QuickLinks -- Click here to rapidly navigate through this document

Exhibit 10.28

EXHIBIT A TO CREDIT AGREEMENT

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

GUARANTEE AND COLLATERAL AGREEMENT

made by

SCIENTIFIC GAMES CORPORATION

and certain of its Subsidiaries

in favor of

THE BANK OF NEW YORK,

as Administrative Agent

Dated as of December 19, 2002

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

TABLE OF CONTENTS

 
   
  Page

--------------------------------------------------------------------------------

SECTION 1. DEFINED TERMS
 
1 1.1.   Definitions   1 1.2.   Other Definitional Provisions   3
SECTION 2. GUARANTEE
 
4 2.1.   Guarantee   4 2.2.   Right of Contribution   4 2.3.   No Subrogation  
4 2.4.   Amendments, etc. with respect to the Borrower Obligations   4 2.5.  
Guarantee Absolute and Unconditional   5 2.6.   Reinstatement   5 2.7.  
Payments   5
SECTION 3. GRANT OF SECURITY INTEREST
 
6
SECTION 4. REPRESENTATIONS AND WARRANTIES
 
6 4.1.   Representations in Credit Agreement   6 4.2.   Title; No Other Liens  
7 4.3.   Perfected First Priority Liens   7 4.4.   Jurisdiction of Organization;
Chief Executive Office   7 4.5.   Inventory and Equipment   7 4.6.   Farm
Products   7 4.7.   Investment Property   7 4.8.   Receivables   7 4.9.  
Intellectual Property   7
SECTION 5. COVENANTS
 
8 5.1.   Covenants in Credit Agreement   8 5.2.   Delivery of Instruments and
Chattel Paper   8 5.3.   Maintenance of Insurance   8 5.4.   Payment of
Obligations   8 5.5.   Maintenance of Perfected Security Interest; Further
Documentation   8 5.6.   Changes in Locations, Name, etc   9 5.7.   Notices   9
5.8.   Investment Property   9 5.9.   Receivables   10 5.10.   Intellectual
Property   10
SECTION 6. REMEDIAL PROVISIONS
 
11 6.1.   Certain Matters Relating to Receivables   11 6.2.   Communications
with Obligors; Grantors Remain Liable   12 6.3.   Pledged Stock   12 6.4.  
Proceeds to be Turned Over to Administrative Agent   13 6.5.   Application of
Proceeds   13 6.6.   Code and Other Remedies   13 6.7.   Registration Rights  
14 6.8.   Deficiency   15

i

--------------------------------------------------------------------------------

SECTION 7. THE ADMINISTRATIVE AGENT
 
15 7.1.   Administrative Agent's Appointment as Attorney-in-Fact, etc.   15 7.2.
  Duty of Administrative Agent   16 7.3.   Execution of Financing Statements  
16 7.4.   Authority of Administrative Agent   17
SECTION 8. MISCELLANEOUS
 
17 8.1.   Amendments in Writing   17 8.2.   Notices   17 8.3.   No Waiver by
Course of Conduct; Cumulative Remedies   17 8.4.   Enforcement Expenses;
Indemnification   17 8.5.   Successors and Assigns   18 8.6.   Set-Off   18 8.7.
  Counterparts   18 8.8.   Severability   18 8.9.   Section Headings   18 8.10.
  Integration   18 8.11.   GOVERNING LAW   18 8.12.   Submission To
Jurisdiction; Waivers   19 8.13.   Acknowledgements   19 8.14.   Additional
Grantors   19 8.15.   Releases   19 8.16.   WAIVER OF JURY TRIAL   20

SCHEDULES    
Schedule 1
 
Notice Addresses of Guarantors Schedule 2   Description of Pledged Securities
Schedule 3   Filings and Other Actions Required to Perfect Security Interests
Schedule 4   Location of Jurisdiction of Organization and Chief Executive Office
Schedule 5   Location of Inventory and Equipment (including Exhibit A Office
Leases Addresses) Schedule 6   Intellectual Property Schedule 7   Governmental
Authorities
ANNEXES
 
  Annex I   Form of Assumption Agreement Annex II   Form of Acknowledgment and
Consent

ii

--------------------------------------------------------------------------------

        GUARANTEE AND COLLATERAL AGREEMENT, dated as of December 19, 2002, 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 THE BANK
OF NEW YORK, as Administrative Agent (in such capacity, the "Administrative
Agent") for the banks, financial institutions and other entities (the "Lenders")
from time to time parties to the Credit Agreement, dated as of December 19, 2002
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among SCIENTIFIC GAMES CORPORATION, a Delaware corporation (the
"Borrower"), the several banks, financial institutions and other entities from
time to time parties to the Credit Agreement (the "Lenders"), BEAR, STEARNS &
CO. INC., as sole lead arranger and sole bookrunner (in such capacity, the "Lead
Arranger"), BNY CAPITAL MARKETS, INC., as co-arranger (in such capacity, the
"Co-Arranger"), BEAR STEARNS CORPORATE LENDING INC., as syndication agent (in
such capacity, the "Syndication Agent"), and the Administrative Agent.

W I T N E S S E T H:

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

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

        WHEREAS, the proceeds of the extensions of credit under the Credit
Agreement will be used in part to enable the Borrower to make valuable transfers
to one or more of the other Grantors in connection with the operation of their
respective businesses;

        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 Administrative Agent for the ratable benefit of the Agents and the Lenders;

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

SECTION 1.    DEFINED TERMS

        1.1.    Definitions.    (a) Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given to
them in the Credit Agreement, and the following terms are used herein as defined
in the New York UCC: Accounts, Certificated Security, Chattel Paper, Commercial
Tort Claims, Documents, Equipment, Farm Products, General Intangibles, Goods,
Instruments, Inventory, Letter-of-Credit Rights and Supporting Obligations.

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

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

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

--------------------------------------------------------------------------------

to the Agents or to the Lenders that are required to be paid by the Borrower
pursuant to the terms of any of the foregoing agreements).

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

        "Borrower Obligations": the collective reference to (i) the Borrower
Credit Agreement Obligations and (ii) the Borrower Hedge Agreement Obligations,
but only to the extent that, and only so long as, the Borrower Credit Agreement
Obligations are secured and guaranteed pursuant hereto.

        "Collateral": as defined in Section 3.

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

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

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

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

        "Foreign Subsidiary Voting Stock": the voting Capital Stock of any
Foreign Subsidiary.

        "Guarantor Obligations": with respect to any Guarantor, all obligations
and liabilities of such Guarantor which may arise under or in connection with
this Agreement (including, without limitation, Section 2) or any other Loan
Document to which such Guarantor is a party, in each case whether on account of
guarantee obligations, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Agents or to the Lenders that are required to be paid by such
Guarantor pursuant to the terms of this Agreement or any other Loan Document).

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

        "Intercompany Note": any promissory note evidencing loans made by any
Grantor to any of its Subsidiaries.

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

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

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

2

--------------------------------------------------------------------------------

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

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

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

        "Pledged Notes": all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes issued in
connection with extensions of trade credit by any Grantor in the ordinary course
of business).

        "Pledged Stock": the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options, interests or rights
of any nature whatsoever in respect of the Capital Stock of any Person that may
be issued or granted to, or held by, any Grantor while this Agreement is in
effect; provided that in no event shall more than 65% of the total outstanding
Foreign Subsidiary Voting Stock of any Foreign Subsidiary directly owned by a
Grantor be required to be pledged hereunder.

        "Proceeds": all "proceeds" as such term is defined in
Section 9-102(a)(64) of the New York UCC and, in any event, shall include,
without limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

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

        "Securities Act": the Securities Act of 1933, as amended.

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

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

        "Vehicles": all cars, trucks, trailers, construction, special purpose
and other vehicles and equipment covered by a certificate of title of any state
or of the United States of America and all appurtenants to any of the foregoing.

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

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

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

        (d)  Where the context requires, any affiliate of a Lender which is a
party to a Specified Hedge Agreement shall be deemed to be a "Lender" for
purposes of this Agreement.

3

--------------------------------------------------------------------------------

SECTION 2.    GUARANTEE

        2.1.    Guarantee.    (a) Each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees to the Administrative
Agent, for the ratable benefit of the Agents and the Lenders and their
respective permitted 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)  Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under the
other Loan Documents shall in no event exceed the amount which can be guaranteed
by such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

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

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

        (e)  No payment made by the Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by any Agent or any
Lender 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 are paid in full, no Letter
of Credit shall be outstanding and the Commitments are terminated.

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

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

        2.4.    Amendments, etc. with respect to the Borrower
Obligations.    Each Guarantor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against any Guarantor and without notice

4

--------------------------------------------------------------------------------

to or further assent by any Guarantor, any demand for payment of any of the
Borrower Obligations made by any Agent or any Lender may be rescinded by such
Agent or such Lender and any of the Borrower Obligations continued, and the
Borrower Obligations, or the liability of any other Person upon or for any part
thereof, or any collateral security or guarantee therefor or right of offset
with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or
released by any Agent or any Lender, 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, and
any collateral security, guarantee or right of offset at any time held by any
Agent or any Lender for the payment of the Borrower Obligations may be sold,
exchanged, waived, surrendered or released. No Agent or Lender 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.

        2.5.    Guarantee Absolute and Unconditional.    Each Guarantor to the
extent permitted by applicable law, 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 Agent or any Lender 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 Agents
and the Lenders, 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, to the extent permitted by applicable law, 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 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 Agent or any Lender, (b) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be
asserted by the Borrower or any other Person against any Agent or any Lender, 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 Agent or any Lender 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 Agent or any Lender to
make any such demand, to pursue such other rights or remedies or to collect any
payments from the Borrower, any other Guarantor or any other Person or to
realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrower, any other Guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of any Agent or any Lender against any Guarantor.
For the purposes hereof "demand" shall include the commencement and continuance
of any legal proceedings.

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

        2.7.    Payments.    Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the Funding Office.

5

--------------------------------------------------------------------------------

SECTION 3.    GRANT OF SECURITY INTEREST

        Each Grantor hereby assigns and transfers to the Administrative Agent,
and hereby grants to the Administrative Agent, for the ratable benefit of the
Agents and the Lenders (and any affiliates of any Lender to which Borrower Hedge
Agreement Obligations are owing), a security interest in, all of the following
property now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title
or interest (collectively, the "Collateral"), as collateral security for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of such Grantor's Obligations:

        (a)  all Accounts;

        (b)  all Chattel Paper;

        (c)  all Deposit Accounts;

        (d)  all Documents;

        (e)  all Equipment, other than Vehicles;

        (f)    all General Intangibles;

        (g)  all Instruments;

        (h)  all Intellectual Property;

        (i)    all Inventory;

        (j)    all Investment Property;

        (k)  all Letter-of-Credit Rights;

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

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

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

provided, however, that notwithstanding any of the other provisions set forth in
this Section 3, this Agreement shall not constitute a grant of a security
interest in any property to the extent that such grant of a security interest is
prohibited by any Requirements of Law of a Governmental Authority, requires a
consent not obtained of any Governmental Authority pursuant to such Requirement
of Law or is prohibited by, or constitutes a breach or default under or results
in the termination of or requires any consent not obtained under, any contract,
license, agreement, instrument or other document evidencing or giving rise to
such property or, in the case of any Investment Property, Pledged Stock or
Pledged Note, any applicable shareholder or similar agreement, except to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring such
consent is ineffective under applicable law.

SECTION 4.    REPRESENTATIONS AND WARRANTIES

        To induce the Agents 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 each Agent
and each Lender that:

        4.1.    Representations in Credit Agreement.    In the case of each
Guarantor, the representations and warranties set forth in Section 6 of the
Credit Agreement as they relate to such Guarantor or to the Loan Documents to
which such Guarantor is a party, each of which is hereby incorporated herein by
reference, are true and correct, and each Agent and each Lender shall be
entitled to rely on each of them as if they were fully set forth herein,
provided that each reference in each such representation and warranty to the
Borrower's knowledge shall, for the purposes of this Section 4.1, be deemed to
be a reference to such Guarantor's knowledge.

6

--------------------------------------------------------------------------------

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

        4.3.    Perfected Liens.    The security interests granted pursuant to
this Agreement (a) upon completion of the filings and other actions specified on
Schedule 3 (which, in the case of all filings and other documents referred to on
said Schedule, have been delivered to the Administrative Agent in completed and
duly executed form) will constitute valid perfected security interests in all of
the Collateral in favor of the Administrative Agent, for the ratable benefit of
the Agents and the Lenders, as collateral security for such Grantor's
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except for Liens permitted by the Credit Agreement.

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

        4.5.    Inventory and Equipment.    On the date hereof, the Inventory
and the Equipment (other than mobile goods) are kept at the locations listed on
Schedule 5.

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

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

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

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

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

        4.8.    Receivables.    (a) Each Grantor shall deliver to the
Administrative Agent each Instrument or Chattel Paper in an amount in excess of
$100,000 payable to such Grantor under or in connection with any Receivable.

        (b)  Except as set forth on Schedule 7, none of the obligors on any
Receivables is a Governmental Authority.

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

        4.9.    Intellectual Property.    (a) Schedule 6 lists all registered
Copyrights, registered Trademarks, Patents and applications to register any of
the foregoing owned by such Grantor in its own name on the date hereof, and all
Copyright Licenses, Trademark Licenses and Patent Licenses.

        (b)  On the date hereof, all material Intellectual Property of such
Grantor, including without limitation the Intellectual Property described on
Schedule 6, is valid, subsisting, unexpired and enforceable, has not been
abandoned and does not infringe the intellectual property rights of any other
Person.

7

--------------------------------------------------------------------------------

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

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

        (e)  Except as set forth on Schedule 6, no action or proceeding is
pending, or, to the knowledge of such Grantor, threatened, on the date hereof
(i) seeking to limit, cancel or question the validity of any Intellectual
Property or such Grantor's ownership interest therein or (ii) which, if
adversely determined, would have a material adverse effect on the value of any
Intellectual Property.

SECTION 5.    COVENANTS

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

        5.1.    Covenants in Credit Agreement.    In the case of each Guarantor,
such Guarantor shall take, or shall refrain from taking, as the case may be,
each action that is necessary to be taken or not taken under Sections 7, 8 and 9
of the Credit Agreement, as the case may be, so that no Default or Event of
Default is caused by the failure to take such action or to refrain from taking
such action by such Guarantor or any of its Subsidiaries.

        5.2.    Delivery of Instruments and Chattel Paper.    If any amount in
excess of $100,000 payable under or in connection with any of the Collateral
shall be or become evidenced by any Instrument, Certificated Security or Chattel
Paper, such Instrument, Certificated Security or Chattel Paper shall be promptly
delivered to the Administrative Agent, duly indorsed in a manner reasonably
satisfactory to the Administrative Agent, to be held as Collateral pursuant to
this Agreement.

        5.3.    Maintenance of Insurance.    (a) Such Grantor will maintain,
with financially sound and reputable companies, insurance policies in accordance
with Section 8.5 of the Credit Agreement.

        (b)  All such insurance shall (i) provide that no cancellation, material
reduction in amount or material change in coverage thereof shall be effective
until at least 30 days after receipt by the Administrative Agent of written
notice thereof, (ii) name the Administrative Agent as insured party or loss
payee, (iii) if reasonably requested by the Administrative Agent, include a
breach of warranty clause and (iv) be reasonably satisfactory in all other
respects to the Administrative Agent.

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

        5.4.    Payment of Obligations.    Such Grantor will pay and discharge
or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all material taxes, assessments and governmental charges or
levies imposed upon the Collateral or in respect of income or profits therefrom,
as well as all material claims of any kind (including, without limitation,
claims for labor, materials and supplies) against or with respect to the
Collateral, except that no such charge need be paid if the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on
the books of such Grantor.

        5.5.    Maintenance of Perfected Security Interest; Further
Documentation.    (a) Such Grantor shall maintain the security interest created
by this Agreement as a perfected security interest having at least the priority
described in Section 4.3 and shall defend such security interest against the
claims and demands of all Persons whomsoever, subject to the rights of such
Grantor under the Loan Documents to Dispose of the Collateral.

        (b)  Such Grantor will furnish to the Administrative Agent and the
Lenders from time to time statements and schedules further identifying and
describing the assets and property of such Grantor and such

8

--------------------------------------------------------------------------------

other reports in connection therewith, in each case as the Administrative Agent
may reasonably request, all in reasonable detail.

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

        5.6.    Changes in Locations, Name, etc.    Such Grantor will not,
except upon 15 days' prior written notice to the Administrative Agent and
delivery to the Administrative Agent of (a) all additional financing statements
and other documents reasonably requested by the Administrative Agent as
necessary to maintain the validity, perfection and priority of the security
interests provided for herein and (b) if applicable, a written supplement to
Schedule 5 showing any additional location at which Inventory or Equipment shall
be kept:

          (i)  change its jurisdiction of organization or the location of its
chief executive office or sole place of business or principal residence from
that referred to in Section 4.4; or

        (ii)  change its name.

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

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

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

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

9

--------------------------------------------------------------------------------

distribution, if treated as a Disposition of the relevant Issuer, would be
permitted by the Credit Agreement and (ii) the proceeds thereof are applied
toward prepayment of Loans and reduction of Commitments to the extent required
by the Credit Agreement.

        (b)  Without the prior written consent of the Administrative Agent, such
Grantor will not (i) vote to enable, or take any other action to permit, any
Issuer to issue any stock or other equity securities of any nature or to issue
any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any Issuer,
(ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any
option with respect to, the Investment Property or Proceeds thereof (except
pursuant to a transaction 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 (iv) enter into any agreement or undertaking restricting the
right or ability of such Grantor or the Administrative Agent to sell, assign or
transfer any of the Investment Property or Proceeds thereof (except pursuant to
a transaction expressly permitted by the Credit Agreement).

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

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

        (b)  Such Grantor will deliver to the Administrative Agent a copy of
each material written demand, notice or document received by it that questions
the validity or enforceability of more than 5% of the aggregate amount of the
then outstanding Receivables.

        5.10.    Intellectual Property.    (a) Such Grantor (either itself or
through licensees) will (i) continue to use each material Trademark on and with
respect to each and every product and service applicable to its then current
line in order to maintain such Trademark in full force free from any claim of
abandonment for non-use, provided that if a product or service line is
discontinued, use of a Trademark with respect to such product or service line
may be discontinued, (ii) maintain at least the current quality of products and
services offered under such Trademark, (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
Administrative Agent, for the ratable benefit of the Agents and the Lenders,
shall obtain a perfected security interest in such mark pursuant to this
Agreement, and (v) not knowingly (and not knowingly permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or impaired in any way, except as provided in
Section 5.10(a)(i) above.

        (b)  Such Grantor (either itself or through licensees) will not
knowingly do any act, or knowingly omit to do any act, whereby any material
Patent may become forfeited, abandoned or dedicated to the public.

        (c)  Such Grantor (either itself or through licensees) will not
knowingly (and will not knowingly permit any licensee or sublicensee thereof to)
do any act or knowingly omit to do any act whereby any material portion of the
Copyrights may become invalidated or otherwise impaired. Such Grantor will not
knowingly (either itself or through licensees) do any act whereby any material
portion of the Copyrights may fall into the public domain.

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

10

--------------------------------------------------------------------------------

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

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

        (g)  Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency 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 the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

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

SECTION 6.    REMEDIAL PROVISIONS

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

        (b)  The Administrative Agent hereby authorizes each Grantor to collect
such Grantor's Receivables and the Administrative 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 Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent if required,
in a Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until so turned
over, shall be held by such Grantor on behalf of the Administrative Agent and
the Lenders, 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.

11

--------------------------------------------------------------------------------

        (c)  Upon the occurrence and during the continuance of an Event of
Default, at the Administrative Agent's request, each Grantor shall deliver to
the Administrative Agent all original (where practicable, otherwise copies will
be delivered) and other documents evidencing, and relating to, the agreements
and transactions which gave rise to the Receivables, including, without
limitation, all original orders, invoices and shipping receipts.

        6.2.    Communications with Obligors; Grantors Remain Liable.    (a) The
Administrative Agent in its own name or in the name of others may at any time
after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables to verify with them to the
Administrative Agent's reasonable satisfaction the existence, amount and terms
of any Receivables.

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

        (c)  Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each Receivables to observe and perform in all material
respects 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 Agent or Lender shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) by reason of or arising out of
this Agreement or the receipt by any Agent or any Lender of any payment relating
thereto, nor shall any Agent or any Lender be obligated in any manner to perform
any of the obligations of any Grantor under or pursuant to any Receivable (or
any agreement giving rise thereto), to make any payment, to make any inquiry as
to the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled
at any time or times.

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

        (b)  If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the
Obligations in the order set forth in Section 6.5, and (ii) any or all of the
Investment Property shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders of the relevant Issuer or
Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.

        (c)  Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with any
instruction received by it from the Administrative Agent in writing that
(x) states that an Event of Default has occurred and is continuing and (y) is
otherwise in

12

--------------------------------------------------------------------------------

accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall
be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the Administrative Agent.

        6.4.    Proceeds to be Turned Over to Administrative Agent.    In
addition to the rights of the Agents and the Lenders specified in Section 6.1
with respect to payments of Receivables, if an Event of Default shall occur and
be continuing, all Proceeds received by any Grantor consisting of cash, checks
and other near-cash items shall be held by such Grantor on behalf of the Agents
and the Lenders, segregated from other funds of such Grantor, and shall,
forthwith upon receipt by such Grantor, be turned over to the Administrative
Agent in the exact form received by such Grantor (duly indorsed by such Grantor
to the Administrative Agent, if required). All Proceeds received by the
Administrative Agent hereunder shall be held by the Administrative Agent in a
Collateral Account maintained under its sole dominion and control. All Proceeds
while held by the Administrative Agent in a Collateral Account (or by such
Grantor on behalf of the Administrative Agent and the Lenders) shall continue to
be held as collateral security for all the Obligations and shall not constitute
payment thereof until applied as provided in Section 6.5.

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

        First, to pay incurred and unpaid fees, costs and expenses of the
Administrative Agent under the Loan Documents, including, without limitation,
the reasonable fees and expenses of counsel to the Administrative Agent;

        Second, to the Administrative Agent, for application by it towards
payment of amounts remaining unpaid in respect of the Obligations, pro rata
among the Agents and the Lenders according to the amounts of the Obligations
remaining unpaid to the Agents and the Lenders (including depositing in a cash
collateral account opened by the Administrative Agent, an amount equal to the
aggregate amount of L/C Obligations at the time of application of Proceeds
pursuant to this Section 6.5 and with respect to which the Borrower has not
previously made a deposit into a cash collateral account pursuant to Section 10
of the Credit Agreement); and

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

        6.6.    Code and Other Remedies.    If an Event of Default shall occur
and be continuing, the Administrative Agent, on behalf of the Lenders, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the New York UCC or any other applicable law. Without limiting the generality of
the foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived to the extent permitted by applicable law), may in such
circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker's
board or office of any Agent or any Lender or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may reasonably deem
best, for cash or on credit or for future delivery without assumption of any
credit risk. Any Agent or any Lender shall have the right upon any such public
sale or sales, and, to the extent permitted by law, upon any such private sale
or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in any Grantor, which right or equity is
hereby waived and released. Each Grantor further agrees, at the Administrative
Agent's request, to assemble the Collateral and make it available to the
Administrative Agent at places which the Administrative Agent shall reasonably
select, whether at such Grantor's premises or elsewhere. The Administrative
Agent shall apply the net proceeds of

13

--------------------------------------------------------------------------------

any action taken by it pursuant to this Section 6.6, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of the Administrative Agent and the
Lenders hereunder, including, without limitation, reasonable attorneys' fees and
disbursements, to the payment in whole or in part of the Obligations, in such
order as the Administrative Agent may elect, and only after such application and
after the payment by the Administrative Agent of any other amount required by
any provision of law, including, without limitation, Section 9-615(a)(3) of the
New York UCC, need the Administrative Agent account for the surplus, if any, to
any Grantor. To the extent permitted by applicable law, each Grantor waives all
claims, damages and demands it may acquire against any Agent or any Lender
arising out of the exercise by them of any rights hereunder. If any notice of a
proposed sale or other disposition of Collateral shall be required by law, such
notice shall be deemed reasonable and proper if given at least 10 days before
such sale or other disposition.

        6.7.    Registration Rights.    (a) If the Administrative Agent shall
determine to exercise its right to sell any or all of the Pledged Stock pursuant
to Section 6.6, and if in the opinion of the Administrative Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as may
be, in the opinion of the Administrative Agent, necessary or advisable to
register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of
the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to
cause such Issuer to comply with the provisions of the securities or "Blue Sky"
laws of any and all jurisdictions which the Administrative Agent shall designate
and to make available to its security holders, as soon as practicable, an
earnings statement (which need not be audited) which will satisfy the provisions
of Section 11(a) of the Securities Act.

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

14

--------------------------------------------------------------------------------

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

        6.8    Deficiency.    Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations.

SECTION 7.    THE ADMINISTRATIVE AGENT

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

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

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

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

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

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

15

--------------------------------------------------------------------------------

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

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

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

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

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

        7.2.    Duty of Administrative Agent.    The Administrative Agent's sole
duty with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. Neither the
Administrative Agent, any Lender nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof, except if such
failure or delay results from their own gross negligence or willful misconduct.
The powers conferred on the Agents and the Lenders hereunder are solely to
protect the Agents' and the Lenders' interests in the Collateral and shall not
impose any duty upon any Agent or any Lender to exercise any such powers. The
Agents and the Lenders shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of
their officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

        7.3.    Execution of Financing Statements.    Pursuant to any applicable
law, each Grantor authorizes the Administrative Agent to file or record
financing statements and other filing or recording documents or instruments with
respect to the Collateral without the signature of such Grantor in such form and
in such offices as the Administrative Agent determines appropriate to perfect
the security interests of the Administrative Agent under this Agreement. Each
Grantor authorizes the Administrative Agent to use

16

--------------------------------------------------------------------------------

the collateral description "all personal property" in any such financing
statements. Each Grantor hereby ratifies and authorizes the filing by the
Administrative Agent of any financing statement with respect to the Collateral
made prior to the date hereof.

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

SECTION 8.    MISCELLANEOUS

        8.1.    Amendments in Writing.    None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except
in accordance with Section 12.1 of the Credit Agreement.

        8.2.    Notices.    All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 12.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

        8.3.    No Waiver by Course of Conduct; Cumulative Remedies.    No Agent
or Lender shall by any act (except by a written instrument pursuant to
Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy hereunder or to have acquiesced in any Default or Event of
Default. No failure to exercise, nor any delay in exercising, on the part of any
Agent or any Lender, 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 Agent or any Lender of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Administrative Agent or such Lender would
otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

        8.4.    Enforcement Expenses; Indemnification.    (a) Each Guarantor
agrees to pay, or reimburse each Lender and Agent for all its costs and expenses
incurred in collecting against such Guarantor under the guarantee contained in
Section 2 or otherwise enforcing or preserving any rights under this Agreement
and the other Loan Documents to which such Guarantor is a party, including,
without limitation, the fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to each Lender and of counsel
to the Administrative Agent.

        (b)  Each Guarantor agrees to pay, and to save the Agents and the
Lenders harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all stamp, excise, sales or other taxes which
may be payable or determined to be payable with respect to any of the Collateral
or in connection with any of the transactions contemplated by this Agreement.

        (c)  Each Guarantor agrees to pay, and to save the Agents and the
Lenders 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,

17

--------------------------------------------------------------------------------

performance and administration of this Agreement to the extent the Borrower
would be required to do so pursuant to Section 12.5 of the Credit Agreement.

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

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

        8.6.    Set-Off.    Each Grantor hereby irrevocably authorizes each
Agent and each Lender at any time and from time to time while an Event of
Default shall have occurred and be continuing, without notice to such Grantor or
any other Grantor, any such notice being expressly waived by each Grantor to the
extent permitted by applicable law, 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 Agent or such Lender to or for the
credit or the account of such Grantor, or any part thereof in such amounts as
such Agent or such Lender may elect, against and on account of the obligations
and liabilities of such Grantor to such Agent or such Lender hereunder and
claims of every nature and description of such Agent or such Lender against such
Grantor, in any currency, arising hereunder, under the Credit Agreement or any
other Loan Document to which it is a party, as such Agent or such Lender may
elect, whether or not any Agent or any Lender has made any demand for payment
and although such obligations, liabilities and claims may be contingent or
unmatured. Each Agent and each Lender shall notify such Grantor promptly of any
such set-off and the application made by such Agent or such Lender of the
proceeds thereof, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each Agent and each
Lender under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which such Agent or
such Lender may have.

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

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

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

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

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

18

--------------------------------------------------------------------------------

        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 Schedule 1 or at such other address of which the
Administrative Agent shall have been notified pursuant hereto;

        (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.    Acknowledgements.    Each Grantor hereby acknowledges that:

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

        (b)  no Agent or Lender 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 Agents and Lenders, 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
Lenders or among the Grantors and the Lenders.

        8.14.    Additional Grantors.    Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 8.9 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex I hereto.

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

        (b)  If any of the Collateral shall be sold, transferred or otherwise
Disposed of by any Grantor in a transaction permitted by the Credit Agreement,
then the Administrative Agent, at the request and sole

19

--------------------------------------------------------------------------------

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 Capital Stock of such Guarantor shall be sold, transferred or
otherwise Disposed of in a transaction permitted by the Credit Agreement;
provided that the Borrower shall have delivered to the Administrative Agent at
least five Business Days prior to the date of the proposed release, a written
request for release identifying the relevant Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof, together
with a certification by the Borrower stating that such transaction is in
compliance with the Credit Agreement and the other Loan Documents.

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

20

--------------------------------------------------------------------------------

        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.

BORROWER:             SCIENTIFIC GAMES CORPORATION
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
GUARANTORS:
 
 
 
      AUTOTOTE DOMINICANA INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
AUTOTOTE ENTERPRISES, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
AUTOTOTE GAMING, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
AUTOTOTE INTERACTIVE, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
AUTOTOTE INTERNATIONAL, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
AUTOTOTE KENO CORPORATION
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
 
 
 

21

--------------------------------------------------------------------------------

 
 
AUTOTOTE SYSTEMS, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
BLUE SUEDE ACQUISITION CORP.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES ACQUISITION, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES FINANCE CORPORATION
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES (GREECE), INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES HOLDINGS CORP.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES INTERNATIONAL, INC.
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
SCIENTIFIC GAMES MANAGEMENT CORPORATION
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:
 
 
 
 
 

22

--------------------------------------------------------------------------------

 
 
SCIENTIFIC GAMES ROYALTY CORPORATION
 
 
By:
 

--------------------------------------------------------------------------------

Name:
Title:

23

--------------------------------------------------------------------------------

Schedule 1

NOTICE ADDRESSES OF GUARANTORS

--------------------------------------------------------------------------------

Schedule 2

DESCRIPTION OF INVESTMENT PROPERTY

Pledged Stock:

Issuer

--------------------------------------------------------------------------------

  Class of Stock

--------------------------------------------------------------------------------

  Stock Certificate No.

--------------------------------------------------------------------------------

  Number of Shares

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Pledged Notes:

Issuer

--------------------------------------------------------------------------------

  Payee

--------------------------------------------------------------------------------

   
  Principal Amount

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

   

--------------------------------------------------------------------------------

Schedule 3

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

At Closing:

Uniform Commercial Code Filings
[List each office where a financing statement is to be filed]*

Patent and Trademark Filings
[List all filings]

Actions with Regard to Pledged Stock**

Other Actions
[Describe other actions to be taken]

Post-Closing:

--------------------------------------------------------------------------------

*Note that perfection of security interests in patents and trademarks requires
filings under the UCC in the jurisdictions where filings would be made for
general intangibles, as well as filings in the U.S Copyright Office and the U.S.
Patent & Trademark Office.

**    If the interest of a Grantor in Pledged Stock appears on the books of a
financial intermediary, a control agreement as described in Section 8-106 of the
New York UCC will be required.

--------------------------------------------------------------------------------

Schedule 4

LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

Grantor

--------------------------------------------------------------------------------

  Jurisdiction of
Organization

--------------------------------------------------------------------------------

  Identification
Number

--------------------------------------------------------------------------------

  Location of Chief
Executive Office

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Schedule 5

LOCATIONS OF INVENTORY AND EQUIPMENT

Grantor

--------------------------------------------------------------------------------

  Locations

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Schedule 6

INTELLECTUAL PROPERTY

I.Copyrights and Copyright Licenses:

II.Patents and Patent Licenses:

III.Trademarks and Trademark Licenses:

--------------------------------------------------------------------------------

Schedule 7

GOVERNMENTAL AUTHORITIES

--------------------------------------------------------------------------------

Annex I
to
Guarantee and Collateral Agreement

        ASSUMPTION AGREEMENT, dated as of                        ,
200            , made by                        ,
a                        corporation (the "Additional Grantor"), in favor of The
Bank of New York, as administrative agent (in such capacity, the "Administrative
Agent") for the banks and other financial institutions (the "Lenders") parties
to the Credit Agreement referred to below. All capitalized terms not defined
herein shall have the meaning ascribed to them in such Credit Agreement.

W I T N E S S E T H:

        WHEREAS, Scientific Games Corporation (the "Borrower"), the Lenders, the
Administrative Agent and other entities party thereto have entered into a Credit
Agreement, dated as of December 19, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement");

        WHEREAS, in connection with the Credit Agreement, the Borrower and
certain of its Affiliates (other than the Additional Grantor) have entered into
the Guarantee and Collateral Agreement, dated as of December 19, 2002 (as
amended, supplemented or otherwise modified from time to time, the "Guarantee
and Collateral Agreement") in favor of the Administrative Agent for the benefit
of the Agents and the Lenders;

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

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

        NOW, THEREFORE, IT IS AGREED:

        1.    Guarantee and Collateral Agreement.    By executing and delivering
this Assumption Agreement, the Additional Grantor, as provided in Section 8.14
of the Guarantee and Collateral Agreement, hereby becomes a party to the
Guarantee and Collateral Agreement as a Grantor thereunder with the same force
and effect as if originally named therein as a Grantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Grantor thereunder. The information set forth in Annex 1-A
hereto is hereby added to the information set forth in
Schedules                        * to the Guarantee and Collateral Agreement.
The Additional Grantor hereby represents and warrants that each of the
representations and warranties contained in Section 4 of the Guarantee and
Collateral Agreement is true and correct on and as of the date hereof (after
giving effect to this Assumption Agreement) as if made on and as of such date.

--------------------------------------------------------------------------------

*Refer to each Schedule which needs to be supplemented.

--------------------------------------------------------------------------------

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

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

    [ADDITIONAL GRANTOR]
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

2

--------------------------------------------------------------------------------

Annex II
to
Guarantee and Collateral Agreement

ACKNOWLEDGEMENT AND CONSENT

        The undersigned hereby acknowledges receipt of a copy of the Guarantee
and Collateral Agreement dated as of December 19, 2002 (the "Agreement"), made
by the Grantors parties thereto for the benefit of The Bank of New York, as
Administrative Agent. The undersigned agrees for the benefit of the Agents and
the Lenders as follows:

        1.    The undersigned will be bound by the terms of the Agreement and
will comply with such terms insofar as such terms are applicable to the
undersigned.

        2.    The undersigned will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.8(a) of
the Agreement.

        3.    The terms of Sections 6.3(a) and 6.7 of the Agreement shall apply
to the undersigned, mutatis mutandis, with respect to all actions that may be
required of the undersigned pursuant to Section 6.3(a) or 6.7 of the Agreement.

    [NAME OF ISSUER]
 
 
By
       

--------------------------------------------------------------------------------

 
 
Title      

--------------------------------------------------------------------------------

 
 
Address for Notices:
 
 
 

--------------------------------------------------------------------------------

 
 
 

--------------------------------------------------------------------------------

 
 
Fax:      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT B TO
CREDIT AGREEMENT

FORM OF COMPLIANCE CERTIFICATE

        This Compliance Certificate is delivered to you pursuant to Subsection
8.2(b) of the Credit Agreement, dated as of December 19, 2002 (as amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
among SCIENTIFIC GAMES CORPORATION, a Delaware corporation (the "Borrower"), the
several banks, financial institutions and other entities from time to time
parties thereto (the "Lenders"), BEAR, STEARNS & CO. INC., as sole lead arranger
and sole bookrunner (in such capacity, the "Lead Arranger"), BNY CAPITAL
MARKETS, INC., as co-arranger (in such capacity, the "Co-Arranger"), BEAR
STEARNS CORPORATE LENDING INC., as syndication agent (in such capacity, the
"Syndication Agent"), and THE BANK OF NEW YORK, as administrative agent (in such
capacity, the "Administrative Agent"). Terms defined in the Credit Agreement and
not otherwise defined herein are used herein with the meanings so defined.

        1.    I am the duly elected, qualified and acting Chief Financial
Officer of the Borrower.

        2.    I have reviewed and am familiar with the contents of this
Certificate.

        3.    I have reviewed the terms of the Credit Agreement and the other
Loan Documents and have made or caused to be made under my supervision, a review
in reasonable detail of the transactions and condition of the Borrower during
the accounting period covered by the financial statements attached hereto as
Attachment 1 (the "Financial Statements"). Such review did not disclose the
existence during or at the end of the accounting period covered by the Financial
Statements, and I have no knowledge of the existence, as of the date of this
Certificate, of any condition or event which constitutes a Default or Event of
Default.

        4.    Attached hereto as Attachment 2 are the computations showing
compliance with the covenants set forth in Section 9.1, 9.2, 9.3, 9.5, 9.6, 9.7
and 9.8 of the Credit Agreement.

        IN WITNESS WHEREOF, I execute this Certificate on behalf of the Borrower
this            day of            , 200    .

    SCIENTIFIC GAMES CORPORATION
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title: Chief Financial Officer

--------------------------------------------------------------------------------

Attachment 1
to Exhibit B

[Attach Financial Statements]

--------------------------------------------------------------------------------

Attachment 2
to Exhibit B

        The information described herein is as of            , 200            ,
and pertains to the period from                        , 20            to
                            , 20    .

[Set forth Covenant Calculations]

--------------------------------------------------------------------------------

EXHIBIT C TO
CREDIT AGREEMENT

FORM OF CLOSING CERTIFICATE

        Pursuant to subsection 7.1(g) of the Credit Agreement dated as of
December 19, 2002 (the "Credit Agreement"; terms defined therein being used
herein as therein defined), among SCIENTIFIC GAMES CORPORATION, a Delaware
corporation (the "Borrower"), the several banks, financial institutions and
other entities from time to time parties thereto (the "Lenders"), BEAR,
STEARNS & CO. INC., as sole lead arranger and sole bookrunner (in such capacity,
the "Lead Arranger"), BNY CAPITAL MARKETS, INC., as co-arranger (in such
capacity, the "Co-Arranger"), BEAR STEARNS CORPORATE LENDING INC., as
syndication agent (in such capacity, the "Syndication Agent"), and THE BANK OF
NEW YORK, as administrative agent (in such capacity, the "Administrative
Agent"), the undersigned [INSERT TITLE OF OFFICER] of [INSERT NAME OF COMPANY]
(the "Company") hereby certifies, in his capacity as [INSERT TITLE OF OFFICER]
of the Company and not individually, as follows:

        1.    The representations and warranties of the Company set forth in
each of the Loan Documents to which it is a party or which are contained in any
certificate furnished by or on behalf of the Company pursuant to any of the Loan
Documents to which it is a party are true and correct in all material respects
on and as of the date hereof with the same effect as if made on the date hereof,
except for representations and warranties expressly stated to relate to a
specific earlier date, in which case such representations and warranties were
true and correct in all material respects as of such earlier date.

        2.                            is the duly elected and qualified
[Assistant] Secretary of the Company and the signature set forth for such
officer below is such officer's true and genuine signature.

        3.    No Default or Event of Default has occurred and is continuing as
of the date hereof or after giving effect to the Loans to be made on the date
hereof. [Borrower only]

        4.    The conditions precedent set forth in Section 7.1 of the Credit
Agreement were satisfied as of the Closing Date. [Borrower only]

        The undersigned [Assistant] Secretary of the Company certifies on behalf
of the Company as follows:

        1.    There are no liquidation or dissolution proceedings pending or to
my knowledge threatened against the Company, nor has any other event occurred
adversely affecting or threatening the continued corporate existence of the
Company.

        2.    The Company is a [corporation] duly [incorporated], validly
existing and in good standing under the laws of the jurisdiction of its
organization.

        3.    Attached hereto as Annex 1 is a true and complete copy of
resolutions duly adopted by the Board of Directors of the Company on the dates
described therein; such resolutions have not in any way been amended, modified,
revoked or rescinded, have been in full force and effect since their adoption to
and including the date hereof and are now in full force and effect and are the
only corporate proceedings of the Company now in force relating to or affecting
the matters referred to therein.

        4.    Attached hereto as Annex 2 is a true and complete copy of the
[By-Laws] [other governance document] of the Company as in effect on the date
hereof.

        5.    Attached hereto as Annex 3 is a true and complete copy of the
[Certificate of Incorporation] [other charter document] of the Company as in
effect on the date hereof, and such certificate has not been amended, repealed,
modified or restated.

--------------------------------------------------------------------------------

        6.    The following persons are now duly elected and qualified officers
of the Company holding the offices indicated next to their respective names
below, and such officers have held such offices with the Company at all times
since the date indicated next to their respective titles to and including the
date hereof, and the signatures appearing opposite their respective names below
are the true and genuine signatures of such officers, and each such officer is
duly authorized to execute and deliver on behalf of the Company each Loan
Document to which it is a party and any certificate or other document to be
delivered by the Company pursuant to the Loan Documents to which it is a party:

Name

--------------------------------------------------------------------------------

  Office

--------------------------------------------------------------------------------

  Date

--------------------------------------------------------------------------------

  Signature

--------------------------------------------------------------------------------

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, the undersigned have hereunto set our names as of
the date set forth below.

--------------------------------------------------------------------------------

Name:
Title:
 

--------------------------------------------------------------------------------

Name:
Title:

Date:                     , 2002

3

--------------------------------------------------------------------------------

ANNEX 1

[Board Resolutions]

--------------------------------------------------------------------------------

ANNEX 2

[By-Laws] [other governance document]

--------------------------------------------------------------------------------

ANNEX 3

[Certificate of Incorporation] [other charter document]

--------------------------------------------------------------------------------

EXHIBIT D-1 TO
CREDIT AGREEMENT

FORM OF NEW LENDER SUPPLEMENT

        SUPPLEMENT, dated                        , to the Credit Agreement,
dated as of December 19, 2002 (as amended supplemented or otherwise modified
from time to time, the "Credit Agreement"), among SCIENTIFIC GAMES CORPORATION,
a Delaware corporation (the "Borrower"), the several banks and other financial
institutions or entities from time to time parties thereto (the "Lenders"),
BEAR, STEARNS & CO. INC., as Lead Arranger, BNY CAPITAL MARKETS, INC., as
Co-Arranger, BEAR STEARNS CORPORATE LENDING INC., as Syndication Agent, and THE
BANK OF NEW YORK, as Administrative Agent, and others.

W I T N E S S E T H:

        WHEREAS, the Credit Agreement provides in Section 4.1 thereof that any
bank, financial institution or other entity, although not originally a party
thereto, may become a party to the Credit Agreement in accordance with the terms
thereof by executing and delivering to the Borrower, the Syndication Agent and
the Administrative Agent a supplement to the Credit Agreement in substantially
the form of this Supplement; and

        WHEREAS, the undersigned was not an original party to the Credit
Agreement but now desires to become a party thereto;

        NOW, THEREFORE, the undersigned hereby agrees as follows:

        1.    The undersigned agrees to be bound by the provisions of the Credit
Agreement, and agrees that it shall, on the date this Supplement is accepted by
the Borrower, the Administrative Agent and the Issuing Lender, become a Lender
for all purposes of the Credit Agreement to the same extent as if originally a
party thereto, with a Revolving Commitment of $                        .

        2.    The undersigned (a) represents and warrants that it is legally
authorized to enter into this Supplement; (b) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements
delivered pursuant to Section 8.1 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Supplement; (c) agrees that it has made and will,
independently and without reliance upon the Administrative Agent, Syndication
Agent or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement or any instrument or
document furnished pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as administrative agent on its behalf
and to exercise such powers and discretion under the Credit Agreement or any
instrument or document furnished pursuant hereto or thereto as are delegated to
the Administrative Agent by the terms thereof, together with such powers as are
incidental thereto; and (e) agrees that it will be bound by the provisions of
the Credit Agreement and will perform in accordance with its terms all the
obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender including, without limitation, if it is organized
under the laws of a jurisdiction outside the United States, its obligation
pursuant to Section 5.10 of the Credit Agreement.

        3.    The undersigned's address for notices for the purposes of the
Credit Agreement is as follows:

        4.    Terms defined in the Credit Agreement shall have their defined
meanings when used herein.

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.

    [INSERT NAME OF LENDER]
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

Accepted this            day of
                        ,            .    
SCIENTIFIC GAMES CORPORATION
 
 
By:
 
 
 
     

--------------------------------------------------------------------------------

Name:
Title:    
Accepted this            day of
                        ,            .
 
 
THE BANK OF NEW YORK, as Administrative Agent
 
 
By:
 
 
 
     

--------------------------------------------------------------------------------

Name:
Title:    
Accepted this            day of
                        ,            .
 
 
 
 

--------------------------------------------------------------------------------

as Issuing Lender
 
 
By:
 
 
 
     

--------------------------------------------------------------------------------

Name:
Title:    

2

--------------------------------------------------------------------------------

EXHIBIT D-2 TO
CREDIT AGREEMENT

FORM OF
COMMITMENT INCREASE SUPPLEMENT

        SUPPLEMENT, dated                        , to the Credit Agreement,
dated as of December 19, 2002 (as amended supplemented or otherwise modified
from time to time, the "Credit Agreement"), among SCIENTIFIC GAMES CORPORATION,
a Delaware corporation (the "Borrower"), the several banks and other financial
institutions or entities from time to time parties thereto (the "Lenders"),
BEAR, STEARNS & CO. INC., as Lead Arranger, BNY CAPITAL MARKETS, INC., as
Co-Arranger, BEAR STEARNS CORPORATE LENDING INC., as Syndication Agent, and THE
BANK OF NEW YORK, as Administrative Agent, and others.

W I T N E S S E T H:

        WHEREAS, pursuant to the provisions of Section 4.1 of the Credit
Agreement, the undersigned may increase the amount of its Revolving Commitment
in accordance with the terms thereof by executing and delivering to the
Borrower, the Syndication Agent and the Administrative Agent a supplement to the
Credit Agreement in substantially the form of this Supplement; and

        WHEREAS, the undersigned now desires to increase the amount of its
Revolving Commitment under the Credit Agreement;

        NOW THEREFORE, the undersigned hereby agrees as follows:

        1.    The undersigned agrees, subject to the terms and conditions of the
Credit Agreement, that on the date this Supplement is accepted by the Borrower
and the Syndication Agent it shall have its Revolving Commitment increased by
$                        , thereby making the amount of its Revolving Commitment
$                        .

        2.    Terms defined in the Credit Agreement shall have their defined
meanings when used herein.

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.

    [INSERT NAME OF LENDER]
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

Accepted this            day of
                        ,            .  
SCIENTIFIC GAMES CORPORATION
 
By:
 
 
     

--------------------------------------------------------------------------------

Name:
Title:  
Accepted this            day of
                        ,            .
 
BEAR STEARNS CORPORATE LENDING INC.,
as Syndication Agent
 
By:
 
 
     

--------------------------------------------------------------------------------

Name:
Title:  

--------------------------------------------------------------------------------

EXHIBIT E TO
CREDIT AGREEMENT

[FORM OF MORTGAGE]

--------------------------------------------------------------------------------

EXHIBIT F TO
CREDIT AGREEMENT

FORM OF
ASSIGNMENT AND ASSUMPTION

        Reference is made to the Credit Agreement, dated as of December 19, 2002
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among SCIENTIFIC GAMES CORPORATION (the "Borrower"), the several
banks and other financial institutions or entities from time to time parties
thereto (the "Lenders"), BEAR, STEARNS & CO. INC., as Lead Arranger, BNY CAPITAL
MARKETS, INC., as Co-Arranger, BEAR STEARNS CORPORATE LENDING INC., as
Syndication Agent, and THE BANK OF NEW YORK, as administrative agent for the
Lenders (in such capacity, the "Administrative Agent"). Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

        The Assignor identified on Schedule l hereto (the "Assignor") and the
Assignee identified on Schedule l hereto (the "Assignee") agree as follows:

        1.    The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date (as defined below), the interest described in Schedule 1 hereto
(the "Assigned Interest") in and to the Assignor's rights and obligations under
the Credit Agreement with respect to those credit facilities contained in the
Credit Agreement as are set forth on Schedule 1 hereto (individually, an
"Assigned Facility"; collectively, the "Assigned Facilities"), in a principal
amount for each Assigned Facility as set forth on Schedule 1 hereto.

        2.    The Assignor (a) makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or with respect to the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement, any other Loan Document or any other instrument or
document furnished pursuant thereto, other than that the Assignor is the legal
and beneficial owner of the interest being assigned and that the Assignor has
not created any adverse claim upon the interest being assigned by it hereunder
and that such interest is free and clear of any such adverse claim and (b) makes
no representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower, any of its Subsidiaries or any other
obligor or the performance or observance by the Borrower, any of its
Subsidiaries or any other obligor of any of their respective obligations under
the Credit Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto.

        3.    The Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Assumption; (b) confirms that it
has received a copy of the Credit Agreement, together with copies of the
financial statements delivered pursuant to Section 8.1 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption; (c) agrees
that it will, independently and without reliance upon the Assignor, the Agents
or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Agreement, the other Loan Documents or any
other instrument or document furnished pursuant hereto or thereto; (d) appoints
and authorizes the Agents to take such action as agent on its behalf and to
exercise such powers and discretion under the Credit Agreement, the other Loan
Documents or any other instrument or document furnished pursuant hereto or
thereto as are delegated to the Agents by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and will perform in accordance with its terms
all the obligations which by the terms of the Credit Agreement are required to
be performed by it as a Lender including, if it is organized under the laws

--------------------------------------------------------------------------------

of a jurisdiction outside the United States, its obligation pursuant to
Section 5.10 of the Credit Agreement.

        4.    The effective date of this Assignment and Assumption shall be the
Effective Date of Assignment described in Schedule 1 hereto (the "Effective
Date"). Following the execution of this Assignment and Assumption, it will be
delivered to the Administrative Agent for acceptance by it and recording by the
Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

        5.    Upon such acceptance and recording, from and after the Effective
Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee whether such amounts have accrued prior to the
Effective Date or accrue subsequent to the Effective Date. The Assignor and the
Assignee shall make all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Effective Date or with respect to
the making of this assignment directly between themselves.

        6.    From and after the Effective Date, (a) the Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment and
Assumption, have the rights and obligations of a Lender thereunder and under the
other Loan Documents and shall be bound by the provisions thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Assumption,
relinquish its rights and be released from its obligations under the Credit
Agreement.

        7.    This Assignment and Assumption shall be governed by and construed
in accordance with the laws of the State of New York.

        IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Assumption to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.

--------------------------------------------------------------------------------

Schedule 1 to
Assignment and Assumption

Name of Assignor:  

--------------------------------------------------------------------------------

Name of Assignee:  

--------------------------------------------------------------------------------

Effective Date of Assignment:  

--------------------------------------------------------------------------------

Credit Facility Assigned

--------------------------------------------------------------------------------

  Principal
Amount Assigned

--------------------------------------------------------------------------------

  Commitment Percentage Assigned1

--------------------------------------------------------------------------------

    $                                       .                              
        %

                  [Name of Assignee]   [Name of Assignor]                   By:
      By:            

--------------------------------------------------------------------------------

Title:      

--------------------------------------------------------------------------------

Title:                   Accepted:   Required Consents (if any):                
  BEAR STEARNS CORPORATE LENDING INC., as
Syndication Agent   SCIENTIFIC GAMES CORPORATION                   By:       By:
       

--------------------------------------------------------------------------------

Title:      

--------------------------------------------------------------------------------

Title:                           THE BANK OF NEW YORK, as
Administrative Agent                           By:                    

--------------------------------------------------------------------------------

            Title:                          

--------------------------------------------------------------------------------

[Issuing Lender][Swingline Lender]   , as                           By:        
           

--------------------------------------------------------------------------------

            Title:

--------------------------------------------------------------------------------

1Calculate the Commitment Percentage that is assigned to at least 15 decimal
places and show as a percentage of the aggregate commitments of all applicable
Lenders.

--------------------------------------------------------------------------------

EXHIBIT G-1 TO
CREDIT AGREEMENT

[FORM OF LEGAL OPINION OF KRAMER LEVIN NAFTALIS & FRANKEL LLP]

--------------------------------------------------------------------------------

EXHIBIT G-2 TO
CREDIT AGREEMENT

[FORM OF LEGAL OPINION OF MARTIN E. SCHLOSS]

--------------------------------------------------------------------------------

EXHIBIT H TO
CREDIT AGREEMENT

FORM OF EXEMPTION CERTIFICATE

        Reference is made to the Credit Agreement, dated as of December 19, 2002
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among SCIENTIFIC GAMES CORPORATION (the "Borrower"), the Lenders
party thereto, BEAR, STEARNS & CO. INC., as Lead Arranger, BNY CAPITAL
MARKETS, INC., as Co-Arranger, BEAR STEARNS CORPORATE LENDING INC., as
Syndication Agent, and THE BANK OF NEW YORK, as administrative agent (in such
capacity, the "Administrative Agent"), and others. Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.
                                     (the "Non-U.S. Lender") is providing this
certificate pursuant to Section 5.10(d) of the Credit Agreement. The Non-U.S.
Lender hereby represents and warrants that:

        1.    The Non-U.S. Lender is the sole record and beneficial owner of the
Loans in respect of which it is providing this certificate.

        2.    The Non-U.S. Lender is not a "bank" for purposes of
Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the
"Code"). In this regard, the Non-U.S. Lender further represents and warrants
that:

(a)the Non-U.S. Lender is not subject to regulatory or other legal requirements
as a bank in any jurisdiction; and

(b)the Non-U.S. Lender has not been treated as a bank for purposes of any tax,
securities law or other filing or submission made to any Governmental Authority,
any application made to a rating agency or qualification for any exemption from
tax, securities law or other legal requirements.

        3.    The Non-U.S. Lender is not a 10-percent shareholder of the
Borrower within the meaning of Section 881(c)(3)(B) of the Code.

        4.    The Non-U.S. Lender is not a controlled foreign corporation
receiving interest from a related person within the meaning of
Section 881(c)(3)(C) of the Code.

        IN WITNESS WHEREOF, the undersigned has duly executed this certificate.

    [NAME OF NON-U.S. LENDER]
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

 
 
Date:
       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT I-1 TO
CREDIT AGREEMENT

FORM OF TERM NOTE

        THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY
MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT
TO THE TERMS OF SUCH CREDIT AGREEMENT.

$                           New York, New York
                , 2002

        FOR VALUE RECEIVED, the undersigned, Scientific Games Corporation, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay
to                        (the "Lender") or its registered assigns at the
Funding Office specified in the Credit Agreement (as hereinafter defined) in
lawful money of the United States and in immediately available funds, the
principal amount of (a)                          DOLLARS ($            ), or, if
less, (b) the unpaid principal amount of the Term Loan of the Lender outstanding
pursuant to Section 2.1 of the Credit Agreement. The principal amount shall be
paid in the amounts and on the dates specified in Section 2.3 of the Credit
Agreement. The Borrower further agrees to pay interest in like money at such
office on the unpaid principal amount hereof from time to time outstanding at
the rates and on the dates specified in Section 5.5 of the Credit Agreement.

        The holder of this Note is authorized to endorse on the schedules
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of the Term
Loan and the date and amount of each payment or prepayment of principal with
respect thereto, each conversion of all or a portion thereof to another Type,
each continuation of all or a portion thereof as the same Type and, in the case
of Eurocurrency Loans, the length of each Interest Period with respect thereto.
Each such endorsement shall constitute prima facie evidence of the accuracy of
the information endorsed. The failure to make any such endorsement or any error
in any such endorsement shall not affect the obligations of the Borrower in
respect of the Term Loan.

        This Note (a) is one of the Term Notes referred to in the Credit
Agreement, dated as of December 19, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower, the
several banks and other financial institutions or entities from time to time
parties thereto, Bear, Stearns & Co. Inc., as Lead Arranger, BNY Capital
Markets, Inc., as Co-Arranger, Bear Stearns Corporate Lending Inc., as
Syndication Agent, and The Bank of New York, as Administrative Agent, (b) is
subject to the provisions of the Credit Agreement and (c) is subject to optional
and mandatory prepayment in whole or in part as provided in the Credit
Agreement. This Note is secured and guaranteed as provided in the Loan
Documents. Reference is hereby made to the Loan Documents for a description of
the properties and assets in which a security interest has been granted, the
nature and extent of the security and the guarantees, the terms and conditions
upon which the security interests and each guarantee were granted and the rights
of the holder of this Note in respect thereof.

--------------------------------------------------------------------------------

        Upon the occurrence and during the continuance of any one or more of the
Events of Default, after notice to the Borrower from the Administrative Agent,
all principal and all accrued interest then remaining unpaid on this Note shall
become, or may be declared to be, immediately due and payable, all as provided
in the Credit Agreement.

        All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

        Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

        NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE
CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN
ACCORDANCE WITH THE ASSIGNMENT AND OTHER PROVISIONS OF SECTION 12.6 OF THE
CREDIT AGREEMENT.

2

--------------------------------------------------------------------------------

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

    SCIENTIFIC GAMES CORPORATION
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

3

--------------------------------------------------------------------------------

Schedule A
to Term Note

LOANS, CONVERSIONS AND REPAYMENTS OF BASE RATE LOANS

--------------------------------------------------------------------------------

Date
 
Amount of
Base Rate
Loans
 
Amount
Converted to
Base Rate Loans
 
Amount of
Principal of
Base Rate Loans Repaid
 
Amount of Base Rate
Loans Converted to
Eurocurrency Loans
  Unpaid
Principal
Balance of
Base Rate Loans
 

Notation
Made By

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Schedule B
to Term Note

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

--------------------------------------------------------------------------------

Date
  Amount of
Eurocurrency
Loans
  Amount
Converted to
Eurocurrency
Loans
  Interest Period
and
E1urocurrency
Rate with
Respect Thereto
  Amount of
Principal of
Eurocurrency
Loans Repaid
  Amount of
Eurocurrency Loans
Converted to
Base Rate Loans
  Unpaid Principal
Balance of
Eurocurrency
Loans
  Notation
Made By

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT I-2 TO
CREDIT AGREEMENT

FORM OF REVOLVING NOTE

        THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY
MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT
TO THE TERMS OF SUCH CREDIT AGREEMENT.

$                           New York, New York
                            , 2002

        FOR VALUE RECEIVED, the undersigned, Scientific Games Corporation, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay
to                        (the "Lender") or its registered assigns at the
Funding Office specified in the Credit Agreement (as hereinafter defined) in
lawful money of the United States and in immediately available funds, on the
Revolving Termination Date the principal amount of (a)             DOLLARS
($            ), or, if less, (b) the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Borrower pursuant to Section 3.1 of
the Credit Agreement. The Borrower further agrees to pay interest in like money
at such office on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Section 5.5 of the Credit
Agreement.

        The holder of this Note is authorized to endorse on the schedules
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of each
Revolving Loan made pursuant to the Credit Agreement and the date and amount of
each payment or prepayment of principal thereof, each continuation thereof, each
conversion of all or a portion thereof to another Type and, in the case of
Eurocurrency Loans, the length of each Interest Period with respect thereto.
Each such endorsement shall constitute prima facie evidence of the accuracy of
the information endorsed. The failure to make any such endorsement or any error
in any such endorsement shall not affect the obligations of the Borrower in
respect of any Revolving Loan.

        This Note (a) is one of the Revolving Notes referred to in the Credit
Agreement dated as of December 19, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower, the
several banks and other financial institutions or entities from time to time
parties thereto, Bear, Stearns & Co. Inc., as Lead Arranger, BNY Capital
Markets, Inc., as Co-Arranger, Bear Stearns Corporate Lending Inc., as
Syndication Agent, and The Bank of New York, as Administrative Agent, (b) is
subject to the provisions of the Credit Agreement and (c) is subject to optional
and mandatory prepayment in whole or in part as provided in the Credit
Agreement. This Note is secured and guaranteed as provided in the Loan
Documents. Reference is hereby made to the Loan Documents for a description of
the properties and assets in which a security interest has been granted, the
nature and extent of the security and the guarantees, the terms and conditions
upon which the security interests and each guarantee were granted and the rights
of the holder of this Note in respect thereof.

--------------------------------------------------------------------------------

        Upon the occurrence and during the continuance of any one or more of the
Events of Default, after notice to the Borrower from the Administrative Agent,
all principal and all accrued interest then remaining unpaid on this Note shall
become, or may be declared to be, immediately due and payable, all as provided
in the Credit Agreement.

        All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

        Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

        NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE
CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN
ACCORDANCE WITH THE ASSIGNMENT AND OTHER PROVISIONS OF SECTION 12.6 OF THE
CREDIT AGREEMENT.

2

--------------------------------------------------------------------------------

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

    SCIENTIFIC GAMES CORPORATION
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

3

--------------------------------------------------------------------------------

Schedule A
to Revolving Note

LOANS, CONVERSIONS AND REPAYMENTS OF BASE RATE LOANS

--------------------------------------------------------------------------------

Date
 
Amount of
Base Rate
Loans
 
Amount
Converted to
Base Rate Loans
 
Amount of
Principal of
Base Rate Loans Repaid
 
Amount of Base Rate
Loans Converted to
Eurocurrency Loans
  Unpaid
Principal
Balance of
Base Rate Loans
 

Notation
Made By

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Schedule B
to Revolving Note

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

--------------------------------------------------------------------------------

Date

  Amount of
Eurocurrency
Loans

  Amount
Converted to
Eurocurrency
Loans

  Interest Period
and
Eurocurrency
Rate with
Respect Thereto

  Amount of
Principal of
Eurocurrency
Loans Repaid

  Amount of
Eurocurrency Loans
Converted to
Base Rate Loans

  Unpaid Principal
Balance of
Eurocurrency
Loans

  Notation
Made By

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

                           

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT I-3 TO
CREDIT AGREEMENT

FORM OF SWINGLINE NOTE

        THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY
MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT
TO THE TERMS OF SUCH CREDIT AGREEMENT.

$                           New York, New York
                , 2002

        FOR VALUE RECEIVED, the undersigned, Scientific Games Corporation, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay
to                        (the "Swingline Lender") or its registered assigns at
the Funding Office specified in the Credit Agreement (as hereinafter defined) in
lawful money of the United States and in immediately available funds, on the
Revolving Termination Date the principal amount of (a)             DOLLARS
($                        ), or, if less, (b) the aggregate unpaid principal
amount of all Swingline Loans made by the Swingline Lender to the Borrower
pursuant to Section 3.3 of the Credit Agreement. The Borrower further agrees to
pay interest in like money at such office on the unpaid principal amount hereof
from time to time outstanding at the rates and on the dates specified in
Section 5.5 of such Credit Agreement.

        The holder of this Note is authorized to endorse on the schedules
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date and amount of each Swingline
Loan made pursuant to the Credit Agreement and the date and amount of each
payment or prepayment of principal thereof. Each such endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed. The
failure to make any such endorsement or any error in any such endorsement shall
not affect the obligations of the Borrower in respect of any Swingline Loan.

        This Note (a) is one of the Swingline Notes referred to in the Credit
Agreement, dated as of December 19, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower, the
Swingline Lender, the several banks and other financial institutions or entities
from time to time parties thereto, Bear, Stearns & Co. Inc., as Lead Arranger,
BNY Capital Markets, Inc., as Co-Arranger, Bear Stearns Corporate Lending Inc.,
as Syndication Agent, and The Bank of New York, as Administrative Agent, (b) is
subject to the provisions of the Credit Agreement and (c) is subject to optional
and mandatory prepayment in whole or in part as provided in the Credit
Agreement. This Note is secured and guaranteed as provided in the Loan
Documents. Reference is hereby made to the Loan Documents for a description of
the properties and assets in which a security interest has been granted, the
nature and extent of the security and the guarantees, the terms and conditions
upon which the security interests and each guarantee were granted and the rights
of the holder of this Note in respect thereof.

--------------------------------------------------------------------------------

        Upon the occurrence and during the continuance of any one or more of the
Events of Default, after notice to the Borrower from the Administrative Agent,
all principal and all accrued interest then remaining unpaid on this Note shall
become, or may be declared to be, immediately due and payable, all as provided
in the Credit Agreement.

        All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

        Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

        NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE
CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN
ACCORDANCE WITH THE ASSIGNMENT AND OTHER PROVISIONS OF SECTION 12.6 OF THE
CREDIT AGREEMENT.

2

--------------------------------------------------------------------------------

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

    SCIENTIFIC GAMES CORPORATION
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

3

--------------------------------------------------------------------------------

Schedule A
to Swingline Note

LOANS AND REPAYMENTS OF SWINGLINE LOANS

--------------------------------------------------------------------------------

Date
  Amount of
Swingline Loans
  Amount of Principal of
Swingline Loans Repaid
  Unpaid Principal Balance
of Swingline Loans
  Notation
Made By

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT J TO
CREDIT AGREEMENT

FORM OF ADDENDUM

        Reference is made to the Credit Agreement, dated as of December 19, 2002
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among Scientific Games Corporation, the banks and other financial
institutions from time to time parties thereto as Lenders, Bear, Stearns &
Co. Inc., as Lead Arranger, BNY Capital Markets, Inc., as Co-Arranger, Bear
Stearns Corporate Lending Inc., as Syndication Agent, and The Bank of New York,
as Administrative Agent. Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

        Upon execution and delivery of this Lender Addendum by the parties
hereto as provided in Section 12.17 of the Credit Agreement, the undersigned
hereby becomes a Lender thereunder having the Commitments set forth in
Schedule 1 hereto, effective as of the Closing Date.

        THIS LENDER ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

        This Lender Addendum may be executed by one or more of the parties
hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
Delivery of an executed signature page hereof by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.

        IN WITNESS WHEREOF, the parties hereto have caused this Lender Addendum
to be duly executed and delivered by their proper and duly authorized officers
as of this            day of             , 2002.

    [NAME OF LENDER]
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:
 
 
Accepted and agreed:

SCIENTIFIC GAMES CORPORATION
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:
 
 
THE BANK OF NEW YORK, as
Administrative Agent
 
 
By:
       

--------------------------------------------------------------------------------

Name:
Title:

--------------------------------------------------------------------------------

Schedule 1
to Exhibit J

COMMITMENTS AND NOTICE ADDRESS

Name and Notice
Address of Lender

--------------------------------------------------------------------------------

  Revolving
Commitment

--------------------------------------------------------------------------------

  Foreign
Currency
Commitment

--------------------------------------------------------------------------------

  Term
Commitment

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

QuickLinks

Exhibit 10.28

EXHIBIT A TO CREDIT AGREEMENT

TABLE OF CONTENTS
W I T N E S S E T H
SECTION 1. DEFINED TERMS
SECTION 2. GUARANTEE
SECTION 3. GRANT OF SECURITY INTEREST
SECTION 4. REPRESENTATIONS AND WARRANTIES
SECTION 5. COVENANTS
SECTION 6. REMEDIAL PROVISIONS
SECTION 7. THE ADMINISTRATIVE AGENT
SECTION 8. MISCELLANEOUS

Schedule 1

Schedule 2

DESCRIPTION OF INVESTMENT PROPERTY

Schedule 3

FILINGS AND OTHER ACTIONS REQUIRED TO PERFECT SECURITY INTERESTS

Schedule 4

LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

Schedule 5

LOCATIONS OF INVENTORY AND EQUIPMENT

Schedule 6

Schedule 7

Annex I to Guarantee and Collateral Agreement

W I T N E S S E T H

Annex II to Guarantee and Collateral Agreement

ACKNOWLEDGEMENT AND CONSENT

EXHIBIT B TO CREDIT AGREEMENT

FORM OF COMPLIANCE CERTIFICATE

Attachment 1 to Exhibit B

[Attach Financial Statements]

Attachment 2 to Exhibit B

EXHIBIT C TO CREDIT AGREEMENT

FORM OF CLOSING CERTIFICATE

ANNEX 1

[Board Resolutions]

ANNEX 2

[By-Laws] [other governance document]

ANNEX 3

[Certificate of Incorporation] [other charter document]

EXHIBIT D-1 TO CREDIT AGREEMENT

FORM OF NEW LENDER SUPPLEMENT
W I T N E S S E T H

EXHIBIT D-2 TO CREDIT AGREEMENT

FORM OF COMMITMENT INCREASE SUPPLEMENT
W I T N E S S E T H

EXHIBIT E TO CREDIT AGREEMENT

EXHIBIT F TO CREDIT AGREEMENT

EXHIBIT G-1 TO CREDIT AGREEMENT

[FORM OF LEGAL OPINION OF KRAMER LEVIN NAFTALIS & FRANKEL LLP]

EXHIBIT G-2 TO CREDIT AGREEMENT

[FORM OF LEGAL OPINION OF MARTIN E. SCHLOSS]

EXHIBIT H TO CREDIT AGREEMENT

FORM OF EXEMPTION CERTIFICATE

EXHIBIT I-1 TO CREDIT AGREEMENT

FORM OF TERM NOTE

Schedule A to Term Note

LOANS, CONVERSIONS AND REPAYMENTS OF BASE RATE LOANS

Schedule B to Term Note

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

EXHIBIT I-2 TO CREDIT AGREEMENT

FORM OF REVOLVING NOTE

Schedule A to Revolving Note

LOANS, CONVERSIONS AND REPAYMENTS OF BASE RATE LOANS

Schedule B to Revolving Note

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

EXHIBIT I-3 TO CREDIT AGREEMENT

FORM OF SWINGLINE NOTE

Schedule A to Swingline Note

LOANS AND REPAYMENTS OF SWINGLINE LOANS

EXHIBIT J TO CREDIT AGREEMENT

FORM OF ADDENDUM

Schedule 1 to Exhibit J

COMMITMENTS AND NOTICE ADDRESS