Document:

exv4w9

Exhibit 4.9

 

 

SECOND LIEN COLLATERAL AGREEMENT

made by

CLEARWIRE COMMUNICATIONS LLC

and certain of its Subsidiaries

in favor of

Wilmington Trust FSB,

as Second-Priority Collateral Agent

Dated as of December 9, 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINED TERMS
	 	 	2	 
	 
	 	 	 	 
	1.1. Definitions
	 	 	2	 
	1.2. Other Definitional Provisions
	 	 	7	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY INTEREST
	 	 	7	 
	 
	 	 	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	 
	 	 	 	 
	3.1. Title; No Other Liens
	 	 	9	 
	3.2. Perfected First Priority Liens
	 	 	9	 
	3.3. Jurisdiction of Organization; Chief Executive Office
	 	 	9	 
	3.4. Investment Property
	 	 	10	 
	3.5. Intellectual Property
	 	 	10	 
	 
	 	 	 	 
	SECTION 4. COVENANTS
	 	 	10	 
	 
	 	 	 	 
	4.1. Covenants in Second-Priority Indenture
	 	 	10	 
	4.2. Maintenance of Insurance
	 	 	10	 
	4.3. Maintenance of Perfected Security Interest; Further Documentation
	 	 	11	 
	4.4. Changes in Name, etc.
	 	 	11	 
	4.5. Notices
	 	 	12	 
	4.6. Investment Property
	 	 	12	 
	4.7. Intellectual Property
	 	 	14	 
	 
	 	 	 	 
	SECTION 5. REMEDIAL PROVISIONS
	 	 	15	 
	 
	 	 	 	 
	5.1. Communications with Obligors; Grantors Remain Liable
	 	 	15	 
	5.2. Pledged Stock
	 	 	16	 
	5.3. Proceeds To Be Turned Over to Second-Priority Collateral Agent
	 	 	17	 
	5.4. Application of Proceeds
	 	 	17	 
	5.5. Applicable Authorized Representative and Exercise of Remedies
	 	 	18	 
	5.6. Code and Other Remedies
	 	 	18	 
	5.7. Registration Rights
	 	 	19	 
	5.8. Deficiency
	 	 	20	 
	 
	 	 	 	 
	SECTION 6. THE COLLATERAL AGENT
	 	 	21	 
	 
	 	 	 	 
	6.1. Second-Priority Collateral Agent’s Appointment as Attorney-in-Fact, etc.
	 	 	21	 
	6.2. Duty of Second-Priority Collateral Agent
	 	 	22	 
	6.3. Execution of Financing Statements
	 	 	24	 
	6.4. Authority of Second-Priority Collateral Agent
	 	 	24	 

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	 	 	Page	 
	6.5. Protections of Second-Priority Collateral Agent
	 	 	24	 
	 
	 	 	 	 
	SECTION 7. MISCELLANEOUS
	 	 	26	 
	 
	 	 	 	 
	7.1. Amendments in Writing
	 	 	26	 
	7.2. Notices
	 	 	26	 
	7.3. No Waiver by Course of Conduct; Cumulative Remedies
	 	 	26	 
	7.4. Waivers
	 	 	27	 
	7.5. Enforcement Expenses; Indemnification
	 	 	27	 
	7.6. FCC Compliance
	 	 	28	 
	7.7. Successors and Assigns
	 	 	29	 
	7.8. Set-Off
	 	 	29	 
	7.9. Counterparts
	 	 	30	 
	7.10. Severability
	 	 	30	 
	7.11. Section Headings
	 	 	30	 
	7.12. Integration
	 	 	30	 
	7.13. GOVERNING LAW
	 	 	30	 
	7.14. Submission To Jurisdiction; Waivers
	 	 	31	 
	7.15. Acknowledgements
	 	 	31	 
	7.16. Additional Grantors
	 	 	32	 
	7.17. Releases
	 	 	32	 
	7.18. WAIVER OF JURY TRIAL
	 	 	32	 
	7.19. Permitted Additional Junior Lien Obligations
	 	 	32	 

	 	 	 

	SCHEDULES
	 	 
	 
	 	 
	Schedule l

	 	Notice Addresses
	Schedule 2

	 	Pledged Stock
	Schedule 3

	 	Perfection Matters
	Schedule 4

	 	Jurisdictions of Organization and Chief Executive Offices
	Schedule 5

	 	Intellectual Property
	 
	 	 
	ANNEXES
	 	 
	 
	 	 
	Annex I

	 	Assumption Agreement
	Annex II

	 	Other Pari Passu Lien Secured Party Consent

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          SECOND LIEN COLLATERAL AGREEMENT, dated as of December 9, 2010, among CLEARWIRE
COMMUNICATIONS LLC (the “Company”), CLEARWIRE FINANCE, INC. (“Finance Co” and
together with the Company, the “Issuers”), all of the other Subsidiaries of the Issuers
listed on Annex A hereto or that become a party hereto pursuant to Section 7.16 hereof (each such
subsidiary being a “Guarantor” and, the Guarantors, Finance Co and the Company are referred
to collectively as the “Grantors”), and Wilmington Trust FSB, as collateral agent (the
“Second-Priority Collateral Agent”), pursuant to an indenture, dated as of December 9, 2010
(as amended, supplemented or otherwise modified from time to time, the “Second-Priority
Indenture”) among the Issuers, each Guarantor, and Wilmington Trust FSB, as trustee (the
“Second-Priority Trustee”) on behalf of the holders of the Second-Priority Notes (as
defined below) (the “Holders”). Capitalized terms used but not defined herein shall have
the meanings assigned to them in the Second-Priority Indenture, unless the context otherwise
requires.

W I T N E S S E T H:

          WHEREAS, pursuant to the Second-Priority Indenture, the Company has issued, or will issue $500
million principal amount of 12% second-priority secured notes due 2017 (together with the Rollover
Second-Priority Notes and any Additional Second-Priority Notes issued pursuant to the
Second-Priority Indenture, the “Second-Priority Notes”) upon the terms and subject to the
conditions set forth therein;

          WHEREAS, pursuant to the Second-Priority Indenture each Guarantor party thereto has
unconditionally and irrevocably guaranteed, as primary obligor and not merely as surety, to the
Second-Priority Trustee, for the benefit of the Secured Parties, the prompt and complete payment
and performance when due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations;

          WHEREAS, the Second-Priority Trustee has been appointed to serve as Second-Priority Collateral
Agent under the Second-Priority Indenture and, in such capacity, to enter into this Agreement;

          WHEREAS, following the date hereof, if not prohibited by the Second-Priority Indenture, the
Grantors may incur Permitted Additional Junior Lien Obligations which are secured equally and
ratably with the Grantors’ obligations in respect of the Second-Priority Notes in accordance with
Section 7.19 of this Agreement;

          WHEREAS, each Grantor will derive substantial direct and indirect benefits from the execution,
delivery and performance of the obligations under the Second-Priority Indenture, the
Second-Priority Notes and any Permitted Additional Junior Lien Obligations and each is, therefore,
willing to enter into this Agreement;

          WHEREAS, this Agreement is made by the Grantors in favor of the Second-Priority Collateral
Agent for the benefit of the Secured Parties to secure the payment and performance in full when due
of the Obligations;

          WHEREAS, each Grantor is a Domestic Subsidiary of the Company; and

 

 

          NOW, THEREFORE, in consideration of the premises and to induce the Second-Priority Collateral
Agent to enter into the Second-Priority Indenture and induce the Holders to purchase the
Second-Priority Notes, each of the Grantors hereby agree with the Second-Priority 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 Second-Priority Indenture and used
herein shall have the meanings given to them in the Second-Priority Indenture, and the following
terms are used herein as defined in the New York UCC: Accounts, Certificated Security, Chattel
Paper, Documents, Equipment, Farm Products, General Intangibles, Goods, Instruments, Inventory,
Letter-of-Credit Rights, Payment Intangibles and Supporting Obligations.

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

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

     “Applicable Authorized Representative”: the collateral agent (or other
authorized representative) representing the series of Indebtedness secured hereby with the
greatest outstanding aggregate principal amount, it being understood that all
Second-Priority Notes issued under the Second-Priority Indenture shall be considered a
single series of Indebtedness.

     “Authorized Representative”: any duly authorized representative of any holder
of Permitted Additional Junior Lien Obligations under any Other Pari Passu Lien Agreement
designated as “Authorized Representative” for such holder in an Other Pari Passu Lien
Secured Party Consent delivered to the Second-Priority Collateral Agent.

     “Collateral”: as defined in Section 2.2.

     “Collateral Account”: any collateral account established by the
Second-Priority Collateral Agent as provided in Section 5.3.

     “Copyrights”: (i) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all
applications in connection therewith, including, without limitation, all registrations,
recordings and applications in the United States Copyright Office listed in Schedule 5, and
(ii) the right to obtain all renewals thereof.

     “Copyright Licenses”: any written agreement naming any Grantor as licensor or
licensee (including, without limitation, those agreements listed in Schedule 5),
granting

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any right under any Copyright, including, without limitation, the grant of rights
to distribute and reproduce materials derived from any Copyright.

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

     “Discharge of Obligations”: shall mean both (i) in the case of the
Second-Priority Indenture, the discharge or defeasance of the Second-Priority Indenture in
accordance with Sections 401, 1302 and 1303 thereof and (ii) in the case of each Other Pari
Passu Lien Agreement, the repayment of the Permitted Additional Junior Lien Obligations
under such agreement or such other event which entitles the Grantors to obtain a release of
the Liens securing such Permitted Additional Junior Lien Obligations under the
Second-Priority Security Documents.

     “Excluded Assets”: (A) any application for registration of a Trademark filed
in the United States Patent and Trademark Office on an intent-to-use basis to the extent
that the grant of a security interest in any such Trademark application would adversely
affect the validity or enforceability or result in cancellation of such Trademark
application, provided, however, that such Trademark applications shall be considered
Collateral upon the filing of a Statement of Use or an Amendment to Allege Use has been
filed and accepted in the United States Patent and Trademark Office, (B) real property
(other than any goods that are fixtures), (C) any contract, Copyright License, Patent
License or Trademark License, in each case to the extent the grant by the relevant Grantor
of a security interest pursuant to this Agreement in such Grantor’s right, title and
interest in such property (i) is prohibited by any contract, agreement, instrument,
indenture existing on the Issue Date (or in the case of assets acquired after the Issue
Date, existing at the time of acquisition to the extent such prohibition was not imposed in
contemplation of such acquisition) or Requirement of Law of any Governmental Authority
governing such property, (ii) would give any other party to such contract, agreement,
instrument or indenture the right to terminate its obligations thereunder, or (iii) is
permitted only with the consent of another party (including, without limitation, consent of
any Governmental Authority), if such consent has not been obtained; (D) any FCC Licenses or
Spectrum Leases to the extent the grant by the relevant Grantor of a security interest
therein pursuant to this Agreement is prohibited by the Communications Act of 1934, as
amended, and the rules, regulations, and policies promulgated thereunder by the Federal
Communications Commission, including (a) restrictions on granting security interests in FCC
License Rights, as discussed more fully in Section 7.6, and (b) requirement of the prior
approval of the FCC, as discussed more fully in Section 7.6; provided, that none of the
following property shall be Excluded Assets: (1) any Receivable or any money or other
amounts due or to become due under any such contract, agreement, instrument or indenture set
out in the foregoing clauses (C) (i) through (iii) and (D) and (2) in the case of the
exclusions set forth in clause (D), any rights incident or appurtenant to the FCC Licenses
and Spectrum Leases, any proceeds of FCC Licenses or Spectrum Leases, and the right to
receive all monies, consideration and proceeds derived from or in connection with the sale,
assignment, transfer, or other disposition of the FCC Licenses or Spectrum Leases, and the
right to

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exercise rights and actions against the lessor, licensor or other party to the
Spectrum Lease; (E) property subject to Liens existing on the Issue Date (after giving
effect to the issuance of Second-Priority Notes and the use of proceeds therefrom as
described in the offering memorandum dated December 2, 2010 and other than Liens securing
the Obligations under the Second-Priority Indenture and the Existing Secured Second-Priority
Notes and the First-Priority Second-Priority Notes) or Liens permitted under clause (6) of
the definition of “Permitted Liens” in the Second-Priority Indenture, in each case to the
extent any agreement governing such Lien, purchase money Liens or Capital Lease Obligations
with respect to such property contains a negative pledge clause that prohibits a grant by
the relevant Grantor of a security interest for the benefit of the Secured Parties pursuant
to this Agreement in such Grantor’s right, title and interest in such property;
(F) Vehicles; (G) Capital Stock and assets of Unrestricted Subsidiaries and of any Foreign
Subsidiaries, (H) Capital Stock of joint ventures if the pledge of such stock would cause a
breach or default or require a consent that has not been obtained, in each case under the
terms of any agreement as in effect on the Issue Date (or in the case of joint ventures
entered into after the Issue Date, in effect at the time of Investment in such joint venture
to the extent the relevant prohibition was not imposed in contemplation of avoiding the
Liens in favor of noteholders) of such joint venture and (J) cash provided by any Federal
Grant Program and any assets (other than Spectrum Assets) acquired solely with such cash, in
each case to the extent such funds and assets are prohibited from being pledged or otherwise
encumbered pursuant to the rules and regulations of such Federal Grant Program.

     “Final Date” shall mean the date upon which there has been a Discharge of
Obligations with respect to the Second-Priority Indenture and each Other Pari Passu Lien
Agreement.

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

     “Governmental Authority”: any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative functions of government, any securities exchange and any
self-regulatory organization (including the National Association of Insurance
Commissioners).

     “Intellectual Property”: the collective reference to all rights, priorities
and privileges relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, without limitation, the Copyrights,
the Patents, and the Trademarks, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all proceeds and
damages therefrom.

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

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     “Material Adverse Effect”: a material adverse effect on (a) the business,
properties, operations or condition (financial or otherwise) of the Company and its
Subsidiaries taken as a whole, (b) the validity or enforceability of this Agreement or any
of the other material Second-Priority Note Document or the material rights or remedies of
the Second-Priority Collateral Agent or the Secured Parties hereunder or thereunder or (c)
the ability of the Grantors, taken as a whole, to perform the obligations under the
Second-Priority Note Documents.

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

     “Second-Priority Notes Obligations” shall mean the collective reference to (i)
all obligations, liabilities and indebtedness (including, without limitation, principal,
premium, interest (including, without limitation, all interest that accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of any Grantor at the rate provided for in the
respective documentation, whether or not such claim for post-petition interest is allowed in
any such proceeding)) owing to the Second-Priority Collateral Agent, the Second-Priority
Trustee and the Holders under the Second-Priority Notes, the Second-Priority Indenture and
the other Second-Priority Note Documents and the due performance and compliance by the
Grantors with all of the terms, conditions and agreements contained in the Second-Priority
Notes, the Second-Priority Indenture and the other Second-Priority Note Documents; (ii) any
and all sums advanced by the Second-Priority Collateral Agent at its sole discretion in
accordance with the Second-Priority Indenture or any of the other Second-Priority Note
Documents in order to preserve the Collateral or preserve its security interest in the
Collateral; (iii) in the event of any proceedings for the collection or enforcement of any
indebtedness, obligations, or liabilities of the Grantors referred to in clause (i) above,
the reasonable expenses of retaking, holding, preparing for sale or lease, selling or
otherwise disposing of or realizing on the Collateral, or of any exercise by the
Second-Priority Collateral Agent of its rights hereunder, together with reasonable
attorneys’ fees and court costs.

     “Obligations”: the collective reference to the Second-Priority Notes
Obligations and the Permitted Additional Junior Lien Obligations.

     “Other Pari Passu Lien Agreement”: shall mean any indenture, credit agreement
or other agreement, if any, pursuant to which any Grantor has or will incur Permitted
Additional Junior Lien Obligations; provided that, in each case, the Indebtedness
thereunder has been designated as Permitted Additional Junior Lien Obligations pursuant to
and in accordance with Section 7.19.

     “Other Pari Passu Lien Secured Party Consent” shall mean a consent in the form
of Annex II to this Agreement executed by the Authorized Representative of any holders of
Permitted Additional Junior Lien Obligations pursuant to Section 7.19.

     “Patents”: (i) all letters patent of the United States, any other country or
any political subdivision thereof, and all reissues and extensions thereof, including,
without

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limitation, any letters patent of the United States listed in Schedule 5,
(ii) all applications for letters patent of the United States or any other country and all
divisions, continuations and continuations-in-part thereof, including, without limitation,
any applications for letters patent of the United States listed in Schedule 5, and
(iii) all rights to obtain any reissues or extensions of the foregoing.

     “Patent License”: all written agreements providing for the grant by or to any
Grantor of any right to manufacture, use or sell any invention covered in whole or in part
by a Patent, including, without limitation, any of the foregoing referred to in Schedule
5.

     “Pledged Stock”: the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the Capital Stock of any Person (other than Excluded Assets) that
may be issued or granted to, or held by, any Grantor while this Agreement is in effect;
provided that Pledged Stock shall not include the Capital Stock of (i) Unrestricted
subsidiaries, (ii) any Foreign Subsidiary, (iii) Finance Co and (iv) joint ventures if the
pledge of such Capital Stock would cause a breach or default or require a consent that has
not been obtained, in each case under the terms of any agreement as in effect on the Issue
Date (or in the case of joint ventures entered into after the Issue Date, in effect at the
time of Investment in such joint venture to the extent the relevant prohibition was not
imposed in contemplation of avoiding the Liens in favor of the Holders of Second-Priority
Notes) of such joint venture.

     “Pledged Stock Issuers”: the collective reference to each issuer of any
Pledged Stock.

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

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

     “Required Secured Parties” shall mean the holders of a majority in an aggregate
outstanding principal amount of (i) the Second-Priority Notes, subject in all cases to
Section 902 of the Second-Priority Indenture, and (ii) any Indebtedness constituting
Permitted Additional Junior Lien Obligations, in each case, excluding for all purposes of
this definition any holder of such debt whose vote is required to be disregarded under the
Second-Priority Indenture or the applicable Other Pari Passu Lien Agreement.

     “Secured Parties”: shall mean (i) the Holders; (ii) the Second-Priority
Trustee, (iii) the Second-Priority Collateral Agent, (iv) the holders of any Permitted
Additional Junior Lien Obligation, (v) any Authorized Representative; (vi) the beneficiaries
of each indemnification obligation undertaken by the Issuers or the Guarantors under any

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Second-Priority Note Document and (vii) any successors, indorsees, transferees and assigns
of each of the foregoing.

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

     “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and all goodwill associated therewith, all registrations and
recordings thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country or any political subdivision thereof, or otherwise,
and all common-law rights related thereto, including, without limitation, any registrations
and applications in respect of the foregoing in the United States Patent and Trademark
Office listed in Schedule 5, and (ii) the right to obtain all renewals thereof.

     “Trademark License”: any written agreement providing for the grant by or to
any Grantor of any right to use any Trademark, including, without limitation, any of the
foregoing agreements listed in Schedule 5.

     “Vehicles”: all cars, trucks, trailers, construction and earth moving
equipment and other vehicles covered by a certificate of title law of any state and, in any
event including, without limitation, 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 and Schedule references are to this Agreement unless otherwise
specified.

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

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

          SECTION 2. GRANT OF SECURITY INTEREST

          Each Grantor hereby assigns and transfers to the Second-Priority Collateral Agent, and hereby
grants to the Second-Priority Collateral Agent, for the benefit of the Secured Parties, a security
interest in, all of such Grantor’s right, title and interest in the following property now owned or
at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in
the future may acquire any right, title or interest (collectively, the “Collateral”), as
collateral security for the prompt and complete payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

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          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Deposit Accounts;

          (d) all Documents;

          (e) all Equipment;

          (f) all General Intangibles;

          (g) all Instruments;

          (h) all Intellectual Property;

          (i) all Inventory;

          (j) all Investment Property;

          (k) all Letter-of-Credit Rights;

          (l) all Goods;

          (m) all FCC License Rights;

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

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

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

          Notwithstanding anything herein to the contrary, no Grantor shall be required to take any
actions to perfect the security interest in any Collateral granted hereunder, other than (i) the
filings of the financing statements (but not “fixture filings,” as such term is defined in the UCC)
in the jurisdiction of organization of such Grantor and (ii) filings with the United States Patent
and Trademark Office and United States Copyright Office.

          The lien and security interest in the Collateral granted to the Second-Priority Collateral
Agent for the benefit of the Secured Parties pursuant to this Agreement and the exercise of any
right or remedy by the Second-Priority Collateral Agent hereunder with respect to the Collateral is
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.

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          SECTION 3. REPRESENTATIONS AND WARRANTIES

          To induce the Second-Priority Collateral Agent to enter into the Second-Priority Indenture and
to induce the Holders to purchase the Second-Priority Notes, each Grantor hereby represents and
warrants to the Second-Priority Collateral Agent and each Secured Party that:

          3.1. Title; No Other Liens. Except for the security interest granted to the
Second-Priority Collateral Agent for the benefit of the Secured Parties pursuant to this Agreement
and the other Liens permitted to exist on the Collateral by the Second-Priority Indenture and each
Other Pari Passu Lien Agreement, such Grantor owns each item of the Collateral free and clear of
any and all Liens or claims of others. For the avoidance of doubt, it is understood and agreed
that any Grantor may, as part of its business, grant licenses to third parties to use Intellectual
Property owned, in-licensed or developed by a Grantor to the extent permitted by the
Second-Priority Indenture. For purposes of this Agreement and the other Second-Priority Note
Documents, any licenses resulting from such licensing activity, and any existing licenses granted
in the ordinary course, shall not constitute a “Lien” on such Intellectual Property. Each of the
Second-Priority Collateral Agent and each other Secured Party understands that any such licenses
may be exclusive to the applicable licensees, and such exclusivity provisions may limit the ability
of the Second-Priority Collateral Agent to utilize, sell, lease, license, assign or transfer the
related Intellectual Property or otherwise realize value from such Intellectual Property pursuant
hereto.

          3.2. Perfected Second Priority Liens. The security interests granted pursuant to this
Agreement (a) upon completion of the filings and other actions specified on Schedule 3
(which, in the case of all filings and other documents referred to on said Schedule, have been
delivered to the Second-Priority Collateral Agent in completed and duly executed form) within the
time periods prescribed under applicable law, will constitute valid perfected security interests
(to the extent such matter is governed by laws of the United States or a jurisdiction therein) in
all of the Collateral (to the extent that a security interest therein may be perfected by the
filing of Uniform Commercial Code financing statements and such other filings specified on
Schedule 3) in favor of the Second-Priority Collateral Agent, for the benefit of the
Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase
any Collateral from such Grantor and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except to the extent otherwise permitted by the Second-Priority
Indenture and each Other Pari Passu Lien Agreement; except that additional filings may be
required to grant a valid perfected second priority security interest in any Intellectual Property
acquired after the date hereof.

          3.3. Jurisdiction of Organization; Chief Executive Office. On the date hereof, such
Grantor’s jurisdiction of organization, identification number from the jurisdiction of organization
(if any), and the location of such Grantor’s chief executive office or sole place of business or
principal residence, as the case may be, are specified on Schedule 4. Such Grantor has
furnished to the Second-Priority Collateral Agent a certified charter, certificate of incorporation
or other organization document and long-form good standing certificate as of a date which is recent
to the date hereof.

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          3.4. Investment Property.

          (a) The shares of Pledged Stock pledged by such Grantor hereunder constitute all the issued
and outstanding shares of all classes of the Capital Stock of each Pledged Stock Issuer owned by
such Grantor and such shares are uncertificated.

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

          (c) Such Grantor is the record and beneficial owner of, and has good and marketable title to,
the Investment Property pledged by it hereunder, free of any and all Liens or options in favor of,
or claims of, any other Person, except the security interest created by this Agreement and the
other Lien permitted to exist on the Collateral by the Second-Priority Indenture and each other
Pari Passu Lien Agreement.

          3.5. Intellectual Property.

          (a) Schedule 5 lists all issuances, registrations and applications in respect of
Intellectual Property owned by such Grantor in its own name on the date hereof.

          (b) On the date hereof, all Intellectual Property owned by such Grantor listed on Schedule
5 (i) is subsisting, unexpired and has not been abandoned and, to the knowledge of such
Grantor, is valid and enforceable, and (ii) to the knowledge of such Grantor, does not infringe any
Intellectual Property rights of any other Person, except as could not reasonably be expected to
have a Material Adverse Effect.

          (c) Except as set forth in Schedule 5, on the date hereof, none of the Intellectual
Property listed on Schedule 5, is the subject of any Copyright License, Trademark License
or Patent License pursuant to which such Grantor is the licensor.

          SECTION 4. COVENANTS

          Each Grantor covenants and agrees with the Second-Priority Collateral Agent and the Secured
Parties that, from and after the date of this Agreement until the Obligations shall have been paid
in full and the Commitments terminated (other than contingent indemnity obligations not due and
payable):

          4.1. Covenants in Second-Priority Indenture. In the case of each Grantor, such Grantor
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 Grantor or any of its
Subsidiaries.

          4.2. Maintenance of Insurance.

          (a) Such Grantor will maintain insurance policies in accordance with the Second-Priority
Indenture.

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          (b) The Issuers shall deliver to the Second-Priority Collateral Agent a report of a reputable
insurance broker with respect to such insurance substantially concurrently with the delivery by the
Company to the Second-Priority Collateral Agent of its audited financial statements for each fiscal
year.

          4.3. Maintenance of Perfected Security Interest; Further Documentation.

          (a) Such Grantor shall maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 3.2, to the extent required
herein, and shall defend such security interest against the claims and demands of all Persons
whomsoever, subject to the rights of such Grantor under the Second-Priority Indenture and/or the
Second-Priority Note Documents to dispose of the Collateral and permitted Liens under the
Second-Priority Indenture.

          (b) Such Grantor will furnish to the Second-Priority Collateral Agent from time to time
statements and schedules further identifying and describing the assets and property of such Grantor
as the Second-Priority Collateral Agent may reasonably request, all in reasonable detail.

          (c) At any time and from time to time, upon the written request of the Second-Priority
Collateral Agent, and at the sole expense of such Grantor, such Grantor will promptly and duly
execute and deliver, and have recorded, such further instruments and documents and take such
further actions as the Second-Priority 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; provided that other than as required pursuant to Section 1018 of the
Second-Priority Indenture in no event shall any Grantor be required to perfect any Lien by means
other than the making of filings, registrations or recordings required for perfection under the
laws of the United States or any jurisdiction thereof, to the extent required by the terms hereof.
In furtherance of the foregoing, no Grantor shall be required to deliver share certificates or to
enter into control agreements.

          (d) Promptly following the acquisition by an Issuer or any Subsidiary Guarantor of any
After-Acquired Property constituting Collateral under this Agreement, such Issuer or such
Subsidiary Guarantor shall take all necessary action so that the security interest in such
Collateral is perfected to the extent required by this Agreement and the other Second-Priority
Security Documents.

          4.4. Changes in Name, etc.

          (a) No Spectrum Entity that is a Domestic Subsidiary shall change its jurisdiction of
formation to any jurisdiction outside the United States.

          (b) The Issuers will furnish to the Second-Priority Collateral Agent, with respect to any
Grantor, promptly (and in any event within 30 days of such change) written notice of any change in
such Person’s (i) legal name, (ii) jurisdiction of organization or formation, (iii) identity or
corporate structure or (iv) organizational identification number. The Grantors will agree not to
effect or permit any change referred to in the preceding sentence unless all filings

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have been made
under the Uniform Commercial Code or otherwise that are required hereunder or under the other
Second-Priority Security Documents in order for the Second-Priority Collateral Agent to be made
subject to the Lien of the Second-Priority Collateral Agent hereunder or under the other
Second-Priority Security Documents in the manner and to the extent required by the Second-Priority
Indenture or any of the Second-Priority Security Documents and shall take all necessary action so
that such Lien is perfected with the same priority as immediately prior to such change to the
extent required by the Second-Priority Security Documents. The Issuers also agree promptly to
notify the Second-Priority Collateral Agent if any material portion of the Collateral is damaged,
destroyed or condemned.

          (c) Each year, within 120 days after the end of the preceding fiscal year, the Issuers shall
deliver to the Second-Priority Trustee a certificate of a financial officer setting forth the
information required pursuant to the schedules required by the Second-Priority Security Documents
or confirming that there has been no change in such information since the date of the prior annual
financial statements.

          4.5. Notices. Each Grantor will advise the Second-Priority Collateral Agent and the
Secured Parties promptly, in reasonable detail, of:

     (a) any Lien (other than security interests created hereby or Liens permitted under the
Second-Priority Indenture and each Other Pari Passu Lien Agreement) on any of the Collateral
which would adversely affect the ability of the Second-Priority Collateral Agent to exercise
any of its remedies hereunder; and

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

          4.6. Investment Property.

          (a) Subject to the terms of the Intercreditor Agreement, after the occurrence and during the
continuation of an Event of Default, upon Second-Priority Collateral Agent’s written request, any
sums paid upon or in respect of the Investment Property upon the liquidation or dissolution of any
Pledged Stock Issuer shall be paid over to the Second-Priority Collateral Agent to be held by it
hereunder as additional collateral security for the Obligations, and in case any distribution of
capital shall be made on or in respect of the Investment Property, or any property shall be
distributed upon or with respect to the Investment Property pursuant to the recapitalization or
reclassification of the capital of any Pledged Stock Issuer or pursuant to the reorganization
thereof, the property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Second-Priority Collateral Agent, be delivered to the Second-Priority
Collateral Agent to be held by it hereunder as additional collateral security for the Obligations.
If any sums of money or property so paid or distributed in respect of the Investment Property shall
be received by such Grantor, such Grantor shall, until such money or property is paid or delivered
to the Second-Priority Collateral Agent, hold such money or property in trust for the Secured
Parties, segregated from other funds of such Grantor, as additional collateral security for the
Obligations. Notwithstanding the foregoing, the Grantors shall not be required to pay over to the
Second-Priority Collateral Agent or deliver to the Second-Priority Collateral Agent as Collateral

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(A) any proceeds of any liquidation or dissolution of any Pledged Stock Issuer, or any distribution
of capital or property in respect of any Investment Property, to the extent that (i) such
liquidation, dissolution or distribution, if treated as a Disposition of the relevant Pledged Stock
Issuer, would be permitted by the Second-Priority Indenture and (ii) the proceeds thereof are
applied in accordance with the Second-Priority Indenture or (B) distributions permitted under the
Second-Priority Indenture.

          (b) Such Grantor will not (i) vote to enable, or take any other action to permit, any Pledged
Stock 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 Pledged Stock Issuer, unless, with respect to any such stock
or equity securities or other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any Pledged Stock Issuer such
Grantor shall maintain the security interest created by this Agreement as a perfected security
interest having at least the priority described in Section 3.2, to the extent required herein, (ii)
sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the
Pledged Stock or Proceeds thereof (except pursuant to a transaction expressly permitted by the
Indenture), (ii) create, incur or permit to exist any Lien or option in favor of, or any claim of
any Person with respect to, any of the Pledged Stock or Proceeds thereof, or any interest therein,
except for the security interests created or permitted by this Agreement or as permitted under the
Indenture, (iii) enter into any agreement or undertaking restricting the right or ability of such
Grantor or the Second-Priority Collateral Agent to sell, assign or transfer any of the Pledged
Stock or Proceeds thereof or (iv) deliver certificates representing Pledged Stock of any Subsidiary
to any Person to perfect a Permitted Lien, other than to the Second-Priority Collateral Agent or
the First-Priority Collateral Agent (as defined in the Intercreditor Agreement).

          (c) In the case of each Grantor which is a Pledged Stock Issuer, such Pledged Stock 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 Second-Priority Collateral Agent promptly in writing of the occurrence of any of
the events described in Section 4.6(a) with respect to the Pledged Stock issued by it and (iii) the
terms of Sections 5.2(c) and 5.6 shall apply to it, mutatis mutandis, with respect
to all actions that may be required of it pursuant to Section 5.2(c) or 5.6 with respect to the
Pledged Stock issued by it.

          (d) In the case of each Grantor which is a Pledged Stock Issuer, such Pledged Stock Issuer
that is a partnership or a limited liability company (i) confirms that none of the terms of any
equity interest issued by it provides that such equity interest is a “security” within the meaning
of Sections 8-102 and 8-103 of the New York UCC (a “Security”), (ii) agrees that it will
take no action to cause or permit any such equity interest to become a Security, (iii) agrees that
it will not issue any certificate representing any such equity interest and (iv) agrees that if,
notwithstanding the foregoing, any such equity interest shall be or become a Security, such Pledged
Stock Issuer (x) will subject to the Intercreditor Agreement (and the Grantor that holds such
equity interest hereby instructs such Pledged Stock Issuer to) comply with instructions originated
by the Second-Priority Collateral Agent without further consent by such Grantor and (y) hereby
covenants and agrees not to deliver any stock certificates or other instruments representing

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such Security to any Person other than the Second-Priority Collateral Agent or the First-Priority
Collateral Agent (as defined in the Intercreditor Agreement).

          4.7. Intellectual Property.

          (a) Such Grantor, either itself or through licensees, will (i) as deemed necessary in such
Grantor’s reasonable business judgment, continue to use each material U.S. Trademark in connection
with each and every trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark in full force free
from any claim of abandonment for non-use in the United States, (ii) maintain as in the past the
quality of products and services offered under such material Trademark in the United States, (iii)
use such material Trademark with the appropriate notice of registration and all other notices and
legends required by applicable requirements of law in the United States, (iv) not adopt or use any
new mark or any mark in the United States which is confusingly similar or a colorable imitation of
such Trademark unless such mark shall be considered Collateral and subject to the terms of this
Agreement, and (iv) not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such material Trademark may become abandoned, invalidated or
impaired in any material respect in the United States other than as set forth in (i) above.

          (b) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any material U.S. issued Patent could reasonably be expected to become forfeited,
abandoned or dedicated to the public, other than through expiration of any statutory term.

          (c) Such Grantor (either itself or through licensees) (i) will not (and will not permit any
licensee or sublicense thereof) do any act or knowingly omit to do any act whereby any material
portion of any of the material U.S. Copyrights may become invalided or otherwise impaired, and (ii)
will not (either itself or through licensees) do any act whereby any material portion of any of the
material U.S. Copyrights may fall into the public domain, other than through expiration of any
statutory term.

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

          (e) Such Grantor will notify the Second-Priority Collateral Agent and the Secured Parties
immediately if it knows, or has reason to know, that any application or registration relating to
any material Intellectual Property in the United States may become forfeited, abandoned or
dedicated to the public, or of any adverse determination in the United States other than routine
initial refusals to register that call for a response (including, without limitation, the
institution against Grantor of, or any such determination in, any proceeding in the United States
Patent and Trademark Office or the United States Copyright Office) regarding such Grantor’s
ownership of, or the validity of, any material U.S. Intellectual Property owned by such Grantor or
such Grantor’s right to register the same or to own and maintain the same in the United States.

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          (f) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office or the United States Copyright Office, such Grantor shall
report such filing to the Second-Priority Collateral Agent as promptly as reasonably practicable
after the last day of the fiscal quarter in which such filing occurs and execute and deliver, and
have recorded with the United States Patent and Trademark Office and United States Copyright
Office, as applicable, any and all agreements, instruments, documents, and papers as are necessary
or as the Second-Priority Collateral Agent may reasonably request to evidence the Second-Priority
Collateral Agent’s and the Secured Parties’ security interest in any Copyright, Patent or Trademark
that is the subject of such application.

          (g) Such Grantor will, as deemed necessary in such Grantor’s reasonable business judgment,
take all reasonably necessary steps including, without limitation, in any proceeding before the
United States Patent and Trademark Office and the United States Copyright Office, to maintain and
pursue each application relating to any material Intellectual Property owned by such Grantor (and
to obtain the relevant registration) and to maintain each registration of the material Intellectual
Property owned by such Grantor, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability, except as provided in Section 4.7(a)(i).

          (h) In the event that any Grantor knows, or has reason to know, that any material Intellectual
Property owned by such Grantor is being infringed, misappropriated, diluted or otherwise violated
by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem
appropriate in its reasonable business judgment under the circumstances to protect such
Intellectual Property and (ii) if such Intellectual Property is deemed by such Grantor to be of
material economic value, as promptly as reasonably practicable notify the Second-Priority
Collateral Agent after it learns thereof and, if Grantor reasonably deems such action to be
appropriate in its reasonable business judgment under the circumstances, sue for infringement,
misappropriation, dilution or other violation (as the case may be), seek injunctive relief , and
recover any and all damages for such infringement, misappropriation, dilution or other violation or
settle such action.

          SECTION 5. REMEDIAL PROVISIONS

          5.1. Communications with Obligors; Grantors Remain Liable.

          (a) Subject to the terms of the Intercreditor Agreement, upon the request of the
Second-Priority Collateral Agent at any time after the occurrence and during the continuance of an
Event of Default, each Grantor shall notify obligors on the Receivables that the Receivables have
been assigned to the Second-Priority Collateral Agent for the benefit of the Secured Parties and
that payments in respect thereof shall be made directly to the Second-Priority Collateral Agent.

          (b) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables (or any agreement giving rise thereto) to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. Neither the Second-Priority

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Collateral Agent nor
any Secured Party shall have any obligation or liability under any Receivable (or any agreement
giving rise thereto) by reason of or arising out of this Agreement or the receipt by the
Second-Priority Collateral Agent or any Secured Party of any payment relating thereto, nor shall
the Second-Priority Collateral Agent or any Secured Party be obligated in any manner to perform any
of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any
payment received by it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled at any time or
times.

          5.2. Pledged Stock.

          (a) Unless an Event of Default shall have occurred and be continuing and the Second-Priority
Collateral Agent shall have given notice to the relevant Grantor of the Second-Priority Collateral
Agent’s intent to exercise its corresponding rights pursuant to Section 5.2(b), each Grantor shall
be permitted to receive all cash dividends paid in respect of the Pledged Stock, in each case paid,
to the extent permitted in the Second-Priority Indenture, 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 other action taken which would result in any violation of any
provision of the Second-Priority Indenture, this Agreement or any other Second-Priority Note
Document.

          (b) Subject to the terms of the Intercreditor Agreement, if an Event of Default shall occur
and be continuing and the Second-Priority Collateral Agent shall give notice of its intent to
exercise such rights to the relevant Grantor or Grantors, (i) the Second-Priority Collateral Agent
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 in the order set forth
in Section 5.4, and (ii) any or all of the Pledged Stock shall be registered in the name of the
Second-Priority Collateral Agent or its nominee, and the Second-Priority Collateral Agent or its
nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such
Pledged Stock at any meeting of shareholders of the relevant Pledged Stock Issuer or Pledged Stock
Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any
other rights, privileges or options pertaining to such Pledged 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 Pledged Stock Issuer, or upon the exercise by
any Grantor or the Second-Priority Collateral Agent 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, depositary, transfer agent, registrar or other designated
agency upon such terms and conditions as the Second-Priority Collateral Agent may determine), all
without liability except to account for property actually received by it, but the Second-Priority
Collateral Agent shall have no duty to any Grantor or any other Person to exercise any such right,
privilege or option and shall not be responsible for any failure to do so or delay in so doing.

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          (c) Each Grantor hereby authorizes and instructs each Pledged Stock Issuer of any Pledged
Stock pledged by such Grantor hereunder to (i) comply with any instruction received by it from the
Second-Priority 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 Grantor, and each Grantor agrees that each Pledged Stock
Issuer shall be fully protected in so complying and (ii) unless otherwise expressly permitted
hereby, pay any dividends or other payments with respect to the Pledged Stock directly to the
Second-Priority Collateral Agent.

          5.3. Proceeds To Be Turned Over to Second-Priority Collateral Agent. Subject to the terms
of the Intercreditor Agreement, if an Event of Default shall occur and be continuing and at the
election of Second-Priority Collateral Agent, all Proceeds (x) received by any Grantor in respect
of any Collateral and (y) consisting of cash, checks and Instruments, shall be held by such Grantor
in trust for the Second-Priority Collateral Agent and the Secured Parties, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the
Second-Priority Collateral Agent in the exact form received by such Grantor (duly indorsed by such
Grantor to the Second-Priority Collateral Agent, if required). All Proceeds received by the
Second-Priority Collateral Agent hereunder shall be held in a Collateral Account maintained under
its sole dominion and control. All Proceeds while held by the Second-Priority Collateral Agent in
a Collateral Account (or by such Grantor in trust for the Second-Priority Collateral Agent and the
Secured Parties) shall continue to be held as collateral security for all the Obligations and shall
not constitute payment thereof until applied as provided in Section 5.4; provided that all
funds in such Collateral Account shall be promptly released to Grantor upon the cure or waiver of
any such Event of Default.

          5.4
Application of Proceeds.

          (a) Subject to the terms of the Intercreditor Agreement, if an Event of Default shall have
occurred and be continuing, at the Second-Priority Collateral Agent’s election, all or any part of
Proceeds constituting Collateral in respect of any sale of, collection from or other realization
upon all or any part of the Collateral pursuant to the exercise by the Second-Priority Collateral
Agent or any Secured Parties of the remedies with respect to Collateral, whether or not held in any
Collateral Account, shall be applied by the Second-Priority Collateral Agent in payment of the
Obligations in the following order:

     (i) First, to pay incurred and unpaid fees and expenses and indemnities of the
Second-Priority Collateral Agent and the Second-Priority Trustee under the Second-Priority
Note Documents;

     (ii) Second, to the extent proceeds remain after the application pursuant to
preceding clause (i), pro rata (based on the respective amounts of Obligations described in
subclauses (x) and (y) below) to (x) the Second-Priority Trustee, based on the amount of
Obligations then outstanding under the Second-Priority Indenture, for application as
provided in the Second-Priority Indenture and (y) each Authorized Representative, based on
the amount of Obligations then outstanding under the Other Pari Passu Lien Agreement
pursuant to which it is acting as such, for application as provided in such Other Pari Passu
Lien Agreement; and

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     (iii) Third, any balance of such Proceeds remaining after the Obligations shall
have been paid in full shall be paid over to the Company or to whomsoever may be lawfully
entitled to receive the same.

          If, despite the provisions of this Section 5.4(a)(ii), any Secured Party shall receive any
payment or other recovery in excess of its portion of payments on account of the Obligations to
which it is then entitled in accordance with this Section 5.4(a), such Secured Party shall hold
such payment or recovery in trust for the benefit of all Secured Parties for distribution in
accordance with this Section 5.4(a).

          (b) Each of the Secured Parties acknowledges and agrees that notwithstanding the date, time or
creation of any Liens securing any of the Obligations under this Agreement or the Second-Priority
Security Documents, the Obligations shall be equally and ratably secured by the Liens of this
Agreement and the Second-Priority Security Documents and all Liens securing any of the Obligations
(and any proceeds received from the enforcement of any such Liens) shall be for the equal and
ratable benefit of all Secured Parties and shall be applied as provided in clause (a) above. Each
Secured Party, by its acceptance of the benefits hereunder and of the Second-Priority Security
Documents, hereby agrees for the benefit of the other Secured Parties that, to the extent any
additional or substitute collateral for any of the Obligations is delivered by a Grantor to or for
the benefit of any Secured Party, such collateral shall be subject to the provisions of this clause
(b).

          (c) Each of the Secured Parties hereby agrees not to challenge or question in any proceeding
the validity or enforceability of any Second-Priority Security Document (in each case as a whole or
any term or provision contained therein) or the validity of any Lien or financing statement in
favor of the Second-Priority Collateral Agent for the benefit of the Secured Parties as provided in
this Agreement and the other Second-Priority Security Documents, or the relative priority of any
such Lien.

          5.5. Applicable Authorized Representative and Exercise of Remedies. The Applicable
Authorized Representative shall direct the Second-Priority Collateral Agent in exercising any
right, power, discretionary duty or other remedy available to the Second-Priority Collateral Agent
under this Agreement or any Second-Priority Security Document and the other Secured Parties shall
not have a right to take any actions with respect to the Collateral. If the Second-Priority
Collateral Agent shall not have received appropriate instruction within 10 days of a request
therefor from the Applicable Authorized Representative (or such shorter period as reasonably may be
specified in such notice or as may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action as it shall deem to be in the best interests of
the Secured Parties and the Second-Priority Collateral Agent shall have no liability to any Person
for such action or inaction.

          5.6. Code and Other Remedies. If an Event of Default shall occur and be continuing, the
Second-Priority 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
agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured
party under the New York UCC or any other applicable law. Without limiting the generality of the
foregoing, the Second-Priority Collateral Agent, without demand of performance

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or other demand,
presentment, protest, advertisement or notice of any kind (except any notice required by law
referred to below) to or upon any Grantor or any other Person (all and each of which demands,
defenses, advertisements and notices are hereby waived), may in such circumstances forthwith
collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or office of the
Second-Priority Collateral Agent or any Secured Parties or elsewhere upon such terms and conditions
as it may deem advisable and at such prices as it may deem commercially reasonable, for cash or on
credit or for future delivery without assumption of any credit risk. The Second-Priority
Collateral Agent or any Secured Parties shall have the right upon any such public sale or sales,
and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or
any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which
right or equity is hereby waived and released. Each Grantor further agrees, at the Second-Priority
Collateral Agent’s request, to assemble the Collateral and make it available to the Second-Priority
Collateral Agent at places which the Second-Priority Collateral Agent shall reasonably select,
whether at such Grantor’s premises or elsewhere. The Second-Priority Collateral Agent shall apply
the net proceeds of any action taken by it pursuant to this Section 5.6, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights
of the Second-Priority Collateral Agent and the Secured Parties hereunder, including, without
limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the
Obligations, in the order, and only after such application and after the payment provided in
Section 5.4(a) by the Second-Priority Collateral Agent of any other amount required by any
provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, need the
Second-Priority Collateral Agent account for the surplus, if any, to any Grantor. To the extent
permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire
against the Second-Priority Collateral Agent or any Secured Parties arising out of the exercise by
them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral
shall be required by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition or such shorter period as may be otherwise commercially
reasonable and proper.

          5.7. Registration Rights.

          (a) Upon acceleration of obligations pursuant to Section 502 of the Second-Priority Indenture,
if the Second-Priority Collateral Agent shall determine to exercise its right to sell any or all of
the Pledged Stock pursuant to Section 5.5, and if in the opinion of the Second-Priority Collateral
Agent it is necessary or advisable to have the Pledged Stock, or that portion thereof to be sold,
registered under the provisions of the Securities Act, the relevant Grantor will cause the Pledged
Stock Issuer thereof to (i) execute and deliver, and cause the directors and officers of such
Pledged Stock 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 opinion of the Second-Priority Collateral Agent,
necessary or advisable to register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its commercially reasonable efforts to cause the
registration statement relating thereto to become effective and to remain effective for a

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period of
one year from the date of the first public offering of the Pledged Stock, or that portion thereof
to be sold, and (iii) make all amendments thereto and/or to the related prospectus which, in the
opinion of counsel to the Second-Priority Collateral Agent, are necessary or advisable, in order to
conform with the requirements of the Securities Act and the rules and regulations of the Securities
and Exchange Commission applicable thereto. Each Grantor agrees to use commercially reasonable
efforts to cause such Pledged Stock Issuer to make available to its security holders, as soon as
practicable, an earnings statement (which need not be audited) which will satisfy the provisions of
Section II(a) of the Securities Act.

          (b) Each Grantor recognizes that the Second-Priority Collateral Agent may be unable to, or may
determine in its absolute discretion not to, effect a registration of any or all the Pledged Stock,
and may determine to conduct one or more sales thereof to purchasers that would otherwise satisfy
the requirements of the Securities Act (for the purposes of this section, a “Permitted
Sale”). Each Grantor acknowledges and agrees that any such Permitted Sale may result in prices
and other terms less favorable than if such sale were of Pledged Stock registered for public sale
under the provisions of the Securities Act or under applicable state securities laws, and,
notwithstanding such circumstances or any other circumstances, agrees that any such Permitted Sale
shall be deemed to have been made in a commercially reasonable manner regardless of whether the
Pledged Stock could have been registered for public sale under the provisions of the Securities Act
or under applicable state securities laws. In no circumstances shall the Second-Priority
Collateral Agent be under any obligation to register Pledged Stock under the provisions of the
Securities Act or under applicable state securities laws, even if such Pledged Stock Issuer would
agree to do so.

          (c) Each Grantor agrees to use its commercially reasonable 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 the
Pledged Stock pursuant to this Section 5.7 valid and binding and in compliance with any and all
other applicable requirements of law. Each Grantor further agrees that a breach of any of the
covenants contained in this Section 5.7 will cause irreparable injury to the Second-Priority
Collateral Agent and the Secured Parties, that the Second-Priority Collateral Agent and the Secured
Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each
and every covenant contained in this Section 5.7 shall be specifically enforceable against such
Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants except for a defense that no Event of Default has occurred
under the Second-Priority Indenture.

          5.8. Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of
any sale or other disposition of the Collateral are insufficient to pay its Obligations and the
fees and disbursements of any attorneys employed by the Second-Priority Collateral Agent or any
Secured Parties to collect such deficiency, subject to Section 1411 of the Second-Priority
Indenture.

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          SECTION 6. THE COLLATERAL AGENT

          6.1. Second-Priority Collateral Agent’s Appointment as Attorney-in-Fact, etc.

          (a) Each Grantor hereby irrevocably constitutes and appoints the Second-Priority Collateral
Agent and any officer or agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor
and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and all documents and
instruments which may be reasonably necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the
Second-Priority 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 Receivable or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Second-Priority Collateral Agent for the purpose of collecting any
and all such moneys due under any Receivable or with respect to any other Collateral
whenever payable;

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

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premiums therefor and the costs thereof;

     (iv) execute, in connection with any sale provided for in Section 5.5 or 5.6, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

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

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

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

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

          (c) The reasonable out-of-pocket expenses of the Second-Priority Collateral Agent incurred in
connection with actions undertaken as provided in this Section 6.1 shall be payable by such Grantor
to the Second-Priority Collateral Agent within 10 days of demand or directly out of proceeds from
any relevant Collateral, at the Second-Priority Collateral Agent’s discretion.

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

          (e) Notwithstanding anything to the contrary, upon the occurrence of Discharge of Obligations
with respect to the Second-Priority Indenture, the Required Secured Parties shall be entitled to
appoint a successor Second-Priority Collateral Agent under this Agreement and the other
Second-Priority Security Documents.

          6.2. Duty of Second-Priority Collateral Agent.

          (a) The Second-Priority Collateral Agent’s sole duty with respect to the custody, safekeeping
and physical preservation of the Collateral in its possession, under Section 9-207 of the New York
UCC or otherwise, shall be to deal with it in the same manner as the

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Second-Priority Collateral
Agent deals with similar property for its own account. Neither the Second-Priority Collateral
Agent, any Secured Parties nor any of their respective officers, directors, employees or agents
shall be liable for failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of any Grantor or any other Person or to take any other action whatsoever with
regard to the Collateral or any part thereof. The powers, rights and discretionary duties
conferred on the Second-Priority Collateral Agent and the Secured Parties hereunder are solely to
protect the Second-Priority Collateral Agent’s and the Secured Parties’ interests in the Collateral
and shall not impose any duty upon the Second-Priority Collateral Agent or any Secured Parties to
exercise any such powers. The Second-Priority Collateral Agent and the Secured Parties shall be
accountable only for amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents shall be responsible to
any Grantor for any act or failure to act hereunder, except for their own (or their officers’,
directors’, employees’ or agents’) bad faith, gross negligence or willful misconduct. In no event
shall the Second-Priority Collateral Agent be liable for any special, exemplary, punitive or
consequential damages.

          (b) To the extent that applicable law imposes duties on the Second-Priority Collateral Agent
to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that
it may be commercially reasonable for the Second-Priority Collateral Agent (i) to fail to incur
expenses deemed significant by the Second-Priority Collateral Agent to prepare Collateral for
disposition or otherwise to transform raw material or work in process into finished goods or other
finished products for disposition, (ii) to fail to obtain third party consents for access to
Collateral to be disposed of, or to obtain or, if not required by applicable law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be
collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or
other Persons obligated on Collateral or to remove Liens on or any adverse claims against
Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons
obligated on Collateral directly or through the use of collection agencies and other collection
specialists, (v) to advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other
Persons, whether or not in the same business as such Grantor, for expressions of interest in
acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail
markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi)
to purchase insurance or credit enhancements to insure the Second-Priority Collateral Agent against
risks of loss, collection or disposition of Collateral or to provide to the Second-Priority
Collateral Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to
the extent deemed appropriate by the Second-Priority Collateral Agent, to obtain the services of
other brokers, investment bankers, consultants and other professionals to assist the
Second-Priority Collateral Agent in the collection or disposition of any of the Collateral. Each
Grantor acknowledges that the purpose of this Section 6.2 is to provide non-exhaustive indications
of what actions or omissions by the Second-Priority Collateral Agent may be commercially reasonable
in the Second-Priority Collateral

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 Agent’s exercise of remedies against the Collateral and that
other actions or omissions by the Second-Priority Collateral Agent shall not be deemed commercially
unreasonable solely on account of not being indicated in this Section 6.2. Without limitation upon
the foregoing, nothing contained in this Section 6.2 shall be construed to grant any rights to any
Grantor or to impose any duties on the Second-Priority Collateral Agent that would not have been
granted or imposed by this Agreement or by applicable law in the absence of this Section 6.2.

          6.3. Execution of Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Second-Priority Collateral Agent to file or record financing statements and other
filing or recording documents or instruments with respect to the Collateral without the signature
of such Grantor in such form and in such offices as the Second-Priority Collateral Agent determines
appropriate to perfect the security interests of the Second-Priority Collateral Agent under this
Agreement; provided that such authorization will not impose any such duty on the Second-Priority
Collateral Agent, such duty to remain with each Grantor. Each Grantor authorizes the
Second-Priority Collateral Agent to use the collateral description “all assets of the Debtor
whether now owned or hereinafter acquired and all proceeds thereof, other than Excluded Assets” or
words of similar effect in any such financing statements. Each Grantor hereby ratifies and
authorizes the filing by the Second-Priority Collateral Agent of any financing statement with
respect to the Collateral made prior to the date hereof.

          6.4. Authority of Second-Priority Collateral Agent. Each Grantor acknowledges that the
rights and responsibilities of the Second-Priority Collateral Agent under this Agreement with
respect to any action taken by the Second-Priority Collateral Agent or the exercise or non-exercise
by the Second-Priority 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 shall, as between
the Second-Priority Collateral Agent and the Secured Parties, be governed by the Second-Priority
Indenture and by such other agreements with respect thereto as may exist from time to time among
them, but, as between the Second-Priority Collateral Agent and the Grantors, the Second-Priority
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.

          6.5. Protections of Second-Priority Collateral Agent.

          (a) For all purposes of this Agreement, the Second-Priority Collateral Agent shall not be
deemed to have notice or knowledge of any Event of Default or matter hereunder unless written
notice of such event is received by the Second-Priority Collateral Agent or an officer of the
Second-Priority Collateral Agent responsible for the administration of this Agreement has actual
knowledge thereof.

          (b) Except for action expressly required hereunder (excluding circumstances in which the
Second-Priority Collateral Agent has the ability but not an affirmative duty to act), nothing in
this Agreement or any other Second-Priority Note Document shall be interpreted as giving the
Second-Priority Collateral Agent responsibility for or any duty concerning the validity,
perfection, priority or enforceability of any Lien or security interest in any Collateral or giving
the Second-Priority Collateral Agent any obligation to take any action to procure or maintain

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such
validity, perfection, priority or enforceability.

          (c) Neither the Second-Priority Collateral Agent nor any of its affiliates, directors,
officers, agents or employees shall be liable for any action taken or not taken by it in connection
herewith (i) with the consent or at the request of the Applicable Authorized Representative or (ii)
in the absence of its own gross negligence or willful misconduct. Neither the Second-Priority
Collateral Agent nor any of its affiliates, directors, officers, agents or employees shall be
responsible for or have any duty to ascertain, inquire into or verify (i) any statement, warranty
or representation made in connection with this Agreement; (ii) the performance or observance of any
of the covenants or agreements of a Grantor; (iii) the receipt of items required to be delivered to
the Second-Priority Collateral Agent; or (iv) the validity, effectiveness or genuineness of this
Agreement, the other Collateral Documents or any other instrument or writing furnished in
connection herewith. The Second-Priority Collateral Agent shall not incur any liability solely by
acting in reliance upon any notice, consent, certificate, statement, or other writing (which may be
a bank wire, telex or similar writing) reasonably believed by it to be genuine or to be signed by
the proper party or parties. The Second-Priority Collateral Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or any other
Second-Priority Note Document or any other document furnished in connection herewith or therewith
in accordance with a written direction or a request of an the Applicable Authorized Representative.

          (d) Any Person into which the Second-Priority Collateral Agent may be converted or merged, or
with which it may be consolidated, or to which it may sell or transfer its corporate trust assets
as a whole or substantially as a whole, or any Person resulting from any such conversion, merger,
consolidation, sale or transfer to which the Second-Priority Collateral Agent is a party, shall
(provided it is otherwise qualified to serve as the Second-Priority Collateral Agent hereunder) be
and become a successor Second-Priority Collateral Agent hereunder and be vested with all of the
title to the Collateral and all of the trusts, powers, discretions, immunities, privileges,
estates, properties, rights, duties and obligations as was its predecessor without the execution or
filing of any instrument or any further act, deed or conveyance on the part of any of the parties
hereto or any other Person, anything herein to the contrary notwithstanding.

          (e) The Second-Priority Collateral Agent shall enjoy all the same rights, protections,
indemnities and immunities granted to the Second-Priority Trustee under the Second-Priority
Indenture or other Second-Priority Note Documents in addition to those contained in this Agreement
and any such provisions are made explicitly a part hereof mutatis mutandis with references to the
Second-Priority Trustee therein being deemed to refer to the Second-Priority Collateral Agent
without regard to any Discharge of Obligations relating to the Second-Priority Indenture. In
furtherance of the foregoing (but without limiting the generality thereof), the Grantors hereby
agree to pay the fees, expenses and indemnities of the Second-Priority Collateral Agent on the same
terms as the Issuers are obligated to pay such fees, expenses and indemnities pursuant to Section
1411 of the Second-Priority Indenture so long as this Agreement remains in effect and without
regard to any Discharge of Obligations relating to the Second-Priority Indenture.

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          (f) The Second-Priority Collateral Agent may resign hereunder in accordance with the
provisions set forth in Section 1410(g) of the Second-Priority Indenture.

          (g) The Second-Priority Collateral Agent shall not be deemed to have notice or knowledge of
any of the facts, events, circumstances, or other matters relating to any Other Pari Passu Lien
Agreement, nor shall it have any duty or be liable in any way to monitor, evaluate or verify
compliance by any party thereof with any provisions of such Other Pari Passu Lien Agreement or the
accuracy of information received by the Second-Priority Collateral Agent from the Applicable
Authorized Representative. In any matter relating to the Other Pari Passu Obligations, the
Second-Priority Collateral Agent may request and be fully protected in relying upon the statements,
certificates, opinions, reports, notices, requests, directions, consents, orders, and other
documents provided to the Second-Priority Collateral Agent by the Applicable Authorized
Representative without further investigation or verification. The Second-Priority Collateral Agent
shall in no event be liable or responsible for the performance of any obligation or duty hereunder
to the extent it has requested instruction or other information from the Applicable Authorized
Representative that is reasonably necessary to perform such duty hereunder and an appropriate
response to such request has not been received.

          (h) The Second-Priority Collateral Agent shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement at the request or direction of the Applicable
Authorized Representative that is not the Second-Priority Trustee, unless such Applicable
Authorized Representative or the holders of Permitted Additional Junior Lien Obligations have
offered to the Second-Priority Collateral Agent reasonable security or indemnity satisfactory to it
against the costs, expenses, losses and liabilities which might be incurred by it in compliance
with such request or direction.

          SECTION 7. MISCELLANEOUS

          7.1. 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 Second-Priority Collateral Agent in accordance with Article Nine of the
Second-Priority Indenture and in accordance with the terms and conditions of each Other Pari Passu
Lien Agreement.

          7.2. Notices. All notices, requests and demands hereunder shall be effected in the manner
provided for in Sections 105 and 106 of the Second-Priority Indenture and if to any Authorized
Representative, as set forth in the applicable Other Pari Passu Secured Party Consent;
provided that any such notice, request or demand to or upon any Grantor shall be addressed
to such Grantor at its notice address set forth on Schedule 1.

          7.3. No Waiver by Course of Conduct; Cumulative Remedies. Neither the Second-Priority
Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to
Section 7.1), 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 Second-Priority Collateral Agent or any Secured Party,
any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude

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any other or further exercise
thereof or the exercise of any other right, power or privilege. A waiver by the Second-Priority
Collateral Agent or any Secured Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which the Second-Priority Collateral Agent or such
Secured Party would otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law.

          7.4. Waivers. To the maximum extent permitted by applicable law, each Grantor waives all
claims, damages, and demands against the Second-Priority Collateral Agent or any Secured Party
arising out of the repossession, retention or sale of the Collateral, except such as arise out of
the gross negligence of the Second-Priority Collateral Agent or such Secured Party as finally
determined by a court of competent jurisdiction. To the extent it may lawfully do so, each Grantor
absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not
to assert against the Second-Priority Collateral Agent or any Secured Party, any valuation, stay,
appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it
may have as a surety now or hereafter existing which, but for this provision, might be applicable
to the sale of any Collateral made under the judgment, order or decree of any court, or privately
under the power of sale conferred by this Agreement, or otherwise. Except as otherwise specifically
provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the
maximum extent permitted by applicable law) of any kind in connection with this Agreement or any
Collateral.

          7.5. Enforcement Expenses; Indemnification.

          (a) Each Grantor agrees to pay, indemnify or reimburse each Secured Party and the
Second-Priority Collateral Agent for, all its reasonable, out-of-pocket costs and expenses incurred
in collecting against such Grantor enforcing or preserving any rights under this Agreement, the
other Second-Priority Note Documents, the Other Pari Passu Lien Agreements to which such Grantor is
a party, including, without limitation, the reasonable, out-of-pocket fees and disbursements of
counsel to each Secured Party and of counsel to the Second-Priority Collateral Agent subject to
Section 1411 of the Second-Priority Indenture.

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

          (c) Each Grantor agrees to pay, and to save the Second-Priority Collateral Agent and the
Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration of this Agreement
to the extent the Issuers would be required to do so pursuant to Section 1411 of the
Second-Priority Indenture.

          (d) The agreements in this Section shall survive (i) any resignation or removal of the
Second-Priority Collateral Agent hereunder or (ii) repayment of the Obligations and all

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other
amounts payable under the Second-Priority Indenture, Second-Priority Notes, the other
Second-Priority Note Documents and the Other Pari Passu Lien Agreements.

          7.6. FCC Compliance. Notwithstanding anything to the contrary contained herein:

     (a) The Collateral includes all rights of each Grantor under or relating to FCC License
Rights and the proceeds thereof, provided that such security interest does not
include at any time any FCC License Rights to the extent (but only to the extent) that at
such time the Second-Priority Collateral Agent may not validly possess a security interest
therein pursuant to the Communications Act of 1934, as amended, the regulations promulgated
thereunder or any other applicable law, regulation, or policy, as in effect at such time,
but such security interest does include, to the maximum extent permitted by law, all rights
incident or appurtenant to the FCC License Rights and the right to receive all proceeds
derived from or in connection with the sale, assignment or transfer of the FCC License
Rights;

     (b) At any time after the occurrence and during the continuance of an Event of Default,
to the extent permitted by the FCC, each Grantor shall take all lawful action that the
Second-Priority Collateral Agent may reasonably request in the exercise of its rights and
remedies hereunder, which include the right to require the Grantor to transfer or assign the
Pledged Stock, FCC Licenses and Spectrum Leases held by it or any of its Subsidiaries to any
party or parties to facilitate an arm’s-length public or private sale for the benefit of the
Second-Priority Collateral Agent. In furtherance of this right, the Grantor shall (i)
cooperate fully with the Second-Priority Collateral Agent in obtaining all approvals and
consents from the FCC and each other Governmental Authority and from any third parties that
the Second-Priority Collateral Agent may deem necessary or advisable to accomplish any such
transfer or assignment of the Pledged Stock or such FCC Licenses and Spectrum Leases, and
(ii) prepare, execute and file with the FCC and any other Governmental Authority any
application, request for consent, certificate or instrument that the Second-Priority
Collateral Agent may deem necessary or advisable to accomplish any such transfer or
assignment of the Pledged Stock and such FCC Licenses and Spectrum Leases. If the Grantor
fails to execute such applications, requests for consent, certificates or instruments, the
clerk of any court that has jurisdiction over the Second-Priority Note Documents and/or
Other Pari Passu Lien Agreements may, upon an ex parte request by the Second-Priority
Collateral Agent, execute and file the same on behalf of the Grantor for purposes of placing
such request before the FCC, to the extent permitted by the FCC;

     (c) No action shall be taken with respect to the Collateral unless and until all
applicable requirements (if any) of the FCC under the Communications Act of 1934, as
amended, and the respective rules and regulations thereunder have been satisfied with
respect to such action and there have been obtained such consents, approvals and
authorizations (if any) as may be required to be obtained from the FCC;

     (d) Following an Event of Default all ownership interest in the FCC License Rights and
other Collateral will remain with the relevant Grantor unless and until the

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prior consent
(if required) of the FCC pursuant to 47 U.S.C. § 310(d) shall have been obtained;

     (e) The creation of any Lien, and the exercise of any remedy, with respect to any FCC
License Rights shall be consistent with the rules and regulations administered by the FCC;

     (f) Each Secured Party, by acceptance of the benefits hereof, acknowledges that: (i)
the Liens hereunder and ability to foreclose thereon will be limited by the need to comply
with applicable law; (ii) it is not entitled to exercise any rights with respect to the
Collateral if such action would constitute or result in any assignment of an FCC License
Right or any change of control (whether as a matter of law or fact) of the holder of any FCC
License Right unless the prior approval (if required) of the FCC is first obtained; (iii) no
Grantor can assure the Second-Priority Collateral Agent and the Secured Parties that any
such required FCC approval can be obtained on a timely basis or at all; (iv) the requirement
to obtain prior FCC approval may limit the number of potential bidders for certain
Collateral in any foreclosure and may delay any sale, either of which events may have an
adverse effect on the sale price of the Collateral; and (v) therefore, the practical value
of realizing on the Collateral may, without the appropriate FCC consents, be limited; and

     (g) Each Grantor acknowledges that the approval of the FCC, each other appropriate
Governmental Authority and each lessor, licensor or other party to any Spectrum Lease to the
assignment of the FCC Licenses or the transfer of control of the Grantor whose stock is
pledged hereunder is integral to the Second-Priority Collateral Agent’s realization of the
value of the Collateral, including the FCC Licenses and the Spectrum Leases, that there is
no adequate remedy at law for failure by the Grantor to comply with the provisions of this
Section 7.6 and that such failure could not be adequately compensable in damages.
Therefore, the Grantor agrees that the provisions of this Section 7.6 may be specifically
enforced, without any requirement to post bond (such rights being fully waived by Grantor)
and without regard to the adequacy of any remedies available at law (the defense of the
adequacy of remedies at law being fully waived by Grantor) and that the Second-Priority
Collateral Agent may seek to obtain approvals and consents with respect to any Spectrum
Lease directly from the lessor, licensor or other party to any Spectrum Lease.

          7.7. Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of each Grantor and shall inure to the benefit of the Second-Priority Collateral Agent and
the Secured Parties and their successors and assigns. In the event that any Guarantor assigns,
transfers or delegates any of its rights or obligations under this Agreement as permitted by the
Second-Priority Indenture and each Other Pari Passu Lien Agreement, it shall provide prior written
notice to the Second-Priority Collateral Agent.

          7.8. Set-Off. Each Grantor hereby irrevocably authorizes the Second-Priority Collateral
Agent and each Secured Party at any time and from time to time when an Event of Default shall have
occurred and be continuing, to set-off and appropriate and apply any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other

-29-

 

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 Second-Priority Collateral Agent
or such Secured Party to or for the credit or the account of such Grantor, or any part thereof in
such amounts as the Second-Priority Collateral Agent or such Secured Party may elect, against and
on account of the obligations and liabilities of such Grantor to the Second-Priority Collateral
Agent or such Secured Party hereunder and claims of every nature and description of the
Second-Priority Collateral Agent or such Secured Party against such Grantor, in any currency,
whether arising hereunder, under the Second-Priority Indenture, the Second-Priority Notes, any
other Second-Priority Note Document, any Other Pari Passu Lien Agreement or otherwise, as the
Second-Priority Collateral Agent or such Secured Party may elect, whether or not the
Second-Priority Collateral Agent or any Secured Party has made any demand for payment and although
such obligations, liabilities and claims may be contingent or unmatured. The Second-Priority
Collateral Agent and each Secured Party shall notify such Grantor promptly of any such set-off and
the application made by the Second-Priority Collateral Agent or such Secured Party of the proceeds
thereof, provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of the Second-Priority Collateral Agent and each Secured
Party under this Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Second-Priority Collateral Agent or such Secured
Party may have.

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

          7.10. 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.

          7.11. 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.

          7.12. Integration. This Agreement, the other Second-Priority Note Documents and the Other
Pari Passu Lien Agreements represent the agreement of the Grantors, the Second-Priority Collateral
Agent and the Secured Parties with respect to the subject matter hereof and thereof, and there are
no promises, undertakings, representations or warranties by the Second-Priority Collateral Agent or
any Secured Party relative to subject matter hereof and thereof not expressly set forth or referred
to herein or in the other Second-Priority Note Documents or in the Other Pari Passu Lien
Agreements.

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

-30-

 

          7.14. 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 Second-Priority Note Documents to which it is a party and any
Permitted Additional Junior Lien Obligations, or for recognition and enforcement of any
judgment in respect thereof, to the 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 and any other rights to
jurisdiction to which it may be entitled as a result of its domicile or otherwise;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Grantor at its address referred to in Section 7.2 or at such
other address of which the Second-Priority Collateral Agent shall have been notified
pursuant thereto;

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

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

          7.15. Acknowledgements. Each Grantor hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Second-Priority Note Documents or the Other Pari Passu Lien
Agreements to which it is a party;

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

     (c) no joint venture is created hereby, by the other Second-Priority Note Documents or
by the Other Pari Passu Lien Agreements or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Grantors and the Secured Parties.

-31-

 

          7.16. Additional Grantors. Each Subsidiary of the Company that is required to become a
party to this Agreement pursuant to Section 1024 of the Second-Priority Indenture and/or the
equivalent provision of any Other Pari Passu Lien Agreement shall become a Grantor, for all
purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex I hereto.

          7.17. Releases.

          (a) This Agreement and the other Second-Priority Security Documents shall remain in full force
and effect and be binding in accordance with and to the extent of its terms upon each Grantor and
the successors and assigns thereof and shall inure to the benefit of the Second-Priority Collateral
Agent and the other Secured Parties and their respective successors, indorsees, transferees and
assigns until the Final Date. This Agreement, the Liens granted hereunder and all other security
interests granted hereby shall terminate in full on the Final Date.

          (b) Liens on the Collateral securing Second-Priority Notes Obligations will be released as
provided in the Second-Priority Indenture.

          (c) Liens on Collateral securing the Permitted Additional Junior Lien Obligations under any
Other Pari Passu Lien Agreement will automatically and without the need for any further action by
any Person be released in whole or in part, as provided in such Other Pari Passu Lien Agreement.

          (d) In connection with any termination or release pursuant to paragraphs (a), (b) or (c), the
Second-Priority Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s
expense, all documents that such Grantor shall reasonably request to evidence such termination or
release upon delivery of a certificate to the Second-Priority Collateral Agent that all conditions
precedent to such release have been satisfied. Any execution and delivery of documents pursuant to
this Section 7.17 shall be without recourse to or warranty by the Second-Priority Collateral Agent.

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

          7.19.
Permitted Additional Junior Lien Obligations. On or after the date hereof and so long
as expressly permitted by the Second-Priority Indenture and any Other Pari Passu Lien Agreement
then outstanding, the Company may from time to time designate Indebtedness at the time of
incurrence to be secured on a pari passu basis with the Second-Priority Notes Obligations as
Permitted Additional Junior Lien Obligations hereunder by delivering to the Second-Priority
Collateral Agent and each Authorized Representative (a) a certificate signed by an Authorized
Officer of the Company (i) identifying the obligations so designated and the initial aggregate
principal amount or face amount thereof, (ii) stating that such obligations are designated as
Permitted Additional Junior Lien Obligations for purposes hereof, (iii) representing that such
designation of such obligations as Permitted Additional Junior Lien Obligations complies with

-32-

 

the terms of the Second-Priority Indenture and any Other Pari Passu Lien Agreement then
outstanding; (iv) specifying the name and address of the Authorized Representative for such
obligations and (v) attaching an executed copy of the Other Pari Passu Lien Agreement and (b) a
fully executed Other Pari Passu Lien Secured Party Consent. Each Authorized Representative agrees
that upon the satisfaction of all conditions set forth in the preceding sentence, the
Second-Priority Collateral Agent shall act as agent under and subject to the terms of the
Second-Priority Note Documents for the benefit of all Secured Parties, including without
limitation, any Secured Parties that hold any such Permitted Additional Junior Lien Obligations,
and each Authorized Representative agrees to the appointment, and acceptance of the appointment, of
the Second-Priority Collateral Agent as agent for the holders of such Permitted Additional Junior
Lien Obligations as set forth in each Other Pari Passu Lien Secured Party Consent.

-33-

 

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

	 	 	 	 	 
	 	CLEARWIRE COMMUNICATIONS LLC

 	 
	 	By:  	/s/ Hope F. Cochran	 
	 	 	Name: 	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

[Signature Page to Collateral Agreement for Second Lien Notes]

 

 

	 	 	 	 	 
	 	CLEARWIRE FINANCE, INC.

 	 
	 	By:  	/s/ Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

	 	 	 	 	 
	 	GUARANTORS:

CLEARWIRE LEGACY LLC and 

CLEARWIRE XOHM LLC

 	 
	 	By:  	Clearwire Communications, LLC, as manager
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

	 	 	 	 	 
	 	CLEAR WIRELESS, LLC, CLEARWIRE
SPECTRUM 
HOLDINGS III LLC, CLEARWIRE US LLC 
and CLEAR MANAGEMENT SERVICES
LLC

 	 
	 	By:  	Clearwire Communications, LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

	 	 	 	 	 
	 	CLEAR GLOBAL SERVICES LLC and 

CLEAR PARTNER HOLDINGS
LLC

 	 
	 	By:  	Clear Wireless LLC, as member
 	 
	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

[Signature Page to Collateral Agreement for Second Lien Notes]

 

 

	 	 	 	 	 
	 	BILLING LEGACY LLC, CLEARWIRE 
TELECOMMUNICATIONS
SERVICES, LLC,

 CLEARMEDIA, LLC, FIXED WIRELESS

HOLDINGS, LLC, CLEARWIRE SPECTRUM

 HOLDINGS II LLC and
CLEARWIRE SPECTRUM
 HOLDINGS LLC
 	 
	 
	 	By:  	Clearwire Legacy LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

	 	 	 	 	 
	 	WINBEAM LLC

 	 
	 	By:  	Clearwire US LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

	 	 	 	 	 

	 	 	 

	 

	 	AMERICAN TELECASTING DEVELOPMENT, LLC, AMERICAN
TELECASTING OF ANCHORAGE, LLC, AMERICAN TELECASTING
OF BEND, LLC, FRESNO MMDS ASSOCIATES, LLC, AMERICAN
TELECASTING OF COLUMBUS, LLC, AMERICAN TELECASTING OF
DENVER, LLC, AMERICAN TELECASTING OF FORT MYERS, LLC,
AMERICAN TELECASTING OF FT. COLLINS, LLC, AMERICAN
TELECASTING OF GREEN BAY, LLC, AMERICAN TELECASTING
OF LANSING, LLC, AMERICAN TELECASTING OF LINCOLN,
LLC, AMERICAN TELECASTING LITTLE ROCK, LLC, AMERICAN
TELECASTING OF LOUISVILLE, LLC, AMERICAN TELECASTING
OF MEDFORD, LLC, AMERICAN TELECASTING OF MICHIANA,
LLC, AMERICAN TELECASTING OF MONTEREY, LLC, AMERICAN
TELECASTING OF REDDING, LLC, AMERICAN TELECASTING OF
SANTA BARBARA, LLC, AMERICAN

[Signature Page to Collateral Agreement for Second Lien Notes]

 

 

	 	 	 

	 

	 	TELECASTING OF SEATTLE,
LLC, AMERICAN TELECASTING OF SHERIDAN, LLC, AMERICAN
TELECASTING OF YUBA CITY, LLC, ATI OF SANTA ROSA,
LLC, ATI SUB, LLC, NSAC, LLC, ALDA WIRELESS HOLDINGS,
LLC, PCTV GOLD II, LLC, PCTV OF SALT LAKE CITY, LLC,
PCTV SUB, LLC, PEOPLE’S CHOICE TV OF ALBUQUERQUE,
LLC, PEOPLE’S CHOICE TV OF HOUSTON, LLC, PEOPLE’S
CHOICE TV OF ST. LOUIS, LLC, SPEEDCHOICE OF DETROIT,
LLC, SPEEDCHOICE OF PHOENIX, LLC, ATL MDS, LLC, BAY
AREA CABLEVISION, LLC, BROADCAST CABLE, LLC, SCC X,
LLC, SPRINT (BAY AREA), LLC, TDI ACQUISITION SUB,
LLC, TRANSWORLD TELECOM II, LLC, WAVEPATH SUB, LLC,
WBS OF AMERICA, LLC, WBS OF SACRAMENTO, LLC, WBSY
LICENSING, LLC, WBSFP LICENSING, LLC, WCOF, LLC,
WIRELESS BROADBAND SERVICES OF AMERICA, LLC and
KENNEWICK LICENSING, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	         Clearwire XOHM LLC, as manager
 	 
	 	 	 
	 	By:  	         /s/ Hope F. Cochran
 	 
	 	 	Name:  	Hope F. Cochran 	 
	 	 	Title:  	Senior Vice President, Finance &
Treasurer 	 

[Signature Page to Collateral Agreement for Second Lien Notes]

 

 

	 	 	 	 	 
	 	WILMINGTON TRUST FSB, as Second-Priority Collateral Agent

 	 
	 	By:  	/s/ Jane Schweiger	 
	 	 	Name:  	Jane Schweiger	 
	 	 	Title:  	Vice President	 
	 

[Signature Page to Collateral Agreement for Second Lien Notes]

 

 

Schedule 1

NOTICE ADDRESSES OF GRANTORS

For all Grantors:

Grantor

c/o Clearwire Communications LLC

4400 Carillon Point

Kirkland, WA 98033

Attention: Hope Cochran

Facsimile: (425) 216-7776

With a copy to:

Grantor

c/o Clearwire Communications LLC

4400 Carillon Point

Kirkland, WA 98033

Attention: Legal Department

Facsimile: (425) 216-7776]

Kirkland & Ellis, LLP

601 Lexington Avenue

New York, NY 10022

Attn: Joshua N. Korff

Facsimile: 212-446-6460

 

 

Schedule 2

DESCRIPTION OF PLEDGED STOCK

[Redacted]

 

 

Schedule 3

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

[Redacted]

 

 

Schedule 4

JURISDICTION OF ORGANIZATION, IDENTIFICATION NUMBER

AND LOCATION OF CHIEF EXECUTIVE OFFICE

[Redacted]

 

 

Schedule 5

COPYRIGHTS

[Redacted]

 

PATENTS

[Redacted]

 

TRADEMARKS

[Redacted]

 

Annex I to

Second Lien Collateral Agreement

          ASSUMPTION AGREEMENT, dated as of                 , 200_, made by                  (the “Additional Grantor”), in favor of Wilmington Trust FSB, as Second-Priority
Collateral Agent (in such capacity, the “Second-Priority Collateral Agent”) on behalf of
itself and the other Secured Parties. All capitalized terms not defined herein shall have the
meaning ascribed to them in such Collateral Agreement.

W I T N E S S E T H :

          WHEREAS, Clearwire Communications LLC (the “Company”) and Clearwire Finance, Inc.
(“Finance Co” and, together with the Company the “Issuers”) and Wilmington Trust
FSB (the “Second-Priority Trustee”) have entered into an Second-Priority Indenture, dated
as of December 9, 2010 (as amended, supplemented or otherwise modified from time to time, the
“Second-Priority Indenture”);

          WHEREAS, in connection with the Second-Priority Indenture, the Company and certain of its
Affiliates (other than the Additional Grantor) have entered into the Second Lien Collateral
Agreement, dated as of December 9, 2010 (as amended, supplemented or otherwise modified from time
to time, the “Collateral Agreement”) in favor of Wilmington Trust FSB, as collateral agent
(in such capacity, the “Second-Priority Collateral Agent”) for the benefit of the Secured
Parties;

          WHEREAS, the Second-Priority Indenture and/or an Other Pari Passu Lien Agreement requires the
Additional Grantor to become a party to the Collateral Agreement; and

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

          NOW, THEREFORE, IT IS AGREED:

          1. Collateral Agreement. By executing and delivering this Assumption Agreement, the
Additional Grantor, as provided in Section 7.16 of the Collateral Agreement, hereby becomes a party
to the Collateral Agreement as a Grantor thereunder with the same force and effect as if originally
named therein as a Grantor and, without limiting the generality of the foregoing, hereby (i)
expressly assumes all obligations and liabilities of a Grantor thereunder and (ii) grants to the
Second-Priority Collateral Agent for the benefit of the Secured Parties a security interest in all
of its Collateral as security for the Obligations. The information set forth in Annex A hereto is
hereby added to the information set forth in the Schedules to the Collateral Agreement. The
Additional Grantor hereby represents and warrants that each of the representations and warranties
contained in Section 3 of the Collateral Agreement is true and correct in all material respects
(unless such representations and warranties already have a materiality qualifier) 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 SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          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:  	 	 

-2-

 

Annex A to

Assumption Agreement

Supplement to Schedule 1

NOTICE ADDRESSES OF GRANTORS

[Clearwire — Collateral Agreement]

 

 

Supplement to Schedule 2

DESCRIPTION OF PLEDGED STOCK

-2-

 

Supplement to Schedule 3

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

-3-

 

Supplement to Schedule 4

JURISDICTION OF ORGANIZATION, IDENTIFICATION NUMBER

AND LOCATION OF CHIEF EXECUTIVE OFFICE

-4-

 

Supplement to Schedule 5

COPYRIGHTS

PATENTS

TRADEMARKS

-5-

 

Annex II to

Second Lien Collateral Agreement

[Form of]

OTHER PARI PASSU LIEN SECURED PARTY CONSENT

[Name of Other Pari Passu Lien Secured Party]

[Address of Other Pari Passu Lien Secured Party]

[Date]

          The undersigned is the Authorized Representative for Persons wishing to become Secured Parties
(the “New Secured Parties”) under the Second Lien Collateral Agreement dated as of December
9, 2010 (the “Collateral Agreement” (terms used without definition herein have the meanings
assigned to such term by the Collateral Agreement)) among CLEARWIRE COMMUNICATIONS LLC (the
“Company”), CLEARWIRE FINANCE, INC. (“Finance Co” and together with the Company,
the “Issuers”), the Grantors party thereto and Wilmington Trust FSB, as Second-Priority
Collateral Agent (the “Second-Priority Collateral Agent”).

          In consideration of the foregoing, the undersigned hereby:

     (i) represents that the Authorized Representative has been duly authorized by the New
Secured Parties to become a party to the Collateral Agreement on behalf of the New Secured
Parties under that [DESCRIBE OPERATIVE AGREEMENT] (the “New Secured Obligation”) and
to act as the Authorized Representative for the New Secured Parties;

     (ii) acknowledges that the New Secured Parties have received a copy of the Collateral
Agreement;

     (iii) appoints and authorizes the Second-Priority Collateral Agent to take such action
as agent on its behalf and on behalf of all other Secured Parties and to exercise such
powers under the Collateral Agreement as are delegated to the Second-Priority Collateral
Agent by the terms thereof, together with all such powers as are reasonably incidental
thereto;

 

 

     (iv) agrees to serve as Authorized Representative for the New Secured Parties with
respect to the New Secured Obligations and agrees on its own behalf and on behalf of the New
Secured Parties to be bound by the terms of the Collateral Agreement applicable to holders
of Permitted Additional Junior Lien Obligations, with all the rights and obligations of a
Secured Party thereunder and bound by all the provisions thereof and agrees that its address
for receiving notices pursuant to the Collateral Agreement and the other Second-Priority
Security Documents shall be as follows:

     [Address]

     The Second-Priority Collateral Agent, by acknowledging and agreeing to this Other Pari
Passu Lien Secured Party Consent, accepts the appointment set forth in clause (iii) above.

          THIS OTHER PARI PASSU LIEN SECURED PARTY CONSENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

-2-

 

          IN WITNESS WHEREOF, the undersigned has caused this Other Pari Passu Lien Secured Party
Consent to be duly executed by its authorized officer as of the _____ day of 20___.

	 	 	 	 	 
	 	[NAME OF AUTHORIZED REPRESENTATIVE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

					
	 	

Acknowledged and Agreed

WILMINGTON TRUST, FSB,

as Second-Priority Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CLEARWIRE COMMUNICATIONS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CLEARWIRE FINANCE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Any other Grantor obligated under Other Pari Passu Obligations]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-3-exv4w10

Exhibit 4.10

INTERCREDITOR AGREEMENT

dated as of December 9, 2010,

among

CLEARWIRE COMMUNICATIONS LLC,

CLEARWIRE FINANCE, INC.,

the other GRANTORS party hereto,

WILMINGTON TRUST FSB,

as Existing First-Priority Collateral Agent,

WILMINGTON TRUST FSB,

as November 2009 Trustee,

WILMINGTON TRUST FSB,

as December 2009 Trustee,

WILMINGTON TRUST FSB,

as Second-Priority Trustee and Existing Second-Priority Collateral Agent,

and

each ADDITIONAL COLLATERAL AGENT from time to time party hereto

 

 

     Intercreditor Agreement (this “Agreement”), dated as of December 9, 2010 among
Wilmington Trust FSB, as trustee (in such capacity, the “November 2009 Trustee”) and
collateral agent (in such capacity, the “Existing First-Priority Collateral Agent”) for the
holders of the November 2009 Notes (such term, and other capitalized terms used herein but not
otherwise defined, having the meaning set forth in Section 1.1 below) and the December 2009 Notes,
Wilmington Trust FSB, as trustee (in such capacity, the “December 2009 Trustee”) for the
holders of the December 2009 Notes, Wilmington Trust FSB, as trustee (in such capacity, the
“Second-Priority Trustee”) and collateral agent for the holders of the Second-Priority
Notes (in such capacity, the “Existing Second-Priority Collateral Agent”), Clearwire
Communications LLC, a Delaware corporation (the “Company”), Clearwire Finance, Inc.
(“FinanceCo,” and together with the Company, the “Issuers”) and each of the other
Grantors party hereto.

     WHEREAS, the Issuers, the guarantors party thereto and the November 2009 Trustee are parties
to the Indenture dated as of November 24, 2009 (the “November 2009 Indenture”), pursuant to
which the Issuers have issued the November 2009 Notes;

     WHEREAS, the Issuers, the guarantors party thereto and the December 2009 Trustee are parties
to the Indenture dated as of December 9, 2009 (the “December 2009 Indenture”), pursuant to
which the Issuers have issued the December 2009 Notes;

     WHEREAS, the Issuers, the guarantors party thereto and the Second-Priority Trustee are parties
to the Indenture dated as of December 9, 2010 (the “Second-Priority Indenture”), pursuant
to which the Issuers have issued the Second-Priority Notes;

     WHEREAS, the Issuers and the other Grantors have granted to the Existing First-Priority
Collateral Agent security interests in the Common Collateral as security for payment and
performance of the First-Priority Obligations;

     WHEREAS, the Issuers and the other Grantors propose to grant to the Existing Second-Priority
Collateral Agent junior security interests in the Common Collateral as security for payment and
performance of the Second-Priority Obligations; and

     WHEREAS, it is a condition to the grant of such junior security interests that this Agreement
be executed and delivered by the parties hereto to set forth the respective rights of the
First-Priority Secured Parties, on the one hand, and the Second-Priority Secured Parties, on the
other hand, and the application of any proceeds and certain other matters;

     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 is expressly
recognized by all of the parties hereto, the parties agree as follows:

     Section 1. Definitions.

     1.1. Defined Terms. The following terms, as used herein, have the following
meanings:

     “Additional Debt” has the meaning set forth in Section 9.3(b).

     “Additional First-Priority Agreement” means any agreement designated as such in
writing (including by addendum to this Agreement) by the Company; provided that the Company
shall have delivered to each Collateral Agent (i) true and complete copies of such agreement and
security documents relating to such agreement, certified as being true and correct by an
authorized officer of the Company and (ii) a certificate of an authorized officer describing the
obligations incurred pursuant to such agreement to

 

 

be designated as First-Priority Obligations and
the initial aggregate principal amount or face amount thereof and certifying that such obligations
are permitted to be incurred and secured on a pari passu basis with the then extant First-Priority
Obligations by the terms of each then extant First-Priority Agreement and Second-Priority
Agreement.

     “Additional First-Priority Collateral Agent” means any collateral agent under any
Additional First-Priority Agreement.

     “Additional Second-Priority Agreement” means any agreement designated as such in
writing (including by addendum to this Agreement) by the Company; provided that the Company
shall have delivered to each Collateral Agent (i) true and complete copies of such agreement and
security documents relating to such agreement, certified as being true and correct by an
authorized officer of the Company and (ii) a certificate of an authorized officer describing the
obligations incurred pursuant to such agreement to be designated as Second-Priority Obligations and
the initial aggregate principal amount or face amount thereof and certifying that such obligations
are permitted to be incurred and secured on a pari passu basis with the then extant Second-Priority
Obligations by the terms of each then extant First-Priority Agreement and Second-Priority
Agreement.

     “Additional Second-Priority Collateral Agent” means any collateral agent under any
Additional Second-Priority Agreement.

     “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

     “Agreement” has the meaning assigned to such term in the preamble hereto.

     “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as
amended from time to time.

     “Bankruptcy Law” means each of the Bankruptcy Code and any similar federal, state or
foreign bankruptcy, insolvency, reorganization, receivership or similar law.

     “Collateral Agent” means each First-Priority Collateral Agent and Second-Priority
Collateral Agent.

     “Common Collateral” means all assets that are both First-Priority Collateral and
Second-Priority Collateral.

     “Company” has the meaning assigned to such term in the preamble hereto.

     “Comparable Second-Priority Security Document” means, in relation to any Common
Collateral subject to any First-Priority Security Document, that Second-Priority Security Document
that creates a security interest in the same Common Collateral, granted by the same Grantor, as
applicable.

     “December 2009 Indenture” has the meaning assigned to such term in the recitals
hereto.

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     “December 2009 Notes” means the 12% Senior Secured Notes due 2015 of the Issuers
issued pursuant to the December 2009 Indenture.

     “December 2009 Trustee” has meaning assigned to such term in the preamble hereto.

     “DIP Financing” has the meaning assigned to such term in Section 5.2.

     “Enforcement Action” means, with respect to the First-Priority Obligations or the
Second-Priority Obligations, any demand for acceleration or payment thereof, the exercise of any
rights and remedies with respect to any Common Collateral securing such obligations or the
commencement or prosecution of enforcement of any of the rights and remedies as a secured creditor
under, as applicable, the First-Priority Documents or the Second-Priority Documents, or applicable
law, including, without limitation, the exercise of any rights of set-off or recoupment and rights
to credit bid debt, and the exercise of any rights or remedies of a secured creditor under the
Uniform Commercial Code of any applicable jurisdiction or under the Bankruptcy Code.

     “Existing First-Priority Agreement” is a collective reference to the November 2009
Indenture and the December 2009 Indenture.

     “Existing First-Priority Collateral Agent” has the meaning assigned to such term in
the preamble.

     “Existing Second-Priority Collateral Agent” has the meaning assigned to such term in
the preamble.

     “FinanceCo” has the meaning assigned to such term in the preamble.

     “First-Priority Agreement” means the collective reference to (a) the Existing
First-Priority Agreement, (b) any Additional First-Priority Agreement and (c) 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, replace, refinance or refund in whole or in part the indebtedness
and other obligations outstanding under the Existing First-Priority Agreement, any Additional
First-Priority Agreement or any other agreement or instrument referred to in this clause (c);
provided that the Company shall have delivered to each Collateral Agent (i) true and
complete copies of such agreement and security documents relating to such agreement, certified as
being true and correct by an authorized officer of the Company and (ii) a certificate of an
authorized officer describing the obligations incurred pursuant to such agreement to be designated
as First-Priority Obligations and the initial aggregate principal amount or face amount thereof and
certifying that such obligations are permitted to be incurred and secured on a pari passu basis
with the then extant First-Priority Obligations by the terms of each then extant First-Priority
Agreement and Second-Priority Agreement. Any reference to the First-Priority Agreement hereunder
shall be deemed a reference to any First-Priority Agreement then extant.

     “First-Priority Collateral” means all assets, whether now owned or hereafter acquired
by either of the Issuers or any other Grantor, in which a Lien is granted or purported to be
granted to (i) any First-Priority Secured Party as security for any First-Priority Obligations or
(ii) any Lien assigned to the First-Priority Representative pursuant to Section 2.4.

     “First-Priority Collateral Agent” means the Existing First-Priority Collateral Agent
and any Additional First-Priority Collateral Agent.

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     “First-Priority Creditors” means (i) the November 2009 Trustee, the December 2009
Trustee, the First-Priority Collateral Agent, each “Holder” as defined in the November 2009
Indenture and each “Holder” as defined in the December 2009 Indenture and (ii) any Persons that are
designated under the First-Priority Documents as creditors entitled to benefit from the Liens on
the First-Priority Collateral under the First-Priority Security Documents.

     “First-Priority Documents” means the November 2009 Indenture, the December 2009
Indenture, each First-Priority Security Document, each First-Priority Guarantee and each of the
other agreements, documents, and instruments providing for the evidencing of any other
First-Priority Obligation and any other document or instrument executed or delivered at any time in
connection with any First-Priority Obligation (including any intercreditor or joinder agreement
among holders of First-Priority Obligations), to the extent such are effective at the relevant
time, as each may be amended, modified, restated, supplemented, replaced or refinanced from time to
time.

     “First-Priority Guarantee” means any guarantee by any Grantor of any or all of the
First-Priority Obligations.

     “First-Priority Lien” means any Lien created by the First-Priority Security Documents.

     “First-Priority Obligations” (i) all Obligations incurred under the November 2009
Indenture and the December 2009 Indenture and (ii) all Obligations under any other First-Priority
Agreement which are secured by a Lien on the Common Collateral that has Pari Passu Lien Priority
with respect to the Lien securing the Obligations under the First-Priority Indenture and the
December 2009 Indenture, the First-Priority Notes and the December 2009 Notes. “First-Priority
Obligations” shall in any event include (a) all interest accrued or accruing, or which would
accrue, absent commencement of an Insolvency or Liquidation Proceeding (and the effect of
provisions such as Section 502(b)(2) of the Bankruptcy Code), on or after the commencement of an
Insolvency or Liquidation Proceeding in accordance with the rate specified in the relevant document
or instrument governing such First-Priority Obligations, whether or not the claim for such interest
is allowed or allowable as a claim in such Insolvency or Liquidation Proceeding, (b) any and all
fees and expenses (including attorneys’ and/or financial consultants’ fees and expenses) incurred
by the First-Priority Representative and the holders of such First-Priority Obligations on or after
the commencement of an Insolvency or Liquidation Proceeding, whether or not the claim for fees and
expenses is allowed or allowable under Section 502 or 506(b) of the Bankruptcy Code or any other
provision of the Bankruptcy Law as a claim in such Insolvency or Liquidation Proceeding, and
(c) all obligations and liabilities of the Issuers and each other Grantor under each document or
instrument governing First-Priority Obligations to which it is a party which, but for the automatic
stay under Section 362(a) of the Bankruptcy Code, would become due and payable.

     “First-Priority Obligations Payment Date” means the first date on which (A) (i)
(a) payment in full in cash of the principal of and interest (including interest accruing on or
after the commencement of any Insolvency or Liquidation Proceeding at the rate provided for in the
respective document or instrument governing such First-Priority Obligations, whether or not such
interest would be allowed in any such Insolvency or Liquidation Proceeding) and premium, if any, on
all Indebtedness under the documents and instruments governing such First-Priority Obligations
(including any obligations replacing, renewing or refinancing any previously existing First
Priority Obligations, but other than those that constitute Unasserted Contingent Obligations) and
termination of all commitments to lend or otherwise extend credit under the documents and
instruments governing such First-Priority Obligations , (b) payment in full in cash of all other
First-Priority Obligations that are due and payable or otherwise accrued and owing at or prior to
the time such principal, interest, and premium are paid (including any obligations replacing,
renewing or refinancing any previously existing First Priority Obligations, but other than those
that constitute Unasserted Contingent Obligations) or (ii) all Liens and security interests
securing First-

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Priority Obligations are released with respect to all First-Priority Collateral and
(B) each First-Priority Collateral Agent has delivered a written notice to each Second-Priority
Collateral Agent stating that the events described in clauses (ii)(a) and (b) or in clause (ii)
have occurred, such notice not to be unreasonably withheld.

     “First-Priority Representative” means, as between First-Priority Collateral Agents
representing different series of First-Priority Obligations, the First-Priority Collateral Agent
representing the series of First-Priority Obligations with the greatest outstanding principal
amount.

     “First-Priority Secured Party” means the First-Priority Creditors and any other holder
of First-Priority Obligations.

     “First-Priority Security Documents” means the security agreements, pledge agreements,
deeds to secure debt, collateral assignments and related agreements (including, without limitation,
finance statements under the Uniform Commercial Code of the relevant states), as amended,
supplemented, restated, renewed, refunded, replaced, restructured, repaid, refinanced or otherwise
modified from time to time, creating the security interests in the Common Collateral as
contemplated by the November 2009 Indenture and the December 2009 Indenture and any other documents
that are designated under the First-Priority Agreement as “First-Priority Security Documents” for
purposes of this Agreement; provided that no document that is not entered into pursuant to
the Existing First-Priority Agreement will constitute a First-Priority Security Document unless the
treatment of such document as a First-Priority Security Document is permitted under each
First-Priority Agreement then extant, including, as of the date hereof and any other date if then
extant, the Existing First-Priority Agreement.

     “Governmental Authority” means any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body.

     “Grantor” means (a) the Issuers, (b) each direct or indirect subsidiary of the Company
and (c) any other Person in which the Company or any of its subsidiaries holds an ownership
interest, in each case (a) through (c), that is, at any time of determination, a party to any
First-Priority Security Document or Second-Priority Security Document. All references in this
Agreement to any Grantor shall include such Grantor as a debtor-in-possession and any receiver or
trustee for such Grantor in any Insolvency or Liquidation Proceeding.

     “Indebtedness” means, with respect to any Person, (a) any indebtedness (including
principal and premium) of such Person, whether or not contingent (1) in respect of borrowed money,
(2) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’
acceptances (or, without double counting, reimbursement agreements in respect thereof),
(3) representing the deferred and unpaid balance of the purchase price of any property (including
Capitalized Lease Obligations), except any such balance that constitutes a trade payable or similar
obligation to a trade creditor, in each case accrued in the ordinary course of business, or
(4) representing any interest rate Hedging Obligations, if and to the extent that any of the
foregoing Indebtedness (other than letters of credit and Hedging Obligations) would appear as a
liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in
accordance with GAAP, (b) to the extent not otherwise included, any obligation by such Person to be
liable for, or to pay, as obligor, guarantor or otherwise, on the Indebtedness of another Person,
other than by endorsement of negotiable instruments for collection in the ordinary course of
business, and (c) to the extent not otherwise included, Indebtedness of another Person secured by a
Lien on any asset owned by such Person (other than a Lien on Capital Stock of an Unrestricted
Subsidiary), whether or not such Indebtedness is assumed by such Person; provided, however, that
(x) Contingent Obligations incurred in the ordinary course of business, (y) Spectrum Leases or any
guarantee of obligations under Spectrum Leases or FCC License Rights and (z) and obligations under
or in respect of Receivables Facilities shall be

-5-

 

deemed not to constitute Indebtedness.
Capitalized terms used in this definition but not defined in this Agreement shall have the meanings
assigned to them in the Second-Priority Indenture.

     “Insolvency or Liquidation Proceeding” means (a) any voluntary or involuntary case or
proceeding under the Bankruptcy Code with respect to either of the Issuers or any other Grantor,
(b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding,
or any receivership, liquidation, reorganization or other similar case or proceeding with respect
to either of the Issuers or any other Grantor or with respect to a material portion of its
respective assets, (c) any liquidation, dissolution, reorganization or winding up of either of the
Issuers or any other Grantor, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (d) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of either of the Issuers or any other Grantor.

     “Issuers” has the meaning assigned to such term in the preamble hereto.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction; provided that in no event
shall an operating lease be deemed to constitute a Lien.

     “November 2009 Indenture” has the meaning assigned to such term in the recitals
hereto.

     “November 2009 Notes” means the 12% Senior Secured Notes due 2015 of the Issuers
issued pursuant to the November 2009 Indenture.

     “November 2009 Trustee” has the meaning assigned to such term in the preamble.

     “Obligations” means any principal, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable state, federal or foreign law), penalties, fees, indemnifications,
reimbursements (including, without limitation, reimbursement obligations with respect to letters of
credit and banker’s acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities, payable under the documentation governing any Indebtedness.

     “Pari Passu Lien Priority” means, relative to specified indebtedness, having equal
Lien priority on specified collateral.

     “Person” means any natural person, corporation, business trust, joint venture,
association, unincorporated organization, association, estate, company, partnership, individual or
family trust, limited liability company or Governmental Authority or any agency or political
subdivision thereof.

     “Post-Petition Interest” means any interest or entitlement to fees or expenses or
other charges that accrues after the commencement of any Insolvency or Liquidation Proceeding,
whether or not allowed or allowable as a claim in any such Insolvency or Liquidation Proceeding.

     “Recovery” has the meaning assigned to such term in Section 5.5.

     “Reorganization Securities” has the meaning set forth in Section 5.12.

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     “Second-Priority Agreement” means the collective reference to (a) the Second-Priority
Indenture, (b) any Additional Second-Priority Agreement and (c) 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, replace, refinance or refund in whole or in part the indebtedness and other obligations
outstanding under the Second-Priority Indenture, any Additional Second-Priority Agreement or any
other agreement or instrument referred to in this clause (c); provided that the Company
shall have delivered to each Collateral Agent (i) true and complete copies of such agreement and
security documents relating to such agreement, certified as being true and correct by an
authorized officer of the Company and (ii) a certificate of an authorized officer describing the
obligations incurred pursuant to such agreement to be designated as Second-Priority Obligations and
the initial aggregate principal amount or face amount thereof and certifying that such obligations
are permitted to be incurred and secured on a pari passu basis with the then extant Second-Priority
Obligations by the terms of each then extant First-Priority Agreement and Second-Priority
Agreement. Any reference to the First-Priority Agreement hereunder shall be deemed a reference to
any First-Priority Agreement then extant. Any reference to the Second-Priority Agreement hereunder
shall be deemed a reference to any Second-Priority Agreement then extant.

     “Second-Priority Collateral” means all assets, whether now owned or hereafter acquired
by either of the Issuers or any other Grantor, in which a Lien is granted or purported to be
granted to any Second-Priority Secured Party as security for any Second-Priority Obligation.

     “Second-Priority Collateral Agent” means the Existing Second-Priority Collateral Agent
and any Additional First-Priority Collateral Agent.

     “Second-Priority Creditors” means the Second-Priority Trustee, the Second-Priority
Collateral Agent and the “Holders” (as defined in the Second-Priority Indenture), or any Persons
that are designated under the Second-Priority Documents as creditors entitled to benefit from the
Liens on the Second-Priority Collateral under the Second-Priority Security Documents.

     “Second-Priority Documents” means each Second-Priority Agreement, each Second-Priority
Security Document and each Second-Priority Guarantee.

     “Second-Priority Guarantee” means any guarantee by any Grantor of any or all of the
Second-Priority Obligations.

     “Second-Priority Indenture” has meaning assigned to such term in the recitals hereto.

     “Second-Priority Lien” means any Lien created by the Second-Priority Security
Documents.

     “Second-Priority Notes” means the 12% Second-Priority Secured Notes due 2017 issued
pursuant to the Second-Priority Indenture.

     “Second-Priority Obligations” (i) all Obligations under the Second-Priority Indenture
and (ii) all Obligations under any other Second-Priority Agreement which are secured by a Lien on
the Common Collateral that has Pari Passu Lien Priority with respect to the Lien securing the
Obligations under the Second-Priority Indenture and the Second-Priority Notes. “Second-Priority
Obligations” shall in any event include (a) all interest accrued or accruing, or which would
accrue, absent commencement of an Insolvency or Liquidation Proceeding (and the effect of
provisions such as Section 502(b)(2) of the Bankruptcy Code), on or after the commencement of an
Insolvency or Liquidation Proceeding in accordance with the rate specified in the relevant document
or instrument governing such Second-Priority Obligations, whether or not the claim for such
interest is allowed or allowable as a claim in such Insolvency or

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Liquidation Proceeding, (b) any
and all fees and expenses (including attorneys’ and/or financial consultants’ fees and expenses)
incurred by the Second-Priority Representative and the holders of such Second-Priority Obligations
on or after the commencement of an Insolvency or Liquidation Proceeding, whether or not the claim
for fees and expenses is allowed or allowable under Section 502 or 506(b) of the Bankruptcy Code or
any other provision of the Bankruptcy Law as a claim in such Insolvency or Liquidation Proceeding,
and (c) all obligations and liabilities of the Issuers and each other Grantor under each document
or instrument governing Second-Priority Obligations to which it is a party which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due and payable.

     “Second-Priority Representative” means, as between collateral agents representing
different series of Second-Priority Obligations, the collateral agent representing the series of
Second-Priority Obligations with the greatest outstanding principal amount.

     “Second-Priority Secured Party” means the Second-Priority Representative, the
Second-Priority Creditors and any other holders of the Second-Priority Obligations.

     “Second-Priority Security Documents” means the security agreements, pledge agreements,
deeds to secure debt, collateral assignments and related agreements (including, without limitation,
finance statements under the Uniform Commercial Code of the relevant states), as amended,
supplemented, restated, renewed, refunded, replaced, restructured, repaid, refinanced or otherwise
modified from time to time, creating the security interests in the Common Collateral as
contemplated by the Second-Priority Indenture and any other documents that are designated under the
Second-Priority Agreement as “Second-Priority Security Documents” for purposes of this Agreement;
provided that no document that is not entered into pursuant to the November 2009 Indenture,
the December 2009 Indenture and the Second-Priority Indenture will constitute a Second-Priority
Security Document unless the treatment of such document as a Second-Priority Security Document is
permitted under each First-Priority Agreement and Second-Priority Agreement then extant, including,
as of the date hereof and any other date if then extant, the November 2009 Indenture, the December
2009 Indenture and the Second-Priority Indenture.

     “Second-Priority Trustee” has the meaning assigned to such term in the preamble.

     “Secured Parties” means the First-Priority Secured Parties and the Second-Priority
Secured Parties.

     “subsidiary” has the meaning specified in the Existing First-Priority Agreement.

     “Unasserted Contingent Obligations” means, at any time, First-Priority Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding (a) the
principal of, and interest and premium (if any) on, and fees and expenses relating to, any
First-Priority Obligation and (b) contingent reimbursement obligations in respect of amounts that
may be drawn under outstanding letters of credit or similar instruments) in respect of which no
assertion of liability (whether oral or written) and no claim or demand for payment (whether oral
or written) has been made (and, in the case of First-Priority Obligations for indemnification, no
notice for indemnification has been issued by the indemnitee) at such time.

     “Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to
time in the applicable jurisdiction.

     1.2. Amended Agreements. All references in this Agreement to agreements or other
contractual obligations shall, unless otherwise specified, be deemed to refer to such agreements or

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contractual obligations as amended, amended and restated, supplemented, restated or otherwise
modified from time to time in accordance with the terms of this Agreement, if applicable.

     1.3. Terms Generally. The definitions in this Section shall apply equally to both
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”. All
references herein to Sections shall be deemed references to Sections of this Agreement unless the
context shall otherwise require.

     Section 2. Lien Priorities.

     2.1. Subordination of Liens.

     (a) Any and all Liens in the Common Collateral now existing or hereafter created or
arising in favor of any Second-Priority Secured Party securing the Second-Priority Obligations,
regardless of how acquired, whether by grant, statute, operation of law, judgment rendered in any
judicial proceeding, subrogation or otherwise, are expressly junior in priority, operation and
effect to any and all Liens now existing or hereafter created or arising in favor of the
First-Priority Secured Parties securing the First-Priority Obligations, notwithstanding (i)
anything to the contrary contained in any agreement or filing to which any Second-Priority Secured
Party may now or hereafter be a party, and regardless of the time, order or method of grant,
attachment, recording or perfection of any financing statements or other security interests,
assignments, pledges, deeds, mortgages and other Liens, charges or encumbrances or any defect or
deficiency or alleged defect or deficiency in any of the foregoing, (ii) any provision of the
Uniform Commercial Code or any other applicable law or any First-Priority Document or
Second-Priority Document or any other circumstance whatsoever and (iii) the fact that any such
Liens in favor of any First-Priority Secured Party securing any of the First-Priority Obligations
are (x) subordinated to any Lien securing any obligation of any Grantor other than the
Second-Priority Obligations or (y) otherwise subordinated, voided, avoided, invalidated or lapsed.

     (b) No Second-Priority Secured Party shall object to or contest, or support any other
Person in objecting to or contesting, in any proceeding (including, without limitation, any
Insolvency or Liquidation Proceeding), the validity, extent, perfection, priority or enforceability
of any Lien on the First-Priority Collateral granted to any First-Priority Creditor.
Notwithstanding any failure by any First-Priority Secured Party to perfect its Lien on the
First-Priority Collateral granted to such First-Priority Secured Party or any avoidance,
invalidation or subordination by any third party or court of competent jurisdiction of the Lien on
the First-Priority Collateral granted to the First-Priority Secured Parties, the priority and
rights as between the First-Priority Secured Parties, on the one hand, and the Second-Priority
Secured Parties, on the other hand, with respect to the Common Collateral shall be as set forth
herein.

     2.2. Nature of First-Priority Obligations. The Second-Priority Representative on
behalf of itself and the other Second-Priority Secured Parties acknowledges that a portion of the
First-Priority Obligations represents debt that is revolving in nature and that the amount thereof
that may be outstanding at any time or from time to time may be increased or reduced and
subsequently reborrowed, and that the terms of the First-Priority Obligations may be modified,
extended or amended from time to time, and that the aggregate amount of the First-Priority
Obligations may be increased, replaced or refinanced, in each event, without notice to or consent
by the Second-Priority Secured Parties and without affecting the provisions hereof. The lien
priorities provided in Section 2.1 shall not be altered or otherwise affected by any such
amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement,
renewal, restatement or refinancing of the First-Priority Obligations, or any portion thereof, or
by any amendment, modification, supplement, extension, repayment, reborrowing, increase,

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replacement, renewal, restatement or refinancing of the Second-Priority Obligations, or any portion
thereof.

     2.3. Agreements Regarding Actions to Perfect Liens.

     (a) The Second-Priority Representative on behalf of itself and the other Second-Priority
Secured Parties agrees that UCC-1 financing statements, patent, trademark or copyright filings or
other filings or recordings filed or recorded by or on behalf of the Second-Priority Representative
shall be in form satisfactory to the First-Priority Representative.

     (b) The Issuers hereby agree, and the Second-Priority Representative acknowledges on
behalf of itself and the other Second-Priority Secured Parties, that all Second-Priority Security
Documents entered into on or about the date hereof shall contain the following notation: “The lien
and security interest created by [this Agreement] on the property described herein is junior and
subordinate, in accordance with the provisions of the Intercreditor Agreement dated as of December
9, 2010, among Wilmington Trust FSB, in its capacity as First-Priority Collateral Agent, November
2009 Trustee and First-Priority Representative, Wilmington Trust FSB, in its capacity as December
2009 Trustee, Wilmington Trust FSB, in its capacity as Second-Priority Collateral Agent,
Second-Priority Trustee and Second-Priority Representative, Clearwire Communications LLC, Clearwire
Finance, Inc. and the other Grantors referred to therein, as amended from time to time, to the
liens and security interests on such property created by any similar instrument now or hereafter
granted to Wilmington Trust FSB, as First-Priority Collateral Agent and November 2009 Trustee, and
Wilmington Trust FSB, as December 2009 Trustee, under the First-Priority Documents, and each of
their successors and assigns, in such property.” The Second-Priority Representative agrees on
behalf of itself and the other Second-Priority Secured Parties that all other Second-Priority
Security Documents shall bear an identical or, in the event that the Existing First-Priority
Agreement is no longer extant or Wilmington Trust FSB (in its capacity as First-Priority Collateral
Agent or November 2009 Trustee) or Wilmington Trust FSB (in its capacity as December 2009 Trustee),
as applicable, shall cease to be the First-Priority Representative, a substantially similar
notation.

     (c) The First-Priority Representative hereby agrees that, to the extent that it holds, or
a third party holds on its behalf, physical possession of or “control” (as defined in the Uniform
Commercial Code) (or any similar concept under foreign law) over Common Collateral pursuant to the
First-Priority Security Documents, such possession or control is also for the benefit of the
Second-Priority Representative and the other Second-Priority Secured Parties solely to the extent
required to perfect their security interest in such Common Collateral (such bailment being
intended, among other things, to satisfy the requirements of Sections 8-106(d)(3), 8-301(a)(2) and
9-313(c) of the Uniform Commercial Code). Nothing in the preceding sentence shall be construed to
impose any duty on the First-Priority Representative (or any third party acting on its behalf) with
respect to such Common Collateral or provide the Second-Priority Representative or any other
Second-Priority Secured Party with any rights with respect to such Common Collateral beyond those
specified in this Agreement and the Second-Priority Security Documents; provided that
subsequent to the occurrence of the First-Priority Obligations Payment Date, the First-Priority
Representative shall (i) deliver to the Second-Priority Representative, at the Issuers’ sole cost
and expense, the Common Collateral in its possession or control together with any necessary
endorsements to the extent required by the Second-Priority Documents or (ii) direct and deliver
such Common Collateral as a court of competent jurisdiction otherwise directs; provided,
however, that the provisions of this Agreement are intended solely to govern the respective
Lien priorities as between the First-Priority Secured Parties and the Second-Priority Secured
Parties and shall not impose on the First-Priority Secured Parties any obligations in respect of
the disposition of any Common Collateral (or any proceeds thereof) that would conflict with prior
perfected Liens or any claims thereon in favor of any other Person that is not a Secured Party.
Notwithstanding the foregoing, in the event that all of the First-Priority

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Obligations and
Second-Priority Obligations have been satisfied, such Common Collateral shall be delivered as
directed by the Issuers.

     2.4. No New Liens. So long as the First-Priority Obligations Payment Date has not
occurred, the parties hereto agree that (a) there shall be no Lien, and no Grantor shall have any
right to create any Lien, on any assets of any Grantor securing any Second-Priority Obligation if
those same assets are not subject to, and do not become subject to, a Lien securing the
First-Priority Obligations and (b) if any Second-Priority Secured Party shall acquire or hold any
Lien on any assets of any Grantor securing any Second-Priority Obligation which assets are not also
subject to the Lien of the First-Priority Representative under the First-Priority Documents, then
the Second-Priority Representative, shall be deemed to also hold and have held such Lien for the
benefit of the First-Priority Secured Parties and shall promptly notify the First-Priority
Representative of the existence of such Lien and, upon demand by the First-Priority Representative,
will without the need for any further consent of any other Second-Priority Secured Party,
notwithstanding anything to the contrary in any other Second-Priority Document, either (i) release
such Lien or (ii) assign it to the First-Priority Representative as security for the First-Priority
Obligations (in which case the Second-Priority Representative may retain a junior lien on such
assets subject to the terms hereof). To the extent that the foregoing provisions are not complied
with for any reason, without limiting any other rights and remedies available to the First-Priority
Secured Parties, the Second-Priority Representative and the other Second-Priority Secured Parties
agree that any amounts received by or distributed to any of them pursuant to or as a result of
Liens granted in contravention of this Section 2.4 shall be subject to Section 4.1.

     2.5. Further Assurances. Each of the First-Priority Representative, for itself
and on behalf of the other First-Priority Secured Parties, and the Second-Priority Representative,
for itself and on behalf of the other Second-Priority Secured Parties, and each Grantor party
hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will cause to
be executed, any and all further documents, agreements and instruments, and take all such further
actions, as may be required under any applicable law, or which the First-Priority Representative or
the Second-Priority Representative may reasonably request, to effectuate the terms of this
Agreement, including the relative Lien priorities provided for herein.

     Section 3. Enforcement Rights.

     3.1. Exclusive Enforcement. Until the First-Priority Obligations Payment Date has
occurred, whether or not an Insolvency or Liquidation Proceeding has been commenced by or against
any Grantor, the First-Priority Representative on behalf of the First-Priority Secured Parties
shall have the exclusive right to take and continue any Enforcement Action and make determinations
regarding the release, dispositions or restrictions with respect to the Common Collateral, without
any consultation with or consent of any Second-Priority Secured Party, but subject to the proviso
set forth in Section 5.1. In exercising rights and remedies with respect to the Common Collateral,
the First-Priority Secured Parties may enforce the provisions of the First-Priority Documents and
exercise remedies thereunder, all in such order and in such manner as they may determine in the
exercise of their sole discretion. Such exercise and enforcement shall include the rights of an
agent appointed by any of them to sell or otherwise dispose of the Common Collateral upon
foreclosure, to incur expenses in connection with such sale or disposition, and to exercise all
rights and remedies of a secured creditor under the Uniform Commercial Code and of a secured
creditor under the Bankruptcy Law of any applicable jurisdiction.

     3.2. Standstill and Waivers. The Second-Priority Representative, on behalf of
itself and the other Second-Priority Secured Parties, agrees that, until the First-Priority
Obligations Payment Date has occurred, subject to the proviso set forth in Section 5.1:

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     (a) they will not take or cause to be taken any action, the purpose or effect of
which is to make any Lien in respect of any Second-Priority Obligation pari passu with or
senior to, or to give any Second-Priority Secured Party any preference or priority relative
to, the Liens with respect to the First-Priority Obligations or the First-Priority Secured
Parties with respect to any of the Common Collateral;

     (b) they will not contest, oppose, object to, interfere with, hinder or delay, in
any manner, whether by judicial proceedings (including the filing of an Insolvency or
Liquidation Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or
other disposition of the Common Collateral or any other First-Priority Collateral by any
First-Priority Secured Party or any other Enforcement Action taken (or any forbearance from
taking any Enforcement Action) by or on behalf of any First-Priority Secured Party;

     (c) they have no right to (i) direct either the First-Priority Representative or
any other First-Priority Secured Party to exercise any right, remedy or power with respect
to the Common Collateral or pursuant to the First-Priority Security Documents or (ii)
consent or object to the exercise by the First-Priority Representative or any other
First-Priority Secured Party of any right, remedy or power with respect to the Common
Collateral or pursuant to the First-Priority Security Documents or to the timing or manner
in which any such right is exercised or not exercised (or, to the extent they may have any
such right described in this clause (c), whether as a junior lien creditor or otherwise,
they hereby irrevocably waive such right);

     (d) they will not institute any suit or other proceeding or assert in any suit,
Insolvency or Liquidation Proceeding or other proceeding any claim against any
First-Priority Secured Party seeking damages from or other relief by way of specific
performance, instructions or otherwise, with respect to, and no First-Priority Secured Party
shall be liable for, any action taken or omitted to be taken by any First-Priority Secured
Party with respect to the Common Collateral or pursuant to the First-Priority Documents;

     (e) they will not make any judicial or nonjudicial claim or demand or commence any
judicial or non-judicial proceedings against any Grantor or any of its subsidiaries or
affiliates under or with respect to any Second-Priority Security Document seeking payment or
damages from or other relief by way of specific performance, instructions or otherwise under
or with respect to any Second-Priority Security Document or exercise any right, remedy or
power under or with respect to, or otherwise take any action to enforce, any Second-Priority
Security Document;

     (f) they will not commence judicial or nonjudicial foreclosure proceedings with
respect to, seek to have a trustee, receiver, liquidator or similar official appointed for
or over, or attempt any action to take possession of any Common Collateral, or exercise any
right, remedy or power with respect to, or otherwise take any action to enforce their
interest in or realize upon, the Common Collateral or pursuant to the Second-Priority
Security Documents;

     (g) they will not seek, and hereby waive any right, to have the Common Collateral
or any part thereof marshaled upon any foreclosure or other disposition of the Common
Collateral and hereby waive, to the fullest extent permitted by law, any right to demand,
request, plead or otherwise assert or claim the benefit of, any marshalling, appraisal,
valuation or other similar right that may otherwise be available under applicable law with
respect to the Common Collateral or any other similar rights a junior secured creditor may
have under applicable law; and

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     (h) they will not object to the forbearance by the First-Priority Secured Parties
from bringing or pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Common Collateral or any other First-Priority Collateral.

     3.3. Judgment Creditors. In the event that any Second-Priority Secured Party
becomes a judgment lien creditor as a result of its enforcement of its rights as an unsecured
creditor, such judgment lien shall be subject to the terms of this Agreement for all purposes
(including in relation to the First-Priority Liens and the First-Priority Obligations) to the same
extent as all other Liens securing the Second-Priority Obligations are subject to the terms of this
Agreement.

     3.4. Cooperation. The Second-Priority Agent, on behalf of itself and the other
Second-Priority Secured Parties, agrees that each of them shall take such actions as the
First-Priority Representative shall request in connection with the exercise by the First-Priority
Secured Parties of their rights set forth herein.

     3.5. No Additional Rights For the Grantors Hereunder. Except as provided in
Section 3.6, if any First-Priority Secured Party or Second-Priority Secured Party shall enforce its
rights or remedies in violation of the terms of this Agreement, no Grantor shall be entitled to use
such violation as a defense to any action by any First-Priority Secured Party or Second-Priority
Secured Party, or to assert such violation as a counterclaim or basis for set off or recoupment
against any First-Priority Secured Party or Second-Priority Secured Party.

     3.6. Actions Upon Breach.

     (a) If any Second-Priority Secured Party, contrary to this Agreement, commences or
participates in any action or proceeding against any Grantor or the Common Collateral, such
Grantor, with the prior written consent of the First-Priority Representative, may interpose as a
defense or dilatory plea the making of this Agreement, and any First-Priority Secured Party may
intervene and interpose such defense or plea in its or their name or in the name of such Grantor.

     (b) Should any Second-Priority Secured Party, contrary to this Agreement, in any way take,
attempt to take or threaten to take any action with respect to the Common Collateral (including any
attempt to realize upon or enforce any remedy with respect to this Agreement), or take any other
action in violation of this Agreement, or fail to take any action required by this Agreement, this
Agreement shall create an irrebuttable presumption and admission by such Second-Priority Secured
Party that any First-Priority Secured Party (in its own name or in the name of the relevant
Grantor) or the relevant Grantor may obtain relief against such Second-Priority Secured Party by
injunction, specific performance and/or other appropriate equitable relief, it being understood and
agreed by the Second-Priority Representative on behalf of each Second-Priority Secured Party that
(i) the First-Priority Secured Parties’ damages from such actions of any Second-Priority Secured
Party may at that time be difficult to ascertain and may be irreparable and the harm to the
First-Priority Secured Parties may not be adequately compensated in damages and (ii) each
Second-Priority Secured Party waives any defense that the Grantors and/or the First-Priority
Secured Parties cannot demonstrate damage and/or be made whole by the awarding of damages.

     Section 4. Application Of Proceeds Of Common Collateral; Dispositions And Releases Of
Common Collateral; Inspection and Insurance.

     4.1. Application of Proceeds; Turnover Provisions. All proceeds of Common
Collateral (including any interest earned thereon) resulting from the sale, collection or other
disposition of Common Collateral resulting from any Enforcement Action or that occurs after any
Event of Default (as defined in the First-Priority Documents), whether or not pursuant to an
Insolvency or Liquidation Proceeding, or

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during the pendency of any Insolvency or Liquidation
Proceeding shall be distributed as follows: first to the First-Priority Representative for
application to the First-Priority Obligations in accordance with the terms of the First-Priority
Documents, until the First-Priority Obligations Payment Date has occurred and thereafter,
to the Second-Priority Representative for application in accordance with the terms of the
Second-Priority Documents. Until the occurrence of the First-Priority Obligations Payment Date,
any Common Collateral, including any Common Collateral constituting proceeds, that may be received
by any Second-Priority Secured Party in violation of this Agreement shall be segregated and held in
trust and promptly paid over to the First-Priority Representative, for the benefit of the
First-Priority Secured Parties, in the same form as received, with any necessary endorsements, and
each Second-Priority Secured Party hereby authorizes the First-Priority Representative to make any
such endorsements as agent for the Second-Priority Representative (which authorization, being
coupled with an interest, is irrevocable).

     4.2. Releases of Second-Priority Lien.

     (a) Upon (i) any sale or other disposition of Common Collateral permitted pursuant to the
terms of the First-Priority Documents that results in the release of the First-Priority Lien on any
Common Collateral (including any sale or other disposition pursuant to any Enforcement Action) or
(ii) any other release of Common Collateral from the Lien under the First-Priority Security
Documents that is permitted pursuant to the terms of the First-Priority Documents, the
Second-Priority Lien on such Common Collateral (excluding any portion of the proceeds of such
Common Collateral remaining after the First-Priority Obligations Payment Date occurs) shall be
automatically and unconditionally released with no further consent or action of any Person.

     (b) The Second-Priority Representative shall promptly execute and deliver such release
documents and instruments and shall take such further actions as the First-Priority Representative
shall request to evidence any release of the Second-Priority Lien described in paragraph (a) of
this Section 4.2. The Second-Priority Representative hereby appoints the First-Priority
Representative and any officer or duly authorized person of the First-Priority Representative, with
full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power of
attorney in the place and stead of the Second-Priority Representative and in the name of the
Second-Priority Representative or in the First-Priority Representative’s own name, from time to
time, in the First-Priority Representative’s sole discretion, for the purposes of carrying out the
terms of this Section 4.2, to take any and all appropriate action and to execute and deliver any
and all documents and instruments as may be necessary or desirable to accomplish the purposes of
this Section 4.2, including any financing statements, endorsements, assignments, releases or other
documents or instruments of transfer (which appointment, being coupled with an interest, is
irrevocable).

     4.3. Inspection Rights and Insurance.

     (a) As between any First-Priority Secured Party and any Second-Priority Secured Party and
subject to the terms of any First-Priority Agreement, any First-Priority Secured Party and its
representatives and invitees may at any time inspect, repossess, remove and otherwise deal with the
Common Collateral, and the First-Priority Representative may advertise and conduct public auctions
or private sales of the Common Collateral, in each case without notice to, the involvement of or
interference by any Second-Priority Secured Party or liability to any Second-Priority Secured
Party.

     (b) Until the First-Priority Obligations Payment Date has occurred, the First-Priority
Representative will have the sole and exclusive right (i) to be named as additional insured and
loss payee under any insurance policies maintained from time to time by any Grantor (except that
the Second-Priority Representative shall have the right to be named as additional insured and loss
payee so long as its Second-

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Priority status is identified in a manner satisfactory to the
First-Priority Representative), (ii) to adjust or settle any insurance policy or claim covering the
Common Collateral in the event of any loss thereunder and (iii) to approve any award granted in any
condemnation or similar proceeding affecting the Common Collateral.

     4.4. Rights as Unsecured Creditors. Subject to the term of the Second-Priority
Indenture, the Second-Priority Representative and the other Second-Priority Secured Parties may
exercise rights and remedies as unsecured creditors against the Issuers or any other Grantor that
has guaranteed the Second-Priority Obligations in accordance with the terms of the Second-Priority
Documents, including the acceleration of any Indebtedness or other obligations owing under the
Second-Priority Documents or the demand for payment under the guarantee in respect thereof, in each
case in accordance with the terms of the applicable Second-Priority Documents and applicable law
and not otherwise inconsistent with the terms of this Agreement. Subject to the term of the
Second-Priority Indenture, nothing in this Agreement shall prohibit the receipt by any
Second-Priority Representative or any other Second-Priority Secured Party of the required payments
of interest and principal so long as such receipt is not the direct or indirect result of (a) the
exercise by any Second-Priority Representative or any other Second-Priority Secured Party of rights
or remedies as a secured creditor in respect of Common Collateral or other collateral or (b) the
enforcement in contravention of this Agreement of any Lien in respect of Second-Priority Liens held
by any of them. Nothing in this Agreement impairs or otherwise adversely affects any rights or
remedies the First-Priority Representative or the other First-Priority Secured Parties may have
with respect to the First-Priority Collateral. Notwithstanding anything herein to the contrary,
nothing in this Agreement shall impair or otherwise adversely affect the rights or remedies the
First-Priority Representative or the other First-Priority Secured Parties may have pursuant to the
subordination provisions in the Second-Priority Indenture or any other Second-Priority Document.
In the event of any conflict between this Agreement and such subordination provisions, any such
conflict shall be interpreted in favor of the First-Priority Secured Parties as granting them the
maximum rights and recovery available under such subordination provisions and this Agreement.

     Section 5. Insolvency or Liquidation Proceedings.

     5.1. Filing of Motions. Until the First-Priority Obligations Payment Date has
occurred, the Second-Priority Representative agrees on behalf of itself and the other
Second-Priority Secured Parties that, with the prior written consent of the First-Priority
Representative, no Second-Priority Secured Party shall, in or in connection with any Insolvency or
Liquidation Proceeding, file any pleading or motion, take any position at any hearing or proceeding
of any nature, or otherwise take any action whatsoever, in each case in respect of any of the
Common Collateral, including with respect to the determination of any Liens or claims (including
the validity and enforceability thereof) held by the First-Priority Representative or any other
First-Priority Secured Party or the value of any claims of such parties under Section 506(a) of the
Bankruptcy Code or otherwise; provided that notwithstanding anything herein to the
contrary, (a) in any Insolvency or Liquidation Proceeding, the Second-Priority Representative may
file a proof of claim or statement of interest with respect to the applicable Second-Priority Liens
and (b) the Second-Priority Representative may (i) take any such action (not adverse to the
First-Priority Liens on the Common Collateral securing the First-Priority Obligations, or the
rights of either the First-Priority Representative or the other First-Priority Secured Parties to
exercise remedies in respect thereof) to the extent required to create, prove, perfect, preserve or
protect (but not enforce) its rights in, and perfection and priority of its Liens on, the Common
Collateral, or (ii) otherwise 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 its claims, in each case of (a) and (b) above, to the extent
such action is not inconsistent with, and could not result in a resolution inconsistent with, the
terms of this Agreement.

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     5.2. Financing Matters. If any Grantor becomes subject to any Insolvency or
Liquidation Proceeding, and if the First-Priority Representative (acting at the direction of the
requisite First-Priority Secured Parties) desires to consent (or not object) to the use of cash
collateral under the Bankruptcy Code or any other Bankruptcy Law or to provide financing to any
Grantor under Section 363 or Section 364 of the Bankruptcy Code or any other similar provision in
any Bankruptcy Law or to consent (or not object) to the provision of such financing (including
financing that primes or takes priority over existing Liens) to any Grantor by any third party (any
such financing, “DIP Financing”), then the Second-Priority Representative agrees, on behalf of
itself and the other Second-Priority Secured Parties, that each Second-Priority Secured Party (a)
will be deemed to have consented to, will raise no objection to, and will not support any other
Person objecting to, the use of such cash collateral or to such DIP Financing, provided that such
parties receive adequate protection in a manner otherwise consistent with the terms of this
Agreement, (b) will not request adequate protection or any other relief in connection with the use
of such cash collateral or such DIP Financing except as set forth in Section 5.4, (c) will
subordinate (and will be deemed hereunder to have subordinated) the Second-Priority Liens or claims
(i) to any additional or replacement Liens, cash payments, or claims provided as adequate
protection to the First-Priority Secured Parties on the same terms as the Second-Priority Liens,
right to cash payments, or claims are subordinated to the First-Priority Liens, right to cash
payments, or claims under this Agreement and (ii)(x) to the Liens, right to cash payments, or
claims securing such DIP Financing (and the Liens securing the Second-Priority Obligations shall
have the same priority with respect to the Common Collateral relative to the Liens securing the
First-Priority Obligations as if such DIP Financing had not occurred), (y) to any “carve-out”
agreed to by the First-Priority Representative or the other First-Priority Secured Parties and (z)
in the case of any Insolvency or Liquidation Proceeding outside the United States, to any
administrative or other charges granted in such Insolvency or Liquidation Proceeding that are
similar in nature to a “carve-out” and agreed to by the First-Priority Representative or the other
First-Priority Secured Parties, in the case of each of clauses (ii) (x), (y) and (z), with such
subordination to be on the same terms as the First-Priority Liens or claims are subordinated
thereto (and such subordination will not alter in any manner the terms of this Agreement), (d) will
be deemed to have consented to, and will raise no objection to, and will not support any other
Person objecting to (i) any motion for relief from the automatic stay or from any injunction
against foreclosure or enforcement in respect of the First-Priority Obligations made by the
First-Priority Representative or any First-Priority Secured Party, (ii) any lawful exercise by the
First-Priority Representative or any other First-Priority Secured Party of the right to credit bid
any First-Priority Obligations at any sale in foreclosure of First-Priority Collateral or (iii) any
other request for judicial relief made in any court by the First-Priority Representative or any
other First-Priority Secured Party relating to the lawful enforcement of any First-Priority Lien.

     5.3. Relief From the Automatic Stay. The Second-Priority Representative agrees,
on behalf of itself and the other Second-Priority Secured Parties, that none of them will seek
relief from the automatic stay or from any other stay in any Insolvency or Liquidation Proceeding
or take any action in derogation thereof, in each case in respect of any Common Collateral, without
the prior written consent of the First-Priority Representative.

     5.4. Adequate Protection. The Second-Priority Representative, on behalf of itself
and the other Second-Priority Secured Parties, agrees that none of them shall object to, contest,
or support any other Person objecting to or contesting (a) any request by the First-Priority
Representative or the other First-Priority Secured Parties for adequate protection or any adequate
protection provided to the First-Priority Representative or the other First-Priority Secured
Parties or (b) any objection by the First-Priority Representative or any other First-Priority
Secured Parties to any motion, relief, action or proceeding based on a claim of a lack of adequate
protection or (c) the payment of interest, fees, expenses, costs, charges or other amounts to the
First-Priority Representative or any other First-Priority Secured Party under Section 506(b) or
506(c) of the Bankruptcy Code or otherwise. Notwithstanding anything contained in this Section and
in Section 5.2(b) (but subject to all other provisions of this Agreement,

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including Sections 5.2(a)
and 5.3), in any Insolvency or Liquidation Proceeding, (i) if the First-Priority Secured Parties
(or any subset thereof) are granted adequate protection that includes additional or replacement
collateral (with replacement Liens on such additional collateral), cash payments, or claims in
connection with any DIP Financing or use of cash collateral, then in connection with any such DIP
Financing or use of cash collateral the Second-Priority Representative, on behalf of itself and any
of the other Second-Priority Secured Parties, may seek adequate protection consisting of an
additional or replacement Lien on the same collateral, cash payment, or claim (as applicable),
subordinated to the Liens, cash payments, or claims (as applicable) securing (1) such DIP Financing
on the same terms as the First-Priority Liens or claims are subordinated thereto (and such
subordination will not alter in any manner the terms of this Agreement), and (2) the First-Priority
Obligations on the same basis as the other Liens, cash payments, or claims (as applicable) securing
the Second-Priority Obligations are so subordinated to the First-Priority Obligations under this
Agreement and (ii) in the event the Second-Priority Representative, on behalf of itself and the
other Second-Priority Secured Parties, seeks or accepts adequate protection in accordance with
clause (i) above in the form of additional or replacement collateral, cash payments, or claims,
then the Second-Priority Representative, on behalf of itself or any of the other Second-Priority
Secured Parties, agrees that the First-Priority Representative shall also be granted a senior Lien
on such collateral, right to cash payment, or claims (as applicable) as security for the
First-Priority Obligations and any such DIP Financing and that any Lien, cash payment, or claim (as
applicable) on such collateral securing the Second-Priority Obligations shall be subordinated to
(A) the Liens on such collateral securing the First-Priority Obligations and any other Liens, cash
payment, or claims granted to the First-Priority Secured Parties as adequate protection on the same
terms that the Liens, right to cash payment, or claims securing the Second-Priority Obligations are
subordinated to such First-Priority Obligations under this Agreement and (B) (x) the Liens or
claims on such collateral securing such DIP Financing (and all obligations relating thereto), (y)
any “carve-out” agreed to by the First-Priority Representative or the other First-Priority Secured
Parties and (z) in the case of any Insolvency or Liquidation Proceeding outside the United States,
any administrative or other charges granted in any Insolvency or Liquidation Proceeding that are
similar in nature to a “carve-out” and agreed to by the First-Priority Representative or the other
First-Priority Secured Parties, in the case of each of clauses (B) (x), (y) and (z), with such
subordination to be on the same terms as the Liens or claims securing the First-Priority
Obligations are subordinated thereto (and such subordination will not alter in any manner the terms
of this Agreement). The Second-Priority Representative, on behalf of itself and the other
Second-Priority Secured Parties, agrees that except as expressly set forth in this Section 5.4, and
except for adequate protection in the form of access to information to the extent such access is
also made available to the First-Priority Representative on behalf of itself and the other
First-Priority Secured Parties, none of them shall seek adequate protection without the prior
written consent of the First-Priority Representative.

     5.5. Avoidance Issues. If any First-Priority Secured Party is required in any
Insolvency or Liquidation Proceeding or otherwise to disgorge, turn over or otherwise pay to the
bankruptcy trustee or the estate of any Grantor, because such amount was avoided or ordered to be
paid or disgorged for any reason, including because it was found to be a fraudulent or preferential
transfer, any amount (a “Recovery”), whether received as proceeds of security, enforcement
of any right of set-off or otherwise, then the First-Priority Obligations shall be reinstated to
the extent of such Recovery and deemed to be outstanding as if such payment had not occurred and
the First-Priority Obligations Payment Date, if it shall otherwise have occurred, shall be deemed
not to have occurred. 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.
The Second-Priority Secured Parties agree that none of them shall be entitled to benefit from any
avoidance action affecting or otherwise relating to any distribution or allocation made in
accordance with this Agreement, whether by preference or otherwise, it being understood and agreed
that

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the benefit of such avoidance action otherwise allocable to them shall instead be allocated
and turned over for application in accordance with the priorities set forth in this Agreement.

     5.6. Asset Dispositions in an Insolvency or Liquidation Proceeding. Neither the
Second-Priority Representative nor any other Second-Priority Secured Party shall, in an Insolvency
or Liquidation Proceeding or otherwise, oppose any sale or other disposition of any assets of any
Grantor that is supported by the First-Priority Secured Parties, and the Second-Priority
Representative and each other Second-Priority Secured Party will be deemed to have consented under
Section 363 of the Bankruptcy Code (and otherwise) to any such sale or other disposition of assets
supported by the First-Priority Secured Parties and to have released their Liens on such assets;
provided, to the extent such sale is to be free and clear of Liens, that the Liens securing
the First-Priority Obligations and the Second-Priority Obligations will attach to the proceeds of
the sale on the same basis of priority as the Liens released on the assets sold and further
provided that they may assert any such objection that could be asserted by an unsecured creditor
(without limiting the foregoing, neither the Second-Priority Representative nor any other
Second-Priority Secured Party may raise any objections based on rights afforded by Sections 363(e)
and (f) of the Bankruptcy Code to secured creditors (or any comparable provision of any other
Bankruptcy Law) with respect to the Liens granted to such person in respect of such assets).

     5.7. Separate Grants of Security and Separate Classification. Each
Second-Priority Secured Party acknowledges and agrees that (a) the grants of Liens pursuant to the
First-Priority Security Documents and the Second-Priority Security Documents constitute two
separate and distinct grants of Liens and (b) because of, among other things, their differing
rights in the Common Collateral, the Second-Priority Obligations are fundamentally different from
the First-Priority Obligations and must be separately classified in any plan of reorganization
proposed or adopted in an Insolvency or Liquidation Proceeding. To further effectuate the intent
of the parties as provided in the immediately preceding sentence, if it is held that the claims of
the First-Priority Secured Parties and Second-Priority Secured Parties in respect of the Common
Collateral constitute only one class of secured claims (rather than separate classes of senior and
junior secured claims), then the Second-Priority Secured Parties hereby acknowledge and agree that
all distributions shall be made as if there were separate classes of senior and junior secured
claims against the Grantors in respect of the Common Collateral (with the effect being that, to the
extent that the aggregate value of the Common Collateral is sufficient (for this purpose ignoring
all claims held by the Second-Priority Secured Parties), the First-Priority Secured Parties shall
be entitled to receive, in addition to amounts distributed to them in respect of principal,
pre-petition interest and other claims, all amounts owing in respect of Post-Petition Interest
(whether or not such Post-Petition interest is allowed or would be allowable in whole or in part in
any such Insolvency or Liquidation Proceeding) before any distribution is made in respect of the
claims held by the Second-Priority Secured Parties, with the Second-Priority Secured Parties hereby
acknowledging and agreeing to turn over to the First-Priority Secured Parties 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 Second-Priority
Secured Parties), and that, until turned over to the First-Priority Secured Parties, such amounts
will be held in trust for the First-Priority Secured Parties.

     5.8. No Waivers of Rights of First-Priority Secured Parties. Nothing contained
herein shall prohibit or in any way limit the First-Priority Representative or any other
First-Priority Secured Party from objecting in any Insolvency or Liquidation Proceeding or
otherwise to any action taken by any Second-Priority Secured Party not expressly permitted
hereunder, including the seeking by any Second-Priority Secured Party of adequate protection
(except as provided in Section 5.4) or the asserting by any Second-Priority Secured Party of any of
its rights and remedies under the Second-Priority Documents or otherwise.

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     5.9. Plans of Reorganization. No Second-Priority Secured Party shall support or
vote in favor of any plan of reorganization (and each shall be deemed to have voted to reject any
plan of reorganization) unless such plan (a) pays off, in cash in full, all First-Priority
Obligations or (b) is accepted by the class of holders of First-Priority Obligations voting thereon
under section 1126 of the Bankruptcy Code.

     5.10. [Reserved].

     5.11. 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 to any of the Issuers or any Grantor herein
shall apply to any trustee for such Person and such Person as debtor in possession. The relative
rights as to the Common Collateral and other collateral and proceeds thereof shall continue after
the filing thereof on the same basis as prior to the date of the petition, subject to any court
order approving the financing of, or use of cash collateral by, any such Person.

     5.12. Reorganization Securities. If, in any Insolvency or Liquidation Proceeding,
debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized
debtor (“Reorganization Securities”) are distributed, pursuant to a plan of reorganization
or similar dispositive restructuring plan, on account of the Second-Priority Obligations, then the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt obligations. In no event
shall the Second-Priority Creditors be required to turn over to the First-Priority Representative
or any other First-Priority Secured Party any Reorganization Securities to the extent the same are
subject to this Section 5.12.

     5.13. Post-Petition Claims. None of the Second-Priority Representative, the
Second-Priority Trustee or any Second-Priority Secured Party shall oppose or seek to challenge any
claim by the First-Priority Representative or any other First-Priority Secured Party for allowance
in any Insolvency or Liquidation Proceeding of First-Priority Obligations consisting of
Post-Petition Interest or indemnities to the extent of the value of the Liens in favor of the
First-Priority Representative and the other First-Priority Secured Parties, without regard to the
existence of the Liens of the Second-Priority Representative on behalf of the Second-Priority
Secured Parties on the Common Collateral. The Second-Priority Representative, the Second-Priority
Trustee or any Second-Priority Secured Party may, with the prior written consent of the
First-Priority Representative, seek to assert a claim for allowance in any Insolvency or
Liquidation Proceeding of Second-Priority Obligations consisting of Post-Petition Interest or
indemnities.

     5.14. Waivers. Until the First-Priority Obligations Payment Date, the
Second-Priority Representative, on behalf of itself and each Second-Priority Secured Party, agrees
that (a) it will not assert or enforce any claim under Section 506(c) of the Bankruptcy Code senior
to or on a parity with the Liens securing the First-Priority Obligations for costs or expenses of
preserving or disposing of any Common Collateral or other collateral and (b) waives any claim it
may now or hereafter have arising out of the election by any First-Priority Creditor of the
application of Section 1111(b)(2) of the Bankruptcy Code.

     Section 6. Second-Priority Documents and First-Priority Documents.

     (a) Each Grantor and the Second-Priority Representative, on behalf of itself and the other
Second-Priority Secured Parties, agrees that it shall not at any time execute or deliver any
amendment or other modification to any of the Second-Priority Documents in violation of this
Agreement.

-19-

 

     (b) Each Grantor and the First-Priority Representative, on behalf of itself and the
other First-Priority Secured Parties, agrees that it shall not at any time execute or deliver any
amendment or other modification to any of the First-Priority Documents in violation of this
Agreement.

     (c) In the event the First-Priority Representative enters into any amendment, waiver or
consent in respect of any of the First-Priority Security Documents for the purpose of adding to, or
deleting from, or waiving or consenting to any departures from any provisions of, any
First-Priority Security Document or changing in any manner the rights of any parties thereunder,
then such amendment, waiver or consent shall apply automatically to any comparable provision of the
Comparable Second-Priority Security Document without the consent of or action by any
Second-Priority Secured Party (with all such amendments, waivers and modifications subject to the
terms hereof); provided that (other than with respect to amendments, modifications or
waivers that secure additional extensions of credit and add additional secured creditors and do not
violate the express provisions of the Second-Priority Agreements), (i) no such amendment, waiver or
consent shall have the effect of removing assets subject to the Lien of any Second-Priority
Security Document, except to the extent that a release of such Lien is permitted by Section 4.2,
(ii) any such amendment, waiver or consent that materially and adversely affects the rights of the
Second-Priority Secured Parties and does not affect the First-Priority Secured Parties in a like or
similar manner shall not apply to the Second-Priority Security Documents without the consent of the
Second-Priority Representative and (iii) notice of such amendment, waiver or consent shall be given
to the Second-Priority Representative no later than 15 days after its effectiveness; provided that
the failure to give such notice shall not affect the effectiveness and validity thereof.

     Section 7. Reliance; Waivers; etc.

     7.1. Reliance. The First-Priority Documents are deemed to have been executed and
delivered, and all extensions of credit thereunder are deemed to have been made or incurred, in
reliance upon this Agreement. The Second-Priority Representative, on behalf of it itself and the
other Second-Priority Secured Parties, expressly waives all notice of the acceptance of and
reliance on this Agreement by the First-Priority Secured Parties. The Second-Priority Documents
are deemed to have been executed and delivered and all issuances of debt and other extensions of
credit thereunder are deemed to have been made or incurred, in reliance upon this Agreement. The
First-Priority Representative expressly waives, on behalf of itself and all the other
First-Priority Secured Parties, all notices of the acceptance of and reliance by the
Second-Priority Representative and the other Second-Priority Secured Parties.

     7.2. No Warranties or Liability. The Second-Priority Representative and the
First-Priority Representative acknowledge and agree that neither has made any representation or
warranty with respect to the execution, validity, legality, completeness, collectability or
enforceability of any other First-Priority Document or any Second-Priority Document. Except as
otherwise provided in this Agreement, the Second-Priority Representative and the First-Priority
Representative will be entitled to manage and supervise their respective extensions of credit to
any Grantor in accordance with law and their usual practices, modified from time to time as they
deem appropriate.

     7.3. No Waivers. No right or benefit of any party hereunder shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of such party or any other
party hereto or by any noncompliance by any Grantor with the terms and conditions of any of the
First-Priority Documents or the Second-Priority Documents.

-20-

 

     Section 8. Obligations Unconditional.

     8.1. First-Priority Obligations Unconditional. All rights and interests of the
First-Priority Secured Parties hereunder, and all agreements and obligations of the Second-Priority
Secured Parties (and, to the extent applicable, the Grantors) hereunder, shall remain in full force
and effect irrespective of:

     (a) any lack of validity or enforceability of any First-Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of, all
or any portion of the First-Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any First-Priority Document;

     (c) prior to the First-Priority Obligations Payment Date, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Common Collateral or
any other collateral, or any release, amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of
all or any portion of the First-Priority Obligations or any guarantee or guaranty thereof;
or

     (d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Grantor in respect of the First-Priority Obligations, or of any
Second-Priority Secured Party, or any Grantor, to the extent applicable, in respect of this
Agreement.

     8.2. Second-Priority Obligations Unconditional. All rights and interests of the
Second-Priority Secured Parties hereunder, and all agreements and obligations of the First-Priority
Secured Parties (and, to the extent applicable, the Grantors) hereunder, shall remain in full force
and effect irrespective of:

     (a) any lack of validity or enforceability of any Second-Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of, all
or any portion of the Second Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any Second-Priority Document;

     (c) any exchange, release, voiding, avoidance or non-perfection of any security
interest in any Common Collateral or any other collateral, or any release, amendment, waiver
or other modification, whether by course of conduct or otherwise, or any refinancing,
replacement, refunding or restatement of all or any portion of the Second-Priority
Obligations or any guarantee or guaranty thereof; or

     (d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Grantor in respect of the Second Priority Obligations, or of any
First-Priority Secured Party, or any Grantor, to the extent applicable, in respect of this
Agreement.

     Section 9. Miscellaneous.

     9.1. Conflicts. In the event of any conflict between the provisions of this Agreement
and the provisions of any First-Priority Document or any Second-Priority Document, the provisions
of this Agreement shall govern.

-21-

 

     9.2. Continuing Nature of Provisions. This Agreement shall continue to be effective,
and shall not be revocable by any party hereto, until the First-Priority Obligations Payment Date
shall have occurred, subject to Section 5.5. This is a continuing agreement and the First-Priority
Secured Parties and the Second-Priority Secured Parties may continue, at any time and without
notice to the other parties hereto, to extend credit and other financial accommodations, lend
monies and provide indebtedness to, or for the benefit of, any Issuer or any other Grantor on the
faith hereof.

     9.3. Amendments; Waivers. i) No amendment or modification of any of the provisions
of this Agreement shall be effective unless the same shall be in writing and signed by the
First-Priority Representative and the Second-Priority Representative, and, in the case of
amendments or modifications of Sections 3.5, 3.6, 9.5 or 9.6 that directly affect the rights or
obligations of any Grantor, such Grantor.

     (a) It is understood that the First-Priority Representative and the Second-Priority
Representative, without the consent of each other or any other First-Priority Secured Party or
Second-Priority Secured Party may in their discretion determine that a supplemental agreement
(which may take the form of an amendment and restatement of this Agreement) is necessary or
appropriate to facilitate having additional indebtedness or other obligations (“Additional
Debt”) of any of the Grantors become First-Priority Obligations or Second-Priority Obligations,
as the case may be, under this Agreement, which supplemental agreement shall specify whether such
Additional Debt constitutes First-Priority Obligations or Second-Priority Obligations;
provided that, such Additional Debt is permitted to be incurred by the First-Priority
Agreement and Second-Priority Agreement then extant, and is permitted by said Agreements to be
subject to the provisions of this Agreement as First-Priority Obligations or Second-Priority
Obligations, as applicable.

     (b) In addition, at the request of the Issuers, the November 2009 Trustee, the First-Priority
Collateral Agent, the December 2009 Trustee, the Second-Priority Trustee and the Second-Priority
Collateral Agent agree to enter into any amendment to this Agreement or any new intercreditor
agreement in order to (1) facilitate Additional Debt becoming First-Priority Obligations or
Second-Priority Obligations to the extent such Obligations are permitted by the First-Priority
Agreement and the Second-Priority Agreement, with the Lien priority contemplated by such amendment,
(2) document the relationship among Second-Priority Creditors pursuant to different Second-Priority
Agreements, including, to the extent permitted under each extant First-Priority Agreement and
Second-Priority Agreement, the treatment of the Liens securing Second-Priority Obligations under
any Additional Second-Priority Agreement as equal and ratable with the Liens securing the
Second-Priority Obligations under the Second-Priority Indenture or any other Additional
Second-Priority Agreement and (3) document the relationship between the First-Priority Creditors
and the Second-Priority Creditors in case any then existing First-Priority Agreement or
Second-Priority Agreement is refinanced or replaced or the November 2009 Trustee, the
First-Priority Collateral Agent, the December 2009 Trustee, the Second-Priority Trustee or the
Second-Priority Collateral Agent is replaced; provided, that, in any case, the terms of
such amendment or new agreement will contain terms substantially the same as the terms contained in
this Agreement.

     9.4. Information Concerning Financial Condition of the Issuers and the other Grantors.
Each of the Second-Priority Creditors and the First-Priority Creditors shall be responsible for
keeping itself informed of the financial condition of the Issuers and each of the other Grantors
and all other circumstances bearing upon the risk of nonpayment of the First-Priority Obligations
or the Second-Priority Obligations. The Second-Priority Representative and the First-Priority
Representative hereby agree that no party shall have any duty to advise any other party of
information known to it regarding such condition or any such circumstances. In the event the
Second-Priority Representative or the First-Priority Representative, in its sole discretion,
undertakes at any time or from time to time to provide any information to any other party to this
Agreement, it shall be under no obligation (a) to provide any such

-22-

 

information to such other party or any other party on any subsequent occasion, (b) to
undertake any investigation, or (c) to disclose any other information.

     9.5. Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York, except as otherwise required by mandatory provisions of law
and except to the extent that remedies provided by the laws of any jurisdiction other than the
State of New York are governed by the laws of such jurisdiction.

     9.6. Submission to Jurisdiction.

     (a) Each First-Priority Secured Party, each Second-Priority Secured Party and each Grantor
hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment pursuant to any such action or proceeding, and each such
party hereby irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in such New York State or, to the extent permitted by
law, in such Federal court. Each such party agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that any
First-Priority Secured Party or Second-Priority Secured Party may otherwise have to bring any
action or proceeding against any Grantor or its properties in the courts of any jurisdiction.

     (b) Each First-Priority Secured Party, each Second-Priority Secured Party and each Grantor
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, (i) any objection it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any court referred to in paragraph (a)
of this Section and (ii) the defense of an inconvenient forum to the maintenance of such action or
proceeding.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.7. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     9.7. Notices. 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, telecopied, or sent by overnight express courier service or United States mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or five days after deposit in the United States mail (certified, with postage prepaid and
properly addressed). For the purposes hereof, the address of (a) each of the Issuers, the November
2009 Trustee, December 2009 Trustee and the Second-Priority Trustee shall be as set forth in the
November 2009 Indenture, December 2009 Indenture and the Second-Priority Indenture, as applicable,
and (b) any other party shall be in care of the Issuers as so set forth in clause (a), 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.

     9.8. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the First-Priority Secured Parties and
Second-Priority Secured Parties and their respective successors and assigns, and nothing herein is
intended, or shall be construed, to give any other Person any right, remedy or claim under, to or
in respect of this Agreement or any Common Collateral.

-23-

 

     9.9. Headings. Section headings used herein are for convenience of reference only,
are not part of this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     9.10. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     9.11. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on 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 by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement. This Agreement shall become effective when it shall have been executed by each party
hereto.

     9.12. 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 AND FOR ANY
COUNTERCLAIM THEREIN.

     9.13. Additional Grantors. The Issuers shall cause each Person that becomes a Grantor
after the date hereof (other than any such Grantor that does not grant any Liens to secure any of
the Second-Priority Obligations, until such time as such Grantor does grant any such Liens) to
become a party to this Agreement by executing and delivering a supplement to this Agreement in form
and substance reasonably satisfactory to the First-Priority Representative and the Second-Priority
Representative.

     9.14. Representatives.

     (a) It is understood and agreed that the First-Priority Collateral Agent, the November 2009
Trustee and the December 2009 Trustee are entering into this Agreement in their capacity as trustee
and collateral agent under the November 2009 Indenture and the December 2009 Indenture, as
applicable, and the provisions of Article Six and Article Fourteen of the November 2009 Indenture
and Article Six and Article Fourteen of the December 2009 Indenture applicable to the
First-Priority Collateral Agent, the November 2009 Trustee and the December 2009 Trustee, as
trustee and collateral agent thereunder as applicable, shall also apply to the First-Priority
Collateral Agent if it serves as First-Priority Representative hereunder.

     (b) It is understood and agreed that the Second-Priority Collateral Agent and the
Second-Priority Trustee are entering into this Agreement in their capacity as trustee and
collateral agent under the Second-Priority Indenture, and the provisions of Article Six and Article
Fourteen of the Second-Priority Indenture applicable to the Second-Priority Collateral Agent and
the Second-Priority Trustee, as trustee and collateral agent thereunder, shall also apply to the
Second-Priority Collateral Agent if it serves as First-Priority Representative hereunder.

     (c) In connection with its execution of this Agreement and its actions hereunder, each of the
First-Priority Representative and the Second-Priority Representative shall be entitled to all
rights, privileges, benefits, protections, immunities and indemnities provided to it as trustee and
collateral agent under the First-Priority Documents and as trustee and collateral agent under the
Second-Priority Documents, respectively.

-24-

 

     9.15. Subrogation. The Second-Priority Representative, for itself and on behalf of
the other Second-Priority Secured Parties, hereby waives any rights of subrogation it or they may
acquire as a result of any payment hereunder until the First-Priority Obligations Payment Date has
occurred; provided, however, that, as between the Issuers and the other Grantors,
on the one hand, and the Second-Priority Secured Parties, on the other hand, any such payment that
is paid over to the First-Priority Representative pursuant to this Agreement shall be deemed not to
reduce any of the Second-Priority Obligations unless and until (and then only to the extent that)
the First-Priority Obligations Payment Date has occurred and the First-Priority Representative
delivers any such payment to the Second-Priority Representative.

-25-

 

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

	 	 	 	 	 
	 	WILLMINGTON TRUST FSB, as November 2009

Trustee, December 2009 Trustee and Existing First-Priority

Collateral Agent on behalf of the First-Priority

Secured Parties

 	 
	 	By:  	/s/ Jane Schweiger
 	 
	 	 	Name:  	Jane Schweiger 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Intercreditor Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	

WILLMINGTON TRUST FSB, as Second-Priority Trustee

and Existing Second-Priority Collateral Agent on

behalf of the Second-Priority Secured Parties

 	 
	 	By:  	/s/ Jane Schweiger
 	 
	 	 	Name:  	Jane Schweiger 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Intercreditor Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CLEARWIRE COMMUNICATIONS LLC

 	 
	 	By:  	/s/ Hope F. Cochran
 	 
	 	 	Name:  	Hope F. Cochran 	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer 	 
	 
	 	CLEARWIRE FINANCE, INC.

 	 
	 	By:  	/s/ Hope F. Cochran
 	 
	 	 	Name:  	Hope F. Cochran 	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer 	 

	 	 	 	 	 
	 	GUARANTORS:

CLEARWIRE LEGACY LLC and 

CLEARWIRE XOHM LLC

 	 
	 	By:  	Clearwire Communications, LLC, as manager
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

	 	 	 	 	 
	 	CLEAR WIRELESS, LLC, CLEARWIRE
SPECTRUM 
HOLDINGS III LLC, CLEARWIRE US LLC 
and CLEAR MANAGEMENT SERVICES
LLC

 	 
	 	By:  	Clearwire Communications, LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 
	 

	 	 	 	 	 
	 	CLEAR GLOBAL SERVICES LLC and 

CLEAR PARTNER HOLDINGS
LLC

 	 
	 	By:  	Clear Wireless LLC, as member
 	 
	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

[Signature Page to Intercreditor Agreement]

 

 

	 	 	 	 	 
	 	BILLING LEGACY LLC, CLEARWIRE 
TELECOMMUNICATIONS
SERVICES, LLC,

 CLEARMEDIA, LLC, FIXED WIRELESS

HOLDINGS, LLC, CLEARWIRE SPECTRUM

 HOLDINGS II LLC and
CLEARWIRE SPECTRUM
 HOLDINGS LLC
 	 
	 
	 	By:  	Clearwire Legacy LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

	 	 	 	 	 
	 	WINBEAM LLC

 	 
	 	By:  	Clearwire US LLC, as member
 	 
	 	 	 
	 	By:  	/s/
Hope F. Cochran	 
	 	 	Name:  	Hope F. Cochran	 
	 	 	Title:  	Senior Vice President, Finance & Treasurer	 

	 	 	 	 	 

	 	 	 

	 

	 	AMERICAN TELECASTING DEVELOPMENT, LLC, AMERICAN
TELECASTING OF ANCHORAGE, LLC, AMERICAN TELECASTING
OF BEND, LLC, FRESNO MMDS ASSOCIATES, LLC, AMERICAN
TELECASTING OF COLUMBUS, LLC, AMERICAN TELECASTING OF
DENVER, LLC, AMERICAN TELECASTING OF FORT MYERS, LLC,
AMERICAN TELECASTING OF FT. COLLINS, LLC, AMERICAN
TELECASTING OF GREEN BAY, LLC, AMERICAN TELECASTING
OF LANSING, LLC, AMERICAN TELECASTING OF LINCOLN,
LLC, AMERICAN TELECASTING LITTLE ROCK, LLC, AMERICAN
TELECASTING OF LOUISVILLE, LLC, AMERICAN TELECASTING
OF MEDFORD, LLC, AMERICAN TELECASTING OF MICHIANA,
LLC, AMERICAN TELECASTING OF MONTEREY, LLC, AMERICAN
TELECASTING OF REDDING, LLC,

[Signature Page to Intercreditor Agreement]

 

 

	 	 	 

	 

	 	AMERICAN TELECASTING OF
SANTA BARBARA, LLC,  AMERICAN  TELECASTING OF SEATTLE,
LLC, AMERICAN TELECASTING OF SHERIDAN, LLC, AMERICAN
TELECASTING OF YUBA CITY, LLC, ATI OF SANTA ROSA,
LLC, ATI SUB, LLC, NSAC, LLC, ALDA WIRELESS HOLDINGS,
LLC, PCTV GOLD II, LLC, PCTV OF SALT LAKE CITY, LLC,
PCTV SUB, LLC, PEOPLE’S CHOICE TV OF ALBUQUERQUE,
LLC, PEOPLE’S CHOICE TV OF HOUSTON, LLC, PEOPLE’S
CHOICE TV OF ST. LOUIS, LLC, SPEEDCHOICE OF DETROIT,
LLC, SPEEDCHOICE OF PHOENIX, LLC, ATL MDS, LLC, BAY
AREA CABLEVISION, LLC, BROADCAST CABLE, LLC, SCC X,
LLC, SPRINT (BAY AREA), LLC, TDI ACQUISITION SUB,
LLC, TRANSWORLD TELECOM II, LLC, WAVEPATH SUB, LLC,
WBS OF AMERICA, LLC, WBS OF SACRAMENTO, LLC, WBSY
LICENSING, LLC, WBSFP LICENSING, LLC, WCOF, LLC,
WIRELESS BROADBAND SERVICES OF AMERICA, LLC and
KENNEWICK LICENSING, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	         Clearwire XOHM LLC, as manager
 	 
	 	 	 
	 	By:  	         /s/ Hope F. Cochran
 	 
	 	 	Name:  	Hope F. Cochran 	 
	 	 	Title:  	Senior Vice President, Finance &
Treasurer 	 

[Signature Page to Intercreditor Agreement]

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