Document:

exv10w1

 

Exhibit 10.1

DISASTER RECOVERY SITE AGREEMENT

This Agreement (“Agreement”) is entered into this 16th day of March, 2006 (“Effective
Date”) by and between Intersections Inc., a Delaware corporation with its principal place of
business at 14901 Bogle Drive, Chantilly, Virginia 20151 (“Intersections”) and Digital Matrix
Systems, a Texas corporation with its principal place of business at 15301 Spectrum Drive,
2nd Floor, Addison, Texas 75001 (“DMS”).

In consideration of the mutual covenants and conditions hereof, and intending to be legally bound
hereby, Intersections and DMS agree as follows:

	 	1.	 	Intersections agrees to:

	 	a.	 	provide DMS with space, power and cooling (“Hosting Services”) at
Intersections Inc., 601 Quantum Rd NE, Rio Rancho, 87124 (“Hosting Location”)
during the term of this Agreement;
	 
	 	b.	 	provide DMS with assistance for conducting physical reboots of DMS
Equipment upon DMS’s request;
	 
	 	c.	 	provide DMS with a secure location including restricting access to only
authorized personnel;

	 	2.	 	DMS will provide its own equipment, network circuits and connectivity at its sole
expense.
	 
	 	3.	 	DMS agrees to pay Intersections $600 per standard 42U service rack per month for the
Hosting Services. Intersections will provide DMS with a monthly invoice for these fees.
DMS agrees to remit payment to Intersections within thirty (30) days of receiving said
invoice.
	 
	 	4.	 	DMS acknowledges that:

	 	a.	 	Intersections is not in the business of providing Hosting Services and
that these services are being provided “as is”; and
	 
	 	b.	 	the Hosting Location does not have steel reinforced walls, biometric
security, bullet-proof windows, 24 x 7 security personnel, computer safe fire
retardant, and other advanced features that full-service standard hosting
facilities sometimes provide.

	 	5.	 	The Agreement will commence on the Effective Date and continue until either party
provides the other party with thirty days prior written notice of its desire to terminate
this Agreement with or without cause.

This document is considered confidential and proprietary information of Intersections Inc.® and shall not be disclosed without written permission from Intersections Inc.®

 

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	 	6.	 	This agreement is solely for the Hosting Services as defined herein and not intended to
and will not constitute a lease of any real property. DMS acknowledges and agrees that its
has been granted only a limited license to occupy the Hosting Location, that it has not
been granted any real property interest in the Hosting Location and DMS has no rights as a
tenant or otherwise under any real property or landlord/tenant laws, regulations or
ordinances. DMS hereby waives and releases any claims or rights to make a claim that it may
have against the landlord under any lease by Intersections with respect to any equipment of
property of DMS located in the premises demised to Intersections by such landlord.
	 
	 	7.	 	EACH DMS REPRESENTATIVE AND ANY OTHER PERSON VISITING THE HOSTING LOCATION FOR THE
PURPOSES OF ACCESSING THE DMS EQUIPMENT DOES SO AT HIS OR HER OWN RISK. INTERSECTIONS
ASSUMES NO LIABILITY WHATSOEVER FOR ANY HARM TO SUCH PERSON RESULTING FROM ANY CAUSE OTHER
THAN THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF INTERSECTIONS. INTERSECTIONS ASSUMES NO
LIABILITY FOR ANY DAMAGE TO, OR LOSS OF, ANY DMS EQUIPMENT RESULTING FROM ANY CAUSE OTHER
THAN THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF INTERSECTIONS. NOTWITHSTANDING ANYTHING
ELSE HEREIN, THE AGGREGATE LIABILITY OF INTERSECTIONS UNDER THIS AGREEMENT SHALL BE LIMITED
TO THE AMOUNT PAID BY DMS TO INTERSECTIONS FOR THE HOSTING SERVICES DURING THE SIX MONTHS
PRECEDING THE EVENT GIVING RISE TO LIABILITY.
	 
	 	8.	 	IN NO EVENT WILL INTERSECTIONS OR DMS BE LIABLE OR RESPONSIBLE TO THE OTHER PARTY FOR
ANY TYPE OF INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT
LIMITED TO, LOST REVENUE, LOST PROFITS, REPLACEMENT GOODS, LOSS OF TECHNOLOGY, RIGHTS OR
SERVICES, LOSS OF DATA, OR INTERRUPTION OR LOSS OF USE OF SERVICE OR EQUIPMENT, EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING UNDER THEORY OF CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.
	 
	 	9.	 	IN NO EVENT SHALL INTERSECTIONS BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY
INACCURACY, ILLEGALITY, MISINFORMATION OR ANY VIOLATION OF A THIRD PARTY RIGHT OR INTERSET
ASSOCIATED WITH OR DIRECTLY OR INDIRECTLY ARISING OUT OF THE CUSTOMER CONTENT.
	 
	 	10.	 	This Agreement is governed by and must be construed in accordance with the laws of the
Commonwealth of Virginia, exclusive of its choice of law rules. Any lawsuit under this
Agreement may be filed only in the state or federal courts in the Commonwealth of Virginia,
and each party consents to exclusive jurisdiction and venue in those courts.
	 
	 	11.	 	Neither party may assign this Agreement without the express prior written consent of
the other, which consent shall not be unreasonably withheld or delayed. Notwithstanding
the foregoing, either party may assign this Agreement, without the other party’s consent,
to an affiliate, or to an entity that acquires all of the stock, or substantially all of
the assets,

This document is considered confidential and proprietary information of Intersections Inc.® and shall not be disclosed without written permission from Intersections Inc.®

 

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	 	 	 	of the assigning party or its affiliate, or the surviving entity in a merger with the
assigning party or its affiliate.

	 	12.	 	Neither party is liable for delays and failures in performing under this Agreement that
result from any cause beyond the reasonable direct control of the party, with the exception
of nonpayment.
	 
	 	13.	 	All notices required to be given in writing must be sent by a nationally recognized
overnight delivery service with Internet tracking capabilities, or delivered by hand in
each case to the name and address designated in this section below or to such other address
that the receiving party may in advance designate by written notice. Notice is deemed
effective on the day after delivery to the overnight carrier, or, if by hand, the date of
delivery to the party.

	 	 	 	 	 
	 	 	Intersections:	 	DMS:
	 

	 	VP, IT Operations
	 	President
	 

	 	Intersections Inc.
	 	Digital Matrix Systems, Inc.
	 

	 	14901 Bogle Drive, Suite 300
	 	15301 Spectrum Drive
	 

	 	Chantilly, Virginia 20151
	 	2nd Floor
	 

	 	With copy to:
	 	Addison, Texas 75001
	 

	 	Chief Legal Counsel
	 	 

	 	14.	 	If any provision of this Agreement is declared invalid, the other provisions remain in
full force and effect, and this Agreement is deemed to be amended to replace, to the extent
legally possible, the rights and obligations contained in the invalid provision. The
invalidity of any provision is not a failure of consideration.
	 
	 	15.	 	Each schedule and each other exhibit or appendix referenced in this Agreement, is
incorporated into and made part of this Agreement. This Agreement constitutes the entire
understanding of the parties with respect to the subject matter hereof, and supersedes all
prior or contemporaneous agreements, statements and representations, oral or written,
between the parties relating to the subject matter of the Agreement.

IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have each caused its
duly authorized officers or representatives to be affixed hereto its hand as of the Effective Date.

	 	 	 	 	 
	INTERSECTIONS INC.	 	DIGITAL MATRIX SYSTEMS
	 
	 	 
	By:

	 	 	By:	 
	 	 

	 	 	 
	 
	 	 
	Name:

	 	 	Name:	 
	 	 

	 	 	 
	 
	 	 
	Title:

	 	 	Title:	 
	 	 

	 	 	 
	 
	 	 
	Date:

	 	 	Date:
	 	 

	 	 	 

This document is considered confidential and proprietary information of Intersections Inc.® and shall not be disclosed without written permission from Intersections Inc.®

 

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Execution Copy

 

 

GUARANTEE AND COLLATERAL AGREEMENT

made by

BLACKBOARD INC.

and certain Subsidiaries of Blackboard Inc.

in favor of

CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Collateral Agent

dated as of February 28, 2006

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1. DEFINED TERMS	 	 	1	 
	 
	 	 	 	 	 	 
	1.01
	 	Definitions	 	 	1	 
	1.02
	 	Other Definitional Provisions	 	 	10	 
	 
	 	 	 	 	 	 
	SECTION 2. GUARANTEE	 	 	11	 
	 
	 	 	 	 	 	 
	2.01
	 	Guarantee	 	 	11	 
	2.02
	 	Rights of Reimbursement, Contribution and Subrogation	 	 	12	 
	2.03
	 	Amendments, etc. with respect to the Borrower Obligations	 	 	14	 
	2.04
	 	Guarantee Absolute and Unconditional	 	 	14	 
	2.05
	 	Reinstatement	 	 	15	 
	2.06
	 	Payments	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 3. GRANT OF SECURITY INTEREST; CONTINUING LIABILITY UNDER COLLATERAL	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES	 	 	17	 
	 
	 	 	 	 	 	 
	4.01
	 	Representations in Credit Agreement	 	 	17	 
	4.02
	 	Title; No Other Liens	 	 	17	 
	4.03
	 	Perfected First Priority Liens	 	 	17	 
	4.04
	 	Name; Jurisdiction of Organization,
etc.	 	 	18	 
	4.05
	 	Inventory and Equipment 	 	 	18	 
	4.06
	 	Farm Products	 	 	18	 
	4.07
	 	Investment Property	 	 	19	 
	4.08
	 	Receivables	 	 	20	 
	4.09
	 	Intellectual Property 	 	 	20	 
	4.10
	 	Letters of Credit and Letter of Credit Rights	 	 	21	 
	4.11
	 	Commercial Tort Claims	 	 	21	 
	4.12
	 	Contracts	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 5. COVENANTS	 	 	21	 
	 
	 	 	 	 	 	 
	5.01
	 	Covenants in Credit Agreement	 	 	22	
	5.02
	 	Delivery and Control of Instruments, Chattel Paper, Negotiable	 	 	 	 
	 
	 	Documents, Investment Property and Deposit Accounts. 	 	 	22	 
	5.03
	 	Maintenance of Perfected Security Interest; Further Documentation 	 	 	23	 
	5.04
	 	Changes in Locations, Name,
Jurisdiction of Incorporation, etc.	 	 	24	 
	5.05
	 	Notices	 	 	24	 
	5.06
	 	Investment Property	 	 	24	 
	5.07
	 	Intellectual Property	 	 	26	 
	5.08
	 	Commercial Tort Claims	 	 	28	 

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	 	 	 	 	Page	 
	SECTION 6. REMEDIAL PROVISIONS	 	 	28	 
	 
	 	 	 	 	 	 
	6.01
	 	Certain Matters Relating to Receivables  	 	 	28	 
	6.02
	 	Communications with Obligors; Grantors Remain Liable	 	 	29	 
	6.03
	 	Pledged Securities	 	 	29	 
	6.04
	 	Proceeds to be Turned Over To Collateral Agent	 	 	30	 
	6.05
	 	Application of Proceeds	 	 	30	 
	6.06
	 	Code and Other Remedies  	 	 	31	 
	6.07
	 	Deficiency	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 7. THE COLLATERAL AGENT	 	 	33	 
	 
	 	 	 	 	 	 
	7.01
	 	Collateral Agent’s Appointment as Attorney-in-Fact, etc.	 	 	33	 
	7.02
	 	Duty of Collateral Agent	 	 	34	 
	7.03
	 	Filing of Financing Statements	 	 	35	 
	7.04
	 	Authority of Collateral Agent	 	 	35	 
	7.05
	 	Appointment of Co-Collateral Agents	 	 	35	 
	 
	 	 	 	 	 	 
	SECTION 8. MISCELLANEOUS	 	 	36	 
	 
	 	 	 	 	 	 
	8.01
	 	Amendments in Writing	 	 	36	 
	8.02
	 	Notices	 	 	36	 
	8.03
	 	No Waiver by Course of Conduct; Cumulative Remedies	 	 	36	 
	8.04
	 	Enforcement Expenses; Indemnification.	 	 	36	 
	8.05
	 	Successors and Assigns	 	 	37	 
	8.06
	 	Set-Off	 	 	37	 
	8.07
	 	Counterparts	 	 	37	 
	8.08
	 	Severability	 	 	37	 
	8.09
	 	Section Headings	 	 	37	 
	8.10
	 	Integration	 	 	37	 
	8.11
	 	APPLICABLE LAW	 	 	38	 
	8.12
	 	Submission to Jurisdiction; Waivers	 	 	38	 
	8.13
	 	Acknowledgments	 	 	38	 
	8.14
	 	Additional Grantors	 	 	38	 
	8.15
	 	Releases.	 	 	39	 
	8.16
	 	WAIVER OF JURY TRIAL	 	 	39	 

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	 	 	 	 	Page
	Exhibits:
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	Form of Acknowledgment and Consent	 	 
	Exhibit B
	 	Form of Securities Account Control Agreement	 	 
	Exhibit C
	 	Form of Deposit Account Control Agreement	 	 
	Exhibit D
	 	Form of Commodities Account Control Agreement	 	 
	Exhibit E
	 	Form of Trademark Security Agreement	 	 
	Exhibit F
	 	Form of Copyright Security Agreement	 	 
	Exhibit G
	 	Form of Patent Security Agreement	 	 
	 
	Annex:
	 	 	 	 
	 
	 	 	 	 
	Annex 1
	 	Form of Assumption Agreement	 	 
	 
	 	 	 	 
	Schedules:
	 	 	 	 
	 
	 	 	 	 
	Schedule 4.03
	 	Filings and Other Actions Required to Perfect Security Interests	 	 
	Schedule 4.04
	 	Organizational Information	 	 
	Schedule 4.05(a)
	 	Location of Inventory and Equipment	 	 
	Schedule 4.07(a)
	 	Description of Investment Property	 	 
	Schedule 4.07(b)
	 	Exceptions to Issued and Outstanding Pledged Equity Interests	 	 
	Schedule 4.07(c)
	 	Exceptions to Duly and Validly Issued Pledged Equity Interests	 	 
	Schedule 4.07(d)
	 	Exceptions to Article 8 Provisions of  Uncertificated Pledged LLC Interests and	 	 
	 
	 	Pledged Partnership Interests	 	 
	Schedule 4.08(b)
	 	Receivables from Governmental Authorities	 	 
	Schedule 4.09(a)
	 	Intellectual Property	 	 
	Schedule 4.09(e)
	 	Exceptions to Payment of Fees and Taxes to Maintain Registered Intellectual	 	 
	Property
	 	 	 	 
	Schedule 4.10
	 	Grantors as Beneficiaries or Assignees	 	 
	Schedule 4.11
	 	Commercial Tort Claims	 	 
	Schedule 4.12
	 	Non-Assignable Material Contracts	 	 
	Schedule 8.02
	 	Notice Address of Guarantors	 	 

iii

 

     GUARANTEE AND COLLATERAL AGREEMENT dated as of February 28, 2006, made by each of the
signatories hereto (together with any other entity that may become a party hereto as provided
herein, the “Grantors”), in favor of CREDIT SUISSE, CAYMAN ISLANDS BRANCH (“CS”) as
administrative agent (in such capacity and together with its successors, the “Administrative
Agent”) and as collateral agent (in such capacity and together with its successors, the
“Collateral Agent”) for (i) the banks and other financial institutions or entities (the
“Lenders”) from time to time parties to the Credit Agreement dated as of February 28, 2006
(as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Blackboard Inc. a Delaware corporation (the “Borrower”), the Lenders
party thereto, CREDIT SUISSE, as sole bookrunner and sole lead arranger (in such capacity, the
“Arranger”), CREDIT SUISSE, as syndication agent (in such capacity, the “Syndication
Agent”), and CREDIT SUISSE, as documentation agent (in such capacity and together with its
successors, the “Documentation Agent”) and (ii) the other Secured Parties (as hereinafter
defined).

W I T N E S S E T H:

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

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

     WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrower to (i) finance, in part, the Acquisition, (ii) pay fees and expenses
incurred in connection with the Acquisition Transactions and (iii) provide ongoing working capital
and for other general corporate purposes of the Borrower;

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

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

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

SECTION 1. DEFINED TERMS

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

 

 

the following terms are used herein as defined in the New York UCC (and if defined in more
than one Article of the New York UCC, such terms shall have the meanings given in Article 9
thereof): Accounts, Account Debtor, As-Extracted Collateral, Certificated Security, Chattel Paper,
Commercial Tort Claim, Commodity Account, Commodity Contract, Commodity Intermediary, Documents,
Deposit Account, Electronic Chattel Paper, Entitlement Order, Equipment, Farm Products, Financial
Asset, Fixtures, Goods, Instruments, Inventory, Letter of Credit, Letter of Credit Rights, Money,
Payment Intangibles, Securities Account, Securities Intermediary, Security, Security Entitlement,
Supporting Obligations, Tangible Chattel Paper and Uncertificated Security.

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

     “Administrative Agent” shall have the meaning assigned to such term in the preamble.

     “After-Acquired Intellectual Property” shall have the meaning assigned to such term in
Section 5.07(k).

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

     “Arranger” shall have the meaning assigned to such term in the preamble.

     “Borrower” shall have the meaning assigned to such term in the preamble.

     “Borrower Obligations” shall mean the collective reference to the unpaid principal of
and interest on (including interest accruing after the maturity of the Loans and reimbursement
obligations in respect of amounts drawn under Letters of Credit and interest accruing after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to any Grantor, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the
Grantors to the Arranger, to any Agent or to any Lender (or, in case of Specified Hedge Agreements,
any Lender or any Agent or Arranger or any Affiliate of any Lender, Agent or Arranger), whether
direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with the Credit Agreement, any other Loan
Document, the Letters of Credit, any Specified Hedge Agreement or any other document made,
delivered or given in connection herewith or therewith, whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and
disbursements of counsel to the Arranger, to any Agent or to any Lender that are required to be
paid by any Grantor pursuant to the Credit Agreement or any other Loan Document) or otherwise;
provided, that (i) obligations of the Borrower or any other Loan Party under any Specified
Hedge Agreement shall be secured and guaranteed pursuant to the Security Documents only to the
extent that, and for so long as the other obligations are so secured and guaranteed, (ii) any
release of collateral or guarantors effected in the manner permitted by the Credit Agreement or any
other Loan Document shall not require the consent of holders of obligations under Specified Hedge
Agreements and (iii) the amount of secured obligations under any Specified Hedge Agreements shall
not exceed the net amount, including

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any net termination payments, that would be required to be paid to the counterparty to such
Specified Hedge Agreement on the date of termination of such Specified Hedge Agreement.

     “Business Day” shall mean any day other than a Saturday, Sunday or day on which
commercial banks in New York City are authorized or required by law to close.

     “Closing Date” shall mean the date hereof.

     “Collateral” shall have the meaning assigned to such term in Section 3.

     “Collateral Account” shall mean (i) any collateral account established by the
Collateral Agent as provided in Section 6.01 or 6.04 or (ii) any cash collateral account
established as provided in Section 2.23(j) of the Credit Agreement.

     “Collateral Account Funds” shall mean, collectively, the following: all funds
(including all trust monies), investments (including all cash equivalents) credited to, or
purchased with funds from, any Collateral Account and all certificates and instruments from time to
time representing or evidencing such investments; all notes, certificates of deposit, checks and
other instruments from time to time hereafter delivered to or otherwise possessed by the Collateral
Agent for or on behalf of any Grantor in substitution for, or in addition to, any or all of the
Collateral; and all interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of the
items constituting Collateral.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble.

     “Contracts” shall mean all contracts and agreements between any Grantor and any other
person (in each case, whether written or oral, or third party or intercompany) as the same may be
amended, assigned, extended, restated, supplemented, replaced or otherwise modified from time to
time including (i) all rights of any Grantor to receive moneys due and to become due to it
thereunder or in connection therewith, (ii) all rights of any Grantor to receive proceeds of any
insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of any Grantor to
damages arising thereunder and (iv) all rights of any Grantor to terminate and to perform and
compel performance of, such Contracts and to exercise all remedies thereunder.

     “Copyright Licenses” shall mean any agreement, whether written or oral, naming any
Grantor as licensor or licensee (including those listed in Schedule 4.09(a) (as such schedule may
be amended or supplemented from time to time)), granting any right in, to or under any Copyright,
including the grant of rights to manufacture, print, publish, publicly perform, display copy,
create derivative works of, import, export, distribute, exploit, and sell materials derived from
any Copyright.

     “Copyrights” shall mean all copyrights arising under the laws of the United States,
any other country, or union of countries, or any political subdivision of any of the foregoing,
whether registered or unregistered and whether published or unpublished (including those listed in
Schedule 4.09(a) (as such schedule may be amended or supplemented from time to time)), all Mask
Works (as defined in 17 U.S.C. 901 of the U.S. Copyright Act), all protectable designs, all
software, and all works of authorship and other intellectual property rights embodied

3

 

therein and all right to make and exploit derivative works based on, or adopted from, works
covered by such copyrights, and with respect to any and all of the foregoing: (i) all recordings
and tangible embodiments thereof; (ii) all registrations of and applications to register the rights
corresponding thereto throughout the world, (ii) the right to, and to obtain, all extensions and
renewals thereof, (iii) the right to sue for past, present and future infringements of any of the
foregoing, (iv) all proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages, and proceeds of suit, and (v) all other rights of any kind whatsoever accruing
thereunder or pertaining thereto.

     “Credit Agreement” shall have the meaning assigned to such term in the preamble.

     “Documentation Agent” shall have the meaning assigned to such term in the preamble.

     “dollars” or “$” shall mean lawful money of the United States of America.

     “Excluded Assets” shall mean (i) any lease, license, contract, property right or
agreement to which any Grantor is a party or any of its rights or interests thereunder if and only
for so long as the grant of a security interest hereunder shall (A) constitute or result in a
breach, termination or default under any such lease, license, contract, property right or agreement
(other than to the extent that any such term would be rendered ineffective pursuant to Sections
9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other applicable law or
principles of equity) or (B) be prohibited by a Requirement of Law; provided,
however, that such security interest shall attach immediately to any portion of such lease,
license, contract, property rights or agreement that does not result in any of the consequences
specified above and shall also attach to any proceeds of any excluded lease, license, contract,
property rights or agreement; and (ii) any “intent-to-use” Trademark applications to the extent, if
any, that the grant of a security interest therein would be in violation of the Trademark Act or
result in the forfeiture of Grantor’s rights therein; provided that such security interest shall
attach immediately to such Trademark application upon the filing and acceptance of a statement of
use in connection with such Trademark application.

     “Excluded Foreign Subsidiary” shall mean, at any time, any Foreign Subsidiary that is
(or is treated as) for United States federal income tax purposes either (a) a corporation, (b) a
pass-through entity any interest in which is owned directly or indirectly by another Foreign
Subsidiary that is (or is treated as) a corporation or (c) a pass-through entity that owns directly
or indirectly an interest in another Foreign Subsidiary that is (or is treated as) a corporation.

     “Excluded Foreign Subsidiary Voting Stock” shall mean the voting Equity Interests in
any Excluded Foreign Subsidiary.

     “General Intangibles” shall mean all “general intangibles” as such term is defined in
Section 9-102(a)(42) of the New York UCC and, in any event without limiting the foregoing,
including with respect to any Grantor, all rights of such Grantor to receive any tax refunds, all
Hedging Agreements and all contracts, agreements, instruments and indentures and all licenses,
permits, concessions, franchises and authorizations issued by Governmental Authorities in any

4

 

form, and portions thereof, to which such Grantor is a party or under which such Grantor has
any right, title or interest or to which such Grantor or any property of such Grantor is subject,
as the same may from time to time be amended, supplemented, replaced or otherwise modified,
including (i) all rights of such Grantor to receive moneys due and to become due to it thereunder
or in connection therewith, (ii) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages
arising thereunder and (iv) all rights of such Grantor to terminate and to perform and compel
performance and to exercise all remedies thereunder.

     “Grantors” shall have the meaning assigned to such term in the preamble.

     “Guarantor Obligations” shall mean with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement (including
Section 2) or any other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including all fees and disbursements of counsel to any Secured Party that are required
to be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document).

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

     “Insurance” shall mean (i) all insurance policies covering any or all of the
Collateral (regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any key
man life insurance policies.

     “Intellectual Property” shall mean the collective reference to all rights, priorities
and privileges relating to any intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, all (i) Copyrights, (ii) Copyright Licenses,
(iii) Patents, (iv) Patent Licenses, (v) Trademarks, (vi) Trademark Licenses, (vii) Trade Secrets,
(viii) Trade Secret Licenses, together with URLs, domain names, websites, software, and databases,
and all rights to sue at law or in equity for any past, present, and future infringement or other
impairment thereof, including the right to receive all proceeds and damages therefrom.

     “Intellectual Property Collateral” shall mean that portion of the Collateral that
constitutes Intellectual Property.

     “Intercompany Note” shall mean any promissory note evidencing loans made by any
Grantor to the Borrower or any of the Subsidiaries, including the subordinated intercompany note
entered into in connection with the Affiliate Subordination Agreement.

     “Investment Property” shall mean the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any
Excluded Foreign Subsidiary Voting Stock excluded from the definition of “Pledged LLC Interests,”
“Pledged Partnership Interests” and “Pledged Stock”) including all Certificated Securities and
Uncertificated Securities, all Security Entitlements, all Securities Accounts, all Commodity
Contracts and all Commodity Accounts, (ii) security entitlements, in the case of any United States
Treasury book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the

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case of any United States federal agency book-entry securities, as defined in the
corresponding United States federal regulations governing such book-entry securities, and (iii)
whether or not otherwise constituting “investment property,” all Pledged Notes, all Pledged Equity
Interests, all Pledged Security Entitlements and all Pledged Commodity Contracts.

     “Issuers” shall mean the collective reference to each issuer of a Pledged Security.

     “Lenders” shall have the meaning assigned to such term in the preamble.

     “Material Contract” shall mean (i) each contract pursuant to which any Grantor
licenses Material Intellectual Property and (ii) any agreement, contract or license or other
arrangement (other than an agreement, contract or arrangement representing indebtedness for
borrowed money) to which any Grantor is a party, in each case that is either material to the
Grantors and their subsidiaries, taken as a whole, or for which breach, nonperformance,
cancellation or failure to renew could reasonably be expected to have a Material Adverse Effect.

     “Material Intellectual Property” shall have the meaning assigned to such term in
Section 4.09(c).

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

     “Non-Assignable Contract” shall mean any Contract that either by its terms or by any
Requirement of Law or otherwise purports to restrict or prevent the assignment thereof or granting
of a security interest therein, (irrespective of whether such prohibition or restriction is
enforceable under Sections 9-407 through 409 of the New York UCC).

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

     “Patent License” shall mean all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use, import, export, distribute, sell or
offer to sell any invention or design covered in whole or in part by a Patent, including any of the
foregoing listed in Schedule 4.09(a) (as such schedule may be amended or supplemented from time to
time).

     “Patents” shall mean (i) all letters patent of the United States, any other country,
union of countries or any political subdivision of any of the foregoing, all reissues and
extensions thereof, including any of the foregoing listed in Schedule 4.09(a) (as such schedule may
be amended or supplemented from time to time), (ii) all applications for letters patent of the
United States or any other country or union of countries or any political subdivision of any of the
foregoing and all divisions, continuations, continuations-in-part, renewals, and reexaminations
thereof, (iii) all inventions and improvements described therein, including any of the foregoing
listed in Schedule 4.09(a) (as such schedule may be amended or supplemented from time to time),
(iv) all rights to, and to obtain, any reissues or extensions of the foregoing, (v) all Proceeds of
the foregoing, including, licenses, royalties, income, payments, claims, damages, and proceeds of
suit, and (vi) all other rights of any kind whatsoever accruing thereunder or pertaining thereto.

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     “person” shall mean any natural person, institution, sole proprietorship,
unincorporated organization, public benefit corporation, corporation, trust, business trust, joint
venture, joint stock company, association, company, limited liability company, partnership,
Governmental Authority or other entity.

     “Pledged Alternative Equity Interests” shall mean all interests of any Grantor now
owned or hereafter acquired directly in any business entity representing participation or other
interests in any equity or profits thereof and the certificates, if any, representing such
interests and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such interests and any other warrant,
right or option to acquire any of the foregoing; provided, however, that Pledged
Alternative Equity Interests shall not include any Pledged Stock, Pledged Partnership Interests,
Pledged LLC Interests or Pledged Trust Interests.

     “Pledged Collateral” shall mean the collective reference to the Pledged Commodity
Contracts, the Pledged Securities and the Pledged Security Entitlements.

     “Pledged Commodity Contracts” shall mean all commodity contracts listed on in Part I
of Schedule 4.07(a) (as such schedule may be amended from time to time) and all other commodity
contracts to which any Grantor is party from time to time.

     “Pledged Debt Securities” shall mean all debt securities now owned or hereafter
acquired by any Grantor, including the debt securities listed in Part II of Schedule 4.07(a), (as
such schedule may be amended or supplemented from time to time), together with any other
certificates, options, rights or security entitlements of any nature whatsoever in respect of the
debt securities of any person that may be issued or granted to, or held by, any Grantor while this
Agreement is in effect.

     “Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests,
Pledged Partnership Interests, Pledged Trust Interests and Pledged Alternative Equity Interests.

     “Pledged LLC Interests” shall mean all interests of any Grantor now owned or hereafter
acquired directly in any limited liability company, including all limited liability company
interests listed in Part I of Schedule 4.07(a) hereto under the heading “Pledged LLC Interests” (as
such schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such limited liability company interests and any interest of such Grantor on the books
and records of such limited liability company and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such limited
liability company interests and any other warrant, right or option to acquire any of the foregoing;
provided, however, that in no event shall more than 65% of the total outstanding Excluded Foreign
Subsidiary Voting Stock of any Excluded Foreign Subsidiary be required to be pledged hereunder.

     “Pledged Notes” shall mean all promissory notes now owned or hereafter acquired by any
Grantor, including those listed in Part II of Schedule 4.07(a) (as such schedule

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may be amended or supplemented from time to time) and all Intercompany Notes at any time
issued to or held by any Grantor.

     “Pledged Partnership Interests” shall mean all interests of any Grantor now owned or
hereafter acquired directly in any general partnership, limited partnership, limited liability
partnership or other partnership, including all partnership interests listed in Part I of Schedule
4.07(a) hereto under the heading “Pledged Partnership Interests” (as such schedule may be amended
or supplemented from time to time) and the certificates, if any, representing such partnership
interests and any interest of such Grantor on the books and records of such partnership and all
dividends, distributions, cash, warrants, rights, options, instruments, securities and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such partnership interests and any other warrant, right or option
to acquire any of the foregoing; provided, however, that in no event shall more than 65% of the
total outstanding Excluded Foreign Subsidiary Voting Stock of any Excluded Foreign Subsidiary be
required to be pledged hereunder.

     “Pledged Securities” shall mean the collective reference to the Pledged Debt
Securities, the Pledged Notes and the Pledged Equity Interests.

     “Pledged Security Entitlements” shall mean all security entitlements with respect to
the financial assets listed on Part III of Schedule 4.07(a) (as such schedule may be amended from
time to time) and all other security entitlements of any Grantor.

     “Pledged Stock” shall mean all shares of capital stock now owned or hereafter acquired
directly by any Grantor, including all shares of capital stock listed in Part I of Schedule 4.07(a)
hereto under the heading “Pledged Stock” (as such schedule may be amended or supplemented from time
to time), and the certificates, if any, representing such shares and any interest of such Grantor
in the entries on the books of the issuer of such shares and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such
shares and any other warrant, right or option to acquire any of the foregoing; provided,
however, that in no event shall more than 65% of the total outstanding Excluded Foreign
Subsidiary Voting Stock of any Excluded Foreign Subsidiary be required to be pledged hereunder.

     “Pledged Trust Interests” shall mean all interests of any Grantor now owned or
hereafter acquired directly in a Delaware business trust or other trust, including all trust
interests listed in Part I of Schedule 4.07(a) hereto under the heading “Pledged Trust Interests”
(as such schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such trust interests and any interest of such Grantor on the books and records of such
trust or on the books and records of any securities intermediary pertaining to such interest and
all dividends, distributions, cash, warrants, rights, options, instruments, securities and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such trust interests and any other warrant, right or option to
acquire any of the foregoing.

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     “Proceeds” shall mean all “proceeds” as such term is defined in Section 9-102(a)(64)
of the New York UCC and, in any event, shall include all dividends or other income from the
Investment Property, collections thereon or distributions or payments with respect thereto.

     “Qualified Counterparty” shall mean, with respect to any Specified Hedge Agreement,
any counterparty thereto that, at the time such Specified Hedge Agreement was entered into, was a
Lender, an Agent, an Arranger or an Affiliate of a Lender, an Agent or an Arranger.

     “Receivable” shall mean all Accounts and any other right to payment for goods or other
property sold, leased, licensed or otherwise disposed of or for services rendered, whether or not
such right is evidenced by an Instrument or Chattel Paper or classified as a Payment Intangible and
whether or not it has been earned by performance. References herein to Receivables shall include
any Supporting Obligation or collateral securing such Receivable.

     “Registered Intellectual Property” shall have the meaning assigned to such term in
Section 4.09(a).

     “Secured Parties” shall mean, collectively, the Arranger, the Administrative Agent,
the Collateral Agent, the Syndication Agent, the Documentation Agent, the Lenders and, with respect
to any Specified Hedge Agreement, any Qualified Counterparty that has agreed to be bound by the
provisions of Article VIII of the Credit Agreement as if it were a Lender party thereto;
provided that no Qualified Counterparty shall have any rights in connection with the
management or release of any Collateral or the obligations of any Guarantor under this Agreement.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Specified Hedge Agreement” shall mean any Hedging Agreement (a) entered into by (i)
the Borrower or any of the Subsidiaries and (ii) any Lender, Agent or Arranger or any Affiliate of
any Lender, Agent or Arranger, or any person that was a Lender, Agent or Arranger or Affiliate of
any Lender, Agent or Arranger when such Hedging Agreement was entered into as counterparty and (b)
which has been designated by such Lender, Agent or Arranger and the Borrower, by notice to the
Collateral Agent not later than 90 days after the execution and delivery thereof by, the Borrower
or such Subsidiary, as a Specified Hedge Agreement; provided that the designation of any
Hedging Agreement as a Specified Hedge Agreement shall not create in favor of any Lender, Agent or
Arranger or any Affiliate of any Lender, Agent or Arranger that is a party thereto any rights in
connection with the management or release of any Collateral or of the obligations of any Guarantor
under this Agreement.

     “Subsidiary” shall mean any subsidiary of the Borrower.

     “Syndication Agent” shall have the meaning assigned to such term in the preamble.

     “Trademark License” shall mean any agreement, whether written or oral, providing for
the grant by or to any Grantor of any right in, to or under any Trademark, including

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any of the foregoing referred to in Schedule 4.09(a) (as such schedule may be amended or
supplemented from time to time).

     “Trademarks” shall mean (i) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade dress, trade styles, service marks, logos,
designs, or other source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and applications to register any of
the foregoing, whether in the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country, union of countries, or any
political subdivision of any of the foregoing, or otherwise, all common-law rights related thereto,
including any of the foregoing listed in Schedule 4.09(a) (as such schedule may be amended or
supplemented from time to time), (ii) the right to, and to obtain, all renewals thereof, (iii)
other source or business identifiers, designs and general intangibles of a like nature, (iv) the
right to sue for past, present, and future infringements or dilution of any of the foregoing or for
any injury to goodwill, and all proceeds of the foregoing, including royalties, income, payments,
claims, damages, and Proceeds of suit, and (v) all other rights of any kind whatsoever accruing
thereunder or pertaining thereto.

     “Trade Secret License” shall mean any agreement, whether written or oral, providing
for the grant by or to any Grantor of any right in, to or under any Trade Secret, including any of
the foregoing listed in Schedule 4.09(a) (as such schedule may be amended or supplemented from time
to time).

     “Trade Secrets” shall mean all trade secrets and all other confidential or proprietary
information and know-how, whether or not reduced to a writing or other tangible form, including all
documents and things embodying, incorporating or describing such Trade Secret, the right to sue
for past, present and future infringements of any the foregoing, and all Proceeds of the foregoing,
including, royalties, income, payments, claims, damages and proceeds of suit.

     1.02 Other Definitional Provisions.

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

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

     (c) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to the property or assets such Grantor has granted as
Collateral or the relevant part thereof.

     (d) The expressions “payment in full,” “paid in full” and any other similar terms or phrases
when used herein or in any other document with respect to the Borrower Obligations or the Guarantor
Obligations shall mean the unconditional, final and irrevocable payment in full, in immediately
available funds, of all of the Borrower Obligations or the

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Guarantor Obligations, as the case may be, in each case, unless otherwise specified, other
than indemnification and other contingent obligations not then due and payable.

     (e) The words “include,” “includes” and “including,” and words of similar import, shall not be
limiting and shall be deemed to be followed by the phrase “without limitation.”

     (f) All references to the Lenders herein shall, where appropriate, include any Lender, the
Administrative Agent, the Collateral Agent, any Arranger, any Syndication Agent or the
Documentation Agent or, in the case of any Lender, Agent or Arranger, any Affiliate thereof that is
a party to a Specified Hedge Agreement.

SECTION 2. GUARANTEE

     2.01 Guarantee.

     (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Collateral Agent, for the ratable benefit of the Secured Parties and their
respective successors, indorsees, transferees and assigns, the prompt and complete payment and
performance by the Borrower when due (whether at the stated maturity, by acceleration or otherwise)
of the Borrower Obligations.

     (b) If and to the extent required in order for the Obligations of any Guarantor to be
enforceable under applicable federal, state and other laws relating to the insolvency of debtors,
the maximum liability of such Guarantor hereunder shall be limited to the greatest amount which can
lawfully be guaranteed by such Guarantor under such laws, after giving effect to any rights of
contribution, reimbursement and subrogation arising under Section 2.02. Each Guarantor
acknowledges and agrees that, to the extent not prohibited by applicable law, (i) such Guarantor
(as opposed to its creditors, representatives of creditors or bankruptcy trustee, including such
Guarantor in its capacity as debtor in possession exercising any powers of a bankruptcy trustee)
has no personal right under such laws to reduce, or request any judicial relief that has the effect
of reducing, the amount of its liability under this Agreement, (ii) such Guarantor (as opposed to
its creditors, representatives of creditors or bankruptcy trustee, including such Guarantor in its
capacity as debtor in possession exercising any powers of a bankruptcy trustee) has no personal
right to enforce the limitation set forth in this Section 2.01(b) or to reduce, or request judicial
relief reducing, the amount of its liability under this Agreement, and (iii) the limitation set
forth in this Section 2.01(b) may be enforced only to the extent required under such laws in order
for the obligations of such Guarantor under this Agreement to be enforceable under such laws and
only by or for the benefit of a creditor, representative of creditors or bankruptcy trustee of such
Guarantor or other person entitled, under such laws, to enforce the provisions thereof.

     (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
be incurred or permitted in an amount exceeding the maximum liability of such Guarantor under
Section 2.01(b) without impairing the guarantee contained in this Section 2 or affecting the rights
and remedies of any Secured Party hereunder.

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     (d) The guarantee contained in this Section 2 shall remain in full force and effect until
payment in full of the Obligations, notwithstanding that from time to time during the term of the
Credit Agreement the Borrower may be free from any Borrower Obligations.

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

     2.02 Rights of Reimbursement, Contribution and Subrogation. In case any payment is made on
account of the Obligations by any Grantor or is received or collected on account of the Obligations
from any Grantor or its property:

     (a) If such payment is made by the Borrower or from its property, then, if and to the extent
such payment is made on account of Obligations arising from or relating to a Loan or other
extension of credit made to the Borrower or a letter of credit issued for the account of the
Borrower, the Borrower shall not be entitled (i) to demand or enforce reimbursement or contribution
in respect of such payment from any other Grantor or (ii) to be subrogated to any claim, interest,
right or remedy of any Secured Party against any other person, including any other Grantor or its
property.

     (b) If such payment is made by a Guarantor or from its property, such Guarantor shall be
entitled, subject to and upon payment in full of the Obligations, (i) to demand and enforce
reimbursement for the full amount of such payment from the Borrower and (ii) to demand and enforce
contribution in respect of such payment from each other Guarantor that has not paid its
proportionate share of such payment, as necessary to ensure that (after giving effect to any
enforcement of reimbursement rights provided hereby) each Guarantor pays its proportionate share of
the unreimbursed portion of such payment. For this purpose, the proportionate share of each
Guarantor as to any unreimbursed payment shall be determined based on an equitable apportionment of
such unreimbursed payment among all Guarantors based on the relative value of their assets and any
other equitable considerations deemed appropriate by a court of competent jurisdiction.

     (c) If and whenever (after payment in full of the Obligations) any right of reimbursement or
contribution becomes enforceable by any Grantor against any other Grantor under Sections 2.02(a)
and 2.02(b), such Grantor shall be entitled, subject to and upon payment in full of the
Obligations, to be subrogated (equally and ratably with all other Grantors entitled to
reimbursement or contribution from any other Grantor as set forth in this Section 2.02) to any

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security interest that may then be held by the Collateral Agent upon any Collateral granted to
it in this Agreement. Such right of subrogation shall be enforceable solely against the Grantors,
and not against the Secured Parties, and neither the Collateral Agent nor any other Secured Party
shall have any duty whatsoever to warrant, ensure or protect any such right of subrogation or to
obtain, perfect, maintain, hold, enforce or retain any Collateral for any purpose related to any
such right of subrogation. If subrogation is demanded by any Grantor, then (after payment in full
of the Obligations) the Collateral Agent shall deliver to the Grantors making such demand, or to a
representative of such Grantors or of the Grantors generally, an instrument satisfactory to the
Collateral Agent transferring, on a quitclaim basis without any recourse, representation, warranty
or obligation whatsoever, whatever security interest the Collateral Agent then may hold in whatever
Collateral may then exist that was not previously released or disposed of by the Collateral Agent.

     (d) All rights and claims arising under this Section 2.02 or based upon or relating to any
other right of reimbursement, indemnification, contribution or subrogation that may at any time
arise or exist in favor of any Grantor as to any payment on account of the Obligations made by it
or received or collected from its property shall be fully subordinated in all respects to the prior
payment in full of all of the Obligations. Until payment in full of the Obligations, no Grantor
shall demand or receive any collateral security, payment or distribution whatsoever (whether in
cash, property or securities or otherwise) on account of any such right or claim. If any such
payment or distribution is made or becomes available to any Grantor in any bankruptcy case or
receivership, insolvency or liquidation proceeding, such payment or distribution shall be delivered
by the person making such payment or distribution directly to the Collateral Agent, for application
to the payment of the Obligations. If any such payment or distribution is received by any Grantor,
it shall be held by such Grantor in trust, as trustee of an express trust for the benefit of the
Secured Parties, and shall forthwith be transferred and delivered by such Grantor to the Collateral
Agent, in the exact form received and, if necessary, duly endorsed.

     (e) The obligations of the Grantors under the Loan Documents, including their liability for
the Obligations and the enforceability of the security interests granted thereby, are not
contingent upon the validity, legality, enforceability, collectibility or sufficiency of any right
of reimbursement, contribution or subrogation arising under this Section 2.02. The invalidity,
insufficiency, unenforceability or uncollectibility of any such right shall not in any respect
diminish, affect or impair any such obligation or any other claim, interest, right or remedy at any
time held by any Secured Party against any Guarantor or its property. The Secured Parties make no
representations or warranties in respect of any such right and shall have no duty to assure,
protect, enforce or ensure any such right or otherwise relating to any such right.

     (f) Each Grantor reserves any and all other rights of reimbursement, contribution or
subrogation at any time available to it as against any other Grantor, but (i) the exercise and
enforcement of such rights shall be subject to Section 2.02(d) and (ii) neither the Collateral
Agent nor any other Secured Party shall ever have any duty or liability whatsoever in respect of
any such right, except as provided in Section 2.02(c).

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     2.03 Amendments, etc. with respect to the Borrower Obligations. Each Guarantor shall remain
obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor
and without notice to or further assent by any Guarantor, any demand for payment of any of the
Borrower Obligations made by any Secured Party may be rescinded by such Secured Party and any of
the Borrower Obligations continued, and the Borrower Obligations, or the liability of any other
person upon or for any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, increased,
extended, amended, modified, accelerated, compromised, waived, surrendered or released by any
Secured Party, and the Credit Agreement and the other Loan Documents and any other documents
executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the parties thereto may deem advisable from time to time, and
any collateral security, guarantee or right of offset at any time held by any Secured Party for the
payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or released. No
Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Borrower Obligations or for the guarantee contained in this Section
2 or any property subject thereto.

     2.04 Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the
creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or proof
of reliance by any Secured Party upon the guarantee contained in this Section 2 or acceptance of
the guarantee contained in this Section 2; the Borrower Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the
Borrower and any of the Guarantors, on the one hand, and the Secured Parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. Each Guarantor waives diligence, presentment, protest,
demand for payment and notice of default or nonpayment to or upon the Borrower or any of the
Guarantors with respect to the Borrower Obligations. Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a continuing, absolute and
unconditional guarantee of payment and performance without regard to (a) the validity or
enforceability of the Credit Agreement or any other Loan Document, any of the Borrower Obligations
or any other collateral security therefor or guarantee or right of offset with respect thereto at
any time or from time to time held by any Secured Party, (b) any defense, set-off or counterclaim
(other than a defense of payment or performance hereunder) which may at any time be available to or
be asserted by the Borrower or any other person against any Secured Party, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor)
which constitutes, or might be construed to constitute, an equitable or legal discharge of the
Borrower for the Borrower Obligations, or of such Guarantor under the guarantee contained in this
Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise
pursuing its rights and remedies hereunder against any Guarantor, any Secured Party may, but shall
be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as
it may have against the Borrower, any other Guarantor or any other person or against any collateral
security or guarantee for the Borrower Obligations or any right of offset with respect thereto, and
any failure by any Secured Party to make any such demand, to pursue such other rights or remedies
or to collect any payments from the Borrower, any other Guarantor or any other person

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or to realize upon any such collateral security or guarantee or to exercise any such right of
offset, or any release of the Borrower, any other Guarantor or any other person or any such
collateral security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of any Secured Party against any Guarantor. For
the purposes hereof “demand” shall include the commencement and continuance of any legal
proceedings.

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

     2.06 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the
Collateral Agent without set-off or counterclaim in Dollars in immediately available funds at the
office of the Collateral Agent as specified in the Credit Agreement.

SECTION 3. GRANT OF SECURITY INTEREST; CONTINUING LIABILITY UNDER COLLATERAL

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

     (i) all Accounts;

     (ii) all As-Extracted Collateral;

     (iii) all Chattel Paper;

     (iv) all Collateral Accounts and all Collateral Account Funds;

     (v) all Commercial Tort Claims from time to time as specifically described on Schedule
4.11;

     (vi) all Contracts;

     (vii) all Deposit Accounts;

     (viii) all Documents;

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     (ix) all Equipment;

     (x) all Fixtures

     (xi) all General Intangibles;

     (xii) all Goods

     (xiii) all Instruments;

     (xiv) all Insurance;

     (xv) all Intellectual Property;

     (xvi) all Inventory;

     (xvii) all Investment Property;

     (xviii) all Letter of Credit Rights;

     (xix) all Money;

     (xx) all Securities Accounts;

     (xxi) all books, records, ledger cards, files, correspondence, customer lists,
blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and other electronic storage media and related data processing software and similar
items that at any time pertain to or evidence or contain information relating to any of the
Collateral or are otherwise necessary or helpful in the collection thereof or realization
thereupon; and

     (xxii) to the extent not otherwise included, all other property, whether tangible or
intangible, of the Grantor and all Proceeds, products, accessions, rents and profits of any
and all of the foregoing and all collateral security, Supporting Obligations and guarantees
given by any person with respect to any of the foregoing;

     provided that, notwithstanding any other provision set forth in this Section 3, this
Agreement shall not, at any time, constitute a grant of a security interest in any property that
is, at such time, an Excluded Asset.

     (b) Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for
all obligations under and in respect of the Collateral and nothing contained herein is intended or
shall be a delegation of duties to the Collateral Agent or any other Secured Party, (ii) each
Grantor shall remain liable under and each of the agreements included in the Collateral, including
any Receivables, any Contracts and any agreements relating to Pledged Partnership Interests or
Pledged LLC Interests, to perform all of the obligations undertaken by it thereunder all in
accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent
nor any other Secured Party shall have any obligation or liability under any

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of such agreements by reason of or arising out of this Agreement or any other document related
hereto nor shall the Collateral Agent nor any other Secured Party have any obligation to make any
inquiry as to the nature or sufficiency of any payment received by it or have any obligation to
take any action to collect or enforce any rights under any agreement included in the Collateral,
including any agreements relating to any Receivables, any Contracts or any agreements relating to
Pledged Partnership Interests or Pledged LLC Interests and (iii) the exercise by the Collateral
Agent of any of its rights hereunder shall not release any Grantor from any of its duties or
obligations under the contracts and agreements included in the Collateral, including any agreements
relating to any Receivables, any Contracts and any agreements relating to Pledged Partnership
Interests or Pledged LLC Interests.

SECTION 4. REPRESENTATIONS AND WARRANTIES

     To induce the Arranger, the Administrative Agent, the Collateral Agent, the Syndication
Agents, the Documentation Agent and the Lenders to enter into the Credit Agreement and to induce
the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor
hereby represents and warrants to the Secured Parties that:

     4.01 Representations in Credit Agreement. In the case of each Guarantor, the representations
and warranties set forth in Article III of the Credit Agreement as they relate to such Guarantor or
to the Loan Documents to which such Guarantor is a party, each of which is hereby incorporated
herein by reference, are true and correct, in all material respects, except for representations and
warranties expressly stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct in all material respects as of such
earlier date, and the Secured Parties shall be entitled to rely on each of them as if they were
fully set forth herein, provided that each reference in each such representation and
warranty to the Borrower’s knowledge shall, for the purposes of this Section 4.0l, be deemed to be
a reference to such Guarantor’s knowledge.

     4.02 Title; No Other Liens. Such Grantor owns each item of the Collateral free and clear of
any and all Liens or claims, including Liens arising as a result of such Grantor becoming bound (as
a result of merger or otherwise) as grantor under a security agreement entered into by another
person, except for Liens expressly permitted by Section 6.02 of the Credit Agreement (the
“Permitted Liens”). No financing statement, mortgage or other public notice with respect
to all or any part of the Collateral is on file or of record in any public office, except such as
have been filed in favor of the Collateral Agent, for the ratable benefit of the Secured Parties,
pursuant to this Agreement or as are expressly permitted by the Credit Agreement (including those
relating to Permitted Liens).

     4.03 Perfected First Priority Liens. The security interests granted pursuant to this
Agreement (a) upon completion of the filings and other actions specified on Schedule 4.03 (all of
which, in the case of all filings and other documents referred to on said Schedule, have been
delivered to the Collateral Agent in duly completed and duly executed form, as applicable, and may
be filed by the Collateral Agent at any time) and payment of all filing fees, will constitute valid
fully perfected security interests in all of the Collateral in favor of the Collateral Agent, for
the ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations,
enforceable in accordance with the terms hereof (except that no representation and

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warranty is made with respect to the perfection of security interests under the laws of any
foreign jurisdiction) and (b) are prior to all other Liens on the Collateral, except for Permitted
Liens. Without limiting the foregoing, each Grantor has taken all actions necessary or desirable,
including those specified in Section 5.02 to (i) establish the Collateral Agent’s “control” (within
the meanings of Sections 8-106 and 9-106 of the New York UCC) over any portion of the Investment
Property constituting Certificated Securities or Uncertificated Securities and, to the extent
requested by the Collateral Agent, Securities Accounts, Securities Entitlements or Commodity
Accounts (each as defined in the New York UCC), (ii) to the extent requested by the Collateral
Agent, establish the Collateral Agent’s “control” (within the meaning of Section 9-104 of the New
York UCC) over all Deposit Accounts, (iii) establish the Collateral Agent’s “control” (within the
meaning of Section 9-107 of the New York UCC) over all Letter of Credit Rights, (iv) establish the
Collateral Agent’s control (within the meaning of Section 9-105 of the New York UCC) over all
Electronic Chattel Paper and (v) establish the Collateral Agent’s “control” (within the meaning of
Section 16 of the Uniform Electronic Transaction Act as in effect in the applicable jurisdiction
“UETA”) over all “transferable records” (as defined in UETA) (it being understood that no control
agreements for Securities Accounts, Securities Entitlements, Commodity Accounts or Deposit Accounts
are being obtained on the Closing Date).

     4.04 Name; Jurisdiction of Organization, etc. On the date hereof, such Grantor’s exact legal
name (as indicated on the public record of such Grantor’s jurisdiction of formation or
organization), jurisdiction of organization, organizational identification number, if any, and the
location of such Grantor’s chief executive office or sole place of business are specified on
Schedule 4.04. Each Grantor is organized solely under the law of the jurisdiction so specified and
has not filed any certificates of domestication, transfer or continuance in any other jurisdiction.
Except as specified on Schedule 4.04, no such Grantor has changed its name, jurisdiction of
organization, chief executive office or sole place of business or its corporate structure in any
way (e.g., by merger, consolidation, change in corporate form or otherwise) within the past five
years and has not within the last five years become bound (whether as a result of merger or
otherwise) as a grantor under a security agreement entered into by another person, which has not
heretofore been terminated.

     4.05 Inventory and Equipment.

     (a) On the date hereof, the Inventory and the Equipment (other than mobile goods) that is
included in the Collateral are kept at the locations listed on Schedule 4.05(a), except for
Inventory which is in transit (i) from a supplier to a Grantor, (ii) between the locations set
forth on Schedule 4.05(a), or (iii) to customers of a Grantor.

     (b) None of the Inventory or Equipment that is included in the Collateral is in the possession
of an issuer of a negotiable document (as defined in Section 7-104 of the New York UCC, a
“Negotiable Document”) therefor or is otherwise in the possession of any bailee or
warehouseman.

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

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     4.07 Investment Property

     (a) Part I of Schedule 4.07(a) hereto (as such schedule may be amended or supplemented from
time to time) sets forth under the headings “Pledged Stock,” “Pledged LLC Interests,” “Pledged
Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged Stock,
Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any
Grantor and such Pledged Equity Interests constitute the percentage of issued and outstanding
shares of stock, percentage of membership interests, percentage of partnership interests or
percentage of beneficial interest of the respective issuers thereof indicated on such schedule.
Part II of Schedule 4.07(a) (as such schedule may be amended or supplemented from time to time)
sets forth under the heading “Pledged Debt Securities” or “Pledged Notes” all of the Pledged Debt
Securities and Pledged Notes owned by any Grantor and, to such Grantor’s knowledge, all of such
Pledged Debt Securities and Pledged Notes have been duly authorized, authenticated or issued, and
delivered and is the legal, valid and binding obligation of the issuers thereof enforceable in
accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principals of
equity, regardless of whether considered in a proceeding in equity or at law, and is not in default
and constitutes all of the issued and outstanding inter-company indebtedness evidenced by an
instrument or certificated security of the respective issuers thereof owing to such Grantor. Part
III of Schedule 4.07(a) hereto (as such schedule may be amended from time to time) sets forth under
the headings “Securities Accounts,” “Commodities Accounts,” and “Deposit Accounts” respectively,
all of the Securities Accounts, Commodities Accounts and Deposit Accounts in which each Grantor has
an interest. Each Grantor is the sole entitlement holder or customer of each such account, and no
Grantor has consented to or is otherwise aware of any person having “control” (within the meanings
of Sections 8-106, 9-106 and 9-104 of the New York UCC) over, or any other interest in, any such
Securities Account, Commodity Account or Deposit Account, in each case in which such Grantor has an
interest, or any securities, commodities or other property credited thereto.

     (b) Except as set forth in Schedule 4.07(b), the shares of Pledged Equity Interests pledged by
such Grantor hereunder constitute all of the issued and outstanding shares of all classes of Equity
Interests in each Issuer owned by such Grantor or, in the case of Excluded Foreign Subsidiary
Voting Stock, if less, 65% of the outstanding Excluded Foreign Subsidiary Voting Stock of each
relevant Issuer.

     (c) Except as set forth in Schedule 4.07(c), all the shares of the Pledged Equity Interests
have been duly and validly issued and are fully paid and nonassessable.

     (d) Except as set forth in Schedule 4.07(d), the terms of any uncertificated Pledged LLC
Interests and Pledged Partnership Interests expressly provide that they are securities governed by
Article 8 of the Uniform Commercial Code in effect from time to time in the “issuer’s jurisdiction”
of each Issuer thereof (as such term is defined in the Uniform Commercial Code in effect in such
jurisdiction).

     (e) There are no outstanding warrants, options or other rights to purchase, or shareholder,
voting trust or similar agreements outstanding with respect to, or property that is convertible
into, or that requires the issuance or sale of, any Pledged Equity Interests.

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     (f) Each Issuer (other than, as of the Closing Date, WebCT Educational Technologies
Corporation, WebCT (UK) Limited and WebCT (Australia) PTY LTD) that is not a Grantor hereunder has
executed and delivered to the Collateral Agent an Acknowledgement and Consent, in substantially the
form of Exhibit A, to the pledge of the Pledged Securities pursuant to this Agreement.

     4.08 Receivables

     (a) No amount payable to such Grantor under or in connection with any Receivable in excess of
$1,000,000 that is included in the Collateral is evidenced by any Instrument or Tangible Chattel
Paper which has not been delivered to the Collateral Agent or constitutes Electronic Chattel Paper
that has not been subjected to the control (within the meaning of Section 9-105 of the New York
UCC) of the Collateral Agent.

     (b) Except as set forth in Schedule 4.08(b), none of the obligors on any Receivables in excess
of $1,000,000 that are included in the Collateral is a U.S. Federal Governmental Authority.

     4.09 Intellectual Property.

     (a) Schedule 4.09(a) sets forth a true and complete list of all Intellectual Property which is
registered with or issued by a Governmental Authority or is the subject of an application for
registration or issuance, in each case which is owned by such Grantor in its own name on the date
hereof (collectively, the “Registered Intellectual Property”). Except as set forth in
Schedule 4.09(a), to such Grantor’s knowledge, such Grantor is the sole and exclusive owner of the
entire and unencumbered right, title and interest in and to all such Registered Intellectual
Property. To such Grantor’s knowledge, such Grantor has a valid and enforceable right to use all
Material Intellectual Property that it uses in its business, but does not own.

     (b) On the date hereof, to such Grantor’s knowledge, all Registered Intellectual Property that
is material to the conduct of such Grantor’s business is valid, subsisting, unexpired, and
enforceable and has not been abandoned. To such Grantor’s knowledge, neither the operation of such
Grantor’s business nor the use of any Intellectual Property in connection therewith infringes upon,
misappropriates, dilutes, misuses or otherwise violates the Intellectual Property rights of any
other person.

     (c) No action or proceeding is pending, or, to such Grantor’s knowledge, threatened, on the
date hereof (i) seeking to limit, cancel or question the validity, enforceability, registration,
ownership or use of any material Registered Intellectual Property or any other Intellectual
Property of such Grantor that is material to the conduct of such Grantor’s business (collectively,
the “Material Intellectual Property”), except to the extent any such action or proceeding
constitutes an office action instituted by any trademark or patent office in the context of any
trademark or patent prosecution in the ordinary course of business, or (ii) alleging that the
operation of such Grantor’s business, including such Grantor’s use of Material Intellectual
Property in connection therewith, infringes any Intellectual Property rights, or any other
right, of any other person. To such Grantor’s knowledge, no person is engaging in any
activity that infringes upon, or is otherwise an unauthorized use of, any Material Intellectual
Property. The

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consummation of the transactions contemplated by this Agreement (including the enforcement of
remedies) will not result in the termination or impairment of any of the Material Intellectual
Property.

     (d) With respect to each Copyright License, Trademark License, Trade Secret License, and
Patent License that is material to the conduct of such Grantor’s business to such Grantor’s
knowledge: (i) such license is valid and binding and in full force and effect; (ii) such license
will not cease to be valid and binding and in full force and effect on terms identical to those
currently in effect (except for increases in price associated with seat licenses) as a result of
the rights and interests granted herein, nor will the grant of such rights and interests constitute
a breach or default under such license or otherwise give the licensor or licensee a right to
terminate such license; (iii) such Grantor has not received any notice of termination or
cancellation under such license; (iv) such Grantor has not received any notice of a breach or
default under such license, which breach or default has not been cured; and (v) such Grantor is not
in breach or default in any material respect, and no event has occurred that, with notice and/or
lapse of time, would constitute such a breach or default or permit termination, modification or
acceleration under such license.

     (e) Except as set forth in Schedule 4.09(e), to such Grantor’s knowledge, such Grantor has
performed all acts and has paid all required fees and taxes to maintain each and every item of
Registered Intellectual Property in full force and effect and to protect and maintain its interest
therein.

     (f) Such Grantor has taken all actions that it reasonably believes are necessary to protect
each item of Material Intellectual Property that it owns or uses consistent with practices that are
customary in the industry.

     4.10 Letters of Credit and Letter of Credit Rights. No Grantor is a beneficiary or assignee
under any Letter of Credit other than the Letters of Credit described on Schedule 4.10 (as such
schedule may be amended or supplemented from time to time).

     4.11 Commercial Tort Claims. Except as specifically described on Schedule 4.11 (as such
schedule may be amended or supplemented from time to time), no Grantor has any Commercial Tort
Claims as of the date hereof individually or in the aggregate in excess of $2,000,000.

     4.12 Contracts. Except as set forth on Schedule 4.12, no Material Contract with a U.S.
Federal Governmental Authority with Receivables in excess of $1,000,000 which prohibits assignment
or encumbrance by such Grantor or requires or purports to require consent of, or notice to, any
party (other than such Grantor) to any Material Contract in connection with the execution, delivery
and performance of this Agreement, including the exercise of remedies by the Collateral Agent with
respect to such Material Contract, except for such consents that have been obtained and such
notices that have been given.

SECTION 5. COVENANTS

     Each Grantor covenants and agrees with the Secured Parties that, from and after the date of
this Agreement until the Obligations (other than Obligations in respect of any

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Specified Hedge Agreement) shall have been paid in full, no letter of credit issued under the
Credit Agreement shall be outstanding and all commitments to extend credit under the Credit
Agreement shall have expired or been terminated:

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

     5.02 Delivery and Control of Instruments, Chattel Paper, Negotiable Documents, Investment
Property and Deposit Accounts. (a) If any of the Collateral in excess of $1,000,000 is or shall
become evidenced or represented by any Instrument, Certificated Security, Negotiable Document or
Tangible Chattel Paper, such Instrument (other than checks received in the ordinary course of
business), Certificated Security, Negotiable Documents or Tangible Chattel Paper shall be promptly
delivered to the Collateral Agent, duly endorsed in a manner reasonably satisfactory to the
Collateral Agent, to be held as Collateral pursuant to this Agreement, and all of such property
owned by any Grantor as of the Closing Date shall be delivered on the Closing Date.

     (b) If any of the Collateral in excess of $1,000,000 is or shall become “Electronic Chattel
Paper” such Grantor shall ensure that (i) a single authoritative copy exists which is unique,
identifiable, unalterable (except as provided in clauses (iii), (iv) and (v) of this paragraph),
(ii) such authoritative copy identifies the Collateral Agent as the assignee and is communicated to
and maintained by the Collateral Agent or its designee, (iii) copies or revisions that add or
change the assignee of the authoritative copy can only be made with the participation of the
Collateral Agent, (iv) each copy of the authoritative copy and any copy of a copy is readily
identifiable as a copy and not the authoritative copy and (v) any revision of the authoritative
copy is readily identifiable as an authorized or unauthorized revision.

     (c) If any Collateral in excess of $1,000,000 is or shall become evidenced or represented by
an Uncertificated Security, such Grantor shall cause the Issuer thereof either (i) to register the
Collateral Agent as the registered owner of such Uncertificated Security, upon original issue or
registration of transfer or (ii) to agree in writing with such Grantor and the Collateral Agent
that such Issuer will comply with instructions with respect to such Uncertificated Security
originated by the Collateral Agent without further consent of such Grantor, such agreement to be in
substantially the form of Exhibit B, and such actions shall be taken on or prior to the Closing
Date with respect to any Uncertificated Securities owned as of the Closing Date by any Grantor.

     (d) To the extent reasonably requested by the Collateral Agent, each Grantor shall maintain
Securities Entitlements, Securities Accounts and Deposit Accounts with values in excess of
$1,000,000 only with financial institutions that have agreed to comply with Entitlement Orders and
instructions issued or originated by the Collateral Agent without further consent of such Grantor,
such agreement to be substantially in the form of Exhibit B or C or such other form as shall be
reasonably acceptable to the Collateral Agent.

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     (e) If any of the Collateral is or shall become evidenced or represented by a Commodity
Contract, such Grantor shall cause the Commodity Intermediary with respect to such Commodity
Contract to agree in writing with such Grantor and the Collateral Agent that such Commodity
Intermediary will apply any value distributed on account of such Commodity Contract as directed by
the Collateral Agent without further consent of such Grantor, such agreement to be in substantially
the form of Exhibit D or such other form as shall be reasonably acceptable to the Collateral Agent.

     (f) In addition to and not in lieu of the foregoing, if any Issuer of any Investment Property
is organized under the law of, or has its chief executive office in, a jurisdiction outside of the
United States, each Grantor shall take such additional actions, including causing the issuer to
register the pledge on its books and records as may be reasonably requested by the Collateral
Agent, under the laws of such jurisdiction to insure the validity, perfection and priority of the
security interest of the Collateral Agent.

     (g) In the case of any transferable Letters of Credit Rights in excess of $1,000,000
individually or in the aggregate, each Grantor shall use commercially reasonable efforts to obtain
the consent of any issuer thereof to the transfer of such Letter of Credit Rights to the Collateral
Agent. In the case of any other Letter of Credit Rights in excess of $1,000,000 individually or in
the aggregate each Grantor shall use commercially reasonable efforts to obtain the consent of the
issuer thereof and any nominated person thereon to the assignment of the proceeds of the related
Letter of Credit in accordance with Section 5-114(c) of the New York UCC.

     5.03 Maintenance of Perfected Security Interest; Further Documentation.

     (a) Such Grantor shall maintain each of the security interests created by this Agreement as a
perfected security interest having at least the priority described in Section 4.03 and shall defend
such security interest against the claims and demands of all persons whomsoever, subject to the
provisions of Section 8.15.

     (b) Such Grantor shall furnish to the Secured Parties from time to time statements and
schedules further identifying and describing the Collateral and such other reports in connection
with the assets and property of such Grantor as the Collateral Agent may reasonably request, all in
reasonable detail.

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

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or securities intermediary to execute and deliver a Control Agreement in the form attached
hereto as Exhibit C or such other form reasonably acceptable to the Collateral Agent.

     5.04 Changes in Locations, Name, Jurisdiction of Incorporation, etc. Such Grantor shall not,
except upon, in the case of clause (i) below, 60 days’ written notice after such change and, in the
case of clause (ii) below, 10 days’ prior written notice, in each case, to the Collateral Agent and
delivery to the Collateral Agent of duly authorized and, where required, executed copies of (a) all
additional financing statements and other documents reasonably requested by the Collateral Agent to
maintain the validity, perfection and priority of the security interests provided for herein and
(b) if applicable, a written supplement to Schedule 4.05(a) showing any additional location at
which Inventory or Equipment (other than mobile goods) with a value in excess of $1,000,000
individually or in the aggregate that is included in the Collateral shall be kept:

     (i) permit any of the Inventory or Equipment (other than mobile goods) with a value of
$1,000,000 individually or in the aggregate, to be kept at a location other than those
listed on Schedule 4.05(a); or

     (ii) change its legal name, jurisdiction of organization, type of organization,
organizational ID, or the location of its chief executive office or sole place of business
or file any certificates of domestication, transfer or continuance in any other jurisdiction
from that referred to in Section 4.04.

     5.05 Notices. Such Grantor shall advise the Collateral Agent promptly, in reasonable detail,
of any Lien (other than any Lien expressly permitted by Section 6.02 of the Credit Agreement) on
any of the Collateral which would adversely affect the ability of the Collateral Agent to exercise
any of its remedies hereunder.

5.06 Investment Property

     (a) If such Grantor shall become entitled to receive or shall receive any stock or other
ownership certificate (including any certificate representing a stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Equity Interests in any
Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any
shares of or other ownership interests in the Pledged Securities, or otherwise in respect thereof,
such Grantor shall accept the same as the agent of the Secured Parties, hold the same in trust for
the Secured Parties and deliver the same forthwith to the Collateral Agent in the exact form
received, duly endorsed by such Grantor to the Collateral Agent, if required, together with an
undated stock power or similar instrument of transfer covering such certificate duly executed in
blank by such Grantor and with, if the Collateral Agent so requests, signature guaranteed, to be
held by the Collateral Agent, subject to the terms hereof, as additional collateral security for
the Obligations. Upon the occurrence and during the continuance of an Event of Default, (i) any
sums paid upon or in respect of the Pledged Securities upon the liquidation or dissolution of any
Issuer shall be paid over to the Collateral Agent to be held by it hereunder as additional
collateral security for the Obligations, and (ii) in case any distribution of capital shall be made
on or in respect of the Pledged Securities or any property shall be

24

 

distributed upon or with respect to the Pledged Securities pursuant to the recapitalization or
reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected security interest in favor
of the Collateral Agent, be delivered to the Collateral Agent to be held by it hereunder as
additional collateral security for the Obligations. Upon the occurrence and during the continuance
of an Event of Default, if any sums of money or property so paid or distributed in respect of the
Pledged Securities shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Collateral Agent, hold such money or property in trust for the
Secured Parties, segregated from other funds of such Grantor, as additional collateral security for
the Obligations.

     (b) Without the prior written consent of the Collateral Agent (such consent not to be
unreasonably withheld), such Grantor shall not (i) vote to enable, or take any other action to
permit, any Issuer to issue any stock, partnership interests, limited liability company interests
or other equity securities of any nature or to issue any other securities convertible into or
granting the right to purchase or exchange for any stock, partnership interests, limited liability
company interests or other equity securities of any nature of any Issuer (except, in each case,
pursuant to a transaction expressly permitted by the Credit Agreement), (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect to, any of the
Investment Property or Proceeds thereof or any interest therein (except, in each case, pursuant to
a transaction expressly permitted by the Credit Agreement), (iii) create, incur or permit to exist
any Lien or option in favor of, or any claim of any person with respect to, any of the Investment
Property or Proceeds thereof, or any interest therein, except for the security interests created by
this Agreement or any Lien expressly permitted thereon pursuant to Section 6.02 of the Credit
Agreement, (iv) enter into any agreement or undertaking restricting the right or ability of such
Grantor or the Collateral Agent to sell, assign or transfer any of the Investment Property or
Proceeds thereof or any interest therein or (v) without the prior written consent of the Collateral
Agent, cause or permit any Issuer of any Pledged Partnership Interests or Pledged LLC Interests
which are not securities (for purposes of the New York UCC) on the date hereof to elect or
otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to
be treated as securities for purposes of the New York UCC; provided, however,
notwithstanding the foregoing, if any issuer of any Pledged Partnership Interests or Pledged LLC
Interests takes any such action in violation of the provisions in this clause (v), such Grantor
shall promptly notify the Collateral Agent in writing of any such election or action and, in such
event, shall take all steps necessary or advisable to establish the Collateral Agent’s “control”
thereof.

     (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it shall be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and shall
comply with such terms insofar as such terms are applicable to it, (ii) it shall notify the
Collateral Agent promptly in writing of the occurrence of any of the events described in Section
5.06(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections 6.03(c)
and 6.07 shall apply to it, mutatis mutandis, with respect to all actions that may
be required of it pursuant to Section 6.03(c) or 6.06 with respect to the Pledged Securities issued
by it. In addition, each Grantor which is either an Issuer or an owner of any Pledged Security
hereby consents to the grant by each other Grantor of the security interest hereunder in favor of
the Collateral Agent and to the transfer of any Pledged Security to the Collateral Agent or its

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nominee following an Event of Default and to the substitution of the Collateral Agent or its
nominee as a partner, member or shareholder of the Issuer of the related Pledged Security.

     5.07 Intellectual Property.

     (a) Except where it would be commercially unreasonable to do so, such Grantor shall (i)
continue to use each Trademark that constitutes Material Intellectual Property in each and every
trademark class of goods applicable to its current line as reflected in its current catalogs,
brochures and price lists in order to maintain such Trademark in full force free from any claim of
abandonment for non-use, (ii) maintain, consistent with past practice, the quality of products and
services offered under such Trademark and take all steps, consistent with past practice, to ensure
that all licensed users of such Trademark maintain such quality, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required by applicable
Requirements of Law, (iv) not adopt or use any mark which is confusingly similar or a colorable
imitation of such Trademark unless the Collateral Agent, for the ratable benefit of the Secured
Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement and the
Trademark Security Agreement, and (v) not knowingly do any act or omit to do any act whereby such
Trademark may become invalidated or impaired in any way.

     (b) Such Grantor shall not knowingly do any act, or omit to do any act, whereby any Patent
owned by such Grantor that constitutes Material Intellectual Property may become forfeited,
abandoned or dedicated to the public, unless such forfeiture, abandonment or dedication is
commercially reasonable. Notwithstanding the foregoing, normal prosecution of any patent in the
ordinary course of business shall not be deemed to be a violation of this Section 5.07.

     (c) Such Grantor shall not knowingly do any act or omit to do any act whereby any such
Copyrights that constitute Material Intellectual Property may become invalidated or otherwise
impaired. Such Grantor shall not knowingly do any act whereby any such Copyrights may fall into
the public domain.

     (d) Such Grantor shall not do any act that infringes, misappropriates or violates the
Intellectual Property rights of any other person, except for any such infringements,
misappropriations or violations that, individually or in the aggregate, could not reasonably be
expected to adversely affect Borrower or the Subsidiaries or their respective businesses in any
material respect.

     (e) Such Grantor shall use proper statutory notice in connection with the use of any Material
Intellectual Property.

     (f) Such Grantor shall notify the Collateral Agent as soon as reasonably practicable if it
knows that any application or registration relating to any Material Intellectual Property is likely
to become forfeited, abandoned or dedicated to the public, or of any material adverse determination
or development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States Copyright Office or
any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of,
any Material Intellectual Property or such Grantor’s right to

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register the same or to own and maintain the same. Notwithstanding the foregoing, ordinary
prosecution of an Intellectual Property right shall not be deemed to be a violation of this Section
5.07(f).

     (g) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office or any similar office or agency in any other country or
any political subdivision thereof, such Grantor shall report such filing to the Collateral Agent
each year, at the time of delivery of the annual financial statements, with respect to the fiscal
year in which Grantor made such a filing. Upon request of the Collateral Agent, such Grantor shall
execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers
as the Collateral Agent may reasonably request to evidence the Secured Parties’ security interest
in any Patent, Trademark or other Intellectual Property of such Grantor and the goodwill and
general intangibles of such Grantor relating thereto or represented thereby.

     (h) Except to the extent such Grantor determines in its reasonable judgment that any such
Registered Intellectual Property is no longer necessary or useful to the conduct of such Grantor’s
business, such Grantor shall take all commercially reasonable steps, including in any proceeding
before the United States Patent and Trademark Office, the United States Copyright Office or any
similar office or agency in any other country or any political subdivision thereof, to maintain and
pursue each application (and to obtain the relevant registration) and to maintain each registration
of Registered Intellectual Property, including the payment of required fees and taxes, the filing
of responses to office actions issued by the United States Patent and Trademark Office and the
United States Copyright Office, the filing of applications for renewal or extension, the filing of
affidavits of use and affidavits of incontestability, the filing of divisional, continuation,
continuation-in-part, reissue, and renewal applications or extensions, the payment of maintenance
fees, and the participation in interference, reexamination, opposition, cancellation, infringement
and misappropriation proceedings.

     (i) Such Grantor shall not license any of its Material Intellectual Property, except in the
ordinary course of business.

     (j) To the extent commercially reasonable, in the event that any Grantor becomes aware that
any Material Intellectual Property is infringed, misappropriated or diluted by a third party, such
Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such Intellectual Property is of
material economic value, promptly notify the Collateral Agent after it learns thereof and take all
reasonable steps to terminate the infringement, misappropriation or dilution.

     (k) Such Grantor agrees that, should it obtain an ownership interest in any item of Material
Intellectual Property which is not, as of the Closing Date, a part of the Intellectual Property
Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 3
shall automatically apply thereto, (ii) any such After-Acquired Intellectual Property, and in the
case of Trademarks, the goodwill of the business connected therewith or symbolized thereby, shall
automatically become part of the Intellectual Property Collateral, except to the extent it
constitutes Excluded Assets and (iii) it shall provide the Collateral Agent, each year, at

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the time of delivery of the annual financial statements with respect to the fiscal year in
which Grantor acquires such ownership interest) with an amended Schedule 4.09(a).

     (l) Such Grantor agrees to execute upon Closing, a Trademark Security Agreement, in
substantially the form of Exhibit E, a Copyright Security Agreement, in substantially the form of
Exhibit F, and a Patent Security Agreement, in substantially the form of Exhibit G, in order to
record the security interest granted herein to the Collateral Agent for the ratable benefit of the
Secured Parties with the United States Patent and Trademark Office, the United States Copyright
Office, and any other applicable U.S. Governmental Authority.

     (m) Such Grantor agrees to execute a Trademark, Copyright or Patent Security Agreement as
applicable with respect to its After-Acquired Intellectual Property in substantially the form of
Exhibit E, F, or G in order to record the security interest granted herein to the Collateral Agent
for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office,
the United States Copyright Office and any other applicable U.S. Governmental Authority.

     (n) Such Grantor shall take all commercially reasonable steps consistent with past practice to
protect the secrecy of all Trade Secrets material to its business, including entering into
confidentiality agreements with employees and restricting access to secret information and
documents.

     5.08 Commercial Tort Claims. Such Grantor shall advise the Collateral Agent promptly of any
Commercial Tort Claim held by such Grantor individually or in the aggregate in excess of $2,000,000
and shall promptly execute a supplement to this Agreement in form and substance reasonably
satisfactory to the Collateral Agent to grant a security interest in such Commercial Tort Claim to
the Collateral Agent for the ratable benefit of the Secured Parties.

SECTION 6. REMEDIAL PROVISIONS

     6.01 Certain Matters Relating to Receivables.

     (a) After the occurrence and during the continuance of an Event of Default, the Collateral
Agent shall have the right (but shall in no way be obligated) to make test verifications of the
Receivables that are included in the Collateral in any manner and through any medium that it
reasonably considers advisable, and each Grantor shall furnish all such assistance and information
as the Collateral Agent may reasonably require in connection with such test verifications. After
the occurrence and during the continuance of an Event of Default, upon the Collateral Agent’s
request and at the expense of the relevant Grantor, such Grantor shall cause independent public
accountants or others satisfactory to the Collateral Agent to furnish to the Collateral Agent
reports showing reconciliations, aging and test verifications of, and trial balances for, the
Receivables.

     (b) The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Receivables
and the Collateral Agent may curtail or terminate said authority at any time after the occurrence
and during the continuance of an Event of Default. If required by the Collateral Agent at any time
after the occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith

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(and, in any event, within two Business Days) deposited by such Grantor in the exact form
received, duly endorsed by such Grantor to the Collateral Agent if required, in a Collateral
Account maintained under the sole dominion and control of the Collateral Agent, subject to
withdrawal by the Collateral Agent for the account of the Secured Parties only as provided in
Section 6.05, and (ii) until so turned over, shall be held by such Grantor in trust for the Secured
Parties, segregated from other funds of such Grantor. Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature and source of the
payments included in the deposit.

     (c) After the occurrence and during the continuance of an Event of Default, at the Collateral
Agent’s request, each Grantor shall deliver to the Collateral Agent all original and other
documents evidencing, and relating to, the agreements and transactions which gave rise to the
Receivables that are included in the Collateral, including all original orders, invoices and
shipping receipts.

     6.02 Communications with Obligors; Grantors Remain Liable.

     (a) The Collateral Agent in its own name or in the name of others may at any time after the
occurrence and during the continuance of an Event of Default communicate with obligors under the
Receivables and parties to the Contracts to verify with them to the Collateral Agent’s satisfaction
the existence, amount and terms of any Receivables or Contracts.

     (b) Upon the request of the Collateral Agent at any time after the occurrence and during the
continuance of an Event of Default, the Collateral Agent may require any Grantor to notify, the
Account Debtor or counterparty to make all payments under the Receivables and/or Contracts directly
to the Collateral Agent;

     (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables and Contracts to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto. No Secured Party shall have any obligation or liability under any Receivable
(or any agreement giving rise thereto) or Contract by reason of or arising out of this Agreement or
the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party be
obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto) or Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency
of any performance by any party thereunder, to present or file any claim, to take any action to
enforce any performance or to collect the payment of any amounts which may have been assigned to it
or to which it may be entitled at any time or times.

     6.03 Pledged Securities.

     (a) Unless an Event of Default shall have occurred and be continuing and the Collateral Agent
shall have given notice to the relevant Grantor of the Collateral Agent’s intent to exercise its
corresponding rights pursuant to Section 6.03(b), each Grantor shall be permitted to receive all
cash dividends and distributions paid in respect of the Pledged Equity Interests and

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all payments made in respect of the Pledged Notes to the extent permitted in the Credit
Agreement, and to exercise all voting and other rights with respect to the Pledged
Securities.

     (b) If an Event of Default shall occur and be continuing: (i) all rights of each Grantor to
exercise or refrain from exercising the voting and other consensual rights which it would otherwise
be entitled to exercise pursuant hereto shall cease and all such rights shall thereupon become
vested in the Collateral Agent who shall thereupon have the sole right, but shall be under no
obligation, to exercise or refrain from exercising such voting and other consensual rights and (ii)
the Collateral Agent shall have the right, without notice to any Grantor, to transfer all or any
portion of the Investment Property to its name or the name of its nominee or agent. In addition,
the Collateral Agent shall have the right at any time, without notice to any Grantor, to exchange
any certificates or instruments representing any Investment Property for certificates or
instruments of smaller or larger denominations. In order to permit the Collateral Agent to
exercise the voting and other consensual rights which it may be entitled to exercise pursuant
hereto and to receive all dividends and other distributions which it may be entitled to receive
hereunder each Grantor shall promptly execute and deliver (or cause to be executed and delivered)
to the Collateral Agent all proxies, dividend payment orders and other instruments as the
Collateral Agent may from time to time reasonably request and each Grantor acknowledges that the
Collateral Agent may utilize the power of attorney set forth herein.

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

     6.04 Proceeds to be Turned Over To Collateral Agent. In addition to the rights of the Secured
Parties specified in Section 6.01 with respect to payments of Receivables, if an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, cash
equivalents, checks and other near-cash items shall be held by such Grantor in trust for the
Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon receipt by
such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor
(duly endorsed by such Grantor to the Collateral Agent, if required). All Proceeds received by the
Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral Account maintained
under its sole dominion and control. All Proceeds while held by the Collateral Agent in a
Collateral Account (or by such Grantor in trust for the Secured Parties) shall continue to be held
as collateral security for all the Obligations and shall not constitute payment thereof until
applied as provided in Section 6.05.

     6.05 Application of Proceeds. If an Event of Default shall have occurred and be continuing,
at any time at the Collateral Agent’s election, the Collateral Agent may apply all or any part of
the net Proceeds (after deducting fees and expenses as provided in Section 6.06) constituting
Collateral realized through the exercise by the Collateral Agent of its remedies

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hereunder, whether or not held in any Collateral Account, and any proceeds of the guarantee
set forth in Section 2, in payment of the Obligations in the following order:

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

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

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

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

     6.06 Code and Other Remedies.

     (a) If an Event of Default shall occur and be continuing, the Collateral Agent, on behalf of
the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in
this Agreement and in any other instrument or agreement securing, evidencing or relating to the
Obligations, all rights and remedies of a secured party under the New York UCC (whether or not the
New York UCC applies to the affected Collateral) or its rights under any other applicable law or in
equity. Without limiting the generality of the foregoing, the Collateral Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other person (all and each
of which demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, license, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of any Secured Party or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk. Each Secured Party shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption
in any Grantor, which right or equity is hereby waived and released. Each Grantor hereby waives
(to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten days notice to such Grantor of the time and place of any public sale or the time
after which any private sale is

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to be made shall constitute reasonable notification. The Collateral Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having been given. The
Collateral Agent may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned. The Collateral Agent may sell the Collateral without giving
any warranties as to the Collateral. The Collateral Agent may specifically disclaim or modify any
warranties of title or the like. This procedure will not be considered to adversely effect the
commercial reasonableness of any sale of the Collateral. Each Grantor agrees that it would not be
commercially unreasonable for the Collateral Agent to dispose of the Collateral or any portion
thereof by using Internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of
assets. Each Grantor hereby waives any claims against the Collateral Agent arising by reason of
the fact that the price at which any Collateral may have been sold at such a private sale was less
than the price which might have been obtained at a public sale, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more than one offeree. Each
Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it
available to the Collateral Agent at places which the Collateral Agent shall reasonably select,
whether at such Grantor’s premises or elsewhere. The Collateral Agent shall have the right to
enter onto the property where any Collateral is located and take possession thereof with or without
judicial process.

     (b) The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to
this Section 6.06, after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the Collateral or in any
way relating to the Collateral or the rights of the Secured Parties hereunder, including reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations and only
after such application and after the payment by the Collateral Agent of any other amount required
by any provision of law, including Section 9-615(a) of the New York UCC, need the Collateral Agent
account for the surplus, if any, to any Grantor. If the Collateral Agent sells any of the
Collateral upon credit, the Grantor will be credited only with payments actually made by the
purchaser and received by the Collateral Agent and applied to indebtedness of the purchaser. In
the event the purchaser fails to pay for the Collateral, the Collateral Agent may resell the
Collateral and the Grantor shall be credited with proceeds of the sale. To the extent permitted by
applicable law, each Grantor waives all claims, damages and demands it may acquire against any
Secured Party arising out of the exercise by them of any rights hereunder.

     (c) In the event of any disposition of any of the Intellectual Property, the goodwill of the
business connected with and symbolized by any Trademarks subject to such disposition shall be
included, and the applicable Grantor shall supply the Collateral Agent or its designee with such
Grantor’s know-how and expertise, and with documents and things embodying the same, relating to the
manufacture, distribution, advertising and sale of products or the provision of services relating
to any Intellectual Property subject to such disposition, and such Grantor’s customer lists and
other records and documents relating to such Intellectual Property and to the manufacture,
distribution, advertising and sale of such products and services.

     (d) The Collateral Agent shall have no obligation to marshal any of the Collateral.

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

SECTION 7. THE COLLATERAL AGENT

     7.01 Collateral Agent’s Appointment as Attorney-in-Fact, etc.

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

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

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

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

     (iv) execute, in connection with any sale provided for in Section 6.07, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

     (v) (1) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Collateral
Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive
payment of and receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of any Collateral; (3) sign and endorse any
invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts
against debtors, assignments, verifications, notices and other

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documents in connection with any of the Collateral; (4) commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in respect of
any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with
respect to any Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the Collateral
Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the
goodwill of the business to which any such Copyright, Patent or Trademark pertains),
throughout the world for such term or terms, on such conditions, and in such manner, as the
Collateral Agent shall in its sole discretion determine; and (8) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the Collateral
as fully and completely as though the Collateral Agent were the absolute owner thereof for
all purposes, and do, at the Collateral Agent’s option and such Grantor’s expense, at any
time, or from time to time, all acts and things which the Collateral Agent deems necessary
to protect, preserve or realize upon the Collateral and the Secured Parties’ security
interests therein and to effect the intent of this Agreement, all as fully and effectively
as such Grantor might do.

     Anything in this Section 7.01(a) to the contrary notwithstanding, the Collateral Agent agrees
that, except as provided in Section 7.01(b), it will not exercise any rights under the power of
attorney provided for in this Section 7.01(a) unless an Event of Default shall have occurred and be
continuing.

     (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement; provided, however,
that unless and Event of Default has occurred and is continuing or time is of the essence, the
Collateral Agent shall not exercise this power without first making demand on the Grantor and the
Grantor failing to immediately comply therewith.

     (c) The expenses of the Collateral Agent incurred in connection with actions undertaken as
provided in this Section 7.01, together with interest thereon at a rate per annum equal to the rate
per annum at which interest would then be payable on past due Revolving Loans that are ABR Loans
under the Credit Agreement, from the date of payment by the Collateral Agent to the date reimbursed
by the relevant Grantor, shall be payable by such Grantor to the Collateral Agent on demand.

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

     7.02 Duty of Collateral Agent. The Collateral Agent’s sole duty with respect to the custody,
safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of
the New York UCC or otherwise, shall be to use reasonable care in the custody and preservation of
such Collateral. Neither the Collateral Agent, nor any other Secured Party nor any of their
respective officers, directors, partners, employees, agents, attorneys and other

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advisors, attorneys-in-fact or affiliates shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or any other person or
to take any other action whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Secured Parties hereunder are solely to protect the Secured Parties’ interests in
the Collateral and shall not impose any duty upon any Secured Party to exercise any such powers.
The Secured Parties shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers, directors, partners,
employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be
responsible to any Grantor for any act or failure to act hereunder, except to the extent that any
such act or failure to act is found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted primarily from their own gross negligence or willful misconduct in
breach of a duty owed to such Grantor.

     7.03 Filing of Financing Statements. Each Grantor acknowledges that pursuant to Section
9-509(b) of the New York UCC and any other applicable law, each Grantor authorizes the Collateral
Agent to file or record financing or continuation statements, and amendments thereto, and other
filing or recording documents or instruments with respect to the Collateral, without the signature
of such Grantor, in such form and in such offices as the Collateral Agent reasonably determines
appropriate to perfect or maintain the perfection of the security interests of the Collateral Agent
under this Agreement. Each Grantor agrees that such financing statements may describe the
collateral in the same manner as described in the Security documents or as “all assets” or “all
personal property,” whether now owned or hereafter existing or acquired or such other description
as the Collateral Agent, in its sole judgment, determines is necessary or advisable. A
photographic or other reproduction of this Agreement shall be sufficient as a financing statement
or other filing or recording document or instrument for filing or recording in any jurisdiction.

     7.04 Authority of Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting
right, request, judgment or other right or remedy provided for herein or resulting or arising out
of this Agreement shall, as between the Collateral Agent and the other Secured Parties, be governed
by the Credit Agreement and by such other agreements with respect thereto as may exist from time to
time among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall
be conclusively presumed to be acting as agent for the Secured Parties with full and valid
authority so to act or refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

     7.05 Appointment of Co-Collateral Agents. At any time or from time to time, in order to
comply with any applicable requirement of law, the Collateral Agent may appoint another bank or
trust company or one of more other persons, either to act as co-agent or agents on behalf of the
Secured Parties with such power and authority as may be necessary for the effectual operation of
the provisions hereof and which may be specified in the instrument of appointment (which may, in
the discretion of the Collateral Agent, include provisions for indemnification and similar
protections of such co-agent or separate agent).

35

 

SECTION 8. MISCELLANEOUS

     8.01 Amendments in Writing. None of the terms or provisions of this Agreement may be waived,
amended, supplemented or otherwise modified except by a written instrument executed by each
affected Grantor and the Collateral Agent, subject to any consents required under Section 9.08 of
the Credit Agreement; provided that any provision of this Agreement imposing obligations on
any Grantor may be waived by the Collateral Agent in a written instrument executed by the
Collateral Agent.

     8.02 Notices. All notices, requests and demands to or upon the Collateral Agent or any
Grantor hereunder shall be effected in the manner provided for in Section 9.01 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor at its notice address set forth on Schedule 8.02.

     8.03 No Waiver by Course of Conduct; Cumulative Remedies. No Secured Party shall by any act
(except by a written instrument pursuant to Section 8.01), delay, indulgence, omission or otherwise
be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or
Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Secured
Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by any Secured
Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which such Secured Party would otherwise have on any future occasion. The rights
and remedies herein provided are cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by law.

     8.04 Enforcement Expenses; Indemnification.

     (a) Each Grantor agrees to pay or reimburse each Secured Party for all its costs and expenses
incurred in collecting against such Grantor under the guarantee contained in Section 2 or otherwise
enforcing or preserving any rights under this Agreement and the other Loan Documents to which such
Grantor is a party, including the fees and disbursements of counsel to each Secured Party and of
counsel to the Collateral Agent.

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

     (c) Each Grantor agrees to pay, and to hold the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the Borrower would be
required to do so pursuant to Section 9.05 of the Credit Agreement.

36

 

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

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

     8.06 Set-Off. Each Grantor hereby irrevocably authorizes each Secured Party at any time and
from time to time, while an Event of Default shall have occurred and be continuing to set-off and
appropriate and apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Secured Party to or for the credit or the account of such Grantor, or any part
thereof in such amounts as such Secured Party may elect, against and on account of the obligations
and liabilities of such Grantor to such Secured Party hereunder and claims of every nature and
description of such Secured Party against such Grantor, in any currency, whether arising hereunder,
under the Credit Agreement, any other Loan Document or otherwise, as such Secured Party may elect,
whether or not any Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. Each Secured Party shall notify such
Grantor promptly of any such set-off and the application made by such Secured Party of the proceeds
thereof, provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Secured Party under this Section are in addition
to other rights and remedies (including other rights of set-off) which such Secured Party may have.

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

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

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

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

37

 

     8.11 APPLICABLE LAW. THIS AGREEMENT INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR IN
ANY WAY RELATING TO THE SUBJECT MATTER HEREOF, SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.

     8.12 Submission to Jurisdiction; Waivers. Each Grantor hereby irrevocably and
unconditionally:

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

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

     (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Grantor at its address referred to in Section 8.02 or at such other address of
which the Collateral Agent shall have been notified pursuant thereto;

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

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

     8.13 Acknowledgments. Each Grantor hereby acknowledges that:

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

     (b) no Secured Party has any fiduciary relationship with or duty to any Grantor arising out of
or in connection with this Agreement or any of the other Loan Documents, and the relationship
between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

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

     8.14 Additional Grantors. Each Subsidiary of the Borrower that is required to become a party
to this Agreement pursuant to Section 5.09 of the Credit Agreement shall become

38

 

a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of
an Assumption Agreement in the form of Annex 1 hereto.

     8.15 Releases.

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

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

     (c) Each Grantor acknowledges that it is not authorized to file any financing statement or
amendment or termination statement with respect to any financing statement originally filed in
connection herewith without the prior written consent of the Collateral Agent, subject to such
Grantor’s rights under Section 9-509(d)(2) of the New York UCC.

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

[Remainder of page intentionally left blank]

39

 

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

	 	 	 	 	 
	 	BLACKBOARD INC.

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	Senior Vice President, General Counsel and

Secretary 	 
	 

	 	 	 	 	 
	 	BLACKBOARD ACQUISITION COMPANY, LLC

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	Manager 	 
	 

	 	 	 	 	 
	 	Bb ACQUISITION CORP.

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President and Secretary 	 
	 

	 	 	 	 	 
	 	BLACKBOARD INTERNATIONAL HOLDINGS INC.

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President and Secretary 	 
	 

	 	 	 	 	 
	 	BLACKBOARD TENNESSEE LLC

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	Manager 	 
	 

	 	 	 	 	 
	 	COLLEGE ACQUISITION SUB, INC.

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President and Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BLACKBOARD iCOLLEGE, INC

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President and Secretary 	 
	 

	 	 	 	 	 
	 	BLACKBOARD CORP. (DE)

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President and Secretary 	 
	 

	 	 	 	 	 
	 	Bb MANAGEMENT LLC

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	Manager 	 
	 

	 	 	 	 	 
	 	BLACKBOARD CAMPUSWIDE OF TEXAS, INC.

 	 
	 	By:  	/s/ Matthew H. Small
 	 
	 	 	Name:  	Matthew H. Small 	 
	 	 	Title:  	President, Secretary and Treasurer 	 

2

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Collateral Agent

 	 
	 	By:  	/s/ Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                       /s/ Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	Vice President

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