Document:

Credit Agreement between the Registrant and the bank named therein

 Exhibit 10.24 
  
 EXECUTION COPY 
  

  
 CREDIT AGREEMENT 
  
 dated as of 
  
 August 20, 2004 
  
 among 
  
 BLOCKBUSTER INC. 
  
 The Lenders Party Hereto, 
  
 JPMORGAN CHASE BANK,

 as Administrative Agent and Collateral Agent 
  
 CITICORP NORTH AMERICA, INC., 
 as Syndication
Agent 
  
 CREDIT SUISSE FIRST BOSTON, 
 as Documentation Agent 
  
 and 
  
 THE
BANK OF NEW YORK and 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Co-Documentation Agents 
  

  
 J.P. MORGAN SECURITIES INC. 
 and CITIGROUP GLOBAL MARKETS INC., 
 as Joint Lead Arrangers and Joint Bookrunners 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I	  	 
		
	Definitions	  	 
			
	 SECTION 1.01.
	  	 Defined Terms
	  	1
	 SECTION 1.02.
	  	 Classification of Loans and Borrowings
	  	28
	 SECTION 1.03.
	  	 Terms Generally
	  	28
	 SECTION 1.04.
	  	 Accounting Terms; GAAP
	  	28
		
	ARTICLE II	  	 
		
	The Credits	  	 
			
	 SECTION 2.01.
	  	 Commitments
	  	29
	 SECTION 2.02.
	  	 Loans and Borrowings
	  	29
	 SECTION 2.03.
	  	 Requests for Borrowings
	  	30
	 SECTION 2.04.
	  	 Competitive Bid Procedure
	  	31
	 SECTION 2.05.
	  	 Swingline Loans
	  	33
	 SECTION 2.06.
	  	 Letters of Credit
	  	34
	 SECTION 2.07.
	  	 Funding of Borrowings
	  	40
	 SECTION 2.08.
	  	 Interest Elections
	  	40
	 SECTION 2.09.
	  	 Termination and Reduction of Commitments; Reduction of Viacom Reserve Amount
	  	42
	 SECTION 2.10.
	  	 Repayment of Loans; Evidence of Debt
	  	44
	 SECTION 2.11.
	  	 Amortization of Term Loans
	  	45
	 SECTION 2.12.
	  	 Prepayment of Loans
	  	46
	 SECTION 2.13.
	  	 Fees
	  	48
	 SECTION 2.14.
	  	 Interest
	  	49
	 SECTION 2.15.
	  	 Alternate Rate of Interest
	  	50
	 SECTION 2.16.
	  	 Increased Costs
	  	51
	 SECTION 2.17.
	  	 Break Funding Payments
	  	52
	 SECTION 2.18.
	  	 Taxes
	  	53
	 SECTION 2.19.
	  	 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	  	54
	 SECTION 2.20.
	  	 Mitigation Obligations; Replacement of Lenders
	  	56
		
	ARTICLE III	  	 
		
	Representations and Warranties	  	 
			
	 SECTION 3.01.
	  	 Organization; Powers
	  	57
	 SECTION 3.02.
	  	 Authorization; Enforceability
	  	57
	 SECTION 3.03.
	  	 Governmental Approvals; No Conflicts
	  	57
	 SECTION 3.04.
	  	 Financial Condition; No Material Adverse Change
	  	58

  

					
	 SECTION 3.05.
	  	 Properties
	  	58
	 SECTION 3.06.
	  	 Litigation and Environmental Matters
	  	59
	 SECTION 3.07.
	  	 Compliance with Laws and Agreements
	  	59
	 SECTION 3.08.
	  	 Investment and Holding Company Status
	  	59
	 SECTION 3.09.
	  	 Taxes
	  	59
	 SECTION 3.10.
	  	 ERISA
	  	59
	 SECTION 3.11.
	  	 Disclosure
	  	60
	 SECTION 3.12.
	  	 Subsidiaries
	  	60
	 SECTION 3.13.
	  	 Insurance
	  	60
	 SECTION 3.14.
	  	 Labor Matters
	  	60
	 SECTION 3.15.
	  	 Solvency
	  	60
	 SECTION 3.16.
	  	 Senior Indebtedness
	  	61
	 SECTION 3.17.
	  	 Franchises
	  	61
	 SECTION 3.18.
	  	 Security Interests
	  	61
	 SECTION 3.19.
	  	 Use of Proceeds
	  	62
	 SECTION 3.20.
	  	 Federal Reserve Regulation
	  	62
		
	ARTICLE IV	  	 
		
	Conditions	  	 
			
	 SECTION 4.01.
	  	 Effective Date
	  	62
	 SECTION 4.02.
	  	 Each Credit Event
	  	64
		
	ARTICLE V	  	 
		
	Affirmative Covenants	  	 
			
	 SECTION 5.01.
	  	 Financial Statements and Other Information
	  	64
	 SECTION 5.02.
	  	 Notices of Material Events
	  	66
	 SECTION 5.03.
	  	 Information Regarding Collateral
	  	66
	 SECTION 5.04.
	  	 Existence; Conduct of Business
	  	67
	 SECTION 5.05.
	  	 Payment of Obligations
	  	67
	 SECTION 5.06.
	  	 Maintenance of Properties
	  	67
	 SECTION 5.07.
	  	 Insurance
	  	67
	 SECTION 5.08.
	  	 Books and Records; Inspection and Audit Rights
	  	67
	 SECTION 5.09.
	  	 Compliance with Laws
	  	68
	 SECTION 5.10.
	  	 Use of Proceeds and Letters of Credit
	  	68
	 SECTION 5.11.
	  	 Additional Subsidiaries
	  	68
	 SECTION 5.12.
	  	 Further Assurances
	  	68
		
	ARTICLE VI	  	 
		
	Negative Covenants	  	 
			
	 SECTION 6.01.
	  	 Indebtedness; Certain Equity Securities
	  	69
	 SECTION 6.02.
	  	 Liens
	  	70

  

					
	 SECTION 6.03.
	  	 Fundamental Changes
	  	71
	 SECTION 6.04.
	  	 Investments, Loans, Advances, Guarantees and Acquisitions
	  	72
	 SECTION 6.05.
	  	 Asset Sales
	  	73
	 SECTION 6.06.
	  	 Sale and Leaseback Transactions
	  	73
	 SECTION 6.07.
	  	 Hedging Agreements
	  	74
	 SECTION 6.08.
	  	 Restricted Payments; Certain Payments of Indebtedness
	  	74
	 SECTION 6.09.
	  	 Transactions with Affiliates
	  	75
	 SECTION 6.10.
	  	 Restrictive Agreements
	  	75
	 SECTION 6.11.
	  	 Amendment of Material Documents
	  	76
	 SECTION 6.12.
	  	 Fixed Charge Coverage Ratio
	  	76
	 SECTION 6.13.
	  	 Leverage Ratio
	  	76
		
	ARTICLE VII	  	 
		
	Events of Default	  	 
		
	ARTICLE VIII	  	 
		
	The Administrative Agent	  	 
		
	ARTICLE IX	  	 
		
	Miscellaneous	  	 
			
	 SECTION 9.01.
	  	 Notices
	  	81
	 SECTION 9.02.
	  	 Waivers; Amendments
	  	82
	 SECTION 9.03.
	  	 Expenses; Indemnity; Damage Waiver
	  	84
	 SECTION 9.04.
	  	 Successors and Assigns
	  	85
	 SECTION 9.05.
	  	 Survival
	  	88
	 SECTION 9.06.
	  	 Counterparts; Integration; Effectiveness
	  	88
	 SECTION 9.07.
	  	 Severability
	  	89
	 SECTION 9.08.
	  	 Right of Setoff
	  	89
	 SECTION 9.09.
	  	 Governing Law; Jurisdiction; Consent to Service of Process
	  	89
	 SECTION 9.10.
	  	 WAIVER OF JURY TRIAL
	  	90
	 SECTION 9.11.
	  	 Headings
	  	90
	 SECTION 9.12.
	  	 Confidentiality
	  	90
	 SECTION 9.13.
	  	 Interest Rate Limitation
	  	91
	 SECTION 9.14.
	  	 Patriot Act
	  	91

  

 SCHEDULES: 
  

	
	
	Schedule 2.01 — Commitments
	
	Schedule 2.06 — Existing Letters of Credit
	
	Schedule 3.12 — Subsidiaries
	
	Schedule 3.13 — Insurance
	
	Schedule 6.01 — Existing Indebtedness
	
	Schedule 6.02 — Existing Liens
	
	Schedule 6.10 — Existing Restrictive Agreements

  
 EXHIBITS: 
  

	
	
	Exhibit A — Form of Assignment and Acceptance
	
	Exhibit B-1 — Form of Opinion of Vinson & Elkins L.L.P.
	
	Exhibit B-2 — Form of Opinion of Edward B. Stead
	
	Exhibit C — Form of Viacom L/C
	
	Exhibit D — Form of Collateral Agreement
	
	Exhibit E — Form of Borrowing Request
	
	Exhibit F — Form of Competitive Bid Request
	
	Exhibit G — Form of Competitive Bid
	
	Exhibit H — Form of Interest Election Request
	
	Exhibit I — Form of Certificate of Effectiveness
	
	Exhibit J — Form of Affiliate Subordination Agreement

  

 CREDIT AGREEMENT dated as of August 20, 2004, among BLOCKBUSTER INC., the LENDERS party hereto, JPMORGAN
CHASE BANK, as Administrative Agent and Collateral Agent, CITICORP NORTH AMERICA, INC., as Syndication Agent, and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands branch, as Documentation Agent. 
  
 The parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Adjusted Consolidated Net Income” means, for any period, Consolidated Net Income for such period calculated without regard to, and
without deduction for, (i) any provisions required by SFAS 142 or SFAS 143 or any successor pronouncements thereto, (ii) any non-cash compensation charge or other non-cash expenses or charges arising from the grant of or issuance or repricing of
stock, stock options or other equity based awards or any amendment, modification, substitution or change of any such stock, stock options or other equity based awards, in each case in connection with employee plans or other compensation
arrangements, and (iii) any nonrecurring expenses incurred in connection with the Split-Off (and eliminating any tax costs or benefits associated with any such disregarded deductions referred to in clauses (i), (ii) and (iii)), determined (except as
specified above) on a consolidated basis for the Borrower and its Subsidiaries in accordance with GAAP. 
  
 “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. 
  
 “Administrative Agent” means JPMorgan Chase Bank, in its capacity as administrative agent for the Lenders hereunder and in its capacity
as Collateral Agent. 
  
 “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified. 
  

 “Agreement” means this Credit Agreement, as modified, amended or restated from time to
time. 
  
 “Alternate Base Rate” means, for any
day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, as the case may be. 
  
 “Applicable Margin” means, for any day (a) with respect to any Tranche B Term Loan, (i) 1.50% per annum, in
the case of an ABR Loan, or (ii) 2.50% per annum, in the case of a Eurodollar Loan, and (b) with respect to any ABR Loan or Eurodollar Loan that is a Revolving Loan or a Tranche A Term Loan the applicable rate per annum set forth below under the
caption “Eurodollar Spread” or “ABR Spread”, as the case may be, based upon the Leverage Ratio as of the most recent determination date. 
  

							
	 Leverage Ratio:

	  	Eurodollar
Spread

	  	ABR
Spread

	  	 
	 Category 1
  
 Greater than or equal to 2.00 to 1.00
	  	2.25%	  	1.25%	  	 
				
	 Category 2
  
 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00
	  	2.00%	  	1.00%	  	 
				
	 Category 3
  
 Greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00
	  	1.75%	  	0.75%	  	 
				
	 Category 4
  
 Less than 1.00 to 1.00
	  	1.50%	  	0.50%	  	 

  
 For purposes of the
foregoing, (i) the Leverage Ratio shall be determined as of the end of each fiscal quarter of the Borrower’s fiscal year based upon the Borrower’s consolidated financial statements delivered pursuant to Section 5.01(a) or (b) and (ii) each
change in the Applicable Margin resulting from a change in the Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements accompanied by
the compliance certificate required by Section 5.01(c) indicating such change and ending on the date immediately preceding the effective date of the next such change; provided that the Leverage Ratio shall be deemed to be in Category 1 (A) at
any time that an Event of Default has occurred and is continuing or (B) at the option of the Administrative Agent or at the request of the Required Lenders if the Borrower fails to deliver the consolidated financial statements required to be
delivered by it pursuant to Section 5.01(a) or (b), during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered. 
  

 2 

 “Applicable Percentage” means, with respect to any Revolving Lender, the percentage of
the total Revolving Commitments represented by such Lender’s Revolving Commitment. If the Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Revolving Commitments most recently in
effect, giving effect to any assignments. 
  
 “Approved
Fund” has the meaning assigned to such term in Section 9.04. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04(b)), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent. 
  
 “Attributable Debt” means, on any date, in respect of any lease of the Borrower or any Subsidiary entered into as part of a Sale and Leaseback Transaction subject to Section 6.06, (i) if such lease is
a Capital Lease Obligation, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP and (ii) if such lease is not a Capital Lease Obligation, the capitalized amount of the
remaining lease payments under such lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease Obligation. 
  
 “Automatic Reduction” has the meaning ascribed to such term
in Section 2.09(f). 
  
 “Board” means the Board
of Governors of the Federal Reserve System of the United States of America. 
  
 “Borrower” means Blockbuster Inc., a Delaware corporation. 
  
 “Borrowing” means borrowings by the Borrower consisting of (a) Loans of the same Class and Type, made, converted or continued on the same
date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (b) a Competitive Loan or group of Competitive Loans of the same type made on the same date and as to which a single Interest Period is in effect or (c) a
Swingline Loan. 
  
 “Borrowing Request” means a
request by the Borrower for a Borrowing in accordance with Section 2.03. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 
  
 “Capital Expenditures” means, for any period, without
duplication, the additions to property, plant or equipment and other capital expenditures, including 

  

 3 

 
replacements, capitalized repairs and improvements during such period, of the Borrower and its consolidated Subsidiaries for such period, determined in
accordance with GAAP. 
  
 “Capital Lease
Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are
required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  
 “Capital Lease Principal Payments” means, for any period,
amounts recorded or required to be recorded as principal payments of Capital Lease Obligations on the consolidated financial statements of the Borrower prepared in accordance with GAAP. 
  
 “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of Equity Interests representing more than 50% of the
aggregate voting power of the Borrower; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were not (i) members of the board of directors of the Borrower both on the date
hereof and immediately after the Split-Off Date, (ii) appointed to the board of directors of the Borrower in connection with the Split-Off, as set forth in the S-4, or (iii) nominated or appointed to such board of directors by Persons described in
clauses (i) and (ii) or their board nominees or appointees; or (c) the occurrence of a “Change of Control”, as defined in the Subordinated Debt Documents. 
  
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b)
any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority having regulatory or supervisory authority over banks or other financial institutions after the date of this Agreement or (c)
compliance by any Lender or the applicable Issuing Bank (or, for purposes of Section 2.16(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority having regulatory or supervisory authority over banks or other financial institutions made or issued after the date of this Agreement. 
  
 “Class”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Tranche A Term Loans, Tranche B Term Loans, Swingline Loans or Competitive Loans and, when used in reference to any Commitment, refers to whether such
Commitment is a Revolving Commitment, Tranche A Commitment or Tranche B Commitment. 
  
 “Class A Common Stock” means shares of Class A Common Stock, par value of $0.01 per share, of the Borrower. 
  

 4 

 “Class B Common Stock” means shares of Class B Common Stock, par value of $0.01 per
share, of the Borrower. 
  
 “Code” means the
Internal Revenue Code of 1986, as amended from time to time. 
  
 “Collateral” means any “Collateral”, as such term is defined in the Collateral Agreement or any Foreign Pledge Agreement and any assets in respect of which a Lien is created in favor of the Collateral Agent
pursuant to any Security Document. 
  
 “Collateral
Agent” means JPMorgan Chase Bank, in its capacity as collateral agent for the Lenders under any Loan Document and as security trustee under the Security Trust Deed and Security Over Shares Agreement governed by the laws of the United
Kingdom. 
  
 “Collateral Agreement” means the
Guarantee and Collateral Agreement among, the Borrower, the Subsidiary Loan Parties and the Collateral Agent, substantially in the form of Exhibit D. 
  
 “Collateral and Guarantee Requirement” means the requirement that: 
  
 (a) the Administrative Agent shall have received from each Loan Party either (i) a counterpart of the
Collateral Agreement duly executed and delivered on behalf of such Loan Party or (ii) in the case of any Person that becomes a Loan Party after the Effective Date, a supplement to the Collateral Agreement, in the form specified therein, duly
executed and delivered on behalf of such Loan Party; 
  
 (b) all outstanding Equity Interests of each Domestic Subsidiary and of each Significant Foreign Subsidiary (other than Blockbuster Australia Pty. Ltd.) owned by or on behalf of any Loan Party shall have been pledged pursuant to the
Collateral Agreement or a Foreign Pledge Agreement (except that the Loan Parties shall not be required to pledge more than 65% of the outstanding voting Equity Interests of any Significant Foreign Subsidiary) and the Collateral Agent shall have
received certificates or other instruments, if any, representing all such Equity Interests, together with stock powers or other instruments of transfer with respect thereto endorsed in blank; 
  
 (c) all outstanding non-voting Equity Interests and 65% of
the outstanding voting Equity Interests of Blockbuster Australia Pty. Ltd. shall be subject to a Memorandum of Deposit-Australian Shares in a form and substance acceptable to the Collateral Agent, and the Collateral Agent shall have received
certificates or other instruments, if any, representing all such Equity Interests, together with stock powers or other instruments of transfer with respect thereto endorsed in blank; and 
  
 (d) all documents and instruments required by law or reasonably requested by the Collateral Agent to be
filed, registered or recorded to create the Liens 

  

 5 

 
intended to be created by the Collateral Agreement and perfect such Liens to the extent required by, and with the priority required by, the Collateral
Agreement or any such Foreign Pledge Agreement, shall have been filed, registered or recorded or delivered to the Collateral Agent for filing, registration or recording. 
  
 “Commercial Paper” means (i) any unsecured promissory note of the Borrower with a maturity at the time of
issuance not exceeding nine months, exclusive of days of grace, issued by the Borrower pursuant to a commercial paper program and (ii) any unsecured borrowing by the Borrower due within nine months of the borrowing date, exclusive of days of grace,
pursuant to money market or other similar short term uncommitted credit lines. 
  
 “Commitment” means a Revolving Commitment, Tranche A Commitment or Tranche B Commitment, or any combination thereof (as the context requires). 
  
 “Commitment Fee Rate” means a rate per annum of 0.375%.

  
 “Competitive Bid” means an offer by a Lender
to make a Competitive Loan in accordance with Section 2.04. 
  
 “Competitive Bid Rate” means, with respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender making such Competitive Bid. 
  
 “Competitive Bid Request” means a request by the Borrower
for Competitive Bids in accordance with Section 2.04. 
  
 “Competitive Loan” means a Loan made pursuant to Section 2.04. 
  
 “Competitive Loan Exposure” means, at any time, the aggregate principal amount of Competitive Loans outstanding at such time. The Competitive Loan Exposure of any Revolving Lender at any time shall be
the aggregate principal amount of the outstanding Competitive Loans of such Revolving Lender at such time. 
  
 “Consolidated EBITDA” means the Consolidated Operating Income of the Borrower and the Subsidiaries for such period, plus, without
duplication, the sum of: 
  
 (a) other income of the Borrower and
the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP to the extent such other income is positive; plus 
  
 (b) interest income of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; plus 
  
 (c) amounts attributable to depreciation and amortization for such period
(excluding depreciation and amortization related to the rental inventory of the Borrower and the Subsidiaries), to the extent deducted in determining such operating profit for such period; plus 
  

 6 

 (d) all Non-Cash Non-Recurring Charges during such period, to the extent deducted in determining such
operating profit for such period; plus 
  
 (e) all losses
associated with asset sales or dispositions of businesses permitted under this Agreement during such period (other than losses on sales of inventory sold in the ordinary course of business and losses on sales of other assets if such losses are less
than $1,000,000 individually and less than $10,000,000 in the aggregate during such period), to the extent deducted in determining such operating profit for such period; plus 
  
 (f) non-recurring charges incurred during such period in connection with the Split-Off, to the extent deducted in
determining such operating profit for such period; 
  
 and minus, without
duplication: 
  
 (i) other income of the Borrower
and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP to the extent such other income is negative; 
  
 (ii) all Non-Cash Non-Recurring Gains during such period, to the extent included in determining such operating profit for such period;

  
 (iii) all cash expenditures made in such
period attributable to non-cash charges (other than non-recurring charges) added back in determining Consolidated EBITDA pursuant to clause (d) above; 
  
 (iv) all gains associated with asset sales and dispositions of businesses during such period (other than gains on sales of inventory sold
in the ordinary course of business and gains on sales of other assets and businesses if such gains are less than $1,000,000 individually and less than $10,000,000 in the aggregate during such period), to the extent included in determining such
operating profit for such period; and 
  
 (v) the
proportional EBITDA of the interests held by any other Person in entities fully consolidated with the Borrower and the Subsidiaries, as determined in accordance with the terms of this definition. 
  
 For purposes of determining Consolidated EBITDA for any period, if the Borrower acquires all
or substantially all the Equity Interests or assets of another Person during such period for aggregate consideration in excess of $25,000,000, or sells or transfers any Subsidiary, all or substantially all the assets of a Subsidiary or other assets
constituting a business operation during such period for aggregate consideration in excess of $25,000,000, Consolidated EBITDA will be determined on a pro forma basis giving effect to such acquisition or disposition as if it had occurred on the
first day of such period. 
  
 “Consolidated Interest
Expense” means, for any period, the excess of (a) the sum of (i) the interest expense (including imputed interest expense in respect of 

  

 7 

 
Capital Lease Obligations) of the Borrower and the Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP, (ii) any
interest accrued during such period in respect of Indebtedness of the Borrower or any Subsidiary that is required to be capitalized rather than included in consolidated interest expense for such period in accordance with GAAP, plus (iii) any cash
payments made during such period in respect of obligations referred to in clause (b)(ii) below that were amortized or accrued in a previous period, minus (b) the sum of (i) to the extent included in such consolidated interest expense for such
period, non-cash amounts attributable to amortization of financing costs paid in a previous period, plus (ii) to the extent included in such consolidated interest expense for such period, non-cash amounts attributable to amortization of debt
discounts or accrued interest payable in kind for such period. 
  
 “Consolidated Net Income” means, for any period, the net income or loss of the Borrower and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Operating Income” means, for any period, the
revenues from operations of the Borrower and its consolidated Subsidiaries for such period less aggregate amount of (i) the operating costs and expenses (including, without duplication, general and administrative expenses and payments under
guarantees of leases) and (ii) the cost of sales of the Borrower and its consolidated Subsidiaries for such period, in each case determined on a consolidated basis in accordance with GAAP; provided, however, that there shall be
excluded (a) the operating income of any Person (other than a Loan Party) in which any other Person (other than the Borrower or a Subsidiary or any director holding qualifying shares in compliance with applicable law) owns an Equity Interest, except
to the extent of the amount of dividends or other distributions actually paid to the Borrower or any of the Subsidiaries during such period and (b) the operating income or loss of any Person accrued prior to the date it becomes a Subsidiary or is
merged with the Borrower or any Subsidiary or the date that such Person’s assets are acquired by the Borrower or any Subsidiary. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  
 “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of
time or both would, unless cured or waived, become an Event of Default. 
  
 “dollars” or “$” refers to lawful money of the United States of America. 
  
 “Domestic Subsidiary” means each Subsidiary that is not a Foreign Subsidiary. 
  
 “Effective Date” means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). 
  

 8 

 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or
threatened release of any Hazardous Material or to health and safety matters relating to any Hazardous Materials and, in each case, applicable to the Borrower or any Subsidiary. 
  
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  
 “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single
employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
  
 “ERISA Event” means (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard
with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or
a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  

 9 

 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate (or, in the case of a Competitive Loan, the LIBO Rate). 
  
 “Event of Default” has the meaning assigned to such term in Article VII. 
  
 “Excess Cash Flow” means, for any fiscal year, the sum
(without duplication) of: 
  
 (a) Consolidated
Net Income for such fiscal year, adjusted to exclude any gains or losses attributable to Prepayment Events; plus 
  
 (b) depreciation, amortization and other non-cash charges or losses deducted in determining such Consolidated Net Income for such fiscal
year (excluding depreciation and amortization related to the rental inventory of the Borrower and the Subsidiaries); plus 
  
 (c) the net amount for such fiscal year, if any, of any increase in the deferred tax liability of the Borrower and its consolidated
Subsidiaries or any decrease in the deferred tax asset of the Borrower and its consolidated Subsidiaries, excluding any change in deferred taxes that does not change or offset the taxes payable (or receivable if applicable) account of the Borrower
and its consolidated Subsidiaries; minus 
  
 (d) the sum of (i) any non-cash gains included in determining such Consolidated Net Income for such fiscal year plus (ii) the net amount for such fiscal year, if any, of any decrease in the deferred tax liability of the Borrower and its
consolidated Subsidiaries or any increase in the deferred tax asset of the Borrower and its consolidated Subsidiaries, excluding any change in deferred taxes that does not change or offset the taxes payable (or receivable if applicable) account of
the Borrower and its consolidated Subsidiaries; minus 
  
 (e) the sum, without duplication, of (i) cash Capital Expenditures for such fiscal year (except to the extent attributable to the incurrence of Capital Lease Obligations or otherwise financed by incurring Indebtedness
and except to the extent made with Net Proceeds in respect of sales, transfers or other dispositions of assets) plus (ii) cash consideration paid during such fiscal year to make acquisitions or other investments (other than Permitted
Investments and except to the extent financed by incurring Indebtedness); minus 
  
 (f) the aggregate principal amount of Long-Term Indebtedness repaid or prepaid by the Borrower and its consolidated Subsidiaries during
such fiscal year, excluding (i) Indebtedness in respect of Revolving Loans and Letters of Credit (other than voluntary prepayments of Revolving Loans in an aggregate amount not in excess of $50,000,000 that are accompanied by permanent reductions of
the Revolving Commitments in an equal amount), (ii) Term Loans prepaid pursuant 

  

 10 

 
to Section 2.12(c) or (d), and (iii) repayments or prepayments of Long-Term Indebtedness financed by incurring other Long-Term Indebtedness; minus

  
 (g) the aggregate amount of cash dividends
(other than any special dividend or extraordinary dividend) paid on, and cash repurchases of, the Borrower’s common stock during such fiscal year, in each case to the extent permitted by Section 6.08(a). 
  
 “Excluded Taxes” means, with respect to the Administrative
Agent, any Lender, an Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction (or any political subdivision thereof) under the laws of which (or of a political subdivision of which) such recipient is organized or in which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction described in clause (a) above and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.20(b)), any withholding tax that (i) is in effect and would apply to amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect
to any withholding tax pursuant to Section 2.18(a), or (ii) is attributable to such Foreign Lender’s failure to comply with Section 2.18(e). 
  
 “Existing Credit Agreement” means the Credit Agreement, dated as of June 21, 1999, as amended, among the Borrower, the lenders party
thereto and Citibank, N.A., as administrative agent for such lenders. 
  
 “Existing Letters of Credit” means the letters of credit issued for the account of the Borrower prior to the Effective Date and set forth on Schedule 2.06. 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it. 
  
 “Financial Officer” means the chief financial officer, principal accounting officer, treasurer, assistant treasurer or controller of the Borrower. 
  
 “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) the sum of (i) Consolidated EBITDA
for such period and (ii) Operating Lease Payments for 

  

 11 

 
such period to (b) the sum for such period of (i) Consolidated Interest Expense, (ii) Operating Lease Payments, (iii) Capital Lease Principal Payments, and
(v) ordinary course dividends paid during such period by the Borrower to holders of Equity Interests in the Borrower pursuant to Section 6.08(a)(v) or (vi). 
  
 “Fixed Rate” means, with respect to any Competitive Loan (other than a Eurodollar Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive Bid. 
  
 “Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed Rate. 
  
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located.
For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Foreign Pledge Agreement” means a pledge agreement, debenture or other Security Document securing any of
the Obligations that is governed by the law of a jurisdiction other than the United States and is reasonably satisfactory in form and substance to the Collateral Agent. 
  
 “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a jurisdiction other than the
United States of America or any State thereof or the District of Columbia. 
  
 “Franchisees” means a franchisee of the Borrower or its Subsidiaries operating a video rental store under the “Blockbuster” name or another tradename owned by the Borrower or its
Subsidiaries pursuant to an area development agreement or a franchise agreement. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time, applied on a basis consistent (except for changes concurred with by the
Borrower’s independent registered public accounting firm) with the consolidated financial statements of the Borrower contained in the Borrower’s Form 10-K filed with the Securities and Exchange Commission on March 15, 2004. 
  
 “Governmental Authority” means the government of the United
States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government. 
  
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, 

  

 12 

 
direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness of the payment thereof, (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or (d) as an account party in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 
  

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
  
 “Hedging Agreement” means any interest rate protection
agreement, foreign currency exchange agreement, commodity price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement. 
  
 “Indebtedness” of any Person means, without duplication, (a) all indebtedness and other obligations of such
Person (i) for the payment of borrowed money (including, in the case of the Borrower, the obligations of the Borrower for borrowed money under this Agreement), (ii) evidenced by bonds, notes, debentures, loan agreements, credit agreements or similar
instruments or agreements or (iii) which are or should be shown on a consolidated balance sheet compiled in accordance with GAAP as debt liabilities, (b) all Capital Lease Obligations of such person, (c) all obligations of such Person to pay the
deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (d) all Indebtedness of others secured by a Lien on any assets of such Person, whether or not such Indebtedness is
assumed by such Person, (e) all obligations in respect of letters of credit (if drawn or supporting obligations that constitute Indebtedness) and bankers’ acceptances and (f) all Guarantees of payment or collection of any obligation described
in clauses (a), (b), (c), (d) and (e) above of any other Person; provided, that this clause (f) shall exclude Guarantees of Capital Lease Obligations of Franchisees and of Capital Lease Obligations assumed by third party transferees of stores
acquired from the Borrower or any Subsidiary in an aggregate amount not at any time in excess of $50,000,000. Notwithstanding anything to the contrary contained herein, the Viacom LCs shall constitute Indebtedness only to the extent that they
support Capital Lease Obligations or other obligations that would constitute Indebtedness and to the extent of any unreimbursed LC Disbursement relating thereto; provided such Indebtedness will not in any event be counted in duplication of any
associated Indebtedness otherwise covered by the definition of Indebtedness. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms 

  

 13 

 
of such Indebtedness provide that such Person is not liable therefor. The Indebtedness of any Person shall not include revenue sharing arrangements or
royalty obligations, including those relating to the production, distribution or acquisition of motion pictures, video games or other programming, talent or publishing rights. 
  
 “Indemnified Taxes” means Taxes other than Excluded Taxes and Other Taxes. 
  
 “Information Memorandum” means the Confidential Information
Memorandum dated July 2004 relating to the Borrower and the Transactions. 
  
 “Interest Election Request” means a request by the Borrower to convert or continue a Revolving Borrowing or Term Borrowing in accordance with Section 2.08. 
  
 “Interest Payment Date” means (a) with respect to any ABR
Loan (other than a Swingline Loan), the last day of each March, June, September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period, (c)
with respect to any Fixed Rate Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior to the last day of such Interest Period that occurs at intervals of 90 days’ duration after the first day of such Interest Period, and any other dates that are
specified in the applicable Competitive Bid Request as Interest Payment Dates with respect to such Borrowing, and (d) with respect to any Swingline Loan, the day that such Loan is required to be repaid. 
  
 “Interest Period” means, (a) with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter (or nine months or twelve months thereafter or the day that is
seven days or 14 days thereafter if, at the time of the relevant Borrowing, Eurodollar funding for such a period is available to all Lenders participating therein), as the Borrower may elect and (b) with respect to any Fixed Rate Borrowing, the
period (which shall not be less than seven days or more than 270 days) commencing on the date of such Borrowing and ending on the date specified in the applicable Competitive Bid Request; provided, that (i) if any Interest Period for a
Eurodollar Borrowing would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest Period for a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially 

  

 14 

 
shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

  
 “Investment” means purchasing, holding or
acquiring (including pursuant to any merger or consolidation with any Person that was not a wholly owned Subsidiary prior to such merger) any Equity Interests in or evidences of indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, or making or permitting to exist any loans or advances to, guaranteeing any obligations of, or making or permitting to exist any investment or any other interest in, any other Person, or purchasing or
otherwise acquiring (in one transaction or a series of transactions) any assets of any other Person constituting a business unit. 
  
 “Issuing Banks” means JPMorgan Chase Bank, Credit Suisse First Boston, Citicorp North America, Inc., The Bank of New York, Wachovia Bank,
National Association, and any other Lender designated as an Issuing Bank in accordance with the provisions of Section 2.06(i), in each case, in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as
provided in Section 2.06(i). An Issuing Bank may, in its discretion, arrange for one or more Letters of Credit, as the case may be, to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate. Notwithstanding the foregoing, Citicorp North America, Inc. (and any Affiliate thereof) shall be deemed an Issuing Bank hereunder only in respect of the Viacom LC issued by
it (or such Affiliate) in connection with the initial issuance of Viacom LCs under this Agreement and any other Letter of Credit which it agrees to issue hereunder, it being understood that Citicorp North America, Inc. will have no obligation
hereunder to issue any Letters of Credit in addition to such initial Viacom LC. 
  
 “LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit. 
  
 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b)
the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Revolving Lender at any time shall be its Applicable Percentage of the aggregate LC Exposures at such
time. 
  
 “Lease Guarantees”, at any time of
determination, means the guarantees or sureties or liabilities (contingent or direct) of Viacom and/or its Affiliates (other than the Borrower and the Subsidiaries) under or with respect to any lease of real property by the Borrower, any of its
Affiliates or any of their assignees (or any subsequent assignees thereof) existing on such date of determination for which Viacom or any of its Affiliates has provided a guarantee or surety or otherwise has any liability (contingent or direct),
including any amendments, modifications or extensions thereof. “Lease Guarantees” shall not include any of the guarantees, sureties or liabilities (contingent or direct) of Viacom and/or its Affiliates under or with respect to any leases
of real property by Wherehouse Entertainment, Inc., its subsidiaries and Affiliates, and any successors thereto and any assignees and transferees thereof. 
  

 15 

 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have
become a party hereto pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance. Unless the context otherwise requires, the term “Lenders” includes the
Swingline Lender. 
  
 “Letter of Credit” means
each Existing Letter of Credit and any letter of credit issued pursuant to this Agreement, including all Viacom LCs. 
  
 “Leverage Ratio” means, on any date, the ratio of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA for the period of
four consecutive fiscal quarters of the Borrower most recently ended on or prior to such date for which financial statements are available. 
  
 “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Telerate
Service (or on any successor or substitute page of such Service) (rounded upward to the nearest 1/100 of 1% per annum) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate per annum
(rounded upward to the nearest 1/100 of 1% per annum) appearing on Reuters Screen LIBO page at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period; provided however if more than one rate is specified on the Reuters Screen LIBO page, the LIBO Rate shall be the arithmetic mean of all such rates. If neither the Telerate Page 3750 nor the
Reuters Screen LIBO page rate is available, then the LIBO Rate shall be the rate per annum at which dollar deposits are offered by the principal office of the Administrative Agent in London to prime banks in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period with a maturity equal to such Interest Period. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 
  
 “Loan Documents” means this Agreement, the Collateral Agreement, the Foreign Pledge Agreements and the
other Security Documents. 
  
 “Loan Parties”
means the Borrower and the Subsidiary Loan Parties. 
  

 16 

 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

  
 “Long-Term Indebtedness” means any
Indebtedness (including in respect of Capital Lease Obligations) that, in accordance with GAAP, constitutes (or, when incurred, constituted) a long-term liability. 
  
 “Margin” means, with respect to any Competitive Loan bearing interest at a rate based on the LIBO Rate, the
marginal rate of interest, if any, to be added to or subtracted from the LIBO Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making such Loan in its related Competitive Bid. 
  
 “Material Adverse Effect” means any event, condition or
circumstance that has had or would reasonably be expected to have a material adverse effect on (a) the business, operations, assets or financial condition of the Borrower and the Subsidiaries, taken as a whole, (b) the ability of the Loan Parties,
taken as a whole, to perform any of their material obligations under any Loan Document or (c) the material rights of or benefits available to the Lenders under any Loan Document. 
  
 “Material Indebtedness” means Indebtedness or obligations in respect of one or more Hedging Agreements of
any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $50,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in
respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that, the Borrower or such Subsidiary would be required to pay if such Hedging Agreement were terminated at such time.

  
 “Material Subsidiary” means at any date, for
purposes of Section 3.12 and clauses (f), (h), (i), (j) or (k) of Article VII, any Subsidiary or any group of Subsidiaries in respect of which the events referred to in any such clause have occurred, which (i) had aggregate revenues during the
period of four consecutive fiscal quarters most recently ended on or prior to such date in respect of which financial statements have been delivered pursuant to Section 5.01 of 5% or more of either total consolidated revenues of the Borrower and its
Subsidiaries for such period or (ii) had total assets as of the last day of the most recent fiscal quarter in respect of which financial statements have been delivered pursuant to Section 5.01 equal to 5% or more of the total consolidated assets of
the Borrower and the Subsidiaries as of such date (in the case of any group of Subsidiaries taken together, calculated on a combined basis in accordance with GAAP). 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Multiemployer Plan” means a multiemployer plan as defined
in Section 4001(a)(3) of ERISA. 
  
 “Net
Proceeds” means, with respect to any event (a) the cash proceeds received in respect of such event including (i) any cash received in respect of any non-cash proceeds, but only as and when received, (ii) in the case of a casualty, insurance

  

 17 

 
proceeds, and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all fees and
out-of-pocket expenses paid by the Borrower and the Subsidiaries to third parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale and
leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made by the Borrower and the Subsidiaries as a result of such event to repay Indebtedness (other than Loans) secured by such
asset or otherwise subject to mandatory prepayment as a result of such event, (iii) the amount of all taxes paid (or estimated to be payable) by the Borrower and the Subsidiaries, and (iv) the amount of any reserves established by the Borrower and
the Subsidiaries to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such event occurred or the next succeeding year and that are directly attributable to such event (in the case of amounts referred
to in clauses (b)(iii) and (iv), as determined reasonably and in good faith by a Financial Officer). For purposes of this definition, proceeds received by any Subsidiary of the Borrower other than a wholly owned Subsidiary shall be deemed to be Net
Proceeds received by the Borrower only in an amount proportionate to the Equity Interest owned by the Borrower in such Subsidiary receiving such proceeds. 
  
 “Non-Cash Non-Recurring Charges” means, for any period, all non-cash non-recurring charges (to the extent such charges are not associated
with asset sales or disposition of businesses described in clause (e) of the definition of Consolidated EBITDA) incurred during such period, including, without limitation, all non-cash charges in respect (a) provisions for losses and additions to
valuation allowances, (b) provisions for restructuring, litigation and environmental reserves and losses on the disposition of businesses, (c) pension settlement charges, (d) provisions required by SFAS 142 or SFAS 143 or any successor
pronouncements thereto and (e) any non-cash compensation charge or other non-cash expenses or charges arising from the grant of or issuance or repricing of stock, stock options or other equity-based awards or any amendment, modification,
substitution or change of any such stock, stock options or other equity-based awards, in each case in connection with employee plans or other compensation arrangements. 
  
 “Non-Cash Non-Recurring Gains” means, for any period, all non-cash non-recurring gains and all other
non-cash gains (to the extent such other non-cash gains are not realized in the ordinary course of business or do not constitute ordinary course operating income and are otherwise not associated with asset sales or dispositions of businesses
described in clause (e) of the definition of Consolidated EBITDA), realized during such period, including refranchising gains. 
  
 “Obligations” means (i) the obligations of the Borrower hereunder to pay the principal of and interest on the Loans, to reimburse the LC
Disbursements and to pay all other monetary obligations of the Borrower, including in respect of fees, costs, expenses, indemnities and penalties, to the Lenders in their capacities as such under this Agreement or any other Loan Document, (ii) all
other “Obligations” as such term is defined in the Collateral Agreement and (iii) all obligations of the Loan Parties under the Collateral Agreement. 
  

 18 

 “Operating Lease Payments” means, for any period, amounts recorded or required to be
recorded as operating lease expenses on consolidated financial statements of the Borrower prepared in accordance with GAAP plus, to the extent not otherwise included therein, payments by the Borrower or any Subsidiary during such period pursuant to
Guarantees of operating leases of Franchisees or other Persons. 
  
 “Other Taxes” means any and all present or future recording, stamp, documentary, excise, transfer, sales, property or similar taxes, charges or levies arising from any payment made by or on account of any obligation of the
Borrower under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar
functions. 
  
 “Perfection Certificate” means a
certificate in the form of Exhibit II to the Collateral Agreement or any other form approved by the Collateral Agent. 
  
 “Permitted Acquisitions” means any acquisition (by merger, consolidation or otherwise) by the Borrower or a Subsidiary of all or
substantially all the assets of, or all or substantially all the Equity Interests in, a Person or division or line of business of a Person, if (a) at the time thereof and immediately after giving effect thereto, no Default shall have occurred and is
continuing, (b) each Subsidiary resulting from such acquisition (and which survives such acquisition) other than any Foreign Subsidiary, shall be a Subsidiary Loan Party and the Equity Interests of each such Subsidiary that is a Domestic Subsidiary
or Significant Foreign Subsidiary owned by a Loan Party shall be owned directly by the Borrower and/or Subsidiary Loan Parties and shall have been (or within 15 Business Days (or such longer period as may be reasonably acceptable to the
Administrative Agent) after such acquisition shall be) pledged pursuant to the Collateral Agreement or a Foreign Pledge Agreement (subject to the limitations of the pledge of Equity Interests of Significant Foreign Subsidiaries owned by a Loan Party
set forth in the definition of “Collateral and Guarantee Requirement”), (c) the Collateral and Guarantee Requirement shall have been (or within 15 Business Days (or such longer period as may be reasonably acceptable to the Administrative
Agent) after such acquisition shall be) satisfied with respect to each such Subsidiary that is a Subsidiary Loan Party, (d) the Borrower is in compliance, on a pro forma basis after giving effect to such acquisition, with the Sections
6.12 and 6.13, recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements are available, as if such acquisition had occurred on the first day of the relevant period for testing compliance
and (e) within 15 Business Days (or such longer period as may be allowed by the Administrative Agent in connection with clauses (b) and/or (c) above) after such acquisition, the Borrower has delivered to the Administrative Agent an officer’s
certificate confirming compliance with the requirements set forth in clauses (a), (b) and (c) above, together with all relevant financial information (to the extent available and in the Borrower’s possession) for the Person or assets acquired
and reasonably detailed calculations demonstrating satisfaction of the requirement set forth in clause (d) above. 
  

 19 

 “Permitted Encumbrances” means: 
  
 (a) Liens imposed by law for taxes, assessments, or other
governmental charges or levies that are not yet due or are being contested in compliance with Section 5.05; 
  
 (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s and other like Liens
imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.05, or which, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect; 
  
 (c) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or similar regulations; 
  
 (d) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII; and 
  
 (e) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not
materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any Subsidiary; 
  
 provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Permitted Investments” means: 
  
 (a) direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one
year from the date of acquisition thereof; 
  
 (b) Investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s; 
  
 (c) Investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 360 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized or
licensed under the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; 
  

 20 

 (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; and 
  
 (e) Investments in money market mutual funds that (i) comply with the criteria set forth in Rule 2a-7 adopted by the SEC under the
Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets in excess of $2,000,000,000. 
  
 “Permitted Store Sales” means the sale, transfer, assignment, sublease or other disposition by the Borrower or any Subsidiary of all or
any portion of any Stores or of all or any portion of any properties and leasehold interests used by the Borrower and/or any Subsidiary to operate Stores (and associated inventory, equipment and fixtures), including in connection with the sale or
disposition of all or any Stores or any portions thereof in a given geographic region; provided that any such sale, transfer, assignment, sublease or disposition is in the ordinary course of business and consistent with past practice.

  
 “Permitted Subordinated Indebtedness” means
Indebtedness of the Borrower, the payment of which is subordinated to the Borrower’s obligations in respect of the Obligations on terms no less favorable in any significant respect to the Lenders than those applicable to the Subordinated Notes,
and which Indebtedness (a) is unsecured, (b) is not Guaranteed by any Subsidiary other than by Subsidiary Loan Parties on a subordinated basis on terms no less favorable in any significant respect to the Lenders than those applicable to the
Subsidiary Guarantees of the Subordinated Notes, and (c) does not mature or require any amortization payment to be made prior to the date that is six months after the Tranche B Maturity Date. 
  
 “Person” means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA. 
  
 “Prepayment Event” means any sale,
transfer, assignment, sublease or other disposition (including pursuant to a sale and leaseback transaction) of any property or asset of the Borrower or any Subsidiary, other than (i) sales, transfers or dispositions referred to in clauses (a) and
(b) of Section 6.05 and subleases of Stores in the ordinary course of business and (ii) sales, transfers, assignments and other dispositions resulting in aggregate cumulative Net Proceeds received after the Effective Date not exceeding $100,000,000.

  

 21 

 “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Principal Issuing Bank” means, at any time, each Issuing
Bank that at such time has outstanding Letters of Credit with an aggregate undrawn amount in excess of $25,000,000, or such lesser amount as may be agreed by the Administrative Agent and the relevant Issuing Bank. 
  
 “Refinancing Indebtedness” means Indebtedness issued or
incurred (including by means of the extension or renewal of existing Indebtedness) to extend, renew or refinance existing Indebtedness (“Refinanced Debt”); provided that (i) such extending, renewing or refinancing Indebtedness is in an
original aggregate principal amount not greater than the aggregate principal amount of, and unpaid interest on, the Refinanced Debt plus the amount of any premiums paid thereon and fees and expenses associated therewith, (ii) such Indebtedness has
the same or later maturity and the same or longer weighted average life than the Refinanced Debt, (iii) if the Refinanced Debt or any Guarantees thereof are subordinated to the Obligations, such Indebtedness and any Guarantees thereof are
subordinated to the Obligations on terms no less favorable in any significant respect to the holders of the Obligations than the subordination terms of such Refinanced Debt or Guarantees thereof (and no Loan Party that has not guaranteed such
Refinanced Debt guarantees such Indebtedness), (iv) such Indebtedness contains covenants and events of default and is benefited by Guarantees (if any) which, taken as a whole, are not materially less favorable to the Borrower than the covenants and
events of default of or Guarantees (if any) in respect of such Refinanced Debt, (v) if such Refinanced Debt or any Guarantees thereof are secured, such Indebtedness and any Guarantees thereof are either unsecured or secured only by such assets as
secured the Refinanced Debt and Guarantees thereof and (vi) if such Refinanced Debt and any Guarantees thereof are unsecured, such Indebtedness and Guarantees thereof are also unsecured. 
  
 “Register” has the meaning assigned to such term in Section 9.04. 
  
 “Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  

“Repurchase Expenditures” means consideration paid by the Borrower or its Subsidiaries for the repurchase or redemption of any
Indebtedness, including without limitation in respect of principal (including accreted principal) and premium, if any, but excluding amounts attributable to accrued and unpaid interest that, pursuant to the terms of such Indebtedness, is payable in
cash no less frequently than semi-annually. 
  
 “Required
Lenders” means, at any time, Lenders having Revolving Exposures, Term Loans and unused Commitments representing more than 50% of the sum of the total Revolving Exposures, outstanding Term Loans and unused 

  

 22 

 
Commitments at such time; provided that, for purposes of declaring the Loans to be due and payable pursuant to Article VII, and for all purposes after
the Loans become due and payable pursuant to Article VII or the Commitments expire or terminate, “Required Lenders” shall mean Lenders having outstanding Term Loans, Revolving Exposures and Competitive Loan Exposures representing
more than 50% of the sum of the total outstanding Term Loans, Revolving Exposures and Competitive Loan Exposures; provided further that, for purposes of this definition, if any Lender has defaulted in its obligation to fund any Loan
hereunder, then the unused Commitments of such Lender shall be disregarded for all purposes in determining the Required Lenders. 
  
 “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) to any Person other than
the Borrower or any Loan Party with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any Equity Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any Subsidiary. 
  
 “Revolving Availability Period” means the period from and
including the Effective Date to but excluding the earlier of the Revolving Maturity Date and the date of termination of the Revolving Commitments. 
  
 “Revolving Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant
to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Revolving Commitment is set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable. The initial aggregate amount of the Lenders’ Revolving Commitments is $500,000,000. 
  
 “Revolving Exposure” means, with respect to any Lender at
any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time. 
  
 “Revolving Lender” means a Lender with a Revolving Commitment or, if the Revolving Commitments have terminated or expired, a Lender with
Revolving Exposure. 
  
 “Revolving Loan” means a
Loan made pursuant to clause (c) of Section 2.01. 
  
 “Revolving Maturity Date” means August 20, 2009. 
  

 23 

 “S-4” means the Form S-4 registration statement filed with the SEC, as amended prior to
the date hereof, pursuant to which Viacom will exchange shares of Class A Common Stock and shares of Class B Common Stock for shares of Class A common stock, par value $0.01 per share, of Viacom and shares of Class B common stock, par value $0.01
per share, of Viacom. 
  
 “S&P” means
Standard & Poor’s. 
  
 “Sale and Leaseback
Transaction” has the meaning assigned to such term in Section 6.06. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “SEC Documents” has the meaning ascribed to such term in Section 3.04(c). 
  
 “Security Documents” means the Collateral Agreement, each Foreign Pledge Agreement and each other security
agreement or other instrument or document executed and delivered pursuant to Section 5.12 to secure any of the Obligations. 
  
 “Significant Foreign Subsidiary” means on any date each of Blockbuster Australia Pty. Ltd., Blockbuster Canada Co, Blockbuster
Entertainment (Ireland) Limited, Blockbuster Holdings Ireland, Blockbuster de Mexico S.A. de C.V., Blockbuster UK Limited and any other Foreign Subsidiary (i) Equity Interests in which are directly owned by any Loan Party and (ii) a substantial
portion of the consolidated revenues of which are derived from its operations and the operations of its subsidiaries in Canada, the United Kingdom, Ireland, Mexico or Australia. 
  
 “Special Dividend” means the special cash dividend to be paid by Borrower to its stockholders on the
Special Dividend Date in an approximate amount of $905,000,000, as described in the S-4. 
  
 “Special Dividend Date” means the date on which the Special Dividend is paid. 
  
 “Split-Off” means the distribution by Viacom of shares of Class A Common Stock and Class B Common Stock described in the S-4. 

 
 “Split-Off Agreement” means the agreement referred to in
clause (a) of the definition of Viacom Agreements. 
  
 “Split-Off Date” means the date on which Viacom has distributed, in connection with the Split Off, shares of Class A Common Stock or Class B Common Stock which in the aggregate represent a distribution of
“control” as defined in Section 368(c) of the Code. 
  
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one 

  

 24 

 
minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
  
 “Store” means a retail outlet owned or operated by the
Borrower or a Subsidiary for the sale, rental or trade of video products (including videocassettes, DVDs and any technological successors thereto) and/or game products, and associated or other retail inventory of the Borrower or the Subsidiaries.

  
 “Subordinated Debt” means the 9% Senior
Subordinated Notes due 2012 in the aggregate principal amount of $300,000,000 and the Indebtedness represented thereby. 
  
 “Subordinated Debt Documents” means the indenture under which the Senior Subordinated Debt is issued and all other instruments,
agreements and other documents evidencing or governing the Senior Subordinated Debt or providing for any Guarantee or other right in respect thereof. 
  
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date,
as well as any other corporation, limited liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held by the parent and/or one or more subsidiaries of the parent. 
  
 “Subsidiary” means any subsidiary of the Borrower. 
  
 “Subsidiary Loan Party” means each Subsidiary that is not a
Foreign Subsidiary. 
  
 “Swingline Exposure”
means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Revolving Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.

  
 “Swingline Lender” means JPMorgan Chase Bank,
in its capacity as lender of Swingline Loans hereunder. 
  

 25 

 “Swingline Loan” means a Loan made pursuant to Section 2.05. 
  
 “Taxes” means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
  
 “Term Loans” means Tranche A Term Loans and Tranche B Term Loans. 
  
 “Total Indebtedness” means, as of any date, (a) the aggregate principal amount of Indebtedness of the Borrower and the Subsidiaries
outstanding as of such date, in the amount that would be reflected on a balance sheet of the Borrower and the Subsidiaries prepared as of such date on a consolidated basis in accordance with GAAP, less (b) the amount of cash and Permitted
Investments of the Borrower and the Subsidiaries that would be reflected on such balance sheet as of such date (other than any such cash or Permitted Investments that constitutes “restricted cash” or is otherwise subject to any Lien in
favor of any third party). 
  
 “Tranche A
Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make a Tranche A Term Loan hereunder on the Effective Date, expressed as an amount representing the maximum principal amount of the Tranche A Term
Loan to be made by such Lender hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The
initial amount of each Lender’s Tranche A Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its Tranche A Commitment, as applicable. The initial aggregate amount of
the Lenders’ Tranche A Commitments is $100,000,000. 
  
 “Tranche A Lender” means a Lender with a Tranche A Commitment or an outstanding Tranche A Term Loan. 
  
 “Tranche A Maturity Date” means August 20, 2009. 
  

“Tranche A Term Loan” means a Loan made pursuant to clause (a) of Section 2.01. 
  
 “Tranche B Commitment” means, with respect to each Lender,
the commitment, if any, of such Lender to make a Tranche B Term Loan hereunder on the Effective Date, expressed as an amount representing the maximum principal amount of the Tranche B Term Loan to be made by such Lender hereunder, as such commitment
may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Tranche B Commitment is set
forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its Tranche A Commitment, as applicable. The initial aggregate amount of the Lenders’ Tranche B Commitments is $550,000,000.

  
 “Tranche B Lender” means a Lender with a
Tranche B Commitment or an outstanding Tranche B Term Loan. 
  

 26 

 “Tranche B Maturity Date” means August 20, 2011. 
  
 “Tranche B Term Loan” means a Loan made pursuant to clause
(b) of Section 2.01. 
  
 “Transactions” means the
execution, delivery and performance by each Loan Party of the Loan Documents to which it is to be a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. 
  
 “Type”, when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a
Fixed Rate. 
  
 “Viacom” means Viacom Inc., a
Delaware corporation. 
  
 “Viacom Agreements”
means (a) the Amended and Restated Initial Public Offering and Split-Off Agreement, dated as of June 18, 2004, among Viacom, Viacom International and the Borrower, (b) the Amended and Restated Release and Indemnification Agreement, dated as of June
18, 2004, between Viacom and the Borrower, (c) the Amended and Restated Transition Services Agreement, dated as of June 18, 2004, between Viacom and the Borrower, (d) the Amended and Restated Registration Rights Agreement, dated as of June 18, 2004,
between Viacom and the Borrower, (e) the Amended and Restated Tax Matters Agreement, dated as of June 18, 2004, between Viacom and the Borrower, and (f) the Judgment Sharing Agreement, dated as of June 18, 2004 among Paramount Pictures Corporation,
Sumner M. Redstone, Viacom and the Borrower, as each may be amended from time to time to the extent permitted by Section 6.11. 
  
 “Viacom International” means Viacom International, Inc., a Delaware corporation. 
  
 “Viacom LC” means one or more irrevocable Letters of Credit
issued pursuant to this Agreement in favor of Viacom, Viacom International, or any of Viacom’s Affiliates, as beneficiaries, as required by the Split-Off Agreement. Each Viacom LC will be substantially in the form of Exhibit C, or such other
form requested by the Borrower and reasonably acceptable to the Administrative Agent and the relevant Issuing Bank (such approvals not to be unreasonably withheld). 
  
 “Viacom LC Exposure” means, at any time, the aggregate undrawn amount of all outstanding Viacom LCs at such
time. The amount of LC Disbursements in respect of Viacom LCs that have not yet been reimbursed by or on behalf of the Borrower will not be deemed to constitute Viacom LC Exposure, but will be included in LC Exposure. The Viacom LC Exposure of any
Revolving Lender at any time shall be its Applicable Percentage of the aggregate Viacom LC Exposure at such time. 
  

 27 

 “Viacom Reserve Amount” means Revolving Commitments in the amount of $150,000,000, as
such amount may be reduced and reinstated from time to time solely in accordance with Section 2.09(f). 
  
 “Voluntary Reduction” has the meaning assigned to such term in Section 2.09(f). 
  
 “Withdrawal Liability” means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g.,
a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”). 
  
 SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. 
  
 SECTION 1.04.
Accounting Terms; GAAP. Except as otherwise expressly provided herein, all accounting terms and all terms of a financial nature shall be interpreted, all accounting determinations thereunder shall be made, and all financial statements
required to be delivered thereunder shall be prepared, in accordance with GAAP; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment of any financial covenant to eliminate or modify the
effect of any change after the date hereof in GAAP or in the application thereof on the operation of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment of the financial covenants for
such purpose), regardless of whether any such notice is given before or after such change in GAAP or in 

  

 28 

 
the application thereof, then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP as in effect and applied immediately
before the relevant change became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders. 
  
 ARTICLE II 
  
 The Credits 
  
 SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender agrees (a) to make a Tranche A Term Loan to the
Borrower on the Effective Date in a principal amount not exceeding its Tranche A Commitment, (b) to make a Tranche B Term Loan to the Borrower on the Effective Date in a principal amount not exceeding its Tranche B Commitment and (c) to make
Revolving Loans to the Borrower from time to time during the Revolving Availability Period in an aggregate principal amount that will not result in (i) the sum of such Lender’s Revolving Exposure exceeding such Lender’s Revolving
Commitment, or (ii) (x) the sum of the aggregate Revolving Exposures (minus the Viacom LC Exposures), plus the aggregate Competitive Loan Exposures exceeding (y) the aggregate Revolving Commitments minus the Viacom Reserve Amount. Notwithstanding
anything to the contrary in this Agreement, the Revolving Commitments constituting the Viacom Reserve Amount in effect from time to time shall be available solely for the issuance of Viacom LCs and shall not be utilized for any other purpose,
including Revolving Loans, Swingline Loans or Letters of Credit other than Viacom LCs. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans. Amounts repaid
in respect of Term Loans may not be reborrowed. 
  
 SECTION 2.02.
Loans and Borrowings. (a) Each Loan (other than a Swingline Loan or Competitive Loan) shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably in accordance with their Commitments of the
applicable Class. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make Loans as required. 
  
 (b) Subject to Section 2.15, each Revolving Borrowing and Term Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be an
ABR Loan. Each Competitive Loan shall be comprised entirely of Eurodollar Loans or Fixed Rate Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch
or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for any Eurodollar Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple 

  

 29 

 
of $1,000,000 and not less than $5,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the aggregate Revolving Commitments less the Viacom Reserve
Amount or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e). Each Swingline Loan shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000. Borrowings of more
than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of 15 Eurodollar Revolving Borrowings outstanding. 
  
 (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to
convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Revolving Maturity Date, Tranche A Maturity Date or Tranche B Maturity Date, as applicable. 
  
 SECTION 2.03. Requests for Borrowings. To request a Revolving
Borrowing or Term Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the Business Day of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.06(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in substantially the form attached hereto as Exhibit E (or any other form approved by the Administrative Agent) and signed by the Borrower. Each such telephonic
and written Borrowing Request shall specify the following information in compliance with Section 2.02: 
  
 (i) whether the requested Borrowing is to be a Revolving Borrowing, Tranche A Term Borrowing or Tranche B Term Borrowing; 
  
 (ii) the aggregate amount of such Borrowing; 
  
 (iii) the date of such Borrowing, which shall be a Business
Day; 
  
 (iv) whether such Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing; 
  
 (v)
in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (vi) the location and number of the Borrower’s account
to which funds are to be disbursed, which shall comply with the requirements of Section 2.07. 
  

 30 

 If no election as to the Type of Borrowing is specified, or if no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the requested Borrowing shall be deemed a Eurodollar Revolving Borrowing with an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this
Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 
  
 SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and conditions set forth herein, from time to time
during the Revolving Availability Period the Borrower may request Competitive Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow Competitive Loans; provided that (x) the sum of the aggregate Revolving
Exposures (other than the Viacom LC Exposures) plus the aggregate Competitive Loan Exposures shall not at any time exceed (y) the aggregate Revolving Commitments minus the aggregate Viacom Reserve Amount. While Competitive Loans are outstanding,
availability under the Revolving Commitment shall be reduced by the aggregate amount of such outstanding Competitive Loans. To request Competitive Bids, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case
of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of a Fixed Rate Borrowing, not later than 11:00 a.m., New York City time, one Business Day
before the date of the proposed Borrowing; provided that the Borrower may submit up to (but not more than) two Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be made within five Business Days after the date
of any previous Competitive Bid Request, unless any and all such previous Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response thereto rejected. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Competitive Bid Request in substantially the form attached hereto as Exhibit F (or any other form approved by the Administrative Agent) and signed by the
Borrower. Each such telephonic and written Competitive Bid Request shall specify the following information in compliance with Section 2.02: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business Day; 
  
 (iii) whether such Borrowing is to be a Fixed Rate Borrowing
or a Eurodollar Borrowing; 
  
 (iv) the Interest
Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term “Interest Period”; 
  
 (v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of
Section 2.07; 
  
 (vi) whether such Borrowing may
be prepaid and if so on what terms; and 
  

 31 

 (vii) the date interest payments will be made with respect to such Borrowing if different
than the times set forth in the definition of Interest Payment Date. 
  
 Promptly
following receipt of a Competitive Bid Request in accordance with this Section, the Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting the Lenders to submit Competitive Bids. 
  
 (b) Each Lender may (but shall not have any obligation to) make one or more
Competitive Bids to the Borrower in response to a Competitive Bid Request. Each Competitive Bid by a Lender must be in substantially the form attached hereto as Exhibit G (or any other form approved by the Administrative Agent) and must be received
by the Administrative Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not later than 9:30 a.m., New York City time, two Business Days before the proposed date of such Competitive Borrowing, and in the case of an ABR Borrowing,
not later than 9:30 a.m., New York City time, on the proposed date of such Competitive Borrowing. Competitive Bids that do not conform substantially to the form attached hereto as Exhibit G may be rejected by the Administrative Agent, and the
Administrative Agent shall notify the applicable Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount (which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal the
entire principal amount of the Competitive Borrowing requested by the Borrower) of the Competitive Loan or Loans that the Lender is willing to make and (ii) the Competitive Bid Rate or Competitive Bid Rates at which the Lender is prepared to make
such Loan or Loans (expressed as a percentage rate per annum in the form of a decimal to no more than four decimal places). 
  
 (c) The Administrative Agent shall promptly notify the Borrower by telecopy of the Competitive Bid Rates and the principal amount specified in each
Competitive Bid and the identity of each Lender that shall have made such Competitive Bids. 
  
 (d) Subject only to the provisions of this paragraph, the Borrower may accept or reject any Competitive Bid. The Borrower shall notify the Administrative Agent by telephone, confirmed by telecopy, whether and to what
extent it has decided to accept or reject each Competitive Bid, in the case of a Eurodollar Competitive Borrowing, not later than 10:30 a.m., New York City time, two Business Days before the date of the proposed Competitive Borrowing, and in the
case of a Fixed Rate Borrowing, not later than 11:00 a.m., New York City time, on the proposed date of the Competitive Borrowing; provided that (i) the failure of the Borrower to give such notice shall be deemed to be a rejection of each
Competitive Bid, (ii) the Borrower shall not accept a Competitive Bid made at a particular Competitive Bid Rate if the Borrower rejects a Competitive Bid made at a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids
accepted by the Borrower shall not exceed the aggregate amount of the requested Competitive Borrowing specified in the related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above, the Borrower may accept
Competitive Bids at the same Competitive Bid Rate in part, which acceptance, in the case 

  

 32 

 
of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata in accordance with the amount of each such Competitive Bid, and (v) except
pursuant to clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan unless such Competitive Loan is in a minimum principal amount of $5,000,000 and an integral multiple of $1,000,000; provided, further, that if a
Competitive Loan must be in an amount less than $5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation of
acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be rounded to integral multiples of $1,000,000 in a manner determined by the Borrower. A notice given by the Borrower
pursuant to this paragraph shall be irrevocable. 
  
 (e) The
Administrative Agent shall promptly notify each bidding Lender by telecopy whether or not its Competitive Bid has been accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each successful bidder will thereupon become bound,
subject to the terms and conditions hereof, to make the Competitive Loan in respect of which its Competitive Bid has been accepted in accordance with Section 2.07. 
  
 (f) If the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such
Competitive Bid directly to the Borrower at least one quarter of an hour earlier than the time by which the other Lenders are required to submit their Competitive Bids to the Administrative Agent pursuant to paragraph (b) of this Section.

  
 SECTION 2.05. Swingline Loans. (a) Subject to the terms
and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Borrower from time to time during the Revolving Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $50,000,000 or (ii) (x) the sum of the aggregate Revolving Exposures (other than the Viacom LC Exposures) plus the aggregate Competitive Loan Exposures exceeding (y) the aggregate
Revolving Commitments minus the Viacom Reserve Amount; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans. 
  
 (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (confirmed by telecopy), not later than 12:00 noon, New York City time, on the day of a proposed
Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general deposit account of the Borrower with the Swingline Lender or shall initiate a wire transfer of the
proceeds of such Borrowing to 

  

 33 

 
any other domestic bank deposit account designated by the Borrower (or, in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.06(e), by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan. 
  
 (c) The Swingline Lender may by written notice given to the Administrative Agent not later than 12:00 noon, New York City
time, on any Business Day require the Revolving Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which Revolving
Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each
Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or
Loans. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each Revolving Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment
obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Revolving Lenders. The Administrative Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower
(or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by
the Administrative Agent shall be promptly remitted by the Administrative Agent to the Revolving Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof. 
  
 SECTION 2.06. Letters of Credit. (a) (i) Subject to the terms and conditions set forth herein, on the Effective Date, the Issuing Bank(s) shall
issue for the account of Borrower a Viacom LC requested by the Borrower pursuant to the Split-Off Agreement. Additionally, subject to the terms and conditions set forth herein, the Borrower may request the issuance of Viacom LCs for its own account
at any time and from time to time during the Revolving Availability Period. Availability under the Viacom Reserve Amount (as such Viacom Reserve Amount may be adjusted from time to time in accordance with Section 2.09(f)) shall be reduced by the
Viacom LC Exposure, 

  

 34 

 
it being understood that the Viacom Reserve Amount may be used solely for the issuance of Viacom LCs. 
  
 (ii) Subject to the terms and conditions set forth herein, the Borrower may
request the issuance of Letters of Credit other than Viacom LCs for its own account, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at any time and from time to time during the Revolving Availability
Period; provided that the issuance of any such Letter of Credit shall not result in (i) the aggregate Revolving Exposures (minus the Viacom LC Exposures) plus the aggregate Competitive Loan Exposures exceeding (ii) the aggregate Revolving
Commitments minus the Viacom Reserve Amount. Availability under the Revolving Commitments (other than the Viacom Reserve Amount) shall be reduced by the aggregate amount of LC Exposure (other than Viacom LC Exposure) outstanding from time to time.
Each Existing Letter of Credit shall be deemed to be a Letter of Credit for all purposes hereof and shall be deemed to have been issued hereunder on the Effective Date. 
  
 (iii) In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of
any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the applicable Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

  
 (b) Notice of Issuance, Amendment, Renewal, Extension;
Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit, the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance (including the Effective Date, in the case of Viacom LCs to be
issued on the Effective Date), amendment, renewal or extension) a notice requesting the issuance of such Letter of Credit or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof, whether
such Letter of Credit is a Viacom LC and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by an Issuing Bank, the Borrower also shall submit a letter of credit application on such
Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of Credit other than a Viacom LC shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension, (x) the aggregate Revolving Exposures other than the Viacom LC Exposures plus the aggregate
Competitive Loan Exposures shall not exceed (y) the aggregate Revolving Commitments less the Viacom Reserve Amount. A Viacom LC shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Viacom
LC the Borrower shall be deemed to represent and warrant that), after giving effect to 

  

 35 

 
such issuance, amendment, renewal or extension, the aggregate Viacom LC Exposures shall not exceed the Viacom Reserve Amount. Subject to the foregoing, (i)
after the Effective Date, the Borrower may request the issuance of additional Viacom LCs, provided that, and the Borrower by making any such request will be deemed to represent that, the issuance of such additional Viacom LCs have been approved by
Viacom, (ii) the beneficiary of any Viacom LC may surrender such Letter of Credit at any time to the relevant Issuing Bank for cancellation, including in connection with any request by the Borrower pursuant to clause (i) above for the issuance of a
replacement Viacom LC in a lesser or greater amount, and (iii) the Borrower may from time to time request an amendment to any Viacom LC (including to reduce or increase the amount thereof), but no such amendment shall become effective unless
consented to by the beneficiary of such Viacom LC. Except for Automatic Reductions that reduce the Viacom Reserve Amount as set forth in Section 2.09(f), any increase or decrease in the outstanding amounts of the Viacom LCs shall not increase or
decrease the Viacom Reserve Amount. 
  
 (c) Expiration
Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Maturity Date; provided, however, that any Letter of Credit, including any Viacom LC, may provide for automatic renewal on an annual basis
substantially in accordance with the provisions of Exhibit C hereof, so long as any such Letter of Credit expires at or prior to the date that is five Business Days prior to the Revolving Maturity Date. 
  
 (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby
acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing
Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the
occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. On the Effective Date and without further action by
any party hereto, each Issuing Bank that has issued an Existing Letter of Credit shall be deemed to have granted to each Revolving Lender, and each Revolving Lender shall be deemed to have acquired from such Issuing Bank, a participation in each

  

 36 

 
such Existing Letter of Credit in accordance with the foregoing provisions of this paragraph. 
  
 (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower
shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received
notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, New York City time, on (i) the Business
Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is
not received prior to such time on the day of receipt; provided that, if such LC Disbursement is not less than $1,000,000 the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or
2.05 that such payment be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR
Revolving Borrowing or Swingline Loan. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and
such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as
provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the applicable
Issuing Bank the amounts so received by it from the Revolving Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the
applicable Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse the applicable Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a
Revolving Lender pursuant to this paragraph to reimburse the applicable Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve
the Borrower of its obligation to reimburse such LC Disbursement. 
  
 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with
the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the applicable Issuing Bank 

  

 37 

 
under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other
event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder. Neither the Administrative Agent, the Lenders nor the applicable Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of such Issuing
Bank; provided that the foregoing shall not be construed to excuse such Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the
terms thereof. The parties hereto expressly agree that, in the absence of gross negligence, bad faith or willful misconduct on the part of the applicable Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank
shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, such Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information
to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 
  
 (g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of Credit. The applicable Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether
such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Revolving Lenders
with respect to any such LC Disbursement. 
  
 (h) Interim
Interest. If the applicable Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made (including with the proceeds of an ABR Revolving Borrowing
or a Swingline Borrowing requested in accordance with paragraph (e) of this Section), the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower
reimburses such LC Disbursement at the rate per annum then applicable to ABR Revolving Loans; provided that, if the Borrower fails to reimburse such LC 

  

 38 

 
Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.14(d) shall apply. Interest accrued pursuant to this paragraph shall be for
the account of the applicable Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall be for the account of such Lender to the
extent of such payment. 
  
 (i) Addition and Replacement of
Issuing Banks. An Issuing Bank may be replaced at any time by written agreement among the Borrower, the replaced Issuing Bank and the successor Issuing Bank, and acknowledged by the Administrative Agent. The Administrative Agent shall notify the
Lenders of any such replacement of an Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.13(b). From and after the
effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the applicable Issuing Bank under this Agreement with respect to the Letters of Credit to be issued thereafter and (ii) references
herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall
not be required to issue additional Letters of Credit. A Revolving Lender may become an additional Issuing Bank hereunder if designated by the Borrower pursuant to a written agreement among the Borrower and such Revolving Lender, and acknowledged by
the Administrative Agent. The Administrative Agent shall notify the Revolving Lenders of any such additional Issuing Bank. Notwithstanding the foregoing, the Borrower shall not designate any Revolving Lender as an Issuing Bank hereunder if, after
giving effect thereto, there would be more than five Issuing Banks. 
  
 (j) Cash Collateralization. If any Event of Default described in clauses (a), (b), (h) or (i) of Article VII shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent that the
Required Lenders have (or, if the maturity of the Loans has been accelerated, the Revolving Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanded the deposit of cash collateral pursuant to this paragraph, the
Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal to the total LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event
of Default with respect to the Borrower described in clause (h) or (i) of Article VII. Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement.
The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits in Permitted Investments, which investments shall
be made at the option and sole discretion of the Administrative Agent and at the 

  

 39 

 
Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account.
Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Banks for LC Disbursements for which they have not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrower in respect of the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of the total
LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default described above, such
amount (to the extent not applied as aforesaid) shall be returned to the Borrower within two Business Days after all such Events of Default have been cured or waived or the Obligations have been paid in full and the Letters of Credit have terminated
or expired and all Commitments have terminated or expired. 
  
 SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of
the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in Section 2.05. The Administrative Agent will make such Loans available to the
Borrower by promptly crediting or transferring the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City or any other domestic bank deposit account of the Borrower, in each case
as designated by the Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the
applicable Issuing Bank. 
  
 (b) Unless the Administrative Agent
shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such
Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day
from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing. 
  
 SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing and Term Borrowing initially shall be of the Type specified in the applicable Borrowing 

  

 40 

 
Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Competitive Loans or Swingline Borrowings, which may not be converted or continued. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in substantially the form attached hereto as Exhibit H (or any other form approved by the
Administrative Agent) and signed by the Borrower. 
  
 (c) Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02 and paragraph (e) of this Section: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to
such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and 
  
 (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

  
 (d) Promptly following receipt of an Interest Election
Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  

 41 

 (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be continued as a Eurodollar Borrowing of one month’s
duration. Notwithstanding any contrary provision hereof, if any Event of Default described in clauses (a), (b), (h) or (i) of Article VII shall occur and be continuing and the Administrative Agent, at the request of the Required Lenders, so notifies
the Borrower, then, so long as such Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto. 
  
 SECTION
2.09. Termination and Reduction of Commitments; Reduction of Viacom Reserve Amount. (a) Unless previously terminated, (i) the Tranche A Commitments and Tranche B Commitments shall terminate at 5:00 p.m., New York City time, on the Effective
Date and (ii) the Revolving Commitments shall terminate on the Revolving Maturity Date. 
  
 (b) The Revolving Commitments shall be automatically and permanently reduced on each date set forth below in the aggregate principal amount set forth opposite such date: 
  

				
	 Date

	  	Amount of Reduction

	 October 1, 2007
	  	$	25,000,000
	 January 1, 2008
	  	 	25,000,000
	 April 1, 2008
	  	 	25,000,000
	 July 1, 2008
	  	 	25,000,000
	 October 1, 2008
	  	 	25,000,000
	 January 1, 2009
	  	 	25,000,000
	 April 1, 2009
	  	 	25,000,000
	 July 1, 2009
	  	 	25,000,000

  
 (c) Any reduction of
the Revolving Commitments (other than those pursuant to paragraph (b) of this Section) shall be applied to reduce the subsequent scheduled reductions of the Revolving Commitments to be made pursuant to paragraph (b) ratably. The scheduled reductions
in the Revolving Commitments pursuant to paragraph (b) shall not be applied to reduce the then applicable Viacom Reserve Amount. Notwithstanding anything to the contrary contained in this Agreement, the Viacom Reserve Amount may only be reduced
pursuant to paragraph (f) of this Section. 
  
 (d) Subject to
compliance with the provisions of paragraph (e) of this Section, Borrower may at any time terminate, or from time to time reduce, the Revolving Commitments; provided that (i) each reduction of the Revolving Commitments shall be in an amount
that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with

  

 42 

 
Section 2.12, (x) the sum of the aggregate Revolving Exposures (other than Viacom LC Exposures) plus the aggregate Competitive Loan Exposures would exceed
(y) the aggregate Revolving Commitments less the then-current Viacom Reserve Amount. No such termination or reduction shall be applied to reduce the then applicable Viacom Reserve Amount unless the conditions of paragraph (f) of this Section have
been met. 
  
 (e) The Borrower shall notify the Administrative
Agent in writing of any election to terminate or reduce the Revolving Commitment under paragraph (d) of this Section at least one Business Day prior to the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of
termination of the Revolving Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Revolving Commitments shall be permanent. Each reduction of the Revolving Commitments shall be made ratably among the Lenders
in accordance with their Revolving Commitments. 
  
 (f) Subject to
compliance with the provisions of this paragraph, the Borrower may, at any time or from time to time, reduce the Viacom Reserve Amount (any such reduction, a “Voluntary Reduction”); provided that (i) each such reduction shall
be in an amount that is an integral multiple of $1,000,000, (ii) evidence that Viacom has consented to such reduction shall be provided in the manner set forth below and (iii) the Viacom Reserve Amount shall not at any time be reduced if, after
giving effect to such reduction (and any concurrent surrender of outstanding Viacom LCs), the aggregate Viacom LC Exposures would exceed the Viacom Reserve Amount. The Borrower shall notify the Administrative Agent in writing of any election to
reduce the Viacom Reserve Amount under this paragraph at least three Business Days prior to the effective date of such reduction, specifying such election and the effective date thereof. Such notice shall be accompanied by a certification of an
executive officer of Viacom stating that Viacom consents to such reduction, making reference to this Agreement and specifying the amount of the approved reduction. No such Voluntary Reduction shall be effective unless such certification by Viacom is
provided. Promptly following receipt of such notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice of a voluntary reduction in the Viacom Reserve Amount delivered by the Borrower pursuant to this Section
shall be irrevocable. Whenever and on each occasion that any LC Disbursement is made in respect of any Viacom LC, the Viacom Reserve Amount will automatically be reduced by the amount of such LC Disbursement (an “Automatic
Reduction”). The Borrower may at any time after any Voluntary Reduction or Automatic Reduction increase the Viacom Reserve Amount by an amount not exceeding the aggregate amount of any Automatic Reductions and Voluntary Reductions
theretofore made and not reinstated by giving written notice of such increase to the Administrative Agent, provided that after giving effect to any such increase, (x) the aggregate Revolving Exposures (minus the Viacom LC Exposures) plus the
Competitive Loan Exposures will not exceed (y) the amount of the Revolving Commitments minus 

  

 43 

 
the Viacom Reserve Amount. No Automatic Reduction or Voluntary Reduction in the Viacom Reserve Amount shall, of itself, constitute, cause or require a
reduction in the amount of the Revolving Commitments, voluntary reductions to which are covered by the provisions of paragraphs (d) and (e) of this Section. 
  
 SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan of such Lender on the Revolving Maturity Date, (ii) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Term Loan of such
Lender as provided in Section 2.11, (iii) to the Administrative Agent for the account of a Lender that has made a Competitive Loan the unpaid principal amount of such Competitive Loan on the last day of the Interest Period applicable to such Loan
and (iv) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Revolving Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar month and is at
least two Business Days after such Swingline Loan is made; provided that on each date that a Revolving Borrowing or a Competitive Loan is made, the Borrower shall repay all Swingline Loans that were outstanding on the date such Borrowing was
requested. 
  
 (b) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time
hereunder. 
  
 (c) The Administrative Agent shall maintain
accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima
facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 
  
 (e) Any Lender may request that Loans of any Class made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent and the Borrower. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all
times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in 

  

 44 

 
such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

  
 SECTION 2.11. Amortization of Term Loans. (a) Subject
to adjustment pursuant to paragraph (d) of this Section, the Borrower shall repay Tranche A Term Borrowings on each date set forth below in the aggregate principal amount set forth opposite such date: 
  

				
	 Date

	  	Amount

	 October 1, 2005
	  	$	3,750,000
	 January 1, 2006
	  	 	3,750,000
	 April 1, 2006
	  	 	3,750,000
	 July 1, 2006
	  	 	3,750,000
	 October 1, 2006
	  	 	3,750,000
	 January 1, 2007
	  	 	3,750,000
	 April 1, 2007
	  	 	3,750,000
	 July 1, 2007
	  	 	3,750,000
	 October 1, 2007
	  	 	3,750,000
	 January 1, 2008
	  	 	3,750,000
	 April 1, 2008
	  	 	3,750,000
	 July 1, 2008
	  	 	3,750,000
	 October 1, 2008
	  	 	13,750,000
	 January 1, 2009
	  	 	13,750,000
	 April 1, 2009
	  	 	13,750,000
	 August 20, 2009
	  	 	13,750,000

  
 (b) Subject to
adjustment pursuant to paragraph (d) of this Section, the Borrower shall repay Tranche B Term Borrowings on each date set forth below in the aggregate principal amount set forth opposite such date: 
  

				
	 Date

	  	Amount

	 October 1, 2005
	  	$	1,375,000
	 January 1, 2006
	  	 	1,375,000
	 April 1, 2006
	  	 	1,375,000
	 July 1, 2006
	  	 	1,375,000
	 October 1, 2006
	  	 	1,375,000
	 January 1, 2007
	  	 	1,375,000
	 April 1, 2007
	  	 	1,375,000
	 July 1, 2007
	  	 	1,375,000
	 October 1, 2007
	  	 	1,375,000
	 January 1, 2008
	  	 	1,375,000
	 April 1, 2008
	  	 	1,375,000
	 July 1, 2008
	  	 	1,375,000
	 October 1, 2008
	  	 	13,750,000

  

 45 

			
	 Date

	  	Amount

	 January 1, 2009
	  	13,750,000
	 April 1, 2009
	  	13,750,000
	 July 1, 2009
	  	13,750,000
	 October 1, 2009
	  	13,750,000
	 January 1, 2010
	  	13,750,000
	 April 1, 2010
	  	13,750,000
	 July 1, 2010
	  	13,750,000
	 October 1, 2010
	  	105,875,000
	 January 1, 2011
	  	105,875,000
	 April 1, 2011
	  	105,875,000
	 August 20, 2011
	  	105,875,000

  
 (c) To the extent not
previously paid, all Tranche A Term Loans shall be due and payable on the Tranche A Maturity Date, and all Tranche B Term Loans shall be due and payable on the Tranche B Maturity Date. 
  
 (d) Any prepayment of a Term Borrowing of either Class, including any mandatory prepayments pursuant to Section 2.12, shall
be applied to reduce ratably the subsequent scheduled repayments of the Term Borrowings of such Class to be made pursuant to this Section. 
  
 (e) Prior to any repayment of any Term Borrowings of either Class hereunder, the Borrower shall select the Borrowing or Borrowings of the applicable Class
to be repaid and shall notify the Administrative Agent by telephone (confirmed by telecopy) of such selection not later than (i) 11:00 a.m., New York City time, three Business Days before the scheduled date of such repayment, in the case of a
Eurodollar Borrowing and (ii) 11:00 a.m., New York City time on the scheduled date of such repayment, in the case of an ABR Borrowing. Each repayment of a Borrowing shall be applied ratably to the Loans included in the repaid Borrowing. Repayments
of Term Borrowings shall be accompanied by accrued interest on the amount repaid. 
  
 SECTION 2.12. Prepayment of Loans. (a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part in an integral multiple of $1,000,000 and in an amount not
less than $5,000,000, subject to the requirements of this Section; provided that, without the prior consent of the Lender thereof, the Borrower shall not have a right to prepay any Competitive Loan which the Borrower indicated was not
prepayable in the related Competitive Bid Request. 
  
 (b) In the
event and on each occasion that (x) the sum of the aggregate Revolving Exposures (minus the Viacom LC Exposures) plus the aggregate Competitive Loan Exposures exceeds (y) the total Revolving Commitments minus the Viacom Reserve Amount, the Borrower
shall prepay Revolving Borrowings or Swingline Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral in an account with the Administrative Agent pursuant to Section 2.06(j)) in an aggregate amount equal to such excess. In
the event and on each occasion that the aggregate Viacom LC Exposures exceed the Viacom Reserve Amount, the Borrower shall deposit 

  

 46 

 
cash collateral in an account with the Administrative Agent pursuant to Section 2.06(j) in an aggregate amount equal to such excess. 
  
 (c) In the event and on each occasion that any Net Proceeds are received by
or on behalf of the Borrower or any Subsidiary in respect of any Prepayment Event described in the definition of the term Prepayment Event, the Borrower shall, within ten Business Days after such Net Proceeds are received, prepay Term Borrowings in
an aggregate amount equal to 50% of such Net Proceeds; provided that, if the Borrower shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that the Borrower and the Subsidiaries intend to apply the Net
Proceeds from such event (or a portion thereof specified in such certificate), within 270 days after receipt of such Net Proceeds, to acquire real property, equipment or other tangible assets and intangible assets associated with such acquisition to
be used in the business of the Borrower and/or the Subsidiaries or to construct or acquire new Stores, and certifying that no Default has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph in respect of the
Net Proceeds in respect of such event (or the portion of such Net Proceeds specified in such certificate, if applicable) except to the extent of any such Net Proceeds therefrom that have not been so applied by the end of such 270-day period (except
to the extent binding contracts to make such investments have been entered into within such period), at which time a prepayment shall be required in an amount equal to 50% of such Net Proceeds from such event that have not been so applied.

  
 (d) Following the end of each fiscal year of the Borrower,
commencing with the fiscal year ending December 31, 2005, the Borrower will prepay Term Borrowings in an aggregate amount equal to 50% of Excess Cash Flow, if any, for such fiscal year. Each prepayment pursuant to this paragraph shall be made on or
before the date on which financial statements are required to be delivered pursuant to Section 5.01 with respect to the fiscal year for which Excess Cash Flow is being calculated (and in any event within 90 days after the end of such fiscal year).

  
 (e) Prior to any optional or mandatory prepayment of
Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid and shall specify such selection in the notice of such prepayment pursuant to paragraph (f) of this Section. In the event of any mandatory prepayment of Term
Borrowings made pursuant to Section 2.12(c) or (d) at a time when Term Borrowings of both Classes remain outstanding, the Borrower shall select Term Borrowings to be prepaid so that the aggregate amount of such prepayment is allocated between the
Tranche A Term Borrowings and Tranche B Term Borrowings pro rata based on the aggregate principal amount of outstanding Borrowings of each such Class. 
  
 (f) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed
by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing,
not later than 11:00 a.m., New York City time, on the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00 noon, New York City time, on the 

  

 47 

 
date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, the principal amount of each Borrowing or portion thereof to
be prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of such prepayment; provided that, if a notice of optional prepayment is given in connection with a conditional notice of termination of
the Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09. Promptly following receipt of any such notice (other than a notice
relating solely to Swingline Loans), the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the
same Type as provided in Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be
accompanied by accrued interest unpaid to the extent required by Section 2.14. 
  
 SECTION 2.13. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee, which shall accrue at the Commitment Fee Rate on the average daily
unused amount of the Revolving Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which such Commitment terminates. Accrued commitment fees shall be payable in arrears on the last day of
March, June, September and December of each year and on the date on which the Revolving Commitments terminate, commencing on the first such date to occur after the Effective Date. All commitment fees shall be computed on the basis of a year of 360
days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). For purposes of computing commitment fees with respect to Revolving Commitments, a Revolving Commitment of a Lender shall be deemed
to be used to the extent of the outstanding Revolving Loans and the LC Exposure of such Lender (and the Swingline Exposure of such Lender shall be disregarded for such purpose). 
  
 (b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee
with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Margin then in effect with respect thereto as interest on Eurodollar Revolving Loans on the daily amount of such Lender’s LC Exposure (excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Revolving Commitment terminates and the date on which such
Lender ceases to have any LC Exposure and (ii) to the applicable Issuing Bank a fronting fee, which shall accrue at the rate of .125% per annum on the outstanding amount of Letters of Credit issued by such Issuing Bank during the period from and
including the Effective Date to but excluding the later of the date of termination of the Revolving Commitments and the date on which there ceases to be any outstanding Letters of Credit issued by such Issuing Bank, as well as the applicable Issuing
Bank’s standard and customary fees with respect to the issuance (other than in respect of Existing Letters of Credit), amendment, renewal or extension of any Letter of Credit or processing 

  

 48 

 
of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year
shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Revolving Commitments terminate and
any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on written demand. Any other fees payable to the applicable Issuing Bank pursuant to this paragraph shall be payable within 10 days after written
demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (c) All voluntary prepayments of Tranche B Term Loans effected on or prior to
the first anniversary of the Effective Date with the proceeds of a substantially concurrent issuance or incurrence of Indebtedness (including any replacement or incremental term loan facility effected pursuant to an amendment of this Agreement) in
connection with a repricing or refinancing of all or any portion of the Tranche B Term Loans will be accompanied by a prepayment fee equal to 1.0% of the aggregate principal amount of any such prepayment, which fee shall be paid by the Borrower to
the Administrative Agent, for the accounts of the Tranche B Lenders, on the date of such prepayment. 
  
 (d) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon in
writing between the Borrower and the Administrative Agent. 
  
 (e)
All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees, participation fees
and prepayment fees, to the Lenders entitled thereto. Fees paid shall not be refundable under any circumstances. 
  
 SECTION 2.14. Interest. (a) The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate
plus the Applicable Margin. 
  
 (b) The Loans comprising each
Eurodollar Borrowing shall bear interest (i) in the case of a Eurodollar Revolving Borrowing or a Eurodollar Term Borrowing, at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin and (ii) in the
case of a Eurodollar Competitive Borrowing, at the LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus, as applicable) the Margin applicable to such Borrowing. 
  
 (c) Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable to such Fixed Rate Loan. 
  

 49 

 (d) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount
payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue
principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Revolving Loans as provided in paragraph
(a) of this Section, from the date overdue until such amount is paid. 
  
 (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments; provided that (i) interest accrued pursuant
to paragraph (d) of this Section shall be payable on written demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Revolving Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion. 
  
 (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate
shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. 
  
 SECTION 2.15. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing: 
  
 (i) the Administrative Agent determines (which determination
shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or LIBO Rate for such Interest Period; or 
  
 (ii) the Administrative Agent is advised by the Required Lenders (or, in the case of a Eurodollar
Competitive Loan, the Lender that is required to make such a Eurodollar Competitive Loan) that the Adjusted LIBO Rate or LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining
their Loans included in such Borrowing for such Interest Period; 
  
 then the
Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving
rise to such notice no longer exist, (i) any Interest Election Request that requests 

  

 50 

 
the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request
requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. 
  
 SECTION 2.16. Increased Costs. (a) If any Change in Law shall: 
  
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or an Issuing Bank; or 
  
 (ii) impose on any Lender or an Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar
Loans or Fixed Rate Loans made by such Lender or any Letter of Credit or participation therein; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan or Fixed Rate Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the applicable Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the applicable Issuing Bank hereunder
(whether of principal, interest or otherwise), then the Borrower will pay to such Lender or the applicable Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank, as the case may be,
for such additional costs incurred or reduction suffered. 
  
 (b)
If any Lender or an Issuing Bank determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such
Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level
below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and
the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts
as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender or an Issuing Bank setting forth (i) the amount or amounts necessary to compensate such Lender or such Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and (ii) that is such Lender’s or Issuing Bank’s customary practice, from and after the date of such certificate, to charge its borrowers for such
increased costs incurred by such Lender or such Issuing Bank, as the case may be, shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or such 

  

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Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 
  
 (d) Failure or delay on the part of any Lender or an Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing
Bank pursuant to this Section for any increased costs or reductions incurred more than 30 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor. 
  
 (e) Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled to compensation pursuant to this Section in respect of any
Competitive Loan if the Change in Law that would otherwise entitle it to such compensation shall have been publicly announced prior to submission of the Competitive Bid pursuant to which such Competitive Loan was made. 
  
 SECTION 2.17. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurodollar Loan or Fixed Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Revolving Loan, Fixed Rate Loan or Term Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.09 or Section 2.12(f) and is revoked in accordance therewith), (d) the failure to borrow any Competitive Loan after accepting the Competitive Bid to make such Competitive Loan, or (e) the assignment of any Eurodollar Loan or
Fixed Rate Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.20, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to equal an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on
the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate, LIBO Rate or Fixed Rate, as the case may be, that would have been applicable to such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount
for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof. 
  

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 SECTION 2.18. Taxes. (a) Any and all payments by or on account of any obligation of the Borrower
hereunder or under any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.18) the Administrative Agent, Lender or Issuing
Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law. 
  
 (b)
In addition, the Borrower shall pay any Other Taxes (not already paid pursuant to Section 2.18(a)(iii)) to the relevant Governmental Authority in accordance with applicable law. 
  
 (c) The Borrower shall indemnify the Administrative Agent, each Lender and the applicable Issuing Bank, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the
Borrower hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.18) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower
by a Lender or the applicable Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error. Notwithstanding the foregoing, the Borrower shall have no liability
pursuant to this Section 2.18(c) to indemnify the Administrative Agent, a Lender or an Issuing Bank for Indemnified Taxes or Other Taxes that were paid by the Administrative Agent, such Lender or such Issuing Bank more than 90 days prior to written
demand for indemnification. 
  
 (d) As soon as practicable after
any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt, if any, issued by such Governmental Authority
evidencing such payment, a copy of the return, if any, reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
  
 (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as 

  

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will permit such payments to be made without withholding or at a reduced rate of withholding, provided that such Foreign Lender has received written notice
from the Borrower advising it of the availability of such exemption or reduction and supplying all applicable documentation provided by such jurisdiction. 
  
 (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it
has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.18, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 2.18 with respect to the Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any interest
imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This Section shall not be construed to
require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 
  
 (g) Notwithstanding any provision of the Loan Documents to the contrary, this
Section 2.18 shall be the sole provision governing indemnities and claims for Indemnified Taxes and Other Taxes under the Loan Documents. 
  
 SECTION 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.16, 2.17 or 2.18, or otherwise) prior to the time expressly required hereunder or under such
other Loan Document for such payment (or, if no such time is expressly required, prior to 12:00 noon, New York City time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on
any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices
at 270 Park Avenue, New York, New York, except payments to be made directly to an Issuing Bank or the Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.16, 2.17, 2.18 and 9.03 shall be made directly to the
Persons entitled thereto and payments pursuant to other Loan Documents shall be made to the Persons specified therein. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan Document shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case 

  

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of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments under each Loan Document shall be made in
dollars. 
  
 (b) If at any time insufficient funds are received by
and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any
of its Revolving Loans, Term Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans, Term Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans, Term
Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans, Term Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto
is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable
law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation. 
  
 (d) Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or an Issuing Bank hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as the case may be, the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the 

  

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Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation. 
  
 (e) If any Lender shall fail to make
any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.19(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 SECTION 2.20. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section
2.16, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.18, then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.16 or 2.18, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous in any material respect to such Lender. The
Borrower hereby agrees to pay all reasonable out-of-pocket costs and expenses incurred by any Lender in connection with any such designation or assignment. 
  
 (b) If any Lender requests compensation under Section 2.16, or if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.18, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement (other than any outstanding Competitive Loans
held by it) to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative
Agent (and, if a Revolving Commitment is being assigned, each Issuing Bank and the Swingline Lender), which consent(s) shall not unreasonably be withheld or delayed, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans (other than Competitive Loans) and funded participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal, funded participations and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.16 or payments
required to be made pursuant to Section 2.18, such assignment will result in a material 

  

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reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
  
 ARTICLE III 
  
 Representations and Warranties 
  
 The Borrower represents and warrants to the Lenders that: 
  
 SECTION 3.01. Organization; Powers. The Borrower and each of its Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as
applicable, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, has not had and would not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 SECTION 3.02. Authorization; Enforceability. The Transactions to be entered into by each Loan Party are within such Loan Party’s corporate or
other organizational powers and have been duly authorized by all necessary corporate or other organizational and, if required, stockholder action. This Agreement has been duly executed and delivered by the Borrower and constitutes, and each other
Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of the Borrower or such Loan Party (as the case may be), enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or
at law. 
  
 SECTION 3.03. Governmental Approvals; No
Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been (or prior to the Effective Date will be) obtained or made and
are in full force and effect and except filings necessary to perfect Liens created under the Loan Documents, (b) will not violate any applicable law or regulation or order of any Governmental Authority (except where such violation has not resulted,
and would not reasonably be expected to result in, a Material Adverse Effect) or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries, (c) will not violate or result in a default under any indenture or
any other material agreement or instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result
in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens created under the Loan Documents or otherwise permitted under Section 6.02. 
  

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 SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Borrower has heretofore
furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2003, reported on by PricewaterhouseCoopers LLP, independent registered public
accounting firm, and (ii) as of and for the fiscal quarter ended June 30, 2004 and the portion of the fiscal year then ended, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the
statements referred to in clause (ii) above. 
  
 (b) The Borrower
has heretofore furnished to the Lenders its pro forma consolidated balance sheet as of June 30, 2004, prepared giving effect to the Transactions, the Split-Off and the issuance and sale of the Subordinated Notes as if such events had occurred on
such date. Such pro forma consolidated balance sheet (i) has been prepared in good faith based on the same assumptions used to prepare the pro forma financial statements included in the Offering Memorandum dated August 13, 2004 with respect to the
Subordinated Debt (which assumptions are believed by the Borrower to be reasonable), (ii) is based on the best information available to the Borrower after due inquiry, (iii) accurately reflects all adjustments necessary to give effect to the
Transactions, the issuance and sale of the Subordinated Notes and the Split-Off and (iv) presents fairly, in all material respects, the pro forma financial position of the Borrower and its consolidated Subsidiaries as of June 30, 2004 as if the
Transactions, the issuance and sale of the Subordinated Notes and the Split-Off Date had occurred on such date. 
  
 (c) Except as set forth in the Borrower’s filings with the SEC publicly available after June 16, 2002 and prior to August 11, 2004 (the “SEC
Documents”) or in the projections included in the Information Memorandum, since December 31, 2003, there has been no event, condition or circumstance that has had or would reasonably be expected to have a Material Adverse Effect.

  
 SECTION 3.05. Properties. (a) The Borrower and each of
its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted
or to utilize such properties for their intended purposes. 
  
 (b)
The Borrower and each of its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to the business of the Borrower and its Subsidiaries taken as a whole, and to the
knowledge of the Borrower, the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, has not had and would not reasonably be
expected to result in a Material Adverse Effect. 
  

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 SECTION 3.06. Litigation and Environmental Matters. (a) Except as set forth in the SEC Documents,
there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely determined, would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any of the Loan Documents or the
Transactions. 
  
 (b) Except with respect to matters that,
individually or in the aggregate, have not had and would not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with respect to any Environmental Liability or (iv)
knows of any basis for any Environmental Liability. 
  
 SECTION
3.07. Compliance with Laws and Agreements. The Borrower and each of its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and
other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, has not had and would not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.08. Investment and Holding Company Status. Neither the
Borrower nor any of its Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935. 
  
 SECTION 3.09.
Taxes. The Borrower and each of its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) any Taxes
that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so has not had and would not
reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, would reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than $25,000,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all Plans (based on the assumptions used for
purposes of Statement of 

  

 59 

 
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than
$25,000,000 the fair market value of the assets of all such Plans. 
  
 SECTION 3.11. Disclosure. The Borrower has delivered to the Administrative Agent true and correct copies of the Viacom Agreements. Neither the Information Memorandum nor any of the other reports, financial statements, certificates or
other information furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented
by other written information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, taken as a whole, not
misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time when prepared, it being
recognized by the Lenders that such projections and other information regarding future events are not to be viewed as facts and that actual results or developments during the period or periods covered may differ from the delivered projections and
other prospective information. 
  
 SECTION 3.12.
Subsidiaries. Schedule 3.12 sets forth the name of, and the ownership interest of the Borrower in, each Subsidiary of the Borrower and identifies each Material Subsidiary, each Significant Foreign Subsidiary and each Foreign Subsidiary, in
each case as of the Effective Date. 
  
 SECTION 3.13.
Insurance. Schedule 3.13 sets forth a description of all insurance maintained by or on behalf of the Borrower and its Subsidiaries as of the Effective Date. As of the Effective Date, all premiums in respect of such insurance have been paid.
The Borrower believes that the insurance maintained by or on behalf of the Borrower and its Subsidiaries is adequate. 
  
 SECTION 3.14. Labor Matters. As of the Effective Date, there are no material strikes, lockouts or slowdowns against the Borrower or any Subsidiary
pending or, to the knowledge of the Borrower, threatened. The consummation of the Transactions and the Split-Off will not give rise to any right of termination or right of renegotiation on the part of any union under any material collective
bargaining agreement to which the Borrower or any Subsidiary is bound. 
  
 SECTION 3.15. Solvency. Immediately after the consummation of the Transactions to occur on the Effective Date and immediately following the making of each Loan made on the Effective Date and after giving effect to the application of
the proceeds of such Loans (including to finance the Special Dividend), (a) the fair value of the assets of the Borrower and the other Loan Parties on a consolidated basis, at a fair valuation, will exceed its debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of the Borrower and the other Loan Parties on a consolidated basis will be greater than the amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent or otherwise, 

  

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as such debts and other liabilities become absolute and matured; (c) the Borrower and the other Loan Parties on a consolidated basis will be able to pay its
debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) the Borrower and the other Loan Parties on a consolidated basis will not have unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted following the Effective Date. 
  
 SECTION 3.16. Senior Indebtedness. The Obligations constitute “Senior Indebtedness” under and as defined in the Subordinated Debt
Documents. 
  
 SECTION 3.17. Franchises. The Borrower (i)
is not in default under any material franchise agreement or material area development agreement between the Borrower and any of its Franchisees, and (ii) is in compliance with all state and federal franchise laws applicable to the Borrower, except
for instances of default or noncompliance that, individually or in the aggregate, have not had and would not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.18. Security Interests. (a) When executed and delivered, the Collateral Agreement will be effective to
create in favor of the Collateral Agent for the ratable benefit of the Secured Parties (as defined in the Collateral Agreement) a valid and enforceable security interest in the Collateral and (i) when the Collateral constituting certificated
securities (as defined in the Uniform Commercial Code) is delivered to the Collateral Agent thereunder together with instruments of transfer duly endorsed in blank, the security interest of the Collateral Agent therein will constitute a fully
perfected Lien on, and security interest in, all right, title and interest of the pledgors in such Collateral, prior and superior in right to any other Person (it being understood that no representation is made under this clause (i) as to (A) any
such Collateral that is subject to a Foreign Pledge Agreement or (B) the perfection or priority of any Lien to the extent that such perfection or priority is determined under the law of a jurisdiction outside the United States, which are covered by
paragraph (b) below), and (ii) when financing statements in appropriate form are filed in the offices specified in the Perfection Certificate, the security interest of the Collateral Agent will constitute a fully perfected Lien on and security
interest in all right, title and interest of the Grantors (as defined in the Collateral Agreement) in the remaining Collateral to the extent perfection can be obtained by filing Uniform Commercial Code financing statements, prior and superior to the
rights of any other Person. 
  
 (b) After taking the actions
specified for perfection therein, each Foreign Pledge Agreement, when executed and delivered, will be effective under applicable law to create in favor of the Collateral Agent for the ratable benefit of the Secured Parties a valid and enforceable
security interest in the Collateral subject thereto, and will constitute a fully perfected Lien on and security interest in all right, title and interest of the Loan Parties in the collateral subject thereto, prior and superior to the rights of any
other Person. 
  

 61 

 SECTION 3.19. Use of Proceeds. The Borrower will use the proceeds of the Loans and will request
the issuance of Letters of Credit only for the purposes set forth in Section 5.10. 
  
 SECTION 3.20. Federal Reserve Regulation. No part of the proceeds of any of the Loans will be used for any purpose which violates or is inconsistent with the provisions of Regulation T, U or X of the Board.
None of Borrower or any of its Subsidiaries is engaged or will engage, principally or as one of its important activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin
stock” within the meaning of Regulation U. As of the Effective Date, no more than 25% of the value of the assets of the Borrower, or of the Borrower and its Subsidiaries taken as a whole, which are subject to the restrictions contained in
Article VI would constitute Margin Stock. If the proceeds of any Loans are to be used in a manner which would cause such Loans to be classified as “purpose credits” under Regulation U, then at the time of the making of such Loans and at
the time of the making of each Loan thereafter (after applying the proceeds of all Loans then being or theretofore made), no more than 25% of the value of the assets of the Borrower, or of the Borrower and its Subsidiaries taken as a whole, which
are subject to the restrictions contained in Article VI shall constitute Margin Stock. 
  
 ARTICLE IV 
  
 Conditions

  
 SECTION 4.01. Effective Date. The obligations of
the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) The Administrative Agent (or its counsel) shall have received from each
party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such
party has signed a counterpart of this Agreement. 
  
 (b) The
Administrative Agent shall have received favorable written opinions (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Vinson & Elkins L.L.P., counsel for the Borrower, and of Edward B. Stead, General Counsel
of the Borrower, substantially in the forms of Exhibit B-1 and Exhibit B-2, respectively. The Borrower hereby requests such counsel to deliver such opinions. 
  
 (c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of each Loan Party, the authorization of the Transactions and any other legal matters relating to the Loan Parties, the Loan 

  

 62 

 
Documents or the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent. 
  
 (d) The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the Chief Executive Officer or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02. 
  
 (e) The Administrative Agent shall have received all fees and other amounts
due and payable on or prior to the Effective Date, including, to the extent invoiced at least one Business Day prior to the Effective Date, reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements
of counsel) required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document. 
  
 (f) (i) The Collateral and Guarantee Requirement shall have been satisfied, (ii) the Administrative Agent shall have received a completed Perfection
Certificate dated the Effective Date and signed by an executive officer or Financial Officer of the Borrower, together with all attachments contemplated thereby, (iii) the Borrower shall have delivered, and caused each Subsidiary Loan Party to
deliver, to the Collateral Agent all certificates, if any, representing Equity Interests required to be pledged pursuant to the Collateral and Guarantee Requirement and (iv) the Collateral Agent, for the ratable benefit of the Lenders, shall have a
fully perfected first priority Lien on, and security interest in, the Collateral. 
  
 (g) The terms and conditions of the Subordinated Debt and the provisions of the Subordinated Debt Documents shall be reasonably satisfactory to the Lenders. The Administrative Agent shall have received copies of the
Subordinated Debt Documents, certified by a Financial Officer as complete and correct. 
  
 (h) All consents and approvals required to be obtained from any Governmental Authority or other Person in connection with the Transactions shall have been obtained and shall be in full force and effect. 
  
 (i) The Existing Credit Agreement shall have been terminated and all amounts
outstanding thereunder shall have been repaid or shall be repaid substantially simultaneously with the making of the initial Loans hereunder pursuant to arrangements reasonably satisfactory to the Administrative Agent. 
  
 Upon satisfaction of each of the conditions set forth in Section 4.01, the Borrower and the
Administrative Agent shall execute a certificate of effectiveness in the form attached hereto as Exhibit I confirming such satisfaction and confirming the Effective Date, and thereafter, the Administrative Agent shall promptly notify the Lenders in
writing of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective
unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 5:00 p.m., New 

  

 63 

 
York City time, on October 31, 2004 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

  
 SECTION 4.02. Each Credit Event. The obligation of each
Lender to make a Loan on the occasion of any Borrowing, and of an Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to receipt of the request therefor in accordance herewith and to the satisfaction of the following
conditions: 
  
 (a) The representations and warranties of each
Loan Party set forth in the Loan Documents shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit (or, if any such representation
or warranty is expressly stated to have been made as of a specific date, as of such specific date). 
  
 (b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, no
Default shall have occurred and be continuing. 
  
 Each Borrowing and each
issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 
  
 ARTICLE V 
  
 Affirmative Covenants 
  
 Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent and
each Lender: 
  
 (a) within 90 days after the end of each fiscal
year of the Borrower, its audited consolidated balance sheet and related audited statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for
the previous fiscal year, all reported on by PricewaterhouseCoopers LLP or other independent registered public accounting firm of recognized national standing (without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP (it being understood that such financial statements and opinion may be furnished, if included therein, in the form of the Borrower’s Annual Report on Form 10-K and any related Annual
Report delivered to stockholders and filed with the Securities and Exchange Commission); 
  

 64 

 (b) within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the
Borrower, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects
the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the absence of footnotes (it being understood that
such financial statements may be furnished, if included therein, in the form of the Borrower’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission); 
  
 (c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial
Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) identifying any Subsidiary formed or
acquired during the most recent fiscal quarter covered by such financial statements, and stating whether the Collateral and Guarantee Requirement has been satisfied in respect of such Subsidiary, (iii) setting forth reasonably detailed calculations
demonstrating compliance with Sections 6.12 and 6.13 and (iv) stating whether any change in GAAP or in the application thereof has occurred since (A) with respect to the initial set of financial statements delivered hereunder, the date of the
Borrower’s audited financial statements referred to in Section 3.04, and (B) thereafter, the date of the Borrower’s previously delivered financial statements referred to in Section 5.01(a), and, if any such change has occurred, specifying
the effect of such change on the financial statements accompanying such certificate; 
  
 (d) concurrently with any delivery of financial statements under clause (a) above, a certificate of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the
course of their examination of such financial statements of any Default (which certificate may be limited to the extent required by accounting rules or guidelines); 
  
 (e) promptly after the same become publicly available, copies of all periodic and other reports, and proxy statements filed
by, the Borrower or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as
the case may be; and 
  
 (f) promptly following any request
therefor, such other information regarding the operations, business affairs and financial condition of, the Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably
request. 
  
 Reports and other information required to be delivered pursuant to
subsections (a), (b) and (e) of this Section 5.01 shall be deemed to have been delivered on the date on which 

  

 65 

 
the Borrower posts such reports on its website at www.blockbuster.com or when such reports are posted on the SEC’s website at www.sec.gov;
provided that the Borrower shall deliver to the Administrative Agent at the time such financial statements are made available the certification of a Financial Officer, as required by paragraph (b) above, and, in the case of annual financial
statements, the certification required by paragraph (c) above. 
  
 SECTION 5.02. Notices of Material Events. The Borrower will furnish to the Administrative Agent, promptly after any Financial Officer or other executive officer of the Borrower becomes aware thereof, written notice of the following:

  
 (a) the occurrence of any Default; 
  
 (b) the filing or commencement of any action, suit or proceeding by or before
any arbitrator or Governmental Authority against or affecting, the Borrower or any Subsidiary that, if adversely determined, would reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that, alone or together with any other
ERISA Events that have occurred, would reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000; and 
  
 (d) any other event or occurrence that results in, or would reasonably be expected to result in, a Material Adverse Effect.

  
 Each notice delivered under this Section shall be accompanied by a statement
of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 SECTION 5.03. Information Regarding Collateral. (a) The Borrower will
furnish to the Administrative Agent prompt written notice of any change (i) in any Loan Party’s legal name, (ii) in any Loan Party’s identity, form of organization or jurisdiction of organization or (iii) in any Loan Party’s Federal
Taxpayer Identification Number or identifying number (if any) assigned by the jurisdiction of its organization. The Borrower agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the
Uniform Commercial Code or otherwise that are required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected first priority security interest in all the Collateral. 
  
 (b) Each year, at the time of delivery of annual financial statements with
respect to the preceding fiscal year pursuant to clause (a) of Section 5.01, the Borrower shall deliver to the Administrative Agent a certificate of a Financial Officer of the Borrower (i) setting forth the information required pursuant to Sections
1 and 2 of the Perfection Certificate or confirming that there has been no change in such information since the date of the Perfection Certificate delivered on the Effective Date or the date of 

  

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the most recent certificate delivered pursuant to this Section and (ii) certifying that all appropriate filings, recordings or registrations, including all
refilings, rerecordings and reregistrations, containing a description of the Collateral have been filed of record in each governmental, municipal or other appropriate office in each jurisdiction identified pursuant to clause (i) above to the extent
necessary to protect and perfect the security interests under the Collateral Agreement for a period of not less than 18 months after the date of such certificate (except as noted therein with respect to any continuation statements to be filed within
such period). 
  
 SECTION 5.04. Existence; Conduct of
Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and (except where the failure to do so would not
reasonably be expected to result in a Material Adverse Effect) the rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and trade names material to the conduct of its business; provided that the foregoing shall
not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03. 
  
 SECTION 5.05. Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay its Taxes and other material obligations
(other than Indebtedness), before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, and the Borrower or such Subsidiary has set aside on its
books adequate reserves with respect thereto in accordance with GAAP and (b) the failure to make payment would not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 5.06. Maintenance of Properties. The Borrower will, and will cause each of its Subsidiaries to, keep and
maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted. In addition, the Borrower will, and will cause each of its Subsidiaries to, from time to time make or cause to be
made all appropriate repairs, renewals and replacements, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 5.07. Insurance. The Borrower will, and will cause each of its Subsidiaries to, maintain, with financially
sound and reputable insurance companies insurance in such amounts (with no greater risk retention) and against such risks as a prudent company with similar financial resources engaged in the same or similar businesses operating in the same or
similar locations would maintain. The Borrower will furnish to the Lenders, upon reasonable written request of the Administrative Agent, information in reasonable detail as to the insurance so maintained. 
  
 SECTION 5.08. Books and Records; Inspection and Audit Rights. The
Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and
will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any 

  

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Lender, upon reasonable prior written notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss
its affairs, finances and condition with its officers and independent accountants, all at such reasonable times during normal business hours and as often as reasonably requested. 
  
 SECTION 5.09. Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all
laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

  
 SECTION 5.10. Use of Proceeds and Letters of Credit.
The proceeds of the Term Loans and the Revolving Loans made on the Effective Date, together with the proceeds of the Subordinated Debt, will be used only for (a) the payment of amounts, including principal, interest, costs, fees and expenses,
outstanding or payable under the Existing Credit Agreement, (b) the payment of the Special Dividend, (c) the payment of fees and expenses payable in connection with the Transactions, the issuance and sale of the Subordinated Debt, the Special
Dividend and the Split-Off and (d) for general corporate purposes, including working capital, stock repurchases and acquisitions. The Revolving Loans made after the Effective Date, Competitive Loans and Swingline Loans will be used only for general
corporate purposes, including working capital purposes, stock repurchases and acquisitions. Viacom LCs will be issued only as required by the Split-Off Agreement. Letters of Credit will be issued only to support payment obligations incurred in the
ordinary course of business. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations U and X. 
  
 SECTION 5.11. Additional Subsidiaries. If any Subsidiary is formed or
acquired after the Effective Date, the Borrower will, within ten Business Days after such Subsidiary is formed or acquired, notify the Administrative Agent and the Lenders thereof and within 15 Business Days after such Subsidiary is formed or
acquired cause the Collateral and Guarantee Requirement to be satisfied with respect to such Subsidiary (if it is a Subsidiary Loan Party) and with respect to any Equity Interest in such Subsidiary, if it is a Domestic Subsidiary or a Significant
Foreign Subsidiary, owned by or on behalf of any Loan Party (subject to the limits on Significant Foreign Subsidiaries set forth in clause (b) of the definition of “Collateral and Guarantee Requirement” and in the Collateral Agreement).

  
 SECTION 5.12. Further Assurances. The Borrower will,
and will cause each Subsidiary Loan Party to, execute any and all further documents, agreements and instruments, and take all such further actions, which may be required under any applicable law, or which the Administrative Agent or the Required
Lenders may reasonably request, to cause the Collateral and Guarantee Requirement to be and remain satisfied, all at the expense of the Loan Parties. 
  

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 ARTICLE VI 
  
 Negative Covenants 
  
 Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: 
  

SECTION 6.01. Indebtedness; Certain Equity Securities. (a) The Borrower will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Indebtedness or any Attributable Debt in respect of Sale and Leaseback Transactions, except: 
  
 (i) Indebtedness created under the Loan Documents; 
  
 (ii) the Subordinated Debt; 
  
 (iii) Indebtedness existing on the date hereof and, in the case of Indebtedness owed to Persons other than
the Borrower or Subsidiaries in a principal amount in excess of $1,000,000, set forth on Schedule 6.01; 
  
 (iv) unsecured Indebtedness of the Borrower, the Net Proceeds of which are used solely to prepay Term Loans and pay associated interest,
costs and expenses within five Business Days of the receipt of the Net Proceeds of such unsecured Indebtedness; 
  
 (v) Indebtedness represented by Commercial Paper if such Indebtedness is permitted pursuant to Section 6.13; 
  
 (vi) Permitted Subordinated Indebtedness; provided that such
Indebtedness is permitted pursuant to Section 6.13; 
  
 (vii) unsecured Indebtedness of the Borrower or any Subsidiaries in addition to the Indebtedness permitted above; provided that the aggregate principal amount of Indebtedness permitted by this clause shall not exceed $100,000,000 at any
time outstanding; 
  
 (viii) Indebtedness of the
Foreign Subsidiaries (other than Indebtedness owed to the Borrower or Domestic Subsidiaries) in an aggregate principal amount at any time outstanding not in excess of the greater of (i) $100,000,000 and (ii) an amount equal to 10% of the total
assets of all Foreign Subsidiaries as of the end of the most recent fiscal quarter in respect of which financial statements have been delivered pursuant to Section 5.01 (calculated on a combined basis for such Foreign Subsidiaries in accordance with
GAAP); 
  
 (ix) unsecured Indebtedness of the
Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary; provided that (x) such 

  

 69 

 
Indebtedness owed by any Loan Party is subordinated to the Obligations in accordance with the provisions of an Affiliate Subordination Agreement
substantially in the form of Exhibit J hereto and (y) Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or any Subsidiary Loan Party shall be subject to Section 6.04; 
  
 (x) Indebtedness and Attributable Debt of the Borrower or
any Subsidiary incurred to finance the acquisition, construction or improvement of any franchise development rights or capital or other long-term assets, including Capital Lease Obligations, any Indebtedness assumed in connection with the
acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof (or prior to the acquisition of any Subsidiary holding such assets, provided that such Indebtedness or Attributable Debt was not incurred in
contemplation thereof) and Attributable Debt in connection with Sale and Leaseback Transactions permitted by Section 6.06, provided that (x) such Indebtedness or Attributable Debt is incurred prior to or within 90 days after such acquisition
or the completion of such construction or improvement, and (y) the amount of such Indebtedness or Attributable Debt does not exceed the cost of acquiring, constructing or improving such franchise development rights or assets, and (z) the aggregate
principal amount of Indebtedness permitted by this clause (x) and Attributable Debt in connection with Sale and Leaseback Transactions permitted by Section 6.06, together with any Refinancing Indebtedness in respect thereof permitted by clause (xi)
below, shall not exceed $40,000,000 at any time outstanding; 
  
 (xi) Refinancing Indebtedness in respect of the Indebtedness provided by clauses (iii), (iv) and (x); 
  
 (xii) Guarantees by the Borrower or other Loan Parties of Indebtedness of Domestic Subsidiaries or, to the extent permitted by Section
6.04(c), Foreign Subsidiaries; and 
  
 (xiii)
Guarantees by the Borrower of Indebtedness or Attributable Debt of Franchisees in an aggregate amount at any time outstanding not exceeding $40,000,000 or such lesser amount as is permitted to be outstanding pursuant to Section 6.04(c). 

 
 (b) The Borrower will not permit any Domestic Subsidiary or Significant
Foreign Subsidiary to issue any preferred Equity Interests other than to the Borrower or any Subsidiary Loan Party; provided that any such preferred Equity Interests issued to the Borrower or any Subsidiary Loan Party shall be pledged
pursuant to the terms of the Collateral Agreement or, in the case of Equity Interests of Significant Foreign Subsidiaries, a Foreign Pledge Agreement. 
  
 SECTION 6.02. Liens. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset 

  

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now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:

  
 (i) Liens created under the Loan Documents;

  
 (ii) Permitted Encumbrances; 
  
 (iii) any Lien on any property or asset of the Borrower or
any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that any such Lien shall secure only Indebtedness or obligations which it secures on the date hereof or any Refinancing Indebtedness permitted in respect of
any such Indebtedness or any refinancing of any such other obligation not constituting Indebtedness that does not significantly increase the amount thereof; 
  
 (iv) Liens on franchise development rights or capital or other long-term assets acquired, constructed or improved by the Borrower or any
Subsidiary after the date hereof; provided that (A) such security interests secure Indebtedness permitted by clause (x) of Section 6.01(a) or refinancings thereof permitted by clause (xi) of Section 6.01(a), (B) such security interests and
the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (C) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or
improving such fixed or capital assets and (D) such security interests shall not apply to any other property or assets of the Borrower or any Subsidiary; 
  
 (v) Liens on assets of Subsidiaries acquired after the Effective Date existing at the time of such acquisition and not incurred in
contemplation thereof securing Indebtedness permitted by Section 6.01(a)(x); 
  
 (vi) Liens on assets of Foreign Subsidiaries securing Indebtedness permitted by Section 6.01(a)(viii); and 
  
 (vii) Liens created pursuant to the express terms of the Viacom Agreements as in effect on the Effective Date, or as subsequently amended
or modified to the extent permitted by Section 6.11, provided, however, that no Lien permitted under this clause (vii) will extend to any Collateral. 
  
 SECTION 6.03. Fundamental Changes. The Borrower will not, and will not permit any Subsidiary to, merge into or
consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be
continuing, (i) (a) any wholly owned domestic Subsidiary may merge or consolidate with the Borrower in a transaction in which the Borrower is the surviving entity and (b) the Borrower may merge or consolidate with any other Person so long as the
Borrower is the surviving entity or the surviving corporation (if the surviving corporation is not the Borrower) shall be organized under the laws of a state of the United States of America or the District of Columbia and shall assume all of the
Loans and other obligations of the Borrower under this Agreement pursuant to a written instrument 

  

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satisfactory to the Administrative Agent and shall cause to be delivered such opinions of counsel satisfactory to the Administrative Agent as the
Administrative Agent shall reasonably request relating to such merger and assumption, (ii) any Person may merge or consolidate with any Subsidiary in a transaction in which the surviving entity is a Subsidiary and (if any party to such merger is a
Subsidiary Loan Party) is a Subsidiary Loan Party and (iii) any Subsidiary (other than a Subsidiary Loan Party) may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the
Borrower and is not materially disadvantageous to the Lenders; provided, in each case that any such merger or consolidation involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted
unless also permitted by Section 6.04. 
  
 SECTION 6.04.
Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold, acquire, make or permit to exist any Investment, except: 
  
 (a) Permitted Investments; 
  
 (b) Investments (other than in Subsidiaries) existing on the date hereof;

  
 (c) Investments by the Borrower and its Subsidiaries in Equity
Interests in their Subsidiaries; provided that (i) any such Equity Interests held by a Loan Party in a Domestic Subsidiary or a Significant Foreign Subsidiary shall be pledged pursuant to the Collateral Agreement or a Foreign Pledge Agreement
(subject to the limitations applicable to Equity Interests of a Significant Foreign Subsidiary referred to in the definition of “Collateral and Guarantee Requirement”) and (ii) the aggregate cumulative amount of Investments by Loan Parties
in, and loans and advances by Loan Parties to, and guarantees by Loan Parties of Indebtedness or other obligations of, Foreign Subsidiaries (excluding any such equity Investments existing on the Effective Date and any such loans, advances or
guarantees existing on the Effective Date and set forth on Schedule 6.01), taken together with the aggregate amount of Guarantees of Indebtedness or Attributable Debt of Franchisees permitted under Section 6.01(a)(xiii), shall not exceed $90,000,000
at any time outstanding; 
  
 (d) loans or advances made by the
Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary; provided that (i) such loans or advances comply with the applicable provisions of Section 6.01(a) and (ii) the amount of such loans and advances
made by Loan Parties to Foreign Subsidiaries shall be subject to the limitation set forth in clause (c) above; 
  
 (e) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and
suppliers, in each case in the ordinary course of business; 
  
 (f) Permitted Acquisitions; 
  
 (g) Investments
consisting of non-cash consideration permitted to be received in respect of sales or dispositions of assets permitted by Section 6.05; 
  

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 (h) Investments consisting of Guarantees of Indebtedness of Franchisees permitted by Section
6.01(a)(xiii); 
  
 (i) guarantees by the Borrower or other Loan
Parties of obligations other than Indebtedness of any Subsidiary Loan Party, in each case in the ordinary course of business; and 
  
 (j) other Investments in an aggregate cumulative amount not in excess of $50,000,000. 
  
 SECTION 6.05. Asset Sales. The Borrower will not, and will not permit any of its Subsidiaries to, sell, transfer,
lease or otherwise dispose of (in one transaction or a series of transactions) all or any substantial part of the assets of the Borrower and the Subsidiaries, taken as a whole, or any Equity Interest owned by it, nor will the Borrower permit any of
its Subsidiaries to issue any additional Equity Interest in such Subsidiary (other than to the Borrower or a Subsidiary), except: 
  
 (a) sales of inventory, used or surplus equipment and Permitted Investments in the ordinary course of business, including sales to
Franchisees; 
  
 (b) sales, transfers and
dispositions to the Borrower or a Subsidiary; provided that any such sales, transfers or dispositions involving a Subsidiary that is not a Loan Party shall be made in compliance with Section 6.09; 
  
 (c) Permitted Store Sales; and 
  
 (d) sales, transfers and other dispositions of assets (other
than Equity Interests in a Subsidiary) that are not permitted by any other clause of this Section; provided that the cumulative aggregate fair market value of all assets sold, transferred or otherwise disposed of in reliance upon this clause
(d) (determined at the time of any such sale or disposition and without regard to subsequent changes in such value) shall not exceed $100,000,000; 
  
 provided that all sales, transfers, leases and other dispositions permitted hereby (i) shall (except in the case of those permitted by clause (b) above) be made
for fair value and (ii) shall be made solely for consideration of which at least 75% thereof is in cash or cash equivalents (provided that sales of Permitted Investments shall be made solely for cash or cash equivalents and Permitted Store Sales may
be effected for non-cash consideration not otherwise permitted hereunder having an aggregate cumulative fair market value not in excess of $25,000,000). 
  
 SECTION 6.06. Sale and Leaseback Transactions. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any arrangement,
directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter acquired, and thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or transferred (a “Sale and Leaseback Transaction”), except for any such sale of any fixed or capital assets that is made for cash consideration in an 

  

 73 

 
amount not less than the cost of such fixed or capital asset and is consummated within 90 days after the Borrower or such Subsidiary acquires or completes
the construction of such fixed or capital asset; provided that the amount of Attributable Debt in respect of all such Sale and Leaseback Transactions, when taken together with all other Indebtedness permitted by Section 6.01(a)(x), does not
at any time exceed $40,000,000. 
  
 SECTION 6.07. Hedging
Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower
or any Subsidiary is exposed in the conduct of its business or the management of its liabilities. 
  
 SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness. (a) The Borrower will not, and will not permit any Subsidiary to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except (i) the Borrower may declare and pay dividends with respect to its capital stock payable solely in
additional shares of its common stock, (ii) Subsidiaries may declare and pay dividends ratably with respect to their capital stock, (iii) the Borrower may make Restricted Payments, not exceeding a cumulative aggregate amount of $15,000,000 pursuant
to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (iv) the Borrower may pay the Special Dividend, (v) the Borrower may make Restricted Payments from time to time if
no Default shall have occurred and be continuing at the time such Restricted Payment is declared or at the time such Restricted Payment is made (after giving effect thereto) in an aggregate cumulative amount equal to the sum of (x) $300,000,000 and
(y) 100% of the aggregate Net Proceeds received by the Borrower from the issuance or sale of its Equity Interests subsequent to December 31, 2003 (other than an issuance or sale to a Subsidiary and other than an issuance or sale to an employee stock
ownership plan or to a trust established by the Borrower or any of its Subsidiaries for the benefit of their employees) minus the cumulative aggregate amount of Repurchase Expenditures made in respect of Subordinated Debt or Permitted
Subordinated Indebtedness pursuant to clause (v) of Section 6.08(b), (vi) the Borrower may make Restricted Payments from time to time if no Default shall have occurred and be continuing at the time such Restricted Payment is declared or at the time
such Restricted Payment is made (and after giving effect thereto) in a cumulative aggregate amount equal to 50% of Adjusted Consolidated Net Income accrued during the period (treated as one accounting period) from December 31, 2003 to the end of the
most recent fiscal quarter ending at least 45 days prior to the date of such Restricted Payment (or, in case such Consolidated Net Income shall be a deficit, minus 100% of such deficit), provided that no Restricted Payment may be declared or
made in reliance on this clause (vi) at any time when the Leverage Ratio is greater than 2.00 to 1.00 and (vii) the Borrower may acquire Equity Interests in the Borrower or options with respect thereto in exchange for Equity Interests in the
Borrower or options for Equity Interests in the Borrower. 
  
 (b)
The Borrower will not, and will not permit any Subsidiary to, make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in 

  

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cash, securities or other property) of or in respect of principal of or interest on any Indebtedness, or any payment or other distribution (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except: 
  
 (i) payment of Indebtedness created under the Loan
Documents; 
  
 (ii) payment of regularly
scheduled interest and principal payments as and when due in respect of any Indebtedness; 
  
 (iii) refinancings of Indebtedness to the extent permitted by Section 6.01; and 
  
 (iv) payment of secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (v) the repurchase or redemption of not more than 35% of the initial principal amount of the Subordinated Debt or any future issuance of
Permitted Subordinated Indebtedness, in each case with the Net Proceeds received by the Borrower after the Effective Date from issuances (other than under employee plans) of shares of its common stock (other than Net Proceeds in respect of which
Restricted Payments have been made pursuant to clause (v)(y) of Section 6.08(a)), provided such repurchases or redemptions are effected pursuant to and in accordance with the terms of the Subordinated Debt Documents or the indentures or other
instruments governing such Permitted Subordinated Indebtedness, as the case may be, and made not later than 90 days after receipt of such Net Proceeds; and 
  
 (vi) prepayments of Capital Lease Obligations with respect to real estate interests in Stores or with respect to equipment for the purpose
of enabling the Borrower or a Subsidiary to acquire such real estate interests or equipment. 
  
 SECTION 6.09. Transactions with Affiliates. The Borrower will not, and will not permit any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (i) transactions in the ordinary course of business that are at prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (ii) transactions between or among the Borrower and the Subsidiaries not involving any other Affiliate, (iii) the performance and payment by the Borrower
of its obligations under, and other transactions required pursuant to, the Viacom Agreements and (iv) Restricted Payments permitted pursuant to Section 6.08. 
  
 SECTION 6.10. Restrictive Agreements. The Borrower will not, and will not permit any Subsidiary to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit to exist any 

  

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Lien upon any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its
capital stock or to make or repay loans or advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions
imposed by law or by any Loan Document or Subordinated Debt Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.10 (but shall apply to any extension or renewal of, or any
amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in leases restricting the
assignment or subletting thereof. 
  
 SECTION 6.11. Amendment
of Material Documents. The Borrower will not, and will not permit any Subsidiary to, amend, modify or waive any of its rights or increase its obligations under (a) its certificate of incorporation, by-laws or other organizational documents
(except as specifically contemplated in the S-4) in a manner materially adverse to the interests of the Lenders or (b) any Viacom Agreement, if, such amendment, modification, waiver or increase, taken as a whole, results in, or would reasonably be
expected to result in, a material adverse effect on the ability of the Loan Parties, taken as a whole, to perform any of their material obligations under any Loan Document. 
  
 SECTION 6.12. Fixed Charge Coverage Ratio. The Borrower will not permit the Fixed Charge Coverage Ratio for any
period of four consecutive fiscal quarters ending on or after September 30, 2004 to be less than 1.35 to 1.00. 
  
 SECTION 6.13. Leverage Ratio. The Borrower will not permit the Leverage Ratio as of any date during any period set forth below to exceed the ratio
set forth opposite such period: 
  

			
	 Period

	  	Ratio

		
	 Through December 30, 2006
	  	3.25 to 1.00
		
	 From December 31, 2006 through December 30, 2007
	  	3.00 to 1.00
		
	 From December 31, 2007 through December 30, 2008
	  	2.75 to 1.00
		
	 December 31, 2008 and thereafter
	  	2.50 to 1.00

  

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 ARTICLE VII 
  
 Events of Default 
  
 If any of the following events (“Events of Default”) shall occur: 
  
 (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  
 (b) the Borrower shall fail to pay any interest on any Loan or any fee payable under this Agreement, when and as the same shall come due and payable, and
such failure shall continue unremedied for a period of five days, or any Loan Party shall fail to pay any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and
as the same shall become due and payable, and such failure shall continue unremedied for a period of ten days; 
  
 (c) any representation or warranty made or deemed made by or on behalf of, the Borrower or any Subsidiary in or in connection with any Loan Document or
any amendment or modification thereof or waiver thereunder, or in any report, certificate, financial statement or other document furnished in writing pursuant to or in connection with any Loan Document or any amendment or modification thereof or
waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made; 
  
 (d) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Article VI or in Sections 5.02, 5.04 (with respect to
the existence of the Borrower), or 5.11 (with respect to the Collateral and Guarantee Requirement being satisfied concerning any new Domestic Subsidiary or new Significant Foreign Subsidiary being formed or acquired); 
  
 (e) any Loan Party shall fail to observe or perform any covenant, condition
or agreement contained in any Loan Document (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after written notice thereof from the Administrative Agent to the
Borrower (which notice will be given at the request of any Lender); 
  
 (f) the Borrower or any Material Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable after giving
effect to any applicable grace periods provided for in the document governing such Material Indebtedness; 
  
 (g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with
or without the giving of notice, the lapse of time or both) the holder or holders of any Material 

  

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Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness; 
  
 (h) an involuntary proceeding shall be commenced
or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Material Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial
part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (i) the Borrower or any Material Subsidiary shall (i) voluntarily commence
any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail
to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the
Borrower or any Material Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the foregoing; 
  
 (j) the Borrower or any Material Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due; 
  

(k) one or more judgments for the payment of money in an aggregate amount (net of any insurance proceeds the Borrower or any such Material Subsidiary
receives or is reasonably likely to receive within 90 days of such judgment) in excess of $50,000,000 shall be rendered by a court or other authority having jurisdiction against the Borrower or any Material Subsidiary or any combination thereof and
the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any
Material Subsidiary to enforce any such judgment; 
  
 (l) an ERISA
Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, would reasonably be expected to result in a Material Adverse Effect; 
  
 (m) any Guarantee or Lien purported to be created under any Security Document
shall cease to be, or shall be asserted by any Loan Party not to be, a valid 

  

 78 

 
Guarantee or a valid and perfected Lien, with the priority required by the applicable Security Document, except in the case of a Lien, as a result of the
Administrative Agent’s failure to maintain possession of any stock certificates delivered to it under the Collateral Agreement; or 
  
 (n) a Change in Control shall occur; 
  
 then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during (but
only during) the continuance of such event, the Administrative Agent shall at the request of the Required Lenders or may with the Required Lenders’ written consent, by notice to the Borrower, take either or both of the following actions, at the
same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to
be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or
(i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically
become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
  
 ARTICLE VIII 
  
 The Administrative Agent 
  
 Each of the Lenders and each Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto. In addition, to the extent required under the laws of any jurisdiction other than the United
States, each of the Lenders and the Issuing Banks hereby grants to the Administrative Agent any required powers of attorney to execute any Security Document governed by the laws of such jurisdiction on such Lender’s or Issuing Bank’s
behalf. 
  
 The bank serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder. 
  

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 The Administrative Agent shall not have any duties or obligations except those expressly set forth in the
Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative
Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing
by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall not be deemed to have knowledge of any Default unless and until written notice thereof is given
to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other
than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  
 The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be
made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not
be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply
to any such sub-agent and to the Related Parties of each Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent. 
  

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 Subject to the appointment and acceptance of a successor to the Administrative Agent as provided in this
paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the Borrower’s consent (which consent shall not
be unreasonably withheld or delayed), to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
  
 Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and
based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or related agreement or any
document furnished hereunder or thereunder. 
  
 The banks (or
Affiliates thereof) identified in this Agreement as a “documentation agent” or “syndication agent” shall not have any right, power, liability, responsibility or duty under this Agreement other than those applicable to all banks
herein. 
  
 ARTICLE IX 
  
 Miscellaneous 
  
 SECTION 9.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows: 
  
 (a) if to the Borrower, to it at 1201
Elm Street, Suite 2100; Dallas, Texas 75270, Attention of Treasurer (Telecopy No. 214-854-3599) and if such notice is in respect of a Default or an Event of Default with a copy to the same address, attention of General Counsel (Telecopy
214-854-3677); 
  

 81 

 (b) if to the Administrative Agent, to JPMorgan Chase Bank, Loan and Agency Services Group, 1111 Fannin,
10th Floor, Houston, Texas 77002, Attention of Ms. Dakisha Allen (Telecopy No. (713) 750-2666), with a copy to JPMorgan Chase Bank, 270 Park Avenue, New York, New York 10017, Attention of Mr. Barry Bergman (Telecopy No. (212) 270-6637); 

 
 (c) if to any Issuing Bank, to it at the address most recently specified
by it in a notice delivered to the Administrative Agent and the Borrower; 
  
 (d) if to the Swingline Lender, to JPMorgan Chase Bank, Loan and Agency Services Group, 1111 Fannin, 10th Floor, Houston, Texas 77002, Attention of Ms. Dakisha Allen (Telecopy No. (713) 750-2666) with a copy to
JPMorgan Chase Bank, 270 Park Avenue, New York, New York 10017, Attention of Mr. Barry Bergman (Telecopy No. (212) 270-6637); and 
  
 (e) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 
  
 Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 

 
 SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, an Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Banks and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the
generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the applicable Issuing Bank may have had notice or
knowledge of such Default at the time. 
  
 (b) Neither this
Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except, in the case of 

  

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this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or, in the case of any other Loan
Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the consent of the Required Lenders; provided that no such
agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the maturity of any Loan, or any scheduled date of payment of the principal amount of any Term Loan under Section 2.11, or the required date of reimbursement of any LC
Disbursement, or any date for the payment of any interest or fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration or reduction of any Commitment, without the written consent
of each Lender affected thereby, (iv) change Section 2.19(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each affected Lender, (v) change any of the provisions of this Section
or the percentage set forth in the definition of “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights
thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (or each Lender of such Class, as the case may be), (vi) release any Subsidiary Loan Party from its Guarantee under the Collateral
Agreement (except as expressly provided in the Collateral Agreement), or limit its liability in respect of such Guarantee, without the written consent of each Lender, (vii) release all or any substantial part of the Collateral from the Liens of the
Security Documents, without the written consent of each Lender, or (viii) change any provisions of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments due to Lenders holding Loans of any Class
differently than those holding Loans of any other Class, without the written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of each affected Class; provided further that (a) no such agreement
shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, an Issuing Bank or the Swingline Lender without the prior written consent of the Administrative Agent, such Issuing Bank or the Swingline Lender, as the case
may be, and (b) any waiver, amendment or modification of this Agreement that by its terms affects the rights or duties under this Agreement of one Class of Lenders (but not any other Class of Lenders) may be effected by an agreement or agreements in
writing entered into by the Borrower and requisite percentage in interest of the affected Class of Lenders that would be required to consent thereto under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time.
Notwithstanding the foregoing, any provision of this Agreement may be amended by an agreement in writing entered into by the Borrower, the Required Lenders and the Administrative Agent (and, if their rights or obligations are affected thereby, the
Issuing Banks and the Swingline Lender) if (i) by the terms of such agreement the Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such
amendment becomes effective, each Lender not consenting thereto receives payment (including pursuant to an 

  

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assignment to a replacement Lender in accordance with Section 9.04) in full of the principal of and interest accrued on each Loan made by it and all other
amounts owing to it or accrued for its account under this Agreement. 
  
 SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of one counsel, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Banks in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Issuing Banks or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, the
Issuing Banks or any Lender, in connection with the enforcement or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder,
including all such reasonable out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 
  

(b) The Borrower shall indemnify the Administrative Agent, the Issuing Banks and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for
any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any other agreement or instrument contemplated hereby, the performance by the
parties to the Loan Documents of their obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan, Letter of Credit or the use of the proceeds therefrom (including any refusal by an
Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence, bad faith or willful misconduct of such Indemnitee. 
  

 84 

 (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, an Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, the applicable Issuing Bank or the Swingline Lender, as the case may be, such
Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the applicable Issuing Bank or the Swingline Lender in its capacity as such. For purposes hereof, a Lender’s “pro rata share” shall be
determined based upon its share of the sum of the aggregate Revolving Exposures, outstanding Term Loans and unused Commitments at the time. 
  
 (d) To the extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the
Transactions, any Loan, Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable not later than 10 days after written demand therefor. 
  
 SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit), except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other
than the parties hereto, their successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Viacom LC or other Letter of Credit) and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 
  
 (A) the Borrower, provided that no consent of the
Borrower shall be required for (1) an assignment of any Term Loan to a Lender, an Affiliate of a Lender, or an Approved Fund, (2) an assignment of a Revolving Commitment to a Revolving Lender or (3) if an Event of 

  

 85 

 
Default under paragraph (a), (b), (h) or (i) of Article VII has occurred and is continuing, any such assignment to any other assignee; and 
  
 (B) the Administrative Agent and each Principal Issuing
Bank, provided that no consent of the Administrative Agent or any Principal Issuing Bank shall be required for an assignment of any Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund. 
  
 (ii) Assignments shall be subject to the following additional conditions:

  
 (A) except in the case of an assignment to a
Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each such
assignment shall not be less than $3,000,000 in the case of a Revolving Commitment or $1,000,000 in all other cases, unless each of the Borrower and the Administrative Agent otherwise consents, provided that no such consent of the Borrower
shall be required if an Event of Default under paragraph (a), (b), (h) or (i) of Article VII has occurred and is continuing: 
  
 (B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans or
apply to rights in respect of outstanding Competitive Loans; 
  
 (C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500; and 
  
 (D) the assignee, if it shall not be a Lender, shall deliver
to the Administrative Agent an Administrative Questionnaire. 
  
 For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning: 
  
 “Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans
and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

 
 (iii) Subject to acceptance and recording thereof pursuant to paragraph
(d) of this Section, from and after the effective date specified in each Assignment and Acceptance the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of 

  

 86 

 
a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.16, 2.17, 2.18 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (e) of this Section. 
  
 (c) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in The City of New York a copy of
each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Banks and any Lender, at any reasonable time
and from time to time upon reasonable prior notice. 
  
 (d) Upon
its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Acceptance and record the information
contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 
  
 (e) Any Lender may, without the consent of the Borrower, the Administrative Agent, the Issuing Banks or the Swingline
Lender, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans
owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce the Loan Documents and to approve any amendment, modification or waiver of any provision of the Loan Documents;
provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) 

  

 87 

 
that affects such Participant. Subject to paragraph (f) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.16, 2.17 and 2.18 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of
Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.19(c) as though it were a Lender. 
  
 (f) A Participant shall not be entitled to receive any greater payment under Section 2.16 or 2.18 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 2.18 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.18(e) as though it were a
Lender. 
  
 (g) Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge
or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

  
 SECTION 9.05. Survival. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent, the Issuing Banks or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.16, 2.17, 2.18 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof. 
  
 SECTION 9.06. 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. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees or expense
reimbursements 

  

 88 

 
payable to the Administrative Agent or any arranger of the credit facilities contemplated hereby constitute the entire contract among the parties relating to
the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 SECTION 9.07. 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. 
  
 SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by
such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall
have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

  
 SECTION 9.09. Governing Law; Jurisdiction; Consent to
Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
  
 (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive 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 any Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto 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 of the parties hereto 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 or any other Loan Document shall affect any right that the Administrative Agent, the Issuing 

  

 89 

 
Banks or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its
properties in the courts of any jurisdiction. 
  
 (c) The Borrower
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which 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 or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court. 
  
 (d) Each party to
this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01, such service to be effective upon receipt. Nothing in this Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law. 
  
 SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. 
  
 SECTION 9.11. Headings.
Article and Section headings and the Table of Contents 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.

  
 SECTION 9.12. Confidentiality. Each of the
Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (in which case such Person thereby required agrees to inform the
Borrower prior to such disclosure), (d) to any other party to this Agreement, (e) in connection with the 

  

 90 

 
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (g) with the prior written consent of the Borrower or (h) to the extent such Information becomes publicly available other than as a result of a breach of this Section. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is publicly available. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as a commercially prudent Person would accord to
its own confidential information. 
  
 SECTION 9.13. Interest
Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law
(collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable
law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. 
  
 SECTION 9.14. Patriot Act. The Lenders hereby notify the Borrower that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), they may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address
of the Borrower and other information that will allow each Lender to identify the Borrower in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective for each Lender. 

 

 91 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

			
	BLOCKBUSTER INC.,
		
	by	 	 /S/    LARRY J.
ZINE

	 	 	 Name:  Larry J. Zine

	 	 	 Title:    Executive Vice President & Chief         Financial
Officer

	 	 	 
	JPMORGAN CHASE BANK, individually and as Administrative Agent,
		
	by	 	 /S/    THOMAS H.
KOZLARK

	 	 	 Name:  Thomas H. Kozlark

	 	 	 Title:    Vice President

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	Citicorp North America, Inc.
	 	 	

  

			
		
	by	 	 /S/  ROBERT H. CHAN

	 	 	Name: Robert H. Chan
	 	 	Title: Vice President

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	 Commerzbank AG, New York
 and Grand Cayman
Branches

	 	 	

  

			
		
	by	 	 /S/  MARIANNE I. MEDORA

	 	 	Name: Marianne I. Medora
	 	 	Title: Senior Vice President

			
		
	by	 	 /S/  CHARLES W. POLET

	 	 	Name: Charles W. Polet
	 	 	Title: Assistant Treasurer

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	 CREDIT SUISSE FIRST BOSTON,
 acting through its Cayman
Islands Branch

	 	 	

  

			
		
	by	 	 /S/  BILL O’DALY

	 	 	Name: Bill O’Daly
	 	 	Title: Director

			
		
	by	 	 /S/  CASSANDRA DROOGAN

	 	 	Name: Cassandra Droogan
	 	 	Title: Associate

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	Sumitomo Mitsui Banking Corporation
	 	 	

  

			
		
	by	 	 /S/  EDWARD D. HENDERSON,
JR.

	 	 	Name: Edward D. Henderson, Jr.
	 	 	Title: General Manager

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	The Bank of New York
	 	 	

  

			
		
	by	 	 /S/  KRISTEN E. TALABER

	 	 	Name: Kristen E. Talaber
	 	 	Title: Vice President

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	The Royal Bank of Scotland plc
	 	 	

  

			
		
	by	 	 /S/  JAYNE SEAFORD

	 	 	Name: Jayne Seaford
	 	 	Title: Senior Vice President

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	U.S. Bank National Association
	 	 	

  

			
		
	by	 	 /S/  GREGORY DRYDEN

	 	 	Name: Gregory Dryden
	 	 	Title: Sr. Vice President

 SIGNATURE PAGE TO THE 
 BLOCKBUSTER INC. 
 CREDIT AGREEMENT 
  
  

			
	 Name of Institution:
	 	Wachovia Bank National Association
	 	 	

  

			
		
	by	 	 /S/  AARON H. HEADLEY

	 	 	Name: Aaron H. Headley
	 	 	Title: AssociateGuarantee and Collateral Agreement

 Exhibit 10.25 
  

  
 GUARANTEE AND COLLATERAL AGREEMENT 
  
 dated as of

  
 August 20, 2004 
  
 among 
  
 BLOCKBUSTER INC., 
  
 THE SUBSIDIARIES OF BLOCKBUSTER INC. 
 IDENTIFIED HEREIN 
  
 and 
  
 JPMORGAN CHASE BANK, 
  
 as Collateral Agent 
  

  

 TABLE OF CONTENTS 
  

					
	ARTICLE I	 	 
		
	Definitions	 	 
			
	 SECTION 1.01.
	 	 Credit Agreement
	 	1
			
	 SECTION 1.02.
	 	 Other Defined Terms
	 	1
		
	ARTICLE II	 	 
		
	Guarantee	 	 
			
	 SECTION 2.01.
	 	 Guarantee
	 	3
			
	 SECTION 2.02.
	 	 Guarantee of Payment
	 	3
			
	 SECTION 2.03.
	 	 No Limitations
	 	3
			
	 SECTION 2.04.
	 	 Reinstatement
	 	4
			
	 SECTION 2.05.
	 	 Agreement To Pay; Subrogation
	 	5
			
	 SECTION 2.06.
	 	 Information
	 	5
		
	ARTICLE III	 	 
		
	Pledge of Securities	 	 
			
	 SECTION 3.01.
	 	 Pledge
	 	5
			
	 SECTION 3.02.
	 	 Delivery of the Collateral
	 	6
			
	 SECTION 3.03.
	 	 Representations, Warranties and Covenants
	 	6
			
	 SECTION 3.04.
	 	 Representations, Warranties and Covenants for Limited Liability Company and Limited Partnership Interests
	 	8
			
	 SECTION 3.05.
	 	 Registration in Nominee Name; Denominations
	 	8
			
	 SECTION 3.06.
	 	 Voting Rights; Dividends and Interest
	 	8

  

					
		
	ARTICLE IV	 	 
		
	Remedies	 	 
			
	 SECTION 4.01.
	 	 Remedies Upon Event of Default
	 	10
			
	 SECTION 4.02.
	 	 Application of Proceeds
	 	12
			
	 SECTION 4.03.
	 	 Securities Act
	 	12
			
	 SECTION 4.04.
	 	 Registration
	 	13
		
	ARTICLE V	 	 
		
	Indemnity, Subrogation and Subordination	 	 
			
	 SECTION 5.01.
	 	 Indemnity and Subrogation
	 	14
			
	 SECTION 5.02.
	 	 Contribution and Subrogation
	 	14
			
	 SECTION 5.03.
	 	 Subordination
	 	14
		
	ARTICLE VI	 	 
		
	Miscellaneous	 	 
			
	 SECTION 6.01.
	 	 Notices
	 	15
			
	 SECTION 6.02.
	 	 Waivers; Amendment
	 	15
			
	 SECTION 6.03.
	 	 Collateral Agent’s Fees and Expenses; Indemnification
	 	15
			
	 SECTION 6.04.
	 	 Successors and Assigns
	 	16
			
	 SECTION 6.05.
	 	 Survival of Agreement
	 	16
			
	 SECTION 6.06.
	 	 Counterparts; Effectiveness; Several Agreement
	 	17
			
	 SECTION 6.07.
	 	 Severability
	 	17
			
	 SECTION 6.08.
	 	 Right of Set-Off
	 	17
			
	 SECTION 6.09.
	 	 Governing Law; Jurisdiction; Consent to Service of Process
	 	17
			
	 SECTION 6.10.
	 	 WAIVER OF JURY TRIAL
	 	18
			
	 SECTION 6.11.
	 	 Headings
	 	18
			
	 SECTION 6.12.
	 	 Security Interest Absolute
	 	19

  

					
			
	 SECTION 6.13.
	 	 Termination or Release
	  	19
			
	 SECTION 6.14.
	 	 Additional Subsidiaries
	  	19
			
	 SECTION 6.15.
	 	 Collateral Agent Appointed Attorney-in-Fact
	  	20

  

 Schedules 
  

			
	Schedule I	  	Subsidiary Parties
	Schedule II	  	Pledged Stock

  
 Exhibits 
  

			
	Exhibit I	  	Form of Supplement
	Exhibit II	  	Form of Perfection Certificate

  

 GUARANTEE AND COLLATERAL AGREEMENT dated as of August 20, 2004, among BLOCKBUSTER INC., the Subsidiaries
of BLOCKBUSTER INC. identified herein and JPMORGAN CHASE BANK, as Collateral Agent. 
  
 Reference is made to the Credit Agreement dated as of August 20, 2004 (as amended, supplemented, extended or otherwise modified from time to time, the “Credit Agreement”), among Blockbuster Inc. (the
“Borrower”), the Lenders party thereto and JPMorgan Chase Bank, as Administrative Agent. The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agreement. The obligations
of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Guarantee and Collateral Agreement (as amended, supplemented, extended or otherwise modified from time to time, this
“Agreement”). The Subsidiary Parties are affiliates of the Borrower, will derive substantial benefits from the extension of credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this
Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Credit
Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement. All terms defined in the New York UCC (as defined herein) and not defined in this Agreement have the
meanings specified therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC. 
  
 (b) The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement; provided, that for purposes hereof
references to “this Agreement” set forth in clauses (c) and (d) of Section 1.03 of the Credit Agreement shall refer to this Agreement rather than the Credit Agreement. 
  
 SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

  
 “Agreement” has the meaning assigned to such
term in the preliminary statement of this Agreement. 
  
 “Borrower” has the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 “Claiming Party” has the meaning assigned to such term in Section 5.02 this Agreement. 
  
 “Collateral” has the meaning assigned to such term in
Section 3.01. 
  

 “Contributing Party” has the meaning assigned to such term in Section 5.02 this
Agreement. 
  
 “Credit Agreement” has the meaning
assigned to such term in the preliminary statement of this Agreement. 
  
 “Federal Securities Laws” has the meaning assigned to such term in Section 4.03. 
  
 “Grantors” means the Borrower and each Subsidiary Party that at any time owns any Equity Interests in any Domestic Subsidiary or any
Significant Foreign Subsidiary, and “Grantor” shall mean any such Person individually. 
  
 “Guarantors” means the Subsidiary Parties, and “Guarantor” shall mean any such Person individually. 
  
 “Loan Document Obligations” means (a) the due and punctual
payment by the Borrower of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on
the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and
as due, including payments in respect of reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (iii) all other monetary obligations of the Borrower to any of the Secured Parties under the Credit Agreement
and each of the other Loan Documents, including obligations to pay fees, expense reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), and (b) the due and punctual payment of all the monetary obligations of each other Loan
Party under or pursuant to this Agreement and each of the other Loan Documents. 
  
 “New York UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York. 
  
 “Obligations” means (a) Loan Document Obligations and (b) except as otherwise agreed between a Loan Party and the counterparty to the
relevant Hedging Agreement, the due and punctual payment of all monetary obligations of each Loan Party under each Hedging Agreement that (i) is in effect on the Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as of
the Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is entered into. 
  
 “Perfection Certificate” means a certificate substantially in the form of Exhibit II, completed and
supplemented with the schedules and attachments 

  

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contemplated thereby, and duly executed by a Financial Officer and the Secretary of the Borrower. 
  
 “Pledged Securities” means any stock certificates or other
securities now or hereafter included in the Collateral, including all certificates or other documents representing or evidencing any Collateral. 
  
 “Pledged Stock” has the meaning assigned to such term in Section 3.01. 
  
 “Proceeds” has the meaning specified in Section 9-102 of the New York UCC. 
  
 “Secured Parties” means (a) the Lenders, (b) the Collateral
Agent, (c) the Administrative Agent, (d) the security trustee under the Security Trust Deed and Security Over Shares Agreement governed by the laws of the United Kingdom, (e) the Issuing Banks, (f) each counterparty to any Hedging Agreement with a
Loan Party the obligations under which constitute Obligations, (g) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document and (h) the successors and assigns of each of the foregoing. 
  
 “Subsidiary Parties” means (a) the Domestic Subsidiaries
identified on Schedule I and (b) each other Domestic Subsidiary that becomes a party to this Agreement as a Subsidiary Party after the Effective Date. 
  
 ARTICLE II 
  
 Guarantee 
  
 SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations.
Each of the Guarantors further agrees that the Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any
Obligation. Each of the Guarantors waives presentment to, demand of payment from and protest to the Borrower or any other Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for
nonpayment. 
  
 SECTION 2.02. Guarantee of Payment. Each of
the Guarantors further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the Collateral Agent or any other Secured Party to any security
held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Collateral Agent or any other Secured Party in favor of the Borrower or any other Person. 
  
 SECTION 2.03. No Limitations. (a) Except for termination of a
Guarantor’s obligations hereunder as expressly provided in Section 6.13, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment 

  

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or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or
set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder
shall not be discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or any other Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise;
(ii) any rescission, waiver, amendment or modification of, or any release (other than a release of such Guarantor) from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under
this Agreement; (iii) the release of any security held by the Collateral Agent or any other Secured Party for the Obligations or any of them; (iv) any default, failure or delay, willful or otherwise, in the performance of the Obligations; or (v) any
other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all the
Obligations). Each Guarantor expressly authorizes the Secured Parties to take and hold security for the payment and performance of the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or
apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all without affecting the obligations of
any Guarantor hereunder. 
  
 (b) To the fullest extent permitted
by applicable law, each Guarantor waives any defense based on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower or any other Loan Party, other than the indefeasible payment in full in cash of all the Obligations. The Collateral Agent and the other Secured Parties may, at their election, foreclose on any security held by one or more
of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Borrower or any other Loan Party or
exercise any other right or remedy available to them against the Borrower or any other Loan Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully and
indefeasibly paid in full in cash (it being understood, however, that the foregoing does not independently authorize the Collateral Agent or any holder of Obligations to take any such action in respect of the Collateral other than as permitted by
the Security Documents). To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Loan Party, as the case may be, or any security. 
  
 SECTION 2.04. Reinstatement. Each of the Guarantors agrees that its guarantee hereunder shall continue to be effective or be reinstated, as the
case may be, if 

  

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at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by the Collateral Agent or any other Secured Party
upon the bankruptcy or reorganization of the Borrower, any other Loan Party or otherwise. 
  
 SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Collateral Agent or any other Secured Party has at law or in equity against any
Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Collateral Agent for distribution to the applicable Secured Parties in cash the amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as
provided above, all rights of such Guarantor against the Borrower or any other Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article V.

  
 SECTION 2.06. Information. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s and each other Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope
and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Collateral Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such
circumstances or risks. 
  
 ARTICLE III 
  
 Pledge of Securities 
  
 SECTION 3.01. Pledge. As security for the payment in full of the
Obligations, each Grantor hereby assigns, pledges and grants to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security interest in, all of such Grantor’s right, title and interest in, to and
under (a) the shares of capital stock and other Equity Interests in the Domestic Subsidiaries and Significant Foreign Subsidiaries as listed on Schedule II, and any other Equity Interests in any Domestic Subsidiaries and Significant Foreign
Subsidiaries (other than Blockbuster Australia Pty. Ltd.) obtained in the future by such Grantor and the certificates, if any, representing all such Equity Interests in the Domestic Subsidiaries and, subject to the restrictions set forth herein,
such Significant Foreign Subsidiaries (the “Pledged Stock”); (b) all other property that may be delivered to and held by the Collateral Agent pursuant to the terms of this Section 3.01; (c) subject to Section 3.06, all payments of
principal or interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds received in respect of, the
securities referred to in clauses (a) and (b) above; (d) subject to Section 3.06, all rights and privileges of the Grantor with respect to the securities and other property referred to in clauses (a), (b) and (c) above; and (e) subject to Section
3.06, all Proceeds of any of the foregoing (the items referred to in clauses (a) 

  

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through (d) above being collectively referred to as the “Collateral”); provided that the Collateral shall not include more than 65%
of the issued and outstanding voting Equity Interests of any Significant Foreign Subsidiary. 
  
 TO HAVE AND TO HOLD the Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its successors and assigns, for the ratable
benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions hereinafter set forth. 
  
 SECTION 3.02. Delivery of the Collateral. (a) Each Grantor agrees promptly to deliver or cause to be delivered to the Collateral Agent any and all
Pledged Securities. 
  
 (b) Upon delivery to the Collateral Agent,
(i) any Pledged Stock shall be accompanied by stock powers duly executed in blank or other instruments of transfer satisfactory to the Collateral Agent and by such other instruments and documents as the Collateral Agent may reasonably request and
(ii) all other property comprising part of the Collateral shall be accompanied by proper instruments of assignment duly executed by the relevant Grantor and such other instruments or documents as the Collateral Agent may reasonably request. Each
delivery of Pledged Stock shall be accompanied by a schedule prepared by the Grantors describing the securities, which schedule shall be attached hereto as Schedule II and made a part hereof; provided that failure to attach any such schedule
hereto shall not affect the validity of such pledge of such Pledged Stock. Each schedule so delivered shall supplement any prior schedules so delivered. 
  
 SECTION 3.03. Representations, Warranties and Covenants. Each Grantor represents, warrants and covenants to and with the Collateral Agent, for the
benefit of the Secured Parties, that: 
  
 (a)
Schedule II as provided by the Grantors hereunder correctly sets forth the percentage of the issued and outstanding units of each class of the Equity Interests of the issuer thereof represented by the Pledged Stock and includes the Equity Interests
in all Domestic Subsidiaries and Significant Foreign Subsidiaries required to be pledged by such Grantor hereunder in order to satisfy the Collateral and Guarantee Requirement; 
  
 (b) the Pledged Stock has been duly and validly authorized and issued by the issuers thereof and are fully
paid and nonassessable; 
  
 (c) except for the
security interests granted hereunder, such Grantor (i) is and, subject to any consolidations, dissolutions, mergers, or other transfers made in compliance with the Credit Agreement, will continue to be the direct owner, beneficially and of record,
of the Pledged Stock indicated on Schedule II as owned by such Grantor, (ii) holds the same free and clear of all Liens, other than Liens created by this Agreement, Permitted Encumbrances and transfers made in compliance with the Credit Agreement,
(iii) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any security interest in or 

  

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other Lien on, the Collateral, other than Liens created by this Agreement, Permitted Encumbrances and transfers made in compliance with the Credit Agreement,
and (iv) will defend its title or interest thereto or therein against any and all Liens (other than the Lien created by this Agreement and Permitted Encumbrances), however arising, of all Persons whomsoever; 
  
 (d) except for restrictions and limitations imposed by the
Loan Documents or securities laws generally, the organizational documents of the Person the Equity Interests of which are part of the Collateral or applicable law, the Collateral is and will continue to be freely transferable and assignable, and
none of the Collateral is or will be subject to any option, right of first refusal, shareholders agreement, or charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of
such Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies hereunder; 
  
 (e) such Grantor has the power and authority to pledge the Collateral pledged by it hereunder in the manner hereby done or contemplated;

  
 (f) no consent or approval of any
Governmental Authority, any securities exchange or any other Person was or is necessary to the validity of the pledge effected hereby (other than such as have been obtained and are in full force and effect); 
  
 (g) by virtue of the execution and delivery by such Grantor
of this Agreement, when any Pledged Stock is delivered to the Collateral Agent in accordance with this Agreement, the Collateral Agent will obtain a legal, valid and perfected first priority lien upon and security interest in such Pledged Stock as
security for the payment and performance of the Obligations; and 
  
 (h) the pledge effected hereby is effective to vest in the Collateral Agent, for the benefit of the Secured Parties, the rights of the Collateral Agent in the Collateral as set forth herein. 
  
 (i) The Perfection Certificate has been duly prepared,
completed and executed and the information set forth therein, including the exact legal name of such Grantor, is correct and complete as of the Effective Date. The Uniform Commercial Code financing statements prepared by the Collateral Agent based
upon the information provided to the Collateral Agent in the Perfection Certificate for filing in the office specified in the Perfection Certificate (or specified by notice from the Borrower to the Collateral Agent after the Effective Date in the
case of filings, recordings or registrations required by Sections 5.03(b) and 5.12 of the Credit Agreement), are all the filings, recordings and registrations that are necessary to publish notice of and protect the validity of and to establish a
legal, valid and perfected security interest in favor of the Collateral Agent (for the ratable benefit of the Secured Parties) in respect of the Collateral in which a security interest may be perfected by filing in the United States (or any
political 

  

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subdivision thereof) and its territories and possessions, and no further or subsequent filing or refiling is necessary in any such jurisdiction, except as
provided under applicable law with respect to the filing of continuation statements. 
  
 (j) Each year, at the time of delivery of annual financial statements with respect to the preceding fiscal year pursuant to Section
5.01(a) of the Credit Agreement, the Borrower shall deliver to the Collateral Agent a certificate executed by a Financial Officer and the Secretary of the Borrower complying with the provisions of Section 5.03(b) of the Credit Agreement. 

 
 SECTION 3.04. Representations, Warranties and Covenants for Limited
Liability Company and Limited Partnership Interests. (a) Each Grantor acknowledges and agrees that (i) each interest in any limited liability company or limited partnership controlled by such Grantor and pledged hereunder that is represented by
a certificate shall be a “security” within the meaning of Article 8 of the New York UCC and shall be governed by Article 8 of the New York UCC and (ii) each such interest shall at all times hereafter be represented only by a certificate.

  
 (b) Each Grantor further acknowledges and agrees that (i) the
interests in any limited liability company or limited partnership controlled by such Grantor and pledged hereunder that are not represented by a certificate are not “securities” within the meaning of Article 8 of the New York UCC and (ii)
such Grantor shall at no time elect to treat any such interest as a “security” within the meaning of Article 8 of the New York UCC or issue any certificate representing such interest, unless such Grantor provides prior written notification
to the Collateral Agent of such election and promptly delivers any such certificate to the Collateral Agent pursuant to the terms hereof. 
  
 SECTION 3.05. Registration in Nominee Name; Denominations. After the occurrence and during the continuance of an Event of Default, (a) the
Collateral Agent, on behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged Stock in its own name as pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the relevant
Grantor, endorsed or assigned in blank or in favor of the Collateral Agent; (b) each Grantor will promptly give to the Collateral Agent copies of any notices or other communications received by it with respect to Pledged Stock registered in the name
of such Grantor; and (c) the Collateral Agent, on behalf of the Secured Parties, shall have the right to exchange the certificates representing Pledged Stock for certificates of smaller or larger denominations for any purpose consistent with this
Agreement. 
  
 SECTION 3.06. Voting Rights; Dividends and
Interest. (a) Unless and until an Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified a Grantor that its rights under this Section 3.06 are being suspended: 
  
 (i) Such Grantor shall be entitled to exercise any and all
voting and/or other consensual rights and powers inuring to an owner of Pledged Stock or any 

  

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part thereof for any purpose consistent with the terms of this Agreement, the Credit Agreement and the other Loan Documents. 
  
 (ii) The Collateral Agent shall execute and deliver to such
Grantor, or cause to be executed and delivered to such Grantor, all such proxies, powers of attorney and other instruments as such Grantor may reasonably request for the purpose of enabling the Grantor to exercise the voting and/or consensual rights
and powers it is entitled to exercise pursuant to subparagraph (i) above. 
  
 (iii) Such Grantor shall be entitled to receive and retain any and all dividends and other distributions paid on or distributed in respect of the Pledged Stock to the extent and only to the extent that such dividends
and other distributions are permitted by, and otherwise paid or distributed in accordance with, the terms and conditions of the Credit Agreement, the other Loan Documents and applicable laws; provided that any noncash dividends or other
distributions that would constitute Pledged Stock, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Stock or received in exchange for Pledged Stock or any part
thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Collateral, and, if received by a Grantor,
shall not be commingled by such Grantor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent and shall be forthwith delivered to the Collateral Agent
in the same form as so received (with any necessary endorsement). 
  
 (b) Upon the occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified a Grantor of the suspension of its rights under paragraph (a)(iii) of this Section 3.06, then all rights of the
Grantor to dividends or other distributions that the Grantor is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.06 shall be suspended, and all such rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to receive and retain such dividends or other distributions. All dividends or other distributions received by any Grantor contrary to the provisions of this Section 3.06 shall be held in trust for the
benefit of the Collateral Agent, shall be segregated from other property or funds of the Grantor and shall be forthwith delivered to the Collateral Agent upon demand in the same form as so received (with any necessary endorsement). Any and all money
and other property paid over to or received by the Collateral Agent pursuant to the provisions of this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money or
other property and shall be applied in accordance with the provisions of Section 4.02. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, the Collateral Agent
shall revoke its notification of suspension of dividend rights delivered pursuant to paragraph (b) of this Section 3.06 and promptly repay to each Grantor (without interest) all dividends or other distributions that each Grantor would otherwise be
permitted to 

  

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retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that remain in such account. 
  
 (c) Upon the occurrence and during the continuance of an Event of Default,
after the Collateral Agent shall have notified a Grantor of the suspension of its rights under paragraph (a)(i) of this Section 3.06, then all rights of the Grantor to exercise the voting and consensual rights and powers it is entitled to exercise
pursuant to paragraph (a)(i) of this Section 3.06, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall have the
sole and exclusive right and authority to exercise such voting and consensual rights and powers; provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to time following and
during the continuance of an Event of Default to permit such Grantor to exercise such rights; provided further that such Grantor may refuse to exercise such rights. After all Events of Default have been cured or waived and the Borrower has
delivered to the Collateral Agent a certificate to that effect, the Collateral Agent shall revoke its notification of suspension of voting rights delivered pursuant to paragraph (c) of this Section 3.06. 
  
 (d) Any notice given by the Collateral Agent to a Grantor suspending its
rights under paragraph (a) of this Section 3.06 (i) shall be given in writing, (ii) may suspend the rights of such Grantor under paragraph (a)(i) or paragraph (a)(ii) in part without suspending all such rights (as specified by the Collateral Agent
in its sole and absolute discretion) and without waiving or otherwise affecting the Collateral Agent’s rights to give additional notices from time to time suspending other rights so long as an Event of Default has occurred and is continuing.

  
 ARTICLE IV 
  
 Remedies 
  
 SECTION 4.01. Remedies Upon Event of Default. Upon the occurrence and during the continuance of an Event of Default,
each Grantor agrees to deliver each item of Collateral to the Collateral Agent on demand. Each Grantor agrees that the Collateral Agent shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent shall be
authorized at any such sale of securities (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to Persons who will represent and agree that they are purchasing the Collateral for their own account for investment and
not with a view to the distribution or sale thereof, and upon consummation of any such sale the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold. Each such purchaser
at any sale of Collateral shall hold the property sold absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all rights of 
  

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redemption, stay and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter
enacted. 
  
 The Collateral Agent shall give the relevant Grantors
10 days’ written notice (which each Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of Collateral.
Such notice, in the case of a public sale, shall state the time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day
on which the Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may
fix and state in the notice (if any) of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion)
determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral Agent may, without
notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the
same was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the purchaser or purchasers
thereof, but the Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice.
At any public (or, to the extent permitted by law, private) sale made pursuant to this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by law) from any right of redemption, stay, valuation or appraisal on the part
of any Grantor (all said rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to such
Secured Party from any Grantor as a credit against the purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor. For purposes
hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be entitled to the return of
the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full. As an
alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or
decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially reasonable standards as

  

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provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions. 
  
 SECTION 4.02. Application of Proceeds. The Collateral Agent shall apply the proceeds of any collection or sale of
Collateral, including any Collateral consisting of cash, as follows: 
  
 FIRST, to the payment of all costs and expenses incurred by the Collateral Agent and the Administrative Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan
Document or any of the Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Grantor
and any other reasonable out-of-pocket costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; 
  
 SECOND, to the payment in full of the Obligations (the amounts so applied to be distributed among the
Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution); and 
  
 THIRD, to the Grantors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct. 
  
 The Collateral Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of
the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the
Collateral Agent or such officer or be answerable in any way for the misapplication thereof. 
  
 SECTION 4.03. Securities Act. In view of the position of the Grantors in relation to the Collateral, or because of other current or future circumstances, a question may arise under the Securities Act of 1933,
as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect being called the “Federal Securities Laws”) with respect to
any disposition of the Collateral permitted hereunder. Each Grantor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to
dispose of all or any part of the Collateral, and might also limit the extent to which or the manner in which any subsequent transferee of any Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations
affecting the Collateral Agent in any attempt to dispose of all or part of the Collateral under applicable Blue Sky or other state securities laws or similar laws analogous in purpose or effect. Each Grantor recognizes that in light of such
restrictions and limitations the Collateral Agent may, with 

  

 12 

 
respect to any sale of the Collateral, limit the purchasers to those who will agree, among other things, to acquire such Collateral for their own account,
for investment, and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that based on any such existing and applicable restrictions and limitations, the Collateral Agent, in its reasonable discretion (a) may
proceed to make such a sale whether or not a registration statement for the purpose of registering such Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) may approach and negotiate with a single potential
purchaser to effect such sale. Each Grantor acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without the existence of any such applicable restrictions
and limitations. In the event of any such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any part of the Collateral at a price that the Collateral Agent, in its sole and absolute discretion, may in good
faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were
approached. The provisions of this Section 4.03 will apply notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the Collateral Agent sells. 
  
 SECTION 4.04. Registration. Each Grantor agrees that, upon the
occurrence and during the continuance of an Event of Default, if for any reason the Collateral Agent desires to sell any of the Collateral at a public sale, it will, at any time and from time to time, upon the written request of the Collateral
Agent, use its best efforts to take or to cause the issuer of such Collateral to take such action and prepare, distribute and/or file such documents, as are required or advisable in the reasonable opinion of counsel for the Collateral Agent to
permit the public sale of such Collateral. Each Grantor further agrees to indemnify, defend and hold harmless the Collateral Agent, each other Secured Party, any underwriter and each of their officers, directors, affiliates and controlling persons
from and against all loss, liability, expenses, costs of counsel (including, without limitation, reasonable fees and expenses to the Collateral Agent of legal counsel), and claims (including the costs of investigation) that they may incur insofar as
such loss, liability, expense or claim arises out of or is based upon any alleged untrue statement of a material fact contained in any prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or arises out of
or is based upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements in any thereof not misleading, except insofar as the same may have been caused by any untrue statement or omission based
upon information furnished in writing to such Grantor or the issuer of such Collateral by the Collateral Agent or any other Secured Party expressly for use therein. Each Grantor further agrees, upon such written request referred to above, to use its
best efforts to qualify, file or register, or cause the issuer of such Collateral to qualify, file or register, any of the Collateral under the Blue Sky or other securities laws of such states as may be requested by the Collateral Agent and keep
effective, or cause to be kept effective, all such qualifications, filings or registrations. Each Grantor will bear all costs and expenses of carrying out its obligations under this Section 4.04. Each Grantor acknowledges that there is no adequate
remedy at law for failure by it to comply with the provisions of this 

  

 13 

 
Section 4.04 and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained in this Section 4.04
may be specifically enforced. 
  
 ARTICLE V 
  
 Indemnity, Subrogation and Subordination 
  
 SECTION 5.01. Indemnity and Subrogation. In addition to all such
rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 5.03), the Borrower agrees that (a) in the event a payment of an obligation shall be made by any Guarantor under this Agreement, the Borrower
shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of the
Grantor shall be sold pursuant to this Agreement or any other Security Document to satisfy in whole or in part an obligation owed to any Secured Party, the Borrower shall indemnify the Grantor in an amount equal to the greater of the book value or
the fair market value of the assets so sold. 
  
 SECTION 5.02.
Contribution and Subrogation. Each Guarantor and Grantor (a “Contributing Party”) agrees (subject to Section 5.03) that, in the event a payment shall be made by any other Guarantor hereunder in respect of any Obligation or
assets of any other Grantor shall be sold pursuant to any Security Document to satisfy any Obligation owed to any Secured Party and such other Guarantor or Grantor (the “Claiming Party”) shall not have been fully indemnified by the
Borrower as provided in Section 5.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as the case may be, in each
case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors and Grantor on the date hereof (or, in the case of
any Guarantor or Grantor becoming a party hereto pursuant to Section 6.14, the date of the supplement hereto executed and delivered by such Guarantor or Grantor). Any Contributing Party making any payment to a Claiming Party pursuant to this Section
5.02 shall be subrogated to the rights of such Claiming Party under Section 5.01 to the extent of such payment. 
  
 SECTION 5.03. Subordination. (a) Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors and Grantor under
Sections 5.01 and 5.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the part of the
Borrower or any Guarantor or Grantor to make the payments required by Sections 5.01 and 5.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor or Grantor
with respect to its obligations hereunder, and each Guarantor and Grantor shall remain liable for the full amount of the obligations of such Guarantor or Grantor hereunder. 
  

 14 

 (b) Each Guarantor and Grantor hereby agrees that all Indebtedness and other monetary obligations owed by
it to any other Guarantor, Grantor or any other Subsidiary shall be fully subordinated to the indefeasible payment in full in cash of the Obligations. 
  
 ARTICLE VI 
  
 Miscellaneous 
  
 SECTION 6.01. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit Agreement. All
communications and notices hereunder to any Subsidiary Party shall be given to it in care of and to the attention of the Borrower as provided in Section 9.01 of the Credit Agreement. 
  
 SECTION 6.02. Waivers; Amendment. (a) No failure or delay by the Collateral Agent, an Issuing Bank or any Lender in
exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Collateral Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are
not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section 6.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter
of Credit shall not be construed as a waiver of any Default, regardless of whether the Collateral Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time. No notice or demand on any Loan Party in any case
shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances. 
  
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to supplements to Schedules contemplated herein and
an agreement or agreements in writing entered into by the Collateral Agent and the Loan Party or Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 9.02
of the Credit Agreement; provided, however, that neither Section 4.02 hereof nor the definitions of “Secured Parties” and “Obligations” shall be amended or modified in a manner adverse to any Secured Party without
the consent of such Secured Party. 
  
 SECTION 6.03. Collateral
Agent’s Fees and Expenses; Indemnification. (a) The parties hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in Section 9.03 of the Credit Agreement. 
  

 15 

 (b) Without limitation of its indemnification obligations under the other Loan Documents, each Grantor
and each Guarantor jointly and severally agrees to indemnify the Collateral Agent and the other Indemnitees (as defined in Section 9.03 of the Credit Agreement) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of, the execution, delivery or
performance of this Agreement or any claim, litigation, investigation or proceeding relating to any of the foregoing agreement or instrument contemplated hereby, or to the Collateral, whether or not any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee. 
  
 (c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Security Documents. The provisions of this Section 6.03 shall remain operative and in full force and
effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf of the Collateral Agent or any other Secured Party. All amounts due under this Section 6.03 shall be payable not later than 10 days after on written demand therefor.

  
 SECTION 6.04. Successors and Assigns. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Guarantor, Grantor or the Collateral
Agent that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns. 
  
 SECTION 6.05. Survival of Agreement. All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and
in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall survive the execution and delivery of
the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any Lender or on its behalf and notwithstanding that the Collateral Agent, the Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or
any fee or any other amount payable under any Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. 
  

 16 

 SECTION 6.06. Counterparts; Effectiveness; Several Agreement. This Agreement may be executed in
counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of
a manually signed counterpart of this Agreement. This Agreement shall become effective as to any Loan Party when a counterpart hereof executed on behalf of such Loan Party shall have been delivered to the Collateral Agent and a counterpart hereof
shall have been executed on behalf of the Collateral Agent, and thereafter shall be binding upon such Loan Party and the Collateral Agent and their respective permitted successors and assigns, and shall inure to the benefit of such Loan Party, the
Collateral Agent and the other Secured Parties and their respective successors and assigns, except that no Loan Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any
such assignment or transfer shall be void) except as expressly contemplated by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate agreement with respect to each Loan Party and may be amended, modified,
supplemented, waived or released with respect to any Loan Party without the approval of any other Loan Party and without affecting the obligations of any other Loan Party hereunder. 
  
 SECTION 6.07. 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. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  
 SECTION 6.08. Right of Set-Off. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by
such Lender or Affiliate to or for the credit or the account of any Subsidiary Party against any of and all the obligations of such Subsidiary Party now or hereafter existing under this agreement owed to such Lender, irrespective of whether or not
such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section 6.08 are in addition to other rights and remedies (including other rights of set-off) which such
Lender may have. 
  
 SECTION 6.09. Governing Law; Jurisdiction;
Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
  
 (b) Each of the Loan Parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court 

  

 17 

 
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 any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto 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 of the parties hereto 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 or any other Loan Document shall affect any right that the Collateral Agent, the
Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Grantor or Guarantor, or its properties in the courts of any jurisdiction. 
  
 (c) Each of the Loan Parties hereby irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection which 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 or any other Loan Document in any
court referred to in paragraph (b) of this Section 6.09. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court. 
  
 (d) Each party to this Agreement irrevocably consents
to service of process in the manner provided for notices in Section 6.01, such service to be effective upon receipt. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any
other manner permitted by law. 
  
 SECTION 6.10. WAIVER OF JURY
TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.10. 

 
 SECTION 6.11. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 
  

 18 

 SECTION 6.12. Security Interest Absolute. All rights of the Collateral Agent hereunder, the grant
of a security interest in the Collateral and all obligations of each Grantor and Guarantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any
agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other
amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument relating to the Credit Agreement, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations, or (d) any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any Grantor or Guarantor in respect of the Obligations or this Agreement other than payment in full of the Obligations. 
  
 SECTION 6.13. Termination or Release. (a) This Agreement, the Guarantees made herein and all security interests granted hereby shall terminate when
all the Loan Document Obligations have been indefeasibly paid in full and the Lenders have no further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to zero and the Issuing Banks have no further obligations to issue
Letters of Credit under the Credit Agreement. 
  
 (b) A Subsidiary
Party shall automatically be released from its obligations hereunder and the security interest in the Collateral of such Subsidiary Party shall be automatically released upon the consummation of any transaction permitted by the Credit Agreement as a
result of which such Subsidiary Party ceases to be a Subsidiary of the Borrower; provided that the Required Lenders shall have consented to such transaction (to the extent required by the Credit Agreement) and the terms of such consent did
not provide otherwise. 
  
 (c) Upon any sale or other transfer by
a Grantor of any Collateral that is permitted under the Credit Agreement, or upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 9.02 of the Credit Agreement, the
security interest in such Collateral shall be automatically released. 
  
 (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c), the Collateral Agent shall execute and deliver to the relevant Grantor, at such Grantor’s expense, all documents that such Grantor shall
reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 6.13 shall be without recourse to or warranty by the Collateral Agent. 
  
 SECTION 6.14. Additional Subsidiaries. Pursuant to Section 5.11 of the
Credit Agreement, each Domestic Subsidiary of the Borrower that was not in existence or not a Subsidiary on the date of the Credit Agreement is required to enter into this 

  

 19 

 
Agreement as a Subsidiary Party upon becoming such a Subsidiary. Upon execution and delivery by the Collateral Agent and a Subsidiary of an instrument in the
form of Exhibit I hereto, such Subsidiary shall become a Subsidiary Party hereunder with the same force and effect as if originally named as a Subsidiary Party herein. The execution and delivery of any such instrument shall not require the consent
of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement. 
  
 SECTION 6.15. Collateral Agent Appointed Attorney-in-Fact. Each
Grantor hereby appoints the Collateral Agent the attorney-in-fact of such Grantor for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Collateral Agent may deem necessary or
advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest, but which shall only be exercised by the Collateral Agent if and when an Event of Default shall have occurred and is continuing. Without
limiting the generality of the foregoing, the Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of substitution either in the Collateral Agent’s name or in the name of
such Grantor (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the Collateral; (c) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all
or any of the Collateral or to enforce any rights in respect of any Collateral; (d) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; and (e) to use, sell, assign, transfer,
pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent were
the absolute owner of the Collateral for all purposes; provided that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature or sufficiency of
any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby.
The Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of the powers granted to them herein, and neither they nor their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence, bad faith or willful misconduct. 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	 BLOCKBUSTER INC.,

		
	by	 	/s/    LARRY J. ZINE
	 	 	 Name:  Larry J. Zine

	 	 	 Title:    Executive Vice President &
        Chief Financial
Officer

	
	2 DAY VIDEO, INC. OF GEORGIA,
	
	ATLANTIC ASSOCIATES, INC.,
	
	BLOCKBUSTER AMPHITHEATER CORPORATION,
	
	BLOCKBUSTER CANADA INC.,
	
	BLOCKBUSTER COMPUTER SYSTEMS CORPORATION,
	
	BLOCKBUSTER DISTRIBUTION, INC.,
	
	BLOCKBUSTER ENTERTAINMENT CORPORATION,
	
	BLOCKBUSTER GLOBAL SERVICES INC.,
	
	BLOCKBUSTER INTERNATIONAL SPAIN INC.,
	
	BLOCKBUSTER INVESTMENTS LLC,
	
	 BLOCKBUSTER PROCUREMENT LP,
 (by its general
partner, Blockbuster
Distribution, Inc.),

	
	BLOCKBUSTER SC VIDEO OPERATING CORPORATION,
	
	 BLOCKBUSTER TEXAS LP,
 (by its general
partner, Blockbuster Inc.),

	
	BLOCKBUSTER VIDEO ITALY, INC.,

  

			
	CHARLOTTE AMPHITHEATER CORPORATION,
	
	D.E.J. PRODUCTIONS INC.,
	
	GAME BRANDS INC.,
	
	MAJOR VIDEO SUPER STORES, INC.,
	
	MONTGOMERY ACQUISITION, INC.,
	
	MOVIE BRANDS INC.,
	
	ON-LINE SUBSCRIPTION SERVICES INC.,
	
	THE T.V. FACTORY, INC.,
	
	TRADING ZONE INC.,
	
	UI VIDEO STORES, INC.,
	
	THE WESTSIDE AMPHITHEATRE CORP.,
	
	 WJB REALTY, L.P.,
 (by its general partner,
Blockbuster Inc.),

	
	 WJB VIDEO LIMITED PARTNERSHIP,
 (by its
general partner, Blockbuster Inc.)

  

							
			
	 	 	by	 	/S/    LARRY J. ZINE
	 	 	 	 	

	 	 	 	 	Name:	 	Larry J. Zine
	 	 	 	 	Title:	 	 Executive Vice President & Chief
 Financial
Officer

  

			
	BLOCKBUSTER LIMITED PARTNER HOLDINGS LLC,

  

							
			
	 	 	by	 	/S/    PHIL MCNUT
	 	 	 	 	

	 	 	 	 	Name:	 	 Phil McNut

	 	 	 	 	Title:	 	 Vice-President of International
 Merchandising

  

					
	JPMORGAN CHASE BANK, as
Administrative Agent
		
	 by
	 	 /s/    THOMAS H.
KOZLARK

	 	 	 Name:
	 	 Thomas H. Kozlark

	 	 	 Title:
	 	 Vice President

  

 Schedule I to 
 the Guarantee and 
 Collateral Agreement 
  
 SUBSIDIARY PARTIES 
  

 Schedule II to 
 the Guarantee and 
 Collateral Agreement 
  
 EQUITY INTERESTS 
  

									
	 Issuer

	 	 Number of
 Certificate

	 	 Registered
 Owner

	  	 Number and
 Class of
 Equity Interest

	  	 Percentage
 of Equity Interests

	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 

  

 Exhibit I to the 
 Guarantee and 
 Collateral Agreement 
  
 SUPPLEMENT NO.          dated as of
                    , to the Guarantee and Collateral Agreement dated as of August 20, 2004, among Blockbuster Inc., a Delaware corporation
(the “Borrower”), each subsidiary of the Borrower listed on Schedule I thereto (each such subsidiary individually a “Subsidiary Guarantor” and collectively, the “Subsidiary
Guarantors”; the Borrower and each Subsidiary Guarantor required to pledge Equity Interests under such agreement being referred to herein as the “Grantors”) and JPMORGAN CHASE BANK, a New York banking corporation
(“JPMCB”), as Collateral Agent (in such capacity, the “Collateral Agent”). 
  
 A. Reference is made to the Credit Agreement dated as of August 20, 2004 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the lenders from time to time party thereto and, JPMCB, as Administrative Agent. 
  
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the
Collateral Agreement referred to therein. 
  
 C. The Grantors and
Subsidiary Guarantors have entered into the Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Banks to issue Letters of Credit. Section 6.14 of Collateral Agreement provides that additional Subsidiaries of the
Borrower may become Subsidiary Parties under the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Subsidiary Party under the Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Banks to issue additional Letters of Credit and as
consideration for Loans previously made and Letters of Credit previously issued. 
  
 Accordingly, the Collateral Agent and the New Subsidiary agree as follows: 
  
 SECTION 1. In accordance with Section 6.14 of the Collateral Agreement, the New Subsidiary by its signature below becomes a Subsidiary Party, a Guarantor
and, if such New Subsidiary at any time owns any Equity Interests in a Significant Subsidiary, a Grantor under the Collateral Agreement with the same force and effect as if originally named therein as a Subsidiary Party, and the New Subsidiary
hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it, if any, as a Subsidiary Party, Grantor and Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a
Grantor, if applicable, and Guarantor thereunder are true and correct on and as of the date hereof. In 

  

 
furtherance of the foregoing, the New Subsidiary, as security for the payment in full of the Obligations (as defined in the Collateral Agreement), does
hereby assign, pledge and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Subsidiary’s right, title and interest
in and to the Collateral (as defined in the Collateral Agreement) of the New Subsidiary. Each reference to a “Guarantor” or “Grantor” (if applicable) in the Collateral Agreement shall be deemed to include the New Subsidiary. The
Collateral Agreement is hereby incorporated herein by reference. 
  
 SECTION 2. The New Subsidiary represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms. 
  
 SECTION
3. This Supplement 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. This Supplement
shall become effective when the Collateral Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page
to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 
  
 SECTION 4. The New Subsidiary hereby represents and warrants that as of the date hereof (a) set forth on Schedule I attached hereto is a true and correct
schedule of all Equity Interests owned or held by the New Subsidiary and (b) set forth under its signature hereto is the true and correct legal name of the New Subsidiary, its jurisdiction of organization, the identifying number, if any, assigned to
it by such jurisdiction, and the location of its chief executive office. 
  
 SECTION 5. Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect. 
  
 SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Collateral Agreement shall not in any way be affected or impaired thereby
(it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  

 2 

 SECTION 8. All communications and notices hereunder shall be in writing and given as provided in Section
6.01 of the Collateral Agreement. 
  
 SECTION 9. The New
Subsidiary agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent. 
  
 IN WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly
executed this Supplement as of the day and year first above written. 
  

					
	[NAME OF NEW SUBSIDIARY],
			
	 	 	by	 	 
	 	 	 	 	 Name:

	 	 	 	 	 Title:

			
	 	 	 	 	 Legal Name:

	 	 	 	 	 Jurisdiction of Organization:

	 	 	 	 	 Identifying Number (if any):

	 	 	 	 	 Location of Chief Executive office:

  

					
	 JPMORGAN CHASE BANK,
 AS COLLATERAL
AGENT

			
	 	 	by	 	 
	 	 	 	 	 Name:

	 	 	 	 	 Title:

  

 3 

 Schedule I 
 to the Supplement No      to the 
 Guarantee and 
 Collateral Agreement 
  
 EQUITY INTERESTS 
  

									
	 Issuer

	 	 Number of
 Certificate

	 	 Registered
 Owner

	  	 Number and
 Class of
 Equity Interests

	  	 Percentage
 of Equity Interests

	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 

  

 Exhibit II to the 
 Guarantee and 
 Collateral Agreement 
  
 PERFECTION CERTIFICATE 
  
 Reference is made to the Credit Agreement dated as of August 20, 2004 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Blockbuster Inc. (the “Borrower”), the lenders from time to time party thereto, and JPMorgan Chase Bank, as Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used but
not defined herein have the meanings assigned in the Credit Agreement or the Collateral Agreement, as applicable. The term “Grantor” refers to each Loan Party. 
  
 The undersigned, the Executive Vice President, Chief Financial Officer and the Secretary of the Borrower, hereby certify to
the Administrative Agent and each other Secured Party as follows: 
  
 1. Names. (a) The exact legal name of each Grantor, as such name appears in its certificate of formation, is as set forth on Exhibit A hereto: 
  
 (b) Set forth on Exhibit A hereto is each other legal name each Grantor has had in the past five years, together with
the date of the relevant change: 
  
 (c) Except as set forth in
Exhibit A hereto, no Grantor has changed its identity or corporate structure in any way within the past five years. Changes in identity or corporate structure would include mergers, consolidations and acquisitions, as well as any change in
the form, nature or jurisdiction of organization. If any such change has occurred, include on Exhibit A hereto the information required by Sections 1 and 2 of this certificate as to each acquire or constituent party to a merger or
consolidation. 
  
 (d) Set forth on Exhibit A hereto is a
list of all other names used by each Grantor or any of its divisions or other business units in connection with the conduct of its business or the ownership of its properties at any time during the past five years: 
  
 (e) Set forth on Exhibit A hereto is the Organizational Identification
Number, if any, issued by the jurisdiction of formation of each Grantor that is a registered organization. 
  
 2. Current Locations. (a) The chief executive office of each Grantor is located at the address set forth opposite its name on Exhibit A
hereto. 
  
 (b) The jurisdiction of formation of each Grantor that
is a registered organization is set forth opposite its name on Exhibit A hereto. 
  
 3. File Search Reports. File search reports have been obtained from each Uniform Commercial Code filing office identified with respect to each Grantor in Section 2 hereof, and such search reports reflect no
liens against any of the Collateral other than those permitted under the Credit Agreement. 
  

 4. UCC Filings. Financing statements in substantially the form of Exhibit B hereto have
been prepared for filing in the proper Uniform Commercial Code filing office in the jurisdiction in which each Grantor required to pledge Collateral under the Loan Documents is located. 
  
 5. Schedule of Filings. Attached hereto as Exhibit C is a schedule setting forth, with respect to the filings
described in Section 4 above, each filing and the filing office in which such filing is to be made. 
  
 6. Stock Ownership and other Equity Interests. Attached hereto on Exhibit A is a true and correct list of all the issued and outstanding
stock, partnership interests, limited liability company membership interests or other equity interest of each Grantor and the record and beneficial owners of such stock, partnership interests, membership interests or other equity interests.

  

 2 

 IN WITNESS WHEREOF, the undersigned have duly executed this certificate on this
[    ] day of [                    ], 2004. 
  

							
	 BLOCKBUSTER INC.,

			
	 	 	by	 	 
	 	 	 	 	 Name:
	 	Larry J. Zine
	 	 	 	 	 Title:
	 	 Executive Vice President;
 Chief Financial
Officer

			
	 	 	by	 	 
	 	 	 	 	 Name:
	 	Marilyn R. Post
	 	 	 	 	 Title:
	 	Secretary

  

 3

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