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                                                                   EXHIBIT 10.17

                                                                      EXHIBIT XI

                                PLEDGE AGREEMENT

               PLEDGE AGREEMENT (as amended, modified or supplemented from time
to time, this "Agreement"), dated as of July 29, 2002, made by each of the
undersigned pledgors (each a "Pledgor" and, together with any other entity that
becomes a pledgor hereunder pursuant to Section 30 hereof, the "Pledgors") to
JPMorgan Chase Bank, as Collateral Agent (together with any successor Collateral
Agent, the "Pledgee"), for the benefit of the Secured Creditors (as defined
below). Except as otherwise defined herein, capitalized terms used herein and
defined in the Credit Agreement (as defined below) shall be used herein as
therein defined.

                              W I T N E S S E T H :

               WHEREAS, Domino's, Inc., a Delaware corporation ("Domino's" or
"Company"), Domino's Franchise Holding Co. (f/k/a Bluefence, Inc.), a Michigan
corporation ("Subsidiary Borrower" and, together with Company, each "Borrower"
and, collectively, "Borrowers"), TISM, Inc., a Michigan corporation, the Lenders
from time to time party thereto, J.P. Morgan Securities Inc., as Arranger,
JPMorgan Chase Bank, as Administrative Agent for Lenders (in such capacity and
together with any successor Administrative Agent, "Administrative Agent"), Bank
One, NA, as Syndication Agent and Comerica Bank, as Documentation Agent, have
entered into a Credit Agreement, dated as of July 29, 2002 (as amended, modified
or supplemented from time to time, the "Credit Agreement"), providing for the
making of Loans to the Borrowers, and the issuance of Letters of Credit for the
joint and several account of the Borrowers, in each case as contemplated therein
(the Lenders, the Administrative Agent, the Documentation Agent, the Syndication
Agent, the Issuing Lenders and the Pledgee are herein called the "Lender
Creditors");

               WHEREAS, the Borrowers or any Subsidiary thereof may at any time
and from time to time enter into or maintain one or more Interest Rate
Agreements and Currency Agreements (collectively, together with the Existing
Swap Agreement, the "Secured Hedging Agreements") with one or more Lenders or
any affiliate thereof (each such Lender or affiliate, even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any
reason, together with such Lender's or affiliate's successors and assigns, are
herein called the "Other Creditors," and, together with the Lender Creditors,
are herein called the "Secured Creditors");

               WHEREAS, pursuant to the Subsidiaries Guaranty, each Pledgor that
is a party thereto has guaranteed to the Secured Creditors the payment when due
of all Obligations as described in such Subsidiaries Guaranty;

               WHEREAS, pursuant to the Holdings Guaranty, Holdings has
unconditionally guaranteed to the Guaranteed Creditors the payment when due of
all Guaranteed Obligations as described therein;

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               WHEREAS, it is a condition precedent to the making of Loans and
the issuance of Letters of Credit under the Credit Agreement that each Pledgor
shall have executed and delivered to the Pledgee this Agreement; and

               WHEREAS, each Pledgor will obtain benefits from the incurrence of
Loans by, and the issuance of, and participation in, Letters of Credit under the
Credit Agreement and the entering into and maintaining of Secured Hedging
Agreements and, accordingly, each Pledgor desires to enter into this Agreement
in order to satisfy the condition described in the preceding paragraph;

               NOW, THEREFORE, in consideration of the benefits accruing to each
Pledgor, the receipt and sufficiency of which are hereby acknowledged, each
Pledgor hereby makes the following representations and warranties to the Pledgee
for the benefit of the Secured Creditors and hereby covenants and agrees with
the Pledgee for the benefit of the Secured Creditors as follows:

               1. SECURITY FOR OBLIGATIONS. This Agreement is made by each
Pledgor for the benefit of the Secured Creditors to secure:

               (i)    the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations,
         liabilities and indebtedness (including, without limitation, principal,
         premium, interest (including, without limitation, all interest that
         accrues after the commencement of any case, proceeding or other action
         relating to the bankruptcy, insolvency, reorganization or similar
         proceeding of any Pledgor or any Subsidiary thereof at the rate
         provided for in the respective documentation, whether or not a claim
         for post-petition interest is allowed in any such proceeding),
         reimbursement obligations under Letters of Credit, fees, costs and
         indemnities) of such Pledgor to the Lender Creditors, whether now
         existing or hereafter incurred under, arising out of, or in connection
         with, the Credit Agreement and the other Loan Documents to which such
         Pledgor is a party (including, in the case of each Pledgor that is a
         Guarantor, all such obligations, liabilities and indebtedness of such
         Pledgor under the Subsidiaries Guaranty to which it is a party) and the
         due performance and compliance by such Pledgor with all of the terms,
         conditions and agreements contained in the Credit Agreement and in such
         other Loan Documents (all such obligations, liabilities and
         indebtedness under this clause (i), except to the extent consisting of
         obligations, liabilities or indebtedness with respect to Secured
         Hedging Agreements entitled to the benefits of this Agreement, being
         herein collectively called the "Loan Document Obligations");

               (ii)   the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations,
         liabilities and indebtedness (including, without limitation, all
         interest that accrues after the commencement of any case, proceeding or
         other action relating to the bankruptcy, insolvency, reorganization or
         similar proceeding of any Pledgor at the rate provided for in the
         respective documentation, whether or not a claim for post-petition
         interest is allowed in any such proceeding), owing by such Pledgor to
         the Other Creditors under, or with respect to (including, in the case
         of each Pledgor that is a Guarantor, all such obligations, liabilities
         and indebtedness of such Pledgor under the Subsidiaries Guaranty), any
         Secured Hedging Agreement entitled to

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         the benefits of this Agreement, whether such Secured Hedging Agreement
         is now in existence or hereafter arising, and the due performance and
         compliance by such Pledgor with all of the terms, conditions and
         agreements contained therein (all such obligations, liabilities and
         indebtedness described in this clause (ii) being herein collectively
         called the "Other Obligations");

               (iii)  any and all sums advanced by the Pledgee in order to
         preserve the Collateral (as hereinafter defined) or preserve its
         security interest in the Collateral;

               (iv)   in the event of any proceeding for the collection or
         enforcement of any indebtedness, obligations or liabilities of such
         Pledgor referred to in clauses (i) and (ii) above, after an Event of
         Default (which term as used herein shall mean any Event of Default
         under, and as defined in, the Credit Agreement or any payment default
         upon the expiration of any applicable grace period by the Borrowers
         under any Secured Hedging Agreements) shall have occurred and be
         continuing, the reasonable expenses of retaking, holding, preparing for
         sale or lease, selling or otherwise disposing of or realizing on the
         Collateral, or of any exercise by the Pledgee of its rights hereunder,
         together with reasonable attorneys' fees and court costs;

               (v)    all amounts paid by any Indemnitee as to which such
         Indemnitee has the right to reimbursement under Section 11 of this
         Agreement; and

               (vi)   all amounts owing to any Agent or any of its affiliates
         pursuant to any of the Loan Documents in its capacity as such;

all such indebtedness, obligations, liabilities, sums and expenses set forth in
clauses (i) through (vi) of this Section 1 being herein collectively called the
"Obligations," it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the types described above, whether outstanding
on the date of this Agreement or extended from time to time after the date of
this Agreement.

               2. DEFINITIONS. (a) Unless otherwise defined herein, all
capitalized terms used herein and defined in the Credit Agreement shall be used
herein as therein defined. Reference to singular terms shall include the plural
and vice versa.

               (b)    The following capitalized terms used herein shall have the
definitions specified below:

               "Administrative Agent" has the meaning set forth in the Recitals
hereto.

               "Adverse Claim" has the meaning given such term in Section
8-102(a)(1) of the UCC.

               "Agreement" has the meaning set forth in the first paragraph
hereof.

               "Borrower" shall have the meaning provided in the Recitals
hereto.

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               "Certificated Security" has the meaning given such term in
Section 8-102(a)(4) of the UCC.

               "Class" has the meaning set forth in Section 22 hereof.

               "Clearing Corporation" has the meaning given such term in Section
8-102(a)(5) of the UCC.

               "Collateral" has the meaning set forth in Section 3.1 hereof.

               "Collateral Accounts" means any and all accounts established and
maintained by the Pledgee in the name of any Pledgor to which Collateral may be
credited.

               "Credit Agreement" has the meaning set forth in the Recitals
hereto.

               "Domestic Corporation" has the meaning set forth in the
definition of "Stock".

               "Event of Default" has the meaning set forth in Section 1 hereof.

               "Excluded Foreign Entity" means any corporation, partnership
(general or limited), limited liability company or other business entity (x)
that is organized under the laws of any country, state or province other than
the United States, Canada, Bermuda or any state, province or territory thereof
and (y) the book value of the gross assets of which do not exceed $1,000,000.

               "Financial Asset" has the meaning given such term in Section
8-102(a)(9) of the UCC.

               "Foreign Corporation" has the meaning set forth in the definition
of "Stock".

               "Indemnitees" has the meaning set forth in Section 11 hereof.

               "Instrument" has the meaning given such term in Section
9-102(a)(47) of the UCC.

               "Investment Property" has the meaning given such term in Section
9-102(a)(49) of the UCC.

               "Lender Creditors" has the meaning set forth in the Recitals
hereto.

               "Lenders" has the meaning set forth in the Recitals hereto.

               "Limited Liability Company Assets" means all assets, whether
tangible or intangible and whether real, personal or mixed (including, without
limitation, all limited liability company capital and interest in other limited
liability companies), at any time owned or represented by any Limited Liability
Company Interest.

               "Limited Liability Company Interests" means the entire limited
liability company membership interest at any time owned by any Pledgor in any
limited liability company (other

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than an Excluded Foreign Entity); provided that the term "Limited Liability
Company Interest" shall not include any limited liability company membership
interest in any limited liability company that is not a Subsidiary of any
Pledgor to the extent (and only for so long as) the limited liability company
agreement or operating agreement for such limited liability company or
applicable law prohibits the assignment of, or granting of a security interest
in, the limited liability company membership interests of such limited liability
company and such prohibitions are not rendered invalid by Section 9-406 or
Section 9-408 of the UCC, it being understood and agreed, however, any such
excluded limited liability company membership interest shall otherwise be
subject to the security interests created by this Agreement (and shall become a
"Limited Liability Company Interest" for all purposes of this Agreement) upon
the receipt by the respective Pledgor of any necessary approvals or waivers
permitting the assignment thereof or the granting of a security interest
therein.

               "Loan Document Obligations" has the meaning set forth in Section
1 hereof.

               "Location" of any Pledgor has the meaning given such term in
Section 9-307 of the UCC.

               "Non-Voting Stock" means all capital stock of any Foreign
Subsidiary which is not Voting Stock.

               "Notes" means (x) all intercompany notes at any time issued to
each Pledgor and (y) all other promissory notes from time to time issued to, or
held by, each Pledgor.

               "Obligations" has the meaning set forth in Section 1 hereof.

               "Other Creditors" has the meaning set forth in the Recitals
hereto.

               "Other Obligations" has the meaning set forth in Section 1
hereof.

               "Partnership Assets" means all assets, whether tangible or
intangible and whether real, personal or mixed (including, without limitation,
all partnership capital and interest in other partnerships), at any time owned
or represented by any Partnership Interest.

               "Partnership Interest" means the entire general partnership
interest or limited partnership interest at any time owned by any Pledgor in any
general partnership or limited partnership (other than Excluded Foreign
Entities); provided that the term "Partnership Interest" shall not include any
partnership interest (general or limited) in any partnership that is not a
Subsidiary of any Pledgor to the extent (and only for so long as) the
partnership agreement for such partnership or applicable law prohibits the
assignment of, or granting of a security interest in, the partnership interests
of such partnership and such prohibitions are not rendered invalid by Section
9-406 or Section 9-408 of the UCC, it being understood and agreed, however, any
such excluded partnership interest shall otherwise be subject to the security
interests created by this Agreement (and shall become a "Partnership Interest"
for all purposes of this Agreement) upon the receipt by the respective Pledgor
of any necessary approvals or waivers permitting the assignment thereof or the
granting of a security interest therein.

               "Pledged Notes" has the meaning set forth in Section 3.5 hereof.

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               "Pledgee" has the meaning set forth in the first paragraph
hereof.

               "Pledgor" has the meaning set forth in the first paragraph
hereof.

               "Proceeds" has the meaning given such term in Section
9-102(a)(64) of the UCC.

               "Registered Organization" has the meaning given such term in
Section 9-102(a)(70) of the UCC.

               "Requisite Creditors" has the meaning set forth in Section 22
hereof.

               "Requisite Lenders" has the meaning given such term in the Credit
Agreement.

               "Secured Creditors" has the meaning set forth in the Recitals
hereto.

               "Secured Debt Agreements" has the meaning set forth in Section 5
hereof.

               "Secured Hedging Agreement" shall have the meaning provided in
the recitals of this Agreement.

               "Securities Account" has the meaning given such term in Section
8-501(a) of the UCC.

               "Securities Act" means the Securities Act of 1933, as amended, as
in effect from time to time.

               "Security" and "Securities" has the meaning given such term in
Section 8-102(a)(15) of the UCC and shall in any event also include all Stock
and all Notes but excludes Securities issued by Excluded Foreign Entities and
the Excluded Non-Profit Subsidiary.

               "Security Entitlement" has the meaning given such term in Section
8-102(a)(17) of the UCC.

               "Specified Collateral Event" has the meaning provided in the
Security Agreement.

               "Stock" means (x) with respect to corporations incorporated under
the laws of the United States or any State or territory thereof or the District
of Columbia (other than the Excluded Non-Profit Subsidiary) (each a "Domestic
Corporation"), all of the issued and outstanding shares of capital stock of any
corporation at any time owned by any Pledgor of any Domestic Corporation and (y)
with respect to corporations not Domestic Corporations or Excluded Foreign
Entities (each a "Foreign Corporation"), all of the issued and outstanding
shares of capital stock at any time owned by any Pledgor of any such Foreign
Corporation.

               "Termination Date" has the meaning set forth in Section 20
hereof.

               "Transmitting Utility" has the meaning given such term in Section
9-102(a)(80) of the UCC.

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               "UCC" means the Uniform Commercial Code as in effect in the State
of New York from time to time; provided that all references herein to specific
sections or subsections of the UCC are references to such sections or
subsections, as the case may be, of the Uniform Commercial Code as in effect in
the State of New York on the date hereof.

               "Uncertificated Security" has the meaning given such term in
Section 8-102(a)(18) of the UCC.

               "Voting Stock" means all classes of capital stock of any Foreign
Corporation entitled to vote.

               3. PLEDGE OF SECURITIES, ETC.

               3.1    Pledge. To secure the Obligations now or hereafter owed
or to be performed by such Pledgor, each Pledgor does hereby grant, pledge and
assign to the Pledgee for the benefit of the Secured Creditors, and does hereby
create a continuing security interest (subject to those Liens permitted to exist
with respect to the Collateral pursuant to the terms of all Secured Debt
Agreements then in effect) in favor of the Pledgee for the benefit of the
Secured Creditors in, all of the right, title and interest in and to the
following, whether now existing or hereafter from time to time acquired
(collectively, the "Collateral"):

               (a)    each of the Collateral Accounts (to the extent a security
         interest therein is not created pursuant to the Security Agreement),
         including any and all assets of whatever type or kind deposited by such
         Pledgor in any such Collateral Account, whether now owned or hereafter
         acquired, existing or arising, including, without limitation, all
         Financial Assets, Investment Property, monies, checks, drafts,
         Instruments, Securities or interests therein of any type or nature
         deposited or required by the Credit Agreement or any other Secured Debt
         Agreement to be deposited in such Collateral Account, and all
         investments and all certificates and other Instruments (including
         depository receipts, if any) from time to time representing or
         evidencing the same, and all dividends, interest, distributions, cash
         and other property from time to time received, receivable or otherwise
         distributed in respect of or in exchange for any or all of the
         foregoing;

               (b)    all Securities of such Pledgor from time to time and all
         options and warrants owned by such Pledgor from time to time to
         purchase Securities;

               (c)    all Limited Liability Company Interests of such Pledgor
         from time to time and all of its right, title and interest in each
         limited liability company to which each such interest relates, whether
         now existing or hereafter acquired, including, without limitation:

                      (A)  all the capital thereof and its interest in all
               profits, losses, Limited Liability Company Assets and other
               distributions to which such Pledgor shall at any time be entitled
               in respect of such Limited Liability Company Interests;

                      (B)  all other payments due or to become due to such
               Pledgor in respect of Limited Liability Company Interests,
               whether under any limited liability company agreement or
               otherwise, whether as contractual obligations, damages, insurance
               proceeds or otherwise;

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                      (C)  all of its claims, rights, powers, privileges,
               authority, options, security interests, liens and remedies, if
               any, under any limited liability company agreement or operating
               agreement, or at law or otherwise in respect of such Limited
               Liability Company Interests;

                      (D)  all present and future claims, if any, of such
               Pledgor against any such limited liability company for monies
               loaned or advanced, for services rendered or otherwise;

                      (E)  all of such Pledgor's rights under any limited
               liability company agreement or operating agreement or at law to
               exercise and enforce every right, power, remedy, authority,
               option and privilege of such Pledgor relating to such Limited
               Liability Company Interests, including any power to terminate,
               cancel or modify any limited liability company agreement or
               operating agreement, to execute any instruments and to take any
               and all other action on behalf of and in the name of any of such
               Pledgor in respect of such Limited Liability Company Interests
               and any such limited liability company, to make determinations,
               to exercise any election (including, but not limited to, election
               of remedies) or option or to give or receive any notice, consent,
               amendment, waiver or approval, together with full power and
               authority to demand, receive, enforce, collect or receipt for any
               of the foregoing or for any Limited Liability Company Asset, to
               enforce or execute any checks, or other instruments or orders, to
               file any claims and to take any action in connection with any of
               the foregoing; and

                      (F)  all other property hereafter delivered in
               substitution for or in addition to any of the foregoing, all
               certificates and instruments representing or evidencing such
               other property and all cash, securities, interest, dividends,
               rights and other property at any time and from time to time
               received, receivable or otherwise distributed in respect of or in
               exchange for any or all thereof;

               (d)    all Partnership Interests of such Pledgor from time to
         time and all of its right, title and interest in each partnership to
         which each such interest relates, whether now existing or hereafter
         acquired, including, without limitation:

                      (A)  all the capital thereof and its interest in all
               profits, losses, Partnership Assets and other distributions to
               which such Pledgor shall at any time be entitled in respect of
               such Partnership Interests;

                      (B)  all other payments due or to become due to such
               Pledgor in respect of Partnership Interests, whether under any
               partnership agreement or otherwise, whether as contractual
               obligations, damages, insurance proceeds or otherwise;

                      (C)  all of its claims, rights, powers, privileges,
               authority, options, security interests, liens and remedies, if
               any, under any partnership agreement or operating agreement, or
               at law or otherwise in respect of such Partnership Interests;

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                      (D)  all present and future claims, if any, of such
               Pledgor against any such partnership for monies loaned or
               advanced, for services rendered or otherwise;

                      (E)  all of such Pledgor's rights under any partnership
               agreement or operating agreement or at law to exercise and
               enforce every right, power, remedy, authority, option and
               privilege of such Pledgor relating to such Partnership Interests,
               including any power to terminate, cancel or modify any
               partnership agreement or operating agreement, to execute any
               instruments and to take any and all other action on behalf of and
               in the name of any Pledgor in respect of such Partnership
               Interests and any such partnership, to make determinations, to
               exercise any election (including, but not limited to, election of
               remedies) or option or to give or receive any notice, consent,
               amendment, waiver or approval, together with full power and
               authority to demand, receive, enforce, collect or receipt for any
               of the foregoing or for any Partnership Asset, to enforce or
               execute any checks, or other instruments or orders, to file any
               claims and to take any action in connection with any of the
               foregoing (with all of the foregoing rights only to be
               exercisable upon the occurrence and during the continuation of an
               Event of Default); and

                      (F)  all other property hereafter delivered in
               substitution for or in addition to any of the foregoing, all
               certificates and instruments representing or evidencing such
               other property and all cash, securities, interest, dividends,
               rights and other property at any time and from time to time
               received, receivable or otherwise distributed in respect of or in
               exchange for any or all thereof;

               (e)    all Security Entitlements of such Pledgor from time to
         time in any and all of the foregoing;

               (f)    all Financial Assets and Investment Property of such
         Pledgor from time to time; and

               (g)    all Proceeds of any and all of the foregoing.

               Notwithstanding anything to the contrary contained in this
Section 3.1 or in Section 3.3 hereof, (x) except as otherwise provided in
subsection 6.11 of the Credit Agreement no Pledgor (to the extent that it is a
Borrower or a Domestic Subsidiary of Holdings) shall be required at any time to
pledge hereunder (and the Collateral of such Pledgor shall not include) more
than 65% of the Voting Stock of any Foreign Corporation and (y) so long as it
does not cause any materially adverse tax consequences to Holdings or any of its
Subsidiaries, each Pledgor shall be required to pledge hereunder 100% of any
Non-Voting Stock at any time and from time to time acquired by such Pledgor of
any Foreign Corporation.

               3.2    Procedures. (a) To the extent that any Pledgor at any
time or from time to time owns, acquires or obtains any right, title or interest
in any Collateral, such Collateral shall automatically (and without the taking
of any action by the respective Pledgor) be pledged pursuant to Section 3.1 of
this Agreement and, in addition thereto, such Pledgor shall (to the extent

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provided below) take the following actions as set forth below (as promptly as
practicable and, in any event, within 30 days after it obtains such Collateral)
for the benefit of the Pledgee and the other Secured Creditors:

               (i)    with respect to a Certificated Security (other than a
         Certificated Security credited on the books of a Clearing Corporation),
         the respective Pledgor shall physically deliver such Certificated
         Security to the Pledgee, endorsed to the Pledgee or endorsed in blank;

               (ii)   with respect to an Uncertificated Security (other than an
         Uncertificated Security credited on the books of a Clearing
         Corporation), upon the occurrence and continuation of a Specified
         Collateral Event or an Event of Default and if requested by the
         Collateral Agent, the respective Pledgor shall cause the issuer of such
         Uncertificated Security (or, in the case of an issuer that is not a
         Subsidiary of such Pledgor, will use its best efforts to cause such
         issuer) to duly authorize, execute and deliver to the Pledgee an
         agreement for the benefit of the Pledgee and the other Secured Parties
         substantially in the form of Exhibit A hereto (appropriately completed
         to the satisfaction of the Pledgee and with such modifications, if any,
         as shall be satisfactory to the Pledgee) pursuant to which such issuer
         agrees to comply with any and all instructions originated by the
         Pledgee without further consent by the registered owner and not to
         comply with instructions regarding such Uncertificated Security (and
         any Partnership Interests and Limited Liability Company Interests
         issued by such issuer) originated by any other Person other than a
         court of competent jurisdiction; provided that Pledgee hereby agrees
         that it will not provide any instructions to any such issuer unless and
         until an Event of Default has occurred and is continuing;

               (iii)  with respect to a Certificated Security, Uncertificated
         Security, Partnership Interest or Limited Liability Company Interest
         credited on the books of a Clearing Corporation (including a Federal
         Reserve Bank, Participants Trust Company or The Depository Trust
         Company), the respective Pledgor shall notify the Pledgee thereof and
         shall take all actions required (i) to comply with the applicable rules
         of such Clearing Corporation and (ii) upon the occurrence and
         continuation of a Specified Collateral Event or an Event of Default and
         if requested by the Collateral Agent, to perfect the security interest
         of the Pledgee under applicable law (including, in any event, under
         Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC). Each
         such Pledgor further agrees to take such actions as the Pledgee deems
         reasonably necessary or desirable to effect the foregoing;

               (iv)   with respect to a Partnership Interest or a Limited
         Liability Company Interest (other than a Partnership Interest or
         Limited Liability Company Interest credited on the books of a Clearing
         Corporation), (1) if such Partnership Interest or Limited Liability
         Company Interest is represented by a certificate and is a Security for
         purposes of the UCC, the procedure set forth in Section 3.2(a)(i)
         hereof, and (2) if such Partnership Interest or Limited Liability
         Company Interest is not represented by a certificate or is not a
         Security for purposes of the UCC, the procedure set forth in Section
         3.2(a)(ii) hereof;

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               (v)    with respect to any Note (other than, to the extent no
         Event of Default has occurred and is continuing, a Note that
         constitutes Chattel Paper or any Note evidencing an aggregate amount of
         outstanding Indebtedness less than $750,000 at any time), physical
         delivery of such Note to the Pledgee, endorsed to the Pledgee or
         endorsed in blank; and

               (vi)   after an Event of Default has occurred and is continuing,
         with respect to cash, to the extent not otherwise provided in the
         Security Agreement, (i) establishment by the Pledgee of a cash account
         in the name of such Pledgor over which the Pledgee shall have exclusive
         and absolute control and dominion (and no withdrawals or transfers may
         be made therefrom by any Person except with the prior written consent
         of the Pledgee) and (ii) deposit of such cash in such cash account.

               (b)    In addition to the actions required to be taken pursuant
to preceding Section 3.2(a) hereof, each Pledgor shall take the following
additional actions with respect to the Securities and Collateral:

               (i)    with respect to all Collateral of such Pledgor of which
         the Pledgee may obtain "control" within the meaning of Section 8-106 of
         the UCC (or under any provision of the UCC as same may be amended or
         supplemented from time to time, or under the laws of any relevant State
         other than the State of New York), upon the occurrence and continuation
         of a Specified Collateral Event or an Event of Default, the respective
         Pledgor shall take all actions as may be requested from time to time by
         the Pledgee so that "control" of such Collateral is obtained and at all
         times held by the Pledgee; and

               (ii)   each Pledgor shall from time to time cause appropriate
         financing statements (on appropriate forms) under the Uniform
         Commercial Code as in effect in the various relevant States, in form
         satisfactory to the Pledgee and covering all Collateral hereunder, to
         be filed in the relevant filing offices so that at all times the
         Pledgee has a security interest in all Investment Property and other
         Collateral which is perfected by the filing of such financing
         statements (in each case to the maximum extent perfection by filing may
         be obtained under the laws of the relevant States, including, without
         limitation, Section 9-312(a) of the UCC).

               3.3    Subsequently Acquired Collateral. If any Pledgor shall
acquire (by purchase, stock dividend or otherwise) any additional Collateral at
any time or from time to time after the date hereof, such Collateral shall
automatically (and without any further action being required to be taken) be
subject to the pledge and security interests created pursuant to Section 3.1
hereof and, furthermore, the Pledgor will thereafter take (or cause to be taken)
all action (as promptly as practicable and, in any event, within 30 days after
it obtains such Collateral) with respect to such Collateral in accordance with
the procedures set forth in Section 3.2 hereof, and will promptly thereafter
deliver to the Pledgee (i) a certificate executed by a senior financial officer
of such Pledgor describing such Collateral and certifying that the same has been
duly pledged in favor of the Pledgee (for the benefit of the Secured Creditors)
hereunder and (ii) supplements to Annexes B through G hereto as are necessary to
cause such annexes to be complete and accurate at such time.

                                      -11-

<PAGE>

               3.4    Transfer  Taxes.  Each  pledge of  Collateral  under
Section 3.1 or Section 3.3 hereof shall be accompanied by any transfer tax
stamps required in connection with the pledge of such Collateral.

               3.5    Definition of Pledged Notes. All Notes at any time pledged
or required to be pledged hereunder are hereinafter called the "Pledged Notes."

               3.6    Certain Representations and Warranties Regarding the
Collateral. Each Pledgor represents and warrants that on the date hereof: (i)
each Subsidiary of such Pledgor, and the direct ownership thereof, is listed on
Annex B hereto; (ii) the Stock held by such Pledgor consists of the number and
type of shares of the stock of the corporations as described in Annex C hereto;
(iii) such Stock referenced in clause (ii) of this paragraph constitutes that
percentage of the issued and outstanding capital stock of the issuing
corporation as is set forth in Annex C hereto; (iv) the Notes held by such
Pledgor consist of the promissory notes described in Annex D hereto where such
Pledgor is listed as the lender; (v) the Limited Liability Company Interests
held by such Pledgor consist of the number and type of interests of the Persons
described in Annex E hereto; (vi) each such Limited Liability Company Interest
referenced in clause (v) of this paragraph constitutes that percentage of the
issued and outstanding equity interest of the issuing Person as set forth in
Annex E hereto; (vii) the Partnership Interests held by such Pledgor consist of
the number and type of interests of the Persons described in Annex F hereto;
(viii) each such Partnership Interest referenced in clause (vii) of this
paragraph constitutes that percentage or portion of the entire partnership
interest of the Partnership as set forth in Annex F hereto; (ix) the exact
address of each chief executive office of such Pledgor is listed on Annex G
hereto; (x) the Pledgor has complied with the respective procedure set forth in
Section 3.2(a) hereof with respect to each item of Collateral described in
Annexes C through F hereto; and (xi) such Pledgor owns no other Securities,
Limited Liability Company Interests or Partnership Interests; provided, that in
respect to the representations and warranties set forth in clauses (iii), (vi)
and (viii) above, to the extent that such Stock, Limited Liability Company
Interest or Partnership Interest, as applicable, is an ownership interest in a
Person other than a Subsidiary or Affiliate of Holdings or any of its
Subsidiaries, the applicable Pledgor shall make the aforementioned
representations and warranties on the basis of its knowledge after using
commercially reasonable efforts to obtain the necessary information from such
Person or its officers, employees or agents.

               4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. If and to the
extent necessary to enable the Pledgee to perfect its security interest in any
of the Collateral or to exercise any of its remedies hereunder, the Pledgee
shall have the right to appoint one or more sub-agents for the purpose of
retaining physical possession of the Collateral, which may be held (in the
discretion of the Pledgee) in the name of the relevant Pledgor, endorsed or
assigned in blank or in favor of the Pledgee or any nominee or nominees of the
Pledgee or a sub-agent appointed by the Pledgee.

               5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until
there shall have occurred and be continuing an Event of Default, each Pledgor
shall be entitled to exercise any and all voting and other consensual rights
pertaining to the Collateral owned by it, and to give consents, waivers or
ratifications in respect thereof; provided, that, in each case, no vote shall be
cast or any consent, waiver or ratification given or any action taken or omitted
to be

                                      -12-

<PAGE>

taken which would violate, result in breach of any covenant contained in, or be
inconsistent with any of the terms of this Agreement, the Credit Agreement, any
other Loan Document, any Secured Hedging Agreements entitled to the benefits of
this Agreement (collectively, the "Secured Debt Agreements"), or which would
have the effect of materially impairing the value of the Collateral or any part
thereof or the position or interests of the Pledgee or any other Secured
Creditor in the Collateral. All such rights of each Pledgor to vote and to give
consents, waivers and ratifications shall cease in case an Event of Default has
occurred and is continuing, and Section 7 hereof shall become applicable.

               6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there
shall have occurred and be continuing an Event of Default, all cash dividends,
cash distributions, cash Proceeds and other cash amounts payable in respect of
the Collateral shall be paid to the respective Pledgor. The Pledgee shall be
entitled to receive directly, and to retain as part of the Collateral:

               (i)    all other or additional stock, notes, limited liability
         company interests, partnership interests, instruments or other
         securities or property (including, but not limited to, cash dividends
         other than as set forth above) paid or distributed by way of dividend
         or otherwise in respect of the Collateral;

               (ii)   all other or additional stock, notes, limited liability
         company interests, partnership interests, instruments or other
         securities or property (including, but not limited to, cash) paid or
         distributed in respect of the Collateral by way of stock-split,
         spin-off, split-up, reclassification, combination of shares or similar
         rearrangement; and

               (iii)  all other or additional stock, notes, limited liability
         company interests, partnership interests, instruments or other
         securities or property (including, but not limited to, cash) which may
         be paid in respect of the Collateral by reason of any consolidation,
         merger, exchange of stock, conveyance of assets, liquidation or similar
         corporate reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee's right to receive proceeds of the Collateral in any form in accordance
with Section 3 of this Agreement. All dividends, distributions or other payments
which are received by any Pledgor contrary to the provisions of this Section 6
and Section 7 hereof shall be held for the benefit of the Pledgee, shall be
segregated from other property or funds of such Pledgor and shall be forthwith
paid over to the Pledgee as Collateral in the same form as so received (with any
necessary endorsement).

               7. REMEDIES IN CASE OF EVENT OF DEFAULT. Each Pledgor agrees that
if any Event of Default shall have occurred and be continuing, then and in every
such case, the Pledgee in addition to any rights now or hereafter existing under
applicable law, the other provisions of this Agreement or any other Loan
Document shall be entitled to exercise all of the rights, powers and remedies
(whether vested in it by this Agreement, any other Secured Debt Agreement or by
law) for the protection and enforcement of its rights in respect of the
Collateral, and the Pledgee shall be entitled to exercise all the rights and
remedies of a secured party under the Uniform Commercial Code as in effect in
any relevant jurisdiction and also shall be entitled,

                                      -13-

<PAGE>

without limitation, to exercise the following rights, which each Pledgor hereby
agrees to be commercially reasonable:

               (i)    to receive all amounts payable in respect of the
         Collateral otherwise payable under Section 6 hereof to the respective
         Pledgor;

               (ii)   to transfer all or any part of the Collateral into the
         Pledgee's name or the name of its nominee or nominees;

               (iii)  to accelerate any Pledged Note which may be accelerated in
         accordance with its terms, and take any other lawful action to collect
         upon any Pledged Note (including, without limitation, to make any
         demand for payment thereon);

               (iv)   to vote all or any part of the Collateral (whether or not
         transferred into the name of the Pledgee) and give all consents,
         waivers and ratifications in respect of the Collateral and, subject to
         provisions of all applicable law, otherwise act with respect thereto as
         though it were the outright owner thereof (each Pledgor hereby
         irrevocably constituting and appointing the Pledgee the proxy and
         attorney-in-fact of such Pledgor, with full power of substitution to do
         so);

               (v)    at any time and from time to time to sell, assign and
         deliver, or grant options to purchase, all or any part of the
         Collateral, or any interest therein, at any public or private sale,
         without demand of performance, advertisement or notice of intention to
         sell or of the time or place of sale or adjournment thereof or to
         redeem or otherwise purchase or dispose (all of which are hereby waived
         by each Pledgor), for cash, on credit or for other property, for
         immediate or future delivery without any assumption of credit risk, and
         for such price or prices and on such terms as the Pledgee in its
         absolute discretion may determine, provided that at least 10 days'
         written notice of the time and place of any such sale shall be given to
         the respective Pledgor. The Pledgee shall not be obligated to make any
         such sale of Collateral regardless of whether any such notice of sale
         has theretofore been given. Each purchaser at any such sale shall hold
         the property so sold absolutely free from any claim or right on the
         part of each Pledgor, and each Pledgor hereby waives and releases to
         the fullest extent permitted by law any right or equity of redemption
         with respect to the Collateral, whether before or after sale hereunder,
         and all rights, if any, of marshalling the Collateral and any other
         security for the Obligations or otherwise and all rights, if any, of
         stay and/or appraisal which it now has or may at any time in the future
         have under rule of law or statute now existing or hereafter enacted. At
         any such sale, unless prohibited by applicable law, the Pledgee on
         behalf of the Secured Parties may bid for and purchase all or any part
         of the Collateral so sold free, to the extent permitted by applicable
         law, from any such right or equity of redemption. Neither the Pledgee
         nor any other Secured Party shall be liable for failure to collect or
         realize upon any or all of the Collateral or for any delay in so doing
         nor shall any of them be under any obligation to take any action
         whatsoever with regard thereto; and

               (vi)   to set-off any and all Collateral against any and all
         Obligations, and to withdraw any and all cash or other Collateral from
         any and all Collateral Accounts and to apply such cash and other
         Collateral to the payment of any and all Obligations;

                                      -14-

<PAGE>

provided that, it being understood that each Pledgor's obligation to so deliver
the Collateral is of the essence of this Agreement and that, accordingly, upon
application to a court of equity having jurisdiction, the Pledgee shall be
entitled to a decree requiring specific performance by such Pledgor of said
obligation. By accepting the benefits of this Agreement and each other
Collateral Document, the Secured Creditors expressly acknowledge and agree that
this Agreement and each other Collateral Document may be enforced only by the
action of the Administrative Agent or the Pledgee acting upon the instructions
of the Required Secured Creditors and that no other Secured Creditor shall have
any right individually to seek to enforce this Agreement or any other Collateral
Document or to realize upon the security to be granted hereby or thereby, it
being understood and agreed that such rights and remedies may be exercised by
the Pledgee for the benefit of the Secured Creditors upon the terms of this
Agreement and the other Collateral Documents.

               8. REMEDIES, CUMULATIVE, ETC. Each and every right, power and
remedy of the Pledgee or any other Secured Creditor provided for in this
Agreement or in any other Secured Debt Agreement, or now or hereafter existing
at law or in equity or by statute shall be cumulative and concurrent and shall
be in addition to every other such right, power or remedy. The exercise or
beginning of the exercise by the Pledgee or any other Secured Creditor of any
one or more of the rights, powers or remedies provided for in this Agreement or
any other Secured Debt Agreement or now or hereafter existing at law or in
equity or by statute or otherwise shall not preclude the simultaneous or later
exercise by the Pledgee or any other Secured Creditor of all such other rights,
powers or remedies, and no failure or delay on the part of the Pledgee or any
other Secured Creditor to exercise any such right, power or remedy shall operate
as a waiver thereof. No notice to or demand on any Pledgor in any case shall
entitle it to any other or further notice or demand in similar or other
circumstances or constitute a waiver of any of the rights of the Pledgee or any
other Secured Creditor to any other or further action in any circumstances
without notice or demand. The Secured Creditors agree that this Agreement may be
enforced only by the action of the Pledgee, acting upon the instructions of the
Requisite Lenders (or, after the date on which all Credit Agreement Obligations
have been paid in full, the holders of at least a majority of the Other
Obligations) and that no other Secured Creditor shall have any right
individually to seek to enforce or to enforce this Agreement or to realize upon
the security to be granted hereby, it being understood and agreed that such
rights and remedies may be exercised by the Pledgee or the holders of at least a
majority of the Other Obligations, as the case may be, for the benefit of the
Secured Creditors upon the terms of this Agreement and the other Loan Documents.

               9. APPLICATION OF PROCEEDS. (a) All monies collected by the
Pledgee upon any sale or other disposition of the Collateral pursuant to the
terms of this Agreement, together with all other monies received by the Pledgee
hereunder, shall be applied in the manner provided in Section 7.4 of the
Security Agreement.

               (b)    It is understood and agreed that the Pledgors shall remain
jointly and severally liable to the extent of any deficiency between the amount
of the proceeds of the Collateral hereunder and the aggregate amount of the
Obligations.

               10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by
the Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial

                                      -15-

<PAGE>

process or otherwise), the receipt of the Pledgee or the officer making the sale
shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold, and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Pledgee or such
officer or be answerable in any way for the misapplication or nonapplication
thereof.

               11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to
indemnify, reimburse and hold harmless the Pledgee, each other Secured Creditor
and their respective successors, assigns, employees, agents, affiliates and
servants (individually an "Indemnitee," and collectively the "Indemnitees") from
and against any and all liabilities, obligations, damages, injuries, penalties,
claims, demands, actions, suits, judgments and losses of whatsoever kind or
nature, and (ii) to reimburse each Indemnitee for any and all reasonable costs,
expenses and disbursements, including reasonable attorneys' fees and expenses,
in each case growing out of or resulting from this Agreement or the exercise by
any Indemnitee of any right or remedy granted to it hereunder or under any other
Secured Debt Agreement (but excluding any liabilities, obligations, damages,
injuries, penalties, claims, demands, actions, suits, judgments and losses or
expenses to the extent incurred by reason of gross negligence, bad faith or
willful misconduct of such Indemnitee. In no event shall the Pledgee be liable,
in the absence of gross negligence, bad faith or willful misconduct on its part,
for any matter or thing in connection with this Agreement other than to account
for monies actually received by it in accordance with the terms hereof. If and
to the extent that the obligations of any Pledgor under this Section 11 are
unenforceable for any reason, such Pledgor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law. The indemnity obligations of each Pledgor
contained in this Section 11 shall continue in full force and effect
notwithstanding the full payment of all Notes issued under the Credit Agreement,
the termination of all Secured Hedging Agreements and Letters of Credit, and the
payment of all Obligations and notwithstanding the discharge thereof.

               12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER.
(a) Nothing herein shall be construed to make the Pledgee or any other Secured
Creditor liable as a member of any limited liability company or as a partner of
any partnership and neither the Pledgee nor any other Secured Creditor by virtue
of this Agreement or otherwise (except as referred to in the following sentence)
shall have any of the duties, obligations or liabilities of a member of any
limited liability company or as a partner in any partnership. The parties hereto
expressly agree that, unless the Pledgee shall become the absolute owner of
Collateral consisting of a Limited Liability Company Interest or Partnership
Interest pursuant hereto, this Agreement shall not be construed as creating a
partnership or joint venture among the Pledgee, any other Secured Creditor, any
Pledgor and/or any other Person.

               (b)    Except as provided in the last sentence of paragraph (a)
of this Section 12, the Pledgee, by accepting this Agreement, did not intend to
become a member of any limited liability company or a partner of any partnership
or otherwise be deemed to be a co-venturer with respect to any Pledgor, or any
limited liability company or partnership either before or after an Event of
Default shall have occurred. The Pledgee shall have only those powers set forth
herein and the Secured Parties shall assume none of the duties, obligations or
liabilities of a member of any limited liability company or as a partner of any
partnership or any Pledgor except as provided in the last sentence of paragraph
(a) of this Section 12.

                                      -16-

<PAGE>

               (c)    The Pledgee and the other Secured Parties shall not be
obligated to perform or discharge any obligation of any Pledgor as a result of
the pledge hereby effected.

               (d)    The acceptance by the Pledgee of this Agreement, with all
the rights, powers, privileges and authority so created, shall not at any time
or in any event obligate the Pledgee or any other Secured Party to appear in or
defend any action or proceeding relating to the Collateral to which it is not a
party, or to take any action hereunder or thereunder, or to expend any money or
incur any expenses or perform or discharge any obligation, duty or liability
under the Collateral.

               13. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor
agrees to execute and deliver to the Pledgee such financing statements, in form
reasonably acceptable to the Pledgee, as the Pledgee may from time to time
reasonably request or as are reasonably necessary or desirable in the opinion of
the Pledgee to establish and maintain a valid, enforceable, perfected security
interest in the Collateral as provided herein. Each Pledgor will pay any
applicable filing fees, recordation taxes and related expenses relating to the
perfection of Pledgee's security interest in its Collateral. Each Pledgor hereby
authorizes the Pledgee to file any such financing statements without the
signature of such Pledgor where permitted by law.

               (b)    Each Pledgor hereby constitutes and appoints the Pledgee
its true and lawful attorney, irrevocably, with full power after the occurrence
of and during the continuance of an Event of Default (in the name of such
Pledgor or otherwise) to act, require, demand, receive and give acquittance for
any and all monies and claims for monies due or to become due to such Pledgor
under or arising out of the Collateral, to endorse any checks or other
instruments or orders in connection therewith and to file any claims or take any
action or institute any proceedings which the Pledgee may deem to be necessary
or advisable to protect the interests of the Secured Parties, which appointment
as attorney is coupled with an interest.

               14. THE PLEDGEE AS COLLATERAL AGENT. The Pledgee will hold in
accordance with this Agreement all items of the Collateral at any time received
under this Agreement. It is expressly understood and agreed by each Secured
Creditor that by accepting the benefits of this Agreement each such Secured
Creditor acknowledges and agrees that the obligations of the Pledgee as holder
of the Collateral and interests therein and with respect to the disposition
thereof, and otherwise under this Agreement, are only those expressly set forth
in this Agreement and in Section 9 of the Credit Agreement. The Pledgee shall
act hereunder on the terms and conditions set forth herein and in Section 9 of
the Credit Agreement.

               15. TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise
dispose of, grant any option with respect to, or mortgage, pledge or otherwise
encumber any of the Collateral or any interest therein (except as may be
permitted in accordance with the terms of the Credit Agreement).

               16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS.
(a) Each Pledgor represents, warrants and covenants that:

               (i)    it is the legal, beneficial and record owner of, and has
         good and marketable title to, all Collateral and that it has sufficient
         interest in all Collateral in which a

                                      -17-

<PAGE>

         security interest is purported to be created hereunder for such
         security interest to attach (subject, in each case, to no pledge, lien,
         mortgage, hypothecation, security interest, charge, option, Adverse
         Claim or other encumbrance whatsoever, except the liens and security
         interests created by this Agreement or permitted under the Secured Debt
         Agreements);

               (ii)   it has full power, authority and legal right to pledge all
         the Collateral pledged by it pursuant to this Agreement;

               (iii)  this Agreement has been duly authorized, executed and
         delivered by such Pledgor and constitutes a legal, valid and binding
         obligation of such Pledgor enforceable against such Pledgor in
         accordance with its terms, except to the extent that the enforceability
         hereof may be limited by applicable bankruptcy, insolvency,
         reorganization, moratorium or other similar laws generally affecting
         creditors' rights and by equitable principles (regardless of whether
         enforcement is sought in equity or at law);

               (iv)   except to the extent already obtained or made, no consent
         of any other party (including, without limitation, any stockholder,
         partner, member or creditor of such Pledgor or any of its Subsidiaries)
         and no consent, license, permit, approval or authorization of,
         exemption by, notice or report to, or registration, filing or
         declaration with, any governmental authority is required to be obtained
         by such Pledgor in connection with (a) the execution, delivery or
         performance of this Agreement, (b) the validity or enforceability of
         this Agreement (except as set forth in clause (iii) above), (c) the
         perfection or enforceability of the Pledgee's security interest in the
         Collateral or (d) except for compliance with or as may be required by
         applicable securities laws, the exercise by the Pledgee of any of its
         rights or remedies provided herein;

               (v)    the execution, delivery and performance of this Agreement
         will not violate any provision of any applicable law or regulation or
         of any order, judgment, writ, award or decree of any court, arbitrator
         or governmental authority, domestic or foreign, applicable to such
         Pledgor, or of the certificate of incorporation, operating agreement,
         limited liability company agreement, partnership agreement or by-laws
         of such Pledgor or of any securities issued by such Pledgor or any of
         its Subsidiaries, or of any mortgage, deed of trust, indenture, lease,
         loan agreement, credit agreement or other material contract, agreement
         or instrument or undertaking to which such Pledgor or any of its
         Subsidiaries is a party or which purports to be binding upon such
         Pledgor or any of its Subsidiaries or upon any of their respective
         assets and will not result in the creation or imposition of (or the
         obligation to create or impose) any lien or encumbrance on any of the
         assets of such Pledgor or any of its Subsidiaries except as
         contemplated by this Agreement (other than the Liens created by the
         Collateral Documents);

               (vi)   all of the Collateral (consisting of Securities, Limited
         Liability Company Interests or Partnership Interests) has been duly and
         validly acquired, is fully paid and non-assessable and is subject to no
         options to purchase or similar rights;

               (vii)  each of the Pledged Notes, in respect to which any
         Subsidiary or Affiliate of Holdings is the obligor thereof,constitutes,
         or when executed by the obligor thereof

                                      -18-

<PAGE>

         will constitute, the legal, valid and binding obligation of such
         obligor, enforceable in accordance with its terms, except to the
         extent that the enforceability thereof may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws generally affecting creditors' rights and by equitable principles
         (regardless of whether enforcement is sought in equity or at law);

               (viii) the pledge, collateral assignment and delivery to the
         Pledgee of the Collateral consisting of Certificated Securities
         pursuant to this Agreement creates a valid and perfected first priority
         security interest in such Certificated Securities, and the proceeds
         thereof, subject to no prior Lien or encumbrance or to any agreement
         purporting to grant to any third party a Lien or encumbrance on the
         property or assets of such Pledgor which would include the Securities
         (other than those Liens permitted to exist with respect to the
         Collateral pursuant to the terms of the Secured Debt Agreements then in
         effect) and the Pledgee is entitled to all the rights, priorities and
         benefits afforded by the UCC or other relevant law as enacted in any
         relevant jurisdiction to perfect security interests in respect of such
         Collateral; and

               (ix)   "control" (as defined in Section 8-106 of the UCC) has
         been obtained by the Pledgee over all Collateral consisting of
         Securities with respect to which such "control" may be obtained
         pursuant to Section 8-106 of the UCC, except to the extent that the
         obligation of the applicable Pledgor to provide the Pledgee with
         "control" of such Collateral has not yet arisen under this Agreement;
         provided that in the case of the Pledgee obtaining "control" over
         Collateral consisting of a Security Entitlement, such Pledgor shall
         have taken all steps in its control so that the Pledgee obtains
         "control" over such Security Entitlement.

               (b)    Each Pledgor covenants and agrees that it will defend the
Pledgee's right, title and security interest in and to the Securities and the
proceeds thereof against the claims and demands of all persons whomsoever; and
each Pledgor covenants and agrees that it will have like title to and right to
pledge any other property at any time hereafter pledged to the Pledgee as
Collateral hereunder and will likewise defend the right thereto and security
interest therein of the Pledgee and the other Secured Parties.

               (c)    Each Pledgor covenants and agrees that it will take no
action which would violate any of the terms of any Loan Document.

               17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED
ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION;
LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO; ETC. The exact
legal name of each Pledgor, the type of organization of such Pledgor, whether or
not such Pledgor is a Registered Organization, the jurisdiction of organization
of such Pledgor, such Pledgor's Location, the organizational identification
number (if any) of each Pledgor, and whether or not such Pledgor is a
Transmitting Utility, is listed on Annex A hereto for such Pledgor. No Pledgor
shall change its legal name, its type of organization, its status as a
Registered Organization (in the case of a Registered Organization), its status
as a Transmitting Utility or as a Person which is not a Transmitting Utility, as
the case may be, its jurisdiction of organization, its Location, or its
organizational identification number

                                      -19-

<PAGE>

(if any), except that any such changes shall be permitted (so long as not in
violation of the applicable requirements of the Secured Debt Agreements and so
long as same do not involve (x) a Registered Organization ceasing to constitute
same or (y) any Pledgor changing its jurisdiction of organization or Location
from the United States or a State thereof to a jurisdiction of organization or
Location, as the case may be, outside the United States or a State thereof) if
(i) it shall have given to the Collateral Agent not less than 15 days' prior
written notice of each change to the information listed on Annex A (as adjusted
for any subsequent changes thereto previously made in accordance with this
sentence), together with a supplement to Annex A which shall correct all
information contained therein for the respective Pledgor, and (ii) in connection
with the respective such change or changes, it shall have taken all action
reasonably requested by the Collateral Agent to maintain the security interests
of the Collateral Agent in the Collateral intended to be granted hereby at all
times fully perfected and in full force and effect. In addition, to the extent
that any Pledgor does not have an organizational identification number on the
date hereof and later obtains one, such Pledgor shall promptly thereafter
deliver a notification of the Collateral Agent of such organizational
identification number and shall take all actions reasonably satisfactory to the
Collateral Agent to the extent necessary to maintain the security interest of
the Collateral Agent in the Collateral intended to be granted hereby fully
perfected and in full force and effect.

               18. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC. The obligations of each
Pledgor under this Agreement shall be absolute and unconditional and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever (other than termination of this Agreement pursuant to
Section 20 hereof), including, without limitation: (i) any renewal, extension,
amendment or modification of or addition or supplement to or deletion from any
Secured Debt Agreement (other than this Agreement in accordance with its terms)
or any other instrument or agreement referred to therein, or any assignment or
transfer of any thereof; (ii) any waiver, consent, extension, indulgence or
other action or inaction under or in respect of any such agreement or instrument
including, without limitation, this Agreement (other than a waiver, consent or
extension with respect to this Agreement in accordance with its terms); (iii)
any furnishing of any additional security to the Pledgee or its assignee or any
acceptance thereof or any release of any security by the Pledgee or its
assignee; (iv) any limitation on any party's liability or obligations under any
such instrument or agreement or any invalidity or unenforceability, in whole or
in part, of any such instrument or agreement or any term thereof; or (v) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to any Pledgor or any Subsidiary
of any Pledgor, or any action taken with respect to this Agreement by any
trustee or receiver, or by any court, in any such proceeding, whether or not
such Pledgor shall have notice or knowledge of any of the foregoing.

               19. REGISTRATION, ETC. If at any time when the Pledgee shall
determine to exercise its right to sell all or any part of the Collateral
consisting of Securities, Limited Liability Company Interests or Partnership
Interests pursuant to Section 7 hereof, and the Collateral or the part thereof
to be sold shall not, for any reason whatsoever, be effectively registered under
the Securities Act, as then in effect, the Pledgee may, in its sole and absolute
discretion, sell such Collateral, as the case may be, or part thereof by private
sale in such manner and under such circumstances as the Pledgee may deem
necessary or advisable in order that such sale may legally be effected without
such registration. Without limiting the generality of the

                                      -20-

<PAGE>

foregoing, in any such event the Pledgee, in its sole and absolute discretion
(i) may proceed to make such private sale notwithstanding that a registration
statement for the purpose of registering such Collateral or part thereof shall
have been filed under such Securities Act, (ii) may approach and negotiate with
a single possible purchaser to effect such sale, and (iii) may restrict such
sale to a purchaser who will represent and agree that such purchaser is
purchasing for its own account, for investment, and not with a view to the
distribution or sale of such Collateral or part thereof. In the event of any
such sale, the Pledgee shall incur no responsibility or liability for selling
all or any part of the Collateral at a price which the Pledgee, in its sole and
absolute discretion, in good faith deems reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until after registration as aforesaid.

               20. TERMINATION; RELEASE. (a) On the Termination Date, this
Agreement shall terminate (provided that all indemnities set forth herein
including, without limitation, in Section 11 hereof shall survive such
termination) and the Pledgee, at the request and expense of the respective
Pledgor, will promptly execute and deliver to such Pledgor a proper instrument
or instruments (including Uniform Commercial Code termination statements)
acknowledging the satisfaction and termination of this Agreement, and will duly
assign, transfer and deliver to such Pledgor (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession
of the Pledgee and as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement, together with any moneys at the time held
by the Pledgee or any of its sub-agents hereunder and, with respect to any
Collateral consisting of an Uncertificated Security (other than an
Uncertificated Security credited on the books of a Clearing Corporation), a
Partnership Interest or a Limited Liability Company Interest, a termination of
the agreement relating thereto executed and delivered by the issuer of such
Uncertificated Security pursuant to Section 3.2(a)(ii) or by the respective
partnership or limited liability company pursuant to Section 3.2(a)(iv). As used
in this Agreement, "Termination Date" shall mean the date upon which the
Commitments under the Credit Agreement have been terminated and all Secured
Hedging Agreements entitled to the benefits of this Agreement have been
terminated, no Note, Loan or Letter of Credit is outstanding and all other
Obligations (other than indemnities described in Section 11 hereof and described
in Section 10.3 of the Credit Agreement, and any other indemnities set forth in
any other Collateral Documents, in each case which are not then due and payable)
then due and payable have been paid in full in cash.

               (b)    In the event that any part of the Collateral is sold or
otherwise disposed of (x) at any time prior to the time at which all Loan
Document Obligations have been paid in full and all Commitments and Letters of
Credit under the Credit Agreement have been terminated, in connection with a
sale or disposition permitted by subsection 7.7 of the Credit Agreement or is
otherwise released at the direction of the Required Lenders (or all the Lenders
if required by subsection 10.6 of the Credit Agreement) or (y) at any time
thereafter, to the extent permitted by the other Secured Debt Agreements, and in
the case of clauses (x) and (y), the proceeds of such sale or disposition (or
from such release) are applied in accordance with the terms of the Credit
Agreement or such other Secured Debt Agreement, as the case may be, to the
extent required to be so applied, the Pledgee, at the request and expense of
such Pledgor, will duly release from the security interest created hereby (and
will execute and deliver such documentation, including termination or partial
release statements and the like in connection therewith) and assign, transfer
and deliver to such Pledgor (without recourse and without any representation or
warranty) such

                                      -21-

<PAGE>

of the Collateral as is then being (or has been) so sold or released and as may
be in the possession of the Pledgee and has not theretofore been released
pursuant to this Agreement.

               (c)    At any time that the respective Pledgor desires that
Collateral be released as provided in the foregoing Section 20(a) or (b), it
shall deliver to the Pledgee a certificate signed by an authorized officer of
such Pledgor stating that the release of the respective Collateral is permitted
pursuant to Section 20(a) or (b) hereof. If reasonably requested by the Pledgee
(although the Pledgee shall have no obligation to make any such request), the
relevant Pledgor shall furnish appropriate legal opinions (from counsel
reasonably acceptable to the Pledgee) to the effect set forth in the immediately
preceding sentence. The Pledgee shall have no liability whatsoever to any
Secured Party as the result of any release of Collateral by it as permitted by
this Section 20.

               (d)    The Pledgee shall have no liability whatsoever to any
other Secured Party as the result of any release of Collateral by it in
accordance with (or which the Collateral Agent in the absence of gross
negligence and willful misconduct believes to be in accordance with) this
Section 20.

               21. NOTICES, ETC. Except as otherwise specified herein, all
notices, requests, demands or other communications to or upon the respective
parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy,
cable or courier service and all such notices and communications shall, when
mailed, telegraphed, telexed, telecopied or cabled or sent by courier, be
effective when deposited in the mails, delivered to the telegraph company, cable
company or overnight courier, as the case may be, or sent by telex or
telecopier, except that notices and communications to the Pledgee or any Pledgor
shall not be effective until received by the Collateral Agent or such Pledgor,
as the case may be. All notices and other communications shall be in writing
addressed as follows:

               (a)    if to any Pledgor, at its address set forth opposite its
signature below;

               (b)    if to the Pledgee, at:

                      JPMorgan Chase Bank
                      270 Park Avenue
                      New York, New York 10017
                      Attention:  Ms Teri Streusand, Vice-President
                      Telephone No.: (212) 270-9803
                      Telecopier No.: (212) 270-5646;

               (c)    if to any Lender Creditor, either (x) to the
Administrative Agent, at the address of the Administrative Agent specified in
the Credit Agreement, or (y) at such address as such Lender Creditor shall have
specified in the Credit Agreement;

               (d)    if to any Other Creditor, at such address as such Other
Creditor shall have specified in writing to the Pledgors and the Pledgee;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.

                                      -22-

<PAGE>

               22. WAIVER; AMENDMENT. Except as contemplated in Section 31
hereof, none of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by each Pledgor directly affected thereby and the Pledgee (with the
written consent of either (x) the Requisite Lenders (or all of the Lenders to
the extent required by subsection 10.6 of the Credit Agreement) at all times
prior to the time on which all Loan Document Obligations have been paid in full
or (y) the holders of at least a majority of the outstanding Other Obligations
at all times after the time on which all Loan Document Obligations have been
paid in full); provided, that any change, waiver, modification or variance
affecting the rights and benefits of a single Class (as defined below) of
Secured Creditors (and not all Secured Creditors in a like or similar manner)
shall also require the written consent of the Requisite Creditors (as defined
below) of such affected Class. For the purpose of this Agreement, the term
"Class" shall mean each class of Secured Creditors, i.e., whether (i) the Lender
Creditors as holders of the Loan Document Obligations or (ii) the Other
Creditors as the holders of the Other Obligations. For the purpose of this
Agreement, the term "Requisite Creditors" of any Class shall mean each of (i)
with respect to the Loan Document Obligations, the Requisite Lenders and (ii)
with respect to the Other Obligations, the holders of at least a majority of all
obligations outstanding from time to time under the Secured Hedging Agreements.

               23. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
each Pledgor and its successors and assigns (although no Pledgor may assign its
rights and obligations hereunder except in accordance with the provisions of the
Secured Debt Agreements) and shall inure to the benefit of the Pledgee and the
other Secured Creditors and their respective successors and assigns. All
agreements, statements, representations and warranties made by each Pledgor
herein or in any certificate or other instrument delivered by such Pledgor or on
its behalf under this Agreement shall be considered to have been relied upon by
the Secured Creditors and shall survive the execution and delivery of this
Agreement and the other Secured Debt Agreements regardless of any investigation
made by the Secured Creditors or on their behalf.

               24. HEADINGS DESCRIPTIVE. The headings of the several sections of
this Agreement are inserted for convenience only and shall not in any way affect
the meaning or construction of any provision of this Agreement.

               25. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN
EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS. EACH PLEDGOR HEREBY FURTHER IRREVOCABLY
WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK

                                      -23-

<PAGE>

PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS
PERSONAL JURISDICTION OVER SUCH PLEDGOR. EACH PLEDGOR FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES
AS PROVIDED IN SECTION 21 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING. EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH
SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT
DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR
ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PLEDGOR IN ANY
OTHER JURISDICTION.

               (b)    EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID
ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE
AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

               (c)    EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

               26. PLEDGOR'S DUTIES. It is expressly agreed, anything herein
contained to the contrary notwithstanding, that each Pledgor shall remain liable
to perform all of the obligations, if any, assumed by it with respect to the
Collateral and the Pledgee shall not have any obligations or liabilities with
respect to any Collateral by reason of or arising out of this Agreement, except
for the safekeeping of Collateral actually in Pledgor's possession, nor shall
the Pledgee be required or obligated in any manner to perform or fulfill any of
the obligations of any Pledgor under or with respect to any Collateral.

               27. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the

                                      -24-

<PAGE>

same instrument. A set of counterparts executed by all the parties hereto shall
be lodged with each Pledgor and the Pledgee.

               28. 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.

               29. RECOURSE. This Agreement is made with full recourse to each
Pledgor and pursuant to and upon all the warranties, representations, covenants
and agreements on the part of such Pledgor contained herein and in the other
Secured Debt Agreements and otherwise in writing in connection herewith or
therewith.

               30. ADDITIONAL PLEDGORS. It is understood and agreed that any
Subsidiary of Holdings that is required to execute a counterpart of this
Agreement after the date hereof pursuant to the requirements of the Credit
Agreement or any other Loan Document, shall automatically become a Pledgor
hereunder by executing a counterpart hereof and delivering the same to the
Pledgee. Each of Holdings and the Borrowers hereby agree that they shall and
shall cause any of their respective Subsidiaries that become a Pledgor hereunder
to (i) deliver supplements to Annexes A through G, inclusive, hereto, as are
necessary to cause such Annexes to be complete and accurate with respect to such
additional Pledgor on such date and (ii) take all actions as specified in this
Agreement as would have been taken by such Pledgor had it been an original party
to this Agreement, in each case with all documents required above to be
delivered to the Pledgee and with all documents and actions required above to be
taken to the reasonable satisfaction of the Pledgee.

               31. RELEASE OF PLEDGORS. If at any time all of the Equity
Interests of any Pledgor owned by Borrowers and their respective Subsidiaries
are sold (to a Person other than either Borrower or any Subsidiary Guarantor) in
a transaction permitted pursuant to the Credit Agreement (and which does not
violate the terms of any other Secured Debt Agreement then in effect), then,
such Pledgor shall be released as a Pledgor pursuant to this Agreement without
any further action hereunder (it being understood that the sale of all of the
Equity Interests in any Person that owns, directly or indirectly, all of the
Equity Interests in any Pledgor shall be deemed to be a sale of all of the
Equity Interests in such Pledgor for purposes of this Section), and Pledgee is
authorized and directed to execute and deliver such instruments of release as
are reasonably satisfactory to it. At any time that Holdings desires that a
Pledgor be released from this Agreement as provided in this Section 31, Holdings
shall deliver to Pledgee a certificate signed by a principal executive officer
of Holdings stating that the release of the respective Pledgor is permitted
pursuant to this Section 31. If requested by Pledgee (although the Pledgee shall
have no obligation to make any such request), Holdings shall furnish legal
opinions (from counsel acceptable to the Pledgee) to the effect set forth in the
immediately preceding sentence. Pledgee shall have no liability whatsoever to
any other Secured Creditor as a result of the release of any Pledgor by it in
accordance with, or which it believes to be in accordance with, this Section 31.

                                      -25-

<PAGE>

               IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this
Agreement to be executed by their duly elected officers duly authorized as of
the date first above written.

Addresses:

30 Frank Lloyd Wright Drive                 DOMINO'S, INC., as a Pledgor
Ann Arbor, MI 48106
Telephone: 734-930-3030                     By: /s/ Harry J. Silverman
                                               ---------------------------------
Telecopy:  734-747-6210                        Title:  Vice President
Attention: Chief Financial Officer

30 Frank Lloyd Wright Drive                 DOMINO'S FRANCHISE HOLDING CO., as
Ann Arbor, MI 48106                            a Pledgor
Telephone: 734-930-3030
Telecopy:  734-747-6210                     By: /s/ Harry J. Silverman
                                               ---------------------------------
Attention: Chief Financial Officer             Title:  Vice President

30 Frank Lloyd Wright Drive                 TISM, INC., as a Pledgor
Ann Arbor, MI 48106
Telephone: 734-930-3030                     By: /s/ Harry J. Silverman
                                               ---------------------------------
Telecopy:  734-747-6210                        Title:  Vice President
Attention: Chief Financial Officer

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA LLC, as a Pledgor
Ann Arbor, MI 48106
Telephone: 734-930-3030                        By: /s/ Harry J. Silverman
                                               ---------------------------------
Telecopy:  734-747-6210                        Title:  Vice President
Attention: Chief Financial Officer

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA INTERNATIONAL, INC.,
Ann Arbor, MI 48106                            as a Pledgor
Telephone: 734-930-3030
Telecopy:  734-747-6210                        By: /s/ Harry J. Silverman
                                               ---------------------------------
Attention: Chief Financial Officer             Title:  Vice President

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA GOVERNMENT SERVICES
Ann Arbor, MI 48106                            DIVISION, INC., as a Pledgor
Telephone: 734-930-3030
Telecopy:  734-747-6210                     By: /s/ Harry J. Silverman
                                               ---------------------------------
Attention: Chief Financial Officer             Title:  Vice President

<PAGE>

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA INTERNATIONAL PAYROLL
Ann Arbor, MI 48106                            SERVICES, INC., as a Pledgor
Telephone: 734-930-3030
Telecopy:  734-747-6210                     By: /s/ Harry J. Silverman
                                               ---------------------------------
Attention: Chief Financial Officer             Title:  Vice President

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA PMC, INC., as a
Ann Arbor, MI 48106                            Pledgor
Telephone: 734-930-3030
                                               By: /s/ Harry J. Silverman
                                               ---------------------------------
Telecopy:  734-747-6210                        Title:  Vice President
Attention:      Chief Financial Officer

30 Frank Lloyd Wright Drive                 DOMINO'S PIZZA CALIFORNIA LLC, as a
Ann Arbor, MI 48106                            Pledgor
Telephone: 734-930-3030
Telecopy:  734-747-6210                     By: /s/ Harry J. Silverman
                                                --------------------------------
Attention: Chief Financial Officer             Title:  Vice President

Accepted and Agreed to:

JPMORGAN CHASE BANK,
   as Collateral Agent and Pledgee

By: /s/ Teri Streusand
    ---------------------------------
    Title: Vice President<PAGE>

                                                                   EXHIBIT 10.18

                                                                     EXHIBIT XII
                                                         [CONFORMED AS EXECUTED]

================================================================================

                               SECURITY AGREEMENT

                                      among

                                 DOMINO'S, INC.,
             DOMINO'S FRANCHISE HOLDING CO. (f/k/a BLUEFENCE, INC.),
                                   TISM, INC.
                                 AND CERTAIN OF
                          THEIR RESPECTIVE SUBSIDIARIES

                                       and

                              JPMORGAN CHASE BANK,
                               as COLLATERAL AGENT

                                   ----------

                            Dated as of July 29, 2002

                                   ----------

================================================================================

<PAGE>

                               SECURITY AGREEMENT

               SECURITY AGREEMENT, dated as of July 29, 2002, made by each of
the undersigned assignors (each an "Assignor" and, together with any other
entity that becomes an assignor hereunder pursuant to Section 10.13 hereof, the
"Assignors") in favor of JPMorgan Chase Bank, as Collateral Agent (together with
any successor Collateral Agent, the "Collateral Agent"), for the benefit of the
Secured Creditors (as defined below). Certain capitalized terms as used herein
are defined in Article IX hereof. Except as otherwise defined herein, all
capitalized terms used herein and defined in the Credit Agreement (as defined
below) shall be used herein as therein defined.

                              W I T N E S S E T H:

               WHEREAS, Domino's, Inc., a Delaware corporation ("Domino's" or
the "Company"), Domino's Franchise Holding Co. (f/k/a Bluefence, Inc.), a
Michigan corporation ("Subsidiary Borrower" and, together with Company, each a
"Borrower" and, collectively, "Borrowers"), TISM, Inc., a Michigan corporation,
the financial institutions from time to time party thereto (the "Lenders"), J.P.
Morgan Securities Inc., as Lead Arranger and Book Managers, JPMorgan Chase Bank,
as Administrative Agent for Lenders (in such capacity and together with any
successor Administrative Agent, "Administrative Agent"), Bank One, NA, as
Syndication Agent and Comerica Bank, as Documentation Agent, have entered into a
Credit Agreement, dated as of July 29, 2002 (as amended, modified or
supplemented from time to time, the "Credit Agreement"), providing for the
making of Loans to, and the issuance of Letters of Credit for the joint and
several account of, the Borrowers as contemplated therein (the Lenders, each
Issuing Lender, the Administrative Agent, the Collateral Agent and each other
Agent are herein called the "Lender Creditors");

               WHEREAS, the Borrowers may at any time and from time to time
enter into or maintain one or more Interest Rate Agreements and Currency
Agreements (collectively, together with the Existing Swap Agreement, "Secured
Hedging Agreements") with one or more Lenders or any affiliate thereof (each
such Lender or affiliate, even if the respective Lender subsequently ceases to
be a Lender under the Credit Agreement for any reason, together with such
Lender's or affiliate's successors and assigns, if any, collectively, the "Other
Creditors" and, together with the Lender Creditors, the "Secured Creditors");

               WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary
Guarantor has jointly and severally guaranteed to the Secured Creditors the
payment when due of all Guaranteed Obligations as described therein;

               WHEREAS, pursuant to the Holdings Guaranty, Holdings has
unconditionally guaranteed to the Guaranteed Creditors the payment when due of
all Guaranteed Obligations as described therein;

               WHEREAS, it is a condition precedent to the making of Loans to,
and the issuance of Letters of Credit for the joint and several account of, the
Borrowers under the Credit Agreement that each Assignor shall have executed and
delivered to the Collateral Agent this

<PAGE>

Agreement; and

               WHEREAS, each Assignor will obtain benefits from the incurrence
of Loans by, and the issuance of Letters of Credit for the joint and several
account of, the Borrowers under the Credit Agreement and the entering into and
maintaining by either or both of the Borrowers of Secured Hedging Agreements
and, accordingly, each Assignor desires to enter into this Agreement in order to
satisfy the condition described in the preceding paragraph;

               NOW, THEREFORE, in consideration of the benefits accruing to each
Assignor, the receipt and sufficiency of which are hereby acknowledged, each
Assignor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants
and agrees with the Collateral Agent for the benefit of the Secured Creditors as
follows:

                                    ARTICLE I

                               SECURITY INTERESTS

               1.1 Grant of Security Interests. (a) As security for the
prompt and complete payment and performance when due of all of its Obligations,
each Assignor does hereby assign and transfer unto the Collateral Agent, and
does hereby pledge and grant to the Collateral Agent, for the benefit of the
Secured Creditors, a continuing security interest in all of the right, title and
interest of such Assignor in, to and under all of the following personal
property and fixtures (and all rights therein) of such Assignor, or in which or
to which such Assignor has any rights, in each case whether now existing or
hereafter from time to time acquired:

             (i)  each and every Account;

            (ii)  all cash;

           (iii)  the Cash Collateral Account and all monies, securities,
                  Instruments and other investments deposited or required to
                  be deposited in the Cash Collateral Account;

            (iv)  all Chattel Paper (including without limitation all Tangible
                  Chattel Paper and all Electronic Chattel Paper);

             (v)  all Commercial Tort Claims;

            (vi)  all computer programs of such Assignor and all intellectual
                  property rights therein and all other proprietary information
                  of such Assignor, including but not limited to Domain Names
                  and Trade Secret Rights;

           (vii)  all Contracts, together with all Contract Rights arising
                  thereunder;

          (viii)  all Copyrights;

            (ix)  all Equipment;

                                       -2-

<PAGE>

             (x)  all Deposit Accounts and all other demand, deposit, time,
                  savings, cash management, passbook and similar accounts
                  maintained by such Assignor with any Person and all monies,
                  securities, Instruments and other investments deposited or
                  required to be deposited in any of the foregoing;

            (xi)  all Documents;

           (xii)  all General Intangibles;

          (xiii)  all Goods;

           (xiv)  all Instruments;

            (xv)  all Inventory;

           (xvi)  all Investment Property;

          (xvii)  all  Letter-of-Credit  Rights (whether or not the respective
                  letter of credit is evidenced by a writing);

         (xviii)  all Marks, together with the registrations and right to
                  all renewals thereof, and the goodwill of the business of
                  such Assignor symbolized by the Marks;

           (xix)  all Patents;

            (xx)  all Permits;

           (xxi)  all Software and all Software licensing rights, all  writings,
                  plans, specifications and schematics, all engineering
                  drawings, customer lists, goodwill and licenses, and all
                  recorded data of any kind or nature, regardless of the medium
                  of recording;

          (xxii)  all Supporting Obligations; and

         (xxiii)  all  Proceeds  and  products  of any  and  all of  the
                  foregoing (all of the above, the "Collateral").

               (b)    The security interest of the Collateral Agent under this
Agreement extends to all Collateral which any Assignor may acquire, or with
respect to which any Assignor may obtain rights, at any time during the term of
this Agreement.

               (c)    Notwithstanding clauses (a) and (b) of this Section 1.1,
the payment and performance of the Obligations shall not be secured by:

                      (i) any contract, license, permit or franchise that
                      validly prohibits, restricts or requires the consent of a
                      third party for the creation by such Assignor of a
                      security interest in such contract, license, permit or
                      franchise (or in any rights or property obtained by such
                      Assignor under such contract, license, permit or
                      franchise) except to the extent provided by Sections
                      9-406, 9-

                                       -3-

<PAGE>

                      407, 9-408 and 9-409 of the UCC;

                      (ii) any rights or property to the extent that any valid
                      and enforceable law, statute or regulation applicable to
                      such rights or property prohibits, restricts or requires
                      the consent of a third party for the creation of a
                      security interest therein except to the extent provided by
                      Sections 9-406, 9-407, 9-408 and 9-409 of the UCC,

provided, that, notwithstanding the foregoing in this subsection 1.1(c), any
such contract, license, permit, franchise, rights and property described above
shall be excluded from the Collateral only to the extent and for so long as such
prohibition, restriction or third party consent requirement continues validly to
prohibit, restrict or require the consent of a third party for the creation of
such security interest, and upon the expiration, termination or other lifting of
such prohibition, restriction or third party consent requirement, the contracts,
licenses, permits, franchises, rights and properties and the rights therein
shall automatically be included in the Collateral, without further action on the
part of any Assignor, the Collateral Agent or any other Secured Creditor.

               1.2 Power of Attorney. Each Assignor hereby constitutes and
appoints the Collateral Agent its true and lawful attorney, irrevocably, with
full power after the occurrence of and during the continuance of an Event of
Default (in the name of such Assignor or otherwise) to act, require, demand,
receive, compound and give aquittance for any and all moneys and claims for
moneys due or to become due to such Assignor under or arising out of the
Collateral, to endorse any checks or other instruments or orders in connection
therewith and to file any claims or take any action or institute any proceedings
which the Collateral Agent may deem to be necessary or advisable to protect the
interests of the Secured Creditors, which appointment as attorney is coupled
with an interest.

                                   ARTICLE II

                GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

Each Assignor represents, warrants and covenants, which representations,
warranties and covenants shall survive execution and delivery of this Agreement,
as follows:

               2.1 Necessary Filings. Except with respect to Collateral (i)
having a fair market value, in the aggregate, equal to or less than $5,000,000
and (ii) in which the security interest granted to the Collateral Agent is not
at that time required to be perfected by the Collateral Documents and except by
reason of the failure of Collateral Agent, Administrative Agent or any Lender to
take any action within its exclusive control as contemplated by the Collateral
Documents, all filings, registrations, recordings and other actions necessary or
appropriate to create, preserve and perfect the security interest granted by
such Assignor to the Collateral Agent hereby in respect of the Collateral have
been accomplished and the security interest granted to the Collateral Agent
pursuant to this Agreement in and to the Collateral creates (or, in the case of
(u) Patents, Copyrights, Marks and Domain Names, upon the filing in the
appropriate filing office of the instruments to be delivered by the applicable
Assignor pursuant to Section 4.6 and 5.6 hereof (v) Instruments and money not on
deposit at a banking institution, upon the delivery of such Instruments or money
to the Collateral Agent, (w) deposit accounts (and monies therein),

                                       -4-

<PAGE>

upon the completion of the actions described in Section 3.9 hereof, (x)
Commercial Tort Claims, upon the completion of the actions described in Section
3.11 hereof, (y) letter-of-credit rights that do not constitute Supporting
Obligations, upon the completion of the actions described in Section 3.10 hereof
and (z) Electronic Chattel Paper, upon the Collateral Agent obtaining "control"
thereof as described in Section 3.12 hereof) a valid and, together with all such
filings, registrations, recordings and other actions, a perfected security
interest therein prior to the rights of all other Persons therein and subject to
no other Liens (other than those Liens permitted to exist with respect to the
Collateral pursuant to the terms of all Secured Debt Agreements then in effect)
and is entitled to all the rights, priorities and benefits afforded by the
Uniform Commercial Code or other relevant law as enacted in any relevant
jurisdiction to perfected security interests, in each case to the extent that
the Collateral consists of the type of property in which a security interest may
be perfected by possession or control (within the meaning of the UCC as in
effect on the date hereof in the State of New York), (x) by filing a financing
statement under the Uniform Commercial Code as enacted in any relevant
jurisdiction or (y) by a filing of a Grant of Security Interest in the
respective form attached hereto in the United States Patent and Trademark Office
or in the United States Copyright Office.

               2.2 No Liens. Such Assignor is, and as to all Collateral acquired
by it from time to time after the date hereof such Assignor will be, the owner
of all Collateral free from any Lien, security interest, encumbrance or other
right, title or interest of any Person (other than those Liens permitted to
exist with respect to the Collateral pursuant to the terms of all Secured Debt
Agreements then in effect), and such Assignor shall defend the Collateral
against all claims and demands of all Persons at any time claiming the same or
any interest therein adverse to the Collateral Agent.

               2.3 Other Financing Statements. As of the date hereof, there is
no financing statement (or similar statement or instrument of registration under
the law of any jurisdiction) covering or purporting to cover any interest of any
kind in the Collateral (other than financing statements filed in respect of (x)
those Liens permitted to exist with respect to the Collateral pursuant to the
terms of all Secured Debt Agreements then in effect and (y) those Liens to be
terminated as of the date hereof which were created pursuant to the Existing
Credit Agreement and the Collateral Documents (as defined in the Existing Credit
Agreement)), and so long as the Termination Date has not occurred, such Assignor
will not execute or authorize to be filed in any public office any financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) or statements relating to the Collateral, except financing
statements filed or to be filed in respect of and covering the security
interests granted hereby by such Assignor or in connection with those Liens
permitted to exist with respect to the Collateral pursuant to the terms of all
Secured Debt Agreements then in effect.

               2.4 Chief Executive Office, Record Locations. The chief executive
office of such Assignor is, on the date of this Agreement, located at the
address indicated on Annex A hereto for such Assignor. During the period of the
four calendar months preceding the date of this Agreement, the chief executive
office of such Assignor has not been located at any address other than that
indicated on Annex A in accordance with the immediately preceding sentence, in
each case unless each such other address is also indicated on Annex A hereto for
such Assignor.

               2.5 Legal Names; Type of Organization (and Whether a Registered
Organization

                                       -5-

<PAGE>

and/or a Transmitting Utility); Jurisdiction of Organization; Location;
Organizational Identification Numbers; Changes Thereto; Etc. The exact legal
name of each Assignor, the type of organization of such Assignor, whether or not
such Assignor is a Registered Organization, the jurisdiction of organization of
such Assignor, such Assignor's Location, the organizational identification
number (if any) of each Assignor, and whether or not such Assignor is a
Transmitting Utility, is listed on Annex C hereto for such Assignor. No Assignor
shall change its legal name, its type of organization, its status as a
Registered Organization (in the case of a Registered Organization), its status
as a Transmitting Utility or as a Person which is not a Transmitting Utility, as
the case may be, its jurisdiction of organization, its Location, or its
organizational identification number (if any) from that used on Annex C hereto,
except that any such changes shall be permitted (so long as not in violation of
the applicable requirements of the Secured Debt Agreements and so long as same
do not involve (x) a Registered Organization ceasing to constitute same or (y)
any Assignor changing its jurisdiction of organization or Location from the
United States or a State thereof to a jurisdiction of organization or Location,
as the case may be, outside the United States or a State thereof) if (i) it
shall have given to the Collateral Agent not less than 15 days' prior written
notice of each change to the information listed on Annex C (as adjusted for any
subsequent changes thereto previously made in accordance with this sentence),
together with a supplement to Annex C which shall correct all information
contained therein for the respective Assignor, and (ii) in connection with the
respective such change or changes, it shall have taken all action reasonably
requested by the Collateral Agent to maintain the security interests of the
Collateral Agent in the Collateral intended to be granted hereby at all times
fully perfected and in full force and effect. In addition, to the extent that
any Assignor does not have an organizational identification number on the date
hereof and later obtains one, such Assignor shall promptly thereafter notify the
Collateral Agent of such organizational identification number and shall take all
actions reasonably satisfactory to the Collateral Agent to the extent necessary
to maintain the security interest of the Collateral Agent in the Collateral
intended to be granted hereby fully perfected and in full force and effect.

               2.6 Trade Names; Etc. No Assignor has or operates in any
jurisdiction under, or in the preceding five years has had or has operated in
any jurisdiction under, any trade names, fictitious names or other names except
its legal name as specified in Annex C and such other trade or fictitious names
as are listed on Annex D hereto for such Assignor.

               2.7 Certain Significant Transactions. During the one year period
preceding the date of this Agreement, no Person shall have merged or
consolidated with or into any Assignor, and no Person shall have liquidated
into, or transferred all or substantially all of its assets to, any Assignor, in
each case except as described in Annex E hereto. With respect to any
transactions so described in Annex E hereto, the respective Assignor shall have
furnished such information with respect to the Person (and the assets of the
Person and locations thereof) which merged with or into or consolidated with
such Assignor, or was liquidated into or transferred all or substantially all of
its assets to such Assignor, and shall have furnished to the Collateral Agent
such UCC lien searches as may have been requested with respect to such Person
and its assets, to establish that no security interest (excluding those Liens
permitted to exist with respect to the Collateral pursuant to the terms of all
Secured Debt Agreements then in effect) continues perfected on the date hereof
with respect to any Person described above (or the assets transferred to the
respective Assignor by such Person), including without limitation pursuant to
Section 9-316(a)(3) of the UCC.

                                       -6-

<PAGE>

               2.8 Collateral in the Possession of a Bailee. Upon the occurrence
and continuation of a Specified Collateral Event or an Event of Default, if any
Inventory or other Goods are at any time in the possession of a bailee, the
respective Assignor shall promptly notify the Collateral Agent thereof and, if
requested by the Collateral Agent, shall use its reasonable best efforts to
promptly obtain an acknowledgment from such bailee, in form and substance
reasonably satisfactory to the Collateral Agent, that the bailee holds such
Collateral for the benefit of the Collateral Agent and shall act upon the
instructions of the Collateral Agent, without the further consent of the
respective Assignor. The Collateral Agent agrees with the Assignors that the
Collateral Agent shall not give any such instructions unless an Event of Default
has occurred and is continuing or would occur after taking into account any
action by the respective Assignor with respect to any such bailee.

               2.9 Recourse. This Agreement is made with full recourse to each
Assignor and pursuant to and upon all the warranties, representations, covenants
and agreements on the part of such Assignor contained herein, in the Secured
Debt Agreements and otherwise in writing in connection herewith or therewith.

                                   ARTICLE III

            SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS;
             INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

               3.1 Additional Representations and Warranties. As of the time
when each of its Accounts arises, each Assignor shall be deemed to have
represented and warranted that each such Account, and all records, papers and
documents relating thereto (if any) are genuine and what they purport to be, and
that all papers and documents (if any) relating thereto (i) will, to the
knowledge of such Assignor, represent the genuine, legal, valid and binding
obligation of the account debtor evidencing indebtedness unpaid and owed by the
respective account debtor arising out of the performance of labor or services or
the sale or lease and delivery of the merchandise listed therein, or both, (ii)
will be the only original writings evidencing and embodying such obligation of
the account debtor named therein (other than copies created for general
accounting purposes), (iii) will, to the knowledge of such Assignor, evidence
true and valid obligations, enforceable in accordance with their respective
terms, and (iv) will be in compliance and will conform in all material respects
with all applicable federal, state and local laws and applicable laws of any
relevant foreign jurisdiction.

               3.2 Maintenance of Records. Each Assignor will keep and maintain
at its own cost and expense accurate records of its Accounts and Contracts,
including, but not limited to, originals of all documentation (including each
Contract) with respect thereto, records of all payments received, all credits
granted thereon, all merchandise returned and all other dealings therewith, and
such Assignor will make the same available on such Assignor's premises to the
Collateral Agent for inspection, at such Assignor's own cost and expense, at any
and all reasonable times upon reasonable prior notice to such Assignor and
otherwise in accordance with the Credit Agreement. Upon the occurrence and
during the continuance of an Event of Default and at the request of the
Collateral Agent, such Assignor shall, at its own cost and expense, deliver all
tangible evidence of its Accounts and Contract Rights (including, without
limitation, all documents evidencing the Accounts and all Contracts) and such
books and records to the

                                       -7-

<PAGE>

Collateral Agent or to its representatives (copies of which evidence and books
and records may be retained by such Assignor). Upon the occurrence and during
the continuance of an Event of Default and if the Collateral Agent so directs,
such Assignor shall legend, in form and manner satisfactory to the Collateral
Agent, the Accounts and the Contracts, as well as books, records and documents
(if any) of such Assignor evidencing or pertaining to such Accounts and
Contracts with an appropriate reference to the fact that such Accounts and
Contracts have been assigned to the Collateral Agent and that the Collateral
Agent has a security interest therein.

               3.3 Direction to Account Debtors; Contracting Parties; Etc. Upon
the occurrence and during the continuance of an Event of Default, if the
Collateral Agent so directs any Assignor, such Assignor agrees (x) to cause all
payments on account of the Accounts and Contracts to be made directly to the
Cash Collateral Account, (y) that the Collateral Agent may, at its option,
directly notify the obligors with respect to any Accounts and/or under any
Contracts to make payments with respect thereto as provided in the preceding
clause (x), and (z) that the Collateral Agent may enforce collection of any such
Accounts and Contracts and may adjust, settle or compromise the amount of
payment thereof, in the same manner and to the same extent as such Assignor.
Without notice to or assent by any Assignor, the Collateral Agent may, upon the
occurrence and during the continuance of an Event of Default, apply any or all
amounts then in, or thereafter deposited in, the Cash Collateral Account toward
the payment of the Obligations in the manner provided in Section 7.4 of this
Agreement. The reasonable costs and expenses of collection (including reasonable
attorneys' fees), whether incurred by an Assignor or the Collateral Agent, shall
be borne by the relevant Assignor. The Collateral Agent shall deliver a copy of
each notice referred to in the preceding clause (y) to the relevant Assignor,
provided that (x) the failure by the Collateral Agent to so notify such Assignor
shall not affect the effectiveness of such notice or the other rights of the
Collateral Agent created by this subsection 3.3 and (y) no such notice shall be
required if an Event of Default of the type described in subsections 8.6 and 8.7
of the Credit Agreement has occurred and is continuing.

               3.4 Modification of Terms; Etc. Except in accordance with such
Assignor's ordinary course of business and consistent with reasonable business
judgment, no Assignor shall rescind or cancel any indebtedness evidenced by any
Account or under any Contract, or modify any material term thereof or make any
material adjustment with respect thereto, or extend or renew the same, or
compromise or settle any material dispute, claim, suit or legal proceeding
relating thereto, or sell any Account or Contract, or interest therein, without
the prior written consent of the Collateral Agent. No Assignor will do anything
to adversely affect the right, title and interest of the Collateral Agent in the
Accounts or Contracts, except as permitted this Section 3.4 and Section 3.5.

               3.5 Collection. Each Assignor shall endeavor in accordance with
reasonable business practices to cause to be collected from the account debtor
named in each of its Accounts or obligor under any Contract, as and when due
(including, without limitation, amounts which are delinquent, such amounts to be
collected in accordance with generally accepted lawful collection procedures)
any and all amounts owing under or on account of such Account or Contract, and
apply forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Account or under such Contract. Except as otherwise
directed by the Collateral Agent after the occurrence and during the
continuation of an Event of Default, any Assignor may allow in the ordinary
course of business as adjustments to amounts owing under

                                       -8-

<PAGE>

its Accounts and Contracts (i) an extension or renewal of the time or times of
payment, or settlement for less than the total unpaid balance, which such
Assignor finds appropriate in accordance with reasonable business judgment and
(ii) a refund or credit due as a result of returned or damaged merchandise or
improperly performed services or for other reasons which such Assignor finds
appropriate in accordance with reasonable business judgment. The reasonable
costs and expenses (including, without limitation, reasonable attorneys' fees)
of collection, whether incurred by an Assignor or the Collateral Agent, shall be
borne by the relevant Assignor.

               3.6 Instruments. If any Assignor owns or acquires any Instrument
in excess of $750,000 constituting Collateral (other than checks and other
payment instruments received and collected in the ordinary course of business),
such Assignor will within 30 Business Days notify the Collateral Agent thereof,
and upon request by the Collateral Agent will promptly deliver such Instrument
to the Collateral Agent appropriately endorsed to the order of the Collateral
Agent.

               3.7 Assignors Remain Liable Under Accounts. Anything herein to
the contrary notwithstanding, the Assignors shall remain liable under each of
the Accounts to observe and perform all of the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement giving rise to such Accounts. Neither the Collateral Agent nor any
other Secured Creditor shall have any obligation or liability under any Account
(or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Collateral Agent or any other Secured Creditor
of any payment relating to such Account pursuant hereto, nor shall the
Collateral Agent or any other Secured Creditor be obligated in any manner to
perform any of the obligations of any Assignor under or pursuant to any Account
(or any agreement giving rise thereto), to make any payment, to make any inquiry
as to the nature or the sufficiency of any payment received by them or as to the
sufficiency of any performance by any party under any Account (or any agreement
giving rise thereto), 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 them or to which they may be entitled at any time or times.

               3.8 Assignors Remain Liable Under Contracts. Anything herein to
the contrary notwithstanding, the Assignors shall remain liable under each of
the Contracts to observe and perform all of the conditions and obligations to be
observed and performed by them thereunder, all in accordance with and pursuant
to the terms and provisions of each Contract. Neither the Collateral Agent nor
any other Secured Creditor shall have any obligation or liability under any
Contract by reason of or arising out of this Agreement or the receipt by the
Collateral Agent or any other Secured Creditor of any payment relating to such
Contract pursuant hereto, nor shall the Collateral Agent or any other Secured
Creditor be obligated in any manner to perform any of the obligations of any
Assignor under or pursuant to any Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any performance by any party
under any Contract, 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 them or to which they may be entitled at any time or times.

               3.9 Deposit Accounts; Etc. (a) No Assignor maintains, or at any
time after the date of this Agreement shall establish or maintain, any demand,
time, savings, passbook or

                                       -9-

<PAGE>

similar account, except for such accounts maintained with a bank (as defined in
Section 9-102 of the UCC) whose jurisdiction (determined in accordance with
Section 9-304 of the UCC) is within a State of the United States. Annex F hereto
accurately sets forth, as of the date of this Agreement, for each Assignor, each
Deposit Account maintained by such Assignor (including a description thereof and
the respective account number), the name of the respective bank with which such
Deposit Account is maintained, and the jurisdiction of the respective bank with
respect to such Deposit Account. Upon the occurrence and continuation of a
Specified Collateral Event or an Event of Default, if requested by the
Collateral Agent, for each Deposit Account (other than the Cash Collateral
Account or any other Deposit Account maintained with the Collateral Agent), the
respective Assignor shall cause the bank with which the Deposit Account is
maintained to execute and deliver to the Collateral Agent, within 30 days after
the date of the occurrence of such Specified Collateral Event or Event of
Default, a "control agreement" in the form of Annex G hereto (appropriately
completed), with such changes thereto as may be acceptable to the Collateral
Agent. If any bank with which a Deposit Account is maintained refuses to, or
does not, enter into such a "control agreement", then the respective Assignor
shall promptly (and in any event within 30 days after the occurrence of the
Specified Collateral Event or the Event of Default, as the case may be) close
the respective Deposit Account and transfer all balances therein to the Cash
Collateral Account or another Deposit Account meeting the requirements of this
Section 3.9. If any bank with which a Deposit Account is maintained refuses to
subordinate all its claims with respect to such Deposit Account to the
Collateral Agent's security interest therein on terms satisfactory to the
Collateral Agent, then the Collateral Agent, at its option, may (x) require that
such Deposit Account be terminated in accordance with the immediately preceding
sentence or (y) agree to a "control agreement" without such subordination,
provided that in such event the Collateral Agent may at any time, at its option,
subsequently require that such Deposit Account be terminated (within 30 days
after notice from the Collateral Agent) in accordance with the requirements of
the immediately preceding sentence.

               (b)    After the date of this Agreement, no Assignor shall
establish any new demand, time, savings, passbook or similar account, except for
Deposit Accounts established and maintained with banks and meeting the
requirements of preceding clause (a). At the time any such Deposit Account is
established, the appropriate "control agreement" shall be entered into in
accordance with the requirements of preceding clause (a) and the respective
Assignor shall furnish to the Collateral Agent a supplement to Annex E hereto
containing the relevant information with respect to the respective Deposit
Account and the bank with which same is established.

               3.10 Letter-of-Credit Rights. If any Assignor is at any time a
beneficiary under a letter of credit with a stated amount of $1,000,000 or more,
such Assignor shall promptly notify the Collateral Agent thereof and, at the
request of the Collateral Agent, such Assignor shall, pursuant to an agreement
in form and substance reasonably satisfactory to the Collateral Agent, use its
reasonable best efforts to (i) arrange for the issuer and any confirmer of such
letter of credit to consent to an assignment to the Collateral Agent of the
proceeds of any drawing under such letter of credit or (ii) arrange for the
Collateral Agent to become the transferee beneficiary of such letter of credit,
with the Collateral Agent agreeing, in each case, that the proceeds of any
drawing under the letter of credit are to be applied as provided in this
Agreement after the occurrence and during the continuance of an Event of
Default, provided, that any Letters of Credit constituting Supporting
Obligations shall be excluded from the requirements of this

                                      -10-

<PAGE>

Section 3.10.

               3.11 Commercial Tort Claims. All Commercial Tort Claims of each
Assignor in existence on the date of this Agreement are described in Annex H
hereto. If any Assignor shall at any time after the date of this Agreement
acquire a Commercial Tort Claim in an amount (taking the greater of the
aggregate claimed damages thereunder or the reasonably estimated value thereof)
of $1,000,000 or more, such Assignor shall within 30 days thereof notify the
Collateral Agent thereof in a writing signed by such Assignor and describing the
details thereof and shall grant to the Collateral Agent in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance reasonably
satisfactory to the Collateral Agent.

               3.12 Chattel Paper. Upon the request of the Collateral Agent made
at any time or from time to time, each Assignor shall within 30 days furnish to
the Collateral Agent a list of all Electronic Chattel Paper held or owned by
such Assignor. Furthermore, if requested by the Collateral Agent, upon the
occurrence and continuation of a Specified Collateral Event or an Event of
Default, each Assignor shall promptly take all actions which are reasonably
practicable so that the Collateral Agent has "control" of all Electronic Chattel
Paper in accordance with the requirements of Section 9-105 of the UCC. Each
Assignor will promptly (and in any event within 30 days) following any request
by the Collateral Agent made in accordance with the foregoing sentence, deliver
all of its Tangible Chattel Paper to the Collateral Agent.

               3.13 Further Actions. Each Assignor will, at its own expense,
make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent
from time to time such vouchers, invoices, schedules, confirmatory assignments,
conveyances, financing statements, transfer endorsements, certificates, reports
and other assurances or instruments and take such further steps, including any
and all actions as may be necessary or required under the Federal Assignment of
Claims Act, relating to its Accounts, Contracts, Instruments and other property
or rights covered by the security interest hereby granted, as the Collateral
Agent may reasonably require.

                                   ARTICLE IV

            SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

               4.1 Additional Representations and Warranties. Each Assignor
represents and warrants that it is the true and lawful owner of or otherwise has
the right to use the registered Marks and Domain Names listed in Annex I hereto
for such Assignor and that said listed Marks and Domain Names include all United
States marks and applications for United States marks registered in the United
States Patent and Trademark Office and all Domain Names that such Assignor owns
or uses in connection with its business as of the date hereof. Each Assignor
represents and warrants that it owns, is licensed to use or otherwise has the
right to use, all material Marks and Domain Names that it uses. Each Assignor
further warrants that it has no knowledge of any third party claim received by
it that any aspect of such Assignor's present or contemplated business
operations infringes or will infringe any trademark, service mark or trade name
of any other Person other than as could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Each
Assignor represents and

                                      -11-

<PAGE>

warrants that it is the true and lawful owner of or otherwise has the right to
use all material U.S. trademark registrations and applications and Domain Name
registrations listed in Annex I hereto and that said registrations are valid,
subsisting, have not been canceled and that such Assignor is not aware of any
third-party claim that any of said registrations is invalid or unenforceable,
and is not aware that there is any reason that any of said registrations is
invalid or unenforceable. Each Assignor hereby grants to the Collateral Agent an
absolute power of attorney to sign, upon the occurrence and during the
continuance of an Event of Default, any document which may be required by the
United States Patent and Trademark Office or similar registrar in order to
effect an absolute assignment of all right, title and interest in each Mark
and/or Domain Name, and record the same.

               4.2 Licenses and Assignments. Except as otherwise permitted by
the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of
any right under any Mark or Domain Name absent prior written approval of the
Collateral Agent.

               4.3 Infringements. Each Assignor agrees, promptly upon learning
thereof, to notify the Collateral Agent in writing of the name and address of,
and to furnish such pertinent information that may be available with respect to,
any party who such Assignor believes is, or may be, infringing or diluting or
otherwise violating any of such Assignor's rights in and to any Mark or Domain
Name in any manner that could reasonably be expected to have a Material Adverse
Effect, or with respect to any party claiming that such Assignor's use of any
Mark or Domain Name material to such Assignor's business violates in any
material respect any property right of that party. Each Assignor further agrees
to prosecute in accordance with reasonable business practices any Person
infringing any Mark or Domain Name in any manner that could reasonably be
expected to have a Material Adverse Effect.

               4.4 Preservation of Marks and Domain Names. Each Assignor agrees
to use its Marks and Domain Names which are material to such Assignor's business
in interstate commerce during the time in which this Agreement is in effect and
to take all such other actions as are reasonably necessary to preserve such
Marks as trademarks or service marks under the laws of the United States (other
than any such Marks which are no longer used or useful in its business or
operations).

               4.5 Maintenance of Registration. Each Assignor shall, at its own
expense, diligently process all documents reasonably required to maintain all
Mark and/or Domain Name registrations, including but not limited to affidavits
of use and applications for renewals of registration in the United States Patent
and Trademark Office for all of its material registered Marks, and shall pay all
fees and disbursements in connection therewith and shall not abandon any such
filing of affidavit of use or any such application of renewal prior to the
exhaustion of all administrative and judicial remedies without prior written
consent of the Collateral Agent (other than with respect to registrations and
applications deemed by such Assignor in its reasonable business judgment to be
no longer prudent to pursue).

               4.6 Future Registered Marks and Domain Names. If any Mark or
Domain Name registration that is material to its business is issued hereafter to
any Assignor as a result of any application now or hereafter pending before the
United States Patent and Trademark Office or any Domain Name is registered by
Assignor, within 30 days of receipt of such certificate or

                                      -12-

<PAGE>

similar indicia of ownership, such Assignor shall deliver to the Collateral
Agent a copy of such certificate or similar indicia of ownership, and a grant of
a security interest in such Mark and/or Domain Name, to the Collateral Agent and
at the expense of such Assignor, confirming grant of a security interest in such
Mark and/or Domain Name to the Collateral Agent hereunder, the form of such
security to be substantially in the form of Annex L hereto or in such other form
as may be reasonably satisfactory to the Collateral Agent.

               4.7 Remedies. If an Event of Default shall occur and be
continuing, the Collateral Agent may, by written notice to the relevant
Assignor, take any or all of the following actions, subject to the limitations
of the Uniform Commercial Code in the applicable jurisdictions: (i) declare the
entire right, title and interest of such Assignor in and to each of the Marks
and Domain Names, together with all trademark rights and rights of protection to
the same, vested in the Collateral Agent for the benefit of the Secured
Creditors, in which event such rights, title and interest shall immediately
vest, in the Collateral Agent for the benefit of the Secured Creditors, and the
Collateral Agent shall be entitled to exercise the power of attorney referred to
in Section 4.1 hereof to execute, cause to be acknowledged and notarized and
record said absolute assignment with the applicable agency; (ii) take and use or
sell the Marks or Domain Names and the goodwill of such Assignor's business
symbolized by the Marks or Domain Names and the right to carry on the business
and use the assets of such Assignor in connection with which the Marks or Domain
Names have been used; and (iii) direct such Assignor to refrain, in which event
such Assignor shall refrain, from using the Marks or Domain Names in any manner
whatsoever, directly or indirectly, and such Assignor shall execute such further
documents that the Collateral Agent may reasonably request to further confirm
this and to transfer ownership of the Marks or Domain Names and registrations
and any pending trademark application in the United States Patent and Trademark
Office or applicable Domain Name registrar to the Collateral Agent.

                                    ARTICLE V

       SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

               5.1 Additional Representations and Warranties. Each Assignor
represents and warrants that it is the true and lawful owner of all rights in
(i) all material United States trade secrets and proprietary information
necessary to operate the business of the Assignor (the "Trade Secret Rights"),
(ii) the Patents listed in Annex J hereto for such Assignor and that said
Patents include all the United States patents and applications for United States
patents that such Assignor owns as of the date hereof and (iii) the Copyrights
listed in Annex K hereto for such Assignor and that said Copyrights constitute
all the United States copyrights registered with the United States Copyright
Office and applications for United States copyrights that such Assignor owns as
of the date hereof. Each Assignor further warrants that it has no knowledge of
any third party claim that any aspect of such Assignor's present or contemplated
business operations infringes or will infringe any patent of any other Person or
such Assignor has misappropriated any trade secret or proprietary information
which, either individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect. Each Assignor hereby grants to the Collateral
Agent an absolute power of attorney to sign, upon the occurrence and during the
continuance of any Event of Default, any document which may be required by the
United States Patent and Trademark Office in order to effect an absolute
assignment of all right, title and interest in each

                                      -13-

<PAGE>

Patent, and to record the same.

               5.2 Licenses and Assignments. Except as otherwise permitted by
the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of
any right under any Patent or Copyright absent prior written approval of the
Collateral Agent.

               5.3 Infringements. Each Assignor agrees, promptly upon learning
thereof, to furnish the Collateral Agent in writing with all pertinent
information available to such Assignor with respect to any infringement,
contributing infringement or active inducement to infringe in any Patent or
Copyright or to any claim that the practice of any Patent or use of any
Copyright violates any property right of a third party, or with respect to any
misappropriation of any Trade Secret Right or any claim that practice of any
Trade Secret Right violates any property right of a third party, in each case,
in any manner which, either individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect. Each Assignor further agrees,
absent direction of the Collateral Agent to the contrary, to diligently
prosecute, in accordance with its reasonable business judgment, any Person
infringing any Patent or Copyright or any Person misappropriating any Trade
Secret Right, in each case to the extent that such infringement or
misappropriation, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

               5.4 Maintenance of Patents or Copyrights. At its own expense,
each Assignor shall make timely payment of all post-issuance fees required
pursuant to 35 U.S.C. Section 41 to maintain in force its rights under each
Patent or Copyright, absent prior written consent of the Collateral Agent (other
than any such Patents or Copyrights which are no longer used or are deemed by
such Assignor in its reasonable business judgment to no longer be useful in its
business or operations).

               5.5 Prosecution of Patent or Copyright Applications. At its own
expense, each Assignor shall diligently prosecute all material applications for
(i) United States Patents listed in Annex J hereto and (ii) Copyrights listed on
Annex K hereto, in each case for such Assignor and shall not abandon any such
application prior to exhaustion of all administrative and judicial remedies
(other than applications that are deemed by such Assignor in its reasonable
business judgment to no longer be prudent to pursue), absent written consent of
the Collateral Agent.

               5.6 Other Patents and Copyrights. Within 30 days of the
acquisition or issuance of a United States Patent, registration of a Copyright,
or acquisition of a registered Copyright, or of filing of an application for a
United States Patent or Copyright, the relevant Assignor shall deliver to the
Collateral Agent a copy of said Copyright or Patent, or certificate or
registration of, or application therefor, as the case may be, with a grant of a
security interest as to such Patent or Copyright, as the case may be, to the
Collateral Agent and at the expense of such Assignor, confirming the grant of a
security interest, the form of such grant of a security interest to be
substantially in the form of Annex M or N hereto, as appropriate, or in such
other form as may be reasonably satisfactory to the Collateral Agent.

               5.7 Remedies. If an Event of Default shall occur and be
continuing, the Collateral Agent may, by written notice to the relevant
Assignor, take any or all of the following actions, subject to the limitations
of the Uniform Commercial Code in the applicable

                                      -14-

<PAGE>

jurisdictions: (i) declare the entire right, title, and interest of such
Assignor in each of the Patents and Copyrights vested in the Collateral Agent
for the benefit of the Secured Creditors, in which event such right, title, and
interest shall immediately vest in the Collateral Agent for the benefit of the
Secured Creditors, in which case the Collateral Agent shall be entitled to
exercise the power of attorney referred to in Section 5.1 hereof to execute,
cause to be acknowledged and notarized and to record said absolute assignment
with the applicable agency; (ii) take and practice or sell the Patents and
Copyrights; and (iii) direct such Assignor to refrain, in which event such
Assignor shall refrain, from practicing the Patents and using the Copyrights
directly or indirectly, and such Assignor shall execute such further documents
as the Collateral Agent may reasonably request further to confirm this and to
transfer ownership of the Patents and Copyrights to the Collateral Agent for the
benefit of the Secured Creditors.

                                   ARTICLE VI

                      PROVISIONS CONCERNING ALL COLLATERAL

               6.1 Protection of Collateral Agent's Security. Except as
otherwise permitted by the Secured Debt Agreements, each Assignor will do
nothing to adversely affect the right, title and interest of the Collateral
Agent in the Collateral. Each Assignor will at all times maintain insurance, at
such Assignor's own expense to the extent and in the manner provided in the
Secured Debt Agreements. Except to the extent otherwise permitted to be retained
by such Assignor or applied by such Assignor pursuant to the terms of the
Secured Debt Agreements, the Collateral Agent shall, at the time any proceeds of
such insurance are distributed to the Secured Creditors, apply such proceeds in
accordance with Section 7.4 hereof. Each Assignor assumes all liability and
responsibility in connection with the Collateral acquired by it and the
liability of such Assignor to pay the Obligations shall in no way be affected or
diminished by reason of the fact that such Collateral may be lost, destroyed,
stolen, damaged or for any reason whatsoever unavailable to such Assignor.

               6.2 Warehouse Receipts Non-negotiable. To the extent practicable,
each Assignor agrees that if any warehouse receipt or receipt in the nature of a
warehouse receipt is issued with respect to any of its Inventory such Assignor
shall notify the Collateral Agent of the existence of such receipt within 30
days of the issuance thereof and upon the occurrence and continuation of a
Specified Collateral Event or an Event of Default, upon the request of the
Collateral Agent, such Assignor shall request that such warehouse receipt or
receipt in the nature thereof shall not be "negotiable" (as such term is used in
Section 7-104 of the Uniform Commercial Code as in effect in any relevant
jurisdiction or under other relevant law).

               6.3 Additional Information. Each Assignor will, at its own
expense, from time to time upon the reasonable request of the Collateral Agent,
promptly (and in any event within 10 days after its receipt of the respective
request) furnish to the Collateral Agent such information with respect to the
Collateral (including the identity of the Collateral or such components thereof
as may have been requested by the Collateral Agent, the value and location of
such Collateral, etc.) as may be requested by the Collateral Agent. Without
limiting the forgoing, each Assignor agrees that it shall promptly (and in any
event within 10 business days after its receipt of the respective request)
furnish to the Collateral Agent such updated Annexes hereto as may from time to
time be reasonably requested by the Collateral Agent.

                                      -15-

<PAGE>

               6.4 Further Actions. Each Assignor will, at its own expense and
upon the reasonable request of the Collateral Agent, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
lists, descriptions and designations of its Collateral, warehouse receipts,
receipts in the nature of warehouse receipts, bills of lading, documents of
title, vouchers, invoices, schedules, confirmatory assignments, conveyances,
financing statements, transfer endorsements, certificates, reports and other
assurances or instruments and take such further steps relating to the Collateral
and other property or rights covered by the security interest hereby granted,
which the Collateral Agent deems reasonably appropriate or advisable to perfect,
preserve or protect its security interest in the Collateral.

               6.5 Financing Statements. Each Assignor agrees to execute and
deliver to the Collateral Agent such financing statements, in form reasonably
acceptable to the Collateral Agent, as the Collateral Agent may from time to
time reasonably request or as are reasonably necessary or desirable in the
opinion of the Collateral Agent to establish and maintain a valid, enforceable,
perfected security interest in the Collateral as provided herein and the other
rights and security contemplated hereby. Each Assignor will pay any applicable
filing fees, recordation taxes and related expenses relating to its Collateral.
Each Assignor hereby authorizes the Collateral Agent to file any such financing
statements and amendments thereto without the signature of such Assignor where
permitted by law (and such authorization includes describing the Collateral as
"all assets" of such Assignor).

                                   ARTICLE VII

                 REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

               7.1 Remedies; Obtaining the Collateral Upon Default. Each
Assignor agrees that, if any Event of Default shall have occurred and be
continuing, then and in every such case, the Collateral Agent, in addition to
any rights now or hereafter existing under applicable law and under the other
provisions of this Agreement, shall have all rights as a secured creditor under
any UCC, and such additional rights and remedies to which a secured creditor is
entitled under the laws in effect in all relevant jurisdictions and may to the
fullest extent permitted by applicable law:

               (i)    personally, or by agents or attorneys, immediately take
         possession of the Collateral or any part thereof, from such Assignor or
         any other Person who then has possession of any part thereof with or
         without notice or process of law, and for that purpose may enter upon
         such Assignor's premises where any of the Collateral is located and
         remove the same and use in connection with such removal any and all
         services, supplies, aids and other facilities of such Assignor;

               (ii)   instruct the obligor or obligors on any agreement,
         instrument or other obligation (including, without limitation, the
         Accounts and the Contracts) constituting the Collateral to make any
         payment required by the terms of such agreement, instrument or other
         obligation directly to the Collateral Agent and may exercise any and
         all remedies of such Assignor in respect of such Collateral;

                                      -16-

<PAGE>

               (iii)  instruct all banks which have entered into a control
         agreement with the Collateral Agent to transfer all monies, securities
         and instruments held by such depositary bank to the Cash Collateral
         Account;

               (iv)   sell, assign or otherwise liquidate any or all of the
         Collateral or any part thereof in accordance with Section 7.2 hereof,
         or direct the relevant Assignor to sell, assign or otherwise liquidate
         any or all of the Collateral or any part thereof, and, in each case,
         take possession of the proceeds of any such sale or liquidation;

               (v)    take possession of the Collateral or any part thereof, by
         directing the relevant Assignor in writing to deliver the same to the
         Collateral Agent at any reasonable place or places designated by the
         Collateral Agent, in which event such Assignor shall at its own
         expense:

                      (x)   forthwith cause the same to be moved to the place or
                  places so designated by the Collateral Agent and there
                  delivered to the Collateral Agent;

                      (y)   store and keep any Collateral so delivered to the
                  Collateral Agent at such place or places pending further
                  action by the Collateral Agent as provided in Section 7.2
                  hereof; and

                      (z)   while the Collateral shall be so stored and kept,
                  provide such security and maintenance services as shall be
                  reasonably necessary to protect the same and to preserve and
                  maintain it in good condition;

               (vi)   license or sublicense, whether on an exclusive or
         nonexclusive basis, any Marks, Domain Names, Patents or Copyrights
         included in the Collateral for such term and on such conditions and in
         such manner as the Collateral Agent shall in its sole judgment
         determine;

               (vii)  apply any monies constituting Collateral or proceeds
         thereof in accordance with the provisions of Section 7.4; and

               (viii) take any other action as specified in clauses (1) through
         (5), inclusive, of Section 9-607 of the UCC;

it being understood that each Assignor's obligation so to deliver the Collateral
is of the essence of this Agreement and that, accordingly, upon application to a
court of equity having jurisdiction, the Collateral Agent shall be entitled to a
decree requiring specific performance by such Assignor of said obligation. By
accepting the benefits of this Agreement and each other Collateral Document, the
Secured Creditors expressly acknowledge and agree that this Agreement and each
other Collateral Document may be enforced only by the action of the Collateral
Agent acting upon the instructions of the Required Secured Creditors and that no
other Secured Creditor shall have any right individually to seek to enforce this
Agreement or any other Collateral Document or to realize upon the security to be
granted hereby or thereby, it being understood and agreed that such rights and
remedies may be exercised by the Collateral Agent for the benefit of the Secured
Creditors upon the terms of this Agreement and the other Collateral Documents.

                                      -17-

<PAGE>

               7.2 Remedies; Disposition of the Collateral. If any Event of
Default shall have occurred and be continuing, then any Collateral repossessed
by the Collateral Agent under or pursuant to Section 7.1 hereof and any other
Collateral whether or not so repossessed by the Collateral Agent, may be sold,
assigned, leased or otherwise disposed of under one or more contracts or as an
entirety, and without the necessity of gathering at the place of sale the
property to be sold, and in general in such manner, at such time or times, at
such place or places and on such terms as the Collateral Agent may, in
compliance with any mandatory requirements of applicable law, determine to be
commercially reasonable. Any of the Collateral may be sold, leased or otherwise
disposed of, in the condition in which the same existed when taken by the
Collateral Agent or after any overhaul or repair at the expense of the relevant
Assignor which the Collateral Agent shall determine to be commercially
reasonable. Any such sale, lease or other disposition may be effected by means
of a public disposition or private disposition, effected in accordance with the
applicable requirements (in each case if and to the extent applicable) of
Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements
of applicable law as may apply to the respective disposition. The Collateral
Agent may, without notice or publication, adjourn any public or private
disposition or cause the same to be adjourned from time to time by announcement
at the time and place fixed for the disposition, and such disposition may be
made at any time or place to which the disposition may be so adjourned. To the
extent permitted by any such requirement of law, the Collateral Agent may bid
for and become the purchaser (and may pay all or any portion of the purchase
price by crediting Obligations against the purchase price) of the Collateral or
any item thereof, offered for disposition in accordance with this Section 7.2
without accountability to the relevant Assignor. If, under applicable law, the
Collateral Agent shall be permitted to make disposition of the Collateral within
a period of time which does not permit the giving of notice to the relevant
Assignor as hereinabove specified, the Collateral Agent need give such Assignor
only such notice of disposition as shall be required by such applicable law.
Each Assignor agrees to do or cause to be done all such other acts and things as
may be reasonably necessary to make such disposition or dispositions of all or
any portion of the Collateral valid and binding and in compliance with any and
all applicable laws, regulations, orders, writs, injunctions, decrees or awards
of any and all courts, arbitrators or governmental instrumentalities, domestic
or foreign, having jurisdiction over any such sale or sales, all at such
Assignor's expense.

               7.3 Waiver of Claims. Except as otherwise provided in this
Agreement, EACH ASSIGNOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT'S
TAKING POSSESSION OR THE COLLATERAL AGENT'S DISPOSITION OF ANY OF THE
COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING
FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Assignor hereby further waives,
to the extent permitted by law:

               (i)    all damages occasioned by such taking of possession or any
         such disposition except any damages which are the direct result of the
         Collateral Agent's gross negligence, bad faith or willful misconduct;

               (ii)   all other requirements as to the time, place and terms of
         sale or other requirements with respect to the enforcement of the
         Collateral Agent's rights hereunder; and

                                      -18-

<PAGE>

               (iii)  all rights of redemption, appraisement, valuation, stay,
         extension or moratorium now or hereafter in force under any applicable
         law in order to prevent or delay the enforcement of this Agreement or
         the absolute sale of the Collateral or any portion thereof, and each
         Assignor, for itself and all who may claim under it, insofar as it or
         they now or hereafter lawfully may, hereby waives the benefit of all
         such laws.

Any sale of, or the grant of options to purchase, or any other realization upon,
any Collateral shall operate to divest all right, title, interest, claim and
demand, either at law or in equity, of the relevant Assignor therein and
thereto, and shall be a perpetual bar both at law and in equity against such
Assignor and against any and all Persons claiming or attempting to claim the
Collateral so sold, optioned or realized upon, or any part thereof, from,
through and under such Assignor.

               7.4 Application of Proceeds. (a) All moneys collected by the
Collateral Agent (or, to the extent the Pledge Agreement or any other Collateral
Document requires proceeds of collateral under such other Collateral Document to
be applied in accordance with the provisions of this Agreement, the Pledgee or
Collateral Agent under such other Collateral Document) upon any sale or other
disposition of the Collateral, together with all other moneys received by the
Collateral Agent hereunder, shall be applied as follows:

               (i)    first, to the payment of all amounts owing the Collateral
         Agent of the type described in clauses (iii), (iv) and (v) of the
         definition of "Obligations";

               (ii)   second, to the extent proceeds remain after the
         application pursuant to the preceding clause (i), to the payment of all
         amounts owing to any Agent of the type described in clauses (v) and
         (vi) of the definition of "Obligations";

               (iii)  third, to the extent proceeds remain after the application
         pursuant to the preceding clauses (i) and (ii), an amount equal to the
         outstanding Primary Obligations shall be paid to the Secured Creditors
         as provided in Section 7.4(e) hereof, with each Secured Creditor
         receiving an amount equal to its outstanding Primary Obligations or, if
         the proceeds are insufficient to pay in full all such Primary
         Obligations, its Pro Rata Share of the amount remaining to be
         distributed;

               (iv)   fourth, to the extent proceeds remain after the
         application pursuant to the preceding clauses (i) through (iii),
         inclusive, an amount equal to the outstanding Secondary Obligations
         shall be paid to the Secured Creditors as provided in Section 7.4(e)
         hereof, with each Secured Creditor receiving an amount equal to its
         outstanding Secondary Obligations or, if the proceeds are insufficient
         to pay in full all such Secondary Obligations, its Pro Rata Share of
         the amount remaining to be distributed; and

               (v)    fifth, to the extent proceeds remain after the application
         pursuant to the preceding clauses (i) through (iv), inclusive, and
         following the termination of this Agreement pursuant to Section 10.8(a)
         hereof, to the relevant Assignor or to whomever may be lawfully
         entitled to receive such surplus.

               (b)    For purposes of this Agreement, (x) "Pro Rata Share" shall
mean, when calculating a Secured Creditor's portion of any distribution or
amount, that amount (expressed as

                                      -19-

<PAGE>

a percentage) equal to a fraction the numerator of which is the then unpaid
amount of such Secured Creditor's Primary Obligations or Secondary Obligations,
as the case may be, and the denominator of which is the then outstanding amount
of all Primary Obligations or Secondary Obligations, as the case may be, (y)
"Primary Obligations" shall mean (i) in the case of the Loan Document
Obligations, all principal of, premium, fees and interest on, all Loans, all
amounts of unreimbursed drawings under Letters of Credit, the stated amount of
all outstanding Letters of Credit and all fees with respect to Letters of Credit
and (ii) in the case of the Other Obligations, all amounts due under such
Secured Hedging Agreements (other than indemnities, fees (including, without
limitation, attorneys' fees) and similar obligations and liabilities) and (z)
"Secondary Obligations" shall mean all Obligations other than Primary
Obligations.

               (c)    When payments to Secured Creditors are based upon their
respective Pro Rata Shares, the amounts received by such Secured Creditors
hereunder shall be applied (for purposes of making determinations under this
Section 7.4 only) (i) first, to their Primary Obligations and (ii) second, to
their Secondary Obligations. If any payment to any Secured Creditor of its Pro
Rata Share of any distribution would result in overpayment to such Secured
Creditor, such excess amount shall instead be distributed in respect of the
unpaid Primary Obligations or Secondary Obligations, as the case may be, of the
other Secured Creditors, with each Secured Creditor whose Primary Obligations or
Secondary Obligations, as the case may be, have not been paid in full to receive
an amount equal to such excess amount multiplied by a fraction the numerator of
which is the unpaid Primary Obligations or Secondary Obligations, as the case
may be, of such Secured Creditor and the denominator of which is the unpaid
Primary Obligations or Secondary Obligations, as the case may be, of all Secured
Creditors entitled to such distribution.

               (d)    Each of the Secured Creditors, by their acceptance of the
benefits hereof and of the other Collateral Documents, agrees and acknowledges
that if the Lender Creditors receive a distribution on account of undrawn
amounts with respect to Letters of Credit issued under the Credit Agreement
(which shall only occur after all outstanding Revolving Loans under the Credit
Agreement and unreimbursed drawings under Letters of Credit have been paid in
full), such amounts shall be paid to the Administrative Agent under the Credit
Agreement and held by it, for the equal and ratable benefit of the Lender
Creditors, as cash security for the repayment of Obligations owing to the Lender
Creditors as such. If any amounts are held as cash security pursuant to the
immediately preceding sentence, then upon the termination of all outstanding
Letters of Credit under the Credit Agreement, and after the application of all
such cash security to the repayment of all Obligations owing to the Lender
Creditors after giving effect to the termination of all such Letters of Credit,
if there remains any excess cash, such excess cash shall be returned by the
Administrative Agent to the Collateral Agent for distribution in accordance with
Section 7.4(a) hereof.

               (e)    All payments required to be made hereunder shall be made
(x) if to the Lender Creditors, to the Administrative Agent for the account of
the Lender Creditors and (y) if to the Other Creditors, to the trustee, paying
agent or other similar representative (each a "Representative") for the Other
Creditors or, in the absence of such a Representative, directly to the Other
Creditors.

               (f)    For purposes of applying payments received in accordance
with this Section 7.4, the Collateral Agent shall be entitled to rely upon (i)
the Administrative Agent and

                                      -20-

<PAGE>

(ii) the Representative or, in the absence of such a Representative, upon the
Other Creditors for a determination (which the Administrative Agent, each
Representative and the Other Creditors agree (or shall agree) to provide upon
request of the Collateral Agent) of the outstanding Primary Obligations and
Secondary Obligations owed to the Lender Creditors or the Other Creditors, as
the case may be. Unless it has received written notice from a Lender Creditor or
an Other Creditor to the contrary, the Administrative Agent and each
Representative, in furnishing information pursuant to the preceding sentence,
and the Collateral Agent, in acting hereunder, shall be entitled to assume that
no Secondary Obligations are outstanding. Unless it has written notice from an
Other Creditor to the contrary, the Collateral Agent, in acting hereunder, shall
be entitled to assume that no Secured Hedging Agreements are in existence.

               (g)    This Agreement is made with full recourse to each Assignor
(including, without limitation, with full recourse to all assets of such
Assignor) and pursuant to and upon all the warranties, representations,
covenants and agreements on the part of such Assignor contained herein, in the
other Secured Debt Agreements and otherwise in writing in connection herewith or
therewith. It is understood that the Assignors shall remain jointly and
severally liable to the extent of any deficiency between the amount of the
proceeds of the Collateral and the aggregate amount of the Obligations.

               7.5 Remedies Cumulative. Each and every right, power and remedy
hereby specifically given to the Collateral Agent shall be in addition to every
other right, power and remedy specifically given to the Collateral Agent under
this Agreement, the other Secured Debt Agreements or now or hereafter existing
at law, in equity or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from
time to time or simultaneously and as often and in such order as may be deemed
expedient by the Collateral Agent. All such rights, powers and remedies shall be
cumulative and the exercise or the beginning of the exercise of one shall not be
deemed a waiver of the right to exercise any other or others. No delay or
omission of the Collateral Agent in the exercise of any such right, power or
remedy and no renewal or extension of any of the Obligations shall impair any
such right, power or remedy or shall be construed to be a waiver of any
Potential Event of Default or Event of Default or an acquiescence thereof. No
notice to or demand on any Assignor in any case shall entitle it to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of any of the rights of the Collateral Agent to any other or further
action in any circumstances without notice or demand. In the event that the
Collateral Agent shall bring any suit to enforce any of its rights hereunder and
shall be entitled to judgment, then in such suit the Collateral Agent may
recover reasonable expenses, including reasonable attorneys' fees, and the
amounts thereof shall be included in such judgment.

               7.6 Discontinuance of Proceedings. In case the Collateral Agent
shall have instituted any proceeding to enforce any right, power or remedy under
this Agreement by foreclosure, sale, entry or otherwise, and such proceeding
shall have been discontinued or abandoned for any reason or shall have been
determined adversely to the Collateral Agent, then and in every such case the
relevant Assignor, except to the extent otherwise prohibited by such
determination, the Collateral Agent and each holder of any of the Obligations
shall be restored to their former positions and rights hereunder with respect to
the Collateral subject to the security interest created under this Agreement,
and all rights, remedies and powers of the Collateral Agent shall continue as if
no such proceeding had been instituted.

                                      -21-

<PAGE>

                                  ARTICLE VIII

                                    INDEMNITY

               8.1 Indemnity. (a) Each Assignor jointly and severally agrees to
indemnify, reimburse and hold the Collateral Agent, each other Secured Creditor
and their respective successors, assigns, employees, affiliates and agents
(hereinafter in this Section 8.1 referred to individually as "Indemnitee," and
collectively as "Indemnitees") harmless from any and all liabilities,
obligations, damages, injuries, penalties, claims, demands, actions, suits,
judgments and any and all costs, expenses or disbursements (including reasonable
attorneys' fees and expenses) (for the purposes of this Section 8.1 the
foregoing are collectively called "expenses") of whatsoever kind and nature
imposed on, asserted against or incurred by any of the Indemnitees in any way
relating to or arising out of this Agreement, any other Secured Debt Agreement
or any other document executed in connection herewith or therewith or in any
other way connected with the administration of the transactions contemplated
hereby or thereby or the enforcement of any of the terms of, or the preservation
of any rights under any thereof, or in any way relating to or arising out of the
manufacture, ownership, ordering, purchase, delivery, control, acceptance,
lease, financing, possession, operation, condition, sale, return or other
disposition, or use of the Collateral (including, without limitation, latent or
other defects, whether or not discoverable), the violation of the laws of any
country, state or other governmental body or unit, any tort (including, without
limitation, claims arising or imposed under the doctrine of strict liability, or
for or on account of injury to or the death of any Person (including any
Indemnitee), or property damage), or contract claim; provided that no Indemnitee
shall be indemnified pursuant to this Section 8.1(a) for losses, damages or
liabilities to the extent caused by the gross negligence, bad faith or willful
misconduct of such Indemnitee. Each Assignor agrees that upon written notice by
any Indemnitee of the assertion of such a liability, obligation, damage, injury,
penalty, claim, demand, action, suit or judgment, the relevant Assignor shall
assume full responsibility for the defense thereof. Each Indemnitee agrees to
use its best efforts to promptly notify the relevant Assignor of any such
assertion of which such Indemnitee has knowledge.

               (b)    Without limiting the application of Section 8.1(a) hereof,
each Assignor agrees, jointly and severally, to pay or reimburse the Collateral
Agent for any and all reasonable fees, costs and expenses of whatever kind or
nature incurred in connection with the creation, preservation or protection of
the Collateral Agent's Liens on, and security interest in, the Collateral,
including, without limitation, all fees and taxes in connection with the
recording or filing of instruments and documents in public offices, payment or
discharge of any taxes or Liens upon or in respect of the Collateral, premiums
for insurance with respect to the Collateral and all other fees, costs and
expenses in connection with protecting, maintaining or preserving the Collateral
and the Collateral Agent's interest therein, whether through judicial
proceedings or otherwise, or in defending or prosecuting any actions, suits or
proceedings arising out of or relating to the Collateral.

               (c)    Without limiting the application of Section 8.1(a) or (b)
hereof, each Assignor agrees, jointly and severally, to pay, indemnify and hold
each Indemnitee harmless from and against any loss, costs, damages and expenses
which such Indemnitee may suffer, expend or incur in consequence of or growing
out of any misrepresentation by any Assignor in

                                      -22-

<PAGE>

this Agreement, any other Secured Debt Agreement or in any writing contemplated
by or made or delivered pursuant to or in connection with this Agreement or any
other Secured Debt Agreement.

               (d)    If and to the extent that the obligations of any Assignor
under this Section 8.1 are unenforceable for any reason, such Assignor hereby
agrees to make the maximum contribution to the payment and satisfaction of such
obligations which is permissible under applicable law.

               8.2 Indemnity Obligations Secured by Collateral; Survival. Any
amounts paid by any Indemnitee as to which such Indemnitee has the right to
reimbursement shall constitute Obligations secured by the Collateral. The
indemnity obligations of each Assignor contained in this Article VIII shall
continue in full force and effect notwithstanding the full payment of all of the
other Obligations and notwithstanding the full payment of all the Notes issued,
and Loans made, under the Credit Agreement, the termination of all Letters of
Credit issued under the Credit Agreement, the termination of all Secured Hedging
Agreements entered into with the Other Creditors and the payment of all other
Obligations and notwithstanding the discharge thereof and the occurrence of the
Termination Date.

                                   ARTICLE IX

                                   DEFINITIONS

               The following terms shall have the meanings herein specified.
Such definitions shall be equally applicable to the singular and plural forms of
the terms defined.

               "Account" shall mean any "account" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York, and in any event shall include but shall not be limited to, all rights to
payment of any monetary obligation, whether or not earned by performance, (i)
for property that has been or is to be sold, leased, licensed, assigned or
otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a
policy of insurance issued or to be issued, (iv) for a secondary obligation
incurred or to be incurred, (v) for energy provided or to be provided, (vi) for
the use or hire of a vessel under a charter or other contract, (vii) arising out
of the use of a credit or charge card or information contained on or for use
with the card, or (viii) as winnings in a lottery or other game of chance
operated or sponsored by a State, governmental unit of a State, or person
licensed or authorized to operate the game by a State or governmental unit of a
State. Without limiting the foregoing, the term "account" shall include all
Health-Care-Insurance Receivables.

               "Administrative Agent" shall have the meaning provided in the
recitals of this Agreement.

               "Agreement" shall mean this Security Agreement as the same may be
modified, supplemented or amended from time to time in accordance with its
terms.

                                      -23-

<PAGE>

               "As-Extracted Collateral" shall mean "as-extracted collateral" as
such term is defined in the Uniform Commercial Code as in effect on the date
hereof in the State of New York.

               "Assignor" shall have the meaning provided in the first paragraph
of this Agreement.

               "Borrower" shall have the meaning provided in the recitals of
this Agreement.

               "Cash Collateral Account" shall mean a cash collateral account
maintained with, and in the sole dominion and control of, the Collateral Agent
for the benefit of the Secured Creditors.

               "Chattel Paper" shall mean "chattel paper" as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the
State of New York. Without limiting the foregoing, the term "Chattel Paper"
shall in any event include all Tangible Chattel Paper and all Electronic Chattel
Paper.

               "Class" shall have the meaning provided in Section 10.2 of this
Agreement.

               "Collateral" shall have the meaning provided in Section 1.1(a) of
this Agreement.

               "Collateral Agent" shall have the meaning provided in the first
paragraph of this Agreement.

               "Commercial Tort Claims" shall mean "commercial tort claims" as
such term is defined in the Uniform Commercial Code as in effect on the date
hereof in the State of New York.

               "Contract Rights" shall mean all rights of any Assignor under
each Contract, including, without limitation, (i) any and all rights to receive
and demand payments under any or all Contracts, (ii) any and all rights to
receive and compel performance under any or all Contracts and (iii) any and all
other rights, interests and claims now existing or in the future arising in
connection with any or all Contracts.

               "Contracts" shall mean all contracts between any Assignor and one
or more additional parties (including, without limitation, any Secured Hedging
Agreements, licensing agreements and any partnership agreements, joint venture
agreements and limited liability company agreements).

               "Copyrights" shall mean any United States copyright owned by any
Assignor, including any registrations of any copyrights, in the United States
Copyright Office or any foreign equivalent office, as well as any application
for a copyright registration now or hereafter made with the United States
Copyright Office or any foreign equivalent office by any Assignor.

               "Credit Agreement" shall have the meaning provided in the
recitals of this Agreement.

                                      -24-

<PAGE>

               "Default" shall mean any event which with notice or lapse of
time, or both, would constitute an Event of Default.

               "Deposit Accounts" shall mean all "deposit accounts" as such term
is defined in the Uniform Commercial Code as in effect on the date hereof in the
State of New York.

               "Documents" shall mean "documents" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York.

               "Domain Names" shall mean all Internet domain names and
associated URL addresses in or to which any Assignor now or hereafter has any
right, title or interest.

               "Electronic Chattel Paper" shall mean "electronic chattel paper"
as such term is defined in the Uniform Commercial Code as in effect on the date
hereof in the State of New York.

               "Equipment" shall mean any "equipment" as such term is defined in
the Uniform Commercial Code as in effect on the date hereof in the State of New
York, and in any event, shall include, but shall not be limited to, all
machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned
by any Assignor and any and all additions, substitutions and replacements of any
of the foregoing and all accessions thereto, wherever located, together with all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto.

               "Event of Default" shall mean any Event of Default under, and as
defined in, the Credit Agreement and shall in any event include, without
limitation, any payment default on any of the Obligations after the expiration
of any applicable grace period.

               "General Intangibles" shall mean "general intangibles" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

               "Goods" shall mean "goods" as such term is defined in the Uniform
Commercial Code as in effect on the date hereof in the State of New York.

               "Health-Care-Insurance Receivable" shall mean any
"health-care-insurance receivable" as such term is defined in the Uniform
Commercial Code as in effect on the date hereof in the State of New York.

               "Indemnitee" shall have the meaning provided in Section 8.1(a) of
this Agreement.

               "Instrument" shall mean "instruments" as such term is defined in
the Uniform Commercial Code as in effect on the date hereof in the State of New
York.

               "Inventory" shall mean merchandise, inventory and goods, and all
additions, substitutions and replacements thereof and all accessions thereto,
wherever located, together with all goods, supplies, incidentals, packaging
materials, labels, materials and any other items used or usable in
manufacturing, processing, packaging or shipping same, in all stages of
production

                                      -25-

<PAGE>

from raw materials through work in process to finished goods, and all products
and proceeds of whatever sort and wherever located any portion thereof which may
be returned, rejected, reclaimed or repossessed by the Collateral Agent from any
Assignor's customers, and shall specifically include all "inventory" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

               "Investment Property" shall mean "investment property" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

               "Lender Creditors" shall have the meaning provided in the
recitals of this Agreement.

               "Lenders" shall have the meaning provided in the recitals of this
Agreement.

               "Letter-of-Credit Rights" shall mean "letter-of-credit rights" as
such term is defined in the Uniform Commercial Code as in effect on the date
hereof in the State of New York.

               "Liens" shall mean any security interest, mortgage, pledge, lien,
claim, charge, encumbrance, title retention agreement, lessor's interest in a
financing lease or analogous instrument, in, of, or on any Assignor's property.

               "Loan Document Obligations" shall have the meaning provided in
the definition of "Obligations" in this Article IX.

               "Location" of any Assignor, shall mean such Assignor's "location"
as determined pursuant to Section 9-307 of the UCC.

               "Marks" shall mean all right, title and interest in and to any
trademarks, service marks and trade names now held or hereafter acquired by any
Assignor, including any registration or application for registration of any
trademarks and service marks now held or hereafter acquired by any Assignor,
which are registered or filed in the United States Patent and Trademark Office
or the equivalent thereof in any state of the United States or any equivalent
foreign office or agency, as well as any unregistered trademarks and service
marks used by an Assignor and any trade dress including logos, designs,
fictitious business names and other business identifiers used by any Assignor.

               "Material Adverse Effect" shall mean a material adverse effect on
the business, property, assets, liabilities (actual or contingent), operations
or condition (financial or otherwise) of the Borrower and its Subsidiaries taken
as a whole.

               "Obligations" shall mean and include all of the following:

               (i)    the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations,
         liabilities and indebtedness (including, without limitation, principal,
         premium, interest (including, without limitation, all interest that
         accrues after the commencement of any case, proceeding or other action
         relating to the bankruptcy, insolvency, reorganization or similar
         proceeding of any Assignor at the rate

                                      -26-

<PAGE>

         provided for in the respective documentation, whether or not a claim
         for post-petition interest is allowed in any such proceeding),
         reimbursement obligations under Letters of Credit, fees, costs and
         indemnities) of each Assignor to the Lender Creditors, whether now
         existing or hereafter incurred under, arising out of, or in connection
         with, the Credit Agreement and the other Loan Documents to which such
         Assignor is a party (including, in the case of each Assignor that is a
         Guarantor, all such obligations, liabilities and indebtedness of such
         Assignor under the Subsidiaries Guaranty) and the due performance and
         compliance by such Assignor with all of the terms, conditions and
         agreements contained in the Credit Agreement and in such other Loan
         Documents (all such obligations, liabilities and indebtedness under
         this clause (i), except to the extent consisting of obligations or
         indebtedness with respect to Secured Hedging Agreements, being herein
         collectively called the "Loan Document Obligations");

               (ii)   the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations,
         liabilities and indebtedness (including, without limitation, all
         interest that accrues after the commencement of any case, proceeding or
         other action relating to the bankruptcy, insolvency, reorganization or
         similar proceeding of any Assignor at the rate provided for in the
         respective documentation, whether or not a claim for post-petition
         interest is allowed in any such proceeding) owing by such Assignor to
         the Other Creditors under, or with respect to (including, in the case
         of each Assignor that is a Guarantor, all such obligations, liabilities
         and indebtedness of such Assignor under the Subsidiaries Guaranty),
         each Secured Hedging Agreement, whether such Secured Hedging Agreement
         is now in existence or hereafter arising, and the due performance and
         compliance by such Assignor with all of the terms, conditions and
         agreements contained therein (all such obligations, liabilities and
         indebtedness described in this clause (ii) being herein collectively
         called the "Other Obligations");

               (iii)  any and all sums advanced by the Collateral Agent in order
         to preserve the Collateral or preserve its security interest in the
         Collateral;

               (iv)   in the event of any proceeding for the collection or
         enforcement of any indebtedness, obligations, or liabilities of such
         Assignor referred to in clauses (i) and (ii) above, after an Event of
         Default shall have occurred and be continuing, the reasonable expenses
         of retaking, holding, preparing for sale or lease, selling or otherwise
         disposing of or realizing on the Collateral, or of any exercise by the
         Collateral Agent of its rights hereunder, together with reasonable
         attorneys' fees and court costs;

               (v)    all amounts paid by any Indemnitee as to which such
         Indemnitee has the right to reimbursement under Section 8.1 of this
         Agreement; and

               (vi)   all amounts owing to any Agent pursuant to any of the Loan
         Documents in its capacity as such;

it being acknowledged and agreed that the "Obligations" shall include extensions
of credit of the types described above, whether outstanding on the date of this
Agreement or extended from time to time after the date of this Agreement.

                                      -27-

<PAGE>

               "Other Creditors" shall have the meaning provided in the recitals
of this Agreement.

               "Other Obligations" shall have the meaning provided in the
definition of "Obligations" in this Article IX.

               "Patents" shall mean any patent to which any Assignor now or
hereafter has any right, title or interest therein, and any divisions,
continuations (including, but not limited to, continuations-in-parts) and
improvements thereof, as well as any application for a patent now or hereafter
made by any Assignor.

               "Permits" shall mean, to the extent permitted to be assigned by
the terms thereof or by applicable law, all licenses, permits, rights, orders,
variances, franchises or authorizations of or from any governmental authority or
agency.

               "Primary Obligations" shall have the meaning provided in Section
7.4(b) of this Agreement.

               "Pro Rata Share" shall have the meaning provided in Section
7.4(b) of this Agreement.

               "Proceeds" shall mean all "proceeds" as such term is defined in
the Uniform Commercial Code as in effect in the State of New York on the date
hereof and, in any event, shall also include, but not be limited to, (i) any and
all proceeds of any insurance, indemnity, warranty or guaranty payable to the
Collateral Agent or any Assignor from time to time with respect to any of the
Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to any Assignor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any person acting under color of
governmental authority) and (iii) any and all other amounts from time to time
paid or payable under or in connection with any of the Collateral.

               "Registered Organization" shall have the meaning provided in the
Uniform Commercial Code as in effect in the State of New York.

               "Representative" shall have the meaning provided in Section
7.4(e) of this Agreement.

               "Required Secured Creditors" shall mean (i) at any time when any
Loan Document Obligations are outstanding or any Commitments under the Credit
Agreement exist, the Requisite Lenders (or, to the extent provided in Section
10.6 of the Credit Agreement, each of the Lenders) and (ii) at any time after
all of the Loan Document Obligations have been paid in full and all Commitments
under the Credit Agreement have been terminated and no further Commitments may
be provided thereunder, the holders of a majority of the Other Obligations.

               "Requisite Creditors" shall have the meaning provided in Section
10.2 of this Agreement.

                                      -28-

<PAGE>

               "Secondary Obligations" shall have the meaning provided in
Section 7.4(b) of this Agreement.

               "Secured Creditors" shall have the meaning provided in the
recitals of this Agreement.

               "Secured Debt Agreements" shall mean and include this Agreement,
the other Loan Documents and the Secured Hedging Agreements entered into with
any Other Creditor.

               "Secured Hedging Agreements" shall have the meaning provided in
the recitals of this Agreement.

               "Software" shall mean "software" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York.

               "Specified Collateral Event" shall mean the failure of the
Company and its Subsidiaries to maintain a rating of at least "BB-" from
Standard & Poor's Ratings Group or at least "Ba3" from Moody's Investors
Service, Inc..

               "Supporting Obligations" shall mean any "supporting obligation"
as such term is defined in the Uniform Commercial Code as in effect on the date
hereof in the State of New York, now or hereafter owned by any Assignor, or in
which any Assignor has any rights, and, in any event, shall include, but shall
not be limited to all of such Assignor's rights in any Letter-of-Credit Right or
secondary obligation that supports the payment or performance of, and all
security for, any Account, Chattel Paper, Document, General Intangible,
Instrument or Investment Property."Tangible Chattel Paper" shall mean "tangible
chattel paper" as such term is defined in the Uniform Commercial Code as in
effect on the date hereof in the State of New York.

               "Termination Date" shall have the meaning provided in Section
10.8(a) of this Agreement.

               "Timber-to-be-Cut" shall mean "timber-to-be-cut" as such term is
used in the Uniform Commercial Code as in effect on the date hereof in the State
of New York.

               "Trade Secrets" shall mean any secretly held existing engineering
or other data, information, production procedures and other know-how relating to
the design, manufacture, assembly, installation, use, operation, marketing, sale
and/or servicing of any products or business of an Assignor worldwide, whether
written or not.

               "Trade Secret Rights" shall have the meaning provided in Section
5.1 of this Agreement.

               "Transmitting Utility" shall have the meaning given such term in
Section 9-102(a)(80) of the UCC.

                                      -29-

<PAGE>

               "UCC" shall mean the Uniform Commercial Code as in effect from
time to time in the relevant jurisdiction.

                                    ARTICLE X

                                  MISCELLANEOUS

               10.1 Notices. Except as otherwise specified herein, all notices,
requests, demands or other communications to or upon the respective parties
hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or
courier service and all such notices and communications shall, when mailed,
telegraphed, telexed, telecopied, or cabled or sent by courier, be effective
when deposited in the mails, delivered to the telegraph company, cable company
or overnight courier, as the case may be, or sent by telex or telecopier, except
that notices and communications to the Collateral Agent or any Assignor shall
not be effective until received by the Collateral Agent or such Assignor, as the
case may be. All notices and other communications shall be in writing and
addressed as follows:

               (a)    if to any Assignor, c/o:

                      Domino's, Inc.
                      30 Frank Lloyd Wright Drive
                      Ann Arbor, MI 48106
                      Attention of Joe Donovan, Vice President and Treasurer
                      Telephone No.: (734) 930-3111
                      Telecopier No.: (800) 472-2062

               (b)    if to the Collateral Agent, at:

                      JPMorgan Chase Bank
                      270 Park Avenue
                      New York, NY  10017
                      Attention:  Ms. Teri Streusand, Vice-President
                      Telephone No.:  (212) 270-9803
                      Telecopier No.: (212) 270-5646

               (c)    if to any Lender Creditor other than the Collateral Agent,
         at such address as such Lender Creditor shall have specified in the
         Credit Agreement;

               (d)    if to any Other Creditor, at such address as such Other
         Creditor shall have specified in writing to each Assignor and the
         Collateral Agent;

or at such other address or addressed to such other individual as shall have
been furnished in writing by any Person described above to the party required to
give notice hereunder.

               10.2 Waiver; Amendment. Except as provided in Sections 10.8 and
10.13, none of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by each Assignor directly affected thereby and the Collateral Agent;
provided, however, that any change, waiver, modification or variance

                                      -30-

<PAGE>

(with the written consent of either (x) the Requisite Lenders (or all of the
Lenders to the extent required by Section 10.6 of the Credit Agreement) at all
times prior to the time on which all Loan Document Obligations have been paid in
full or (y) the holders of at least a majority of the outstanding Other
Obligations at all times after the time on which all Loan Document Obligations
have been paid in full) affecting the rights and benefits of a single Class of
Secured Creditors (and not all Secured Creditors in a like or similar manner)
also shall require the written consent of the Requisite Creditors of such
affected Class. For the purpose of this Agreement, the term "Class" shall mean
each class of Secured Creditors, i.e., whether (x) the Lender Creditors as
holders of the Loan Document Obligations or (y) the Other Creditors as the
holders of the Other Obligations. For the purpose of this Agreement, the term
"Requisite Creditors" of any Class shall mean each of (x) with respect to the
Loan Document Obligations, the Requisite Lenders (or, to the extent provided in
subsection 10.6 of the Credit Agreement, each of the Lenders), and (y) with
respect to the Other Obligations, the holders of at least a majority of all
Other Obligations outstanding from time to time.

               10.3 Obligations Absolute. The obligations of each Assignor
hereunder shall remain in full force and effect without regard to, and shall not
be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of such Assignor; (b) any
exercise or non-exercise, or any waiver of, any right, remedy, power or
privilege under or in respect of this Agreement or any other Secured Debt
Agreement; or (c) any amendment to or modification of any Secured Debt Agreement
or any security for any of the Obligations; whether or not such Assignor shall
have notice or knowledge of any of the foregoing.

               10.4 Successors and Assigns. This Agreement shall be binding upon
each Assignor and its successors and assigns (although no Assignor may assign
its rights and obligations hereunder except in accordance with the provisions of
the Secured Debt Agreements) and shall inure to the benefit of the Collateral
Agent and the other Secured Creditors and their respective successors and
assigns. All agreements, statements, representations and warranties made by each
Assignor herein or in any certificate or other instrument delivered by such
Assignor or on its behalf under this Agreement shall be considered to have been
relied upon by the Secured Creditors and shall survive the execution and
delivery of this Agreement and the other Secured Debt Agreements regardless of
any investigation made by the Secured Creditors or on their behalf.

               10.5 Headings Descriptive. The headings of the several sections
of this Agreement are inserted for convenience only and shall not in any way
affect the meaning or construction of any provision of this Agreement.

               10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND,
BY EXECUTION AND DELIVERY OF

                                      -31-

<PAGE>

THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS. EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY
WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND
AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS
THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS
ADDRESS FOR NOTICES AS PROVIDED IN SECTION 10.1 ABOVE, SUCH SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES
ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND
AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR
UNDER ANY OTHER LOAN DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY
INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL
AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION.

               (b)    EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE
AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE
(a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM
IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

               (c)    EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                                      -32-

<PAGE>

               10.7 Assignor's Duties. It is expressly agreed, anything herein
contained to the contrary notwithstanding, that each Assignor shall remain
liable to perform all of the obligations, if any, assumed by it with respect to
the Collateral and the Collateral Agent shall not have any obligations or
liabilities with respect to any Collateral by reason of or arising out of this
Agreement provided, that the Collateral Agent shall be liable for the
safekeeping of the Collateral already in its possession, nor shall the
Collateral Agent be required or obligated in any manner to perform or fulfill
any of the obligations of any Assignor under or with respect to any Collateral.

               10.8 Termination; Release. (a) On the Termination Date, this
Agreement shall terminate (provided that all indemnities set forth herein
including, without limitation in Section 8.1 hereof, shall survive such
termination) and the Collateral Agent, at the request and expense of the
respective Assignor, will promptly execute and deliver to such Assignor a proper
instrument or instruments (including Uniform Commercial Code termination
statements) acknowledging the satisfaction and termination of this Agreement,
and will duly assign, transfer and deliver to such Assignor (without recourse
and without any representation or warranty) such of the Collateral as may be in
the possession of the Collateral Agent and as has not theretofore been sold or
otherwise applied or released pursuant to this Agreement. As used in this
Agreement, "Termination Date" shall mean the date upon which the Commitments
under the Credit Agreement have been terminated and all Secured Hedging
Agreements entered into with any Other Creditor have been terminated, no Note,
Loan or Letter of Credit is outstanding and all other Obligations (other than
indemnities described in Section 11 hereof and described in Section 10.3 of the
Credit Agreement, and any other indemnities set forth in any other Collateral
Documents, in each case which are not then due and payable) then due and payable
have been paid in full.

               (b)    In the event that any part of the Collateral is sold,
transferred or otherwise disposed of (x) at any time prior to the time at which
all Loan Document Obligations have been paid in full and all Commitments and
Letters of Credit under the Credit Agreement have been terminated, in connection
with a sale or disposition permitted by subsection 7.7 of the Credit Agreement
or is otherwise released at the direction of the Required Lenders (or all the
Lenders if required by subsection 10.6 of the Credit Agreement) or (y) at any
time thereafter, to the extent permitted by the other Secured Debt Agreements,
and in the case of clauses (x) and (y), the proceeds of such sale or disposition
(or from such release) are applied in accordance with the terms of the Credit
Agreement or such other Secured Debt Agreement, as the case may be, to the
extent required to be so applied, such Collateral will be sold, transferred or
otherwise disposed of free and clear of the Liens created by this Agreement and
the Collateral Agent, at the request and expense of the relevant Assignor, will
duly and promptly assign, transfer and deliver to such Assignor (without
recourse and without any representation or warranty) such of the Collateral as
is then being (or has been) so sold, transferred or otherwise disposed of, or
released, and as may be in the possession of the Collateral Agent and has not
theretofore been released pursuant to this Agreement. Furthermore, upon the
release of any Guarantor from the Subsidiaries Guaranty in accordance with the
provisions thereof, such Assignor (and the Collateral at such time assigned by
the respective Assignor pursuant hereto) shall be released from this Agreement.

               (c)    At any time that an Assignor desires that the Collateral
Agent take any action to acknowledge or give effect to any release of Collateral
pursuant to the foregoing

                                      -33-

<PAGE>

Section 10.8(a) or (b), such Assignor shall deliver to the Collateral Agent a
certificate signed by a senior officer of such Assignor stating that the release
of the respective Collateral is permitted pursuant to such Section 10.8(a) or
(b). At any time that Company or the respective Assignor desires that a
Subsidiary of Company which has been released from the Subsidiaries Guaranty be
released hereunder as provided in the last sentence of Section 10.8(b), it shall
deliver to the Collateral Agent a certificate signed by a principal executive
officer of Company and the respective Assignor stating that the release of the
respective Assignor (and its Collateral) is permitted pursuant to such Section
10.8(b).

               (d)    The Collateral Agent shall have no liability whatsoever to
any other Secured Party as the result of any release of Collateral by it in
accordance with this Section 10.8.

                                      -34-

<PAGE>

               10.9 Counterparts. This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument. A set of
counterparts executed by all the parties hereto shall be lodged with each
Assignor and the Collateral Agent.

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

               10.11 The Collateral Agent and the other Secured Creditors. The
Collateral Agent will hold in accordance with this Agreement all items of the
Collateral at any time received under this Agreement. It is expressly understood
and agreed that the obligations of the Collateral Agent as holder of the
Collateral and interests therein and with respect to the disposition thereof,
and otherwise under this Agreement, are only those expressly set forth in this
Agreement and in Section 9 of the Credit Agreement. The Collateral Agent shall
act hereunder on the terms and conditions set forth herein and in Section 9 of
the Credit Agreement.

               10.12 Benefit of Agreement. This Agreement shall be binding upon
the parties hereto and their respective successors and assigns and shall inure
to the benefit of and be enforceable by each of the parties hereto and its
successors and assigns.

               10.13 Additional Assignors. It is understood and agreed that any
Subsidiary of Holdings that desires to become an Assignor hereunder, or is
required to execute a counterpart of this Agreement after the date hereof
pursuant to the requirements of the Credit Agreement or any other Loan Document,
shall become an Assignor hereunder by executing a counterpart hereof and
delivering same to the Collateral Agent, (y) delivering supplements to Annexes A
through F, inclusive, and H through K, inclusive, hereto as are necessary to
cause such Annexes to be complete and accurate with respect to such additional
Assignor on such date and (z) taking all actions as specified in this Agreement
as would have been taken by such Assignor had it been an original party to this
Agreement, in each case with all documents required above to be delivered to the
Collateral Agent and with all documents and actions required above to be taken
to the reasonable satisfaction of the Collateral Agent.

    [Remainder of this page intentionally left blank; signature page follows]

                                      -35-

<PAGE>

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

                                        DOMINO'S, INC., as an Assignor

                                        By: /s/ Harry J. Silverman
                                            -------------------------------
                                        Title:  Vice President

                                        DOMINO'S FRANCHISE HOLDING CO.,
                                           as an Assignor

                                        By: /s/ Harry J. Silverman
                                            -------------------------------
                                        Title:  Vice President

                                         TISM, INC., as an Assignor,

                                        By: /s/ Harry J. Silverman
                                            -------------------------------
                                        Title:  Vice President

                                        DOMINO'S PIZZA LLC, as an Assignor,

                                        By: /s/ Harry J. Silverman
                                            -------------------------------
                                        Title:  Vice President

                                        DOMINO'S PIZZA INTERNATIONAL, INC.,
                                           as an Assignor,

                                        By: /s/ Harry J. Silverman
                                            -------------------------------
                                        Title:  Vice President

                                        DOMINO'S PIZZA GOVERNMENT SERVICES
                                        DIVISION, INC., as an Assignor,

                                        By: /s/ Joseph P. Donovan
                                            -------------------------------
                                        Title:  Treasurer

<PAGE>

                                        DOMINO'S PIZZA INTERNATIONAL
                                        PAYROLL SERVICES, INC., as an Assignor,

                                        By: /s/ Joseph P. Donovan
                                            -------------------------------
                                        Title:  Treasurer

                                        DOMINO'S PIZZA PMC, INC.,
                                           as an Assignor,

                                        By: /s/ Joseph P. Donovan
                                            -------------------------------
                                        Title:  Treasurer

                                        DOMINO'S PIZZA CALIFORNIA LLC,
                                           as an Assignor,

                                        By: /s/ Joseph P. Donovan
                                            -------------------------------
                                        Title:  Treasurer

Accepted and Agreed to:

JPMORGAN CHASE BANK,
  as Collateral Agent

By: /s/ Teri Streusand
    ---------------------------
     Title: Vice President

                                       -2-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I  SECURITY INTERESTS.....................................................................................2

         1.1  Grant of Security Interests.........................................................................2
         1.2  Power of Attorney...................................................................................4

ARTICLE II  GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS.....................................................4

         2.1  Necessary Filings...................................................................................4
         2.2  No Liens............................................................................................5
         2.3  Other Financing Statements..........................................................................5
         2.4  Chief Executive Office, Record Locations............................................................5
         2.5  Legal Names; Type of Organization (and Whether a Registered Organization and/or a
              Transmitting Utility); Jurisdiction of Organization; Location; Organizational
              Identification Numbers; Changes Thereto; Etc........................................................5
         2.6  Trade Names; Etc....................................................................................6
         2.7  Certain Significant Transactions....................................................................6
         2.8  Collateral in the Possession of a Bailee............................................................7
         2.9  Recourse............................................................................................7

ARTICLE III  SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND
         CERTAIN OTHER COLLATERAL.................................................................................7

         3.1  Additional Representations and Warranties...........................................................7
         3.2  Maintenance of Records..............................................................................7
         3.3  Direction to Account Debtors; Contracting Parties; Etc..............................................8
         3.4  Modification of Terms; Etc..........................................................................8
         3.5  Collection..........................................................................................8
         3.6  Instruments.........................................................................................9
         3.7  Assignors Remain Liable Under Accounts..............................................................9
         3.8  Assignors Remain Liable Under Contracts.............................................................9
         3.9  Deposit Accounts; Etc...............................................................................9
         3.10 Letter-of-Credit Rights............................................................................10
         3.11 Commercial Tort Claims.............................................................................11
         3.12 Chattel Paper......................................................................................11
         3.13 Further Actions....................................................................................11

ARTICLE IV  SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES............................................11

         4.1  Additional Representations and Warranties..........................................................11
         4.2  Licenses and Assignments...........................................................................12
         4.3  Infringements......................................................................................12
         4.4  Preservation of Marks and Domain Names.............................................................12
</TABLE>

                                       (i)

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
         4.5  Maintenance of Registration........................................................................12
         4.6  Future Registered Marks and Domain Names...........................................................12
         4.7  Remedies...........................................................................................13

ARTICLE V  SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS...................................13

         5.1  Additional Representations and Warranties..........................................................13
         5.2  Licenses and Assignments...........................................................................14
         5.3  Infringements......................................................................................14
         5.4  Maintenance of Patents or Copyrights...............................................................14
         5.5  Prosecution of Patent or Copyright Applications....................................................14
         5.6  Other Patents and Copyrights.......................................................................14
         5.7  Remedies...........................................................................................14

ARTICLE VI  PROVISIONS CONCERNING ALL COLLATERAL.................................................................15

         6.1  Protection of Collateral Agent's Security..........................................................15
         6.2  Warehouse Receipts Non-negotiable..................................................................15
         6.3  Additional Information.............................................................................15
         6.4  Further Actions....................................................................................16
         6.5  Financing Statements...............................................................................16

ARTICLE VII  REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT.....................................................16

         7.1  Remedies; Obtaining the Collateral Upon Default....................................................16
         7.2  Remedies; Disposition of the Collateral............................................................18
         7.3  Waiver of Claims...................................................................................18
         7.4  Application of Proceeds............................................................................19
         7.5  Remedies Cumulative................................................................................21
         7.6  Discontinuance of Proceedings......................................................................21

ARTICLE VIII  INDEMNITY..........................................................................................22

         8.1  Indemnity..........................................................................................22
         8.2  Indemnity Obligations Secured by Collateral; Survival..............................................23

ARTICLE IX  DEFINITIONS..........................................................................................23

ARTICLE X  MISCELLANEOUS.........................................................................................30

         10.1 Notices............................................................................................30
         10.2 Waiver; Amendment..................................................................................30
         10.3 Obligations Absolute...............................................................................31
         10.4 Successors and Assigns.............................................................................31
         10.5 Headings Descriptive...............................................................................31
</TABLE>

                                      (ii)

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
         10.6  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL............................31
         10.7  Assignor's Duties.................................................................................33
         10.8  Termination; Release..............................................................................33
         10.9  Counterparts......................................................................................35
         10.10 Severability......................................................................................35
         10.11 The Collateral Agent and the other Secured Creditors..............................................35
         10.12 Benefit of Agreement..............................................................................35
         10.13 Additional Assignors..............................................................................35

ANNEX A         Schedule of Chief Executive Offices
ANNEX B         [RESERVED]
ANNEX C         Schedule of Legal Names, Type of Organization (and Whether a Registered Organization and/or a
                Transmitting Utility), Jurisdiction of Organization, Location and Organizational Identification
                Numbers
ANNEX D         Schedule of Trade and Fictitious Names
ANNEX E         Description of Certain Significant Transactions Occurring Within One Year Prior to the
                Date of the Security Agreement
ANNEX F         Schedule of Deposit Accounts
ANNEX G         Form of Control Agreement Regarding Deposit Accounts
ANNEX H         Schedule of Commercial Tort Claims
ANNEX I         Schedule of Marks and Internet Domain Name Registrations
ANNEX J         Schedule of Patents
ANNEX K         Schedule of Copyrights
ANNEX L         Grant of Security Interest in United States Trademarks
ANNEX M         Grant of Security Interest in United States Patents
ANNEX N         Grant of Security Interest in United States Copyrights
</TABLE>

                                      (iii)

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