent or any
Additional Claimholder.

     (e) (i) Upon the Discharge of Term Loan Obligations and the Discharge of Additional
Obligations, the Control Agent shall deliver any Control Collateral in the possession of the
Control Agent to the Working Capital Agent together with any necessary endorsements (or
otherwise allow the Working Capital Agent to obtain control of such Control Collateral) or
as a court of competent jurisdiction may otherwise direct and the Working Capital Agent
shall accept and succeed to the role of the Control Agent as the agent for perfection on
such Control Collateral.

     (ii) Upon the Discharge of Working Capital Obligations and the Discharge of
Additional Obligations, the Control Agent shall deliver any Control Collateral in
the possession of the Control Agent to the Term Loan Agent together with any
necessary endorsements (or otherwise allow the Term Loan Agent to obtain control of
such Control Collateral) or as a court of competent jurisdiction may otherwise
direct and the Term Loan Agent shall accept and succeed to the role of the Control
Agent as the agent for perfection on such Control Collateral.

     (iii) Upon the Discharge of Working Capital Obligations and the Discharge of
Term Loan Obligations, if there is at the time any Additional Agent, the Control
Agent shall deliver any Control Collateral in the possession of the Control Agent to
such Additional Agent (or otherwise allow such Additional Agent for such Additional
Claimholders to obtain control of such Control Collateral) or as a court of
competent

39

 

jurisdiction may otherwise direct and such Additional Agent shall accept and
succeed to the role of the Control Agent as the agent for perfection on such Control
Collateral, provided that if there is at the time more than one Additional
Agent, the Control Agent shall retain such Control Collateral. 

     (f) The Control Agent shall have an unfettered right to resign as Control Agent upon 30
days notice to each Agent Party. If upon the effective date of such resignation no
successor to the Control Agent has been appointed by the Agent Parties, the Control Agent
shall deliver to the Working Capital Agent (if then an Agent Party) or to another Agent (if
the Working Capital Agent is not then an Agent Party) the Control Collateral together with
any necessary endorsements (or otherwise allow such Agent to obtain control of such Control
Collateral) or as a court of competent jurisdiction may otherwise direct and such Agent
shall accept and succeed to the role of the Control Agent as the agent for perfection on the
Control Collateral.

     (g) Notwithstanding the foregoing, each Agent, for and on behalf of itself and the
Claimholders represented thereby, agrees to hold all Control Collateral in its possession,
custody, or control (or in the possession, custody, or control of agents or bailees
therefor) as agent for the other Claimholders solely for the purpose of perfecting the
security interest granted to each other Agent Party or Claimholder in such Control
Collateral, subject to the terms and conditions of this Section. Such Agent shall not have
any obligation whatsoever to the other Claimholders to assure that such Control Collateral
is genuine or owned by any Grantor or any other Person or to preserve rights or benefits of
any Person therein. The duties or responsibilities of such Agent under this Section 5.3(g)
are and shall be limited solely to holding or maintaining control of such Control Collateral
as agent for the other Claimholders for purposes of perfecting the Lien held by the
Claimholders. Such Agent is not and shall not be deemed to be a fiduciary of any kind for
any Claimholder or any other Person.

     5.4 Access to Term Loan Priority Collateral.

     (a) In the event the Term Loan Representative shall acquire control or possession of
any of the Term Loan Priority Collateral or shall, through the exercise of remedies under
the Term Loan Credit Documents or any Additional Documents or otherwise, sell any of the
Term Loan Priority Collateral to any third party (a “Third Party Purchaser”), such
Agent shall, to the extent permitted by law, permit the Working Capital Agent (or shall
require as a condition of such sale to the Third Party Purchaser that the Third Party
Purchaser agree to permit the Working Capital Agent), at the Working Capital Agent’s option:
(i) to enter any of the premises of any Grantor (or Third Party Purchaser) constituting
such Term Loan Priority Collateral under such control or possession (or sold to a Third
Party Purchaser) in order to inspect, remove or take any action with respect to the Working
Capital Priority Collateral or to enforce the Working Capital Agent’s rights with respect
thereto, including, but not limited to, the examination and removal of Working Capital
Priority Collateral and the examination and duplication of any Collateral (to the extent not
Working Capital Priority Collateral) under such control or possession (or sold to a Third
Party Purchaser) consisting of books and records of any Grantor related to the Working
Capital Priority Collateral; (ii) to use the Collateral for the purpose of manufacturing or
processing raw materials or work-in-process into finished inventory; (iii) to use any of the
Collateral under such control or possession (or sold to a Third Party Purchaser) consisting
of computers or other data processing equipment related to the storage or processing of
records, documents or files pertaining to the Working Capital Priority Collateral and use
any Collateral under such control or possession (or sold to a Third Party Purchaser)
consisting of other equipment to handle, deal with or dispose of any Working Capital
Priority Collateral pursuant to

40

 

the Working Capital Agent’s rights as set forth in the Working Capital Credit
Documents, the UCC of any applicable jurisdiction and other applicable law, and (iv) to use
any of the Collateral consisting of intellectual property rights owned or controlled by (x)
the Term Loan Agent or the other Term Loan Claimholders or (y) such Additional Agent or the
other applicable Additional Claimholders, as applicable, as is or may be necessary for the
Working Capital Agent to deal with the Working Capital Priority Collateral (including the
sale or other disposition thereof). Such use by Working Capital Agent of the Collateral
shall not be on an exclusive basis.

     (b) The Working Capital Agent hereby acknowledges, for itself and on behalf of the
other Working Capital Claimholders that, during the period any Working Capital Priority
Collateral shall be under control or possession of the Term Loan Agent or any Additional
Agent, such Agent shall not be obligated to take any action to protect or to procure
insurance with respect to such Working Capital Priority Collateral, it being understood that
such Agent shall have no responsibility for loss or damage to the Working Capital Priority
Collateral (other than as a result of the gross negligence or willful misconduct of such
Agent or its agents, as determined by a final non-appealable judgment of a court of
competent jurisdiction) and that all the risk of loss or damage to the Working Capital
Priority Collateral shall remain with the Working Capital Claimholders; provided,
that to the extent insurance obtained by such Agent provides coverage for risks relating to
access to or use of Working Capital Priority Collateral, the Working Capital Agent will be
made an additional named insured thereunder.

     (c) The rights of Working Capital Agent set forth in Section 5.4(a)(i)-(iii)
above shall continue until the later of (i) 180 days after the date Working Capital Agent
first receives written notice from the Term Loan Representative that it has control or
possession of the Term Loan Priority Collateral at issue and (ii) the sale or other
disposition of such Priority Collateral by the Term Loan Representative or its constituents.
Such time period shall be tolled during the pendency of any Insolvency Proceeding of any
Grantor or other proceedings pursuant to which the Working Capital Claimholders, the Term
Loan Claimholders and any Additional Claimholders are effectively stayed from enforcing
their rights against the Working Capital Priority Collateral. In no event shall any Term
Loan Claimholder or any Additional Claimholder take any action to interfere, limit or
restrict the rights of Working Capital Agent or the exercise of such rights by Working
Capital Agent to have access to or to use any of such Collateral pursuant to Section
5.4(a) prior to the expiration of such period.

     (d) During the actual occupation by the Working Capital Agent or its agents or
representatives, of any real property constituting Term Loan Priority Collateral during the
access and use period permitted by Section 5.4(a) above, the Working Capital
Claimholders shall be obligated to pay to the Term Loan Claimholders and any Additional
Claimholders any rent payable to third parties and all utilities, taxes and other
maintenance and operating costs of such real property during any such period of actual
occupation by the Working Capital Agent or its agents or representatives, but only to the
extent the Term Loan Claimholders or such Additional Claimholders are required to pay or are
otherwise paying any such rent, utilities, taxes or other maintenance and operating costs
during the actual occupation of such real property by the Working Capital Agent or its
agents or representatives.

     5.5 Consent to Limited License. The Term Loan Agent, for itself and on behalf of the other
Term Loan Claimholders, and any Additional Agent, for itself and on behalf of the applicable other
Additional Claimholders, (i) acknowledges and consents to the grant to the Working Capital Agent by
the Company (and the other Grantors, as applicable) of a limited, non-exclusive royalty-free
license on the terms set forth in Section 12.2(e) of the Initial Working Capital Credit Agreement
in effect as of the date

41

 

hereof or on substantially equivalent terms in the case of any Working Capital Credit
Agreement other than the Initial Working Capital Credit Agreement (the “Limited License”) and (ii)
agrees that its Liens in the Term Loan Priority Collateral shall be subject to the Limited License.
The Term Loan Agent further agrees that, in connection with any foreclosure sale conducted by the
Term Loan Agent in respect of Term Loan Priority Collateral of the type described in the Limited
License (the “IP Collateral”), (x) any notice required to be given by the Term Loan Agent in
connection with such foreclosure shall contain an acknowledgement that the Term Loan Agent’s Lien
is subject to the Limited License, (y) the Term Loan Agent shall deliver a copy of the Limited
License to any purchaser at such foreclosure and provide written notice to such purchaser that the
Term Loan Agent’s Lien and the purchaser’s rights in the transferred IP Collateral are subject to
the Limited License and (z) the purchaser shall acknowledge in writing that it purchased the IP
Collateral subject to the Limited License. Each Additional Agent further agrees that, in
connection with any foreclosure sale conducted by such Additional Agent in respect of IP
Collateral, (x) any notice required to be given by such Additional Agent in connection with such
foreclosure shall contain an acknowledgement that such Additional Agent’s Lien is subject to the
Limited License, (y) such Additional Agent shall deliver a copy of the Limited License to any
purchaser at such foreclosure and provide written notice to such purchaser that such Additional
Agent’s Lien and the purchaser’s rights in the transferred IP Collateral are subject to the Limited
License and (z) the purchaser shall acknowledge in writing that it purchased the IP Collateral
subject to the Limited License.

SECTION 6

INSOLVENCY OR LIQUIDATION PROCEEDINGS

     6.1 Use of Cash Collateral and Financing Issues. If Company or any other Grantor shall be
subject to any Insolvency or Liquidation Proceeding and the Priority Agent shall desire to permit
the use of cash collateral which constitutes such Priority Agent’s constituents’ Priority
Collateral or to permit Company or any other Grantor to obtain financing secured by such Priority
Collateral (and not by any Collateral which does not constitute such Priority Agent’s Priority
Collateral), from one or more of the Claimholders for whom such Priority Agent acts as Agent, under
Section 363 or Section 364 of the Bankruptcy Code or any similar Bankruptcy Law (such financing, a
“DIP Financing”), then each Non-Priority Agent, on behalf of itself and the Non-Priority
Claimholders, (A) agrees that it will raise no objection to such use of cash collateral or DIP
Financing nor support any other Person objecting to, such sale, use, or lease of cash collateral or
DIP Financing and will not request any form of adequate protection or any other relief in
connection therewith (except as agreed by the Priority Agent or to the extent expressly permitted
by Section 6.4) and, to the extent the Liens securing the Priority Obligations are
subordinated to or pari passu with the Liens securing such DIP Financing, each Non-Priority
Agent will subordinate its Liens in such Priority Collateral to (x) the Liens securing such DIP
Financing (and all Obligations relating thereto), (y) any adequate protection Liens provided to the
Priority Claimholders and (z) any “carve-out” for professional or United States Trustee fees agreed
to by the Priority Agent; (B) agrees that, at the option of the Priority Agent, an order approving
such DIP Financing or cash collateral usage may be entered even if the order provides that any
claim arising under section 507(b) of the Bankruptcy Code as a result of a failure of adequate
protection of the liens of the Non-Priority Claimholders in Collateral which is not its Priority
Collateral may not be paid from the proceeds of claims arising under sections 544, 546, 547, 548 or
550 of the Bankruptcy Code; and (C) agree that notice received two (2) calendar days prior to the
entry of an order approving such usage of cash collateral or approving such DIP Financing shall be
adequate notice; provided that the foregoing shall not prohibit any Non-Priority Agent or
the Non-Priority Claimholders from objecting solely to any provisions in any agreement regarding
the use of cash collateral or any DIP Financing relating to, describing or requiring any provision
or content of a plan of reorganization other than any provisions requiring that the DIP Financing
be paid in full in cash. The Term Loan Agent and Term Loan Claimholders and any

42

 

Additional Agent and any Additional Claimholders shall not, directly or indirectly, offer to
provide, support any other Person in providing, provide or seek to provide DIP Financing secured by
Liens equal or senior to the Liens on the Working Capital Priority Collateral, without the prior
written consent of the Working Capital Agent. The Working Capital Agent and Working Capital
Claimholders shall not, directly or indirectly, offer to provide, support any other Person in
providing, provide or seek to provide DIP Financing secured by Liens equal or senior to the Liens
on the Term Loan Priority Collateral, without the prior written consent of the Term Loan Agent and
any Additional Agent. The Term Loan Agent and the Term Loan Claimholders shall not, directly or
indirectly, offer to provide, support any other Person in providing, provide or seek to provide DIP
Financing secured by Liens equal or senior to the Liens on the Term Loan Priority Collateral,
without the prior written consent of any Additional Agent. Any Additional Agent and such other
applicable Additional Claimholders shall not, directly or indirectly, offer to provide, support any
other Person in providing, provide or seek to provide DIP Financing secured by Liens equal or
senior to the Liens on the Term Loan Priority Collateral, without the prior written consent of the
Term Loan Agent and any other Additional Agent. All references to any Collateral hereunder shall
be construed to include any assets arising after the commencement of the case under the Bankruptcy
Code of the same type or category as such Collateral.

     6.2 Sale Issues. Each Agent, on behalf of itself and the Claimholders for whom it acts as
Agent, agrees that it will raise no objection to or oppose a sale or other disposition of any
Collateral which does not constitute its Priority Collateral free and clear of its Liens or other
claims under Section 363 of the Bankruptcy Code if the Priority Agent has consented to such sale or
disposition of such assets so long as the interests of such Agent and the Claimholders for whom it
acts as Agent in such Collateral attach to the proceeds thereof, subject to the terms of this
Agreement. If requested by any Priority Agent in connection therewith, each Non-Priority Agent
shall affirmatively consent to such a sale or disposition.

     6.3 Relief from the Automatic Stay. Each Agent, on behalf of itself and the Claimholders for
whom it acts as Agent, agrees that none of them shall (i) seek relief from the automatic stay or
any other stay in any Insolvency or Liquidation Proceeding in respect of any Collateral which does
not constitute its Priority Collateral, without the prior written consent of the Priority Agent, or
(ii) oppose any request by any Priority Agent or any Priority Claimholder to seek relief from the
automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of their
respective Priority Collateral.

     6.4 Adequate Protection.

     (a) Each Agent, on behalf of itself and the Claimholders for whom it acts as Agent, may
seek adequate protection of its interest in its respective Priority Collateral and each
other Agent, on behalf of itself and the Claimholders for whom it acts as Agent, agrees that
none of them shall contest (or support any other person contesting) (i) any such request for
adequate protection by any Priority Agent with respect to its Priority Collateral or (ii)
any objection by any Priority Agent or the Priority Claimholders to any motion, relief,
action or proceeding based on any Priority Agent or the Priority Claimholders claiming a
lack of adequate protection of their interests in their respective Priority Collateral.
Each Agent acknowledges and agrees that any superpriority administrative expense claim
granted to such Agent or arising under 11 U.S.C. § 507(b) as adequate protection of its
interest in its respective Priority Collateral shall be pari passu with any superpriority
administrative expense claim granted to any other Agent as adequate protection of their
interest in its respective Priority Collateral.

     (b) Each Non-Priority Agent, on behalf of itself and the Claimholders for whom it acts
as Agent, may seek adequate protection of its junior interest in Collateral, subject to the

43

 

provisions of this Agreement, only if (A) any Priority Agent is granted adequate protection
in the

form of a replacement Lien on post-petition collateral of the same type as the Priority
Collateral, and (B) such additional protection requested by such Agent is in the form of a
replacement Lien on such post-petition collateral of the same type as the Priority
Collateral, which Lien, if granted, will be subordinated to the adequate protection Liens
granted in favor of such Priority Agent on such post-petition collateral and the Liens
securing any DIP financing (and all Obligations relating thereto) secured by such Priority
Collateral on the same basis as the Liens of such Non-Priority Agent on such Priority
Collateral are subordinated to the Liens of such Priority Agent on such Priority Collateral
under this Agreement. In the event that a Non-Priority Agent, on behalf of itself or any of
the Claimholders for whom it acts as Agent, seeks or requests (or is otherwise granted)
adequate protection of its junior interest in Collateral in the form of a replacement Lien
on additional collateral in any form, then such Agent, on behalf of itself and the
Claimholders for whom it acts as Agent, agrees that (i) any other Non-Priority Agent also
holding a junior interest in such Collateral shall also be granted a replacement lien on
such additional collateral as adequate protection of such junior interest in such Collateral
and that such Non-Priority Agent’s replacement Lien shall be pari passu to the replacement
Lien of such other Non-Priority Agent and (ii) each Priority Agent shall also be granted a
replacement Lien on such additional collateral as adequate protection of its senior interest
in Collateral and that such Agent’s replacement Lien shall be subordinated to the
replacement Lien of each such Priority Agent. If any Agent or Claimholder receives as
adequate protection a Lien on post-petition assets of the same type as its pre-petition
Priority Collateral, then such post-petition assets shall also constitute Priority
Collateral of such Person to the extent of any allowed claim secured by such adequate
protection Lien.

     (c) Each Non-Priority Agent on behalf of itself and the Non-Priority Claimholders for
whom it acts as Agent, may seek and receive additional adequate protection of its junior
interest in Collateral, subject to the provisions of this Agreement, in the form of a
superpriority administrative expense claim, including a claim arising under 11 U.S.C. §
507(b), which superpriority administrative expense claim shall be junior in all respects to
any superpriority administrative expense claim granted to the Priority Claimholders with
respect to such Collateral and pari passu in all respects with any superpriority
administrative expense claim granted to any other Non-Priority Claimholders with respect to
such Collateral. In the event that a Non-Priority Agent, on behalf of itself and the
Non-Priority Claimholders for whom it acts as Agent, seeks or receives protection of its
junior interest in Collateral and is granted a superpriority administrative expense claim,
including a claim arising under 11 U.S.C. § 507(b), then such Non-Priority Agent, on behalf
of itself and the Non-Priority Claimholders for whom it acts as Agent, agrees that (i) the
Priority Claimholders shall receive a superpriority administrative expense claim which shall
be senior in all respects to the superpriority administrative expense claim granted to such
Agent with respect to such Collateral and (ii) any other Non-Priority Claimholders shall
receive a superpriority administrative expense claim which shall be pari passu in all
respects with the superpriority administrative expense claim granted to such Agent with
respect to such Collateral.

     6.5 Separate Grants of Security and Separate Classification. Each of the Grantors and each of
the Claimholders acknowledges and agrees with respect to each class of Priority Collateral that (i)
the grants of Liens pursuant to the Working Capital Collateral Documents, on the one hand, and the
Term Loan Collateral Documents and any Additional Collateral Documents, on the other hand,
constitute separate and distinct grants of Liens and (ii) because of, among other things, their
differing rights in the Collateral, the Working Capital Obligations, on the one hand, and the Term
Loan Obligations and any Additional Obligations, on the other hand, are fundamentally different
from one another and must be separately classified in any plan of reorganization proposed or
adopted in an Insolvency or Liquidation

44

 

Proceeding. To further effectuate the intent of the
parties as provided in the immediately preceding
sentence, if it is held that the claims of (x) the Working Capital Claimholders and (y) the
Term Loan Claimholders and/or any Additional Claimholders in respect of any Priority Collateral,
constitute only one secured claim (rather than separate classes of senior and junior secured
claims), then the Priority Claimholders shall be entitled to receive, in addition to amounts
distributed to them from, or in respect of, their Priority Collateral in respect of principal,
pre-petition interest and other claims, all amounts owing in respect of post-petition interest,
fees, costs and other charges, irrespective of whether a claim for such amounts is allowed or
allowable in such Insolvency or Liquidation Proceeding, before any distribution from, or in respect
of, any such Priority Collateral is made in respect of the claims held by the Non-Priority
Claimholders, with the Non-Priority Claimholders hereby acknowledging and agreeing to turn over to
the Priority Claimholders amounts otherwise received or receivable by them to the extent necessary
to effectuate the intent of this sentence, even if such turnover has the effect of reducing the
claim or recovery of the Non-Priority Claimholders.

     6.6 Post-Petition Claims. No Agent, nor any of the Claimholders for which it acts as Agent,
shall oppose or seek to challenge (a) any claim by any Priority Agent or any Priority Claimholder
for allowance in any Insolvency or Liquidation Proceeding of Obligations consisting of
post-petition interest, fees, costs, charges or expenses to the extent of the value of the lien of
such Priority Agent in such Priority Agent’s Priority Collateral, without regard to the existence
of the Lien of any Non-Priority Agent in such Collateral, or (b) any claim by any Non-Priority
Agent or any Non-Priority Claimholder for allowance in any Insolvency or Liquidation Proceeding of
Obligations consisting of post-petition interest, fees, costs, charges or expenses to the extent of
the value of the lien of such Non-Priority Agent in such Collateral.

     6.7 Avoidance Issues. If any Priority Claimholder is required in any Insolvency or
Liquidation Proceeding, or otherwise, to turn over or otherwise pay to the estate of any Grantor
any amount in respect of any Working Capital Obligation, any Term Loan Obligation or any Additional
Obligation, as applicable (a “Recovery”), then such Claimholder shall be entitled to a
reinstatement of its Obligations with respect to all such recovered amounts. If this Agreement
shall have been terminated prior to such Recovery, this Agreement shall be reinstated in full force
and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise
affect the obligations of the parties hereto from such date of reinstatement. Priority Collateral
or proceeds thereof received by any Non-Priority Agent or any other Non-Priority Claimholder after
a Discharge of Obligations of the Priority Claimholders and prior to the reinstatement of such
Obligations shall be delivered to the Priority Agent (in the case of the Term Loan Agent and any
Additional Agent, on a ratable basis or on such other basis as such Agents may agree) upon such
reinstatement in accordance with Section 4.2.

     6.8 Expense Claims. Each Non-Priority Agent, for itself and on behalf of the Claimholders for
whom it acts as Agent, agrees that it will not (i) contest the payment of fees, expenses or other
amounts to any Priority Agent or any Priority Claimholder under Section 506(b) of the Bankruptcy
Code or otherwise to the extent of the value of the lien of such Priority Agent in such Priority
Agent’s Priority Collateral and to the extent provided for in the applicable Credit Agreement or
(ii) assert or enforce any claim under Section 506(c) of the Bankruptcy Code senior to or on parity
with the Lien of any Priority Agent for costs or expenses of preserving or disposing of such
Priority Agent’s Priority Collateral.

     6.9 Effectiveness in Insolvency or Liquidation Proceedings. This Agreement, which the parties
hereto expressly acknowledge is a “subordination agreement” under Section 510(a) of the Bankruptcy
Code, shall be effective before, during and after the commencement of an Insolvency or Liquidation
Proceeding. All references in this Agreement to any Grantor shall include such Person as a
debtor-in-possession and any receiver or trustee for such Person in any Insolvency or Liquidation

45

 

Proceeding.

SECTION 7

RELIANCE; WAIVERS; ETC.

     7.1 Non-Reliance

     (a) The consent by the Working Capital Claimholders to the execution and delivery of
the Term Loan Credit Documents and the grant to the Term Loan Agent on behalf of the Term
Loan Claimholders of a Lien on the Working Capital Priority Collateral, and to the execution
and delivery of any Additional Documents and the grant to any Additional Agent on behalf of
any applicable Additional Claimholders of a Lien on such Collateral, and all loans and other
extensions of credit made or deemed made on and after the date hereof by the Working Capital
Claimholders to the Grantors, shall be deemed to have been given and made in reliance upon
this Agreement. The consent by the Term Loan Claimholders to the execution and delivery of
the Working Capital Credit Documents and the grant to the Working Capital Agent on behalf of
the Working Capital Claimholders of a Lien on the Term Loan Priority Collateral, and to the
execution and delivery of any Additional Documents and the grant to any Additional Agent on
behalf of any applicable Additional Claimholders of a Lien on such Collateral, and all loans
and other extensions of credit made or deemed made on and after the date hereof by the Term
Loan Claimholders to the Grantors, shall be deemed to have been given and made in reliance
upon this Agreement. The consent by any Additional Claimholders to the execution and
delivery of any Additional Documents (other than such Additional Documents executed by or on
behalf of such Additional Claimholders) and the grant to any Additional Agent (other than
any Additional Agent that acts as Agent for such Additional Claimholders) on behalf of any
other applicable Additional Claimholders of a Lien on the Collateral, and all loans and
other extensions of credit made or deemed made on and after the date hereof by such
Additional Claimholders to the Grantors, shall be deemed to have been given and made in
reliance upon this Agreement.

     (b) The Term Loan Agent and the Term Loan Administrative Agent, on behalf of themselves
and the other Term Loan Claimholders, acknowledge that they and the Term Loan Claimholders
have, independently and without reliance on the Working Capital Agent or any other Working
Capital Claimholder, or on any Additional Agent or any other Additional Claimholder, and
based on documents and information deemed by them appropriate, made their own credit
analysis and decision to enter into the Term Loan Credit Agreement, the other Term Loan
Credit Documents, this Agreement and the transactions contemplated hereby and thereby and
they will continue to make their own credit decision in taking or not taking any action
under the Term Loan Credit Agreement, the other Term Loan Credit Documents or this
Agreement. The Working Capital Agent and the Working Capital Administrative Agent, on
behalf of themselves and the other Working Capital Claimholders, acknowledge that they and
the Working Capital Claimholders have, independently and without reliance on the Term Loan
Agent or any other Term Loan Claimholder, or on any Additional Agent or any other Additional
Claimholder, and based on documents and information deemed by them appropriate, made their
own credit analysis and decision to enter into the Working Capital Credit Agreement, the
other Working Capital Credit Documents, this Agreement and the transactions contemplated
hereby and thereby and they will continue to make their own credit decision in taking or not
taking any action under the Working Capital Credit Agreement, the other Working Capital
Credit Documents or this Agreement. Each Additional Agent, on behalf of itself and any
other applicable Additional Claimholders, acknowledges that it and the applicable Additional
Claimholders have,

46

 

independently and without reliance on the Working Capital Agent or any
Working Capital
Claimholder, or the Term Loan Agent or any Term Loan Claimholder, or any other
Additional Agent or any other applicable Additional Claimholders for which such other
Additional Agent acts as Agent, and based on documents and information deemed by them
appropriate, made their own credit analysis and decision to enter into the applicable
Additional Documents, this Agreement and the transactions contemplated hereby and thereby
and they will continue to make their own credit decision in taking or not taking any action
under the Additional Documents or this Agreement.

     7.2 No Warranties or Liability.

     (a) The Working Capital Agent, on behalf of itself and the Working Capital Claimholders,
acknowledges and agrees that (i) the Term Loan Agent and the Term Loan Claimholders have made no
express or implied representation or warranty, including with respect to the execution, validity,
legality, completeness, collectibility or enforceability of any of the Term Loan Credit Documents,
the ownership of any Collateral or the perfection or priority of any Liens thereon and (ii) any
Additional Agent and any Additional Claimholders have made no express or implied representation or
warranty, including with respect to the execution, validity, legality, completeness, collectibility
or enforceability of any of the Additional Documents, the ownership of any Collateral or the
perfection or priority of any Liens thereon.

     (b) The Term Loan Agent, on behalf of itself and the Term Loan Claimholders, acknowledges and
agrees that (i) the Working Capital Agent and the Working Capital Claimholders have made no express
or implied representation or warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Working Capital Credit Documents, the
ownership of any Collateral or the perfection or priority of any Liens thereon and (ii) any
Additional Agent and any Additional Claimholders have made no express or implied representation or
warranty, including with respect to the execution, validity, legality, completeness, collectibility
or enforceability of any of the Additional Documents, the ownership of any Collateral or the
perfection or priority of any Liens thereon.

     (c) Each Additional Agent, on behalf of itself and the applicable Additional Claimholders,
acknowledges and agrees that (i) the Working Capital Agent and the Working Capital Claimholders
have made no express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectibility or enforceability of any of the Working
Capital Credit Documents, the ownership of any Collateral or the perfection or priority of any
Liens thereon, (ii) the Term Loan Agent and the Term Loan Claimholders have made no express or
implied representation or warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Term Loan Credit Documents, the
ownership of any Collateral or the perfection or priority of any Liens thereon and (iii) any other
Additional Agent and any other applicable Additional Claimholders for which such other Additional
Agent acts as Agent have made no express or implied representation or warranty, including with
respect to the execution, validity, legality, completeness, collectibility or enforceability of any
of the Additional Documents, the ownership of any Collateral or the perfection or priority of any
Liens thereon.

     (d) The Term Loan Claimholders will be entitled to manage and supervise their respective loans
and extensions of credit under the Term Loan Credit Documents in accordance with law and as they
may otherwise, in their sole discretion, deem appropriate. The Additional Claimholders will be
entitled to manage and supervise their respective loans and extensions of credit under any
applicable Additional Documents in accordance with law and as they may otherwise, in their sole
discretion, deem appropriate. The Working Capital Claimholders will be entitled to manage and
supervise their respective loans and

47

 

extensions of credit under the Working Capital Documents in
accordance with law and as they may
otherwise, in their sole discretion, deem appropriate.

     (e) Neither any Agent nor any Claimholder for which such Agent acts as Agent shall have any
duty to any other Agent or any Claimholder for which such other Agent acts as Agent to act or
refrain from acting in a manner which allows, or results in, the occurrence or continuance of an
event of default or default under any agreements with Company or any Grantor (including the Working
Capital Credit Documents, the Term Loan Credit Documents and any Additional Documents), regardless
of any knowledge thereof which they may have or be charged with.

     7.3 No Waiver of Lien Priorities.

     (a) No right of the Working Capital Agent and the Working Capital Claimholders, the
Term Loan Agent and the Term Loan Claimholders, any Additional Agent and any Additional
Claimholders, the Control Agent or any of them to enforce any provision of this Agreement or
their respective Credit Documents shall at any time in any way be prejudiced or impaired by
any act or failure to act on the part of the Company or any other Grantor or by any act or
failure to act by such party, or by any noncompliance by any Person with the terms,
provisions and covenants of this Agreement or their respective Credit Documents, regardless
of any knowledge thereof which such party may have or be otherwise charged with.

     (b) Without in any way limiting the generality of the foregoing paragraph (but subject
to the rights of the Company and the other Grantors under the applicable Credit Documents),
the Working Capital Agent and the Working Capital Claimholders, the Term Loan Agent and the
Term Loan Claimholders, and any Additional Agent and any Additional Claimholders and any of
them may, at any time and from time to time in accordance with their respective Credit
Documents or applicable law, without the consent of, or notice to, the other Claimholders
and without incurring any liabilities to the other Claimholders and without impairing or
releasing the Lien priorities and other benefits provided in this Agreement (even if any
right of subrogation or other right or remedy of the other Claimholders is affected,
impaired or extinguished thereby) do any one or more of the following:

     (i) make loans and advances to any Grantor or issue, guaranty or obtain letters
of credit for account of any Grantor or otherwise extend credit to any Grantor, in
any amount and on any terms, whether pursuant to a commitment or as a discretionary
advance and whether or not any default or event of default or failure of condition
is then continuing (subject, in each case, to any limitations expressly set forth in
this Agreement);

     (ii) change the manner, place or terms of payment or change or extend the time
of payment of, or amend, renew, exchange, increase or alter, the terms of any of
their respective Obligations or guaranty thereof or any liability of the Company or
any other Grantor, or any liability incurred directly or indirectly in respect
thereof (including any increase in or extension of their respective Obligations,
without any restriction as to the amount, tenor or terms of any such increase or
extension, subject to any limitations expressly set forth in this Agreement) or,
subject to the provisions of this Agreement, otherwise amend, renew, exchange,
extend, modify or supplement in any manner any Liens held by such Agent or such
Claimholders, their respective Obligations or any of their respective Credit
Documents; provided, however, the foregoing shall not prohibit any other
Agent and any other Claimholders from enforcing, consistent with the other

48

 

terms of
this Agreement, any right arising under their respective Credit Agreement or
other Credit Documents as a result of any Grantor’s violation of the terms
hereof;

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

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

     (v) subject to the restrictions set forth in this Agreement, exercise or delay
in or refrain from exercising any right or remedy against the Company or any
security or any other Grantor or any other Person, elect any remedy and otherwise
deal freely with Company, any other Grantor or any Collateral and any security and
any guarantor or any liability of the Company or any other Grantor to such
Claimholders or any liability incurred directly or indirectly in respect thereof;

     (vi) take or fail to take any Lien securing their respective Obligations or any
other collateral security for such Obligations or take or fail to take any action
which may be necessary or appropriate to ensure that any Lien securing such
Obligations or any other Lien upon any property is duly enforceable or perfected or
entitled to priority as against any other Lien, provided that Liens taken in
violation of Section 2.5 shall be subject to the provisions of Section 2.5; or

     (vii) otherwise release, discharge or permit the lapse of any or all Liens
securing their respective Obligations or any other Liens upon any property at any
time securing any such Obligations.

     (c) Each Agent, on behalf of itself and the Claimholders for which it acts as Agent,
also agrees that no Priority Agent or Priority Claimholders shall have any liability to such
Agent or the Claimholders for which it acts as Agent, and such Agent on behalf of itself and
the Claimholders for which it acts as Agent, hereby waives all claims against any Priority
Agent and any Priority Claimholders, arising out of any and all actions which such Priority
Agent or such Priority Claimholders may take or permit or omit to take with respect to their
Priority Collateral. Each Agent, on behalf of itself and the Claimholders for which it acts
as Agent, agrees that no Priority Agent or Priority Claimholders shall have any duty to them
in respect of the maintenance or preservation of any Priority Agent’s Priority Collateral.

     (d) Each Agent, on behalf of itself and the Claimholders for which it acts as Agent,
agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to
demand, request, plead or otherwise assert or otherwise claim the benefit of, any
marshalling, appraisal, valuation or other similar right that may otherwise be available
under applicable law with respect to Collateral that does not constitute its Priority
Collateral or any other similar rights a junior secured creditor may have under applicable
law.

49

 

     7.4 Obligations Unconditional. All rights, interests, agreements and obligations of the
Working Capital Agent and the Working Capital Claimholders, the Term Loan Agent and the Term
Loan Claimholders, and any Additional Agent and any Additional Claimholders, respectively,
hereunder shall remain in full force and effect irrespective of:

     (a) any lack of validity or enforceability of any Working Capital Credit Documents, any
Term Loan Credit Documents or any Additional Documents or any setting aside or avoidance of
any Lien;

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

     (c) any exchange of any security interest in any Collateral or any other collateral, or
any amendment, waiver or other modification, whether in writing or by course of conduct or
otherwise, of all or any of the Working Capital Obligations, the Term Loan Obligations or
any Additional Obligations or any guarantee thereof;

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

     (e) any other circumstances which otherwise might constitute a defense available to, or
a discharge of, the Company or any other Grantor in respect of the Working Capital
Obligations, the Term Loan Obligations or the Additional Obligations.

     7.5 Certain Notices.

     (a) Promptly upon the Discharge of Working Capital Obligations, the Working Capital
Agent shall deliver written notice confirming same to the remaining Agent Parties;
provided that the failure to give any such notice shall not result in any liability
of the Working Capital Agent or the other Working Capital Claimholders hereunder or in the
modification, alteration, impairment, or waiver of the rights of any party hereunder.
Promptly upon the Discharge of Term Loan Obligations, the Term Loan Agent shall deliver
written notice confirming same to the remaining Agent Parties; provided that the
failure to give any such notice shall not result in any liability of the Term Loan Agent or
the other Term Loan Claimholders hereunder or in the modification, alteration, impairment,
or waiver of the rights of any party hereunder. Promptly upon the Discharge of Additional
Obligations, the applicable Additional Agent shall deliver written notice confirming same to
the Working Capital Agent, the Term Loan Agent and any other Additional Agent;
provided that the failure to give any such notice shall not result in any liability
of such Additional Agent or the applicable Additional Claimholders or in the modification,
alteration, impairment, or waiver of the rights of any party hereunder.

     (b) No later than five (5) days prior to the commencement by any Priority Agent of any
enforcement action or the exercise of any remedy with respect to its Priority Collateral
(including by way of a public or private sale of such Priority Collateral), such Priority
Agent shall notify the other Agent Parties of such intended action; provided that
the failure to give any such notice shall not result in any liability hereunder of such
Priority Agent or the Priority

50

 

Claimholders for which it acts as Agent or in the
modification, alteration, impairment, or waiver
of the rights of any party hereunder.

SECTION 8

MISCELLANEOUS

     8.1 Conflicts. In the event of any conflict between the provisions of this Agreement and the
provisions of the Term Loan Credit Documents, the Working Capital Credit Documents or any
Additional Documents, the provisions of this Agreement shall govern and control. The parties
hereto acknowledge that the terms of this Agreement are not intended to negate any specific rights
granted to the Company or any other Grantor in the Term Loan Credit Documents, the Working Capital
Credit Documents or any Additional Documents.

     8.2 Effectiveness; Continuing Nature of this Agreement; Severability. This Agreement shall
become effective when executed and delivered by the parties hereto. This is a continuing agreement
of lien subordination and the Working Capital Claimholders, the Term Loan Claimholders and any
Additional Claimholders may each continue, at any time and without notice to the other
Claimholders, to extend credit and other financial accommodations and lend monies to or for the
benefit of the Company or any Grantor constituting Working Capital Obligations, Term Loan
Obligations or Additional Obligations, as applicable, in reliance hereof. The terms of this
Agreement shall survive, and shall continue in full force and effect, in any Insolvency or
Liquidation Proceeding. Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. All references to the Company or any other Grantor shall include the
Company or such Grantor as debtor and debtor-in-possession and any receiver or trustee for the
Company or any other Grantor (as the case may be) in any Insolvency or Liquidation Proceeding.
This Agreement shall terminate and be of no further force and effect upon the Discharge of Working
Capital Obligations (in accordance with the provisions hereof), except for Section 5.3 and
the provisions of this Section 8 as they relate to Section 5.3, and subject to
reinstatement in accordance with Section 6.7.

     8.3 Amendments; Waivers. No amendment, modification or waiver of any of the provisions of
this Agreement by the Working Capital Agent, the Term Loan Agent or any Additional Agent, or
(subject to the following sentence) the Company or any other Grantor, shall be deemed to be made
unless the same shall be in writing signed on behalf of each party hereto or its authorized agent
and each waiver, if any, shall be a waiver only with respect to the specific instance involved and
shall in no way impair the rights of the parties making such waiver or the obligations of the other
parties to such party in any other respect or at any other time. Notwithstanding the foregoing,
neither the Company nor any other Grantor shall have any right to consent to or approve any
amendment, modification or waiver of any provision of this Agreement except to the extent its
rights or obligations are directly affected; provided that (x) no amendment, modification
or waiver of any provision of this Agreement, and no consent to any departure therefrom by any
party hereto, that changes, alters, modifies or otherwise affects any right or obligation of, or
otherwise adversely affects in any manner, any Additional Agent that is not then a party hereto, or
any Additional Claimholder not then represented by an Additional Agent that is then a party hereto
(including but not limited to any change, alteration, modification or other effect upon any right
or obligation of or other adverse effect upon any such Additional Agent or Additional Claimholder
that may at any subsequent time become a party hereto or beneficiary hereof) shall be effective
unless it is consented to in writing by the Company (regardless of whether any such Additional
Agent or Additional Claimholder ever becomes a party hereto or beneficiary hereof) and (y) any

51

 

amendment, modification or waiver of any provision of this Agreement that would have the effect,
directly or indirectly, through any reference in any Credit Document to this Agreement or
otherwise, of waiving, amending, supplementing or otherwise modifying any Credit Document, or any
term or provision thereof, or any right or obligation of the Company or any other Grantor
thereunder or in respect thereof, shall not be given such effect except pursuant to a written
instrument executed by the Company and each other affected Grantor.

     8.4 Information Concerning Financial Condition of Company and its Subsidiaries.

     (a) The Term Loan Agent and the Term Loan Claimholders, and the Working Capital Agent
and the Working Capital Claimholders, and each Additional Agent and applicable Additional
Claimholders, respectively, shall each be responsible for keeping themselves informed of (a)
the financial condition of Company and its Subsidiaries and all endorsers or guarantors of
the Term Loan Obligations, the Working Capital Obligations or any Additional Obligations and
(b) all other circumstances bearing upon the risk of nonpayment of the Term Loan
Obligations, the Working Capital Obligations or any Additional Obligations. Each Agent and
the Claimholders for which it acts as Agent shall have no duty to advise any other Agent or
any Claimholder for which any other Agent acts as Agent of information known to it or them
regarding such condition or any such circumstances or otherwise. In the event that any
Agent or any of the Claimholders for which it acts as Agent, in its or their sole
discretion, undertakes at any time or from time to time to provide any such information to
any other Agent or any Claimholder for which such other Agent acts as Agent, it or they
shall be under no obligation (w) to make, and such party shall not make, any express or
implied representation or warranty, including with respect to the accuracy, completeness,
truthfulness or validity of any such information so provided, (x) to provide any additional
information or to provide any such information on any subsequent occasion, (y) to undertake
any investigation or (z) to disclose any information which, pursuant to accepted or
reasonable commercial finance practices, such party wishes to maintain confidential or is
otherwise required to maintain confidential.

     (b) The Grantors agree that any information with respect to the Control Collateral
provided by any Grantor to the Control Agent expressly and solely in its capacity as Control
Agent may be shared by the Control Agent with any Claimholder upon its request therefor,
notwithstanding any request or demand by such Grantor that such information be kept
confidential; provided, that such information shall otherwise be subject to the
respective confidentiality provisions in the Working Capital Credit Agreement, the Term Loan
Credit Agreement and each Additional Credit Facility, as applicable, and to any other
confidentiality agreement or undertaking to which such Claimholder is party or otherwise
subject.

     8.5 Subrogation. Each Agent, for itself and on behalf of the Claimholders for which it acts
as Agent, hereby waives any rights of subrogation it may acquire as a result of any payment
hereunder until the Discharge of Obligations has occurred with respect to each other group of
Claimholders.

     8.6 Notice of Term Loan Representative Change. Until an Agent (other than the existing Term
Loan Representative) receives written notice from the existing Term Loan Representative, in
accordance with Section 8.8 of this Agreement, of a change in the identity of the Term Loan
Representative, such Agent shall be entitled to act as if the existing Term Loan Representative is
in fact the Term Loan Representative. Each Agent (other than the existing Term Loan
Representative) shall be entitled to rely upon any written notice of a change in the identity of
the Term Loan Representative which facially appears to be from the then existing Term Loan
Representative and is delivered in accordance with Section 8.8 and such Agent shall not be required
to inquire into the veracity or genuineness of such

52

 

notice. Each existing Term Loan
Representative from time to time agrees to give prompt written notice
to each Agent of any change in the identity of the Term Loan Representative.

     8.7 Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver.

     (a) This Agreement and the rights and obligations of the parties hereto under this
Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York without giving effect to the rules or principles of conflict of laws
thereof to the extent that the same are not mandatorily applicable by statute and would
cause the application of the laws of any other jurisdiction.

     (b) The parties hereto irrevocably consent and submit to the non-exclusive jurisdiction
of the courts of the State of New York sitting in New York County, New York and the United
States District Court of the Southern District of New York, whichever the Agents may elect,
and to the fullest extent permitted by law, waive any objection based on venue or forum non
conveniens with respect to any action instituted therein arising under this Agreement or any
of the other Credit Document and agree that any dispute with respect to any such matters
shall be heard only in the courts described above (except that the Agents and the
Claimholders reserve the right to bring any action or proceeding against any Grantor or its
or their property in the courts of any other jurisdiction which such Agent or Claimholder
deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce
its rights against any Grantor or its or their property).

     (c) Each Grantor to the fullest extent permitted by law hereby waives personal service
of any and all process upon it and consents that all such service of process may be made by
certified mail (return receipt requested) directed to its address set forth herein and
service so made shall be deemed to be completed five (5) days after the same shall have been
so deposited in the U.S. mails, or, at the Agents’ option, by service upon any Grantor in
any other manner provided under the rules of any such courts.

     (d) EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS
OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO
IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS
RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH PARTY HERETO HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF
THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO
THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     (e) The Agents and Claimholders shall not have any liability to any Grantor (whether in
tort, contract, equity or otherwise) for losses suffered by such Grantor in connection with,
arising out of, or in any way related to the transactions or relationships contemplated by
this Agreement, or any act, omission or event occurring in connection herewith, except to
the extent it is determined by a final and non-appealable judgment or court order binding on
the applicable Agent and Claimholders that the losses were the result of acts or omissions
constituting gross

53

 

negligence or willful misconduct. Each Grantor: (i) certifies that
neither the Agents, the
Claimholders nor any representative, agent or attorney acting for or on behalf of the
Agents or the Claimholders has represented, expressly or otherwise, that the Agents and the
Claimholders would not, in the event of litigation, seek to enforce any of the waivers
provided for in this Agreement or any of the other Credit Documents and (ii) acknowledges
that in entering into this Agreement and the other Credit Documents, the Agents and the
Claimholders are relying upon, among other things, the waivers and certifications set forth
in this Section 8.7 and elsewhere herein and therein.

     8.8 Notices. All notices to the Control Agent, the Term Loan Claimholders, the Working
Capital Claimholders and any applicable Additional Claimholders permitted or required under this
Agreement shall also be sent to the Working Capital Agent, the Term Loan Agent and the applicable
Additional Agent, respectively. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, electronically mailed or sent by courier service or U.S. mail and shall be deemed to have
been given when delivered in person or by courier service, upon receipt of electronic mail or four
Business Days after deposit in the U.S. mail (registered or certified, with postage prepaid and
properly addressed). For the purposes hereof, the addresses of the parties hereto shall be as set
forth below each party’s name on the signature pages hereto, or, as to each party, at such other
address as may be designated by such party in a written notice to all of the other parties.

     8.9 Further Assurances. The Working Capital Agent, on behalf of itself and the Working
Capital Claimholders, the Term Loan Agent, on behalf of itself and the Term Loan Claimholders, any
Additional Agent, on behalf of itself and the applicable Additional Claimholders, and the Company,
agree that each of them shall take such further action and shall execute and deliver such
additional documents and instruments (in recordable form, if requested) as the Working Capital
Agent, the Term Loan Agent or such Additional Agent may reasonably request to effectuate the terms
of and the lien priorities contemplated by this Agreement.

     8.10 Designation of Additional Indebtedness; Joinder of Additional Agents.

     (a) The Company may designate any Additional Indebtedness complying with the requirements of
the definition of “Additional Indebtedness” as Additional Indebtedness for purposes of this
Agreement, upon complying with the following conditions:

	(i)	 	One or more Additional Agents for one or more Additional Claimholders in respect of such
Additional Indebtedness shall have executed the Additional Indebtedness Joinder with respect
to such Additional Indebtedness, and the Company or any such Additional Agent shall have
delivered such executed Additional Indebtedness Joinder to each Agent Party;
	 
	(ii)	 	at least five Business Days prior to delivery of the Additional Indebtedness Joinder, the
Company shall have delivered to each Agent Party complete and correct copies of any Additional
Credit Facility, Additional Guarantees and Additional Collateral Documents that will govern
such Additional Indebtedness upon giving effect to such designation (which may be unexecuted
copies of Additional Documents to be executed and delivered concurrently with the
effectiveness of such designation);
	 
	(iii)	 	The Company shall have executed and delivered to each Agent Party the Additional
Indebtedness Designation with respect to such Additional Indebtedness;

54

 

	(iv)	 	all state and local stamp, recording, filing, intangible and similar taxes or fees (if any)
that are
payable in connection with the inclusion of such Additional Indebtedness under this
Agreement shall have been paid and reasonable evidence thereof shall have been given to each
Agent Party; and
	 
	(v)	 	No Event of Default shall have occurred and be continuing.

     (b) Upon satisfaction of the foregoing conditions, the designated Additional Indebtedness
shall constitute “Additional Indebtedness”, any Additional Credit Facility under which such
Additional Indebtedness is or may be incurred shall constitute an “Additional Credit Facility”, any
holder of such Additional Indebtedness or other applicable Additional Creditor shall constitute an
“Additional Creditor”, and any Additional Agent for any such Additional Creditor shall constitute
an “Additional Agent”, for all purposes under this Agreement. The date on which the foregoing
conditions shall have been satisfied with respect to such Additional Indebtedness is herein called
the “Additional Effective Date”. Prior to the Additional Effective Date with respect to such
Additional Indebtedness, all references herein to Additional Indebtedness shall be deemed not to
take into account such Additional Indebtedness, and the rights and obligations of each Agent Party
shall be determined on the basis that such Additional Indebtedness is not then designated. On and
after the Additional Effective Date with respect to such Additional Indebtedness, all references
herein to Additional Indebtedness shall be deemed to take into account such Additional
Indebtedness, and the rights and obligations of each Agent Party shall be determined on the basis
that such Additional Indebtedness is then designated.

     (c) In connection with any designation of Additional Indebtedness pursuant to this Section
8.10, each Agent Party agrees (x) to execute and deliver any amendments, amendments and
restatements, restatements or waivers of or supplements to or other modifications to, any Term
Collateral Documents, Working Capital Collateral Documents, or Additional Collateral Documents, as
applicable, and any blocked account, control or other agreements relating to any security interest
in Control Collateral, and to make or consent to any filings or take any other actions, as may be
reasonably deemed by the Company to be necessary or reasonably desirable for any Lien on any
Collateral to secure such Additional Indebtedness to become a valid and perfected Lien (with the
priority contemplated by this Agreement), and (y) otherwise to reasonably cooperate to effectuate a
designation of Additional Indebtedness pursuant to this Section 8.10 (including without limitation,
if requested, by executing an acknowledgment of any Additional Indebtedness Joinder or of the
occurrence of any Additional Effective Date), in each event at the sole costs of the Company and
the Grantors.

     8.11 Binding on Successors and Assigns. This Agreement shall be binding upon the Working
Capital Agent, the other Working Capital Claimholders, the Term Loan Agent, the other Term Loan
Claimholders, each Additional Agent and the other Additional Claimholders, the Control Agent and
their respective successors and assigns.

     8.12 Specific Performance. Each Agent may demand specific performance of this Agreement.
Each Agent, on behalf of itself and the Claimholders for which it acts as Agent, hereby irrevocably
waives any defense based on the adequacy of a remedy at law and any other defense which might be
asserted to bar the remedy of specific performance in any action which may be brought by any other
Agent.

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

55

 

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

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

     8.16 No Third Party Beneficiaries. This Agreement and the rights and benefits hereof shall
inure to the benefit of each of the parties hereto and its respective successors and assigns and
shall inure to the benefit of each of the Working Capital Agent, the other Working Capital
Claimholders, the Term Loan Agent, the other Term Loan Claimholders, each Additional Agent, the
other Additional Claimholders, the Control Agent and the Company and the other Grantors. No other
Person shall have or be entitled to assert rights or benefits hereunder.

     8.17 Provisions Solely to Define Relative Rights. The provisions of this Agreement are and
are intended solely for the purpose of defining the relative rights of the Working Capital
Claimholders, the Term Loan Claimholders and any Additional Claimholders, respectively. Nothing in
this Agreement is intended to or shall impair the rights of Company or any other Grantor, or the
obligations of Company or any other Grantor to pay the Working Capital Obligations, the Term Loan
Obligations and any Additional Obligations as and when the same shall become due and payable in
accordance with their terms.

     8.18 Future Grantors. Any Domestic Subsidiary of the Company from time to time party to a
Credit Document shall become a “Grantor” hereunder for all purposes of this Agreement upon
execution and delivery by such Domestic Subsidiary of a joinder agreement substantially in the form
of Exhibit D hereto.

56

 

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

	 	 	 	 	 
	 	WELLS FARGO FOOTHILL, LLC,

as Working Capital Agent,

 	 
	 	By:  	/s/ Kathy Plisko
 	 
	 	 	Name:  	Kathy Plisko 	 
	 	 	Title:  	SVP 	 
	 

Notice Address:

Wells Fargo Foothill, LLC, as Working Capital Agent

1100 Abernathy Road, Suite 1600

Atlanta, Georgia 30328

Attention: Business Finance Manager

Telecopier: 770-804-0551

Telephone: 770-508-1300

with a copy to:

                                        

                                        

                                        

Attention:                               

Telecopier:                               

Telephone:                               

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Term Loan Agent,

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

Notice Address:

Wachovia Bank, National Association, as Term Loan Agent

Wells Fargo Securities

One Wachovia Center

301 South College Street, 6th Floor

Charlotte, NC 28288

Attention: Patrick McKinnon

Facsimile: 704-374-3300

Telephone: 704-715-4433

Email: patrick.mckinnon@wachovia.com

with a copy to:

Wells Fargo Bank, NA

21 Waterway Avenue, Suite 600

The Woodlands, TX 77380

Attention: Janet Ritter

Facsimile: 281-362-6611

Telephone: 281-362-6635

Email: ritterj@wellsfargo.com

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Control Agent,

 	 
	 	By:  	/s/ Janet P. Ritter
 	 
	 	 	Name:  	Janet P. Ritter 	 
	 	 	Title:  	Vice President 	 
	 

Notice Address:

Wells Fargo Bank, NA, , as Control Agent

21 Waterway Avenue, Suite 600

The Woodlands, TX 77380

Attention: Janet Ritter

Facsimile: 281-362-6611

Telephone: 281-362-6635

Email: ritterj@wellsfargo.com

with a copy to:

Wachovia Bank, National Association

Wells Fargo Securities

One Wachovia Center

301 South College Street, 6th Floor

Charlotte, NC 28288

Attention: Patrick McKinnon

Facsimile: 704-374-3300

Telephone: 704-715-4433

Email: patrick.mckinnon@wachovia.com

 

 

	 	 	 	 	 
	 	NCI BUILDING SYSTEMS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Todd R. Moore
 	 
	 	 	Name:  	Todd R. Moore 	 
	 	 	Title:  	EVP and General Counsel 	 
	 
	 	ROBERTSON-CECO II CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Todd R. Moore
 	 
	 	 	Name:  	Todd R. Moore 	 
	 	 	Title:  	EVP and General Counsel 	 
	 
	 	NCI GROUP, INC.,

a Nevada corporation

 	 
	 	By:  	/s/ Todd R. Moore
 	 
	 	 	Name:  	Todd R. Moore 	 
	 	 	Title:  	EVP and General Counsel 	 
	 
	 	STEELBUILDING.COM, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Todd R. Moore
 	 
	 	 	Name:  	Todd R. Moore 	 
	 	 	Title:  	EVP and General Counsel 	 
	 

Notice Address:

NCI Building Systems, Inc.

10943 N. Sam Houston Parkway W.

Houston, Texas 77064

Attention: Chief Financial Officer

Telecopier: 281-897-7658

Telephone: 281-897-7837

with a copy to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Telecopier: 212-909-6836

Telephone: 212-909-6000exv10w4

Exhibit 10.4

      

GUARANTEE AND COLLATERAL AGREEMENT

made by

NCI BUILDING SYSTEMS, INC.

and certain of its Subsidiaries,

in favor of

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and as Collateral Agent

Dated as of October 20, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	SECTION 1 DEFINED TERMS
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	1.2 Other Definitional Provisions
	 	 	9	 
	 
	 	 	 	 
	SECTION 2 GUARANTEE
	 	 	10	 
	2.1 Guarantee
	 	 	10	 
	2.2 Right of Contribution
	 	 	11	 
	2.3 No Subrogation
	 	 	11	 
	2.4 Amendments, etc. with respect to the Obligations
	 	 	11	 
	2.5 Guarantee Absolute and Unconditional
	 	 	12	 
	2.6 Reinstatement
	 	 	13	 
	2.7 Payments
	 	 	13	 
	 
	 	 	 	 
	SECTION 3 GRANT OF SECURITY INTEREST
	 	 	14	 
	3.1 Grant
	 	 	14	 
	3.2 Pledged Collateral
	 	 	15	 
	3.3 Certain Exceptions
	 	 	15	 
	3.4 Intercreditor Relations
	 	 	16	 
	 
	 	 	 	 
	SECTION 4 REPRESENTATIONS AND WARRANTIES
	 	 	17	 
	4.1 Representations and Warranties of Each Guarantor
	 	 	17	 
	4.2 Representations and Warranties of Each Grantor
	 	 	17	 
	4.3 Representations and Warranties of Each Pledgor
	 	 	20	 
	 
	 	 	 	 
	SECTION 5 COVENANTS
	 	 	21	 
	5.1 Covenants of Each Guarantor
	 	 	21	 
	5.2 Covenants of Each Grantor
	 	 	21	 
	5.3 Covenants of Each Pledgor
	 	 	27	 
	 
	 	 	 	 
	SECTION 6 REMEDIAL PROVISIONS
	 	 	29	 
	6.1 Certain Matters Relating to Accounts
	 	 	29	 
	6.2 Communications with Obligors; Grantors Remain Liable
	 	 	30	 
	6.3 Pledged Stock
	 	 	31	 
	6.4 Proceeds to be Turned Over to the Collateral Agent
	 	 	32	 
	6.5 Application of Proceeds
	 	 	33	 
	6.6 Code and Other Remedies
	 	 	33	 
	6.7 Registration Rights
	 	 	34	 
	6.8 Waiver; Deficiency
	 	 	35	 
	 
	 	 	 	 
	SECTION 7 THE COLLATERAL AGENT
	 	 	36	 
	7.1 Collateral Agent’s Appointment as Attorney-in-Fact, etc
	 	 	36	 
	7.2 Duty of Collateral Agent
	 	 	37	 
	7.3 Financing Statements
	 	 	38	 

 

 

	 	 	 	 	 
	 	 	Page
	7.4 Authority of Collateral Agent
	 	 	38	 
	7.5 Right of Inspection
	 	 	38	 
	 
	 	 	 	 
	SECTION 8 NON-LENDER SECURED PARTIES
	 	 	39	 
	8.1 Rights to Collateral
	 	 	39	 
	8.2 Appointment of Agent
	 	 	40	 
	8.3 Waiver of Claims
	 	 	40	 
	 
	 	 	 	 
	SECTION 9 MISCELLANEOUS
	 	 	40	 
	9.1 Amendments in Writing
	 	 	40	 
	9.2 Notices
	 	 	41	 
	9.3 No Waiver by Course of Conduct; Cumulative Remedies
	 	 	41	 
	9.4 Enforcement Expenses; Indemnification
	 	 	41	 
	9.5 Successors and Assigns
	 	 	42	 
	9.6 Set-Off
	 	 	42	 
	9.7 Counterparts
	 	 	42	 
	9.8 Severability
	 	 	42	 
	9.9 Section Headings
	 	 	43	 
	9.10 Integration
	 	 	43	 
	9.11 GOVERNING LAW
	 	 	43	 
	9.12 Submission to Jurisdiction; Waivers
	 	 	43	 
	9.13 Acknowledgments
	 	 	44	 
	9.14 WAIVER OF JURY TRIAL
	 	 	44	 
	9.15 Additional Grantors
	 	 	44	 
	9.16 Releases
	 	 	44	 
	9.17 Judgment
	 	 	45	 

	 	 	 
	SCHEDULES
	 
	 	 
	1

	 	Notice Addresses of Guarantors
	2

	 	Pledged Securities
	3

	 	Perfection Matters
	4

	 	Location of Jurisdiction of Organization
	5

	 	Intellectual Property
	6

	 	Contracts
	7

	 	Commercial Tort Claims
	 
	 	 
	ANNEXES
	 
	 	 
	1

	 	Assumption Agreement
	2

	 	Supplemental Agreement

ii

 

GUARANTEE AND COLLATERAL AGREEMENT

     GUARANTEE AND COLLATERAL
AGREEMENT, dated as of October 20, 2009, made by NCI BUILDING
SYSTEMS, INC. (the “Borrower”) and certain Subsidiaries of the Borrower in favor of
WACHOVIA BANK, NATIONAL ASSOCIATION, as collateral agent (in such capacity, the “Collateral
Agent”) and administrative agent (in such capacity, the “Administrative Agent”) for the
banks and other financial institutions (collectively, the “Lenders”; individually, a
“Lender”) from time to time parties to the Credit Agreement described below.

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Amended and
Restated Credit Agreement, dated as of the date
hereof (as amended, amended and restated, waived, supplemented or otherwise modified from time to
time, together with any agreement extending the maturity of, or restructuring, refunding,
refinancing or increasing the Indebtedness under such agreement or successor agreements, the
“Credit Agreement”), among the Borrower, Wachovia Bank, National Association, as Collateral
Agent and Administrative Agent, and the other parties party thereto, 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, pursuant to that certain Loan and
Security Agreement, dated as of the date hereof (as
amended, amended and restated, waived, supplemented or otherwise modified from time to time,
together with any agreement extending the maturity of, or restructuring, refunding, refinancing or
increasing the Indebtedness under such agreement or successor agreements, the “ABL Credit
Agreement”), among NCI Group, Inc., a Nevada corporation and Robertson-CECO II Corporation, a
Delaware corporation, (collectively, the “ABL Borrowers”), the Borrower, the several banks
and other financial institutions from time to time parties thereto as lenders (as “Lenders” is
further defined in the ABL Credit Agreement, the “ABL Lenders”), Wells Fargo Foothill, LLC,
as administrative agent (in its specific capacity as Administrative Agent, the “ABL
Administrative Agent”) and collateral agent (in its specific capacity as Collateral Agent, the
“ABL Collateral Agent”) for the ABL Lenders thereunder, and the other parties party
thereto, the ABL Lenders have severally agreed to make extensions of credit to the ABL Borrowers
upon the terms and subject to the conditions set forth therein;

     WHEREAS, pursuant to the ABL Credit
Agreement, the Borrower and the ABL Borrowers have granted
a first priority Lien to the ABL Collateral Agent for the benefit of the holders of ABL Obligations
(as defined below) on the ABL Priority Collateral (as defined below) and a second priority Lien for
the benefit of the holders of the ABL Obligations on the Term Loan Priority Collateral (as defined
below);

     WHEREAS, the Borrower is a member of an
affiliated group of companies that includes the
Borrower, the Borrower’s Domestic Subsidiaries that are party hereto and any other Domestic
Subsidiary of the Borrower that becomes a party hereto from time to time after the date hereof (all
of the foregoing collectively, the “Grantors”);

 

 

     WHEREAS, the the Collateral Agent, the
Administrative Agent, the ABL Collateral Agent and the
ABL Administrative Agent and the control agent referred to therein have entered into an
Intercreditor Agreement, acknowledged by the Borrower and the Grantors, dated as of the date hereof
(as amended, amended and restated, waived, supplemented or otherwise modified from time to time
(subject to Section 9.1 hereof), the “Intercreditor Agreement”);

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

     WHEREAS, it is a condition to the obligation of the
Lenders to make their respective
extensions of credit under the Credit Agreement that the Grantors shall execute and deliver this
Agreement to the Collateral Agent for the benefit of the Secured Parties (as defined below).

     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 and the Collateral Agent, for the benefit of the Secured Parties, as follows:

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 that are
defined in the Code (as in effect on the date hereof) are used herein as so defined: Chattel Paper,
Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm
Products, Fixtures, Goods, Letter of Credit Rights, Money, Promissory Notes, Records and
Securities Account.

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

     “ABL Administrative
Agent”: as defined in the recitals hereto.

     “ABL Borrowers”: as
defined in the recitals hereto.

     “ABL Collateral Agent”: as
defined in the recitals hereto.

     “ABL Credit Agreement”:
as defined in the recitals hereto.

     “ABL Lenders”: as defined
in the recitals hereto.

     “ABL Obligations”:
“Working Capital Obligations” as defined in the Intercreditor
Agreement.

     “ABL Priority Collateral”:
“Working Capital Priority Collateral” as defined in the
Intercreditor Agreement.

2 

 

     “Accounts”: all accounts (as
defined in the Code) of each Grantor, including, without
limitation, all Accounts Receivable of such Grantor.

     “Accounts Receivable”: any
right to payment for goods sold or leased or for services
rendered, which is not evidenced by an instrument (as defined in the Code) or Chattel Paper.

     “Additional Agent”: as
defined in the Intercreditor Agreement.

     “Additional Collateral
Documents”: as defined in the Intercreditor Agreement.

     “Additional Obligations”: as
defined in the Intercreditor Agreement.

     “Adjusted Net Worth”: of
any Guarantor at any time, shall mean the greater of (x) $0
and (y) the amount by which the fair saleable value of such Guarantor’s assets on the date of the
respective payment hereunder exceeds its debts and other liabilities (including contingent
liabilities, but without giving effect to any of its obligations under this Agreement or any other
Loan Document, the ABL Credit Agreement or any ABL Facility Document) on such date.

     “Administrative Agent”: as
defined in the preamble hereto.

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

     “Applicable Law”: as
defined in Section 9.8 hereof.

     “Bank Products
Agreement”: any agreement pursuant to which a bank or other financial
institution agrees to provide treasury or cash management services (including, without limitation,
controlled disbursements, automated clearinghouse transactions, return items, netting, overdrafts
and interstate depository network services).

     “Bankruptcy Case”:
(i) The Borrower or any of its Subsidiaries commencing any case,
proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it or for
all or any substantial part of its assets, or the Borrower or any of its Subsidiaries making a
general assignment for the benefit of its creditors; or (ii) there being commenced against the
Borrower or any of its Subsidiaries any case, proceeding or other action of a nature referred to in
clause (i) above which (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of 60 days.

     “Borrower Obligations”: the
collective reference to all obligations and liabilities of
the Borrower in respect of the unpaid principal of and interest on (including, without limitation,
interest accruing after the maturity of the Loans and interest accruing 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

3 

 

interest is allowed in such proceeding) the Loans, and all other obligations and liabilities
of the Borrower to the Secured Parties, 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, the Loans, the other Loan Documents, any Interest Rate
Protection Agreement, Permitted Hedging Arrangement or Bank Products Agreement entered into with
any Person who was at the time of entry into such agreement a Lender or an Affiliate of any Lender,
any Guarantee of the Borrower or any of its Subsidiaries as to which any Secured Party is a
beneficiary, the provision of cash management services by any Lender or an Affiliate thereof to the
Borrower or any Subsidiary thereof, or any other document made, delivered or given in connection
therewith, in each case whether on account of principal, interest, reimbursement obligations,
amounts payable in connection with the provision of such cash management services or a termination
of any transaction entered into pursuant to any such Interest Rate Protection Agreement or
Permitted Hedging Arrangement, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all reasonable fees, expenses and disbursements of counsel to the Administrative Agent
or any other Secured Party that are required to be paid by the Borrower pursuant to the terms of
the Credit Agreement or any other Loan Document).

     “Borrower”: as defined in
the preamble hereto.

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

     “Collateral”: as defined in
Section 3; provided that, for purposes of Section
6.5, Section 8 and Section 9.16(b), “Collateral” shall have the meaning assigned to such term in
the Credit Agreement.

     “Collateral Account Bank”:
Wachovia Bank, National Association, an Affiliate thereof
or another bank which at all times is a Lender as selected by the relevant Grantor and consented to
in writing by the Collateral Agent (such consent not to be unreasonably withheld or delayed).

     “Collateral Agent”: as
defined in the preamble hereto.

     “Collateral Proceeds
Account”: a non-interest bearing cash collateral account
established and maintained by the relevant Grantor at an office of the Collateral Account Bank in
the name, and in the sole dominion and control of, the Collateral Agent for the benefit of the
Secured Parties.

     “Commercial Tort Action”:
any action, other than an action primarily seeking
declaratory or injunctive relief with respect to claims asserted or expected to be asserted by
Persons other than the Grantors, that is commenced by a Grantor in the courts of the United States
of America, any state or territory thereof or any political subdivision of any such state or
territory, in which any Grantor seeks damages arising out of torts committed against it that would
reasonably be expected to result in a damage award to it exceeding $2,000,000.

     “Contracts”: with respect to
any Grantor, all contracts, agreements, instruments and
indentures in any form and portions thereof (except for contracts listed on Schedule 6
hereto), to which such Grantor is a party or under which such Grantor or any property of such
Grantor is

4 

 

subject, as the same may from time to time be amended, supplemented, waived or
otherwise
modified, including, without limitation, (i) all rights of such Grantor to receive moneys due and
to become due to it thereunder or in connection therewith, (ii) all rights of such Grantor to
damages arising thereunder and (iii) all rights of such Grantor to perform and to exercise all
remedies thereunder.

     “Copyright Licenses”: with
respect to any Grantor, all United States written license
agreements of such Grantor providing for the grant by or to such Grantor of any right under any
United States copyright, other than agreements with any Person who is an Affiliate or a Subsidiary
of the Borrower or such Grantor, including, without limitation, any material license agreements
listed on Schedule 5 hereto, subject, in each case, to the terms of such license
agreements, and the right to prepare for sale, sell and advertise for sale, all Inventory now or
hereafter covered by such licenses.

     “Copyrights”: with respect
to any Grantor, all of such Grantor’s right, title and
interest in and to all United States copyrights, whether or not the underlying works of authorship
have been published or registered, all United States copyright registrations and copyright
applications, including, without limitation, any copyright registrations and copyright applications
listed on Schedule 5 hereto, and (i) all renewals thereof, (ii) all income, royalties,
damages and payments now and hereafter due and/or payable with respect thereto, including, without
limitation, payments under all licenses entered into in connection therewith, and damages and
payments for past or future infringements thereof and (iii) the right to sue or otherwise recover
for past, present and future infringements and misappropriations thereof.

     “Credit Agreement”: has the
meaning provided in the recitals hereto.

     “Excluded Assets”: as
defined in Section 3.3.

     “Foreign Intellectual
Property”: all non-U.S. Intellectual Property.

     “General Fund Account”:
the general fund account of the relevant Grantor established
at the same office of the Collateral Account Bank as the Collateral Proceeds Account.

     “General Intangibles”: all
“general intangibles” as that term is defined in Section
9-102(a)(42) of the Uniform Commercial Code in effect in the State of New York on the date hereof.

     “Grantor”: as defined in the
recitals hereto.

     “Guarantor Obligations”:
with respect to any Guarantor, the collective reference to
(i) the Obligations guaranteed by such Guarantor pursuant to Section 2 and (ii) all obligations and
liabilities of such Guarantor that may arise under or in connection with this Agreement or any
other Loan Document to which such Guarantor is a party, any Interest Rate Protection Agreement,
Permitted Hedging Arrangement or Bank Products Agreement entered into with any Person who was at
the time of entry into such agreement a Lender or an Affiliate of any Lender, any Guarantee of the
Borrower or any of its Subsidiaries as to which any Secured Party is a beneficiary, the provision
of cash management services by any Lender or an Affiliate thereof to the Borrower or any Subsidiary
thereof, or any other document made, delivered or given in

5 

 

connection therewith of such Guarantor, 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 any other
Secured Party 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.

     “Instruments”: has the
meaning specified in Article 9 of the Code, but excluding the
Pledged Securities.

     “Intellectual Property”: with
respect to any Grantor, the collective reference to
such Grantor’s Copyrights, Copyright Licenses, Patents, Patent Licenses, Trade Secrets, Trade
Secret Licenses, Trademarks and Trademark Licenses.

     “Intercreditor Agreement”:
as defined in the recitals hereto.

     “Intercompany Note”: with
respect to any Grantor, any promissory note in a principal
amount in excess of $2,000,000 evidencing loans made by such Grantor to the Borrower or any of its
Subsidiaries.

     “Inventory”: with respect to
any Grantor, all inventory (as defined in the Code) of
such Grantor.

     “Investment Property”: the
collective reference to (i) all “investment property” as
such term is defined in Section 9-102(a)(49) of the Uniform Commercial Code in effect in the State
of New York on the date hereof (other than any Capital Stock of any Foreign Subsidiary and other
than any Capital Stock excluded from the definition of “Pledged Stock”) and (ii) whether or not
constituting “investment property” as so defined, all Pledged Securities.

     “Issuers”: the collective
reference to the Persons identified on Schedule 2
as the issuers of Pledged Stock, together with any successors to such companies.

     “Lender”: as defined in the
preamble hereto.

     “Non-Lender Secured
Parties”: the collective reference to any person who, at the time
of entering into any Interest Rate Protection Agreement or Permitted Hedging Arrangement or Banks
Products Agreement secured hereby, was a Lender or an Affiliate of any Lender and their respective
successors and assigns.

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

     “Patent Licenses”: with
respect to any Grantor, all United States written license
agreements of such Grantor providing for the grant by or to such Grantor of any right under any
United States patent, patent application, or patentable invention other than agreements with any
Person who is an Affiliate or a Subsidiary of the Borrower or such Grantor, including, without
limitation, the material license agreements listed on Schedule 5 hereto, subject, in each
case, to

6 

 

the terms of such license agreements, and the right to prepare for sale, sell and advertise
for sale, all Inventory now or hereafter covered by such licenses.

     “Patents”: with respect to
any Grantor, all of such Grantor’s right, title and
interest in and to all United States patents, patent applications and patentable inventions and all
reissues and extensions thereof, including, without limitation, all patents and patent applications
identified in Schedule 5 hereto, and including, without limitation, (i) all inventions and
improvements described and claimed therein, (ii) the right to sue or otherwise recover for any and
all past, present and future infringements and misappropriations thereof, (iii) all income,
royalties, damages and other payments now and hereafter due and/or payable with respect thereto
(including, without limitation, payments under all licenses entered into in connection therewith,
and damages and payments for past, present or future infringements thereof), and (iv) all other
rights corresponding thereto in the United States and all reissues, divisions, continuations,
continuations-in-part, substitutes, renewals, and extensions thereof, all improvements thereon, and
all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto.

     “Pledged Collateral”: as to
any Pledgor, the Pledged Securities now owned or at any
time hereafter acquired by such Pledgor, and any Proceeds thereof.

     “Pledged Notes”: with
respect to any Pledgor, all Intercompany Notes at any time
issued to, or held or owned by, such Pledgor.

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

     “Pledged Stock”: with
respect to any Pledgor, the shares of Capital Stock listed on
Schedule 2 as held by such Pledgor, together with any other shares, stock certificates,
options or rights of any nature whatsoever in respect of the Capital Stock of any Issuer that may
be issued or granted to, or held by, such Pledgor while this Agreement is in effect
(provided that in no event shall there be pledged, nor shall any Pledgor be required to
pledge, directly or indirectly, (i) more than 65% of any series of the outstanding Capital Stock of
any Foreign Subsidiary, (ii) any of the Capital Stock of a Subsidiary of a Foreign Subsidiary and
(iii) de minimis shares of a Foreign Subsidiary held by any Pledgor as a nominee or in a similar
capacity).

     “Pledgor”: the Borrower
(with respect to Pledged Stock of the entities listed on
Schedule 2 hereto under the name of the Borrower and all other Pledged Collateral of the
Borrower) and each other Grantor (with respect to Pledged Securities held by such Grantor and all
other Pledged Collateral of such Grantor).

     “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,
Proceeds of Pledged Securities shall include, without limitation, all dividends or other income
from the Pledged Securities, collections thereon or distributions or payments with respect thereto.

     “Restrictive Agreements”: as
defined in Section 3.3(a).

7 

 

     “Secured Bank Product
Agreement”: any Interest Rate Protection Agreement, Permitted
Hedging Arrangement or Bank Products Agreement entered into with any Person who was at the time of
entry into such agreement a Lender or an Affiliate of any Lender, or any agreement providing for
the provision of cash management services by any Lender or an Affiliate thereof to the Borrower or
any Subsidiary thereof, or any other document made, delivered or given in connection therewith of
such Guarantor.

     “Secured Parties”: the
collective reference to (i) the Administrative Agent, the
Collateral Agent and each Other Representative, (ii) the Lenders, (iii) with respect to any
Interest Rate Protection Agreement, Permitted Hedging Arrangement or Bank Products Agreement with
the Borrower or any of its Subsidiaries, any counterparty thereto that, at the time such agreement
or arrangement was entered into, was a Lender or an Affiliate of any Lender and (iv) their
respective successors and assigns and their permitted transferees and endorsees.

     “Security Collateral”: with
respect to any Grantor, means, collectively, the
Collateral (if any) and the Pledged Collateral (if any) of such Grantor.

     “Specified Asset”: as
defined in Section 4.2.2 hereof.

     “Term Loan Priority
Collateral”: as defined in the Intercreditor Agreement.

     “Trade Secret Licenses”:
with respect to any Grantor, all United States written
license agreements of such Grantor providing for the grant by or to such Grantor of any right under
any trade secrets, including, without limitation, know how, processes, formulae, compositions,
designs, and confidential business and technical information, and all rights of any kind whatsoever
accruing thereunder or pertaining thereto, other than agreements with any Person who is an
Affiliate or a Subsidiary of the Borrower or such Grantor, subject, in each case, to the terms of
such license agreements, and the right to prepare for sale, sell and advertise for sale, all
Inventory now or hereafter covered by such licenses.

     “Trade Secrets”: with
respect to any Grantor, all of such Grantor’s right, title and
interest in and to all United States trade secrets, including, without limitation, know-how,
processes, formulae, compositions, designs, and confidential business and technical information,
and all rights of any kind whatsoever accruing thereunder or pertaining thereto, including, without
limitation, (i) all income, royalties, damages and payments now and hereafter due and/or payable
with respect thereto, including, without limitation, payments under all licenses, non-disclosure
agreements and memoranda of understanding entered into in connection therewith, and damages and
payments for past or future misappropriations thereof, and (ii) the right to sue or otherwise
recover for past, present or future misappropriations thereof.

     “Trademark Licenses”: with
respect to any Grantor, all United States written license
agreements of such Grantor providing for the grant by or to such Grantor of any right under any
United States trademarks, service marks, trade names, trade dress or other indicia of trade origin
or business identifiers, other than agreements with any Person who is an Affiliate or a Subsidiary
of the Borrower or such Grantor, including, without limitation, the material license agreements
listed on Schedule 5 hereto, subject, in each case, to the terms of such license
agreements, and

8 

 

the right to prepare for sale, sell and advertise for sale, all Inventory now or hereafter
covered by such licenses.

     “Trademarks”: with respect
to any Grantor, all of such Grantor’s right, title and
interest in and to all United States trademarks, service marks, trade names, trade dress or other
indicia of trade origin or business identifiers, trademark and service mark registrations, and
applications for trademark or service mark registrations (except for “intent to use” applications
for trademark or service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15
U.S.C. § 1051, unless and until an Amendment to Allege Use or a Statement of Use under Sections
1(c) and 1(d) of said Act has been filed, it being understood and agreed that the carve out in this
parenthetical shall be applicable only if and for so long as a grant of a security interest in, or
the exercise of rights or remedies with respect to, such intent to use application would invalidate
or otherwise jeopardize Grantor’s rights therein), and any renewals thereof, including, without
limitation, each registration and application identified in Schedule 5 hereto, and
including, without limitation, (i) the right to sue or otherwise recover for any and all past,
present and future infringements or dilutions thereof, (ii) all income, royalties, damages and
other payments now and hereafter due and/or payable with respect thereto (including, without
limitation, payments under all licenses entered into in connection therewith, and damages and
payments for past or future infringements thereof), and (iii) all other rights corresponding
thereto in the United States and all other rights of any kind whatsoever of such Grantor accruing
thereunder or pertaining thereto in the United States, together in each case with the goodwill of
the business connected with the use of, and symbolized by, each such trademark, service mark, trade
name, trade dress or other indicia of trade origin or business identifiers.

     “Vehicles”: all cars, trucks,
trailers, construction and earth moving equipment and
other vehicles covered by a certificate of title law of any state and all tires and other
appurtenances to any of the foregoing.

          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, Schedule and Annex 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, Pledged Collateral or
Security Collateral, or any part thereof, when used in relation to a Grantor shall refer to such
Grantor’s Collateral, Pledged Collateral or Security Collateral or the relevant part thereof.

          (d) All
references in this Agreement to any of the property described in the definition of the
term “Collateral” or “Pledged Collateral”, or to any Proceeds thereof, shall be deemed to be
references thereto only to the extent the same constitute Collateral or Pledged Collateral,
respectively.

9 

 

SECTION 2 GUARANTEE

          2.1
Guarantee. (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees, as primary obligor and not merely as surety, to the Administrative Agent, for the
benefit of the applicable Secured Parties, the prompt and complete payment and performance by the
Borrower when due and payable (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations of the Borrower owed to the applicable Secured Parties.

          (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 that can be guaranteed by such Guarantor under applicable law, including applicable
federal and state laws relating to the insolvency of debtors; provided that, to the maximum
extent permitted under applicable law, it is the intent of the parties hereto that (x) the amount
of liability of any of the Guarantors or any guarantee in respect of Indebtedness represented by
the Senior Notes or Subordinated Indebtedness shall be reduced before the amount of the liability
of the respective Guarantor is reduced hereunder and (y) the rights of contribution of each
Guarantor provided in following Section 2.2 be included as an asset of the respective Guarantor in
determining the maximum liability of such Guarantor hereunder.

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

          (d) The
guarantee contained in this Section 2 shall remain in full force and effect until the
earlier to occur of (i) the first date on which all the Loans, all other Borrower Obligations then
due and owing, and the obligations of each Guarantor under the guarantee contained in this Section
2 then due and owing shall have been satisfied by payment in full in cash, or (ii) as to any
Guarantor, the sale or other disposition of all of the Capital Stock of such Guarantor (to a Person
other than the Borrower or a Subsidiary of the Borrower) as permitted under the Credit Agreement.

          (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 other 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 any of the Borrower Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding
any such payment (other than any payment made by such Guarantor in respect of the Borrower
Obligations or any payment received or collected from such Guarantor in respect of any of the
Borrower Obligations), remain liable for the Borrower Obligations of the Borrower guaranteed by it
hereunder up to the maximum liability of such Guarantor hereunder until the earlier to occur of (i)
the first date on which all the Loans, and all
other Borrower Obligations then due and owing, are paid in full in cash or (ii) the sale or
other

10 

 

disposition of all of the Capital Stock of such Guarantor (to a Person other than the
Borrower or a Subsidiary of the Borrower) as permitted under the Credit Agreement.

          2.2 Right
of Contribution. Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than
its proportionate share (based, to the maximum extent permitted by law, on the respective Adjusted
Net Worths of the Guarantors on the date the respective payment is made) of any payment made
hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any
other Guarantor hereunder that has not paid its proportionate share of such payment. Each
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
Guarantor to the Administrative Agent and the other Secured Parties, and each Guarantor shall
remain liable to the Administrative Agent and the other Secured Parties for the full amount
guaranteed by 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 Collateral Agent or any other Secured Party, no Guarantor shall be
entitled to be subrogated to any of the rights of the Collateral Agent or any other Secured Party
against the Borrower or any other Guarantor or any collateral security or guarantee or right of
offset held by the Collateral Agent or any other 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 Collateral Agent and the other Secured Parties by the Borrower on
account of the Borrower Obligations are paid in full in cash. 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 in cash, such amount shall be held by such Guarantor in trust for
the Collateral Agent and the other Secured Parties, segregated from other funds of such Guarantor,
and shall, forthwith upon receipt by such Guarantor, be turned over to the Collateral Agent in the
exact form received by such Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if
required), to be held as collateral security for all of the Borrower Obligations (whether matured
or unmatured) guaranteed by such Guarantor and/or then or at any time thereafter may be applied
against any Borrower Obligations, whether matured or unmatured, in such order as the Collateral
Agent may determine.

          2.4
Amendments, etc. with respect to the Obligations. To the maximum extent permitted by law, each Guarantor shall remain obligated
hereunder
notwithstanding that, without any reservation of rights against any Guarantor and without notice to
or further assent by any Guarantor, any demand for payment of any of the Borrower Obligations made
by the Collateral Agent, the Administrative Agent or any other Secured Party may be rescinded by
the Collateral Agent, the Administrative Agent or such other Secured Party and any of the Borrower
Obligations continued, and the Borrower
Obligations, or the liability of any other Person upon or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, waived, modified, accelerated,
compromised, subordinated, waived, surrendered or released by the Collateral Agent, the
Administrative Agent or any other Secured Party, and the Credit Agreement and the other Loan
Documents and any other documents executed and delivered in connection therewith may be amended,
waived, modified, supplemented or terminated, in whole

11 

 

or in part, as the Collateral Agent or the
Administrative Agent (or the Required Lenders under the Credit Agreement or the applicable
Lenders(s), 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 Collateral Agent, the Administrative Agent or
any other Secured Party for the payment of any of the Borrower Obligations may be sold, exchanged,
waived, surrendered or released. None of the Collateral Agent, the Administrative Agent nor any
other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for any of the Borrower Obligations or for the guarantee contained in
this Section 2 or any property subject thereto, except to the extent required by applicable law.

          2.5
Guarantee Absolute and Unconditional. Each Guarantor waives, to the maximum extent permitted by applicable law, any and all
notice of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice
of or proof of reliance by the Collateral Agent, the Administrative Agent or any other Secured
Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in
this Section 2; each of the Borrower Obligations, and any obligation contained therein, 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 Collateral Agent, the Administrative
Agent and the other 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, to the maximum extent permitted by applicable law, diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of
the other Guarantors with respect to any of the Borrower Obligations. Each Guarantor understands
and agrees, to the extent permitted by law, that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment and not of collection.
Each Guarantor hereby waives, to the maximum extent permitted by applicable law, any and all
defenses (other than any suit for breach of a contractual provision of any of the Loan Documents)
that it may have arising out of or in connection with any and all of the following: (a) the
validity or enforceability of the Credit Agreement or any other Loan Document, any of the Borrower
Obligations or any other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Collateral Agent, the Administrative Agent or
any other Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment
or performance) that may at any time be available to or be asserted by the Borrower against the
Collateral Agent, the Administrative Agent or any other Secured Party, (c) any change in the time,
place, manner or place of payment, amendment, or waiver or increase in any of the Obligations, (d)
any exchange, taking, or release of Security Collateral, (e) any change in the structure or
existence of the Borrower or any other Guarantor, (f) any application of Security Collateral to any
of the
Obligations, (g) any law, regulation or order of any jurisdiction, or any other event,
affecting any term of any Obligation or the rights of the Collateral Agent, the Administrative
Agent or any other Secured Party with respect thereto, including, without limitation: (i) the
application of any such law, regulation, decree or order, including any prior approval, which would
prevent the exchange of any currency (other than Dollars) for Dollars or the remittance of funds
outside of such jurisdiction or the unavailability of Dollars in any legal exchange market in such
jurisdiction in accordance with normal commercial practice, (ii) a declaration of banking
moratorium or any suspension of payments by banks in such jurisdiction or the imposition by such
jurisdiction or any Governmental Authority thereof of

12 

 

any moratorium on, the required rescheduling
or restructuring of, or required approval of payments on, any indebtedness in such jurisdiction,
(iii) any expropriation, confiscation, nationalization or requisition by such country or any
Governmental Authority that directly or indirectly deprives the Borrower of any assets or their
use, or of the ability to operate its business or a material part thereof, or (iv) any war (whether
or not declared), insurrection, revolution, hostile act, civil strife or similar events occurring
in such jurisdiction which has the same effect as the events described in clause (i), (ii) or (iii)
above (in each of the cases contemplated in clauses (i) through (iv) above, to the extent occurring
or existing on or at any time after the date of this Agreement), or (h) any other circumstance
whatsoever (other than payment in full in cash of the Borrower Obligations guaranteed by it
hereunder) (with or without notice to or knowledge of the Borrower or such Guarantor) that
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 Collateral Agent, the Administrative Agent
and any other 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
guaranteed by such Guarantor hereunder or any right of offset with respect thereto, and any failure
by the Collateral Agent, the Administrative Agent or any other 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 Collateral Agent, the
Administrative Agent or any other Secured Party against any Guarantor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings.

          2.6
Reinstatement. The guarantee of any Guarantor 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 guaranteed by such Guarantor hereunder is rescinded or must otherwise be
restored or returned by the Collateral Agent, the Administrative Agent or any other 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, in Dollars (or in the case of any amount required to be paid
in any other currency pursuant to the requirements of the Credit Agreement or other agreement
relating to the respective Obligations, such other currency), at the Administrative Agent’s office
specified in Section 10.2 of the Credit Agreement or such other address as may be designated in
writing by the Administrative Agent to such Guarantor from time to time in accordance with Section
10.2 of the Credit Agreement.

13 

 

SECTION 3 GRANT OF SECURITY INTEREST

          3.1
Grant. Each Grantor hereby grants, subject to existing licenses to use the
Copyrights, Patents, Trademarks and Trade Secrets granted by such Grantor in the ordinary course of
business, to the Collateral Agent, for the benefit of the Secured Parties, a security interest in
all of the Collateral of such Grantor, as collateral security for the prompt and complete payment
and performance when due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations of such Grantor, except as provided in Section 3.3. The term “Collateral”, as to any
Grantor, means the following property (wherever located) 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, except as provided in Section 3.3:

     (a) all Accounts;

     (b) all Chattel Paper;

     (c) all Commercial Tort Claims
constituting Commercial Tort Actions described in
Schedule 7 (together with any Commercial Tort Actions subject to a further writing provided
in accordance with Section 5.2.12);

     (d) all Contracts;

     (e) all Deposit Accounts;

     (f) all Documents;

     (g) all Equipment (other than
Vehicles);

     (h) all Fixtures;

     (i) all General Intangibles;

     (j) all Instruments;

     (k) all Intellectual Property;

     (l) all Inventory;

     (m) all Investment Property;

     (n) all Letter of Credit Rights;

     (o) all Money (including all cash and
Cash Equivalents);

     (p) all books and Records
pertaining to any of the foregoing;

     (q) the Collateral Proceeds
Account; and

14 

 

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

provided that, in the case of each Grantor, Collateral shall not include any
Pledged
Collateral, or any property or assets specifically excluded from Pledged Collateral (including any
Capital Stock of any Foreign Subsidiary in excess of 65% of any series of such stock).

          3.2
Pledged Collateral. Each Grantor that is a Pledgor hereby grants to the Collateral Agent, for the benefit of
the Secured Parties, a security interest in all of the Pledged Collateral of such Pledgor now owned
or at any time hereafter acquired by such Pledgor, and any Proceeds thereof, as collateral security
for the prompt and complete performance when due (whether at the stated maturity, by acceleration
or otherwise) of the Obligations of such Pledgor, except as provided in Section 3.3.

          3.3
Certain Exceptions. No security interest is or will be granted pursuant hereto in any right, title or interest
of any Grantor under or in (collectively, the “Excluded Assets”):

          (a) any
Instruments, Contracts, Chattel Paper, General Intangibles, Copyright Licenses, Patent
Licenses, Trademark Licenses, Trade Secret Licenses or other contracts or agreements with or issued
by Persons other than the Borrower, a Subsidiary of the Borrower or an Affiliate thereof,
(collectively, “Restrictive Agreements”) that would otherwise be included in the Security
Collateral (and such Restrictive Agreements shall not be deemed to constitute a part of the
Security Collateral) for so long as, and to the extent that, the granting of such a security
interest pursuant hereto would result in a breach, default or termination of such Restrictive
Agreements (in each case, except to the extent that, pursuant to the Code or other applicable law,
the granting of security interests therein can be made without resulting in a breach, default or
termination of such Restrictive Agreements);

          (b) any
Equipment or other property that would otherwise be included in the Security
Collateral (and such Equipment or other property shall not be deemed to constitute a part of the
Security Collateral) if such Equipment or other property is subject to a Lien described
in Section 7.3(n) or 7.3(y) of the Credit Agreement (but in each case only for so long as (i)
such Liens are in place and (ii) the granting of a Lien in such Equipment or other property would
breach or conflict with the agreement giving rise to such Liens);

          (c) any
property that would otherwise be included in the Security Collateral (and such
property shall not be deemed to constitute a part of the Security Collateral) if such property (x)
has been sold or otherwise transferred in connection with (i) a Sale and Leaseback Transaction the
proceeds of which are applied as, if and to the extent required in accordance with Section 3.4(c)
of the Credit Agreement or (ii) an Exempt Sale and Leaseback Transaction or (y) constitutes
Proceeds or products of any property that has been sold or otherwise transferred pursuant to such
Sale and Leaseback Transaction or Exempt Sale and Leaseback Transaction (other than any payments
received by such Grantor in payment for the sale or transfer of such property in such Sale and
Leaseback Transaction or Exempt Sale and Leaseback Transaction) ;

15 

 

          (d) Capital Stock which is specifically excluded from the
definition of Pledged Stock by
virtue of the proviso contained in the parenthetical to such definition;

          (e) Foreign Intellectual Property;

          (f) any
Money, cash, Cash Equivalents, checks, other negotiable instrument, funds and other
evidence of payment held in any Deposit Account of the Borrower or any of its Subsidiaries in the
nature of security deposit with respect to obligations for the benefit of the Borrower or any of
its Subsidiaries, which must be held for or returned to the applicable counterparty under
applicable law or pursuant to Contractual Obligations;

          (g) any
deposit account or other account containing collateral securing the obligations of any
Grantor with respect to the Existing Letters of Credit (as defined in the ABL Credit Agreement as
in effect on the date hereof), and any cash, Cash Equivalents or investment property in such
accounts;

          (h) without limiting clause 3.3(a) above, those assets over
which the granting of security
interests in such assets would be prohibited by contract permitted under the Credit Agreement and
set forth on Schedule 6, applicable law or regulation or the organizational documents of any
non-wholly owned Subsidiary (including permitted liens, leases and licenses), or to the extent that
such security interests would result in adverse tax or accounting consequences as reasonably
determined by the Borrower; or

          (i) those
assets as to which the applicable Grantor and the Collateral Agent shall mutually
and reasonably determine that the costs of obtaining such a security interest are excessive in
relation to the value of the security interest to be afforded thereby.

          3.4
Intercreditor Relations. Notwithstanding anything herein to the contrary, it is the understanding of the parties that
the Liens granted pursuant to Section 3.1 herein shall (x) with respect to all Security Collateral
other than Term Loan Priority Collateral, prior to the Discharge of Working Capital Obligations (as
defined in the Intercreditor Agreement), be subject and subordinate to the Liens granted to the ABL
Collateral Agent for the benefit of the holders of the ABL Obligations to
secure the ABL Obligations pursuant to the ABL Credit Agreement, as and to the extent provided
in the Intercreditor Agreement, and (y) with respect to all Security Collateral, prior to the
applicable Discharge of Additional Obligations (as defined in the Intercreditor Agreement), be pari
passu and equal in priority to the Liens granted to any Additional Agent for the benefit of the
holders of the applicable Additional Obligations to secure such Additional Obligations pursuant to
the applicable Additional Collateral Documents, as and to the extent provided in the Intercreditor
Agreement. The Collateral Agent acknowledges and agrees that the relative priority of such Liens
granted to the Collateral Agent, the ABL Collateral Agent and any

16 

 

Additional Agent may be
determined solely pursuant to the Intercreditor Agreement, and not by priority as a matter of law
or otherwise. Notwithstanding anything herein to the contrary, the Liens and security interest
granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy
by the Collateral Agent hereunder are subject to the provisions of the Intercreditor Agreement. In
the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the
terms of the Intercreditor Agreement shall govern and control as among the Collateral Agent, the
ABL Collateral Agent and any Additional Agent. Notwithstanding any other provision hereof, (x) for
so long as any ABL Obligations remain outstanding, any obligation hereunder to physically deliver
to the Collateral Agent any Security Collateral shall be satisfied by causing such Security
Collateral to be physically delivered to the ABL Collateral Agent to be held in accordance with the
Intercreditor Agreement and (y) for so long as any Additional Obligations remain outstanding, any
obligation hereunder to physically deliver to the Collateral Agent any Security Collateral shall be
satisfied by causing such Security Collateral to be physically delivered to any Additional Agent to
be held in accordance with the Intercreditor Agreement.

SECTION 4 REPRESENTATIONS AND WARRANTIES

          4.1
Representations and Warranties of Each Guarantor. To induce the Collateral 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
Guarantor hereby represents and warrants to the Collateral Agent and each other Secured Party that
the representations and warranties set forth in Article IV 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
representations and warranties is hereby incorporated herein by reference, are true and correct in
all material respects, and the Collateral Agent and each other Secured Party shall be entitled to
rely on each of such representations and warranties as if fully set forth herein; provided
that each reference in each such representation and warranty to the Borrower’s knowledge shall, for
the purposes of this Section 4.1, be deemed to be a reference to such Guarantor’s knowledge.

          4.2
Representations and Warranties of Each Grantor. To induce the Collateral 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 Collateral Agent and each other Secured Party that,
in each case after giving effect to the Transactions:

          4.2.1
Title; No Other Liens. Except for the security interests granted to the Collateral Agent for the benefit of the
Secured Parties pursuant to this Agreement and the other Liens permitted to exist on such Grantor’s
Collateral by the Credit Agreement (including, without limitation, Section 7.3 thereof), such
Grantor owns each item of such Grantor’s Collateral free and clear of any and all Liens. No
currently effective financing statement or other similar public notice with respect to all or any
part of such Grantor’s Collateral is on file or of record in any public office in the United States
of America, any state, territory or dependency thereof or the District of Columbia, except such as
have been filed in favor of the Collateral Agent for the benefit of the Secured Parties pursuant to
this Agreement or as are permitted by the Credit Agreement (including, without limitation, Section
7.3 thereof) or any other Loan Document or for which termination statements will be delivered on
the Closing Date.

          4.2.2
Perfected First Priority Liens. (a) This Agreement is effective to create, as collateral security for the Obligations of
such Grantor, valid and enforceable Liens on such Grantor’s Security Collateral in favor of the
Collateral Agent for the benefit of the Secured Parties, except as enforceability may be affected
by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditor’s

17 

 

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.

          (b) Except with regard to (i) Liens (if any) on
Specified Assets and (ii) any rights in favor
of the United States government as required by law (if any), upon the completion of the Filings and
the delivery to and continuing possession by the Collateral Agent of all Instruments, Chattel Paper
and Documents a security interest in which is perfected by possession, and the obtaining and
maintenance of “control” (as described in the Code) by the Collateral Agent of all Deposit
Accounts, the Collateral Proceeds Account, Electronic Chattel Paper and Letter of Credit Rights a
security interest in which is perfected by “control” and in the case of Commercial Tort Actions
(other than such Commercial Tort Actions listed on Schedule 7 on the date of this Agreement) the
taking of the actions required by Section 5.2.12 herein, the Liens created pursuant to this
Agreement will constitute valid Liens on and (to the extent provided herein) perfected security
interests in such Grantor’s Security Collateral in favor of the Collateral Agent for the benefit of
the Secured Parties, and will be prior to all other Liens of all other Persons other than Permitted
Liens, and enforceable as such as against all other Persons other than Ordinary Course Transferees,
except to the extent that the recording of an assignment or other transfer of title to the
Collateral Agent or the recording of other applicable documents in the United States Patent and
Trademark Office or United States Copyright Office may be necessary for perfection or
enforceability, and except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by general equitable principles (whether enforcement is sought by proceedings in equity or at
law) or by an implied covenant of good faith and fair dealing. As used in this Section 4.2.2(b),
the following terms shall have the following meanings:

     “Filings”:
the filing or recording of (i) the Financing Statements as set
forth in Schedule 3, (ii) this Agreement or a notice thereof with respect to
Intellectual Property as set forth in Schedule 3, and (iii) any filings after the
Closing Date in any other jurisdiction as may be necessary under any Requirement of Law.

     “Financing
Statements”: the financing statements delivered to the Collateral
Agent by such Grantor on the Closing Date for filing in the jurisdictions listed in
Schedule 4.

     “Ordinary Course
Transferees”: (i) with respect to goods only, buyers in the
ordinary course of business and lessees in the ordinary course of business to the extent
provided in Section 9-320(a) and 9-321 of the Uniform Commercial Code as in effect from time
to time in the relevant jurisdiction, (ii) with respect to general intangibles only,
licensees in the ordinary course of business to the extent provided in Section 9-321 of the
Uniform Commercial Code as in effect from time to time in the relevant jurisdiction and
(iii) any other Person who is entitled to take free of the Lien pursuant to the Uniform
Commercial Code as in effect from time to time in the relevant jurisdiction.

     “Permitted
Liens”: Liens permitted pursuant to the Credit Documents, including
without limitation those permitted to exist pursuant to Section 7.3 of the Credit Agreement.

18 

 

     “Specified
Assets”: the following property and assets of such Grantor:

     (1) Patents, Patent Licenses,
Trademarks and Trademark Licenses to the extent
that (a) Liens thereon cannot be perfected by the filing of financing statements
under the Uniform Commercial Code or by the filing and acceptance thereof in the
United States Patent and Trademark Office or (b) such Patents, Patent Licenses,
Trademarks and Trademark Licenses are not, individually or in the aggregate,
material to the business of the Borrower and its Subsidiaries taken as a whole;

     (2) Copyrights and Copyright
Licenses and Accounts or receivables arising
therefrom to the extent that the Uniform Commercial Code as in effect from time to
time in the relevant jurisdiction is not applicable to the creation or perfection of
Liens thereon or Liens thereon cannot be perfected by the filing and acceptance of
this Agreement or short form thereof in the United States Copyright Office;

     (3) Collateral for which the
perfection of Liens thereon requires filings in or
other actions under the laws of jurisdictions outside of the United States of
America, any State, territory or dependency thereof or the District of Columbia;

     (4) Contracts, Accounts or
receivables subject to the Assignment of Claims Act;

     (5) goods included in Collateral
received by any Person from any Grantor for
“sale or return” within the meaning of Section 2-326 of the Uniform
Commercial Code of the applicable jurisdiction, to the extent of claims of
creditors of such Person;

     (6) Fixtures; Money, cash and Cash
Equivalents;

     (7) Proceeds of Accounts,
receivables or Inventory which do not themselves
constitute Collateral or which have not been transferred to or deposited in the
Collateral Proceeds Account (if any) or to a Deposit Account of a Grantor subject
to the Collateral Agent’s control; and

     (8) uncertificated securities (to the
extent a security interest is not
perfected by the filing of a financing statements).

          4.2.3
Jurisdiction of Organization. On the date hereof, such Grantor’s jurisdiction of organization is specified on
Schedule 4.

          4.2.4
Farm Products. None of such Grantor’s Collateral constitutes, or is the Proceeds of, Farm Products.

          4.2.5
Accounts Receivable. The amounts represented by such Grantor to the Administrative Agent or the other Secured
Parties from time to time as owing by each account debtor or by all account debtors in respect of
such Grantor’s Accounts Receivable constituting

19 

 

Security Collateral will at such time be the
correct amount, in all material respects, actually owing by such account debtor or debtors
thereunder, except to the extent that appropriate reserves therefor have been established on the
books of such Grantor in accordance with GAAP. Unless otherwise indicated in writing to the
Administrative Agent, each Account Receivable of such Grantor arises out of a bona fide sale and
delivery of goods or rendition of services by such Grantor. Such Grantor has not given any account
debtor any deduction in respect of the amount due under any such Account, except in the ordinary
course of business or as such Grantor may otherwise advise the Administrative Agent in writing.

          4.2.6
Patents, Copyrights and Trademarks. Schedule 5 lists all material Trademarks, material Copyrights and material Patents,
in each case, registered in the United States Patent and Trademark Office or the United States
Copyright Office, as applicable, and owned by such Grantor in its own name as of the date hereof,
and all material Trademark Licenses, all material Copyright Licenses (other than licenses to
commercially available software) and all material Patent Licenses (including, without limitation,
material Trademark Licenses for registered Trademarks, material Copyright Licenses for registered
Copyrights and material Patent Licenses for issued Patents) owned by such Grantor in its own name
as of the date hereof.

          4.3
Representations and Warranties of Each Pledgor. To induce the Collateral Agent, 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 Pledgor hereby represents and warrants to the Collateral Agent and each
other Secured Party that:

          4.3.1 Except
as provided in Section 3.3, the shares of Pledged Stock pledged by such Pledgor
hereunder constitute (i) in the case of shares of a Domestic Subsidiary, all the issued and
outstanding shares of all classes of the Capital Stock of such Domestic Subsidiary owned by such
Pledgor and (ii) in the case of any Pledged Stock constituting Capital Stock of any Foreign
Subsidiary, such percentage (not more than 65%) as is specified on Schedule 2 of all the issued and
outstanding shares of all classes of the Capital Stock of each such Foreign Subsidiary owned by
such Pledgor.

          4.3.2 All the
shares of the Pledged Stock pledged by such Pledgor hereunder have been duly and
validly issued and are fully paid and nonassessable (or the equivalent, if any, under applicable
foreign law).

          4.3.3 Such
Pledgor is the record and beneficial owner of, and has good title to, the Pledged
Securities pledged by it hereunder, free of any and all Liens or options in favor of, or claims of,
any other Person, except the security interest created by this Agreement and Liens arising by
operation of law or permitted by the Credit Agreement (or described in the definition of “Permitted
Lien” in the Credit Agreement).

          4.3.4 Except
with respect to security interests in Pledged Securities (if any) constituting
Specified Assets, upon the delivery to the Collateral Agent of the certificates evidencing the
Pledged Securities held by such Pledgor together with executed undated stock powers or other
instruments of transfer, the security interest created in such Pledged Securities

20 

 

constituting
certificated securities by this Agreement, assuming the continuing possession of such Pledged
Securities by the Collateral Agent, will constitute a valid, perfected first priority (subject, in
terms of priority only, to the priority of the Liens of the ABL Collateral Agent and any Additional
Agent) security interest in such Pledged Securities to the extent provided in and governed by the
Code, enforceable in accordance with its terms against all creditors of such Pledgor and any
Persons purporting to purchase such Pledged Securities from such Pledgor, except as enforceability
may be affected by 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.

          4.3.5 Except
with respect to security interests in Pledged Securities (if any) constituting
Specified Assets, upon the obtaining and maintenance of “control” (as described in the Code) by the
Collateral Agent of all Pledged Securities that constitute uncertificated securities, the security
interest created by this Agreement in such Pledged Securities that constitute uncertificated
securities, will constitute a valid, perfected first priority (subject, in terms of priority only,
to the priority of the Liens of the ABL Collateral Agent or any Additional Agent) security interest
in such Pledged Securities constituting uncertificated securities,
enforceable in accordance with its terms against all creditors of such Pledgor and any persons
purporting to purchase such Pledged Securities from such Pledgor, to the extent provided in and
governed by the Code, except as enforceability may be affected by 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.

SECTION 5 COVENANTS

          5.1
Covenants of Each Guarantor. Each Guarantor covenants and agrees with the Collateral Agent and the other Secured Parties
that, from and after the date of this Agreement until the earlier to occur of (i) the date upon
which the Loans, and all other Obligations then due and owing, shall have been paid in full in cash
or (ii) as to any Guarantor, the date upon which all the Capital Stock of such Guarantor shall have
been sold or otherwise disposed of (to a Person other than the Borrower or a Subsidiary of the
Borrower) in accordance with the terms of the Credit Agreement, 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
Covenants of Each Grantor. Each Grantor covenants and agrees with the Collateral Agent and the other Secured Parties
that, from and after the date of this Agreement until the earlier to occur of (i) the date upon
which the Loans, and all other Obligations then due and owing shall have been paid in full in cash
or (ii) as to any Grantor, the date upon which all the Capital Stock of such Grantor shall have
been sold or otherwise disposed of (to a Person other than the Borrower or a Subsidiary of the
Borrower) in accordance with the terms of the Credit Agreement:

21 

 

          5.2.1
Delivery of Instruments, Chattel Paper and Securities. If any amount payable
under or in connection with any of such Grantor’s Collateral shall be or become evidenced by any
Instrument or Chattel Paper, such Grantor shall (except as provided in the following sentence) be
entitled to retain possession of all Collateral of such Grantor evidenced by any Instrument or
Chattel Paper, and shall hold all such Collateral in trust for the Collateral Agent, for the
benefit of the Secured Parties. In the event that an Event of Default shall have occurred and be
continuing, upon the request of the Collateral Agent, such Instrument or Chattel Paper shall be
promptly delivered to the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as
applicable, in accordance with the Intercreditor Agreement, duly indorsed in a manner satisfactory
to the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as applicable, in
accordance with the Intercreditor Agreement, to be held as Collateral pursuant to this Agreement.
Such Grantor shall not permit any other Person (other than the ABL Collateral Agent or any
Additional Agent, as applicable, in accordance with the Intercreditor Agreement) to possess any
such Collateral at any time other than in connection with any sale or other disposition of such
Collateral in a transaction permitted by the Credit Agreement.

          5.2.2
Maintenance of Insurance. Such Grantor will maintain with financially sound and
reputable insurance companies insurance on, or self insure, all property material to the business
of the Borrower and its Subsidiaries, taken as a whole, in at least such amounts and against at
least such risks (but including in any event public liability, product liability and business
interruption) as are consistent with the past practices of the Borrower and its Subsidiaries and
otherwise as are usually insured against in the same general area by companies engaged in the same
or a similar business; furnish to the Collateral Agent, upon written request, information in
reasonable detail as to the insurance carried; and ensure that the Administrative Agent, for the
benefit of the Secured Parties, shall be named as additional insureds with respect to liability
policies and the Collateral Agent shall be named loss payee with respect to the casualty insurance
maintained by such Grantor with respect to such Grantor’s Collateral.

          5.2.3
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 material
taxes, assessments and governmental charges or levies imposed upon such Grantor’s Collateral or in
respect of income or profits therefrom, as well as all material claims of any kind (including,
without limitation, material claims for labor, materials and supplies) against or with respect to
such Grantor’s Collateral (in each case in this Section 5.2.3 other than those relating to the
Mortgaged Properties), except where the amount or validity thereof is currently being contested in
good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto
have been provided on the books of such Grantor, and except to the extent that failure to do so, in
the aggregate, would not reasonably be expected to have a Material Adverse Effect.

          5.2.4
Maintenance of Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the security interest created by this Agreement in such Grantor’s Collateral
as a security interest having at least the perfection and priority described in Section 4.2.2 of
this Agreement and shall defend such security interest against the claims and demands of all
Persons whomsoever.

22 

 

          (b) Such Grantor will furnish to the Collateral Agent from
time to time statements and
schedules further identifying and describing such Grantor’s Collateral and such other reports in
connection with such Grantor’s Collateral as the Collateral Agent may reasonably request in
writing, all in reasonable detail.

          (c) At
any time and from time to time, upon the written request of the Collateral Agent, and
at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver such
further instruments and documents and take such further actions as the Collateral 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 by such Grantor, including, without limitation, the
filing of any financing or continuation statements under the Uniform Commercial Code (or other
similar laws) in effect in any United States jurisdiction with respect to the security interests
created hereby.

          5.2.5
Changes in Name, Jurisdiction of Organization, etc. Such Grantor will not,
except upon not less than 30 days’ prior written notice to the Collateral Agent, change its name or
jurisdiction of organization (whether by merger of otherwise); provided that, promptly
after receiving a written request therefor from the Collateral Agent, such Grantor shall
deliver to the Collateral Agent all additional financing statements and other documents reasonably
requested by the Collateral Agent to maintain the validity, perfection and priority of the security
interests as and to the extent provided for herein.

          5.2.6
Notices. Such Grantor will advise the Administrative Agent promptly, in
reasonable detail, of:

          (a) any
Lien (other than security interests created hereby or Liens permitted under the Credit
Agreement or Liens described in the definition of “Permitted Lien” in the Credit Agreement) on any
of such Grantor’s Collateral which would materially adversely affect the ability of the Collateral
Agent to exercise any of its remedies hereunder; and

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

          5.2.7
Pledged Stock. In the case of each Grantor that is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement relating to the Pledged Stock
issued by it and will comply with such terms insofar as such terms are applicable to it, (ii) it
will notify the Collateral Agent promptly in writing of the occurrence of any of the events
described in Section 5.3.1 with respect to the Pledged Stock 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) or 6.7 with respect to the Pledged
Stock issued by it.

          5.2.8
Accounts Receivable. (a) With respect to Accounts Receivable constituting
Collateral, other than in the ordinary course of business or as permitted by the Loan Documents,
such Grantor will not (i) grant any extension of the time of payment of any of such Grantor’s
Accounts Receivable, (ii) compromise or settle any such Account Receivable for less than the full
amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any
Account

23 

 

Receivable, (iv) allow any credit or discount whatsoever on any such Account
Receivable or
(v) amend, supplement or modify any Account Receivable unless such extensions, compromises,
settlements, releases, credits or discounts would not reasonably be expected to materially
adversely affect the value of the Accounts Receivable constituting Collateral taken as a whole.

          (b) Such Grantor will deliver to the Collateral 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 Accounts Receivable.

          5.2.9
Maintenance of Records. Such Grantor will keep and maintain at its own cost and
expense reasonably satisfactory and complete records of its Collateral, including, without
limitation, a record of all payments received and all credits granted with respect to such
Collateral, and shall mark such records to evidence this Agreement and the Liens and the security
interests created hereby.

          5.2.10
Acquisition of Intellectual Property. Within 90 days after the end of each
calendar year, such Grantor will notify the Collateral Agent of any acquisition by such Grantor
of (i) any registration of any material Copyright, Patent or Trademark or (ii) any exclusive
rights under a material Copyright License, Patent License or Trademark License constituting
Collateral, and shall take such actions as may be reasonably requested by the Collateral Agent (but
only to the extent such actions are within such Grantor’s control) to perfect the security interest
granted to the Collateral Agent and the other Secured Parties therein, to the extent provided
herein in respect of any Copyright, Patent or Trademark constituting Collateral on the date hereof,
by (x) the execution and delivery of an amendment or supplement to this Agreement (or amendments to
any such agreement previously executed or delivered by such Grantor) and/or (y) the making of
appropriate filings (I) of financing statements under the Uniform Commercial Code of any applicable
jurisdiction and/or (II) in the United States Patent and Trademark Office, or with respect to
Copyrights and Copyright Licenses, another applicable office).

          5.2.11
Protection of Trade Secrets. Such Grantor shall take all steps which it deems
commercially reasonable to preserve and protect the secrecy of all material Trade Secrets of such
Grantor.

          5.2.12
Commercial Tort Actions. All Commercial Tort Actions of each Grantor in
existence on the date of this Agreement, known to such Grantor after reasonable inquiry, are
described in Schedule 7 hereto. If any Grantor shall at any time after the date of this Agreement
acquire a Commercial Tort Action in an amount of $2,000,000, such Grantor shall promptly notify the
Collateral Agent thereof in a writing signed by such Grantor and describing the details thereof and
shall grant to the Collateral Agent in such writing a security interest therein and in the proceeds
thereof, all upon the terms of this Agreement, with such writing to be in form and substance
reasonably satisfactory to the Collateral Agent.

          5.2.13
Assignment of Letter of Credit Rights. In the case of any Letter-of-Credit
Rights of any Grantor in any letter of credit exceeding $2,000,000 in value acquired following the
Closing Date (other than any Letter of Credit Right constituting ABL Priority Collateral), such
Grantor shall use its commercially reasonable efforts to promptly obtain the consent of the

24 

 

issuer
thereof and any nominated person thereon to the assignment of the proceeds of the related letter of
credit in accordance with Section 5-114(c) of the UCC, pursuant to an agreement in form and
substance reasonably satisfactory to the Administrative Agent, in each case subject to the
Intercreditor Agreement.

          5.2.14
Securities Accounts and Uncertificated Investment Property. (a) Prior to the
Discharge of Working Capital Obligations (as defined in the Intercreditor Agreement), if such
Grantor enters into any agreement with any third party (other than any Agent (as defined in the
Intercreditor Agreement)) as required by the ABL Credit Agreement that gives the ABL Collateral
Agent control for purposes of perfection over any Collateral consisting of a Deposit Account, a
Securities Account or uncertificated securities (within the meaning of the UCC), such Grantor shall
use commercially reasonable efforts to ensure that the Collateral Agent is also given control
(either directly or pursuant to intercreditor or agency arrangements with the ABL Collateral Agent
or any Additional Agent) over such Collateral for purposes of perfection, all in accordance with
and subject to the Intercreditor Agreement. At such Grantor’s option such control shall terminate
(and any agreement purporting to grant such control shall at such Grantor’s option provide for such
termination) at such time as the Borrower or any of its Subsidiaries obtains an Other Revolving
Facility (as defined below).

          (b) After the Discharge of Working Capital Obligations but
only until an Other Revolving
Facility (as defined below) is obtained, if any ABL Deposit Account (as defined below) of such
Grantor shall have an average balance for any month in excess of $2,000,000, such Grantor shall,
unless such Grantor and the Collateral Agent otherwise agree, use commercially reasonable efforts
to put a Control Agreement (as defined below) into effect for such Deposit Account or Securities
Account reasonably promptly. If the aggregate average balance for any month of all ABL Deposit
Accounts shall exceed $10,000,000, the Grantors shall, unless the Grantors and the Collateral Agent
otherwise agree, use commercially reasonable efforts to reduce the aggregate average monthly
balances of all ABL Deposit Accounts to $10,000,000 or less reasonably promptly (which efforts may
include, without limitation, the transfer or redirection of funds or the entry into Control
Agreements, in each case at the Grantors’ option). An “ABL Deposit Account” means any Deposit
Account or Securities Account of a Grantor constituting Collateral (other than any Deposit Account
or Securities Account maintained with the Collateral Agent or any Additional Agent, as the case may
be) that (1) but for the Discharge of Working Capital Obligations, would have been required to be
subject to a control agreement in favor of the ABL Collateral Agent pursuant to the terms of the
ABL Credit Agreement as in effect immediately prior to the Discharge of Working Capital Obligations
and (2) over which the Collateral Agent does not exercise control for purposes of perfection in
accordance with the Intercreditor Agreement. A “Control Agreement” means an agreement that
purports to grant control over the applicable Deposit Account or Securities Account to the
Collateral Agent or any Additional Agent, as applicable. Any Control Agreement shall provide that
the Collateral Agent and any Additional Agent, as applicable, will not exercise control over such
Collateral unless an Event of Default has occurred and is continuing. Any Control Agreement shall
also contain terms reasonably satisfactory to the relevant Grantor providing for the termination of
such Control Agreement (and the Collateral Agent hereby agrees that all such Control Agreements,
and the obligations of the Grantors under this clause (b), shall terminate) at such time that the
Borrower or any of its Subsidiaries obtains an Other Revolving Facility (as defined below).

25 

 

          (c) After the Discharge of Working Capital Obligations, if the
Borrower or any of its
Subsidiaries obtains a revolving or working capital or other similar facility (whether or not
asset-based) the obligations under which are not (without limiting the definition thereof) ABL
Obligations (if designated by the Borrower as such, an “Other Revolving Facility”), prior
to the discharge of obligations thereunder, and if such Grantor enters into any agreement with any
third party (other than any lender under the Other Revolving Facility or agent thereof) as required
by the Other Revolving Facility that gives the lenders thereunder control for purposes of
perfection over any Collateral consisting of a Deposit Account or Securities Account that is not
otherwise subject to the control of the Collateral Agent or any Additional Agent, as applicable in
accordance with the Intercreditor Agreement, such Grantor shall use commercially reasonable efforts
to ensure that the Collateral Agent or an Additional Agent, as applicable and in accordance with
the Intercreditor Agreement, is also given control (either directly or pursuant to intercreditor or
agency arrangements with any Additional Agent, such lenders under the Other Revolving Facility or
any agent thereof) over such Deposit Account or Securities Account for purposes of perfection, on a
subordinated, second lien and/or junior priority basis if so requested by such Grantor.

               (d) As used in this
Section 5.2.14, “control” has the meaning specified in the UCC, it being
understood and agreed that any agreement granting control to the Collateral Agent or any Additional
Agent, as applicable, (1) may at the applicable Grantor’s option provide that the Collateral Agent
or such Additional Agent, as applicable, may exercise or be entitled to control (i) only after the
Discharge of Working Capital Obligations or discharge of obligations under an Other Revolving
Facility, as the case may be, (ii) only with the consent of the ABL Collateral Agent or the secured
party or parties under an Other Revolving Facility (or an agent thereof) as the case may be, (iii)
only after the ABL Collateral Agent has delivered written notice to the applicable bank or
securities intermediary, as the case may be, that the Collateral Agent may exercise or be entitled
to control, and such bank or securities intermediary, as the case may be, has acknowledged receipt
of such notice or (iv) subject to similar limitations and (2) shall otherwise, unless the Grantor
otherwise agrees (and except for provisions establishing lien priorities), be on terms and
conditions substantially similar to, or no more favorable to the Collateral Agent or Additional
Agent, as the case may be, than, the applicable control agreement in favor or the ABL Collateral
Agent or the secured party or parties under an Other Revolving Facility.

               (e) The Collateral Agent
hereby agrees that it will not exercise control over, nor deliver any
notice of control or entitlement order or instruction with respect to, any Deposit Account,
Securities Account or uncertificated securities unless an Event of Default has occurred and is
continuing.

     5.2.16 Protection of Trademarks. Except
as permitted by the Loan Documents or the
ABL Facility Documents, such Grantor agrees to take all steps which it deems commercially
reasonable to maintain the Trademark registrations and pursue the Trademark applications now or
hereafter listed on Schedule 5, except where such Grantor has reasonably determined that any of the
foregoing is not material to the business of such Grantor.

26 

 

          5.2.17
Quality Control. Subject to the Loan Documents and the ABL Facility
Documents, such Grantor shall take all steps which it deems commercially reasonable to exercise
quality control over any Inventory constituting Term Loan Priority Collateral bearing any of the
Trademarks, except where the failure to do so would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

          5.2.18
Abandonment. Except as permitted by the Loan Documents or the ABL Facility
Documents, such Grantor shall not abandon any Trademark registration, issued Patent or Copyright
registration, or any pending Trademark, Patent or Copyright application, in each case now or
hereafter listed on Schedule 5, without the consent of the Collateral Agent.

          5.3
Covenants of Each Pledgor. Each Pledgor covenants and agrees with the Collateral
Agent and the other Secured Parties that, from and after the date of this Agreement until the
earlier to occur of (i) the Loans, and all other Obligations then due and owing shall have been
paid in full in cash or (ii) as to any Pledgor, all the Capital Stock of such Pledgor shall have
been sold or otherwise disposed of (to a Person other than the Borrower or a Subsidiary of the
Borrower) as permitted under the terms of the Credit Agreement:

          5.3.1
Additional Shares. If such Pledgor shall, as a result of its ownership of its
Pledged Stock, become entitled to receive or shall receive any stock certificate (including,
without limitation, any stock certificate representing a stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), stock option or similar 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 Pledgor shall accept the
same as the agent of the Collateral Agent and the other Secured Parties, hold the same in trust for
the Collateral Agent and the other Secured Parties and deliver the same forthwith to the Collateral
Agent (who will hold the same on behalf of the Secured Parties), the ABL Collateral Agent or any
Additional Agent, as applicable, in accordance with the Intercreditor Agreement, in the exact form
received, duly indorsed by such Pledgor to the Collateral Agent, the ABL Collateral Agent or any
Additional Agent, as applicable, in accordance with the Intercreditor Agreement, if required,
together with an undated stock power covering such certificate duly executed in blank by such
Grantor, to be held by the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as
applicable, in accordance with the Intercreditor Agreement, subject to the terms hereof, as
additional collateral security for the Obligations (subject to Section 3.3 and provided
that in no event shall there be pledged, nor shall any Pledgor be required to pledge, more than 65%
of any series of the outstanding Capital Stock of any Foreign Subsidiary pursuant to this
Agreement). Any sums paid upon or in respect of the Pledged Stock upon the liquidation or
dissolution of any Issuer (except any liquidation or dissolution of any Subsidiary of the Borrower
in accordance with the Credit Agreement) shall be paid over to the Collateral Agent, the ABL
Collateral Agent or any Additional Agent as applicable, in accordance with the Intercreditor
Agreement to be held hereunder by the Collateral Agent, the ABL Collateral Agent or any Additional
Agent, as applicable, in accordance with the Intercreditor Agreement subject to the terms hereof as
additional collateral security for the Obligations, and in case any distribution of capital shall
be made on or in respect of the Pledged Stock or any property shall be distributed upon or with
respect to the Pledged Stock pursuant to the recapitalization or reclassification of the capital of
any Issuer or pursuant to the reorganization thereof, the property

27 

 

so distributed shall, unless
otherwise subject to a perfected security interest in favor of the Collateral Agent, be delivered
to the Collateral Agent, the ABL Collateral Agent or any Additional Agent as applicable, in
accordance with the Intercreditor Agreement, to be held hereunder by the Collateral Agent, the ABL
Collateral Agent or any Additional Agent, as applicable, in accordance with the Intercreditor
Agreement subject to the terms hereof as additional collateral security for the Obligations, in
each case except as otherwise provided by the Intercreditor Agreement. If any sums of money or
property so paid or distributed in respect of the Pledged Stock shall be received by such Pledgor,
such Pledgor shall, until such money or property is paid or delivered to the Collateral Agent, the
ABL Collateral Agent or any Additional Agent, as applicable, in accordance with the Intercreditor
Agreement, hold such money or property in trust for the Secured Parties, segregated from other
funds of such Pledgor, as additional collateral security for the Obligations.

          5.3.2
Maintenance of Pledged Stock. Without the prior written consent of the
Collateral Agent, such Pledgor will not (except as permitted by the Credit Agreement) (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, (ii)
sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Pledged
Securities or Proceeds thereof, (iii) create, incur or permit to exist any Lien or option in favor
of, or any material adverse claim of any Person with respect to, any of the Pledged Securities or
Proceeds thereof, or any interest therein, except for the security interests created by this
Agreement or Liens arising by operation of law or (iv) enter into any agreement or undertaking
restricting the right or ability of such Pledgor or the Collateral Agent to sell, assign or
transfer any of the Pledged Securities or Proceeds thereof. Each interest in any limited liability
company formed by a Grantor after the Closing Date that is a Wholly Owned Subsidiary of the Grantor
pledged hereunder shall be represented by a certificate, shall be a “security” within the meaning
of the Article 8 of the Code and shall be governed by Article 8 of the Code. The charter documents
of each such limited liability company shall include an express provision providing that each
interest in such entity “is a security governed by Article 8 of the Uniform Commercial Code in
effect in the State of New York on the date hereof”.

          5.3.3
Pledged Notes. Such Pledgor shall, on the date of this Agreement (or on such
later date upon which it becomes a party hereto pursuant to Section 9.15), deliver to the
Collateral Agent, the ABL Collateral Agent or any Additional Agent, as applicable, in accordance
with the Intercreditor Agreement, all Pledged Notes then held by such Pledgor (excluding any
Pledged Note the principal amount of which does not exceed $2,000,000), endorsed in blank or, at
the request of the Collateral Agent, endorsed to the Collateral Agent. Furthermore, within ten
Business Days after any Pledgor obtains a Pledged Note with a principal amount in excess of
$2,000,000, such Pledgor shall cause such Pledged Note to be delivered to the Collateral Agent, or
the ABL Collateral Agent or any Additional Agent, as applicable, in accordance with the
Intercreditor Agreement, endorsed in blank or, at the request of the Collateral Agent, endorsed to
the Collateral Agent, or the ABL Collateral Agent or any Additional Agent, as applicable, in
accordance with the Intercreditor Agreement.

28 

 

          5.3.4
Maintenance of Security Interest. Such Pledgor shall maintain the security
interest created by this Agreement in such Pledgor’s Pledged Collateral as a security interest
having at least the perfection and priority described in Section 4.3.4 or 4.3.5 of this Agreement,
as applicable, and shall defend such security interest against the claims and demands of all
Persons whomsoever. At any time and from time to time, upon the written request of the Collateral
Agent and at the sole expense of such Pledgor, such Pledgor will promptly and duly execute and
deliver such further instruments and documents and take such further actions as the Collateral
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 by such Pledgor.

SECTION 6 REMEDIAL PROVISIONS

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

          (b) The
Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Accounts
Receivable constituting Collateral and to the extent permitted by applicable law the Collateral
Agent may curtail or terminate said authority at any time after the occurrence and during the
continuance of an Event of Default specified in Section 8.1(f) of the Credit Agreement with respect
to any Grantor. If required by the Collateral Agent at any time after the occurrence and during
the continuance of an Event of Default specified in Section 8.1(f) of the Credit Agreement with
respect to any Grantor, to the extent permitted by applicable law, any Proceeds constituting
payments or other cash proceeds of Accounts Receivables constituting Collateral, when collected by
such Grantor, (i) shall be forthwith (and, in any event, within two Business Days of receipt by
such Grantor) deposited in, or otherwise transferred by such Grantor to, the Collateral Proceeds
Account, subject to withdrawal by the Collateral 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 Collateral Agent and the other Secured Parties, segregated from other funds of such
Grantor. All Proceeds constituting collections or other cash proceeds of Accounts Receivable
constituting Collateral while held by the Collateral Account Bank (or by any Grantor in trust for
the benefit of the Collateral Agent and the other Secured Parties) shall continue to be collateral
security for all of the Obligations and shall not constitute payment thereof until applied as
hereinafter provided. At any time when an Event of Default specified in Section 8.1(f) of the
Credit Agreement has occurred and is continuing with respect to any Grantor, to the extent
permitted by applicable law, at the Collateral Agent’s election, each of the Collateral Agent and
the Administrative Agent may apply all or any part of the funds on deposit in the Collateral
Proceeds Account established by the relevant Grantor to the payment of

29 

 

the Obligations of such
Grantor then due and owing, such application to be made as set forth in Section 6.5 hereof. So
long as no Event of Default has occurred and is continuing, the funds on deposit in the Collateral
Proceeds Account shall be remitted as provided in Section 6.1(d) hereof.

          (c) At
any time and from time to time after the occurrence and during the continuance of an
Event of Default specified in Section 8.1(f) of the Credit Agreement with respect to any Grantor,
to the extent permitted by applicable law, at the Collateral Agent’s request, each Grantor shall
deliver to the Collateral Agent copies or, if required by the Collateral Agent for the enforcement
thereof or foreclosure thereon, originals of all documents held by such Grantor evidencing, and
relating to, the agreements and transactions which gave rise to such Grantor’s Accounts Receivable
constituting Collateral, including, without limitation, all statements relating to such Grantor’s
Accounts Receivable constituting Collateral and all orders, invoices and shipping receipts.

          (d) So
long as no Event of Default has occurred and is continuing, the Collateral Agent shall
instruct the Collateral Account Bank to promptly remit any funds on deposit in each Grantor’s
Collateral Proceeds Account to such Grantor’s General Fund Account or any other account designated
by such Grantor. In the event that an Event of Default has occurred and is continuing, the
Collateral Agent and the Grantors agree that the Collateral Agent,
at its option, may require that each Collateral Proceeds Account and the General Fund Account
of each Grantor be established at the Collateral Agent. Each Grantor shall have the right, at any
time and from time to time, to withdraw such of its own funds from its own General Fund Account,
and to maintain such balances in its General Fund Account, as it shall deem to be necessary or
desirable.

          6.2
Communications with Obligors; Grantors Remain Liable. (a) The Collateral Agent in its own name or in the name of others, may at
any time and from
time to time after the occurrence and during the continuance of an Event of Default specified in
Section 8.1(f) of the Credit Agreement with respect to any Grantor, to the extent permitted by
applicable law, communicate with obligors under the Accounts Receivable constituting Collateral and
parties to the Contracts (in each case, to the extent constituting Collateral) to verify with them
to the Collateral Agent’s satisfaction the existence, amount and terms of any Accounts Receivable
or Contracts.

          (b) Upon the request of the Collateral Agent at any time after
the occurrence and during the
continuance of an Event of Default specified in Section 8.1(f) of the Credit Agreement with respect
to any Grantor, to the extent permitted by applicable law, each Grantor shall notify obligors on
such Grantor’s Accounts Receivable and parties to such Grantor’s Contracts (in each case, to the
extent constituting Collateral) that such Accounts Receivable and such Contracts have been assigned
to the Collateral Agent, for the benefit of the Secured Parties, and that payments in respect
thereof shall be made directly to the Collateral Agent.

          (c) Anything herein to the contrary notwithstanding, each
Grantor shall remain liable under
each of such Grantor’s Accounts Receivable 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. None of the Collateral Agent, the Administrative Agent or any other
Secured Party shall have any obligation or liability under any Account

30 

 

Receivable (or any agreement
giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral
Agent or any other Secured Party of any payment relating thereto, nor shall the Collateral Agent or
any other Secured Party be obligated in any manner to perform any of the obligations of any Grantor
under or pursuant to any Account 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 that 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 Collateral Agent
shall have given notice to the relevant Pledgor of the Collateral Agent’s intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Pledgor shall be permitted to receive all
cash dividends and distributions paid in respect of the Pledged Stock (subject to the last two
sentences of Section 5.3.1 of this Agreement) and all payments made in respect of the Pledged
Notes, to the extent permitted in the Credit Agreement, and to exercise all voting and
corporate rights with respect to the Pledged Stock; provided, however, that no
vote shall be cast or corporate right exercised or such other action taken (other than in
connection with a transaction expressly permitted by the Credit Agreement) which, in the Collateral
Agent’s reasonable judgment, would materially impair the Pledged Stock or the related rights or
remedies of the Secured Parties 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 Collateral Agent shall give
notice of its intent to exercise such rights to the relevant Pledgor or Pledgors, (i) the
Collateral Agent, the ABL Collateral Agent or any Additional Agent, as applicable, in accordance
with the Intercreditor Agreement, shall have the right to receive any and all cash dividends,
payments or other Proceeds paid in respect of the Pledged Stock and make application thereof to the
Obligations of the relevant Pledgor in such order as is provided in Section 6.5, and (ii) any or
all of the Pledged Stock shall be registered in the name of the Collateral Agent or its nominee or
the ABL Collateral Agent or any Additional Agent or the respective nominee thereof, and the
Collateral Agent or its nominee or the ABL Collateral Agent or any Additional Agent or the
respective nominee thereof, as applicable, in accordance with the Intercreditor Agreement, may
thereafter exercise (x) all voting, corporate and other rights pertaining to such Pledged Stock at
any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all
rights of conversion, exchange, subscription and any other rights, privileges or options pertaining
to such Pledged Stock as if it were the absolute owner thereof (including, without limitation, the
right to exchange at its discretion any and all of the Pledged Stock upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in the corporate
structure of any Issuer, or upon the exercise by the relevant Pledgor or the Collateral Agent, the
ABL Collateral Agent or any Additional Agent, as applicable, in accordance with the Intercreditor
Agreement, of any right, privilege or option pertaining to such Pledged Stock, and in connection
therewith, the right to deposit and deliver any and all of the Pledged Stock with any committee,
depository, transfer agent, registrar or other designated agency upon such terms and conditions as
the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as applicable, in
accordance with the Intercreditor Agreement, may reasonably determine), all

31 

 

without liability
(other than for its gross negligence or willful misconduct) except to account for property actually
received by it, but the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as
applicable, in accordance with the Intercreditor Agreement, shall have no duty, to any Pledgor to
exercise any such right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing, provided that the Collateral Agent, the ABL Collateral Agent or any
Additional Agent, as applicable, in accordance with the Intercreditor Agreement, shall not exercise
any voting or other consensual rights pertaining to the Pledged Stock in any way that would
constitute an exercise of the remedies described in Section 6.6 other than in accordance with
Section 6.6.

          (c) Each
Pledgor hereby authorizes and instructs each Issuer or maker of any Pledged
Securities pledged by such Pledgor hereunder to (i) comply with any instruction received by it from
the Collateral 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 Pledgor, and each Pledgor agrees that each Issuer or maker 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 Collateral Agent.

          (d) Each party acknowledges that the shares of the entities
listed on the Schedule 2 attached
hereto are being transferred to and deposited with the Collateral Agent as collateral security for
the loans made by lenders pursuant to the Credit Agreement and the ABL Credit Agreement and that
this Section 6.3(d) is intended to be the certificate of exemption from New York stock transfer
taxes for the purposes of complying with Section 270.5(b) of the Tax Law of the State of New York.

          6.4
Proceeds to be Turned Over to the Collateral Agent. In addition to the rights of
the Collateral Agent and the other Secured Parties specified in Section 6.1 with respect to
payments of Accounts Receivable constituting Collateral, if an Event of Default shall occur and be
continuing, and the Collateral Agent shall have instructed any Grantor to do so, all Proceeds of
Security Collateral received by such Grantor consisting of cash, checks and other Cash Equivalent
items shall be held by such Grantor in trust for the Collateral Agent and the other Secured Parties
hereto, or the ABL Collateral Agent and the other Secured Parties (as defined in the ABL Credit
Agreement) or any Additional Agent and the other applicable Additional Secured Parties (as defined
in the Intercreditor Agreement), as applicable, in accordance with the Intercreditor Agreement,
segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be
turned over to the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as
applicable, in accordance with the Intercreditor Agreement (or their respective agents appointed
for purposes of perfection), in the exact form received by such Grantor (duly indorsed by such
Grantor to the Collateral Agent, the ABL Collateral Agent or any Additional Agent, as applicable,
in accordance with the Intercreditor Agreement, if required). All Proceeds of Security Collateral
received by the Collateral Agent hereunder shall be held by the Collateral Agent in the relevant
Collateral Proceeds Account maintained under its sole dominion and control. All Proceeds of
Security Collateral while held by the Collateral Agent in such Collateral Proceeds Account (or by
the relevant Grantor in trust for the Collateral Agent and the other Secured Parties) shall
continue to be held as collateral security for all the

32 

 

Obligations of such Grantor and shall not
constitute payment thereof until applied as provided in Section 6.5.

          6.5
Application of Proceeds. It is agreed that if an Event of Default shall occur and
be continuing, subject to the Intercreditor Agreement, any and all Proceeds of the relevant
Grantor’s Security Collateral (as defined in the Credit Agreement) received by the Collateral Agent
(whether from the relevant Grantor or otherwise) shall be held by the Collateral Agent for the
benefit of the Secured Parties as collateral security for the Obligations of the relevant Grantor
(whether matured or unmatured), and/or then or at any time thereafter may, in the sole discretion
of the Collateral Agent, be applied by the Collateral Agent in accordance with the Intercreditor
Agreement, and thereafter against the Obligations of the relevant Grantor then due and owing as
follows (without duplication of any amounts applied in accordance with the Intercreditor
Agreement):

     FIRST, to the payment of all
Obligations consisting of all reasonable out-of-pocket
costs and expenses (including, without limitation, reasonable attorneys’ fees) of
the Administrative Agent and the Collateral Agent in connection with enforcing the
rights of the Lenders under the Loan Documents;

     SECOND, to the payment of all
Obligations consisting of any fees owed to the
Administrative Agent and the Collateral Agent;

     THIRD, to the payment of all
Obligations consisting of all reasonable out-of-pocket
costs and expenses (including, without limitation, reasonable attorneys’ fees of counsel to
the Administrative Agent and the Lenders) of each Lender in connection with enforcing its
rights under the Loan Documents;

     FOURTH, to the payment of all
Obligations consisting of accrued fees (other than any
referred to in clause “SECOND” above) and interest, including, with respect to Obligations
owed to any Non-Lender Secured Party, any fees, premiums and scheduled periodic payments
then due and owing to such Non-Lender Secured Party under any Secured Bank Product
Agreement;

     FIFTH, to the payment of all
Obligations consisting of outstanding principal,
including, with respect to Obligations owed to any Non-Lender Secured Party, any breakage,
termination or other payments then due and owing to such Non-Lender Secured Party under any
Secured Bank Product Agreement;

     SIXTH, to the payment of all other
Obligations then due and owing and not paid pursuant
to the Intercreditor Agreement or clauses “FIRST” through “FIFTH” above; and

     SEVENTH, thereafter in
accordance with the Intercreditor Agreement to the extent
applicable, and then to the relevant Grantor or its successors or assigns, or to whoever 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 Collateral 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

33 

 

agreement
securing, evidencing or relating to the Obligations to the extent permitted by applicable law, all
rights and remedies of a secured party under the Code or any other applicable law. Without
limiting the generality of the foregoing, to the extent permitted by applicable law, the Collateral
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
Security Collateral, or any part thereof, and/or may forthwith, subject to any existing reserved
rights or licenses, sell, lease, assign, give option or options to purchase, or otherwise dispose
of and deliver the Security 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 Collateral Agent or any other 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 Collateral Agent or any other
Secured Party shall have the right, to the extent permitted by law,
upon any such sale or sales, to purchase the whole or any part of the Security Collateral so
sold, free of any right or equity of redemption in such Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Collateral Agent’s request, to assemble
the Security Collateral and make it available to the Collateral Agent at places which the
Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The
Collateral 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 Security Collateral or in any way
relating to the Security Collateral or the rights of the Collateral Agent and the other Secured
Parties hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations of the relevant Grantor then due and owing, in
the order of priority specified in Section 6.5 above, and only after such application and after the
payment by the Collateral Agent of any other amount required by any provision of law, including,
without limitation, Section 9-615(a)(3) of the Code, need the Collateral Agent account for the
surplus, if any, to such Grantor. To the extent permitted by applicable law, (i) such Grantor
waives all claims, damages and demands it may acquire against the Collateral Agent or any other
Secured Party arising out of the repossession, retention or sale of the Security Collateral, other
than any such claims, damages and demands that may arise from the gross negligence or willful
misconduct of any of the Collateral Agent or such other Secured Party, and (ii) if any notice of a
proposed sale or other disposition of Security 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) If the Collateral Agent shall determine to exercise its right to sell any or all of the
Pledged Stock pursuant to Section 6.6, and if in the reasonable opinion of the Collateral Agent it
is necessary or reasonably advisable to have the Pledged Stock, or that portion thereof to be sold,
registered under the provisions of the Securities Act, the relevant Pledgor will use its reasonable
best efforts to cause the Issuer thereof to (i) execute and deliver, and use its best efforts to
cause the directors and officers of such Issuer to execute and deliver, all such instruments and
documents, and do or cause to be done all such other acts as may be, in the reasonable opinion of
the Collateral Agent, necessary or advisable to register such Pledged Stock, or that portion
thereof to be sold, under the provisions of the Securities Act, (ii)

34 

 

use its reasonable best
efforts to cause the registration statement relating thereto to become effective and to remain
effective for a period of not more than one year from the date of the first public offering of such
Pledged Stock, or that portion thereof to be sold, and (iii) make all amendments thereto and/or to
the related prospectus which, in the reasonable opinion of the Collateral Agent, are necessary or
advisable, all in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto. Such Pledgor agrees to
use its reasonable best efforts to cause such Issuer to comply with the provisions of the
securities or “Blue Sky” laws of any and all states and the District of Columbia that the
Collateral Agent shall reasonably designate and to make available to its security holders, as soon
as practicable, an earnings statement (which need not be audited) that will satisfy the provisions
of Section 11(a) of the Securities Act.

          (b) Such Pledgor recognizes that the Collateral Agent may
be unable to effect a public sale of
any or all such Pledged Stock, by reason of certain 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. Such Pledgor 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, to the extent permitted by applicable law, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable manner. The Collateral
Agent shall not be under any 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.

          (c) Such
Pledgor agrees to use its reasonable best efforts to do or cause to be done all such
other acts as may be necessary to make such sale or sales of all or any portion of such Pledged
Stock pursuant to this Section 6.7 valid and binding and in compliance with any and all other
applicable Requirements of Law. Such Pledgor further agrees that a breach of any of the covenants
contained in this Section 6.7 will cause irreparable injury to the Collateral Agent and the
Lenders, that the Collateral Agent and the Lenders 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 Pledgor, and to the extent permitted by applicable law,
such Pledgor 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 or is
continuing under the Credit Agreement.

          6.8
Waiver; Deficiency. Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Security Collateral are insufficient to pay in
full, the Loans and, to the extent then due and owing, all other Obligations of such Grantor and
the reasonable fees and disbursements of any attorneys employed by the Collateral Agent or any
other Secured Party to collect such deficiency.

35 

 

SECTION 7 THE COLLATERAL AGENT

          7.1
Collateral Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor hereby irrevocably constitutes and appoints the
Collateral Agent and any
authorized 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 that may be reasonably necessary or desirable to accomplish the purposes of this
Agreement to the extent permitted by applicable law, provided that the Collateral Agent
agrees not to exercise such power except upon the occurrence and during the continuance of any
Event of Default. Without limiting the generality of the foregoing, at any time when an Event of
Default has occurred and is continuing (in each case to the extent permitted by applicable law),
(x) each Pledgor hereby gives the Collateral Agent the power and right, on behalf of such
Pledgor, without notice or assent by such Pledgor, to execute, in connection with any sale
provided for in Section 6.6(a) or 6.7, any indorsements, assessments or other instruments of
conveyance or transfer with respect to such Pledgor’s Pledged Collateral, and (y) each Grantor
hereby gives the Collateral 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 Account Receivable of such Grantor that constitutes Security
Collateral or with respect to any other Security Collateral of such Grantor and file any
claim or take any other action or institute any proceeding in any court of law or equity or
otherwise deemed appropriate by the Collateral Agent for the purpose of collecting any and
all such moneys due under any Account Receivable of such Grantor that constitutes Security
Collateral or with respect to any other Security Collateral of such Grantor whenever
payable;

     (ii) in the case of any Copyright,
Patent, or Trademark constituting Collateral of such
Grantor, execute and deliver any and all agreements, instruments, documents and papers as
the Collateral Agent may reasonably request to such Grantor to evidence the Collateral
Agent’s and the Lenders’ security interest in such Copyright, Patent, or Trademark and the
goodwill and general intangibles of such Grantor relating thereto or represented thereby;

     (iii) pay or discharge taxes and
Liens, other than Liens permitted under this Agreement
or the other Loan Documents, levied or placed on the Security Collateral of such Grantor,
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; and

     (iv) (A) direct any party
liable for any payment under any of the Security Collateral
of such Grantor to make payment of any and all moneys due or to become due thereunder
directly to the Collateral Agent or as the Collateral Agent shall direct; (B) ask or demand
for, collect, 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

36 

 

Security
Collateral of such Grantor; (C) 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 Security Collateral
of such Grantor; (D) commence and prosecute any suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect the Security Collateral of such
Grantor or any portion thereof and to enforce any other right in respect of any Security
Collateral of such Grantor; (E) defend any suit, action or proceeding brought against such
Grantor with respect to any Security Collateral of such Grantor; (F) settle, compromise or
adjust any such suit, action or proceeding described in clause (E) above and, in connection
therewith, to give such discharges or releases as the Collateral Agent may deem appropriate;
(G) subject to any existing reserved rights or licenses, assign any Copyright, Patent or
Trademark constituting Security Collateral of such Grantor (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), for such term or terms,
on such conditions, and in such
manner, as the Collateral Agent shall in its sole discretion determine; and (H)
generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any of the Security Collateral of such Grantor as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes, and do, at the Collateral
Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and
things which the Collateral Agent deems necessary to protect, preserve or realize upon the
Security Collateral of such Grantor and the Collateral Agent’s and the other Secured
Parties’ security interests therein and to effect the intent of this Agreement, all as fully
and effectively as such Grantor might do.

          (b) The
reasonable expenses of the Collateral 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 ABR Loans, from the
date of payment by the Collateral Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Collateral Agent on demand.

          (c) Each
Grantor hereby ratifies all that said attorney 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 as to the relevant Grantor until this Agreement is terminated
as to such Grantor, and the security interests in the Security Collateral of such Grantor created
hereby are released.

          7.2 Duty
of Collateral Agent. The Collateral Agent’s sole duty with respect to the
custody, safekeeping and physical preservation of the Security Collateral in its possession, under
Section 9-207 of the Code or otherwise, shall be to deal with it in the same manner as the
Collateral Agent deals with similar property for its own account. None of the Collateral Agent or
any other 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 Security Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose of any Security
Collateral upon the request of any Grantor or any other Person or, except as otherwise provided
herein, to take any other action whatsoever with regard to the Security Collateral or any part
thereof. The powers conferred on the Collateral Agent and the other Secured Parties hereunder are
solely to protect the Collateral Agent’s and the other Secured Parties’ interests in the Security

37 

 

Collateral and shall not impose any duty upon the Collateral Agent or any other Secured
Party to
exercise any such powers. The Collateral Agent and the other 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 as otherwise provided herein or for their own gross
negligence or willful misconduct.

          7.3
Financing Statements. Pursuant to any applicable law, each Grantor authorizes the
Collateral Agent to file or record financing statements and other filing or recording documents or
instruments with respect to such Grantor’s Security Collateral without the signature of such
Grantor in such form and in such filing offices as the Collateral Agent reasonably determines
appropriate to perfect the security interests of the Collateral Agent under this Agreement. Each
Grantor authorizes the Collateral Agent to use the collateral description “all personal property”
or “all assets” in any such financing statements. The Collateral Agent
agrees to use commercially reasonable efforts to notify the relevant Grantor of any financing
or continuation statement filed by it, provided that any failure to give such notice shall not
affect the validity or effectiveness of any such filing.

          7.4
Authority of Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting
right, request, judgment or other right or remedy provided for herein or resulting or arising out
of this Agreement or any amendment, supplement or other modification of this Agreement shall, as
between the Collateral Agent and the Secured Parties, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among them, but, as
between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively presumed
to be acting as agent for the 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.

          7.5 Right
of Inspection. Upon reasonable written advance notice to any Grantor and as
often as may reasonably be desired, or at any time and from time to time after the occurrence and
during the continuation of an Event of Default, the Collateral Agent shall have reasonable access
during normal business hours to all the books, correspondence and records of such Grantor, and the
Collateral Agent and its representatives may examine the same, and to the extent reasonable take
extracts therefrom and make photocopies thereof, and such Grantor agrees to render to the
Collateral Agent at such Grantor’s reasonable cost and expense, such clerical and other assistance
as may be reasonably requested with regard thereto. The Collateral Agent and its representatives
shall also have the right, upon reasonable advance written notice to such Grantor subject to any
lease restrictions, to enter during normal business hours into and upon any premises owned, leased
or operated by such Grantor where any of such Grantor’s Inventory or Equipment is located for the
purpose of inspecting the same, observing its use or otherwise protecting its interests therein.

38 

 

SECTION 8 NON-LENDER SECURED PARTIES

          8.1 Rights
to Collateral (a)  The Non-Lender Secured Parties shall not have any right whatsoever to do any of the
following: (i) exercise any rights or remedies with respect to the Collateral (such term, as used
in this Section 8, having the meaning assigned to it in the Credit Agreement), including, without
limitation, the right to (A) enforce any Liens or sell or otherwise foreclose on any portion of the
Collateral, (B) request any action, institute any proceedings, exercise any voting rights, give any
instructions, make any election, notice account debtors or make collections with respect to all or
any portion of the Collateral or (C) release any Guarantor under this Agreement or release any
Collateral from the Liens of any Security Document or consent to or otherwise approve any such
release; (ii) demand, accept or obtain any Lien on any Collateral (except for Liens arising under,
and subject to the terms of, this Agreement); (iii) vote in any Bankruptcy Case or similar
proceeding in respect of the Borrower or any of its Subsidiaries (any such proceeding, for
purposes of this clause (a), a “Bankruptcy”) with respect to, or take any other actions
concerning the Collateral; (iv) receive any proceeds from any sale, transfer or other
disposition of any of the Collateral (except in accordance with this Agreement); (v) oppose
any sale, transfer or other disposition of the Collateral; (vi) object to any debtor-in-possession
financing in any Bankruptcy which is provided by one or more Lenders among others (including on a
priming basis under Section 364(d) of the Bankruptcy Code); (vii) object to the use of cash
collateral in respect of the Collateral in any Bankruptcy; or (viii) seek, or object to the Lenders
seeking on an equal and ratable basis, any adequate protection or relief from the automatic stay
with respect to the Collateral in any Bankruptcy.

          (b) Each Non-Lender Secured Party, by its acceptance of
the benefits of this Agreement and the
other Security Documents, agrees that in exercising rights and remedies with respect to the
Collateral, the Collateral Agent and the Lenders, with the consent of the Collateral Agent, may
enforce the provisions of the Security Documents and exercise remedies thereunder and under any
other Loan Documents (or refrain from enforcing rights and exercising remedies), all in such order
and in such manner as they may determine in the exercise of their sole business judgment. Such
exercise and enforcement shall include, without limitation, the rights to collect, sell, dispose of
or otherwise realize upon all or any part of the Collateral, to incur expenses in connection with
such collection, sale, disposition or other realization and to exercise all the rights and remedies
of a secured lender under the Uniform Commercial Code of any applicable jurisdiction. The
Non-Lender Secured Parties by their acceptance of the benefits of this Agreement and the other
Security Documents hereby agree not to contest or otherwise challenge any such collection, sale,
disposition or other realization of or upon all or any of the Collateral. Whether or not a
Bankruptcy Case has been commenced, the Non-Lender Secured Parties shall be deemed to have
consented to any sale or other disposition of any property, business or assets of the Borrower or
any of its Subsidiaries and the release of any or all of the Collateral from the Liens of any
Security Document in connection therewith.

          (c) Notwithstanding any provision of this Section 8.1,
the Non-Lender Secured Parties shall be
entitled to file any necessary responsive or defensive pleadings in opposition to any motion,
claim, adversary proceeding or other pleadings (A) in order to prevent any Person from seeking to
foreclose on the Collateral or supersede the Non-Lender Secured Parties’ claim thereto or (B) in
opposition to any motion, claim, adversary proceeding or other

39 

 

pleading made by any Person
objecting to or otherwise seeking the disallowance of the claims of the Non-Lender Secured Parties.

          (d) Each Non-Lender Secured Party, by its acceptance of
the benefit of this Agreement, agrees
that the Collateral Agent and the Lenders may deal with the Collateral, including any exchange,
taking or release of Collateral, may change or increase the amount of the Borrower Obligations
and/or the Guarantor Obligations, and may release any Guarantor from its Obligations hereunder, all
without any liability or obligation (except as may be otherwise expressly provided herein) to the
Non-Lender Secured Parties.

          8.2
Appointment of Agent. Each Non-Lender Secured Party, by its acceptance of the
benefits of this Agreement and the other Security Documents, shall be deemed irrevocably to make,
constitute and appoint the Collateral Agent, as agent under the Credit Agreement (and all officers,
employees or agents designated by the Collateral Agent) as such Person’s true and lawful agent and
attorney-in-fact, and in such capacity, the Collateral Agent shall have the right, with power of
substitution for the Non-Lender Secured Parties and in each such Person’s name
or otherwise, to effectuate any sale, transfer or other disposition of the Collateral. It is
understood and agreed that the appointment of the Collateral Agent as the agent and
attorney-in-fact of the Non-Lender Secured Parties for the purposes set forth herein is coupled
with an interest and is irrevocable. It is understood and agreed that the Collateral Agent has
appointed the Administrative Agent as its agent for purposes of perfecting certain of the security
interests created hereunder and for otherwise carrying out certain of its obligations hereunder.

          8.3
Waiver of Claims. To the maximum extent permitted by law, each Non-Lender Secured
Party waives any claim it might have against the Collateral Agent or the Lenders with respect to,
or arising out of, any action or failure to act or any error of judgment, negligence, or mistake or
oversight whatsoever on the part of the Collateral Agent or the Lenders or their respective
directors, officers, employees or agents with respect to any exercise of rights or remedies under
the Loan Documents or any transaction relating to the Collateral (including, without limitation,
any such exercise described in Section 8.1(b) above), except for any such action or failure to act
which constitutes willful misconduct or gross negligence of such Person. None of the Collateral
Agent or any Lender or any of their respective directors, officers, 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 the Borrower, any Subsidiary of the Borrower, any Non-Lender Secured Party or any other
Person or to take any other action or forbear from doing so whatsoever with regard to the
Collateral or any part thereof, except for any such action or failure to act which constitutes
willful misconduct or gross negligence of such Person.

SECTION 9 MISCELLANEOUS

          9.1
Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except by a written instrument executed by each
affected Grantor and the Collateral Agent, provided that (a) any provision of this Agreement
imposing obligations on any Grantor may be waived by the Collateral Agent in a written instrument
executed by the Collateral Agent and (b) notwithstanding anything to the contrary in Section 10.1
of the Credit Agreement, no such waiver and no such amendment or

40 

 

modification shall amend, modify
or waive the definition of “Secured Party” or Section 6.5 if such waiver, amendment, or
modification would adversely affect a Secured Party without the written consent of each such
affected Secured Party. For the avoidance of doubt, it is understood and agreed that any
amendment, amendment and restatement, waiver, supplement or other modification of or to the
Intercreditor Agreement that would have the effect, directly or indirectly, through any reference
herein to the Intercreditor Agreement or otherwise, of waiving, amending, supplementing or
otherwise modifying this Agreement, or any term or provision hereof, or any right or obligation of
any Grantor hereunder or in respect hereof, shall not be given such effect except pursuant to a
written instrument executed by each affected Grantor and the Collateral Agent in accordance with
this Section 9.1.

          9.2
Notices. All notices, requests and demands to or upon the Collateral Agent or any
Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1, unless and until such
Guarantor shall change such address by notice to the Collateral Agent and the Administrative
Agent given in accordance with Section 10.2 of the Credit Agreement.

          9.3 No
Waiver by Course of Conduct; Cumulative Remedies. None of the Collateral Agent
or any other Secured Party shall by any act (except by a written instrument pursuant to Section
9.1), 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 Collateral Agent or any other Secured Party, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of
any right, power or privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. A waiver by the Collateral Agent or any other
Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Collateral Agent or such other 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.

          9.4
Enforcement Expenses; Indemnification. (a) Each Guarantor jointly and severally agrees to pay or reimburse each Secured Party
and the
Collateral Agent for all their respective reasonable costs and expenses incurred in collecting
against any Guarantor under the guarantee contained in Section 2 or otherwise enforcing or
preserving any rights under this Agreement against such Guarantor and the other Loan Documents to
which such Guarantor is a party, including, without limitation, the reasonable fees and
disbursements of counsel to the Secured Parties, the Collateral Agent and the Administrative Agent.

          (b) Each Grantor jointly and severally agrees to pay, and to
save the Collateral Agent, the
Administrative Agent and the other Secured Parties harmless from, (x) any and all liabilities with
respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other
similar taxes which may be payable or determined to be payable with respect to any of the Security
Collateral or in connection with any of the transactions contemplated by this Agreement and (y) any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect

41 

 

to the execution, delivery,
enforcement, performance and administration of this Agreement (collectively, the “indemnified
liabilities”), in each case to the extent the Borrower would be required to do so pursuant to
Section 10.5 of the Credit Agreement, and in any event excluding any taxes or other indemnified
liabilities arising from gross negligence or willful misconduct of the Collateral Agent, the
Administrative Agent or any other Secured Party.

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

          9.5
Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the Grantors, the Collateral Agent and the Secured Parties and their respective
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
Collateral Agent.

          9.6
Set-Off. Each Guarantor hereby irrevocably authorizes each of the Administrative
Agent and the Collateral Agent and each other Secured Party at any time and from time to time
without notice to such Guarantor, any other Guarantor or the Borrower, any such notice being
expressly waived by each Guarantor and by the Borrower, to the extent permitted by applicable law,
upon the occurrence and during the continuance of an Event of Default under Section 8.1(f) of the
Credit Agreement with respect to any Guarantor so long as any amount remains unpaid after it
becomes due and payable by such Guarantor hereunder, to set-off and appropriate and apply against
any such amount any and all deposits (general or special, time or demand, provisional or final)
(other than the Collateral Proceeds Account), 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 Collateral Agent, the Administrative Agent
or such other Secured Party to or for the credit or the account of such Guarantor, or any part
thereof in such amounts as the Collateral Agent, the Administrative Agent or such other Secured
Party may elect. The Collateral Agent, the Administrative Agent and each other Secured Party shall
notify such Guarantor promptly of any such set-off and the application made by the Collateral
Agent, the Administrative Agent or such other Secured Party of the proceeds thereof; provided that
the failure to give such notice shall not affect the validity of such set-off and application. The
rights of the Collateral Agent, the Administrative Agent and each other Secured Party under this
Section 9.6 are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Collateral Agent, the Administrative Agent or such other Secured Party
may have.

          9.7
Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

          9.8
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; provided that, with respect to any Pledged

42 

 

Stock issued by a Foreign Subsidiary, all rights, powers and remedies provided in this
Agreement
may be exercised only to the extent that they do not violate any provision of any law, rule or
regulation of any Governmental Authority applicable to any such Pledged Stock or affecting the
legality, validity or enforceability of any of the provisions of this Agreement against the Pledgor
(such laws, rules or regulations, “Applicable Law”) and are intended to be limited to the
extent necessary so that they will not render this Agreement invalid, unenforceable or not entitled
to be recorded, registered or filed under the provisions of any Applicable Law.

          9.9
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.

          9.10
Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Grantors, the Collateral Agent, the Administrative Agent and the other Secured
Parties with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Grantors, the Collateral Agent, the Administrative Agent or
any other Secured Party relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents.

          9.11
GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          9.12
Submission to Jurisdiction; Waivers. Each party hereto 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 party at its address referred to in Section 9.2 or at such other address of which
the Collateral Agent and the Administrative Agent (in the case of any other party hereto) or the
Borrower (in the case of the Collateral Agent and 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

43 

 

          (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 punitive damages.

          9.13
Acknowledgments. Each Guarantor 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) none
of the Collateral Agent, the Administrative Agent or any other Secured Party has any
fiduciary relationship with or duty to any Guarantor arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between the Guarantors, on the
one hand, and the Collateral Agent, the Administrative Agent and the other Secured Parties, on the
other hand, in connection herewith or therewith is solely that of debtor and creditor; and

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

          9.14
WAIVER OF JURY TRIAL. EACH PARTY HERETO 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.

          9.15
Additional Grantors. Each new 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 substantially in the form of Annex 1 hereto. Each existing Grantor that is
required to become a Pledgor with respect to Capital Stock of any new Subsidiary of the Borrower
pursuant to Section 6.9 of the Credit Agreement shall become a Pledgor with respect thereto upon
execution and delivery by such Grantor of a Supplemental Agreement substantially in the form of
Annex 2 hereto.

          9.16
Releases. (a) At such time as the Loans and the other Obligations (other than any Obligations owing
to a Non-Lender Secured Party in respect of the provision of cash management services) then due and
owing shall have been paid in full, all Security 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 Collateral 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
Security Collateral shall revert to the Grantors. At the request and sole expense of any Grantor
following any such termination, the Collateral Agent shall deliver to such Grantor any Security
Collateral held by the Collateral Agent hereunder, and the Collateral Agent and the Administrative
Agent shall execute and deliver to such Grantor such documents (including without limitation UCC
termination statements) as such Grantor shall reasonably request to evidence such termination.

44 

 

          (b) In
connection with any sale or other disposition of Security Collateral permitted by the
Credit Agreement (other than any sale or disposition to another Grantor), the Lien pursuant to this
Agreement on such sold or disposed of Security Collateral shall be automatically released. In
connection with the sale or other disposition of all of the Capital Stock of any Guarantor (other
than to the Borrower or a Subsidiary of the Borrower) or the sale or other disposition of Security
Collateral (other than a sale or disposition to another Grantor) permitted under the Credit
Agreement, the Collateral Agent shall, upon receipt from the
Borrower of a written request for the release of such Guarantor from its Guarantee or the
release of the Security Collateral subject to such sale or other disposition, identifying such
Guarantor or the relevant Security Collateral 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, deliver to the Borrower or the relevant Grantor any of the
relevant Security Collateral held by the Collateral Agent hereunder and the Collateral Agent and
the Administrative Agent shall execute and deliver to the relevant Grantor (at the sole cost and
expense of such Grantor) all releases or other documents (including without limitation UCC
termination statements) necessary or reasonably desirable for the release of such Guarantee or the
Liens created hereby on such Security Collateral, as applicable, as such Grantor may reasonably
request.

          9.17
Judgment. (a) If for the purpose of obtaining judgment in any court it is
necessary to convert a sum due hereunder in one currency into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Collateral Agent could purchase
the first currency with such other currency on the Business Day preceding the day on which final
judgment is given.

          (b) The
obligations of any Guarantor in respect of this Agreement to the Collateral Agent, for
the benefit of each holder of Secured Obligations, shall, notwithstanding any judgment in a
currency (the “judgment currency”) other than the currency in which the sum originally due
to such holder is denominated (the “original currency”), be discharged only to the extent
that on the Business Day following receipt by the Collateral Agent of any sum adjudged to be so due
in the judgment currency, the Collateral Agent may in accordance with normal banking procedures
purchase the original currency with the judgment currency; if the amount of the original currency
so purchased is less than the sum originally due to such holder in the original currency, such
Guarantor agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the
Collateral Agent for the benefit of such holder, against such loss, and if the amount of the
original currency so purchased exceeds the sum originally due to the Collateral Agent, the
Collateral Agent agrees to remit to the Borrower, such excess. This covenant shall survive the
termination of this Agreement and payment of the Obligations and all other amounts payable
hereunder.

45 

 

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

	 	 	 	 	 	 	 
	BORROWER:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NCI BUILDING SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd R. Moore
 

	 	 
	 	 	Name: Todd R. Moore	 	 
	 	 	Title: EVP and General Counsel	 	 
	 
	 	 	 	 	 	 
	GUARANTORS:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NCI GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd R. Moore
 

	 	 
	 	 	Name: Todd R. Moore	 	 
	 	 	Title: EVP and General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	ROBERTSON-CECO II CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd R. Moore
 

	 	 
	 	 	Name: Todd R. Moore	 	 
	 	 	Title: EVP and General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	STEELBUILDING.COM, INC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd R. Moore
 

	 	 
	 	 	Name: Todd R. Moore	 	 
	 	 	Title: EVP and General Counsel	 	 

	 	 	 	 	 
	Acknowledged and Agreed to as of

the date hereof by:	 	 
	 
	 	 	 	 
	WACHOVIA BANK,
NATIONAL ASSOCIATION, as 

Administrative Agent and Collateral Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jacob Petkovich
 

	 	 
	Name: Jacob Petkovich	 	 
	Title: Director	 	 

46 

 

Annex 1 to

Guarantee and Collateral Agreement

ASSUMPTION AGREEMENT

          ASSUMPTION AGREEMENT, dated as of                      ___, ___, made by                     
                    , a                      corporation (the “Additional Grantor”), in favor of Wachovia Bank, National
Association, as collateral agent and administrative agent (in such capacity, the “Collateral
Agent”) for the banks and other financial institutions (the “Lenders”) from time to
time parties to the Credit Agreement referred to below and the other Secured Parties (as defined
below). All capitalized terms not defined herein shall have the meaning ascribed to them in such
the Guarantee and Collateral Agreement referred to below, or if not defined therein, in the Credit
Agreement.

W
I

T
 N
 E
 S
 S
 E
 T
 H:

          WHEREAS, NCI Building Systems, Inc. (the “Borrower”), Wachovia Bank, National
Association, as administrative agent and collateral agent and the Lenders are parties to an Amended
and Restated Credit Agreement, dated as of [                    ] (as amended, supplemented, waived or
otherwise modified from time to time, the “Credit Agreement”);

          WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Subsidiaries
are, or are to become, parties to the Guarantee and Collateral Agreement, dated as of
[                    ] (as amended, supplemented, waived or otherwise modified from time to time, the
“Guarantee and Collateral Agreement”), in favor of the Collateral Agent, for the benefit of
the Secured Parties (as defined in the Guarantee and Collateral Agreement);

          WHEREAS, the Additional Grantor is a member of an affiliated group of companies that includes
the Borrower and each other Grantor; the proceeds of the extensions of credit under the Credit
Agreement will be used in part to enable the Borrower to make valuable transfers to one or more of
the other Grantors (including the Additional Grantor) in connection with the operation of their
respective businesses; and the Borrower and the other Grantors (including the Additional Grantor)
are engaged in related businesses, and each such Grantor (including the Additional Grantor) will
derive substantial direct and indirect benefit from the making of the extensions of credit under
the Credit Agreement;

          WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

          WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Guarantee and Collateral Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Guarantee and Collateral Agreement. By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 9.15 of the Guarantee and Collateral
Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor thereunder
with the same force and effect as if originally named therein as a Guarantor [, Grantor and Pledgor] [and Grantor] [and Pledgor]1
and, without limiting the generality of the

 

			
	1	 	Indicate the capacities in which the Additional Grantor is becoming a Grantor.

 

 

foregoing, hereby expressly assumes all obligations and liabilities of a
Guarantor [, Grantor and Pledgor] [and Grantor] [and Pledgor]2 thereunder. The
information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules
[                    ] to the Guarantee and Collateral Agreement, and such Schedules are hereby amended and
modified to include such information. The Additional Grantor hereby represents and warrants that
each of the representations and warranties of such Additional Grantor, in its capacities as a
Guarantor [, Grantor and Pledgor] [and Grantor] [and Pledgor],3 contained in Section 4
of the Guarantee and Collateral Agreement is true and correct in all material respects on and as
the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such
date.

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

 

			
	2	 	Indicate the capacities in which the Additional Grantor
is becoming a Grantor.
	 
	3	 	Indicate the capacities in which the Additional Grantor
is becoming a Grantor.

 

 

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

	 	 	 	 	 
	 

	 	 	 	[ADDITIONAL GRANTOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Acknowledged and Agreed to as

of the date hereof by:

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Collateral Agent and Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Annex 1-A to

Assumption Agreement

SUPPLEMENTAL AGREEMENT

          SUPPLEMENTAL AGREEMENT, dated as of                      ___, ___, made by                     , a
                     corporation (the “Additional Pledgor”), in favor of Wachovia Bank, National
Association, as collateral agent and administrative agent (in such capacity, the “Collateral
Agent”) for the banks and other financial institutions (the “Lenders”) from time to
time parties to the Credit Agreement referred to below and the other Secured Parties (as defined
below). All capitalized terms not defined herein shall have the meaning ascribed to them in the
Guarantee and Collateral Agreement referred to below, or if not defined therein, in the Credit
Agreement.

W
I

T
 N
 E
 S
 S
 E
 T
 H:

          WHEREAS, NCI Building Systems, Inc. (the “Borrower”), Wachovia Bank, National
Association, as administrative agent and collateral agent and the Lenders are parties to an Amended
and Restated Credit Agreement, dated as of [                    ] (as amended, supplemented, waived or
otherwise modified from time to time, the “Credit Agreement”);

          WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Subsidiaries
are, or are to become, parties to the Guarantee and Collateral Agreement, dated as of [                    ]
(as amended, supplemented, waived or otherwise modified from time to time, the “Guarantee and
Collateral Agreement”), in favor of the Collateral Agent, for the benefit of the Secured
Parties (as defined in the Guarantee and Collateral Agreement);

          WHEREAS, the Credit Agreement requires the Additional Pledgor to become a Pledgor under the
Guarantee and Collateral Agreement with respect to Capital Stock of certain new Subsidiaries of the
Borrower; and

          WHEREAS, the Additional Pledgor has agreed to execute and deliver this Supplemental Agreement
in order to become such a Pledgor under the Guarantee and Collateral Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Guarantee and Collateral Agreement. By executing and delivering this Supplemental
Agreement, the Additional Pledgor, as provided in Section 9.15 of the Guarantee and Collateral
Agreement, hereby becomes a Pledgor under the Guarantee and Collateral Agreement with respect to
the shares of Capital Stock of the Subsidiary of the Borrower listed in Annex 1-A hereto, as a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the
information set forth in Schedule 2 to the Guarantee and Collateral Agreement, and such Schedule 2
is hereby amended and modified to include such information.

          2. GOVERNING LAW. THIS SUPPLEMENTAL AGREEMENT AND RIGHTS AND OBLIGATIONS OF THE
PARTIES HERUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

 

 

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

	 	 	 	 	 
	 

	 	 	 	[ADDITIONAL PLEDGOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Acknowledged and Agreed to as

of the date hereof by:

WACHOVIA BANK, NATIONAL ASSOCIATION

as Collateral Agent and Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]