Document:

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                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

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         SECOND AMENDED AND RESTATED SECURITY AGREEMENT (WITH GUARANTEE)

                                     made by

                       CORRECTIONS CORPORATION OF AMERICA

                         and certain of its Subsidiaries

                                   in favor of

                          LEHMAN COMMERCIAL PAPER INC.,
                             as Administrative Agent

                             Dated as of May 3, 2002

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                                TABLE OF CONTENTS
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SECTION 1.          DEFINED TERMS..................................................................2

         1.1.   Definitions........................................................................2
         1.2.   Other Definitional Provisions......................................................7

SECTION 2.          GUARANTEE......................................................................8

         2.1.   Guarantee..........................................................................8
         2.2.   Rights of Reimbursement, Contribution and Subrogation..............................9
         2.3.   Amendments, etc. with respect to the Borrower Obligations.........................10
         2.4.   Guarantee Absolute and Unconditional..............................................11
         2.5.   Reinstatement.....................................................................11
         2.6.   Payments..........................................................................12
SECTION 3.          GRANT OF SECURITY INTEREST....................................................12
SECTION 4.          REPRESENTATIONS AND WARRANTIES................................................13
         4.1.   Representations in Credit Agreement...............................................13
         4.2.   Title; No Other Liens.............................................................13
         4.3.   Perfected First Priority Liens....................................................13
         4.4.   Jurisdiction of Organization, etc.................................................14
         4.5.   Inventory, Equipment and Books and Records........................................14
         4.6.   Farm Products.....................................................................14
         4.7.   Investment Property...............................................................14
         4.8.   Receivables.......................................................................15
         4.9.   Contracts.........................................................................15
         4.10.  Intellectual Property.............................................................15
         4.11.  Vehicles..........................................................................17

SECTION 5.          COVENANTS.....................................................................18

         5.1.   Covenants in Credit Agreement.....................................................18
         5.2.   Delivery and Control of Instruments, Chattel Paper and Investment Property........18
         5.3.   Maintenance of Insurance..........................................................19
         5.4.   Payment of Obligations............................................................19
         5.5.   Maintenance of Perfected Security Interest; Further Documentation.................20
         5.6.   Changes in Locations, Name, Jurisdiction of Incorporation, etc....................20
         5.7.   Notices. 21
         5.8.   Investment Property...............................................................21
         5.9.   Receivables.......................................................................22
         5.10.  Contracts.........................................................................22
         5.11.  Intellectual Property.............................................................23
         5.12.  Vehicles..........................................................................25
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SECTION 6.          REMEDIAL PROVISIONS...........................................................26

         6.1.   Certain Matters Relating to Receivables...........................................26
         6.2.   Communications with Obligors; Grantors Remain Liable..............................26
         6.3.   Pledged Securities................................................................27
         6.4.   Proceeds to be Turned Over To Administrative Agent................................28
         6.5.   Application of Proceeds...........................................................28
         6.6.   Code and Other Remedies...........................................................29
         6.7.   Registration Rights...............................................................30
         6.8.   Waiver; Deficiency................................................................31

SECTION 7.          THE ADMINISTRATIVE AGENT......................................................31

         7.1.   Administrative Agent's Appointment as Attorney-in-Fact, etc.......................31
         7.2.   Duty of Administrative Agent......................................................32
         7.3.   Execution of Financing Statements.................................................33
         7.4.   Authority of Administrative Agent.................................................33
         7.5.   Appointment of Co-Collateral Agents...............................................33

SECTION 8.          MISCELLANEOUS.................................................................34

         8.1.   Amendments in Writing.............................................................34
         8.2.   Notices...........................................................................34
         8.3.   No Waiver by Course of Conduct; Cumulative Remedies...............................34
         8.4.   Enforcement Expenses; Indemnification.............................................34
         8.5.   Successors and Assigns............................................................35
         8.6.   Set-Off...........................................................................35
         8.7.   Counterparts......................................................................35
         8.8.   Severability......................................................................35
         8.9.   Section Headings..................................................................35
         8.10.  Integration.......................................................................35
         8.11.  GOVERNING LAW.....................................................................36
         8.12.  Submission to Jurisdiction; Waivers...............................................36
         8.13.  Acknowledgments...................................................................36
         8.14.  Additional Grantors...............................................................37
         8.15.  Releases..........................................................................37
         8.16.  WAIVER OF JURY TRIAL..............................................................37
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SCHEDULES

Schedule 1:  Notice Addresses of Guarantors
Schedule 2:  Description of Pledged Investment Property
Schedule 3   Filings and Other Actions Required to Perfect Security Interests
Schedule 4   Exact Legal Name, Location of Jurisdiction of Organization and
             Chief Executive Office
Schedule 5   Location of Inventory and Equipment
Schedule 6   Intellectual Property
Schedule 7   Contracts

EXHIBITS:

Exhibit A    Form of Acknowledgment and Consent
Exhibit B-1  Form of Intellectual Property Security Agreement
Exhibit B-2  Form of After-Acquired Intellectual Property Security Agreement
Exhibit C    Form of Control Agreement (Uncertificated Securities)
Exhibit D    Form of Control Agreement (Securities Entitlements, Deposit Accounts)
Exhibit E    Form of Control Agreement (Commodity Contracts)
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                                     FORM OF
         SECOND AMENDED AND RESTATED SECURITY AGREEMENT (WITH GUARANTEE)

     THIS SECOND AMENDED AND RESTATED SECURITY AGREEMENT (WITH GUARANTEE), dated
as of May 3, 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 LEHMAN COMMERCIAL PAPER INC., as Administrative Agent (in such
capacity, the "Administrative Agent") for (i) the banks and other financial
institutions or entities (the "Lenders") from time to time parties to the Credit
Agreement (as hereinafter defined) and (ii) the other Secured Parties (as
hereinafter defined), AMENDS AND RESTATES IN FULL the Amended and Restated
Security Agreement dated as of August 4, 1999 (as heretofore amended, modified,
restated or supplemented from time to time, the "Original Security Agreement")
among the Borrower, the subsidiaries of the Borrower party thereto and the
Administrative Agent.

                              W I T N E S S E T H:

     WHEREAS, pursuant to that certain Credit Agreement, dated as of January 1,
1999 (as heretofore amended, modified, restated or supplemented from time to
time, the "Original Credit Agreement"), among the Borrower, certain Subsidiaries
of the Borrower, the lenders party thereto (the "Original Lenders"), NationsBank
as the original administrative agent, LCPI, in its capacity as documentation
agent, and The Bank of Nova Scotia, in its capacity as syndication agent, the
Original Lenders agreed to make Loans and issue Letters of Credit (each as
defined in the Original Credit Agreement) to the Borrower;

     WHEREAS, the Original Credit Agreement was amended and restated pursuant to
that certain Second Amended and Restated Credit Agreement, dated as of December
7, 2001, among the Borrower, the Subsidiaries of the Borrower from time to time
party thereto as guarantors, the lenders and financial institutions party
thereto, Societe Generale, as documentation agent, The Bank of Nova Scotia, as
syndication agent, SouthTrust Bank, N.A., as co-agent and Lehman Commercial
Paper Inc., as administrative agent (as amended, the "Second Amended and
Restated Credit Agreement") and the Borrower has requested that the Second
Amended and Restated Credit Agreement be amended and restated in full, as set
forth in the Third Amended and Restated Credit Agreement, dated as of May 3,
2002 (as amended, restated, supplemented or otherwise modified from time to
time, the "Credit Agreement") among Corrections Corporation of America, a
Maryland corporation (the "Borrower"), the several banks and other financial
institutions or entities from time to time parties thereto, Lehman Brothers Inc.
as sole lead arranger and sole book manager (in such capacity, the "Arranger"),
the Administrative Agent, Deutsche Bank Securities Inc. and UBS Warburg LLC as
co-syndication agents (collectively in such capacity, the "Syndication Agents")
and Societe Generale, as documentation agent (in such capacity, the
"Documentation Agent");

     WHEREAS, the requisite Lenders under the Second Amended and Restated Credit
Agreement are willing to so amend and restate the Second Amended and Restated
Credit

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Agreement and to continue to extend credit to the Borrower, upon and subject to
the terms and conditions set forth therein;

     WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement and the obligations of the Lenders to make or purchase the Loans and
make additional extensions of credit under the Credit Agreement that the
Original Security Agreement shall have been amended and restated pursuant to
this Agreement; and

     WHEREAS, this Agreement is made in amendment, restatement, modification and
continuation of, but not in extinguishment or novation of, the obligations of
the Borrower and its Subsidiaries under the Original Security Agreement.

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

                            SECTION 1. DEFINED TERMS

     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 which are defined in the Uniform
Commercial Code in effect in the State of New York on the date hereof are used
herein as so defined: Accounts, Certificated Security, Chattel Paper, Commodity
Account, Commodity Contract, Commodity Intermediary, Documents, Entitlement
Order, Equipment, Farm Products, Financial Asset, Goods, Instruments, Inventory,
Letter of Credit Rights, Securities Account, Securities Intermediary, Security,
Security Entitlement and Uncertificated Security.

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

     "Agreement": this Second Amended and Restated Security Agreement (with
Guarantee), as the same may be amended, supplemented, replaced or otherwise
modified from time to time.

     "Assignment of Claims Act": (a) the Assignment of Claims Act, 31 U.S.A. ss.
3727, for all Receivables with respect to which the account debtor is the United
States or any department, agency or instrumentality of the United States and (b)
any comparable statue of any state or other jurisdiction, or any department,
agency, or instrumentality of such state or other jurisdiction.

     "Borrower Obligations": the collective reference to the Obligations (as
defined in the Credit Agreement).

     "Collateral": as defined in Section 3.

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     "Collateral Account": (i) any collateral account established by the
Administrative Agent as provided in Section 6.1 or 6.4 or (ii) any cash
collateral account established as provided in Sections 2.12(d) or 8 of the
Credit Agreement.

     "Contracts": all contracts between a Grantor and a Governmental Authority
with respect to the management and operation of any Prison Facility, including,
without limitation, as of the Restatement Effective Date, the contracts and
agreements listed in Schedule 7, as the same may be amended, supplemented,
replaced or otherwise modified from time to time, including, without limitation,
(i) all rights of any Grantor to receive moneys due and to become due to it
thereunder or in connection therewith, (ii) all rights of any Grantor to receive
proceeds of any insurance, indemnity, warranty or guaranty with respect thereto,
(iii) all rights of any Grantor to damages arising thereunder and (iv) all
rights of any Grantor to terminate, and to perform and compel performance of,
such Contracts and to exercise all remedies thereunder.

     "Copyright Licenses": 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.

     "Copyrights": (i) all copyrights, whether or not the underlying works of
authorship have been published, and all works of authorship and other
intellectual property rights therein, all copyrights of works based on,
incorporated in, derived from or relating to works covered by such copyrights,
all right, title and interest to make and exploit all derivative works based on
or adopted from works covered by such copyrights, and all copyright
registrations and copyright applications, and any renewals or extensions
thereof, including, without limitation, each registration and application
identified in Schedule 6, (ii) the rights to print, publish and distribute any
of the foregoing, (iii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iv) all
income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all
Copyright Licenses entered into in connection therewith, and damages and
payments for past, present or future infringements thereof), and (v) all other
rights of any kind whatsoever accruing thereunder or pertaining thereto.

     "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.

     "Excluded Foreign Subsidiary": any Foreign Subsidiary in respect of which
either (i) the pledge of all of the Capital Stock of such Subsidiary as
Collateral or (ii) the guaranteeing by such Subsidiary of the Obligations,
would, in the good faith judgment of the Borrower, result in material adverse
tax consequences to the Borrower; provided, however, that a Foreign Subsidiary
that is treated as a pass-through entity for United States federal income tax
purposes shall not be an Excluded Foreign Subsidiary while so treated.

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

     "Foreign Subsidiary": any Subsidiary organized under the laws of any
jurisdiction outside the United States of America.

     "General Intangibles": all "general intangibles" as such term is defined in
Section 9-102(a)(42) of the Uniform Commercial Code in effect in the State of
New York on the date hereof and, in any event, including, without limitation,
with respect to any Grantor, all contracts, agreements, instruments and
indentures and all licenses and permits issued by Governmental Authorities in
any form, and portions thereof, to which such Grantor is a party or under which
such Grantor has any right, title or interest or to which such Grantor or any
property of such Grantor is subject, as the same may from time to time be
amended, supplemented, replaced or otherwise modified, including, without
limitation, (i) all rights of such Grantor to receive moneys due and to become
due to it thereunder or in connection therewith, (ii) all rights of such Grantor
to receive proceeds of any insurance, indemnity, warranty or guaranty with
respect thereto, (iii) all rights of such Grantor to damages arising thereunder,
(iv) all rights of such Grantor to receive any tax refunds, and (v) all rights
of such Grantor to terminate and to perform, compel performance and to exercise
all remedies thereunder.

     "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 any Secured Party that are required to be paid by such Guarantor pursuant to
the terms of this Agreement or any other Loan Document).

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

     "Hedge Agreements": as to any Person, all interest rate swaps, caps or
collar agreements or similar arrangements entered into by such Person providing
for protection against fluctuations in interest rates or currency exchange rates
or the exchange of nominal interest obligations, either generally or under
specific contingencies.

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

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     "Intercompany Note": any promissory note evidencing loans made by any
Grantor to the Borrower or any of its Subsidiaries , including, without
limitation, the Subordinated Intercompany Note.

     "Investment Property": the collective reference to (i) all "investment
property" as such term is defined in Section 9-102(a)(49) of the Uniform
Commercial Code in effect in the State of New York on the date hereof including,
without limitation, all Certificated Securities and Uncertificated Securities,
all Security Entitlements, all Securities Accounts, all Commodity Contracts and
all Commodity Accounts (other than any Excluded Foreign Subsidiary Voting Stock
excluded from the definition of "Pledged Stock"), (ii) security entitlements, in
the case of any United States Treasury book-entry securities, as defined in 31
C.F.R. section 357.2, or, in the case of any United States federal agency
book-entry securities, as defined in the corresponding United States federal
regulations governing such book-entry securities, and (iii) whether or not
constituting "investment property" as so defined, all Pledged Notes, all Pledged
Stock, all Pledged Security Entitlements and all Pledged Commodity Contracts.

     "Issuers": the collective reference to each issuer of a Pledged Security.

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

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

     "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.

     "Patents": (i) all patents, patent applications and patentable inventions,
including, without limitation, each issued patent and patent application
identified in Schedule 6, (ii) all inventions and improvements described and
claimed therein, (iii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iv) all
income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all
Patent Licenses entered into in connection therewith, and damages and payments
for past, present or future infringement thereof), and (v) all reissues,
divisions, continuations, continuations-in-part, substitutes, renewals, and
extensions thereof, all improvements thereon and all other rights of any kind
whatsoever accruing thereunder or pertaining thereto.

     "Pledged Commodity Contracts": all commodity contracts listed on Schedule 2
and all other commodity contracts to which any Grantor is party from time to
time.

     "Pledged Debt Securities": the debt securities listed on Schedule 2,
together with any other certificates, options, rights or security entitlements
of any nature whatsoever in

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respect of the debt securities of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect.

     "Pledged 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.

     "Pledged Securities": the collective reference to the Pledged Debt
Securities, the Pledged Notes and the Pledged Stock.

     "Pledged Security Entitlements": all security entitlements with respect to
the financial assets listed on Schedule 2 and all other security entitlements of
any Grantor.

     "Pledged Stock": the shares of Capital Stock listed on Schedule 2, together
with any other shares, stock certificates, options, rights or security
entitlements of any nature whatsoever in respect of the Capital Stock of any
Person (other than the Immaterial Subsidiaries and TransCor America, LLC) 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
Excluded Foreign Subsidiary Voting Stock of any Excluded Foreign Subsidiary be
required to be pledged hereunder.

     "Proceeds": all "proceeds" as such term is defined in Section 9-102(a)(64)
of the Uniform Commercial Code in effect in the State of New York on the date
hereof and, in any event, shall include, without limitation, all dividends or
other income from the Pledged Securities, 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).

     "Secured Parties": collectively, the Arranger, the Administrative Agent,
the Syndication Agents, the Documentation Agent, the Lenders and, with respect
to any Specified Hedge Agreement, any affiliate of any Lender party thereto or
any Person that was a Lender or an affiliate thereof when such Specified Hedge
Agreement was entered into that has agreed to be bound by the provisions of
Section 7.2 hereof as if it were a party hereto and by the provisions of Section
9 of the Credit Agreement as if it were a Lender party thereto.

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

     "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.

     "Trademarks": (i) all trademarks, service marks, trade names, corporate
names, company names, business names, trade dress, trade styles, logos, or other
indicia of origin or source identification, trademark and service mark
registrations, and applications for

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trademark or service mark registrations and any renewals thereof, including,
without limitation, each registration and application identified in Schedule 6,
(ii) the right to sue or otherwise recover for any and all past, present and
future infringements and misappropriations thereof, (iii) all income, royalties,
damages and other payments now and hereafter due and/or payable with respect
thereto (including, without limitation, payments under all Trademark Licenses
entered into in connection therewith, and damages and payments for past, present
or future infringements thereof), and (iv) all other rights of any kind
whatsoever accruing thereunder or pertaining thereto, together in each case with
the goodwill of the business connected with the use of, and symbolized by, each
of the above.

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

     "Trade Secrets": (i) all trade secrets and all confidential and proprietary
information, including know-how, manufacturing and production processes and
techniques, inventions, research and development information, technical data,
financial, marketing and business data, pricing and cost information, business
and marketing plans, and customer and supplier lists and information, including,
without limitation, any of the foregoing referred to in Schedule 6, (ii) the
right to sue or otherwise recover for any and all past, present and future
infringements and misappropriations thereof, (iii) all income, royalties,
damages and other payments now and hereafter due and/or payable with respect
thereto (including, without limitation, payments under all licenses entered into
in connection therewith, and damages and payments for past, present or future
infringements thereof), and (iv) all other rights of any kind whatsoever of any
Grantor accruing thereunder or pertaining thereto.

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

     1.2 Other Definitional Provisions. (a) The words "hereof", "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section 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) The expressions "payment in full," "paid in full" and any other similar
terms or phrases when used herein with respect to the Borrower Obligations or
the Guarantor Obligations shall mean the unconditional, final and irrevocable
payment in full, in immediately

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available funds, of all of the Borrower Obligations or the Guarantor
Obligations, as the case may be.

                              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 Secured Parties and their respective successors, indorsees, transferees
and assigns, the prompt and complete payment and performance by the Borrower
when due (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations.

     (b) If and to the extent required in order for the Obligations of any
Guarantor to be enforceable under applicable federal, state and other laws
relating to the insolvency of debtors, the maximum liability of such Guarantor
hereunder shall be limited to the greatest amount which can lawfully be
guaranteed by such Guarantor under such laws, after giving effect to any rights
of contribution, reimbursement and subrogation arising under Section 2.2. Each
Guarantor acknowledges and agrees that, to the extent not prohibited by
applicable law, (i) such Guarantor (as opposed to its creditors, representatives
of creditors or bankruptcy trustee, including such Guarantor in its capacity as
debtor in possession exercising any powers of a bankruptcy trustee) has no
personal right under such laws to reduce, or request any judicial relief that
has the effect of reducing, the amount of its liability under this Agreement,
(ii) such Guarantor (as opposed to its creditors, representatives of creditors
or bankruptcy trustee, including such Guarantor in its capacity as debtor in
possession exercising any powers of a bankruptcy trustee) has no personal right
to enforce the limitation set forth in this Section 2.1(b) or to reduce, or
request judicial relief reducing, the amount of its liability under this
Agreement, and (iii) the limitation set forth in this Section 2.1(b) may be
enforced only to the extent required under such laws in order for the
obligations of such Guarantor under this Agreement to be enforceable under such
laws and only by or for the benefit of a creditor, representative of creditors
or bankruptcy trustee of such Guarantor or other Person entitled, under such
laws, to enforce the provisions thereof.

     (c) Each Guarantor agrees that Borrower Obligations may at any time and
from time to time be incurred or permitted in an amount exceeding the maximum
liability of such Guarantor under Section 2.1(b) without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Secured
Party hereunder.

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

     (e) No payment made by the Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by any Secured Party from
the Borrower, any of the Guarantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Borrower Obligations shall be deemed to modify, reduce,

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release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the Borrower Obligations or any payment received or
collected from such Guarantor in respect of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of such
Guarantor hereunder until the Borrower Obligations (other than Obligations in
respect of any Specified Hedge Agreement) are paid in full, no Letter of Credit
shall be outstanding and the Commitments are terminated or have expired.

     2.2.Rights of Reimbursement, Contribution and Subrogation.

     In case any payment is made on account of the Obligations by any Grantor or
is received or collected on account of the Obligations from any Grantor or its
property:

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

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

     (c) If and whenever (after payment in full of the Obligations) any right of
reimbursement or contribution becomes enforceable by any Grantor against any
other Grantor under Sections 2.2(a) and 2.2(b), such Grantor shall be entitled,
subject to and upon payment in full of the Obligations, to be subrogated
(equally and ratably with all other Grantors entitled to reimbursement or
contribution from any other Grantor as set forth in this Section 2.2) to any
security interest that may then be held by the Administrative Agent upon any
Collateral granted to it in this Agreement. Such right of subrogation shall be
enforceable solely against the Grantors, and not against the Secured Parties,
and neither the Administrative Agent nor any other Secured Party shall have any
duty whatsoever to warrant, ensure or protect any such right of subrogation or
to obtain, perfect, maintain, hold, enforce or retain any Collateral for any
purpose related to any such right of subrogation. If subrogation is demanded by
any Grantor, then (after payment in full of the Obligations) the Administrative
Agent shall deliver to the Grantors making such demand, or to a representative
of such Grantors or of the Grantors generally, an instrument satisfactory to the
Administrative Agent transferring, on a quitclaim basis without any recourse,
representation, warranty or obligation whatsoever, whatever security interest
the Administrative

                                       9
<PAGE>
Agent then may hold in whatever Collateral may then exist that was not
previously released or disposed of by the Administrative Agent.

     (d) All rights and claims arising under this Section 2.2 or based upon or
relating to any other right of reimbursement, indemnification, contribution or
subrogation that may at any time arise or exist in favor of any Grantor as to
any payment on account of the Obligations made by it or received or collected
from its property shall be fully subordinated in all respects to the prior
payment in full of all of the Obligations. Until payment in full of the
Obligations, no Grantor shall demand or receive any collateral security, payment
or distribution whatsoever (whether in cash, property or securities or
otherwise) on account of any such right or claim. If any such payment or
distribution is made or becomes available to any Grantor in any bankruptcy case
or receivership, insolvency or liquidation proceeding, such payment or
distribution shall be delivered by the person making such payment or
distribution directly to the Administrative Agent, for application to the
payment of the Obligations. If any such payment or distribution is received by
any Grantor, it shall be held by such Grantor in trust, as trustee of an express
trust for the benefit of the Secured Parties, and shall forthwith be transferred
and delivered by such Grantor to the Administrative Agent, in the exact form
received and, if necessary, duly endorsed.

     (e) The obligations of the Grantors under the Loan Documents, including
their liability for the Obligations and the enforceability of the security
interests granted thereby, are not contingent upon the validity, legality,
enforceability, collectibility or sufficiency of any right of reimbursement,
contribution or subrogation arising under this Section 2.2. The invalidity,
insufficiency, unenforceability or uncollectibility of any such right shall not
in any respect diminish, affect or impair any such obligation or any other
claim, interest, right or remedy at any time held by any Secured Party against
any Guarantor or its property. The Secured Parties make no representations or
warranties in respect of any such right and shall have no duty to assure,
protect, enforce or ensure any such right or otherwise relating to any such
right.

     (f) Each Grantor reserves any and all other rights of reimbursement,
contribution or subrogation at any time available to it as against any other
Grantor, but (i) the exercise and enforcement of such rights shall be subject to
Section 2.2(d) and (ii) neither the Administrative Agent nor any other Secured
Party shall ever have any duty or liability whatsoever in respect of any such
right, except as provided in Section 2.2(c).

     2.3. Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by any Secured Party may be rescinded by such Secured Party and
any of the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, increased, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
any Secured Party, and the Credit Agreement and the other Loan Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the requisite Lenders under the Credit Agreement or all Lenders, as
the case may be) may deem advisable from time to time, and any collateral
security, guarantee or right of offset at

                                       10
<PAGE>
any time held by any Secured Party for the payment of the Borrower Obligations
may be sold, exchanged, waived, surrendered or released. No Secured Party shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Borrower Obligations or for the guarantee
contained in this Section 2 or any property subject thereto.

     2.4. Guarantee Absolute and Unconditional. Each Guarantor waives any and
all notice of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by any Secured Party upon the
guarantee contained in this Section 2 or acceptance of the guarantee contained
in this Section 2; the Borrower Obligations, and any of them, shall conclusively
be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one
hand, and the Secured Parties, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or any of the Guarantors with respect to the Borrower Obligations. Each
Guarantor understands and agrees that the guarantee contained in this Section 2
shall be construed as a continuing, absolute and unconditional guarantee of
payment and performance without regard to (a) the validity or enforceability of
the Credit Agreement or any other Loan Document, any of the Borrower Obligations
or any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by any Secured Party, (b)
any defense, set-off or counterclaim (other than a defense of payment or
performance hereunder) which may at any time be available to or be asserted by
the Borrower or any other Person against any Secured Party, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Borrower
or such Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of the Borrower for the Borrower Obligations, or of
such Guarantor under the guarantee contained in this Section 2, in bankruptcy or
in any other instance. When making any demand hereunder or otherwise pursuing
its rights and remedies hereunder against any Guarantor, any Secured Party may,
but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by any Secured Party to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Borrower, any other
Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the
Borrower, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of any
Secured Party against any Guarantor. For the purposes hereof "demand" shall
include the commencement and continuance of any legal proceedings.

     2.5. Reinstatement. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations is rescinded or
must otherwise be restored or returned by any Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or any
Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or

                                       11
<PAGE>

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.

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

                      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
Secured Parties, a security interest in, all of the personal property of such
Grantor, including, without limitation, the following property, in each case,
wherever located and now owned or at any time hereafter acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any
right, title or interest (collectively, the "Collateral"), as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor's
Obligations:

     (a) all Accounts;

     (b) all Chattel Paper;

     (c) all Contracts;

     (d) all Deposit Accounts;

     (e) all Documents;

     (f) all Equipment;

     (g) all General Intangibles;

     (h) all Instruments;

     (i) all Intellectual Property;

     (j) all Inventory;

     (k) all Investment Property;

     (l) all Letter of Credit Rights;

     (m) all money;

     (n) all Vehicles;

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

                                       12
<PAGE>

     (p) all bank accounts, all funds held therein and all certificates and
instruments, if any, from time to time representing or evidencing such bank
accounts;

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

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

     Notwithstanding anything to the contrary set forth above, in no event shall
the Collateral include, and no Grantor shall be deemed to have granted a
security interest in, any of such Grantor's right, title or interest in any
contract or agreement to which a Grantor is a party (including the Contracts) to
the extent, but only to the extent, that such a grant, under the terms of such
contract or agreement, results in a breach or termination of the terms of, or
constitutes a default under or termination of, such contract or agreement
(unless such terms would be rendered ineffective pursuant to Section 9-406,
9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of
any relevant jurisdiction, any other applicable law or principals of equity);
provided that, in any event, immediately upon the ineffectiveness, lapse or
termination of such provision, the Collateral shall include, and such Grantor
shall be deemed to have granted a security interest in, all such rights and
interests as if such provision had never been in effect.

                    SECTION 4. REPRESENTATIONS AND WARRANTIES

     To induce the Arranger, 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 the Secured Parties that:

     4.1. Representations in Credit Agreement. In the case of each Guarantor,
the representations and warranties set forth in Section 4 of the Credit
Agreement as they relate to such Guarantor or to the Loan Documents to which
such Guarantor is a party, each of which is hereby incorporated herein by
reference, are true and correct, in all material respects, except for
representations and warranties expressly stated to relate to a specific earlier
date, in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date, and the Secured
Parties shall be entitled to rely on each of them as if they were fully set
forth herein, provided that each reference in each such representation and
warranty to the Borrower's knowledge shall, for the purposes of this Section
4.l, be deemed to be a reference to such Guarantor's knowledge.

     4.2. Title; No Other Liens. Such Grantor owns or has rights in each item of
the Collateral free and clear of any and all Liens or claims, except for
Permitted Liens. 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 Secured Parties, pursuant to this Agreement or as are
permitted by the Credit Agreement.

     4.3. Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) constitute (assuming the filings and other
actions specified on Schedule 3 have been duly filed or completed) valid fully
perfected security interests in all of the Collateral

                                       13
<PAGE>

in favor of the Administrative Agent, for the ratable benefit of the Secured
Parties, as collateral security for such Grantor's Obligations, enforceable in
accordance with the terms hereof and the provisions of the UCC 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 except
for Permitted Liens.

     4.4. Jurisdiction of Organization, etc. On the date hereof, such Grantor's
exact legal name (as indicated on the public record of such Grantor's
jurisdiction of formation or organization), jurisdiction of organization and the
location of such Grantor's chief executive office or sole place of business are
specified on Schedule 4. Except as otherwise indicated on Schedule 4, the
jurisdiction of each such Grantor's organization or formation is required to
maintain a public record showing the Grantor to have been organized or formed.

     4.5. Inventory, Equipment and Books and Records. On the date hereof, the
Inventory and the Equipment (other than mobile goods) and the books and records
pertaining to the Collateral 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 of the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Excluded Foreign Subsidiary Voting Stock, if less, 65% of the
outstanding Excluded Foreign Subsidiary Voting Stock of each relevant Issuer.

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

     (c) The terms of any uncertificated limited liability company interests and
partnership interests included in the Pledged Stock expressly provide that they
are securities governed by Article 8 of the Uniform Commercial Code in effect
from time to time in the "issuer's jurisdiction" of each Issuer thereof (as such
term is defined in the Uniform Commercial Code in effect in such jurisdiction).

     (d) The terms of any certificated limited liability company interests and
partnership interests included in the Pledged Stock expressly provide that they
are securities governed by Article 8 of the Uniform Commercial Code in effect
from time to time in the State of New York.

     (e) 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.

                                       14
<PAGE>

     (f) 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
Permitted Liens.

     (g) Each Issuer that is not a Grantor hereunder has executed and delivered
to the Administrative Agent an Acknowledgment and Agreement, in substantially
the form of Exhibit A, to the pledge of the Pledged Securities pursuant to this
Agreement.

     4.8. Receivables, etc. (a) No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Administrative Agent.

     (b) The amounts represented by such Grantor to the Secured Parties from
time to time as owing to such Grantor in respect of the Receivables will at such
times be accurate in all material respects.

     4.9. Contracts. (a) No consent of any party (other than such Grantor) to
any Contract is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement, other than consents from
Governmental Authorities which are party to any of the Contracts.

     (b) Each Contract is in full force and effect and constitutes a valid and
legally enforceable obligation of the parties thereto, 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.

     (c) No consent or authorization of, filing with or other act by or in
respect of any Governmental Authority is required in connection with the
execution, delivery, performance, validity or enforceability of any of the
Contracts by any party thereto other than (i) those which have been duly
obtained, made or performed, are in full force and effect and do not subject the
scope of any such Contract to any material adverse limitation, either specific
or general in nature and (ii) those consisting of customary annual
appropriations requirements by any applicable Governmental Authority.

     (d) Neither such Grantor nor (to such Grantor's knowledge) any of the other
parties to the Contracts is in default in the performance or observance of any
of the terms thereof.

     (e) To such Grantor's knowledge, the right, title and interest of such
Grantor in, to and under the Contracts are not subject to any defenses, offsets,
counterclaims or claims.

     (f) No amount payable to such Grantor under or in connection with any
Contract is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Administrative Agent.

     4.10. Intellectual Property. (a) Schedule 6 lists all Intellectual Property
owned by such Grantor in its own name on the date hereof. Except as set forth in
Schedule 6, such Grantor is the exclusive owner of the entire and unencumbered
right, title and interest in and to

                                       15
<PAGE>

such Intellectual Property and is otherwise entitled to use all such
Intellectual Property, without limitation, subject only to the license terms of
the licensing or franchise agreements referred to in paragraph (c) below.

     (b) On the date hereof, all Intellectual Property is valid, subsisting,
unexpired and enforceable, has not been abandoned and, to such Grantor's
knowledge, does not infringe the intellectual property rights of any other
Person.

     (c) Except as set forth in Schedule 6, on the date hereof (i) none of the
Intellectual Property is the subject of any licensing or franchise agreement
pursuant to which such Grantor is the licensor or franchisor, and (ii) there are
no other agreements, obligations, orders or judgments which affect the use of
any Intellectual Property.

     (d) To such Grantor's knowledge, the rights of such Grantor in or to the
Intellectual Property do not conflict with or infringe upon the rights of any
third party, and no claim has been asserted that the use of such Intellectual
Property does or may infringe upon the rights of any third party. To such
Grantor's knowledge, there is currently no infringement or unauthorized use of
any item of Intellectual Property.

     (e) No holding, decision or judgment has been rendered by any Governmental
Authority with respect to such Grantor's Intellectual Property or, to such
Grantor's knowledge, no other holding, decision or judgment has been rendered by
any Governmental Authority, which, in either case, would limit, cancel or
question the validity or enforceability of, or such Grantor's rights in, any
Intellectual Property in any respect that could reasonably be expected to have a
Material Adverse Effect. Such Grantor is not aware of any uses of any item of
Intellectual Property that could reasonably be expected to lead to such item
becoming invalid or unenforceable including, without limitation, unauthorized
uses by third parties and uses which were not supported by the goodwill of the
business connected with Trademarks and Trademark Licenses.

     (f) 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, (ii) alleging that any services provided by, processes used by, or
products manufactured or sold by such Grantor infringe any patent, trademark,
copyright, or any other right of any third party, (iii) alleging that any
material Intellectual Property is being licensed, sublicensed or used in
violation of any patent, trademark, copyright or any other right of any third
party, or (iv) which, if adversely determined, would have a material adverse
effect on the value of any Intellectual Property. To the knowledge of such
Grantor, no Person is engaging in any activity that infringes upon the
Intellectual Property or upon the rights of such Grantor therein. Except as set
forth in Schedule 6 hereto, such Grantor has not granted any license, release,
covenant not to sue, non-assertion assurance, or other right to any person with
respect to any part of the Intellectual Property. The consummation of the
transactions contemplated by this Agreement will not result in the termination
or impairment of any of the Intellectual Property.

     (g) With respect to each Copyright License, Trademark License and Patent
License: (i) such license is valid and binding and in full force and effect and
represents the entire

                                       16
<PAGE>
agreement between the respective licensor and licensee with respect to the
subject matter of such license; (ii) such license will not cease to be valid and
binding and in full force and effect on terms identical to those currently in
effect as a result of the rights and interests granted herein, nor will the
grant of such rights and interests constitute a breach or default under such
license or otherwise give the licensor or licensee a right to terminate such
license; (iii) such Grantor has not received any notice of termination or
cancellation under such license; (iv) such Grantor has not received any notice
of a breach or default under such license, which breach or default has not been
cured; (v) such Grantor has not granted to any other third party any rights,
adverse or otherwise, under such license; and (vi) such Grantor is not in breach
or default in any material respect under, and no event has occurred that, with
notice and/or lapse of time, would constitute such a breach or default or permit
termination, modification or acceleration of, such license.

     (h) Except as set forth in Schedule 6, such Grantor has performed all acts
and has paid all required fees and taxes to maintain each and every item of
material Intellectual Property in full force and effect and to protect and
maintain its interest therein. Such Grantor has used proper statutory notice in
connection with its use of each material Patent, Trademark and Copyright
included in the Intellectual Property.

     (i) To the knowledge of such Grantor, none of the Trade Secrets of such
Grantor has been used, divulged, disclosed or appropriated to the detriment of
such Grantor for the benefit of any other Person; (ii) no employee, independent
contractor or agent of such Grantor has misappropriated any trade secrets of any
other Person in the course of the performance of his or her duties as an
employee, independent contractor or agent of such Grantor; and (iii) no
employee, independent contractor or agent of such Grantor is in default or
breach of any term of any employment agreement, non-disclosure agreement,
assignment of inventions agreement or similar agreement or contract relating in
any way to the protection, ownership, development, use or transfer of such
Grantor's Intellectual Property.

     (j) Such Grantor has made all filings and recordations necessary to
adequately protect its interest in its Intellectual Property including, without
limitation, recordation of its interests in the Patents and Trademarks with the
United States Patent and Trademark Office and in corresponding national and
international patent offices, and recordation of any of its interests in the
Copyrights with the United States Copyright Office and in corresponding national
and international copyright offices.

     (k) Such Grantor has taken all steps to use consistent standards of quality
in the manufacture, distribution and sale of all products sold and provision of
all services provided under or in connection with any item of Intellectual
Property and has taken all steps to ensure that all licensed users of any kind
of Intellectual Property use such consistent standards of quality.

     4.11. Vehicles. The aggregate book value of all Vehicles owned by all
Grantors is less than $4,000,000.

                                       17
<PAGE>

                              SECTION 5. COVENANTS

     Each Grantor covenants and agrees with the Secured Parties that, from and
after the date of this Agreement until the Obligations (other than Obligations
in respect of any Specified Hedge Agreement) shall have been paid in full, no
Letter of Credit shall be outstanding and the Commitments shall have terminated
or expired:

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

     5.2. Delivery and Control of Instruments, Chattel Paper and Investment
Property. (a) If any item or items of the Collateral in excess of $250,000 in
the aggregate at any one time outstanding shall be or become evidenced or
represented by any Instrument, Certificated Security or Chattel Paper, such
Instrument, Certificated Security or Chattel Paper shall be immediately
delivered to the Administrative Agent, duly endorsed in a manner satisfactory to
the Administrative Agent, to be held as Collateral pursuant to this Agreement.

     (b) If any of the Collateral shall be or become evidenced or represented by
an Uncertificated Security, such Grantor shall cause the Issuer thereof either
(i) to register the Administrative Agent as the registered owner of such
Uncertificated Security, upon original issue or registration of transfer or (ii)
to agree in writing with such Grantor and the Administrative Agent that such
Issuer will comply with instructions with respect to such Uncertificated
Security originated by the Administrative Agent without further consent of such
Grantor, such agreement to be in substantially the form of Exhibit C.

     (c) If any of the Collateral shall be or become evidenced or represented by
a Security Entitlement, such Grantor shall cause the Securities Intermediary
with respect to such Security Entitlement either (i) to identify in its records
the Administrative Agent as having such Security Entitlement against such
Securities Intermediary or (ii) to agree in writing with such Grantor and the
Administrative Agent that such Securities intermediary will comply with
Entitlement Orders originated by the Administrative Agent without further
consent of such Grantor, such agreement to be in substantially the form of
Exhibit D.

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

     (e) If any of the Collateral shall be or become evidenced or represented by
or held in a Securities Account or a Commodity Account, such Grantor shall, in
the case of a Securities Account, comply with Section 5.2(c) with respect to all
Security Entitlements carried in such Securities Account and, in the case of a
Commodity Account, comply with Section 5.2(d) with respect to all Commodity
Contracts carried in such Commodity Account.

                                       18
<PAGE>

     5.3. Maintenance of Insurance. (a) Such Grantor will maintain, with
financially sound and reputable insurance companies, insurance on all its
property (including, without limitation, all Inventory, Equipment and Vehicles)
in at least such amounts with such deductibles and against at least such risks
as are usually insured against in the same general area by companies engaged in
the same or a similar business; and furnish to the Administrative Agent with
copies for each Secured Party, upon written request, full information as to the
insurance carried; provided that in any event such Grantor will maintain (i)
property and casualty insurance on all real and personal property on an all
risks basis (including the perils of flood and quake and loss by fire, explosion
and theft), covering the repair or replacement cost of all such property and
consequential loss coverage for business interruption and extra expense (which
shall include construction expenses and such other business interruption
expenses as are otherwise generally available to similar businesses), and (ii)
public liability insurance. All such insurance with respect to such Grantor
shall be provided by insurers or reinsurers which (x) in the case of United
States insurers and reinsurers, have an A.M. Best policyholders rating of not
less than A- with respect to primary insurance and B+ with respect to excess
insurance and (y) in the case of non-United States insurers or reinsurers, the
providers of at least 80% of such insurance have either an ISI policyholders
rating of not less than A, an A.M. Best policyholders rating of not less than A-
or a surplus of not less than $500,000,000 with respect to primary insurance,
and an ISI policyholders rating of not less than BBB with respect to excess
insurance, or, if the relevant insurance is not available from such insurers,
such other insurers as the Administrative Agent may approve in writing. All
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) if
reasonably requested by the Administrative Agent, include a breach of warranty
clause and (iii) be reasonably satisfactory in all other respects to the
Administrative Agent.

     (b) Such Grantor will deliver to the Administrative Agent on behalf of the
Secured Parties, (i) on the Restatement Effective Date, a certificate dated such
date showing the amount and types of insurance coverage as of such date, (ii)
upon request of the Administrative Agent from time to time, full information as
to the insurance carried, (iii) promptly following receipt of notice from any
insurer, a copy of any notice of cancellation or material change in coverage
from that existing on the Restatement Effective Date, (iv) forthwith, notice of
any cancellation or nonrenewal of coverage by such Grantor, and (v) promptly
after such information is available to such Grantor, full information as to any
claim for an amount in excess of $5,000,000 with respect to any property and
casualty insurance policy maintained by such Grantor. Each Secured Party shall
be named as additional insured on all such liability insurance policies of such
Grantor and the Administrative Agent shall be named as loss payee on all
property and casualty insurance policies of such Grantor.

     (c) The Borrower shall deliver to the Secured Parties 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

                                       19
<PAGE>

taxes, assessments and governmental charges or levies imposed upon the
Collateral or in respect of income or profits therefrom, as well as all 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, reserves in conformity with GAAP with
respect thereto have been provided on the books of such Grantor and such
proceedings could not reasonably be expected to result in the sale, forfeiture
or loss of any material portion of the Collateral or any interest therein.

     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 as a perfected security interest
having at least the priority described in Section 4.3 against the claims and
demands of all Persons whomsoever.

     (b) Such Grantor will furnish to the Secured Parties from time to time
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the assets and property of such Grantor as
the 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 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, including without limitation, executing and delivering and
causing the relevant depositary bank or securities intermediary to execute and
deliver a Control Agreement in the form attached hereto as Exhibit E.

     5.6. Changes in Locations, Name, Jurisdiction of Incorporation, 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 executed financing statements and other documents reasonably
requested by the Administrative Agent 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 (other than mobile goods) or books and records pertaining
to the Collateral shall be kept:

          (i) permit any of the Inventory or Equipment (other than mobile goods)
     or books and records pertaining to the Collateral to be kept at a location
     other than those listed on Schedule 5;

                                       20
<PAGE>

          (ii) without limiting any applicable prohibitions on mergers involving
     the Grantors contained in the Credit Agreement, change its legal name,
     jurisdiction of organization or the location of its chief executive office
     or sole place of business from that referred to in Section 4.4; or

          (iii) change its legal name, identity or structure to such an extent
     that any financing statement filed by the Administrative Agent in
     connection with this Agreement would become materially misleading or, in
     the opinion of the Administrative Agent, might otherwise be deemed invalid
     for the purpose for which it was filed.

     5.7. Notices. Such Grantor will advise the Secured Parties promptly, in
reasonable detail, of:

     (a) any Lien (other than any Permitted Lien) on any of the Collateral which
would 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 or other ownership 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 or
other ownership interests in the Pledged Stock, or otherwise in respect thereof,
such Grantor shall accept the same as the agent of the Secured Parties, hold the
same in trust for the Secured Parties and deliver the same forthwith to the
Administrative Agent in the exact form received, duly endorsed 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 and with, if
the Administrative Agent so requests, signature guaranteed, 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 Pledged
Securities 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 Pledged Securities or any property shall be
distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to
the reorganization thereof, the property so distributed shall, unless otherwise
subject to a perfected security interest in favor of the 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 Pledged Securities 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 in
trust for the Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Obligations.

                                       21
<PAGE>

     (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, any of the Investment Property or Proceeds thereof or
any interest therein (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 and Permitted Liens 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 or any interest therein.

     (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 Pledged
Securities 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 Pledged Securities issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the
Pledged Securities issued by it.

     5.9. Receivables. (a) Other than in the ordinary course of business
consistent with its past practice and so long as no Event of Default shall have
occurred and be continuing, 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 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 demand, notice or document received by it that questions or calls into
doubt the validity or enforceability of more than 5% of the aggregate amount of
the then outstanding Receivables.

     5.10. Contracts. (a) Such Grantor will perform and comply in all material
respects with all its obligations under the Contracts.

     (b) Such Grantor will not amend, modify, terminate, waive or fail to
enforce any provision of any Contract in any manner which (i) could reasonably
be expected to materially adversely affect the value of such Contract as
Collateral, except for such amendments, modifications, terminations, waivers, or
failures to enforce as such Grantor shall reasonably determine, in its good
faith business judgment, to be in its best interests, taking into account its
business operations as a whole, or (ii) otherwise have a Material Adverse
Effect.

     (c) Such Grantor will exercise promptly and diligently each and every
material right which it may have under each Contract (other than any right of
termination).

                                       22
<PAGE>
     (d) Upon the request of the Administrative Agent, such Grantor will deliver
to the Administrative Agent (i) a complete and correct copy of each Contract,
including all amendments, supplements and other modifications thereto and (ii) a
copy of each material demand, notice or document received by it relating in any
way to any Contract.

     (e) If a Default or Event of Default exists and is continuing, upon the
request of the Administrative Agent, such Grantor agrees to use its reasonable
best efforts to obtain a consent to assignment from any Governmental Authority
which is party to a Contract if the Administrative Agent reasonably believes
that such consent is necessary to cause such Contract to be included as
Collateral hereunder.

     (f) If a Default or Event of Default exists and is continuing, upon the
request of the Administrative Agent, such Grantor agrees to use its reasonable
best efforts to take such actions as are reasonably required (in the opinion of
the Administrative Agent) to comply with the Assignment of Claims Act for all
Receivables with respect to which the account debtor is the United States, any
department, agency or instrumentality of the United States or any state or other
jurisdiction, department, agency or instrumentality of such state or other
jurisdiction, so as to designate the Administrative Agent as the payee on all
payments against such Receivables.

     5.11. Intellectual Property. (a) Such Grantor (either itself or through
licensees) will (i) continue to use each material Trademark on each and every
trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark
in full force free from any claim of abandonment for non-use, (ii) maintain as
in the past the quality of products and services offered under such Trademark
and take all necessary steps to ensure that all licensed users of such Trademark
maintain as in the past such quality, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (iv) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall
obtain a perfected security interest in such mark pursuant to this Agreement and
the Intellectual Property Security Agreement, and (v) not (and not 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.

     (b) Such Grantor (either itself or through licensees) will not do any act,
or 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) (i) will employ each
material Copyright and (ii) will not (and will not 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 (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.

                                       23
<PAGE>

     (e) Such Grantor (either itself or through licensees) will use proper
statutory notice in connection with the use of each material Patent, Trademark
and Copyright included in the Intellectual Property.

     (f) Such Grantor will notify the Administrative Agent immediately 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.

     (g) Whenever such Grantor, either by itself or through any agent, employee,
licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, 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 five 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, and have recorded,
any and all agreements, instruments, documents, and papers as the Administrative
Agent may request to evidence the Secured Parties' security interest in any
Copyright, Patent, Trademark or other Intellectual Property and the goodwill and
general intangibles of such Grantor relating thereto or represented thereby.

     (h) 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 material Intellectual Property, including, without
limitation, the payment of required fees and taxes, the filing of responses to
office actions issued by the United States Patent and Trademark Office and the
United States Copyright Office, the filing of applications for renewal or
extension, the filing of affidavits of use and affidavits of incontestability,
the filing of divisional, continuation, continuation-in-part, reissue, and
renewal applications or extensions, the payment of maintenance fees, and the
participation in interference, reexamination, opposition, cancellation,
infringement and misappropriation proceedings.

     (i) Such Grantor (either itself or through licensees) will not, without the
prior written consent of the Administrative Agent, discontinue use of or
otherwise abandon any Intellectual Property, or abandon any application or any
right to file an application for letters patent, trademark, or copyright, unless
such Grantor shall have previously determined that such use or the pursuit or
maintenance of such Intellectual Property is no longer desirable in the conduct
of such Grantor's business and that the loss thereof could not reasonably be
expected to have a Material Adverse Effect and, in which case, such Grantor
shall give prompt notice of any such abandonment to the Administrative Agent in
accordance herewith.

                                       24
<PAGE>

     (j) 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 sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution.

     (k) Such Grantor agrees that, should it obtain an ownership interest in any
item of intellectual property which is not now a part of the Intellectual
Property Collateral (the "After-Acquired Intellectual Property"), (i) the
provisions of Section 3 shall automatically apply thereto, (ii) any such
After-Acquired Intellectual Property, and in the case of trademarks, the
goodwill of the business connected therewith or symbolized thereby, shall
automatically become part of the Intellectual Property Collateral, (iii) it
shall give prompt (and, in any event within five Business Days after the last
day of the fiscal quarter in which such Grantor acquires such ownership
interest) written notice thereof to the Administrative Agent in accordance
herewith, and (iv) it shall provide the Administrative Agent promptly (and, in
any event within five Business Days after the last day of the fiscal quarter in
which such Grantor acquires such ownership interest) with an amended Schedule 6
hereto and take the actions specified in 5.11(m).

     (l) Such Grantor agrees to execute an Intellectual Property Security
Agreement with respect to its Intellectual Property in substantially the form of
Exhibit C-1 in order to record the security interest granted herein to the
Administrative Agent for the ratable benefit of the Secured Parties with the
United States Patent and Trademark Office, the United States Copyright Office,
and any other applicable Governmental Authority.

     (m) Such Grantor agrees to execute an After-Acquired Intellectual Property
Security Agreement with respect to its After-Acquired Intellectual Property in
substantially the form of Exhibit C-2 in order to record the security interest
granted herein to the Administrative Agent for the ratable benefit of the
Secured Parties with the United States Patent and Trademark Office, the United
States Copyright Office, and any other applicable Governmental Authority.

     5.12. Vehicles.

     (a) At any time after the fair market value of all Vehicles owned by the
Loan Parties exceeds $7,000,000 in the aggregate, the Borrower shall promptly so
notify the Administrative Agent and, upon the request of the Administrative
Agent, the Borrower shall promptly deliver to the Administrative Agent, with
respect to each such Vehicle, all applications for certificates of title or
ownership indicating the Administrative Agent's first priority security interest
in the Vehicle covered by such certificate, and any such other documentation,
all in form sufficient for filing in each office in each jurisdiction which the
Administrative Agent shall deem advisable to perfect its security interest in
the Vehicles.

     (b) From and after the date on which the Administrative Agent makes the
request described in clause (a) above, no Vehicle shall be removed from the
state which has issued the certificate of title or ownership therefor for a
period in excess of four months.

                                       25
<PAGE>

                         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 it reasonably considers advisable (provided that, if
no Default or Event of Default exists and is continuing, the Administrative
Agent shall not contact any Governmental Authority with respect to any
Receivable without the prior written consent of the Borrower (such consent not
to be unreasonably withheld or delayed)), and each Grantor shall furnish all
such assistance and information as the Administrative Agent may require in
connection with such test verifications. At any time and from time to time, upon
the Administrative Agent's request and at the expense of the relevant Grantor,
such Grantor shall cause independent public accountants or others 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, subject to the Administrative Agent's direction and
control, 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
endorsed 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 Secured Parties only as provided in Section 6.5, and (ii) until
so turned over, shall be held by such Grantor in trust for the Secured Parties,
segregated from other funds of such Grantor. Each such deposit of Proceeds of
Receivables shall be accompanied by a report identifying in reasonable detail
the nature and source of the payments included in the deposit.

     (c) At the Administrative Agent's request, each Grantor shall deliver to
the Administrative Agent all original 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
communicate with obligors under the Receivables and parties to the Contracts to
verify with them to the Administrative Agent's satisfaction the existence,
amount and terms of any Receivables or Contracts; provided that, if no Default
or Event of Default exists and is continuing, the Administrative Agent shall not
contact any Governmental Authority with respect to any Receivable or Contract
without the prior written consent of the Borrower (such consent not to be
unreasonably withheld or delayed).

     (b) Upon the 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 and parties to the Contracts, in each case,
which constitute Collateral hereunder, that such Receivables and such Contracts
have been assigned to the Administrative Agent for the

                                       26
<PAGE>

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

     6.3. Pledged Securities. (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, in each case paid in the normal
course of business of the relevant Issuer and consistent with past practice, to
the extent permitted in the Credit Agreement, and to exercise all voting and
corporate rights with respect to the Pledged Securities; provided, however, that
no vote shall be cast or corporate or other ownership 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 Pledged Securities and make application thereof to the
Obligations in the order set forth in Section 6.5, and (ii) any or all of the
Pledged Securities 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 Pledged
Securities 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 Pledged
Securities as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged
Securities upon the merger, consolidation, reorganization, recapitalization or
other fundamental change in the corporate or other structure of any Issuer, or
upon the exercise by any Grantor or the Administrative Agent of any right,
privilege or option pertaining to such Pledged Securities, and in connection
therewith, the right to deposit and deliver any and all of the Pledged
Securities 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

                                       27
<PAGE>

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 Pledged
Securities 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
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
Pledged Securities directly to the Administrative Agent.

     6.4. Proceeds to be Turned Over To Administrative Agent. In addition to the
rights of the Secured Parties 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, Cash Equivalents, checks
and other near-cash items shall be held by such Grantor in trust for the Secured
Parties, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Administrative Agent in the exact
form received by such Grantor (duly endorsed 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 in trust
for the Secured Parties) shall continue to be held as collateral security for
all the Obligations and shall not constitute payment thereof until applied as
provided in Section 6.5.

     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, notwithstanding the provisions of Section 2.12 of
the Credit Agreement, apply all or any part of Proceeds constituting Collateral
realized through the exercise by the Administrative Agent of its remedies
hereunder, whether or not held in any Collateral Account, and any proceeds of
the guarantee set forth in Section 2, in payment of the Obligations in the
following order:

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

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

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

          Fourth, any balance of such Proceeds remaining after the Obligations
     (other than Obligations in respect of any Specified Hedge Agreement) shall
     have been paid in full,

                                       28
<PAGE>

     no Letters of Credit shall be outstanding and the Commitments shall have
     terminated or expired shall be paid over to the Borrower or to whomsoever
     may be lawfully entitled to receive the same.

     6.6. Code and Other Remedies. (a) If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the New York UCC (whether or not the New York UCC applies to the affected
Collateral) or 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), 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 Secured Party or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may
deem best, for cash or on credit or for future delivery without assumption of
any credit risk. Each Secured Party shall have the right upon any such public
sale or sales, and, to the extent permitted by law, upon any such private sale
or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in any Grantor, which right or equity is
hereby waived and released. Each Grantor 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 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
Secured Parties 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) 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
Secured Party 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.

     (b) In the event of any Disposition of any of the Intellectual Property,
the goodwill of the business connected with and symbolized by any Trademarks
subject to such Disposition shall be included, and the applicable Grantor shall
supply the Administrative Agent or its designee with such Grantor's know-how and
expertise, and with documents and things embodying the same, relating to the
manufacture, distribution, advertising and sale of products or the provision of
services relating to any Intellectual Property subject to such Disposition, and

                                       29
<PAGE>

such Grantor's customer lists and other records and documents relating to such
Intellectual Property and to the manufacture, distribution, advertising and sale
of such products and services.

     6.7. Registration Rights. (a) If the Administrative Agent shall determine
to exercise its right to sell any or all of the Pledged Stock or the Pledged
Debt Securities 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
the Pledged Debt Securities, 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
the Pledged Debt Securities, 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 the Pledged Debt Securities, 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 SEC 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 or the Pledged Debt
Securities, 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 or the Pledged Debt Securities for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

     (c) 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 or the Pledged Debt Securities 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 Secured Parties, that the Secured Parties have no adequate remedy at law in
respect of such breach and, as a consequence, that each and every covenant
contained in this Section 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

                                       30
<PAGE>

defense that no Event of Default has occurred and is continuing under the Credit
Agreement or a defense of payment.

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

                       SECTION 7. THE 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 endorse and collect any checks, drafts, notes,
     acceptances or other instruments for the payment of moneys due under any
     Receivable or Contract which is Collateral hereunder 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 Contract or with respect to any other
     Collateral whenever payable;

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

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

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

          (v) (1) direct any party liable for any payment under any of the
     Collateral to make payment of any and all moneys due or to become due
     thereunder directly to the 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,

                                       31
<PAGE>

     claims and other amounts due or to become due at any time in respect of or
     arising out of any Collateral; (3) sign and endorse any invoices, freight
     or express bills, bills of lading, storage or warehouse receipts, drafts
     against debtors, assignments, verifications, notices and other documents in
     connection with any of the Collateral; (4) commence and prosecute any
     suits, actions or proceedings at law or in equity in any court of competent
     jurisdiction to collect the Collateral or any portion thereof and to
     enforce any other right in respect of any Collateral; (5) defend any suit,
     action or proceeding brought against such Grantor with respect to any
     Collateral; (6) settle, compromise or adjust any such suit, action or
     proceeding and, in connection therewith, give such discharges or releases
     as the 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 Secured Parties' security interests therein and to
     effect the intent of this Agreement, all as fully and effectively as such
     Grantor might do.

     Anything in this Section 7.1(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 Credit 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

                                       32
<PAGE>

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

     7.3. Execution of Financing Statements. Pursuant to Section 9-509(b) of the
New York UCC and any other applicable law, each Grantor authorizes the
Administrative Agent to file or record financing or continuation statements, and
amendments thereto, and other filing or recording documents or instruments with
respect to the Collateral in such form and in such offices as the Administrative
Agent reasonably determines appropriate to perfect or maintain the perfection of
the security interests of the Secured Parties under this Agreement. Such
financing statements may describe the collateral in the same manner as described
in the Security documents or as "all assets" or "all personal property" of the
Grantors, whether now owned or hereafter existing or acquired by the Grantors. A
photographic or other reproduction of this Agreement shall be sufficient as a
financing statement or other filing or recording document or instrument for
filing or recording in any jurisdiction.

     7.4. 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 Administrative Agent and the other
Secured Parties, be governed by the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but,
as between the Administrative Agent and the Grantors, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Secured Parties
with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

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

                                       33
<PAGE>

                            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 10.1 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 10.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

     8.3. No Waiver by Course of Conduct; Cumulative Remedies. No Secured Party
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 Secured
Party, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by any Secured Party of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which such Secured Party would otherwise have on any future
occasion. The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

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

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

     (c) Each Grantor agrees to pay, and to save the Secured Parties harmless
from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Agreement to the extent the Borrower would be required to
do so pursuant to Section 10.5 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.

                                       34
<PAGE>

     (e) Each Grantor agrees that the provisions of Section 2.20 of the Credit
Agreement are hereby incorporated herein by reference, mutatis mutandis, and
each Secured Party shall be entitled to rely on each of them as if they were
fully set forth herein.

     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
Secured Parties and their successors and assigns; provided that no Grantor may
assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Administrative Agent.

     8.6. Set-Off. Each Grantor hereby irrevocably authorizes each Secured Party
at any time and from time to time while an Event of Default shall have occurred
and be continuing, without notice to such Grantor or any other Grantor, any such
notice being expressly waived by each Grantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Secured Party to or for
the credit or the account of such Grantor, or any part thereof in such amounts
as such Secured Party may elect, against and on account of the obligations and
liabilities of such Grantor to such Secured Party hereunder and claims of every
nature and description of such Secured Party against such Grantor, in any
currency, whether arising hereunder, under the Credit Agreement, any other Loan
Document or otherwise, as such Secured Party may elect, whether or not any
Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. Each Secured Party shall
notify such Grantor promptly of any such set-off and the application made by
such Secured Party of the proceeds thereof, provided that the failure to give
such notice shall not affect the validity of such set-off and application. The
rights of each Secured Party under this Section are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which such
Secured Party 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 Administrative Agent and the other Secured
Parties with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations

                                       35
<PAGE>
or warranties by any Secured Party relative to subject matter hereof and thereof
not expressly set forth or referred to herein or in the other Loan Documents.

     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.

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

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

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

          (c) agrees that service of process in any such action or proceeding
     may be effected by mailing a copy thereof by registered or certified mail
     (or any substantially similar form of mail), postage prepaid, to such
     Grantor at its address referred to in Section 8.2 or at such other address
     of which the Administrative Agent shall have been notified pursuant
     thereto;

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

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

     8.13. Acknowledgments. Each Grantor hereby acknowledges that:

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

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

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

                                       36
<PAGE>

     8.14. Additional Grantors. Each Subsidiary of the Borrower that is required
to become a party to this Agreement pursuant to Section 6.10 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 1 hereto.

     8.15. Releases. (a) At such time as the Loans, the Reimbursement
Obligations and the other Obligations (other than Obligations in respect of any
Specified Hedge Agreement) shall have been paid in full, the Commitments have
been terminated or expired 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 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 Disposed of by any Grantor in a
transaction permitted by the Credit Agreement, then the Administrative Agent, at
the request and sole expense of such Grantor, shall execute and deliver to such
Grantor all releases or other documents reasonably necessary or desirable for
the release of the Liens created hereby on such Collateral. At the request and
sole expense of the Borrower, a Subsidiary Guarantor shall be released from its
obligations hereunder in the event that all the Capital Stock of such Subsidiary
Guarantor shall be 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 Subsidiary Guarantor and
the terms of the Disposition in reasonable detail, including the price thereof
and any expenses in connection therewith, together with a certification by the
Borrower stating that such transaction is in compliance with the Credit
Agreement and the other Loan Documents and that the Proceeds of such Disposition
will be applied in accordance therewith.

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

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

                            [Signature pages follow]

                                       37
<PAGE>
     IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Security Agreement to be duly executed and delivered as of the date first above
written.

                                         CORRECTIONS CORPORATION OF AMERICA

                                         By: /s/ John D. Ferguson
                                            ------------------------------------
                                            Name: John D. Ferguson
                                            Title: CEO & President

                                         CCA OF TENNESSEE, INC.

                                         By: /s/ John D. Ferguson
                                            ------------------------------------
                                            Name: John D. Ferguson
                                            Title: CEO & President

                                         PRISON REALTY MANAGEMENT, INC.

                                         By: /s/ John D. Ferguson
                                            ------------------------------------
                                            Name: John D. Ferguson
                                            Title: CEO & President

                                         CCA INTERNATIONAL, INC.

                                         By: /s/ Todd Mullenger
                                            ------------------------------------
                                            Name: Todd Mullenger
                                            Title: Vice President - Treasurer

                                         TRANSCOR AMERICA, LLC

                                         By:  /s/ Todd Mullenger
                                            ------------------------------------
                                            Name: Todd Mullenger
                                            Title: Vice President - Treasurer

                                         TECHNICAL AND BUSINESS INSTITUTE OF
                                         AMERICA, INC.

                                         By:  /s/ John D. Ferguson
                                            ------------------------------------
                                            Name: John D. Ferguson
                                            Title: CEO & President

                                       38
<PAGE>
                                         LEHMAN COMMERCIAL PAPER INC.,
                                         as Administrative Agent

                                         By: /s/ Francis Chang
                                            ------------------------------------
                                            Name: Francis Chang
                                            Title: Authorized Signatory

                                       39
<PAGE>

                 [Schedules and Exhibits Intentionally Omitted]<PAGE>

                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

                             DATED AS OF MAY 3, 2002

                                  BY AND AMONG

                       CORRECTIONS CORPORATION OF AMERICA
                                    AS ISSUER

                             CCA OF TENNESSEE, INC.
                         PRISON REALTY MANAGEMENT, INC.
                             CCA INTERNATIONAL, INC.
                TECHNICAL AND BUSINESS INSTITUTE OF AMERICA, INC.
                              TRANSCOR AMERICA, LLC

                                AS THE GUARANTORS

                                       AND

                              LEHMAN BROTHERS INC.
                          DEUTSCHE BANK SECURITIES INC.
                                 UBS WARBURG LLC
                         SG COWEN SECURITIES CORPORATION
                       BB&T CAPITAL MARKETS, A DIVISION OF
                          SCOTT AND STRONGFELLOW, INC.
                      FIRST ANALYSIS SECURITIES CORPORATION
                           JEFFERIES AND COMPANY, INC.
                            MCDONALD INVESTMENTS INC.
                        MORGAN LEWIS GUTHENS & AHN, INC.
                           SOUTHTRUST SECURITIES, INC.

                            AS THE INITIAL PURCHASERS

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        This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of May 3, 2002, by and among Corrections Corporation of America,
a Maryland corporation (the "COMPANY"), the subsidiaries listed on Schedule A
hereto (the "GUARANTORS"), and Lehman Brothers Inc., Deutsche Bank Securities
Inc., UBS Warburg LLC, SG Cowen Securities Corporation, BB&T Capital Markets, a
division of Scott and Strongfellow, Inc., First Analysis Securities Corporation,
Jefferies and Company, Inc., McDonald Investments Inc., Morgan Lewis Guthens &
Ahn, Inc., and SouthTrust Securities, Inc. (each an "INITIAL PURCHASER" and,
collectively, the "INITIAL PURCHASERS"), each of whom has agreed to purchase the
Company's 9?% Senior Notes due 2009 (the "NOTES") pursuant to the Purchase
Agreement (as defined below).

        This Agreement is entered into pursuant to the Purchase Agreement, dated
April 24, 2002, (the "PURCHASE AGREEMENT"), by and among the Company, the
Guarantors and the Initial Purchasers. In order to induce the Initial Purchasers
to purchase the Notes, the Company and the Guarantors have agreed to provide the
registration rights set forth in this Agreement. The execution and delivery of
this Agreement is a condition to the obligations of the Initial Purchasers set
forth in Section 7 of the Purchase Agreement. Capitalized terms used herein and
not otherwise defined shall have the meanings assigned to them in the Indenture,
dated the date hereof, among the Company, the Guarantors and State Street Bank
and Trust Company, as Trustee, relating to the Notes and the Exchange Notes, as
the same may be amended, modified and/or supplemented from time to time (the
"INDENTURE").

        The parties hereby agree as follows:

SECTION 1. DEFINITIONS

        As used in this Agreement, the following capitalized terms shall have
the following meanings:

        ACT: The Securities Act of 1933, as amended.

        AFFILIATE: As defined in Rule 144 of the Act.

        BROKER-DEALER: Any broker or dealer registered under the Exchange Act.

        CERTIFICATED SECURITIES: Definitive Notes, as defined in the Indenture.

        CLOSING DATE: The date hereof.

        COMMISSION: The Securities and Exchange Commission.

        CONSUMMATE: An Exchange Offer shall be deemed "Consummated" for purposes
of this Agreement upon the occurrence of each of the following: (a) the filing
and effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Exchange Notes to be issued in the Exchange Offer, (b) the
maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the
minimum period required pursuant to Section 3(b) hereof and (c) the delivery by
the Company to the Registrar under the Indenture of Exchange Notes in the same
aggregate principal

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amount as the aggregate principal amount of Notes validly tendered by Holders
thereof pursuant to the Exchange Offer.

        CONSUMMATION DEADLINE: As defined in Section 3(b) hereof.

        EFFECTIVENESS DEADLINE: As defined in Section 3(a) and 4(a) hereof.

        EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

        EXCHANGE NOTES: The Company's 9 7/8% Senior Notes due 2009, registered
under the Act, to be issued pursuant to the Indenture: (i) in the Exchange Offer
or (ii) as contemplated by Section 4 hereof.

        EXCHANGE OFFER: The exchange and issuance by the Company of a principal
amount of Exchange Notes (which shall be registered pursuant to the Exchange
Offer Registration Statement) equal to the outstanding principal amount of Notes
that are tendered by such Holders in connection with such exchange and issuance.

        EXCHANGE OFFER REGISTRATION STATEMENT: The Registration Statement
relating to the Exchange Offer, including the related Prospectus which forms a
part thereof.

        EXEMPT RESALES: The transactions in which the Initial Purchasers propose
to sell the Notes to certain "qualified institutional buyers," as such term is
defined in Rule 144A under the Act, and in compliance with Regulation S under
the Act.

        FILING DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

        HOLDER: As defined in Section 2 hereof.

        PROSPECTUS: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

        RECOMMENCEMENT DATE: As defined in Section 6(e) hereof.

        REGISTRATION DEFAULT: As defined in Section 5 hereof.

        REGISTRATION STATEMENT: Any registration statement of the Company and
the Guarantors relating to (a) an offering of Exchange Notes and related
Subsidiary Guarantees pursuant to an Exchange Offer or (b) the registration for
resale of Transfer Restricted Securities pursuant to the Shelf Registration
Statement, in each case (i) that is filed pursuant to the provisions of this
Agreement and (ii) including the Prospectus included therein, all amendments and
supplements thereto (including post-effective amendments) and all exhibits and
material incorporated by reference therein.

        REGULATION S: Regulation S promulgated under the Act.

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        RULE 144: Rule 144 promulgated under the Act.

        SHELF REGISTRATION STATEMENT: As defined in Section 4 hereof.

        SUSPENSION NOTICE: As defined in Section 6(e) hereof.

        TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as
in effect on the date of the Indenture.

        TRANSFER RESTRICTED SECURITIES: (i) Each Note and the related Subsidiary
Guarantees, until the earliest to occur of (a) the date on which such Note is
exchanged in the Exchange Offer for an Exchange Note which is entitled to be
resold to the public by the Holder thereof without complying with the prospectus
delivery requirements of the Act, (b) the date on which such Note has been
disposed of in accordance with a Shelf Registration Statement, (c) the date on
which such Note is distributed to the public pursuant to Rule 144 under the Act
or (d) the date on which such Note is sold in any other manner that permits the
Company to remove the legend describing the transfer restrictions and (ii) each
Exchange Note and the related Subsidiary Guarantees acquired by a Broker-Dealer
in exchange for a Note acquired for its own account as a result of market making
activities or other trading activities until the date on which such Exchange
Note is disposed of by a Broker-Dealer pursuant to the "Plan of Distribution"
contemplated by the Exchange Offer Registration Statement (including the
delivery of the Prospectus contained therein).

SECTION 2. HOLDERS

        A Person is deemed to be a holder of Transfer Restricted Securities
(each, a "HOLDER") whenever such Person owns Transfer Restricted Securities.

SECTION 3. REGISTERED EXCHANGE OFFER

        (a) Unless the Exchange Offer shall not be permitted by applicable
federal law or Commission policy (after the procedures set forth in Section
6(a)(i) below have been complied with), the Company and the Guarantors shall (i)
cause the Exchange Offer Registration Statement to be filed with the Commission
as soon as practicable after the Closing Date, but in no event later than 90
days after the Closing Date (such 90th day being the "EXCHANGE OFFER FILING
DEADLINE"), (ii) use their commercially reasonable efforts to cause such
Exchange Offer Registration Statement to become effective at the earliest
possible time, but in no event later than 180 days after the Closing Date (such
180th day being the "EXCHANGE OFFER EFFECTIVENESS DEADLINE"), (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such
Exchange Offer Registration Statement as may be necessary in order to cause it
to become effective, (B) file, if applicable, a post-effective amendment to such
Exchange Offer Registration Statement pursuant to Rule 430A under the Act and
(C) cause all necessary filings, if any, in connection with the registration and
qualification of the Exchange Notes to be made under the Blue Sky laws of such
jurisdictions as are necessary to permit Consummation of the Exchange Offer, and
(iv) unless the Exchange Offer would not be permitted by applicable law or
Commission policy, promptly after the effectiveness of such Exchange Offer
Registration Statement, commence and use their commercially reasonable efforts
to Consummate the Exchange Offer in the time set forth in Section 3(b). The
Exchange Offer shall be on the

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appropriate form permitting (i) registration of the Exchange Notes to be offered
in exchange for the Notes that are Transfer Restricted Securities and (ii)
resales of Exchange Notes by Broker-Dealers that tendered into the Exchange
Offer Notes that such Broker-Dealer acquired for its own account as a result of
market making activities or other trading activities (other than Notes acquired
directly from the Company or any of its Affiliates) as contemplated by Section
3(c) below.

        (b) The Company and the Guarantors shall use their respective
commercially reasonable efforts to cause the Exchange Offer Registration
Statement to be effective continuously, and shall keep the Exchange Offer open
for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided,
however, that in no event shall such period be less than 20 business days. The
Company and the Guarantors shall cause the Exchange Offer to comply with all
applicable federal and state securities laws. No securities other than the
Exchange Notes shall be included in the Exchange Offer Registration Statement.
The Company and the Guarantors shall use their respective commercially
reasonable efforts to cause the Exchange Offer to be Consummated on the earliest
practicable date after the Exchange Offer Registration Statement has become
effective, but in no event later than 30 business days thereafter or longer if
required by the federal securities laws (such 30th business day (as may be
extended) being the "EXCHANGE OFFER CONSUMMATION DEADLINE").

        (c) The Company shall include a "Plan of Distribution" section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate
therein that any Broker-Dealer who holds Transfer Restricted Securities that
were acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Notes acquired directly from
the Company or any Affiliate of the Company), may exchange such Transfer
Restricted Securities pursuant to the Exchange Offer. Such "Plan of
Distribution" section shall also contain all other information with respect to
such sales by such Broker-Dealers that the Commission may require in order to
permit such sales pursuant thereto, but such "Plan of Distribution" shall not
name any such Broker-Dealer or disclose the amount of Transfer Restricted
Securities held by any such Broker-Dealer, except to the extent required by the
Commission as a result of a change in policy, rules or regulations after the
date of this Agreement.

        Because such Broker-Dealer may be deemed to be an "underwriter" within
the meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of any Exchange
Notes received by such Broker-Dealer in the Exchange Offer, the Company and the
Guarantors shall permit the use of the Prospectus contained in the Exchange
Offer Registration Statement by such Broker-Dealer to satisfy such prospectus
delivery requirement. To the extent necessary to ensure that the prospectus
contained in the Exchange Offer Registration Statement is available for sales of
Exchange Notes by Broker-Dealers, the Company and the Guarantors agree to use
their respective commercially reasonable efforts to keep the Exchange Offer
Registration Statement continuously effective, supplemented and amended as
required by and subject to the provisions of Section 6(a) and (c) hereof and in
conformity with the requirements of this Agreement, the Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of 180 days from the date on which the Exchange Offer is Consummated or
such shorter period as will

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terminate when all Transfer Restricted Securities covered by such Registration
Statement have been sold pursuant thereto. The Company shall provide sufficient
copies of the latest version of such Prospectus to such Broker-Dealers, promptly
upon request, and in no event later than two days after such request, at any
time during such period.

SECTION 4. SHELF REGISTRATION

        (a) Shelf Registration. If (i) the Exchange Offer is not permitted by
applicable law or Commission policy (after the Company and the Guarantors have
complied with the procedures set forth in Section 6(a)(i) below) or (ii) if any
Holder of Transfer Restricted Securities shall notify the Company prior to the
20th day following the Consummation of the Exchange Offer that (A) such Holder
was prohibited by law or Commission policy from participating in the Exchange
Offer or (B) such Holder may not resell the Exchange Notes acquired by it in the
Exchange Offer to the public without delivering a prospectus and the Prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder or (C) such Holder is a Broker-Dealer
and holds Notes acquired directly from the Company or any of its Affiliates,
then the Company and the Guarantors shall:

                (x) use their commercially reasonable efforts to cause to be
        filed, on or prior to 30 days after the earlier of (i) the date on which
        the Company determines that the Exchange Offer Registration Statement
        cannot be filed as a result of clause (a)(i) above and (ii) the date on
        which the Company receives the notice specified in clause (a)(ii) above
        (such earlier date, the "SHELF FILING DEADLINE" and, together with the
        Exchange Offer Filing Deadline, the "FILING DEADLINES"), a shelf
        registration statement pursuant to Rule 415 under the Act (which may be
        an amendment to the Exchange Offer Registration Statement (the "SHELF
        REGISTRATION STATEMENT")), relating to all Transfer Restricted
        Securities; and

                (y) use their commercially reasonable efforts to cause such
        Shelf Registration Statement to become effective on or prior to 90 days
        after the Shelf Filing Deadline (such 90th day the "SHELF EFFECTIVENESS
        DEADLINE" and, together with the Exchange Offer Effectiveness Deadline,
        the "EFFECTIVENESS DEADLINES").

        If, after the Company has and the Guarantors have filed an Exchange
Offer Registration Statement that satisfies the requirements of Section 3(a)
above, the Company and the Guarantors are required to file and make effective a
Shelf Registration Statement solely because the Exchange Offer is not permitted
under applicable federal law or Commission policy (i.e., clause (a)(i) above),
then the filing of the Exchange Offer Registration Statement shall be deemed to
satisfy the requirements of clause (x) above; provided that, in such event, the
Company and the Guarantors shall remain obligated to meet the Shelf
Effectiveness Deadline set forth in clause (y).

        To the extent necessary to ensure that the Shelf Registration Statement
is available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company and
the Guarantors shall use their commercially reasonable efforts

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to keep any Shelf Registration Statement required by this Section 4(a)
continuously effective, supplemented and amended as required by and subject to
the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure
that it is available for resale of Notes by the Holders of Transfer Restricted
Securities entitled to the benefits of this Section 4(a) and to ensure that it
conforms with the requirements of this Agreement, the Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of at least two years (as extended pursuant to Section 6(c)(i)) following
the Closing Date, or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Shelf Registration Statement have been
sold pursuant thereto.

        (b) Provision by Holders of Certain Information in Connection with the
Shelf Registration Statement. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, the
information specified in Item 507 or 508 of Regulation S-K, as applicable, of
the Act or such other information as the Company may reasonably request for use
in connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to liquidated damages pursuant to Section 5 hereof unless and until
such Holder shall have provided all such information. By its acceptance of
Transfer Restricted Securities, each Holder agrees to promptly furnish all
additional information required to be disclosed in order to make the information
previously furnished to the Company by such Holder not materially misleading.

SECTION 5. LIQUIDATED DAMAGES

        If (i) any Registration Statement required by this Agreement is not
filed with the Commission on or prior to the applicable Filing Deadline, (ii)
any such Registration Statement has not been declared effective by the
Commission on or prior to the applicable Effectiveness Deadline, (iii) the
Exchange Offer has not been Consummated on or prior to the Exchange Offer
Consummation Deadline or (iv) any Registration Statement required by this
Agreement is filed and declared effective but shall thereafter cease to be
effective or fail to be usable for its intended purpose without being succeeded
within two business days by a post-effective amendment to such Registration
Statement that cures such failure and that is itself declared effective within
five business days of filing such post-effective amendment to such Registration
Statement (each such event referred to in clauses (i) through (iv), a
"REGISTRATION DEFAULT"), then the Company and the Guarantors hereby jointly and
severally agree to pay to each Holder of Transfer Restricted Securities affected
thereby liquidated damages in an amount equal to $.05 per week per $1,000 in
principal amount of Transfer Restricted Securities held by such Holder for each
week or portion thereof that the Registration Default continues for the first
90-day period immediately following the occurrence of such Registration Default.
The amount of the liquidated damages shall increase by an additional $.05 per
week per $1,000 in principal amount of Transfer Restricted Securities with
respect to each subsequent 90-day period until all Registration Defaults have
been cured, up to a maximum amount of liquidated damages of $.50 per week per
$1,000 in principal amount of Transfer Restricted Securities; provided that the
Company and the Guarantors shall in no event be required to pay liquidated
damages for more than one Registration Default at any given time.
Notwithstanding anything to the contrary set forth herein, (1) upon filing of
the Exchange Offer Registration Statement (and/or, if applicable, the

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Shelf Registration Statement), in the case of (i) above, (2) upon the
effectiveness of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of (ii) above, (3)
upon Consummation of the Exchange Offer, in the case of (iii) above, or (4) upon
the filing of a post-effective amendment to the Registration Statement or an
additional Registration Statement that causes the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement) to again be
declared effective or made usable in the case of (iv) above, the liquidated
damages payable with respect to the Transfer Restricted Securities as a result
of such clause (i), (ii), (iii) or (iv), as applicable, shall cease.

        All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated damages
are due cease to be Transfer Restricted Securities, all obligations of the
Company and the Guarantors to pay liquidated damages with respect to securities
shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full.

SECTION 6. REGISTRATION PROCEDURES

        (a) Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company and the Guarantors shall (x) comply with all
applicable provisions of Section 6(c) below, (y) use their respective
commercially reasonable efforts to effect such exchange and to permit the resale
of Exchange Notes by any Broker-Dealer that tendered Notes in the Exchange Offer
that such Broker-Dealer acquired for its own account as a result of its market
making activities or other trading activities (other than Notes acquired
directly from the Company or any of its Affiliates) being sold in accordance
with the intended method or methods of distribution thereof, and (z) comply with
all of the following provisions:

                (i) If, following the date hereof there has been announced a
        change in applicable law or Commission policy with respect to exchange
        offers such as the Exchange Offer, that in the reasonable opinion of
        counsel to the Company raises a question as to whether the Exchange
        Offer is permitted by applicable federal law, the Company and the
        Guarantors hereby agree to seek a no-action letter or other favorable
        decision from the Commission allowing the Company and the Guarantors to
        Consummate an Exchange Offer for such Transfer Restricted Securities.
        The Company and the Guarantors hereby agree to pursue the issuance of
        such a decision to the Commission staff level, but shall not be required
        to take commercially unreasonable action to effect a change of
        Commission policy. In connection with the foregoing, the Company and the
        Guarantors hereby agree to take all such other reasonable actions as may
        be requested by the Commission or otherwise required in connection with
        the issuance of such decision, including without limitation (A)
        participating in telephonic conferences with the Commission staff, (B)
        delivering to the Commission staff an analysis prepared by counsel to
        the Company setting forth the legal bases, if any, upon which such
        counsel has concluded that such an Exchange Offer should be permitted
        and (C) diligently pursuing a resolution (which need not be favorable)
        by the Commission staff.

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                (ii) As a condition to its participation in the Exchange Offer
        pursuant to the terms of this Agreement, each Holder of Transfer
        Restricted Securities (including, without limitation, any Holder who is
        a Broker Dealer) shall furnish, upon the request of the Company, prior
        to the Consummation of the Exchange Offer, a written representation to
        the Company and the Guarantors (which may be contained in the letter of
        transmittal contemplated by the Exchange Offer Registration Statement)
        to the effect that (A) it is not an Affiliate of the Company, (B) it is
        not engaged in, and does not intend to engage in, and has no arrangement
        or understanding with any person to participate in, a distribution of
        the Exchange Notes to be issued in the Exchange Offer and (C) it is
        acquiring the Exchange Notes in its ordinary course of business. In
        addition, all such Holders of Transfer Restricted Securities shall
        otherwise cooperate in the Company's preparations for the Exchange
        Offer. Each Holder using the Exchange Offer to participate in a
        distribution of the Exchange Notes will be required to acknowledge and
        agree that, if the resales are of Exchange Notes obtained by such Holder
        in exchange for Notes acquired directly from the Company or an Affiliate
        thereof, it (1) could not, under Commission policy as in effect on the
        date of this Agreement, rely on the position of the Commission
        enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
        Exxon Capital Holdings Corporation (available May 13, 1988), as
        interpreted in the Commission's letter to Shearman & Sterling dated July
        2, 1993, and similar no-action letters (including, if applicable, any
        no-action letter obtained pursuant to clause (i) above), and (2) must
        comply with the registration and prospectus delivery requirements of the
        Act in connection with a secondary resale transaction and that such a
        secondary resale transaction must be covered by an effective
        registration statement containing the selling security holder
        information required by Item 507 or 508, as applicable, of Regulation
        S-K.

                (iii) Prior to effectiveness of the Exchange Offer Registration
        Statement, the Company and the Guarantors shall provide a supplemental
        letter to the Commission (A) stating that the Company and the Guarantors
        are registering the Exchange Offer in reliance on the position of the
        Commission enunciated in Exxon Capital Holdings Corporation (available
        May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) as
        interpreted in the Commission's letter to Shearman & Sterling dated July
        2, 1993, and, if applicable, any no-action letter obtained pursuant to
        clause (i) above, (B) including a representation that neither the
        Company nor any Guarantor has entered into any arrangement or
        understanding with any person to distribute the Exchange Notes to be
        received in the Exchange Offer and that, to the best of the Company's
        and each Guarantor's information and belief, each Holder participating
        in the Exchange Offer is acquiring the Exchange Notes in its ordinary
        course of business and has no arrangement or understanding with any
        Person to participate in the distribution of the Exchange Notes received
        in the Exchange Offer and (C) any other undertaking or representation
        required by the Commission as set forth in any no-action letter obtained
        pursuant to clause (i) above, if applicable.

        (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company and the Guarantors shall:

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                (i) comply with all the provisions of Section 6(c) and 6(d)
        below and use their respective commercially reasonable efforts to effect
        such registration to permit the sale of the Transfer Restricted
        Securities being sold in accordance with the intended method or methods
        of distribution thereof (as indicated in the information furnished to
        the Company pursuant to Section 4(b) hereof), and pursuant thereto the
        Company and the Guarantors will prepare and file with the Commission a
        Registration Statement relating to the registration on any appropriate
        form under the Act, which form shall be available for the sale of the
        Transfer Restricted Securities in accordance with the intended method or
        methods of distribution thereof within the time periods and otherwise in
        accordance with the provisions hereof; and

                (ii) issue, upon the request of any Holder or purchaser of Notes
        covered by any Shelf Registration Statement contemplated by this
        Agreement, Exchange Notes having an aggregate principal amount equal to
        the aggregate principal amount of Notes sold pursuant to the Shelf
        Registration Statement and surrendered to the Company for cancellation;
        the Company and the Guarantors shall register Exchange Notes and the
        related Subsidiary Guarantees on the Shelf Registration Statement for
        this purpose and issue the Exchange Notes to the purchaser(s) of
        securities subject to the Shelf Registration Statement in the names as
        such purchaser(s) shall designate.

        (c) General Provisions. In connection with any Registration Statement
and any related Prospectus required by this Agreement, the Company and the
Guarantors shall:

                (i) use their respective commercially reasonable efforts to keep
        such Registration Statement continuously effective and provide all
        requisite financial statements for the period specified in Section 3 or
        4 of this Agreement, as applicable. Upon the occurrence of any event
        that would cause any such Registration Statement or the Prospectus
        contained therein (A) to contain an untrue statement of material fact or
        omit to state any material fact necessary to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading or (B) not to be effective and usable for resale of Transfer
        Restricted Securities during the period required by this Agreement, the
        Company and the Guarantors shall file promptly an appropriate amendment
        to such Registration Statement curing such defect, and, if Commission
        review is required, use their respective commercially reasonable efforts
        to cause such amendment to be declared effective as soon as practicable;
        if at any time the Commission shall issue any stop order suspending the
        effectiveness of any Registration Statement, or any state securities
        commission or other regulatory authority shall issue an order suspending
        the qualification or exemption from qualification of the Transfer
        Restricted Securities under state securities or Blue Sky laws, the
        Company and the Guarantors shall use their respective commercially
        reasonable efforts to obtain the withdrawal or lifting of such order at
        the earliest possible time;

                (ii) prepare and file with the Commission such amendments and
        post-effective amendments to the applicable Registration Statement as
        may be necessary to keep such Registration Statement effective for the
        applicable period set forth in Section 3 or 4 hereof, as the case may be
        or such shorter period as will terminate when all Transfer Restricted
        Securities covered by such Registration Statement have been sold; cause
        the

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        Prospectus to be supplemented by any required Prospectus supplement, and
        as so supplemented to be filed pursuant to Rule 424 under the Act, and
        to comply fully with Rules 424, 430A and 462, as applicable, under the
        Act in a timely manner; and comply with the provisions of the Act with
        respect to the disposition of all securities covered by such
        Registration Statement during the applicable period in accordance with
        the intended method or methods of distribution by the sellers thereof
        set forth in such Registration Statement or supplement to the
        Prospectus;

                (iii) in connection with any sale of Transfer Restricted
        Securities that will result in such securities no longer being Transfer
        Restricted Securities, use commercially reasonable efforts to cooperate
        with the Holders to facilitate the timely preparation and delivery of
        certificates representing Transfer Restricted Securities to be sold and
        not bearing any restrictive legends; and to use commercially reasonable
        efforts to register such Transfer Restricted Securities in such
        denominations and such names as the selling Holders may request at least
        two business days prior to such sale of Transfer Restricted Securities;

                (iv) use their respective commercially reasonable efforts to
        cause the disposition of the Transfer Restricted Securities covered by
        the Registration Statement to be registered with or approved by such
        other governmental agencies or authorities as may be necessary to enable
        the seller or sellers thereof to consummate the disposition of such
        Transfer Restricted Securities; provided, however, that neither the
        Company nor any Guarantor shall be required to register or qualify as a
        foreign corporation where it is not now so qualified or to take any
        action that would subject it to the service of process in suits or to
        taxation, other than as to matters and transactions relating to the
        Registration Statement, in any jurisdiction where it is not now so
        subject;

                (v) provide a CUSIP number for all Transfer Restricted
        Securities not later than the effective date of a Registration Statement
        covering such Transfer Restricted Securities and provide the Trustee
        under the Indenture with certificates for the Transfer Restricted
        Securities which are in a form eligible for deposit with The Depository
        Trust Company;

                (vi) otherwise use their respective commercially reasonable
        efforts to comply with all applicable rules and regulations of the
        Commission, and make generally available to its security holders as soon
        as practical with regard to any applicable Registration Statement, as
        soon as practicable, a consolidated earnings statement meeting the
        requirements of Rule 158 (which need not be audited) covering a
        twelve-month period beginning after the effective date of the
        Registration Statement (as such term is defined in paragraph (c) of Rule
        158 under the Act); and

                (vii) cause the Indenture to be qualified under the TIA not
        later than the effective date of the first Registration Statement
        required by this Agreement and, in connection therewith, cooperate with
        the Trustee and the Holders to effect such changes to the Indenture as
        may be required for such Indenture to be so qualified in accordance with
        the terms of the TIA; and execute and use their respective commercially
        reasonable efforts to cause the Trustee to execute, all documents that
        may be required to effect such

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        changes and all other forms and documents required to be filed with the
        Commission to enable such Indenture to be so qualified in a timely
        manner.

        (d) Additional Provisions Applicable to Shelf Registration Statements
and Certain Exchange Offer Prospectuses. In connection with each Shelf
Registration Statement, and each Exchange Offer Registration Statement if and to
the extent that an Initial Purchaser has notified the Company that it is a
holder of Exchange Notes that are Transfer Restricted Securities (for so long as
such Exchange Notes are Transfer Restricted Securities or for the period
provided in Section 3, whichever is shorter), the Company and the Guarantors
shall:

                (i) advise each Holder promptly and, if requested by such
        Holder, confirm such advice in writing, (A) when the Prospectus or any
        Prospectus supplement or post-effective amendment has been filed, and,
        with respect to any applicable Registration Statement or any
        post-effective amendment thereto, when the same has become effective,
        (B) of any request by the Commission for amendments to the Registration
        Statement or amendments or supplements to the Prospectus or for
        additional information relating thereto, (C) of the issuance by the
        Commission of any stop order suspending the effectiveness of the
        Registration Statement under the Act or of the suspension by any state
        securities commission of the qualification of the Transfer Restricted
        Securities for offering or sale in any jurisdiction, or the initiation
        of any proceeding for any of the preceding purposes, (D) of the
        existence of any fact or the happening of any event that makes any
        statement of a material fact made in the Registration Statement, the
        Prospectus, any amendment or supplement thereto or any document
        incorporated by reference therein untrue, or that requires the making of
        any additions to or changes in the Registration Statement in order to
        make the statements therein, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH
        THEY WERE MADE, not misleading, or that requires the making of any
        additions to or changes in the Prospectus in order to make the
        statements therein, in the light of the circumstances under which they
        were made, not misleading;

                (ii) if any fact or event contemplated by Section 6(d)(i)(D)
        above shall exist or have occurred, prepare a supplement or
        post-effective amendment to the Registration Statement or related
        Prospectus or any document incorporated therein by reference or file any
        other required document so that, as thereafter delivered to the
        purchasers of Transfer Restricted Securities, the Prospectus will not
        contain an untrue statement of a material fact or omit to state any
        material fact necessary to make the statements therein, in the light of
        the circumstances under which they were made, not misleading;

                (iii) furnish to each Holder in connection with such exchange or
        sale, if any, before filing with the Commission, copies of any
        Registration Statement or any Prospectus included therein (except the
        Prospectus included in the Exchange Offer Registration Statement at the
        time it was declared effective) or any amendments or supplements to any
        such Registration Statement or Prospectus (including all documents
        incorporated by reference after the initial filing of such Registration
        Statement), which documents will be subject to the review and comment of
        such Holders in connection with such sale, if any, for a period of at
        least five business days, and the Company will not file any such
        Registration Statement or Prospectus or any amendment or supplement to
        any such Registration Statement or Prospectus (including all such
        documents incorporated by

                                       11
<PAGE>

        reference) to which such Holders shall reasonably object within five
        business days after the receipt thereof. With respect this Section
        6(d)(iii), a Holder shall be deemed to have reasonably objected to such
        filing if such Registration Statement, amendment, Prospectus or
        supplement, as applicable, as proposed to be filed, contains an untrue
        statement of a material fact or omits to state any material fact
        necessary to make the statements therein not misleading or fails to
        comply with the applicable requirements of the Act, except, in each
        case, where such untrue statement or omission of a material fact is made
        in any proposed Registration Statement, amendment, Prospectus or
        supplement, as applicable, in reliance upon and in conformity with
        written information furnished to the Company or any Guarantor by or on
        behalf of such Holder specifically for inclusion therein and the Company
        and each Guarantor have otherwise complied with this Section 6(d)(iii)
        with respect to such proposed Registration Statement, amendment,
        Prospectus or supplement, as applicable;

                (iv) promptly prior to the filing of any document that is to be
        incorporated by reference into AN EXCHANGE OFFER Registration Statement
        or Prospectus CONTAINED THEREIN, provide copies of such document to each
        Holder THAT IS AN INITIAL PURCHASER in connection with such exchange or
        sale, if any, make the Company's and the Guarantors' representatives
        available for discussion of such document and other customary due
        diligence matters, and include such information in such document prior
        to the filing thereof as such Holders THAT ARE INITIAL PURCHASERS may
        reasonably request;

                (v) subject to an express agreement of confidentiality, make
        available, at reasonable times, for inspection by each Holder and any
        attorney or accountant retained by such Holders, all financial and other
        records, pertinent corporate documents of the Company and the Guarantors
        and cause the Company's and the Guarantors' officers, directors and
        employees to supply all information reasonably requested by any such
        Holder, attorney or accountant in connection with such Registration
        Statement or any pre-effective amendment thereto subsequent to the
        filing thereof and prior to its effectiveness;

                (vi) if requested by any Holders in connection with such
        exchange or sale, promptly incorporate in any Registration Statement or
        Prospectus, pursuant to a supplement or post-effective amendment if
        necessary, such information as such Holders may reasonably request to
        have included therein, including, information relating to the "Plan of
        Distribution" of the Transfer Restricted Securities; and make all
        required filings of such Prospectus supplement or post-effective
        amendment as soon as practicable after the Company is notified of the
        matters to be included in such Prospectus supplement or post-effective
        amendment;

                (vii) furnish to each Holder in connection with such exchange or
        sale without charge, at least one copy of the Registration Statement, as
        first filed with the Commission, and of each amendment thereto,
        including all documents incorporated by reference therein and all
        exhibits (including exhibits incorporated therein by reference);

                (viii) deliver to each Holder without charge, as many copies of
        the Prospectus (including each preliminary prospectus) and any amendment
        or supplement thereto as

                                       12
<PAGE>

        such Persons reasonably may request; the Company and the Guarantors
        hereby consent to the use (in accordance with law) of the Prospectus and
        any amendment or supplement thereto by each selling Holder in connection
        with the offering and the sale of the Transfer Restricted Securities
        covered by the Prospectus or any amendment or supplement thereto;

                (ix) upon the request of any Holder, enter into such agreements
        (including underwriting agreements in a form customary for similar
        transactions) and make such representations and warranties and take all
        such other actions in connection therewith in order to expedite or
        facilitate the disposition of the Transfer Restricted Securities
        pursuant to any applicable Registration Statement contemplated by this
        Agreement as may be reasonably requested by any Holder in connection
        with any sale or resale pursuant to any applicable Registration
        Statement. In such connection, the Company and the Guarantors shall:

                        (A) upon request of any Holder, furnish (or in the case
                of paragraphs (2) and (3), use their respective commercially
                reasonable efforts to cause to be furnished) to each Holder,
                upon Consummation of the Exchange Offer or upon the
                effectiveness of the Shelf Registration Statement, as the case
                may be:

                                (1) a certificate, dated such date, signed on
                        behalf of the Company and each Guarantor by (x) the
                        President or any Vice President and (y) a principal
                        financial or accounting officer of the Company and such
                        Guarantor, confirming, as of the date thereof, the
                        matters set forth in Sections 2(h), 2(i) and 7(j) of the
                        Purchase Agreement and such other similar matters as
                        such Holders may reasonably request;

                                (2) an opinion, dated the date of Consummation
                        of the Exchange Offer or the date of effectiveness of
                        the Shelf Registration Statement, as the case may be, of
                        counsel for the Company and the Guarantors covering
                        matters similar to those set forth in paragraph (c) of
                        Section 7 of the Purchase Agreement and such other
                        matters as such Holder may request as are commercially
                        reasonable, and in any event including a statement to
                        the effect that such counsel has participated in
                        conferences with officers and other representatives of
                        the Company and the Guarantors and has considered the
                        matters required to be stated therein and the statements
                        contained therein, although such counsel has not
                        independently verified the accuracy, completeness or
                        fairness of such statements; and that such counsel
                        advises that, on the basis of the foregoing (relying as
                        to materiality upon facts provided to such counsel by
                        officers and other representatives of the Company and
                        without independent check or verification), no facts
                        came to such counsel's attention that caused such
                        counsel to believe that the applicable Registration
                        Statement, at the time such Registration Statement or
                        any post-effective amendment thereto became effective
                        and, in the case of the Exchange Offer Registration
                        Statement, as of the date of Consummation of the
                        Exchange Offer, contained an untrue statement of a
                        material fact or

                                       13
<PAGE>

                        omitted to state a material fact required to be stated
                        therein or necessary to make the statements, therein in
                        light of the circumstances under which they were made,
                        not misleading, or that the Prospectus contained in such
                        Registration Statement as of its date and, in the case
                        of the opinion dated the date of Consummation of the
                        Exchange Offer, as of the date of Consummation,
                        contained an untrue statement of a material fact or
                        omitted to state a material fact necessary in order to
                        make the statements therein, in the light of the
                        circumstances under which they were made, not
                        misleading. Without limiting the foregoing, such counsel
                        may state further that such counsel assumes no
                        responsibility for, and has not independently verified,
                        the accuracy, completeness or fairness of the financial
                        statements, notes and schedules and other financial and
                        accounting data included in any Registration Statement
                        contemplated by this Agreement or the related
                        Prospectus; and

                                (3) a customary comfort letter, dated the date
                        of Consummation of the Exchange Offer, or as of the date
                        of effectiveness of the Shelf Registration Statement, as
                        the case may be, from the Company's independent
                        accountants at such time, in the customary form and
                        covering matters of the type customarily covered in
                        comfort letters to underwriters in connection with
                        underwritten offerings, and affirming the matters set
                        forth in the comfort letters delivered pursuant to
                        Section 7(e) of the Purchase Agreement (provided, that
                        if such a letter is unable to be delivered by Arthur
                        Andersen LLP or another auditing firm of national
                        reputation, such a failure shall not result in a
                        violation of this Agreement if financial due diligence
                        with respect to the Company is completed in the
                        reasonable satisfaction of such Holder); and

                        (B) deliver such other documents and certificates as may
                be reasonably requested by the selling Holders to evidence
                compliance with the matters covered in clause (A) above and with
                any customary conditions contained in any agreement entered into
                by the Company and the Guarantors pursuant to this clause (ix);

                (x) prior to any public offering of Transfer Restricted
        Securities, cooperate with the selling Holders that are Initial
        Purchasers and their counsel in connection with the registration and
        qualification of the Transfer Restricted Securities under the securities
        or Blue Sky laws of such jurisdictions as the selling Holders may
        reasonably request and do any and all other acts or things reasonably
        necessary or advisable to enable the disposition in such jurisdictions
        of the Transfer Restricted Securities covered by the applicable
        Registration Statement; provided, however, that neither the Company nor
        any Guarantor shall be required to register or qualify as a foreign
        corporation where it is not now so qualified or to take any action that
        would subject it to the service of process in suits or to taxation,
        other than as to matters and transactions relating to the Registration
        Statement, in any jurisdiction where it is not now so subject; and

                                       14
<PAGE>

                (xi) provide promptly to each Holder, upon request, each
        document filed with the Commission pursuant to the requirements of
        Section 13 or Section 15(d) of the Exchange Act.

        (e) Restrictions on Holders. Each Holder's acquisition of a Transfer
Restricted Security constitutes such Holder's agreement that, upon receipt of
the notice referred to in Section 6(d)(i)(C) or any notice from the Company of
the existence of any fact of the kind described in Section 6(d)(i)(D) hereof (in
each case, a "SUSPENSION NOTICE"), such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable
Registration Statement until (i) such Holder has received copies of the
supplemented or amended Prospectus contemplated by Section 6(d)(ii) hereof, or
(ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the "RECOMMENCEMENT DATE"). Each Holder receiving a Suspension Notice
shall be required to either (i) destroy any Offering Memoranda, other than
permanent file copies, then in such Holder's possession which have been replaced
by the Company with more recently dated Offering Memoranda or (ii) deliver to
the Company (at the Company's expense) all copies, other than permanent file
copies, then in such Holder's possession of the Prospectus covering such
Transfer Restricted Securities that was current at the time of receipt of the
Suspension Notice. The time period regarding the effectiveness of such
Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall
be extended by a number of days equal to the number of days in the period from
and including the date of delivery of the Suspension Notice to the
Recommencement Date.

SECTION 7. REGISTRATION EXPENSES

        (a) All expenses incident to the Company's and the Guarantors'
performance of or compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement becomes effective, including
without limitation: (i) all registration and filing fees and expenses; (ii) all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (iii) all expenses of printing (including certificates for the
Exchange Notes to be issued in the Exchange Offer and printing of Prospectuses,
messenger and delivery services and telephone; (iv) all fees and disbursements
of counsel for the Company, the Guarantors and one counsel for the Holders of
Transfer Restricted Securities which shall be Latham & Watkins or such other
counsel as may be selected by a majority of such Holders; (v) all application
and filing fees in connection with listing the Exchange Notes on a national
securities exchange or automated quotation system pursuant to the requirements
hereof; and (vi) all fees and disbursements of independent certified public
accountants of the Company and the Guarantors (including the expenses of any
special audit and comfort letters required by or incident to such performance).

        The Company will, in any event, bear its and the Guarantors' internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expenses of
any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.

                                       15
<PAGE>

        (b) In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company and the Guarantors
will reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities who are tendering Notes into in the Exchange Offer and/or selling or
reselling Notes or Exchange Notes pursuant to the "Plan of Distribution"
contained in the Exchange Offer Registration Statement or the Shelf Registration
Statement, as applicable, for the reasonable fees and disbursements of not more
than one counsel, who shall be Latham & Watkins unless another firm shall be
chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared.

SECTION 8. INDEMNIFICATION

        (a) The Company and the Guarantors agree, jointly and severally, to
indemnify and hold harmless each Holder, its directors, officers and each
Person, if any, who controls such Holder (within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act), from and against any and all losses,
claims, damages, liabilities, judgments, (including without limitation, any
reasonable legal or other expenses incurred in connection with investigating or
defending any matter, including any action that could give rise to any such
losses, claims, damages, liabilities or judgments) caused by any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement, preliminary prospectus or Prospectus (or any amendment
or supplement thereto) provided by the Company to any Holder or any prospective
purchaser of Exchange Notes or registered Notes, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, provided, however,
that the Company and the Guarantors shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, any untrue statement or alleged untrue statement or omission or
alleged omission made in any such Registration Statement or any Prospectus
forming part thereof or in any such amendment or supplement in reliance upon and
in conformity with written information relating to any of the Holders furnished
in writing to the Company or any Guarantor by or on behalf of any Holder
specifically for inclusion therein.

        (b) By its acquisition of Transfer Restricted Securities, each Holder of
Transfer Restricted Securities agrees, severally and not jointly, to indemnify
and hold harmless the Company and the Guarantors, and their respective directors
and officers, and each person, if any, who controls (within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act) the Company or the
Guarantors to the same extent as the foregoing indemnity from the Company and
the Guarantors set forth in section (a) above, but only with reference to
information relating to such Holder furnished in writing to the Company by such
Holder expressly for use in any Registration Statement. In no event shall any
Holder, its directors, officers or any Person who controls such Holder be liable
or responsible for any amount in excess of the amount by which the total amount
received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities and (ii) the amount of any
damages that such Holder, its directors, officers or any Person who controls
such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

                                       16
<PAGE>

        (c) In case any action shall be commenced involving any person in
respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING PERSON") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 8(a) and 8(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 8(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised in writing by such
counsel that there may be one or more legal defenses available to it which are
different from or additional to those available to the indemnifying party (in
which case the indemnifying party shall not have the right to assume the defense
of such action on behalf of the indemnified party). In any such case, the
indemnifying party shall not, in connection with any one action or separate but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) for all indemnified parties and all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by a
majority of the Holders, in the case of the parties indemnified pursuant to
Section 8(a), and by the Company and the Guarantors, in the case of parties
indemnified pursuant to Section 8(b). The indemnifying party shall indemnify and
hold harmless the indemnified party from and against any and all losses, claims,
damages, liabilities and judgments by reason of any settlement of any action (i)
effected with its written consent or (ii) effected without its written consent
if the settlement is entered into more than 30 business days after the
indemnifying party shall have received a request from the indemnified party for
reimbursement for the fees and expenses of counsel (in any case where such fees
and expenses are at the expense of the indemnifying party) and, prior to the
date of such settlement, the indemnifying party shall have failed to comply with
such reimbursement request. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement or compromise
of, or consent to the entry of judgment with respect to, any pending or
threatened action in respect of which the indemnified party is or could have
been a party and indemnity or contribution may be or could have been sought
hereunder by the indemnified party, unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability on claims that are or could have been the subject matter of such
action and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of the indemnified party.

        (d) To the extent that the indemnification provided for in this Section
8 is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or judgments referred to therein, then each indemnifying
party, in lieu of indemnifying such

                                       17
<PAGE>

indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or
judgments (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors on the one hand, and the
Holders, on the other hand, from their initial sale of Transfer Restricted
Securities (or in the case of Exchange Notes that are Transfer Restricted
Securities, the sale of the Notes for which such Exchange Notes were exchanged)
or (ii) if the allocation provided by clause 8(d)(i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause 8(d)(i) above but also the relative
fault of the Company and the Guarantors, on the one hand, and of the Holder, on
the other hand, in connection with the statements or omissions which resulted in
such losses, claims, damages, liabilities or judgments, as well as any other
relevant equitable considerations. The relative fault of the Company and the
Guarantors, on the one hand, and of the Holder, on the other hand, shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or such
Guarantor, on the one hand, or by the Holder, on the other hand, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities and judgments
referred to above shall be deemed to include, subject to the limitations set
forth in the second paragraph of Section 8(a), any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or
defending any action or claim.

        The Company, the Guarantors and, by its acquisition of Transfer
Restricted Securities, each Holder agree that it would not be just and equitable
if contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any matter, including any action
that could have given rise to such losses, claims, damages, liabilities or
judgments. Notwithstanding the provisions of this Section 8, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute pursuant to this Section 8(d) are several in
proportion to the respective principal amount of Transfer Restricted Securities
held by each Holder hereunder and not joint.

                                       18
<PAGE>

SECTION 9. RULE 144A AND RULE 144

        The Company and each Guarantor agrees with each Holder, for so long as
any Transfer Restricted Securities remain outstanding and during any period in
which the Company or such Guarantor (i) is not subject to Section 13 or 15(d) of
the Exchange Act, to make available, upon request of any Holder, to such Holder
or beneficial owner of Transfer Restricted Securities in connection with any
sale thereof and any prospective purchaser of such Transfer Restricted
Securities designated by such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to
Section 13 or 15(d) of the Exchange Act, to use its commercially reasonable
efforts to make all filings required thereby in a timely manner in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144.

SECTION 10. MISCELLANEOUS

        (a) Remedies. The Company and the Guarantors acknowledge and agree that
any failure by the Company and/or the Guarantors to comply with their respective
obligations under Sections 3 and 4 hereof may result in material irreparable
injury to the Initial Purchasers or the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchasers or
any Holder may obtain such relief as may be required to specifically enforce the
Company's and the Guarantor's obligations under Sections 3 and 4 hereof. The
Company and the Guarantors further agree to waive the defense in any action for
specific performance that a remedy at law would be adequate.

        (b) No Inconsistent Agreements. The Company and the Guarantors will not,
on or after the date of this Agreement, enter into any agreement with respect to
its their respective securities that is inconsistent with the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions hereof
The Company and the Guarantors have not previously entered into any agreement
granting any registration rights with respect to their respective securities to
any Person that would require such securities to be included in any Registration
Statement filed hereunder. The rights granted to the Holders hereunder do not in
any way conflict with and are not inconsistent with the rights granted to the
holders of the Company's and the Guarantors' securities under any agreement in
effect on the date hereof.

        (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless (i) in the case of Section 5
hereof and this Section 10(c)(i), the Company has obtained the written consent
of Holders of all outstanding Transfer Restricted Securities and (ii) in the
case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose Transfer Restricted Securities are being tendered pursuant to
the Exchange Offer, and that does not affect directly or indirectly the rights
of other Holders whose Transfer Restricted Securities are not being tendered
pursuant to

                                       19
<PAGE>

such Exchange Offer, may be given by the Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities subject to such
Exchange Offer.

        (d) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent they may
deem such enforcement necessary or advisable to protect their rights hereunder.

        (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

                (i) if to a Holder, at the address set forth on the records of
        the Registrar under the Indenture, with a copy to the Registrar under
        the Indenture; and

                (ii) if to the Company or any of the Guarantors:

                     Corrections Corporation of America
                     10 Burton Hills Boulevard
                     Nashville, Tennessee 37215
                     Attention: Irving E. Lingo, Jr.
                     Facsimile: (615) 263-3170

                     with a copy to

                     Stokes Bartholomew Evans & Petree P.A.
                     424 Church Street, Suite 2800
                     Nashville, Tennessee 37219
                     Attention: Elizabeth E. Moore, Esq.
                     Facsimile: (615) 259-1470

        All such notices and communications shall be deemed to have been duly
given at the time delivered by hand; when receipt acknowledged, if sent by mail;
when receipt acknowledged, if telecopied; and on the next business day, if
timely delivered to an air courier guaranteeing overnight delivery.

        Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

        (f) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties, including
without limitation and without the need for an express assignment, subsequent
Holders; provided, that nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Transfer Restricted Securities in violation of
the terms hereof or of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be

                                       20
<PAGE>

held subject to all of the terms of this Agreement, and by taking and holding
such Transfer Restricted Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such Person shall be entitled to
receive the benefits hereof.

        (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

        (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

        (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

        (j) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

        (k) Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

                                       21
<PAGE>

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

                           CORRECTIONS CORPORATION OF AMERICA

                           By:   /s/ John D. Ferguson
                                 --------------------------------------------
                                 Name:  John D. Ferguson
                                 Title: Chief Executive Officer and President

                           CCA OF TENNESSEE, INC.

                           By:   /s/ Irving E. Lingo, Jr.
                                 --------------------------------------------
                                 Name:  Irving E. Lingo, Jr.
                                 Title: Executive Vice President and
                                        Chief Financial Officer

                           PRISON REALTY MANAGEMENT, INC.

                           By:   /s/ Irving E. Lingo, Jr.
                                 --------------------------------------------
                                 Name:  Irving E. Lingo, Jr.
                                 Title: Executive Vice President and
                                        Chief Financial Officer

                           CCA INTERNATIONAL, INC.

                           By:   /s/ Irving E. Lingo, Jr.
                                 --------------------------------------------
                                 Name:  Irving E. Lingo, Jr.
                                 Title: Executive Vice President and
                                        Chief Financial Officer

                                       22
<PAGE>

                               TECHNICAL AND BUSINESS INSTITUTE OF AMERICA, INC.

                               By:   /s/ Irving E. Lingo, Jr.
                                     -------------------------------------------
                                     Name:  Irving E. Lingo, Jr.
                                     Title: Executive Vice President and
                                            Chief Financial Officer

                               TRANSCOR AMERICA, LLC

                               By:   /s/ Todd Mullenger
                                     -------------------------------------------
                                     Name:  Todd Mullenger
                                     Title: Vice President, Treasurer

                                       23

<PAGE>

LEHMAN BROTHERS INC.
DEUTSCHE BANK SECURITIES INC.
UBS WARBURG LLC
SG COWEN SECURITIES CORPORATION
BB&T CAPITAL MARKETS, A DIVISION OF
    SCOTT AND STRONGFELLOW, INC.
FIRST ANALYSIS SECURITIES CORPORATION
JEFFERIES AND COMPANY, INC.
MCDONALD INVESTMENTS INC.
MORGAN LEWIS GUTHENS & AHN, INC.
SOUTHTRUST SECURITIES, INC.,
AS THE INITIAL PURCHASERS

By LEHMAN BROTHERS INC., as Authorized Representative

By:    /s/ Edward Conway
      -----------------------------------------------
      Name: Edward Conway
      Title: Managing Director

                                       24
<PAGE>

                                   SCHEDULE A

GUARANTORS

CCA of Tennessee, Inc.
Prison Realty Management, Inc.
CCA International, Inc.
Technical and Business Institute of America, Inc.
Transcor America, LLC

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