Document:

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                                                                   EXHIBIT 10.11

                                                                  Execution Copy

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                              AMENDED AND RESTATED
                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                               NBC HOLDINGS CORP.,

                             NBC ACQUISITION CORP.,

                           NEBRASKA BOOK COMPANY, INC.

                                       and

                              SPECIALTY BOOKS, INC.

                                   in favor of

                              JPMORGAN CHASE BANK,
                             as Administrative Agent

                         Dated as of February 13, 1998,
     as amended and restated as of December 10, 2003 and as further amended
                        and restated as of March 4, 2004

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                                TABLE OF CONTENTS

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SECTION 1.   DEFINED TERMS.......................................................................................       2
         1.1   Definitions.......................................................................................       2
         1.2   Other Definitional Provisions.....................................................................       5

SECTION 2.   GUARANTEE...........................................................................................       5
         2.1   Guarantee.........................................................................................       5
         2.2   Right of Contribution.............................................................................       6
         2.3   No Subrogation....................................................................................       6
         2.4   Amendments, etc. with respect to the Borrower Obligations.........................................       6
         2.5   Guarantee Absolute and Unconditional..............................................................       7
         2.6   Reinstatement.....................................................................................       8
         2.7   Payments..........................................................................................       8

SECTION 3.   GRANT OF SECURITY INTEREST..........................................................................       8

SECTION 4.   REPRESENTATIONS AND WARRANTIES......................................................................       9
         4.1   Representations in Credit Agreement...............................................................       9
         4.2   Title; No Other Liens.............................................................................       9
         4.3   Perfected First Priority Liens....................................................................      10
         4.4   Jurisdiction of Organization; Chief Executive Office..............................................      10
         4.5   Inventory and Equipment...........................................................................      10
         4.6   Farm Products.....................................................................................      10
         4.7   Investment Property...............................................................................      10
         4.8   Receivables.......................................................................................      11
         4.9   Intellectual Property.............................................................................      11

SECTION 5.   COVENANTS...........................................................................................      11
         5.1   Covenants in Credit Agreement.....................................................................      11
         5.2   Delivery of Instruments, Certificated Securities and Chattel Paper................................      11
         5.3   Maintenance of Perfected Security Interest; Further Documentation.................................      12
         5.4   Changes in Locations, Name, etc...................................................................      12
         5.5   Notices...........................................................................................      12
         5.6   Investment Property...............................................................................      13
         5.7   Receivables.......................................................................................      14
         5.8   Intellectual Property.............................................................................      14

SECTION 6.   REMEDIAL PROVISIONS.................................................................................      15
         6.1   Certain Matters Relating to Receivables...........................................................      15
         6.2   Communications with Obligors; Grantors Remain Liable..............................................      16
         6.3   Pledged Stock.....................................................................................      16
         6.4   Proceeds to be Turned Over To Administrative Agent................................................      17
         6.5   Application of Proceeds...........................................................................      18
         6.6   Code and Other Remedies...........................................................................      18
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                                                                              ii

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         6.7   Registration Rights...............................................................................      19
         6.8   Deficiency........................................................................................      20

SECTION 7.   THE ADMINISTRATIVE AGENT............................................................................      20
         7.1   Administrative Agent's Appointment as Attorney-in-Fact, etc.......................................      20
         7.2   Duty of Administrative Agent......................................................................      22
         7.3   Execution of Financing Statements.................................................................      22
         7.4   Authority of Administrative Agent.................................................................      22

SECTION 8.   MISCELLANEOUS.......................................................................................      22
         8.1   Amendments in Writing.............................................................................      22
         8.2   Notices...........................................................................................      23
         8.3   No Waiver by Course of Conduct; Cumulative Remedies...............................................      23
         8.4   Enforcement Expenses; Indemnification.............................................................      23
         8.5   Successors and Assigns............................................................................      23
         8.6   Set-Off...........................................................................................      24
         8.7   Counterparts......................................................................................      24
         8.8   Severability......................................................................................      24
         8.9   Section Headings..................................................................................      24
         8.10   Integration......................................................................................      24
         8.11   GOVERNING LAW....................................................................................      25
         8.12   Submission To Jurisdiction; Waivers..............................................................      25
         8.13   Acknowledgements.................................................................................      25
         8.14   WAIVER OF JURY TRIAL.............................................................................      26
         8.15   Additional Grantors..............................................................................      26
         8.16   Releases.........................................................................................      26
         8.17   Effect of Amendment and Restatement of the Existing Guarantee and Collateral Agreement...........      26
</TABLE>

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SCHEDULES

Schedule 1         Notice Addresses
Schedule 2         Investment Property
Schedule 3         Perfection Matters
Schedule 4         Jurisdictions of Organization and Chief Executive Offices
Schedule 5         Inventory and Equipment Locations
Schedule 6         Intellectual Property
Schedule 7         Existing Prior Liens

ANNEXES

Annex 1            Assumption Agreement

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             AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT

                  AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated
as of February 13, 1998, as amended and restated as of December 10, 2003, and as
further amended and restated as of March 4, 2004, made by each of the
signatories hereto (together with any other entity that may become a party
hereto as provided herein, the "Grantors"), in favor of JPMORGAN CHASE BANK, as
collateral agent and administrative agent (in such capacity, the "Administrative
Agent") for the banks and other financial institutions (the "Lenders") from time
to time parties to the Credit Agreement, dated as of February 13, 1998, as
amended and restated as of December 10, 2003, and as further amended and
restated as of March 4, 2004 (as further amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among NBC Holdings Corp.
("SuperHoldings"), NBC Acquisition Corp. ("Holdings"), Nebraska Book Company,
Inc. (the "Borrower"), the Lenders, the Administrative Agent and the other
agents party thereto.

                              W I T N E S S E T H:

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

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

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

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

                  WHEREAS, the Borrower and certain of the other Grantors and
the Administrative Agent are parties to the Guarantee and Collateral Agreement,
dated as of February 13, 1998, as amended and restated as of December 10, 2003
(the "Existing Guarantee and Collateral Agreement"), and executed in connection
with the Existing Credit Agreement (as such term is defined in the Credit
Agreement); and

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

                  NOW, THEREFORE, in consideration of the premises and to induce
the Administrative Agent and certain of the other Secured Parties to enter into
the amendment and restatement of the Existing Credit Agreement and to induce the
Lenders to make their respective extensions of credit to the Borrower under the
Credit Agreement, each Grantor hereby agrees

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                                                                               2

with the Administrative Agent, for the ratable benefit of the Secured Parties,
that, upon the effectiveness of this Agreement, the Existing Guarantee and
Collateral Agreement is hereby amended and restated in its entirety as follows:

                            SECTION 1. DEFINED TERMS

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

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

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

                  "Borrower Obligations": the collective reference to (i) the
         unpaid principal of and interest on the Loans and Reimbursement
         Obligations, (ii) all other obligations and liabilities of the Borrower
         (including, without limitation, interest accruing at the then
         applicable rate provided in the Credit Agreement after the maturity of
         the Loans and Reimbursement Obligations and interest accruing at the
         then applicable rate provided in the Credit Agreement after the filing
         of any petition in bankruptcy, or the commencement of any insolvency,
         reorganization or like proceeding, relating to the Borrower, whether or
         not a claim for post-filing or post-petition interest is allowed in
         such proceeding) to the Administrative Agent or any Lender (or, in the
         case of any Hedge Agreement referred to below, any Affiliate of any
         Lender), whether direct or indirect, absolute or contingent, due or to
         become due, or now existing or hereafter incurred, which may arise
         under, out of, or in connection with, the Credit Agreement, this
         Agreement, the other Loan Documents, any Letter of Credit or any Hedge
         Agreement entered into by the Borrower with any Lender (or any
         Affiliate of any Lender) or any other document made, delivered or given
         in connection therewith and (iii) if agreed upon by the Borrower, the
         Administrative Agent and any applicable Lender, the obligations of the
         Borrower in respect of cash management services provided by such Lender
         (or any Affiliate of such Lender), in each case whether on account of
         principal, interest, reimbursement obligations, fees, indemnities,
         costs, expenses or otherwise (including, without limitation, all fees
         and disbursements of counsel to the Administrative Agent or to the
         Lenders that are required to be paid by the Borrower pursuant to the
         terms of any of the foregoing agreements).

                  "Collateral": as defined in Section 3.

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

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                                                                               3

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

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

                  "Guarantor Obligations": with respect to any Guarantor, the
         collective reference to (i) the Borrower Obligations, (ii) all
         obligations and liabilities of such Guarantor which may arise under or
         in connection with this Agreement or any other Loan Document to which
         such Guarantor is a party and (iii) if agreed upon by the applicable
         Guarantor, the Administrative Agent and any applicable Lender, the
         obligations of such Guarantor in respect of cash management services
         provided by such Lender (or any Affiliate of such Lender), in each case
         whether on account of guarantee obligations, reimbursement obligations,
         fees, indemnities, costs, expenses or otherwise (including, without
         limitation, all fees and disbursements of counsel to the Administrative
         Agent or to the Lenders that are required to be paid by such Guarantor
         pursuant to the terms of this Agreement or any other Loan Document).

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

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

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

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

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

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

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                                                                               4

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

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

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

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

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

                  "Pledged Stock": the shares of Capital Stock listed on
         Schedule 2, together with any other shares, stock certificates, options
         or rights of any nature whatsoever in respect of the Capital Stock of
         any Person that may be issued or granted to, or held by, any Grantor
         while this Agreement is in effect.

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

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

                  "Secured Parties": the collective reference to (i) the
         Administrative Agent, (ii) the Lenders (including, without limitation,
         any Issuing Lender and any Swing Line Lender), (iii) any other holder
         from time to time of any of the Obligations and (iv) the permitted
         successors and assigns of any of the foregoing.

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

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                                                                               5

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

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

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

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

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

                              SECTION 2. GUARANTEE

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

                  (b) Anything herein or in any other Loan Document to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Loan Documents shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating to
the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

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

                  (d) The guarantee contained in this Section 2 shall remain in
full force and effect until all the Borrower Obligations and the obligations of
each Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, no Letter of Credit shall

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                                                                               6

be outstanding and the Commitments shall be terminated, notwithstanding that
from time to time during the term of the Credit Agreement the Borrower may be
free from any Borrower Obligations.

                  (e) No payment made by the Borrower, any of the Guarantors,
any other guarantor or any other Person or received or collected by the
Administrative Agent or any other Secured Party from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from
time to time in reduction of or in payment of the Borrower Obligations shall be
deemed to modify, reduce, release or otherwise affect the liability of any
Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or any
payment received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid in
full, no Letter of Credit shall be outstanding and the Commitments are
terminated.

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

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

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

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                                                                               7

any Guarantor and without notice to or further assent by any Guarantor, any
demand for payment of any of the Borrower Obligations made by the Administrative
Agent or any other Secured Party may be rescinded by the Administrative Agent or
such other Secured Party and any of the Borrower Obligations continued, and the
Borrower Obligations, or the liability of any other Person upon or for any part
thereof, or any collateral security or guarantee therefor or right of offset
with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or
released by the Administrative Agent or any other Secured Party, and the Credit
Agreement and the other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the Required
Lenders or all Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held
by the Administrative Agent or any other Secured Party for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or released.
Neither the Administrative Agent nor any other Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

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

<PAGE>
                                                                               8

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

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

                  2.7 Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the office of the Administrative Agent located at 270
Park Avenue, New York, New York 10017.

                      SECTION 3. GRANT OF SECURITY INTEREST

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

                  (a) all Accounts;

                  (b) all Chattel Paper;

                  (c) all Deposit Accounts;

                  (d) all Documents;

                  (e) all Equipment;

                  (f) all General Intangibles;

                  (g) all Instruments;

                  (h) all Intellectual Property;

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                  (i) all Inventory;

                  (j) all Investment Property;

                  (k) all other property not otherwise described above;

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

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

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

                    SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Administrative Agent and certain of the other
Secured Parties to enter into the Credit Agreement and to induce the Lenders to
make their respective extensions of credit to the Borrower thereunder, each
Grantor hereby represents and warrants to the Administrative Agent and each
other Secured Party that:

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

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

<PAGE>
                                                                              10

Administrative Agent, for the ratable benefit of the Secured Parties, pursuant
to this Agreement or as are permitted by the Credit Agreement.

                  4.3 Perfected First Priority Liens. The security interests
granted pursuant to this Agreement upon completion of the filings and other
actions specified on Schedule 3 (which, in the case of all filings and other
documents referred to on said schedule, have been delivered to the
Administrative Agent in completed and, where applicable, duly executed form)
constitute valid perfected security interests in all of the Collateral
(excluding items 3(c) and 3(k)) in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, as collateral security for such
Grantor's Obligations, enforceable in accordance with the terms hereof against
all creditors of such Grantor and any Persons purporting to purchase any
Collateral from such Grantor and are prior to all other Liens on the Collateral
in existence on the date hereof except for (i) unrecorded Liens permitted by the
Credit Agreement which have priority over the Liens on the Collateral by
operation of law and (ii) Liens described on Schedule 7.

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

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

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

                  4.7 Investment Property. (a) The shares of Pledged Stock
pledged by such Grantor hereunder constitute all the issued and outstanding
shares of all classes of the Capital Stock of each Issuer owned by such Grantor.

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

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

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

<PAGE>
                                                                              11

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

                  (b) None of the obligors on any Receivables is a Governmental
Authority.

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

                  4.9 Intellectual Property. (a) Schedule 6 lists all
applications for registration and registered Intellectual Property owned by such
Grantor in its own name on the date hereof.

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

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

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

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

                              SECTION 5. COVENANTS

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

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

                  5.2 Delivery of Instruments, Certificated Securities and
Chattel Paper. If any amount payable under or in connection with any of the
Collateral shall be or become evidenced by any Instrument, Certificated Security
or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall
be immediately delivered to the Administrative Agent, duly indorsed in a

<PAGE>
                                                                              12

manner satisfactory to the Administrative Agent, to be held as Collateral
pursuant to this Agreement.

                  5.3 Maintenance of Perfected Security Interest; Further
Documentation. (a) Such Grantor shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority
described in Section 4.3 and shall defend such security interest against the
claims and demands of all Persons whomsoever.

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

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

                  5.4 Changes in Locations, Name, etc. Such Grantor will not,
except upon 15 days' prior written notice to the Administrative Agent and
delivery to the Administrative Agent of all additional financing statements and
other documents reasonably requested by the Administrative Agent, if any,
necessary to maintain the validity, perfection and priority of the security
interests provided for herein:

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

                  (ii) change its name.

                  5.5 Notices. Such Grantor will advise the Administrative Agent
and the other Secured Parties promptly, in reasonable detail, of:

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

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

<PAGE>
                                                                              13

                  5.6 Investment Property. (a) If such Grantor shall become
entitled to receive or shall receive any certificate (including, without
limitation, any certificate representing a dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Administrative Agent and the other Secured Parties,
hold the same in trust for the Administrative Agent and the other Secured
Parties and deliver the same forthwith to the Administrative Agent in the exact
form received, duly indorsed by such Grantor to the Administrative Agent, if
required, together with an undated stock power covering such certificate duly
executed in blank by such Grantor and with, if the Administrative Agent so
requests, signature guaranteed, to be held by the Administrative Agent, subject
to the terms hereof, as additional collateral security for the Obligations. Any
sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Administrative Agent to be
held by it hereunder as additional collateral security for the Obligations, and
in case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect to
the Investment Property pursuant to the recapitalization or reclassification of
the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Obligations. If any sums of money or property so paid or
distributed in respect of the Investment Property shall be received by such
Grantor, such Grantor shall, until such money or property is paid or delivered
to the Administrative Agent, hold such money or property in trust for the
Administrative Agent and the other Secured Parties, segregated from other funds
of such Grantor, as additional collateral security for the Obligations.

                  (b) Without the prior written consent of the Administrative
Agent (except pursuant to a transaction expressly permitted by the Credit
Agreement), such Grantor will not (i) vote to enable, or take any other action
to permit, any Issuer to issue any Capital Stock of any nature or to issue any
other securities convertible into or granting the right to purchase or exchange
for any Capital Stock of any nature of any Issuer, (ii) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, the
Investment Property or Proceeds thereof, (iii) create, incur or permit to exist
any Lien or option in favor of, or any claim of any Person with respect to, any
of the Investment Property or Proceeds thereof, or any interest therein, except
for the security interests created by this Agreement or (iv) enter into any
agreement or undertaking restricting the right or ability of such Grantor or the
Administrative Agent to sell, assign or transfer any of the Investment Property
or Proceeds thereof.

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

<PAGE>
                                                                              14

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

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

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

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

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

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

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

<PAGE>
                                                                              15

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

                  (g) Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

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

                         SECTION 6. REMEDIAL PROVISIONS

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

                  (b) The Administrative Agent hereby authorizes each Grantor to
collect such Grantor's Receivables, subject to the Administrative Agent's
direction and control, and the Administrative Agent may curtail or terminate
said authority at any time after the occurrence and during the continuance of an
Event of Default. If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
`event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent if required,
in a Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the

<PAGE>
                                                                              16

Administrative Agent for the account of the Secured Parties only as provided in
Section 6.5, and (ii) until so turned over, shall be held by such Grantor in
trust for the Administrative Agent and the other Secured Parties, segregated
from other funds of such Grantor. Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature and
source of the payments included in the deposit.

                  (c) At the Administrative Agent's request, each Grantor shall
deliver to the Administrative Agent all original and other documents evidencing,
and relating to, the agreements and transactions which gave rise to the
Receivables, including, without limitation, all original orders, invoices and
shipping receipts.

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

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

                  (c) Anything herein to the contrary notwithstanding, each
Grantor shall remain liable under each of the Receivables to observe and perform
all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Administrative Agent nor any other Secured Party shall have
any obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the
Administrative Agent or any other Secured Party of any payment relating thereto,
nor shall the Administrative Agent or any other Secured Party be obligated in
any manner to perform any of the obligations of any Grantor under or pursuant to
any Receivable (or any agreement giving rise thereto), to make any payment, to
make any inquiry as to the nature or the sufficiency of any payment received by
it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or to
collect the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times.

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

<PAGE>
                                                                              17

in any violation of any provision of the Credit Agreement, this Agreement or any
other Loan Document.

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

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

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

<PAGE>
                                                                              18

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

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

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

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

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

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

<PAGE>
                                                                              19

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

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

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

<PAGE>
                                                                              20

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

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

                       SECTION 7. THE ADMINISTRATIVE AGENT

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

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

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

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

<PAGE>
                                                                              21

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

                  (v) direct any party liable for any payment under any of the
         Collateral to make payment of any and all moneys due or to become due
         thereunder directly to the Administrative Agent or as the
         Administrative Agent shall direct; ask or demand for, collect, and
         receive payment of and receipt for, any and all moneys, claims and
         other amounts due or to become due at any time in respect of or arising
         out of any Collateral; sign and indorse any invoices, freight or
         express bills, bills of lading, storage or warehouse receipts, drafts
         against debtors, assignments, verifications, notices and other
         documents in connection with any of the Collateral; commence and
         prosecute any suits, actions or proceedings at law or in equity in any
         court of competent jurisdiction to collect the Collateral or any
         portion thereof and to enforce any other right in respect of any
         Collateral; defend any suit, action or proceeding brought against such
         Grantor with respect to any Collateral; settle, compromise or adjust
         any such suit, action or proceeding and, in connection therewith, give
         such discharges or releases as the Administrative Agent may deem
         appropriate; assign any Copyright, Patent or Trademark (along with the
         goodwill of the business to which any such Copyright, Patent or
         Trademark pertains), throughout the world for such term or terms, on
         such conditions, and in such manner, as the Administrative Agent shall
         in its sole discretion determine; and generally, sell, transfer, pledge
         and make any agreement with respect to or otherwise deal with any of
         the Collateral as fully and completely as though the Administrative
         Agent were the absolute owner thereof for all purposes, and do, at the
         Administrative Agent's option and such Grantor's expense, at any time,
         or from time to time, all acts and things which the Administrative
         Agent deems necessary to protect, preserve or realize upon the
         Collateral and the Administrative Agent's and the other Secured
         Parties' security interests therein and to effect the intent of this
         Agreement, all as fully and effectively as such Grantor might do.

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

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

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

                  (d) Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this

<PAGE>
                                                                              22

Agreement are coupled with an interest and are irrevocable until this Agreement
is terminated and the security interests created hereby are released.

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

                  7.3 Execution of Financing Statements. Pursuant to any
applicable law, each Grantor authorizes the Administrative Agent to file or
record financing statements and other filing or recording documents or
instruments with respect to the Collateral without the signature of such Grantor
in such form and in such offices as the Administrative Agent reasonably
determines appropriate to perfect the security interests of the Administrative
Agent under this Agreement. Each Grantor authorizes the Administrative Agent to
use the collateral description "all personal property" in any such financing
statements. Each Grantor hereby ratifies and authorizes the filing by the
Administrative Agent of any financing statement with respect to the Collateral
made prior to the date hereof.

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

                            SECTION 8. MISCELLANEOUS

                  8.1 Amendments in Writing. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except
in accordance with subsection 10.1 of the Credit Agreement.

<PAGE>
                                                                              23

                  8.2 Notices. All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in subsection 10.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

                  8.3 No Waiver by Course of Conduct; Cumulative Remedies.
Neither the Administrative Agent nor any other Secured Party shall by any act
(except by a written instrument pursuant to Section 8.1), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any Default or Event of Default. No failure to exercise,
nor any delay in exercising, on the part of the Administrative Agent or any
other Secured Party, any right, power or privilege hereunder shall operate as a
waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Administrative Agent or
any other Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Administrative
Agent or such other Secured Party would otherwise have on any future occasion.
The rights and remedies herein provided are cumulative, may be exercised singly
or concurrently and are not exclusive of any other rights or remedies provided
by law.

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

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

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

                  (d) The agreements in this Section 8.4 shall survive repayment
of the Obligations and all other amounts payable under the Credit Agreement and
the other Loan Documents.

                  8.5 Successors and Assigns. This Agreement shall be binding
upon the successors and assigns of each Grantor and shall inure to the benefit
of the Administrative Agent and the other Secured Parties and their successors
and assigns; provided that no Grantor may

<PAGE>
                                                                              24

assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Administrative Agent.

                  8.6 Set-Off. Each Grantor hereby irrevocably authorizes the
Administrative Agent and each other Secured Party at any time and from time to
time while an Event of Default shall have occurred and be continuing, without
notice to such Grantor or any other Grantor, any such notice being expressly
waived by each Grantor, to set-off and appropriate and apply any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Administrative Agent or such other
Secured Party to or for the credit or the account of such Grantor, or any part
thereof in such amounts as the Administrative Agent or such other Secured Party
may elect, against and on account of the obligations and liabilities of such
Grantor to the Administrative Agent or such other Secured Party hereunder and
claims of every nature and description of the Administrative Agent or such other
Secured Party against such Grantor, in any currency, whether arising hereunder,
under the Credit Agreement, any other Loan Document or otherwise, as the
Administrative Agent or such other Secured Party may elect, whether or not the
Administrative Agent or any other Secured Party has made any demand for payment
and although such obligations, liabilities and claims may be contingent or
unmatured. The Administrative Agent and each other Secured Party shall notify
such Grantor promptly of any such set-off and the application made by the
Administrative Agent or such other Secured Party of the proceeds thereof,
provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of the Administrative Agent and each
other Secured Party under this Section 8.6 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the
Administrative Agent or such other Secured Party may have.

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

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

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

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

<PAGE>
                                                                              25

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

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

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

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

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

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

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

                  8.13 Acknowledgements. Each Grantor hereby acknowledges that:

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

                  (b) neither the Administrative Agent nor any other Secured
         Party has any fiduciary relationship with or duty to any Grantor
         arising out of or in connection with this Agreement or any of the other
         Loan Documents, and the relationship between the Grantors, on the one
         hand, and the Administrative Agent and other Secured Parties, on the
         other hand, in connection herewith or therewith is solely that of
         debtor and creditor; and

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

<PAGE>
                                                                              26

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

                  8.15 Additional Grantors. Each Subsidiary of the Borrower,
Holdings and SuperHoldings that is required to become a party to this Agreement
pursuant to subsection 6.10(c) of the Credit Agreement shall become a Grantor
for all purposes of this Agreement upon execution and delivery by such
Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

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

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

                  8.17 Effect of Amendment and Restatement of the Existing
Guarantee and Collateral Agreement.

This Agreement shall be deemed to be an amendment to and restatement of the
Existing Guarantee and Collateral Agreement and the Existing Guarantee and
Collateral Agreement as amended and restated hereby shall remain in full force
and effect and is hereby ratified and confirmed in all respects. All references
to the Existing Guarantee and Collateral Agreement in any other agreement or
document shall, on and after the Closing Date, be deemed to refer to the
Existing Guarantee and Collateral Agreement as amended and restated hereby. Each
Grantor agrees, acknowledges and affirms that:

<PAGE>
                                                                              27

                  (i) each of this Agreement and the other Security Documents to
         which it is a party shall remain in full force and effect and shall
         constitute security for all extensions of credit pursuant to the
         Existing Credit Agreement as amended and restated by the Credit
         Agreement;

                  (ii) all of its obligations, liabilities and indebtedness
         under this Agreement and the other Security Documents to which it is a
         party remain in full force and effect on a continuous basis, unpaid,
         unimpaired, uninterrupted and undischarged, after giving effect to the
         amendment and restatement of the Existing Credit Agreement pursuant to
         the Credit Agreement and the amendment and restatement of the Existing
         Guarantee and Collateral Agreement pursuant to this Agreement;

                  (iii) all of the Liens and security interests created and
         arising under this Agreement and the other Security Documents to which
         it is a party remain in full force and effect on a continuous basis,
         unpaid, unimpaired, uninterrupted and undischarged, and having the same
         perfected status and priority, after giving effect to the amendment and
         restatement of the Existing Credit Agreement pursuant to the Credit
         Agreement and the amendment and restatement of the Existing Guarantee
         and Collateral Agreement pursuant to this Agreement, as collateral
         security for the Obligations; and

                  (iv) any reference to the Existing Guarantee and Collateral
         Agreement appearing in any Loan Document shall on and after the Closing
         Date be deemed to refer to the Existing Guarantee and Collateral
         Agreement as amended and restated hereby.

<PAGE>

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

                                     NBC HOLDINGS CORP.

                                     By: /s/ MARK L. BONO
                                         ---------------------------------------
                                         Name: MARK L. BONO
                                         Title: PRESIDENT, SECRETARY & TREASURER

                                     NBC ACQUISITION CORP.

                                     By: /s/ ALAN G. SIEMEK
                                         ---------------------------------------
                                         Name: ALAN G. SIEMEK
                                         Title: TREASURER

                                     NEBRASKA BOOK COMPANY, INC.

                                     By: /s/ ALAN G. SIEMEK
                                         ---------------------------------------
                                         Name: ALAN G. SIEMEK
                                         Title: CHIEF FINANCIAL OFFICER,
                                                TREASURER & ASSISTANT SECRETARY

                                     SPECIALTY BOOKS, INC.

                                     By: /s/ ALAN G. SIEMEK
                                         ---------------------------------------
                                         Name: ALAN G. SIEMEK
                                         Title: TREASURER

                                     JPMORGAN CHASE BANK,
                                     as Administrative Agent

                                     By: /s/ NEIL R. BOYLAN
                                         ---------------------------------------
                                         Name: NEIL R. BOYLAN
                                         Title: MANAGING DIRECTOR
<PAGE>

                                                                      Schedule 1

                         NOTICE ADDRESSES OF GUARANTORS

SuperHoldings:             NBC Holdings Corp.
                           c/o Weston Presidio Capital
                           200 Clarendon Street, John Hancock
                           Tower, 50th Fl
                           Boston, MA 02116
                           Attention: Mark L. Bono
                           Fax: 617- 988-2515

Holdings:                  NBC Acquisition Corp.
                           4700 South 19th Street
                           Lincoln, Nebraska 68501
                           Attention: Chief Financial Officer
                           Fax: 402-421-0507

Specialty Books, Inc.:     Specialty Books, Inc.
                           4700 South 19th Street
                           Lincoln, Nebraska 68501
                           Attention: Chief Financial Officer
                           Fax: 402-421-0507

<PAGE>

                                                                      Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

PLEDGED STOCK:

<TABLE>
<CAPTION>
                                               Class of                                   No. of
            Issuer                              Stock         Stock Certificate No.       Shares
<S>                                            <C>            <C>                        <C>
Nebraska Book Company, Inc.                    Common                  1                       100

Specialty Books, Inc.                          Common                  1                       100

NBC Acquisition Corp.                          Common                209                 512799.23
</TABLE>

PLEDGED NOTES:

         Issuer            Payee               Principal Amount

None.

                                        2

<PAGE>

                                                                      Schedule 3

                       FILINGS AND OTHER ACTIONS REQUIRED
                          TO PERFECT SECURITY INTERESTS

                         Uniform Commercial Code Filings

<TABLE>
<CAPTION>
      Grantor                        State                                   Jurisdiction
      -------                        -----                                   ------------
<S>                                  <C>                                  <C>
Holdings                              DE                                  Secretary of State

Borrower                              KS                                  Secretary of State

Specialty Books, Inc.                 DE                                  Secretary of State

SuperHoldings                         DE                                  Secretary of State
</TABLE>

                     Patent, Trademark and Copyright Filings

U.S. Patent and Trademark Office filing in respect of the following trademarks:
TRADITIONS, GIVE US THE FINGER and GIVE US A CLICK as set forth on Schedule 6.
Filings with the U.S. Patent and Trademark Office have been previously made by
Administrative Agent in respect of each other trademark listed on Schedule 6.

Filings with the Copyright Office of the United States Library of Congress have
been previously made by Administrative Agent in respect of each of the
copyrights listed on Schedule 6.

                     Actions with respect to Pledged; Stock

Certificates representing shares of Pledged Stock of the Borrower and Specialty
Books, Inc. have previously been delivered to Administrative Agent with undated
stock powers executed in blank attached thereto. Administrative Agent to
maintain possession of the certificates representing the Pledged Stock in the
State of New York. A certificate representing shares of Pledged Stock of
Holdings shall be delivered to Administrative Agent at closing together with an
undated stock power executed in blank attached thereto.

                                  Other Actions

File continuation statements as required by Article 9 of the New York UCC.

                                        3

<PAGE>

                                                                      Schedule 4

                    LOCATION OF JURISDICTION OF ORGANIZATION
                           AND CHIEF EXECUTIVE OFFICE

<TABLE>
<CAPTION>
Grantor's Name and                         Location of Chief         Organizational ID
Jurisdiction of Organization               Executive Office          Number
----------------------------               ----------------          -----------------
<S>                                        <C>                       <C>
NBC Acquisition Corp., a Delaware          Lincoln, Nebraska              2512222
corporation

Nebraska Book Co., Inc., a Kansas          Lincoln, Nebraska              0326793
corporation

Specialty Books, Inc., a Delaware          Lincoln, Nebraska              3512386
corporation

NBC Holdings Corp., a Delaware             Lincoln, Nebraska              3757739
corporation
</TABLE>

                                        4

<PAGE>

                                                                      Schedule 5

                       LOCATION OF INVENTORY AND EQUIPMENT

NBC Acquisition Corp.:  None.

Nebraska Book Company, Inc. has collateral at the following locations:

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
080                     Nebraska Book Company, Inc.
                        4700 So. 19th Street
                        Lincoln, NE  68512

080-2                   Nebraska Book Company, Inc.,
                        5240 So. 19th Street
                        Lincoln, NE  68512

080-3                   Nebraska Book Company, Inc.
                        5001 So. 19th Street
                        Lincoln, NE  68512

080-4                   South Carolina Book Co.
                        523 Jasper St.
                        West Columbia, SC  29169

081                     College Book Company
                        6590 Darin Way
                        Cypress, CA  90630

101                     Lemox Book Co.
                        1240 Center St.
                        Bowling Green, KY  42101-3427

101-2                   Hilltopper College Book Depot
                        111 Old Morgantown Rd.
                        Bowling Green, KY  42101

102                     The Book Stop
                        931 16th St.
                        Greeley, CO  80631-5511

103                     the College Store
                        320 36th Street
                        Bellingham, WA  98225
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
104                     Boomer Book Company
                        1337 W. Lindsey
                        Norman, OK 73069

104-2                   Sooner Textbooks
                        1305 South Jenkins
                        Norman, OK 73072-6502

105                     Rocky Top Books
                        2116 W. Cumberland Ave.
                        Knoxville, TN  37516

105-2                   Rocky Top East
                        1649 West Cumberland Ave.
                        Knoxville, TN  37916

106                     Ned's Bookstore
                        135 East Grand River Ave.
                        East Lansing, MI  48823

106-2                   Ned's Bookstore
                        125-133 East Grand River Ave.
                        East Lansing, MI 48823

107                     Ned's Bookstore
                        707 W. Cross St.
                        Ypsilanti, MI 48197

107-2                   Ned's COB Bookstore
                        4 North Adams
                        Ypsilanti, MI  48197

107-3                   Ned's Warehouse
                        306 W. Cross St.
                        Ypsilanti, MI  48197

107-4                   Concordia College Bookstore
                        4090 Geddes Road
                        Ann Arbor, MI  48105
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
109                     Wayne County College Bookstore
                        9555 Haggerty Road
                        Belleville, MI  48111

109-1                   Wayne County College Bookstore
                        21000 Northline
                        Taylor, MI  48180

109-2                   Wayne County College Bookstore
                        1001 West Fort St.
                        Detroit, MI  48226

109-3                   Wayne County College Bookstore
                        5901 Connor
                        Detroit, MI  48213

109-4                   Wayne County College Bookstore
                        8551 Greenfield
                        Detroit, MI  48228

110                     Ned's Berkeley Bookstore
                        2480 Bancroft Way
                        Berkeley, CA  94704

110-2                   Ned's Berkeley Bookstore
                        2470 Bancroft Way
                        Berkeley, CA  94704

110-3                   Ned's Berkeley Warehouse
                        2035 Blake St.
                        Berkeley, CA  94704

110-4                   Ned's Berkeley Book Store - Boalt Hall
                        University of California Berkeley School of Law
                        Berkeley, CA  94720

112                     College Book Rack
                        1456 W. International Speedway Blvd.
                        Daytona Beach, FL  32114
</TABLE>

                                       7
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
114                     Lemox College Book & Supply
                        10872 SW 104th St.
                        Miami, FL  33176

116                     the College Store
                        824 W. Walnut St.
                        Johnson City, TN  37604

117                     College Book Warehouse
                        1819 S. Brook St.
                        Louisville, KY  40208

118                     the College Store
                        12002 College Blvd.
                        Overland Park, KS  66210

119                     University Book Shop
                        1116 West 23rd Street
                        Lawrence, KS  66046

120                     South Carolina Book Store
                        801 Main St.
                        Columbia, SC  29202

120-2                   Carolina Spirit Shop
                        633 Main St.
                        Columbia, SC  29201

121                     University Books of Charleston
                        360 King St.
                        Charleston, SC  29401

123                     The Antelope Bookstore
                        1015 West 27th Street
                        Kearney, NE  68849-5320

124                     University Book & Supply
                        1090 Lancaster Road
                        Richmond, KY  40475
</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
125                     Saluki Bookstores
                        701 E. Grand
                        Carbondale, IL  62901

125-2                   Saluki Bookstore
                        509 S. Illinois
                        Carbondale, IL  62901

126                     Eagle Pride Bookstore
                        1110 Shelton St.
                        Chadron, NE  69337

127                     Big Red Shop
                        Westfield Shopping Center
                        Lincoln, NE  68505

130                     Prairie Wolves Bookstore
                        Nebraska Wesleyan Univ.
                        Lincoln, NE  68504

131                     Rebelbooks
                        4702 S. Maryland Parkway
                        Las Vegas, NV  89119

132                     Wayne State College Bookstore
                        1111 Main Street
                        Wayne, NE  68787

133                     GotUsed Bookstore
                        3601 Forbes Ave.
                        Pittsburgh, PA  15213

134                     the College Store
                        744 Locust Ave.
                        Indiana, PA  15701-2987

135                     Nebraska Bookstore
                        1300 "Q" Street
                        Lincoln, NE 68508
</TABLE>

                                       9
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
136                     the College Store
                        1015 S. Rural Road
                        Tempe, AZ 85281

137                     the College Store
                        600 Riordan Rd.
                        Flagstaff, AZ 86001

137-2                   University Text & Tools
                        1405 So. Plaza Way
                        Flagstaff, AZ 86001

138                     University Book Centre
                        206 East College Ave.
                        State College, PA 16801

139                     Arizona Book Store
                        815 North Park Avenue
                        Tucson, AZ 85719

139-2                   Rother's Bookstore
                        501 North Park Ave, Unit 110
                        Tucson, AZ  85719

140                     Tech Bookstore
                        118 South Main
                        Blacksburg, VA  24060

141                     Collegiate Book Exchange
                        504 N. McKinley Avenue
                        Muncie, IN 47303

142                     The College Store
                        282 E. Exchange St.
                        Akron, OH 44308

143                     the College Store
                        2812 Colonel Glenn Highway
                        Fairborn, OH 45324
</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
144                     College Town
                        1770-1778 North High St.
                        Columbus, OH 43201

146                     Georgia Bookstore
                        124 Edgewood Ave., NE
                        Atlanta, GA 30303-3015

147                     the College Store
                        807 Paul W. Bryant Dr.
                        Tuscaloosa, AL  35401-1215

148                     University Book Center
                        1109 Union Street
                        Valparaiso, IN  46383-6493

149                     Specialty Books
                        5 North Court St.
                        Athens, OH 45701

150                     the College Store
                        4790 S. Hagadom Rd., Ste. 138
                        East Lansing, MI  48823

151                     Ulrich's Bookstore
                        549 East University Avenue
                        Ann Arbor, MI  48107

152                     Textbook Outlet
                        2604 N. Squirrel Road
                        Auburn Hills, MI  48326

153                     Michigan Book & Supply
                        317 South State St.
                        Ann Arbor, MI  48104

154                     Campus Book & Supply
                        1078 Huron River Road
                        Ypsilanti, MI  48197
</TABLE>

                                       11
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
156                     The Campus Store
                        1700 W. Third Ave.
                        Flint, MI 48504

157                     Dominion Bookstore
                        1074 W. 47th St.
                        Norfolk, VA  23508-1910

159                     the College Store
                        60 Maple Road
                        Amherst, NY  14221

161                     L & M Bookstore
                        1716 N. Main Ave.
                        San Antonio, TX  78212-3938

162                     L & M UTSA Bookstore
                        15503 Babock Rd.
                        San Antonio, TX  78255-1160

163                     Campus Bookstore
                        3006 S. University Ave., #112
                        Little Rock, AR  72204

164                     Cowboy Book
                        520 West Elm
                        Stillwater, OK  74074-3013

165                     Voertman's
                        1314 W. Hickory
                        Denton, TX  76201

166                     Colloquim Books
                        320 University Drive
                        San Marcos, TX  78666

                        Colloquim Too!
                        700 N. LBJ
                        San Marcos, TX  78666
</TABLE>

                                       12
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
167                     South Texas Book & Supply
                        1516 W. University Dr.
                        Edinburg, TX  78539

                        South Texas Book & Supply, Too!
                        2601 W. Pecan
                        McAllen, TX  78501

168                     Double T Bookstore
                        3204 4th St.
                        Lubbock, TX  79415

                        Double T Bookstore II
                        414019th St.
                        Lubbock, TX  79415

                        Double T Bookstore III
                        1103 University Ave.
                        Lubbock, TX  79401

169                     Prince George's Community College Bookstore
                        301 Largo Road
                        Largo, MD  20774-2199

170                     Maryland Book Exchange
                        4500 College Avenue
                        College Park, MD  20740

171                     University Book Store
                        3003 Forest Avenue
                        Des Moines, IA  50311

171-2                   D-Shoppe
                        Olmstead Center Bldg.
                        Des Moines, IA  50311

172                     The Bookbridge
                        3951 Vestal Parkway East
                        Vestal, NY  13850
</TABLE>

                                       13
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
173                     Maverick Bookstore
                        230 Stadium Road
                        Mankato, MN  56001

175                     College Bookstore
                        2370 W. W. Thorne Dr.
                        Houston, TX  77073

175-2                   College Bookstore
                        20127 Aldine Westfield Road
                        Humble, TX  77338

176                     the College Store
                        620 W. Park Row
                        Arlington, TX  76010

177                     Varsity Book Store
                        6413 Hillcrest Ave.
                        Dallas, TX  75202

178                     Spirit Shop
                        2424 Broadway
                        Lubbock, TX  79401

191                     East Tenn State University Bookstore
                        J.L. Seehorn Jr., Drive
                        Johnson City, TN  37604

192                     Western Int'l University Bookstore
                        Main Campus
                        9215 N. Black Canyon Highway
                        Phoenix, AZ  85021

193                     The Textbook Company
                        1840 W. Southern Ave. #1
                        Mesa, AZ  85202

194                     Spartan Bookstore
                        Michigan State University
                        International Center
                        East Lansing, MI  48824-1035
</TABLE>

                                       14
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
195                     Stadium Bookstore
                        1949 Fifth Avenue
                        Huntington, WV  25703

196                     Packbackers Student Bookstore
                        2900 Hillsborough
                        Raleigh, NC  27607

198                     Radford Book Exchange
                        214 Tyler Ave.
                        Radford, VA  24141

199                     College Book & Supply
                        12140 Collegiate Way, Ste. 140
                        Orlando, FL  32817

199-2                   Knight's Corner
                        12209 University Blvd.
                        Orlando, FL  32817

200                     Florida Book Store
                        1614 W. University Ave.
                        Gainesville, FL  32603

200-2                   Florida Book Store Volume II
                        2010 SW 34th St.
                        Gainesville, FL  32607

201                     Rother's Bookstore (Northgate)
                        303 College Ave.
                        College Station, TX  77840

201-1                   Rother's Bookstore (Geo Bush)
                        340 George Bush Drive
                        College Station, TX  77840

201-2                   Rother's Bookstore (Woodstone)
                        907C Harvey Road
                        College Station, TX  77840
</TABLE>

                                       15
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
202                     Bevo's Bookstore
                        11900 Metric Blvd., Suite B
                        Austin, TX  78758

206                     Rother's Bookstore
                        425 North LBJ
                        San Marcos, TX  78666

207                     Rother's Bookstore
                        3503 Elgin
                        Houston, TX  77004

208                     Bevo's ACC Bookstore
                        1202 West Ave.
                        Austin, TX  78701

214                     Rother's Bookstore
                        525 Dutton Ave.
                        Waco, TX  76706

214-2                   University Bookstore & Sprit Shop
                        1205 So. 8th Street
                        Waco, TX 76706

215                     Rother's Bookstore
                        2008 E. 29th St.
                        Bryan, TX 77802

216                     Varsity Book Store
                        315 East College Street
                        Nacogdoches, TX  75963

217                     Rother's Bookstore
                        1603 W. Washington
                        Stephenville, TX  76401

218                     Rother's Bookstore
                        2301 Midwestern Parkway, Suite 106
                        Wichita Falls, TX  76308
</TABLE>

                                       16
<PAGE>

<TABLE>
<CAPTION>
LOCATION                ENTITY NAME /
NUMBER                  LOCATION ADDRESS
---------               ------------------------
<S>                     <C>
376                     NBC Graphics
                        360 Graham Road
                        College Station, TX  77845

677                     College Store Design
                        3701 Union Drive, Ste 100
                        Lincoln, NE  68516

690                     TheCampusHub.com
                        3701 Union Drive, Ste 100
                        Lincoln, NE  68516

684                     Connect2One
                        5412 Courseview Dr., Ste. 250
                        Mason, OH  45040-2364
</TABLE>

Specialty Books, Inc. has collateral at the following locations:

682-2                   Specialty Books, Inc.
                        6000 Poston Road
                        Athens, OH 45701

                                       17
<PAGE>

                                                                      Schedule 6

                              INTELLECTUAL PROPERTY

TRADEMARKS

<TABLE>
<CAPTION>
      Trademark           Serial No.   Registration No.          Jurisdiction              Owned by
      ---------           ----------   ----------------          ------------              --------
<S>                       <C>          <C>                       <C>                 <C>
GOT USED                  76/294619        2633247               U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

CONNECT2ONE               76/119855        2480012               U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

WEBPRISM                  75/925323        N/A                   U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

NBCPRISM                  75/925321        2568157               U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

NBC GRAPHICS COLLEGIATE   75/820627        2530469               U.S. Federal        Nebraska Book Company,
WEAR "NO BETTER CHOICE"                                                              Inc.
and Design

NBC and Design            73/457327        1312759               U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

CAMPUSHUB                 75/925306        N/A                   U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

SPECIALTY BOOKS           75/204128        2222166               U.S. Federal        Specialty Books, Inc

TRADITIONS                78/344625        N/A                   U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

GIVE US THE FINGER        76/082301        N/A                   U.S. Federal        Nebraska Book Company,
                                                                                     Inc.

GIVE US A CLICK           76/082507        2759396               U.S. Federal        Nebraska Book Company,
                                                                                     Inc.
</TABLE>

                                       18
<PAGE>

COPYRIGHTS

<TABLE>
<CAPTION>
              Title              Registration No.            Jurisdiction                  Owned By
              -----              ----------------            ------------                  --------
<S>                              <C>                         <C>                   <C>
Nebraska Book Company's buyer's    TX757441                  U.S. Federal          Nebraska BookCompany,
guide                                                                              Inc.

Textbook buyers guide              TX653450                  U.S. Federal          Nebraska Book Company,
                                                                                   Inc.
</TABLE>

                                       19

<PAGE>

                                                                      Schedule 7

                               EXISTING LIENS (1)

1.       General Electric Capital Corporation has a lien on the described
         equipment and all additions and replacement thereto. (2)

2.       BCL Capital has a lien on the listed equipment. (3)

3.       West Group has a lien on certain inventory sold on consignment. (4)

4.       NBD Equipment Finance, Inc. has a lien on listed equipment. (5)

5.       Toyota Motor Credit Corp. has a lien on a forklift. (6)

6.       Mitel Capital Corporation has a lien on stated hardware and related
         software and accessories. (7)

7.       Bane One Leasing Corporation has a lien on listed equipment. (8)

8.       US Bancorp has a lien on listed equipment. (9)

9.       IKON Office Solutions has a lien on listed equipment. (10)

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

(1) Certain liens in favor of JP Morgan Chase Bank and Chemical Bank, which have
been previously disclosed to Administrative Agent's counsel, remain filed in
their respective filing jurisdictions.

(2) Filed with the Nebraska Secretary of State. Filing states that financing
statement is filed for notice purposes only.

(3) Filed with Nebraska Secretary of State. Filing states that financing
statement is for informational purposes only.

(4) Filed with Nebraska Secretary of State.

(5) Filed with Nebraska Secretary of State. Filing states "No Security Interest
- True Lease Transaction - Precautionary Only".

(6) Filed with Nebraska Secretary of State. Filing states "This financing
statement is for information purposes only. The transaction referenced in this
financing statement is a lease."

(7) Filed with Nebraska Secretary of State.

(8) Filed with Nebraska Secretary of State.

(9) Filed with Nebraska Secretary of State. Filing states that "filing is for
informational purposes only".

(10) Filed with Texas Secretary of State.

                                       20
<PAGE>

10.      ISI Commercial Refrigeration, L.P. has a lien on listed equipment. (11)

11.      The following parcel of real property is subject to a mortgage held by
         JeffersonPilot Life Insurance Company, with its administrative offices
         located in Greensboro, NC: Campus Bookstore

                  1649 W. Cumberland Avenue
                  Knoxville, TN

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

(11) Filed with Texas Secretary of State.

                                       21
<PAGE>

                         ACKNOWLEDGEMENT AND CONSENT(1)

         The undersigned hereby acknowledges receipt of a copy of the Guarantee
and Collateral Agreement, dated as of February 13, 1998, as amended and restated
as of December 10, 2003, and as further amended and restated as of March 4, 2004
(the "Agreement"), made by the Grantors parties thereto for the benefit of
JPMORGAN CHASE BANK, as Administrative Agent. The undersigned agrees for the
benefit of the Administrative Agent and the other Secured Parties as follows:

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

         2. The undersigned will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.6(a) of
the Agreement.

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

                                        [NAME OF ISSUER]

                                        By:_____________________________________
                                           Title:

                                        Address for Notices:

                                        Attention:
                                        Fax:

SECTION 1. ________________________________

(1)      This consent is necessary only with respect to any Issuer which is not
also a Grantor. This consent may be modified or eliminated with respect to any
Issuer that is not controlled by a Grantor. If a consent is required, its
execution and delivery should be included among the conditions to the initial
borrowing specified in the Credit Agreement.

<PAGE>

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

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

                                   WITNESSETH:

         WHEREAS, NBC Holdings Corp. ("SuperHoldings"). NBC Acquisition Corp.
("Holdings"), Nebraska Book Company, Inc. (the "Borrower"), the Lenders and the
Administrative Agent have entered into a Credit Agreement, dated as of February
13, 1998, as amended and restated as of December 10, 2003, and as further
amended and restated as of March 4, 2004 (as further amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"):

         WHEREAS, in connection with the Credit Agreement, SuperHoldings,
Holdings, the Borrower and certain of their Affiliates (other than the
Additional Grantor) have entered into the Amended and Restated Guarantee and
Collateral Agreement, dated as of February 13, 1998, as amended and restated as
of December 10, 2003, and as further amended and restated as of March 4, 2004
(as further amended, supplemented or otherwise modified from time to time, the
"Guarantee and Collateral Agreement") in favor of the Administrative Agent for
the benefit of the Secured Parties;

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

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

         NOW, THEREFORE, IT IS AGREED:

         1. Guarantee and Collateral Agreement. By executing and delivering this
Assumption Agreement, the Additional Grantor, as provided in Section 8.15 of the
Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Grantor thereunder with the same force and effect as
if originally named therein as a Grantor and, without limiting the generality of
the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby
added to the information set forth in Schedules______________________(1) to the
Guarantee and Collateral Agreement. The Additional Grantor hereby represents and
warrants that each of the representations and warranties contained in Section 4
of the Guarantee and Collateral Agreement

SECTION 1. ___________________________

(1)      Refer to each Schedule which needs to be supplemented.

<PAGE>

                                                                              38

is true and correct on and as the date hereof (after giving effect to this
Assumption Agreement) as if made on and as of such date.

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

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

                                       [ADDITIONAL GRANTOR]

                                       By:______________________________________
                                          Name:
                                          Title:<PAGE>

                                                                   EXHIBIT 10.13

                                                                  EXECUTION COPY

                          NEBRASKA BOOK COMPANY, INC.

                                  $175,000,000

                   8-5/8% Senior Subordinated Notes due 2012

                               Purchase Agreement

                                                               February 27, 2004

J.P. Morgan Securities Inc.
  As Representative of the
  several Initial Purchasers listed
  in Schedule 1 hereto
c/o J.P. Morgan Securities Inc.
270 Park Avenue
New York, New York 10017

Ladies and Gentlemen:

         Nebraska Book Company, Inc., a Kansas corporation (the "Company"),
proposes to issue and sell to the several Initial Purchasers listed in Schedule
1 hereto (the "Initial Purchasers"), for whom you are acting as representative
(the "Representative"), $175,000,000 principal amount of its 8-5/8% Senior
Subordinated Notes due 2012 (the "Securities"). The Securities will be issued
pursuant to an Indenture to be dated as of March 4, 2004 (the "Indenture") among
the Company, Specialty Books, Inc. (the "Guarantor") and BNY Midwest Trust
Company, as trustee (the "Trustee"), and will be guaranteed on an unsecured
senior subordinated basis by the Guarantor (the "Guarantee").

         The Securities will be sold to the Initial Purchasers without being
registered under the Securities Act of 1933, as amended (the "Securities Act"),
in reliance upon an exemption therefrom. The Company has prepared a preliminary
offering memorandum dated February 19, 2004 (the "Preliminary Offering
Memorandum") and will prepare an offering memorandum dated the date hereof (the
"Offering Memorandum") setting forth information concerning the Company and the
Securities. Copies of the Preliminary Offering Memorandum have been, and copies
of the Offering Memorandum will be, delivered by the Company to the Initial
Purchasers pursuant to the terms of this Agreement. The Company hereby confirms
that it has authorized the use of the Preliminary Offering Memorandum and the
Offering Memorandum in connection with the offering and resale of the Securities
by the Initial Purchasers in the manner contemplated by this Agreement.
Capitalized terms used but not defined herein shall have the meanings given to
such terms in the Offering Memorandum. References herein to the Preliminary
Offering Memorandum and the Offering Memorandum shall be deemed to refer to and
include any document incorporated by reference therein.

<PAGE>

         Holders of the Securities (including the Initial Purchasers and their
direct and indirect transferees) will be entitled to the benefits of a
Registration Rights Agreement, to be dated the Closing Date (as defined below)
and substantially in the form attached hereto as Exhibit A (the "Registration
Rights Agreement"), pursuant to which the Company and the Guarantor will agree
to file one or more registration statements with the Securities and Exchange
Commission (the "Commission") providing for the registration under the
Securities Act of the Securities or the Exchange Securities referred to (and as
defined) in the Registration Rights Agreement.

         Concurrently with the consummation of the offering of the Securities,
the Company, NBC Acquisition Corp. ("Holdings") and the Guarantor will enter
into a recapitalization transaction pursuant to which (i) Weston Presidio
Capital and its affiliates (the "WPC Funds") will make an equity investment of
approximately $27.5 million in NBC Holdings Corp. a ("New Holdings"), (ii) WPC
Funds will contribute approximately 510,687 shares of Holdings to New Holdings,
(iii) WPC Funds will purchase approximately 38,179 shares of common stock of
Holdings from its holders, (iv) a merger will occur, as a result of which the
outstanding shares of Holdings will convert into the right to receive a portion
of the approximately $289.6 million in merger consideration, and the shares of a
newly formed subsidiary will be converted into a like number of shares of the
common stock of Holdings, (v) the Company will repurchase or call for redemption
its $110,000,000 aggregate principal amount of 8-3/4% Senior Subordinated Notes
due 2008 (the "Old Notes") and will issue the Securities, (vi) Holdings will
repurchase or call for redemption its $76,000,000 aggregate principal amount of
10-3/4% Senior Discount Debentures due 2009 (the "Old Debentures") and will
issue $77,000,000 principal amount at maturity of new 11% Senior Discount Notes
due 2013 (the "Debentures") and (vii) all indebtedness of the Company under the
Amended and Restated Credit Agreement, dated as of February 13, 1998, as amended
and restated as of December 10, 2003 (the "Existing Credit Agreement"), among
the Company, Holdings, the several banks and other financial institutions or
entities from time to time parties thereto, the eligible subsidiaries referred
to therein, JPMorgan Chase Bank, as administrative agent, documentation agent
and collateral agent, and Citigroup Global Markets Inc., as syndication agent,
will be refinanced and the Company, the Guarantor and New Holdings will enter
into a new revolving credit facility in the amount of $50.0 million and a new
term loan facility in the amount of $180.0 million pursuant to a credit
agreement (the "Credit Agreement"), among the Company, the Guarantor and New
Holdings, JPMorgan Chase Bank and Citicorp North America, Inc., as Arrangers,
Citigroup Global Markets, Inc., as Syndication Agent, JPMorgan Chase Bank, as
Administrative Agent, Fleet National Bank as Documentation Agent and the other
lenders party thereto, (the "Credit Facility") (the foregoing, collectively
referred to herein as the "Transactions"). The proceeds from the sale of the
Securities and the Debentures, together with the borrowings under the Credit
Facility, will be used (i) to repay outstanding indebtedness of the Company
under its Existing Credit Agreement, (ii) to purchase the Old Notes and Old
Debentures and (iii) to pay other related fees and expenses.

         The Company hereby confirms its agreement with the several Initial
Purchasers concerning the purchase and resale of the Securities, as follows:

         1.       Purchase and Resale of the Securities. (a) Subject to the
Transactions occurring prior to or concurrently with the closing of the offering
of the Securities, the Company agrees to issue and sell the Securities to the
several Initial Purchasers as provided in this Agreement, and each Initial
Purchaser, on the basis of the representations, warranties and agreements set
forth

                                       2
<PAGE>

herein and subject to the conditions set forth herein, agrees, severally and not
jointly, to purchase from the Company the respective principal amount of
Securities set forth opposite such Initial Purchaser's name in Schedule 1 hereto
at a price equal to 97.50% of the principal amount thereof plus accrued
interest, if any, from March 4, 2004 to the Closing Date. The Company will not
be obligated to deliver any of the Securities except upon payment for all the
Securities to be purchased as provided herein.

         (b)      The Company understands that the Initial Purchasers intend to
offer the Securities for resale on the terms set forth in the Offering
Memorandum. Each Initial Purchaser, severally and not jointly, represents,
warrants and agrees that:

                  (i)      it is a qualified institutional buyer within the
         meaning of Rule 144A under the Securities Act (a "QIB") and an
         accredited investor within the meaning of Rule 501(a) under the
         Securities Act;

                  (ii)     neither it, nor any of its affiliates referenced in
         Section 1(d) below, has solicited offers for, or offered or sold, and
         will not solicit offers for, or offer or sell, the Securities by means
         of any form of general solicitation or general advertising within the
         meaning of Rule 502(c) of Regulation D under the Securities Act
         ("Regulation D") or in any manner involving a public offering within
         the meaning of Section 4(2) of the Securities Act; and

                  (iii)    it has not solicited offers for, or offered or sold,
         and will not solicit offers for, or offer or sell, the Securities as
         part of their initial offering except:

                           (A)      within the United States to persons whom it
                  reasonably believes to be QIBs in transactions pursuant to
                  Rule 144A under the Securities Act ("Rule 144A") and in
                  connection with each such sale, it has taken or will take
                  reasonable steps to ensure that the purchaser of the
                  Securities is aware that such sale is being made in reliance
                  on Rule 144A; or

                           (B)      in accordance with the restrictions set
                  forth in Annex A hereto.

         (c)      Each Initial Purchaser acknowledges and agrees that the
Company and, for purposes of the opinions to be delivered to the Initial
Purchasers pursuant to Sections 5(f) and 5(g), counsel for the Company and
counsel for the Initial Purchasers, respectively, may rely upon the accuracy of
the representations and warranties of the Initial Purchasers, and compliance by
the Initial Purchasers with their agreements, contained in paragraph (b) above
(including Annex A hereto), and each Initial Purchaser hereby consents to such
reliance.

         (d)      The Company acknowledges and agrees that the Initial
Purchasers may offer and sell Securities to or through any affiliate of an
Initial Purchaser and that any such affiliate may offer and sell Securities
purchased by it to or through any Initial Purchaser.

         2.       Payment and Delivery. (a) Payment for and delivery of the
Securities will be made at the offices of Simpson Thacher & Bartlett LLP at
10:00 A.M., New York City time, on March 4, 2004, or at such other time or place
on the same or such other date, not later than the

                                       3
<PAGE>

fifth business day thereafter, as the Representative and the Company may agree
upon in writing. The time and date of such payment and delivery is referred to
herein as the "Closing Date".

         (b)      Payment for the Securities shall be made by wire transfer in
immediately available funds to the account(s) specified by the Company to the
Representative against delivery to the nominee of The Depository Trust Company,
for the account of the Initial Purchasers, of one or more global notes
representing the Securities (collectively, the "Global Note"), with any transfer
taxes payable in connection with the sale of the Securities duly paid by the
Company. The Global Note will be made available for inspection by the
Representative not later than 1:00 P.M., New York City time, on the business day
prior to the Closing Date.

         3.       Representations and Warranties of the Company and the
Guarantor. The Company and the Guarantor jointly and severally represent and
warrant to each Initial Purchaser that:

         (a)      Offering Memorandum. The Preliminary Offering Memorandum, as
of its date, did not, and the Offering Memorandum, as of its date and as of the
Closing Date, will not, contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading;
provided that the Company and the Guarantor make no representation or warranty
with respect to any statements or omissions made in reliance upon and in
conformity with information relating to any Initial Purchaser furnished to the
Company in writing by such Initial Purchaser through the Representative
expressly for use in the Preliminary Offering Memorandum and the Offering
Memorandum.

         (b)      Incorporated Documents. The documents incorporated by
reference in the Preliminary Offering Memorandum and the Offering Memorandum,
when filed with the Commission, conformed or will conform, as the case may be,
in all material respects to the requirements of the Exchange Act and the rules
and regulations of the Commission thereunder, and did not and will not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

         (c)      Financial Statements. The financial statements and the related
notes thereto included or incorporated by reference in the Preliminary Offering
Memorandum and the Offering Memorandum present fairly the financial position of
the Company and its subsidiaries as of the dates indicated and the results of
their operations and the changes in their cash flows for the periods specified;
such financial statements have been prepared in conformity with generally
accepted accounting principles applied on a consistent basis throughout the
periods covered thereby; and the other financial information included or
incorporated by reference in the Preliminary Offering Memorandum and the
Offering Memorandum has been derived from the accounting records of the Company
and its subsidiaries and presents fairly the information shown thereby; and the
pro forma financial information and the related notes thereto included or
incorporated by reference in the Preliminary Offering Memorandum and the
Offering Memorandum has been prepared in accordance with the Commission's rules
and guidance with respect to pro forma financial information, and the
assumptions underlying such pro forma

                                       4
<PAGE>

financial information are reasonable and are set forth in the Preliminary
Offering Memorandum and the Offering Memorandum.

         (d)      No Material Adverse Change. Since the date of the most recent
financial statements of the Company included or incorporated by reference in the
Preliminary Offering Memorandum and the Offering Memorandum, excluding the
Transactions, (i) there has not been any change in the capital stock or
long-term debt of the Company or any of its subsidiaries (other than, in the
case of such long-term debt, the accrual of interest in accordance with terms
thereof), or any dividend or distribution of any kind declared, set aside for
payment, paid or made by the Company on any class of capital stock, or any
material adverse change, or any development involving a prospective material
adverse change, in or affecting the business, properties, management, financial
position, results of operations or prospects of the Company and its subsidiaries
taken as a whole; (ii) neither the Company nor any of its subsidiaries has
entered into any transaction or agreement that is material to the Company and
its subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to the Company and its subsidiaries taken
as a whole; and (iii) neither the Company nor any of its subsidiaries has
sustained any material loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from
any labor disturbance or dispute or any action, order or decree of any court or
arbitrator or governmental or regulatory authority, except in each case as
otherwise disclosed in the Preliminary Offering Memorandum and the Offering
Memorandum.

         (e)      Organization and Good Standing. The Company and each of its
subsidiaries have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization, are
duly qualified to do business and are in good standing in each jurisdiction in
which their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification, and have all power and
authority necessary to own or hold their respective properties and to conduct
the businesses in which they are engaged, except where the failure to be so
qualified or have such power or authority would not, individually or in the
aggregate, have a material adverse effect on the business, properties,
management, financial position, results of operations or prospects of the
Company and its subsidiaries taken as a whole or on the performance by the
Company and the Guarantor of their obligations under the Securities and the
Guarantee (a "Material Adverse Effect"). The Guarantor is the only subsidiary of
the Company.

         (f)      Capitalization. The Company and Holdings have an authorized
capitalization as set forth in the Preliminary Offering Memorandum and the
Offering Memorandum under the heading "Capitalization"; all the outstanding
shares of capital stock or other equity interests of each subsidiary of the
Company have been duly and validly authorized and issued, are fully paid and
non-assessable and are owned directly or indirectly by the Company, free and
clear of any lien, charge, encumbrance, security interest, restriction on voting
or transfer or any other claim of any third party; and the capital stock of the
Company and Holdings will conform in all material respects to the description
thereof set forth in the Offering Memorandum.

         (g)      Due Authorization. The Company and the Guarantor have full
right, power and authority to execute and deliver this Agreement, the
Securities, the Indenture (including each Guarantee set forth therein), the
Exchange Securities, the Registration Rights Agreement and any

                                       5
<PAGE>

other agreement or instrument entered into or to be entered into in connection
with the Transactions, contemplated hereby or thereby, including, without
limitation, the Agreement and Plan of Merger, Stock Purchase Agreement and
Credit Agreement (collectively, the "Transaction Documents") and to perform
their respective obligations hereunder and thereunder; and all action required
to be taken for the due and proper authorization, execution and delivery of each
of the Transaction Documents and the consummation of the transactions
contemplated thereby has been duly and validly taken.

         (h)      The Indenture. The Indenture has been duly authorized by the
Company and the Guarantor and, when duly executed and delivered in accordance
with its terms by each of the parties thereto, will constitute a valid and
legally binding agreement of the Company and the Guarantor enforceable against
the Company and the Guarantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally or by equitable
principles relating to enforceability (collectively, the "Enforceability
Exceptions"); and on the Closing Date, the Indenture will conform in all
material respects to the requirements of the Trust Indenture Act of 1939, as
amended (the "Trust Indenture Act"), and the rules and regulations of the
Commission applicable to an indenture that is qualified thereunder.

         (i)      The Securities and the Guarantee. The Securities have been
duly authorized by the Company and, when duly executed, authenticated, issued
and delivered as provided in the Indenture and paid for as provided herein, will
be duly and validly issued and outstanding and will constitute valid and legally
binding obligations of the Company enforceable against the Company in accordance
with their terms, subject to the Enforceability Exceptions, and will be entitled
to the benefits of the Indenture; and the Guarantee has been duly authorized by
the Guarantor and, when the Securities have been duly executed, authenticated,
issued and delivered as provided in the Indenture and paid for as provided
herein, will be valid and legally binding obligations of the Guarantor,
enforceable against the Guarantor in accordance with their terms, subject to the
Enforceability Exceptions, and will be entitled to the benefits of the
Indenture.

         (j)      The Exchange Securities. On the Closing Date, the Exchange
Securities (including the related guarantee) will have been duly authorized by
the Company and the Guarantor and, when duly executed, authenticated, issued and
delivered as contemplated by the Registration Rights Agreement, will be duly and
validly issued and outstanding and will constitute valid and legally binding
obligations of the Company, as issuer, and the Guarantor, as guarantor,
enforceable against the Company and the Guarantor in accordance with their
terms, subject to the Enforceability Exceptions, and will be entitled to the
benefits of the Indenture.

         (k)      Purchase and Registration Rights Agreements. This Agreement
has been duly authorized, executed and delivered by the Company and the
Guarantor; and the Registration Rights Agreement has been duly authorized by the
Company and the Guarantor and, when duly executed and delivered in accordance
with its terms by each of the parties thereto, will constitute a valid and
legally binding agreement of the Company and the Guarantor enforceable against
the Company and the Guarantor in accordance with its terms, subject to the
Enforceability Exceptions, and except that rights to indemnity and contribution
thereunder may be limited by applicable law and public policy.

                                       6
<PAGE>

         (l)      Other Transaction Documents. The Transaction Documents have
been duly authorized by the Company and the Guarantor party thereto and, when
duly executed and delivered in accordance with their terms by each of the
parties thereto, assuming that each of the Transaction Documents is a valid and
legally binding obligation of each of the parties thereto other than the Company
and the Guarantor, will constitute valid and legally binding agreements of the
Company and the Guarantor enforceable against the Company and the Guarantor in
accordance with its terms, subject to the Enforceability Exceptions.

         (m)      Descriptions of the Transaction Documents. Each Transaction
Document conforms in all material respects to the description thereof contained
in the Preliminary Offering Memorandum and the Offering Memorandum.

         (n)      No Violation or Default. Neither the Company nor any of its
subsidiaries is (i) in violation of its charter or by-laws or similar
organizational documents; (ii) in default, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the
property or assets of the Company or any of its subsidiaries is subject; or
(iii) in violation of any law or statute or any judgment, order, rule or
regulation of any court or arbitrator or governmental or regulatory authority,
except, in the case of clauses (ii) and (iii) above, for any such default or
violation that would not, individually or in the aggregate, have a Material
Adverse Effect.

         (o)      No Conflicts. Subject to (A) the execution and delivery of the
supplemental indenture for the Old Notes as contemplated by the Offer to
Purchase and Consent Solicitation Statement of the Company dated February 4,
2004 (consents to which have already been obtained), (B) the execution and
delivery of the supplemental indenture for the Old Debentures as contemplated by
the Offer to Purchase and Consent Solicitation Statement of Holdings dated
February 4, 2004 (consents to which have already been obtained), and (C) the
refinancing of the Existing Credit Agreement, the execution, delivery and
performance by the Company and the Guarantor of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities
(including the Guarantee) and compliance by the Company and the Guarantor with
the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
or result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any of its subsidiaries pursuant to,
any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the
property or assets of the Company or any of its subsidiaries is subject, (ii)
result in any violation of the provisions of the charter or by-laws or similar
organizational documents of the Company or any of its subsidiaries or (iii)
result in the violation of any law or statute or any judgment, order, decree,
rule or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (i) and (iii) above, for any such
conflict, breach or violation that would not, individually or in the aggregate,
have a Material Adverse Effect.

                                       7
<PAGE>

         (p)      No Consents Required. No consent, approval, authorization,
order, registration or qualification of or with any court or arbitrator or
governmental or regulatory authority is required for the execution, delivery and
performance by the Company and the Guarantor of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities
(including the Guarantee) and compliance by the Company and the Guarantor with
the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents, except for such consents, approvals, authorizations,
orders and registrations or qualifications as may be required (i) under
applicable state securities laws in connection with the purchase and resale of
the Securities by the Initial Purchasers, (ii) to release existing liens in
connection with the refinancing of the Existing Credit Agreement, and (iii) with
respect to the Exchange Securities (including the related guarantee) under the
Securities Act and applicable state securities laws as contemplated by the
Registration Rights Agreement.

         (q)      Legal Proceedings. Except as described in the Preliminary
Offering Memorandum and the Offering Memorandum, there are no legal,
governmental or regulatory investigations, actions, suits or proceedings pending
to which the Company or any of its subsidiaries is or may be a party or to which
any property or assets of the Company or any of its subsidiaries is or may be
the subject that, individually or in the aggregate, if determined adversely to
the Company or any of its subsidiaries, could reasonably be expected to have a
Material Adverse Effect; and no such investigations, actions, suits or
proceedings are threatened or, to the best knowledge of the Company and the
Guarantor, contemplated by any governmental or regulatory authority or
threatened by others.

         (r)      Independent Accountants. Deloitte & Touche LLP, who have
certified certain financial statements of the Company and its subsidiaries are
the independent public accountants with respect to the Company and its
subsidiaries within the meaning of Rule 101 of the Code of Professional Conduct
of the American Institute of Certified Public Accountants and its
interpretations and rulings thereunder.

         (s)      Title to Real and Personal Property. The Company and its
subsidiaries have good and marketable title in fee simple to, or have valid
rights to lease or otherwise use, all items of real and personal property that
are material to the respective businesses of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title except those that (i) do not materially interfere with
the use made and proposed to be made of such property by the Company and its
subsidiaries or (ii) could not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

         (t)      Title to Intellectual Property. The Company and its
subsidiaries own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their
respective businesses except where the failure to so own or possess such rights
would not, singularly or in the aggregate, have a Material Adverse Effect; and
the conduct of their respective businesses will not conflict in any material
respect with any such rights of others, and the Company and its subsidiaries
have not received any notice of any claim of infringement of or conflict with
any

                                       8
<PAGE>

such rights of others which would, singularly or in the aggregate, have a
Material Adverse Effect.

         (u)      Investment Company Act. Neither the Company nor any of its
subsidiaries is, and after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Offering Memorandum none of them will be, an "investment company" or an entity
"controlled" by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended, and the rules and regulations of the Commission
thereunder (collectively, "Investment Company Act").

         (v)      Public Utility Holding Company Act. Neither the Company nor
any of its subsidiaries is a "holding company" or a "subsidiary company" of a
holding company or an "affiliate" thereof within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

         (w)      Taxes. The Company and its subsidiaries have paid all federal,
state, local and foreign taxes and filed all tax returns required to be paid or
filed through the date hereof; and except as otherwise disclosed in the
Preliminary Offering Memorandum and the Offering Memorandum, there is no tax
deficiency that has been, or could reasonably be expected to be, asserted
against the Company or any of its subsidiaries or any of their respective
properties or assets, except where the failure to so file or make such payments
would not, singularly or in the aggregate, have a Material Adverse Effect.

         (x)      Licenses and Permits. The Company and its subsidiaries possess
all licenses, certificates, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate federal, state, local or
foreign governmental or regulatory authorities that are necessary for the
ownership or lease of their respective properties or the conduct of their
respective businesses as described in the Preliminary Offering Memorandum and
the Offering Memorandum, except where the failure to possess or make the same
would not, individually or in the aggregate, have a Material Adverse Effect; and
except as described in the Preliminary Offering Memorandum and the Offering
Memorandum, neither the Company nor any of its subsidiaries has received notice
of any revocation or modification of any such license, certificate, permit or
authorization or has any reason to believe that any such license, certificate,
permit or authorization will not be renewed in the ordinary course.

         (y)      No Labor Disputes. No labor disturbance by or dispute with
employees of the Company or any of its subsidiaries exists or, to the best
knowledge of the Company and the Guarantor, is contemplated or threatened which
could, singularly or in the aggregate, have a Material Adverse Effect.

         (z)      Compliance With Environmental Laws. The Company and its
subsidiaries (i) are in compliance with any and all applicable federal, state,
local and foreign laws, rules, regulations, decisions and orders relating to the
protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, "Environmental
Laws"); (ii) have received and are in compliance with all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; and (iii) have not received notice of any actual or
potential liability for the

                                       9
<PAGE>

investigation or remediation of any disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants, except in any such case for
any such failure to comply with, or failure to receive required permits,
licenses or approvals, or liability, as would not, individually or in the
aggregate, have a Material Adverse Effect.

         (aa)     Compliance With ERISA. Each employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"), that is maintained, administered or contributed to by the
Company or any of its affiliates for employees or former employees of the
Company and its affiliates has been maintained in compliance with its terms and
the requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Internal Revenue Code of 1986, as
amended (the "Code"); no prohibited transaction, within the meaning of Section
406 of ERISA or Section 4975 of the Code, has occurred with respect to any such
plan excluding transactions effected pursuant to a statutory or administrative
exemption which could reasonably be expected to have a Material Adverse Effect;
and for each such plan that is subject to the funding rules of Section 412 of
the Code or Section 302 of ERISA, no "accumulated funding deficiency" as defined
in Section 412 of the Code has been incurred, whether or not waived, which could
reasonably be expected to have a Material Adverse Effect and the fair market
value of the assets of each such plan (excluding for these purposes accrued but
unpaid contributions) exceeds the present value of all benefits accrued under
such plan determined using reasonable actuarial assumptions.

         (bb)     Accounting Controls. The Company and its subsidiaries maintain
systems of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management's general or
specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

         (cc)     Insurance. The Company and its subsidiaries have insurance
covering their respective properties, operations, personnel and businesses,
including business interruption insurance, which insurance is in amounts and
insures against such losses and risks as are adequate to protect the Company and
its subsidiaries and their respective businesses; and neither the Company nor
any of its subsidiaries has (i) received notice from any insurer or agent of
such insurer that capital improvements or other expenditures are required or
necessary to be made in order to continue such insurance or (ii) any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage at reasonable cost from
similar insurers as may be necessary to continue its business.

         (dd)     No Unlawful Payments. Neither the Company nor any of its
subsidiaries nor, to the best knowledge of the Company and the Guarantor, any
director, officer, agent, employee or other person associated with or acting on
behalf of the Company or any of its subsidiaries has (i) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful
expense relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from
corporate funds; (iii) violated or is in

                                       10
<PAGE>

violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv)
made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.

         (ee)     Solvency. On and immediately after the Closing Date, the
Company (after giving effect to the issuance of the Securities and the other
transactions related thereto as described in the Offering Memorandum) will be
Solvent. As used in this paragraph, the term "Solvent" means, with respect to a
particular date, that on such date (i) the present fair market value (or present
fair saleable value) of the assets of the Company is not less than the total
amount required to pay the liabilities of the Company on its total existing
debts and liabilities (including contingent liabilities) as they become absolute
and matured; (ii) the Company is able to realize upon its assets and pay its
debts and other liabilities, contingent obligations and commitments as they
mature and become due in the normal course of business; (iii) assuming
consummation of the issuance of the Securities as contemplated by this Agreement
and the Offering Memorandum, the Company is not incurring debts or liabilities
beyond its ability to pay as such debts and liabilities mature; (iv) the Company
is not engaged in any business or transaction, and does not propose to engage in
any business or transaction, for which its property would constitute
unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which the Company is engaged; and (v) the Company is
not a defendant in any civil action that would result in a judgment that the
Company is or would become unable to satisfy.

         (ff)     No Restrictions on Subsidiaries. No subsidiary of the Company
is currently prohibited, directly or indirectly, under any agreement or other
instrument to which it is a party or is subject, from paying any dividends to
the Company, from making any other distribution on such subsidiary's capital
stock, from repaying to the Company any loans or advances to such subsidiary
from the Company or from transferring any of such subsidiary's properties or
assets to the Company or any other subsidiary of the Company.

         (gg)     No Broker's Fees. Neither the Company nor any of its
subsidiaries is a party to any contract, agreement or understanding with any
person (other than this Agreement) that would give rise to a valid claim against
any of them or any Initial Purchaser for a brokerage commission, finder's fee or
like payment in connection with the offering and sale of the Securities.

         (hh)     Rule 144A Eligibility. On the Closing Date, the Securities
will not be of the same class as securities listed on a national securities
exchange registered under Section 6 of the Exchange Act or quoted in an
automated inter-dealer quotation system; and each of the Preliminary Offering
Memorandum and the Offering Memorandum, as of its respective date, contains or
will contain all the information that, if requested by a prospective purchaser
of the Securities, would be required to be provided to such prospective
purchaser pursuant to Rule 144A(d)(4) under the Securities Act.

         (ii)     No Integration. Neither the Company nor any of its affiliates
(as defined in Rule 501(b) of Regulation D) has, directly or through any agent,
sold, offered for sale, solicited offers to buy or otherwise negotiated in
respect of, any security (as defined in the Securities Act), that is or will be
integrated with the sale of the Securities in a manner that would require
registration of the Securities under the Securities Act.

                                       11
<PAGE>

         (jj)     No General Solicitation or Directed Selling Efforts. None of
the Company or any of its affiliates or any other person acting on its or their
behalf (other than the Initial Purchasers, as to which no representation is
made) has (i) solicited offers for, or offered or sold, the Securities by means
of any form of general solicitation or general advertising within the meaning of
Rule 502(c) of Regulation D or in any manner involving a public offering within
the meaning of Section 4(2) of the Securities Act or (ii) engaged in any
directed selling efforts within the meaning of Regulation S under the Securities
Act ("Regulation S"), and all such persons have complied with the offering
restrictions requirement of Regulation S.

         (kk)     Securities Law Exemptions. Assuming the accuracy of the
representations and warranties of the Initial Purchasers contained in Section
1(b) (including Annex A hereto) and their compliance with their agreements set
forth therein, it is not necessary, in connection with the issuance and sale of
the Securities to the Initial Purchasers and the offer, resale and delivery of
the Securities by the Initial Purchasers in the manner contemplated by this
Agreement and the Offering Memorandum, to register the Securities under the
Securities Act or to qualify the Indenture under the Trust Indenture Act.

         (ll)     No Stabilization. Neither the Company nor the Guarantor has
taken, directly or indirectly, any action designed to or that could reasonably
be expected to cause or result in any stabilization or manipulation of the price
of the Securities.

         (mm)     Margin Rules. Neither the issuance, sale and delivery of the
Securities nor the application of the proceeds thereof by the Company as
described in the Offering Memorandum will violate Regulation T, U or X of the
Board of Governors of the Federal Reserve System or any other regulation of such
Board of Governors.

         (nn)     Forward-Looking Statements. No forward-looking statement
(within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) contained in the Preliminary Offering Memorandum and the Offering
Memorandum has been made or reaffirmed without a reasonable basis or has been
disclosed other than in good faith.

         (oo)     Statistical and Market Data. Nothing has come to the attention
of the Company that has caused the Company to believe that the statistical and
market-related data included or incorporated by reference in the Preliminary
Offering Memorandum and the Offering Memorandum is not based on or derived from
sources that are reliable and accurate in all material respects.

         4.       Further Agreements of the Company and the Guarantor. The
Company and the Guarantor jointly and severally covenant and agree with each
Initial Purchaser that:

         (a)      Delivery of Copies. The Company will deliver to the Initial
Purchasers as many copies of the Preliminary Offering Memorandum and the
Offering Memorandum (including all amendments and supplements thereto) as the
Representative may reasonably request.

         (b)      Amendments or Supplements. Before making or distributing any
amendment or supplement to the Preliminary Offering Memorandum or the Offering
Memorandum or filing with the Commission any document that will be incorporated
by reference therein, the Company will furnish to the Representative and counsel
for the Initial Purchasers a copy of the proposed

                                       12
<PAGE>

amendment or supplement or document to be incorporated by reference therein for
review, and will not distribute any such proposed amendment or supplement or
file any such document with the Commission to which the Representative
reasonably objects.

         (c)      Notice to the Representative. The Company will advise the
Representative promptly, and confirm such advice in writing, (i) of the issuance
by any governmental or regulatory authority of any order preventing or
suspending the use of the Preliminary Offering Memorandum or the Offering
Memorandum or the initiation or threatening of any proceeding for that purpose;
(ii) of the occurrence of any event at any time prior to the completion of the
initial offering of the Securities as a result of which the Offering Memorandum
as then amended or supplemented would include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances existing when the Offering Memorandum
is delivered to a purchaser, not misleading; and (iii) of the receipt by the
Company of any notice with respect to any suspension of the qualification of the
Securities for offer and sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and the Company will use its
reasonable best efforts to prevent the issuance of any such order preventing or
suspending the use of the Preliminary Offering Memorandum or the Offering
Memorandum or suspending any such qualification of the Securities and, if any
such order is issued, will obtain as soon as possible the withdrawal thereof.

         (d)      Ongoing Compliance of the Offering Memorandum. If at any time
prior to the completion of the initial offering of the Securities (i) any event
shall occur or condition shall exist as a result of which the Offering
Memorandum as then amended or supplemented would include any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances existing when the
Offering Memorandum is delivered to a purchaser, not misleading or (ii) it is
necessary to amend or supplement the Offering Memorandum to comply with law, the
Company will immediately notify the Initial Purchasers thereof and forthwith
prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers
such amendments or supplements to the Offering Memorandum (or any document to be
filed with the Commission and incorporated by reference therein) as may be
necessary so that the statements in the Offering Memorandum as so amended or
supplemented (or including such document to be incorporated by reference
therein) will not, in the light of the circumstances existing when the Offering
Memorandum is delivered to a purchaser, be misleading or so that the Offering
Memorandum will comply with law.

         (e)      Blue Sky Compliance. The Company will qualify the Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions
as the Representative shall reasonably request and will continue such
qualifications in effect so long as required for the offering and resale of the
Securities; provided that neither the Company nor the Guarantor shall be
required to (i) qualify as a foreign corporation or other entity or as a dealer
in securities in any such jurisdiction where it would not otherwise be required
to so qualify, (ii) file any general consent to service of process in any such
jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it
is not otherwise so subject.

         (f)      Clear Market. During the period from the date hereof through
and including the date that is 180 days after the date hereof, the Company and
the Guarantor will not, without the prior written consent of the Representative,
offer, sell, contract to sell or otherwise dispose of

                                       13
<PAGE>

any debt securities issued or guaranteed by the Company or the Guarantor and
having a term of more than one year, provided, that this paragraph (f) shall not
prevent the Company from entering into capitalized lease obligations in the
ordinary course of business, borrowing amounts pursuant to the Credit Facility
or issuing notes to the seller of an asset or a security.

         (g)      Use of Proceeds. The Company will apply the net proceeds from
the sale of the Securities as described in the Offering Memorandum under the
heading "Use of Proceeds".

         (h)      Supplying Information. While the Securities remain outstanding
and are "restricted securities" within the meaning of Rule 144(a)(3) under the
Securities Act, the Company and the Guarantor will, during any period in which
the Company is not subject to and in compliance with Section 13 or 15(d) of the
Exchange Act, furnish to holders of the Securities and prospective purchasers of
the Securities designated by such holders, upon the request of such holders or
such prospective purchasers, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act.

         (i)      PORTAL and DTC. The Company will assist the Initial Purchasers
in arranging for the Securities to be designated Private Offerings, Resales and
Trading through Automated Linkages ("PORTAL") Market securities in accordance
with the rules and regulations adopted by the National Association of Securities
Dealers, Inc. ("NASD") relating to trading in the PORTAL Market and for the
Securities to be eligible for clearance and settlement through The Depository
Trust Company ("DTC").

         (j)      No Resales by the Company. Until the issuance of the Exchange
Securities, the Company will not, and will not permit any of its affiliates (as
defined in Rule 144 under the Securities Act) to, resell any of the Securities
that have been acquired by any of them, except for Securities purchased by the
Company or any of its affiliates and resold in a transaction registered under
the Securities Act.

         (k)      No Integration. Neither the Company nor any of its affiliates
(as defined in Rule 501(b) of Regulation D) will, directly or through any agent,
sell, offer for sale, solicit offers to buy or otherwise negotiate in respect
of, any security (as defined in the Securities Act), that is or will be
integrated with the sale of the Securities in a manner that would require
registration of the Securities under the Securities Act.

         (l)      No General Solicitation or Directed Selling Efforts. None of
the Company or any of its affiliates or any other person acting on its or their
behalf (other than the Initial Purchasers, as to which no covenant is given)
will (i) solicit offers for, or offer or sell, the Securities by means of any
form of general solicitation or general advertising within the meaning of Rule
502(c) of Regulation D or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act or (ii) engage in any directed
selling efforts within the meaning of Regulation S, and all such persons will
comply with the offering restrictions requirement of Regulation S.

         (m)      No Stabilization. Neither the Company nor the Guarantor will
take, directly or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the price of
the Securities.

                                       14
<PAGE>

         5.       Conditions of Initial Purchasers' Obligations. The obligation
of each Initial Purchaser to purchase Securities on the Closing Date as provided
herein is subject to the performance by the Company and the Guarantor of their
respective covenants and other obligations hereunder and to the following
additional conditions:

         (a)      Representations and Warranties. The representations and
warranties of the Company and the Guarantor contained herein shall be true and
correct on the date hereof and on and as of the Closing Date; and the statements
of the Company, the Guarantor and their respective officers made in any
certificates delivered pursuant to this Agreement shall be true and correct on
and as of the Closing Date.

         (b)      No Downgrade. Subsequent to the execution and delivery of this
Agreement, (i) no downgrading shall have occurred in the rating accorded the
Securities or any other debt securities or preferred stock issued or guaranteed
by the Company or the Guarantor by any "nationally recognized statistical rating
organization", as such term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act; and (ii) no such organization shall have
publicly announced that it has under surveillance or review, or has changed its
outlook with respect to, its rating of the Securities or of any other debt
securities or preferred stock issued or guaranteed by the Company or the
Guarantor (other than an announcement with positive implications of a possible
upgrading).

         (c)      No Material Adverse Change. Subsequent to the execution and
delivery of this Agreement, no event or condition of a type described in Section
3(d) hereof shall have occurred or shall exist, which event or condition is not
described in the Offering Memorandum (excluding any amendment or supplement
thereto or any document filed with the Commission after the date hereof and
incorporated by reference therein) and the effect of which in the judgment of
the Representative makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner
contemplated by this Agreement and the Offering Memorandum.

         (d)      Officer's Certificate. The Representative shall have received
on and as of the Closing Date a certificate of an executive officer of the
Company and the Guarantor who has specific knowledge of the Company's or the
Guarantor's financial matters and is satisfactory to the Representative (i)
confirming that such officer has carefully reviewed the Offering Memorandum and,
to the best knowledge of such officer, the representation set forth in Section
3(a) hereof is true and correct, (ii) confirming that the other representations
and warranties of the Company and the Guarantor in this Agreement are true and
correct and that the Company and the Guarantor have complied with all agreements
and satisfied all conditions on their part to be performed or satisfied
hereunder at or prior to the Closing Date and (iii) to the effect set forth in
paragraphs (b) and (c) above.

         (e)      Comfort Letters. On the date of this Agreement and on the
Closing Date, Deloitte & Touche LLP shall have furnished to the Representative,
at the request of the Company, letters, dated the respective dates of delivery
thereof and addressed to the Initial Purchasers, in form and substance
reasonably satisfactory to the Representative, containing statements and
information of the type customarily included in accountants' "comfort letters"
to underwriters with respect to the financial statements and certain financial
information contained in the Preliminary Offering

                                       15
<PAGE>

Memorandum and the Offering Memorandum; provided that the letter delivered on
the Closing Date shall use a "cut-off" date no more than three business days
prior to the Closing Date.

         (f)      Opinions of Counsel for the Company. Bingham McCutchen LLP,
counsel for the Company, and Morris, Laing, Evans, Brock & Kennedy, Chartered,
special Kansas counsel to the Company shall have furnished to the
Representative, at the request of the Company, their written opinion, dated the
Closing Date and addressed to the Initial Purchasers, in form and substance
reasonably satisfactory to the Representative, to the effect set forth in Annex
B hereto.

         (g)      Opinion of Counsel for the Initial Purchasers. The
Representative shall have received on and as of the Closing Date an opinion of
Simpson Thacher & Bartlett LLP, counsel for the Initial Purchasers, with respect
to such matters as the Representative may reasonably request, and such counsel
shall have received such documents and information as they may reasonably
request to enable them to pass upon such matters.

         (h)      No Legal Impediment to Issuance. No action shall have been
taken and no statute, rule, regulation or order shall have been enacted, adopted
or issued by any federal, state or foreign governmental or regulatory authority
that would, as of the Closing Date, prevent the issuance or sale of the
Securities or the issuance of the Guarantee; and no injunction or order of any
federal, state or foreign court shall have been issued that would, as of the
Closing Date, prevent the issuance or sale of the Securities or the issuance of
the Guarantee.

         (i)      Good Standing. The Representative shall have received on and
as of the Closing Date satisfactory evidence of the good standing of the Company
and its subsidiaries in their respective jurisdictions of organization and their
good standing in such other jurisdictions as the Representative may reasonably
request, in each case in writing or any standard form of telecommunication, from
the appropriate governmental authorities of such jurisdictions.

         (j)      Registration Rights Agreement. The Initial Purchasers shall
have received a counterpart of the Registration Rights Agreement that shall have
been executed and delivered by a duly authorized officer of the Company and the
Guarantor.

         (k)      PORTAL and DTC. The Securities shall have been approved by the
NASD for trading in the PORTAL Market and shall be eligible for clearance and
settlement through DTC.

         (l)      No Default or Event of Default. At the Closing Date, after
giving effect to the consummation of the transactions contemplated by the
Transaction Documents, there shall exist no default or event of default under
the Indenture or the Transaction Documentation.

         (m)      Transaction Documents. The Transaction Documents shall have
been duly executed and delivered prior to or concurrently with the closing of
the offering of the Securities by the Company and the Guarantor and the other
parties thereto and the Company and the Guarantor shall have satisfied, or
ensured the satisfaction of, all conditions precedent thereto.

         (n)      Transactions. The Transactions (excluding the closing of the
offering of the Securities) shall have been consummated prior to or concurrently
with the closing of the offering of the Securities and there shall not be any
pending or threatened legal or governmental

                                       16
<PAGE>

proceedings with respect to the Transactions other than as described in the
Offering Memorandum (exclusive of any amendment or supplement thereto).

         (o)      Additional Documents. On or prior to the Closing Date, the
Company and the Guarantor shall have furnished to the Representative such
further certificates and documents as the Representative may reasonably request.

         All opinions, letters, certificates and evidence mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Initial Purchasers.

         6.       Indemnification and Contribution.

         (a)      Indemnification of the Initial Purchasers. The Company and the
Guarantor jointly and severally agree to indemnify and hold harmless each
Initial Purchaser, its affiliates, directors and officers and each person, if
any, who controls such Initial Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including, without limitation, legal
fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint
or several, that arise out of, or are based upon, any untrue statement or
alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum or the Offering Memorandum (or any amendment or supplement
thereto) or any omission or alleged omission to state therein a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as such
losses, claims, damages or liabilities arise out of, or are based upon, any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial
Purchaser furnished to the Company in writing by such Initial Purchaser through
the Representative expressly for use therein; provided, that with respect to any
such untrue statement in or omission from the Preliminary Offering Memorandum,
the indemnity agreement contained in this paragraph (a) shall not inure to the
benefit of any Initial Purchaser to the extent that the sale to the person
asserting any such loss, claim, damage or liability was an initial resale by
such Initial Purchaser and any such loss, claim, damage or liability of or with
respect to such Initial Purchaser results from the fact that both (i) a copy of
the Offering Memorandum (excluding any documents incorporated by reference
therein) was not sent or given to such person at or prior to the written
confirmation of the sale of such Securities to such person and (ii) the untrue
statement in or omission from such Preliminary Offering Memorandum was corrected
in the Offering Memorandum unless, in either case, such failure to deliver the
Offering Memorandum was a result of non-compliance by the Company with the
provisions of Section 4 hereof.

         (b)      Indemnification of the Company. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, the
Guarantor and each person, if any, who controls the Company or the Guarantor
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the indemnity set forth in paragraph (a)
above, but only with respect to any losses, claims, damages or liabilities that
arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any
information relating to such Initial Purchaser

                                       17
<PAGE>

furnished to the Company in writing by such Initial Purchaser through the
Representative expressly for use in the Preliminary Offering Memorandum and the
Offering Memorandum (or any amendment or supplement thereto), it being
understood and agreed that the only such information consists of the following:
the third paragraph, the fifth and sixth sentences of the eighth paragraph, and
the tenth paragraph under the heading "Plan of distribution."

         (c)      Notice and Procedures. If any suit, action, proceeding
(including any governmental or regulatory investigation), claim or demand shall
be brought or asserted against any person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such person (the
"Indemnified Person") shall promptly notify the person against whom such
indemnification may be sought (the "Indemnifying Person") in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have under this Section 6 except to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under this Section 6. If any such
proceeding shall be brought or asserted against an Indemnified Person and it
shall have notified the Indemnifying Person thereof, the Indemnifying Person
shall retain counsel reasonably satisfactory to the Indemnified Person to
represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 6 that the Indemnifying Person may designate in such
proceeding and shall pay the reasonable fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Person unless (i)
the Indemnifying Person and the Indemnified Person shall have mutually agreed to
the contrary; (ii) the Indemnifying Person has failed within a reasonable time
to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those
available to the Indemnifying Person; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them. It is understood and agreed that the Indemnifying Person shall
not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses shall be reimbursed as they are incurred. Any such
separate firm for any Initial Purchaser, its affiliates, directors and officers
and any control persons of such Initial Purchaser shall be designated in writing
by J.P. Morgan Securities Inc. and any such separate firm for the Company, the
Guarantor and any control persons of the Company and the Guarantor shall be
designated in writing by the Company. The Indemnifying Person shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified
Person shall have requested that an Indemnifying Person reimburse the
Indemnified Person for reasonable fees and expenses of counsel as contemplated
by this paragraph, the Indemnifying Person shall be liable for any settlement of
any proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by the Indemnifying Person of such
request and (ii)

                                       18
<PAGE>

the Indemnifying Person shall not have reimbursed the Indemnified Person in
accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect
of which any Indemnified Person is or could have been a party and
indemnification could have been sought hereunder by such Indemnified Person,
unless such settlement (x) includes an unconditional release of such Indemnified
Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such
proceeding and (y) does not include any statement as to or any admission of
fault, culpability or a failure to act by or on behalf of any Indemnified
Person.

         (d)      Contribution. If the indemnification provided for in
paragraphs (a) and (b) above is unavailable to an Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount
paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantor on the one hand and
the Initial Purchasers on the other from the offering of the Securities or (ii)
if the allocation provided by clause (i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company and the
Guarantor on the one hand and the Initial Purchasers on the other in connection
with the statements or omissions that resulted in such losses, claims, damages
or liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Guarantor on the one hand and
the Initial Purchasers on the other shall be deemed to be in the same respective
proportions as the net proceeds (before deducting expenses) received by the
Company from the sale of the Securities and the total discounts and commissions
received by the Initial Purchasers in connection therewith, as provided in this
Agreement, bear to the aggregate offering price of the Securities. The relative
fault of the Company and the Guarantor on the one hand and the Initial
Purchasers on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or the Guarantor or by the Initial Purchasers and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

         (e)      Limitation on Liability. The Company, the Guarantor and the
Initial Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 6 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations
referred to in paragraph (d) above. The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to in
paragraph (d) above shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such Indemnified Person in
connection with any such action or claim. Notwithstanding the provisions of this
Section 6, in no event shall an Initial Purchaser be required to contribute any
amount in excess of the amount by which the total discounts and commissions
received by such Initial Purchaser with respect to the offering of the
Securities exceeds the amount of any damages that such Initial Purchaser has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No

                                       19
<PAGE>

person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Initial Purchasers'
obligations to contribute pursuant to this Section 6 are several in proportion
to their respective purchase obligations hereunder and not joint.

         (f)      Non-Exclusive Remedies. The remedies provided for in this
Section 6 are not exclusive and shall not limit any rights or remedies that may
otherwise be available to any Indemnified Person at law or in equity.

         7.       Termination. This Agreement may be terminated in the absolute
discretion of the Representative, by notice to the Company, if after the
execution and delivery of this Agreement and prior to the Closing Date (i)
trading generally shall have been suspended or materially limited on the New
York Stock Exchange or the over-the-counter market; (ii) trading of any
securities issued or guaranteed by the Company, Holdings or the Guarantor shall
have been suspended on any exchange or in any over-the-counter market; (iii) a
general moratorium on commercial banking activities shall have been declared by
federal or New York State authorities; or (iv) there shall have occurred any
outbreak or escalation of hostilities or any change in financial markets or any
calamity or crisis, either within or outside the United States, that, in the
judgment of the Representative, is material and adverse and makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of
the Securities on the terms and in the manner contemplated by this Agreement and
the Offering Memorandum.

         8.       Defaulting Initial Purchaser. (a) If, on the Closing Date, any
Initial Purchaser defaults on its obligation to purchase the Securities that it
has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in
their discretion arrange for the purchase of such Securities by other persons
satisfactory to the Company on the terms contained in this Agreement. If, within
36 hours after any such default by any Initial Purchaser, the non-defaulting
Initial Purchasers do not arrange for the purchase of such Securities, then the
Company shall be entitled to a further period of 36 hours within which to
procure other persons satisfactory to the non-defaulting Initial Purchasers to
purchase such Securities on such terms. If other persons become obligated or
agree to purchase the Securities of a defaulting Initial Purchaser, either the
non-defaulting Initial Purchasers or the Company may postpone the Closing Date
for up to five full business days in order to effect any changes that in the
opinion of counsel for the Company or counsel for the Initial Purchasers may be
necessary in the Offering Memorandum or in any other document or arrangement,
and the Company agrees to promptly prepare any amendment or supplement to the
Offering Memorandum that effects any such changes. As used in this Agreement,
the term "Initial Purchaser" includes, for all purposes of this Agreement unless
the context otherwise requires, any person not listed in Schedule 1 hereto that,
pursuant to this Section 8, purchases Securities that a defaulting Initial
Purchaser agreed but failed to purchase.

         (b)      If, after giving effect to any arrangements for the purchase
of the Securities of a defaulting Initial Purchaser or Initial Purchasers by the
non-defaulting Initial Purchasers and the Company as provided in paragraph (a)
above, the aggregate principal amount of such Securities that remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of
all the Securities, then the Company shall have the right to require each
non-defaulting Initial

                                       20
<PAGE>

Purchaser to purchase the principal amount of Securities that such Initial
Purchaser agreed to purchase hereunder plus such Initial Purchaser's pro rata
share (based on the principal amount of Securities that such Initial Purchaser
agreed to purchase hereunder) of the Securities of such defaulting Initial
Purchaser or Initial Purchasers for which such arrangements have not been made.

         (c)      If, after giving effect to any arrangements for the purchase
of the Securities of a defaulting Initial Purchaser or Initial Purchasers by the
non-defaulting Initial Purchasers and the Company as provided in paragraph (a)
above, the aggregate principal amount of such Securities that remains
unpurchased exceeds one-eleventh of the aggregate principal amount of all the
Securities, or if the Company shall not exercise the right described in
paragraph (b) above, then this Agreement shall terminate without liability on
the part of the non-defaulting Initial Purchasers. Any termination of this
Agreement pursuant to this Section 8 shall be without liability on the part of
the Company or the Guarantor, except that the Company and the Guarantor will
continue to be liable for the payment of expenses as set forth in Section 9
hereof and except that the provisions of Section 6 hereof shall not terminate
and shall remain in effect.

         (d)      Nothing contained herein shall relieve a defaulting Initial
Purchaser of any liability it may have to the Company, the Guarantor or any
non-defaulting Initial Purchaser for damages caused by its default.

         9.       Payment of Expenses. (a) Whether or not the transactions
contemplated by this Agreement are consummated or this Agreement is terminated,
the Company and the Guarantor jointly and severally agree to pay or cause to be
paid all costs and expenses incident to the performance of their respective
obligations hereunder, including without limitation, (i) the costs incident to
the authorization, issuance, sale, preparation and delivery of the Securities
and any taxes payable in that connection; (ii) the costs incident to the
preparation and printing of the Preliminary Offering Memorandum and the Offering
Memorandum (including any amendment or supplement thereto) and the distribution
thereof; (iii) the costs of reproducing and distributing each of the Transaction
Documents; (iv) the fees and expenses of the Company's and the Guarantor's
counsel and independent accountants; (v) the fees and expenses incurred in
connection with the registration or qualification and determination of
eligibility for investment of the Securities under the laws of such
jurisdictions as the Representative may designate and the preparation, printing
and distribution of a Blue Sky Memorandum (including the related fees and
expenses of counsel for the Initial Purchasers up to $5,000 in the aggregate);
(vi) any fees charged by rating agencies for rating the Securities; (vii) the
fees and expenses of the Trustee and any paying agent (including related fees
and expenses of any counsel to such parties); (viii) all expenses and
application fees incurred in connection with the application for the inclusion
of the Securities on the PORTAL Market and the approval of the Securities for
book-entry transfer by DTC; and (ix) all expenses incurred by the Company in
connection with any "road show" presentation to potential investors.

         (b)      If (i) this Agreement is terminated pursuant to Section 7,
(ii) the Company for any reason fails to tender the Securities for delivery to
the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the
Securities for any reason permitted under this Agreement, the Company and the
Guarantor jointly and severally agrees to reimburse the Initial Purchasers for
all out-of-pocket costs and expenses (including the fees and expenses of their
counsel)

                                       21
<PAGE>

reasonably incurred by the Initial Purchasers in connection with this Agreement
and the offering contemplated hereby.

         10.      Persons Entitled to Benefit of Agreement. This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective successors and any controlling persons referred to herein, and the
affiliates, officers and directors of each Initial Purchaser referred to in
Section 6 hereof. Nothing in this Agreement is intended or shall be construed to
give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of
Securities from any Initial Purchaser shall be deemed to be a successor merely
by reason of such purchase.

         11.      Survival. The respective indemnities, rights of contribution,
representations, warranties and agreements of the Company, the Guarantor and the
Initial Purchasers contained in this Agreement or made by or on behalf of the
Company, the Guarantor or the Initial Purchasers pursuant to this Agreement or
any certificate delivered pursuant hereto shall survive the delivery of and
payment for the Securities and shall remain in full force and effect, regardless
of any termination of this Agreement or any investigation made by or on behalf
of the Company, the Guarantor or the Initial Purchasers.

         12.      Certain Defined Terms. For purposes of this Agreement, (a)
except where otherwise expressly provided, the term "affiliate" has the meaning
set forth in Rule 405 under the Securities Act; (b) the term "business day"
means any day other than a day on which banks are permitted or required to be
closed in New York City; (c) the term "Exchange Act" means the Securities
Exchange Act of 1934, as amended; and (d) the term "subsidiary" has the meaning
set forth in Rule 405 under the Securities Act.

         13.      Miscellaneous. (a) Authority of the Representative. Any action
by the Initial Purchasers hereunder may be taken by J.P. Morgan Securities Inc.
on behalf of the Initial Purchasers, and any such action taken by J.P. Morgan
Securities Inc. shall be binding upon the Initial Purchasers.

         (b)      Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or
transmitted and confirmed by any standard form of telecommunication. Notices to
the Initial Purchasers shall be given to the Representative c/o J.P. Morgan
Securities Inc., 270 Park Avenue, New York, New York 10017 (fax: (212)
270-1063); Attention: Gerry Murray. Notices to the Company and the Guarantor
shall be given to them at 4700 S. 19th Street, Lincoln, NE 68510, (fax: (402)
421-0510); Attention: Chief Financial Officer.

         (c)      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

         (d)      Counterparts. This Agreement may be signed in counterparts
(which may include counterparts delivered by any standard form of
telecommunication), each of which shall be an original and all of which together
shall constitute one and the same instrument.

                                       22
<PAGE>

         (e)      Amendments or Waivers. No amendment or waiver of any provision
of this Agreement, nor any consent or approval to any departure therefrom, shall
in any event be effective unless the same shall be in writing and signed by the
parties hereto.

         (f)      Headings. The headings herein are included for convenience of
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.

                                       23
<PAGE>

         If the foregoing is in accordance with your understanding, please
indicate your acceptance of this Agreement by signing in the space provided
below.

                                                     Very truly yours,

                                                     NEBRASKA BOOK COMPANY, INC.

                                                     By ________________________
                                                        Title:

                                                     SPECIALTY BOOKS, INC.

                                                     By ________________________
                                                        Title:

Accepted: February 27, 2004

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the
several Initial Purchasers listed
in Schedule 1 hereto.

By ___________________________
     Authorized Signatory

                                       24
<PAGE>

                                                                      Schedule 1

<TABLE>
<CAPTION>
     Initial Purchaser                                            Principal Amount
     -----------------                                            ----------------
<S>                                                               <C>
J.P. Morgan Securities Inc.                                         $  96,250,000

Citigroup Global Markets Inc.                                       $  52,500,000

Fleet Securities, Inc.                                              $  26,250,000
                                                                    -------------
                                                   Total            $ 175,000,000
</TABLE>

                                       25
<PAGE>

                                                                         ANNEX A

           Restrictions on Offers and Sales Outside the United States

         In connection with offers and sales of Securities outside the United
States:

         (a)      Each Initial Purchaser acknowledges that the Securities have
not been registered under the Securities Act and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons
except pursuant to an exemption from, or in transactions not subject to, the
registration requirements of the Securities Act.

         (b)      Each Initial Purchaser, severally and not jointly, represents,
warrants and agrees that:

                  (i)      Such Initial Purchaser has offered and sold the
         Securities, and will offer and sell the Securities, (A) as part of
         their distribution at any time and (B) otherwise until 40 days after
         the later of the commencement of the offering of the Securities and the
         Closing Date, only in accordance with Regulation S under the Securities
         Act ("Regulation S") or Rule 144A or any other available exemption from
         registration under the Securities Act.

                  (ii)     None of such Initial Purchaser or any of its
         affiliates or any other person acting on its or their behalf has
         engaged or will engage in any directed selling efforts with respect to
         the Securities, and all such persons have complied and will comply with
         the offering restrictions requirement of Regulation S.

                  (iii)    At or prior to the confirmation of sale of any
         Securities sold in reliance on Regulation S, such Initial Purchaser
         will have sent to each distributor, dealer or other person receiving a
         selling concession, fee or other remuneration that purchase Securities
         from it during the distribution compliance period a confirmation or
         notice to substantially the following effect:

                  "The Securities covered hereby have not been registered under
                  the U.S. Securities Act of 1933, as amended (the "Securities
                  Act"), and may not be offered or sold within the United States
                  or to, or for the account or benefit of, U.S. persons (i) as
                  part of their distribution at any time or (ii) otherwise until
                  40 days after the later of the commencement of the offering of
                  the Securities and the date of original issuance of the
                  Securities, except in accordance with Regulation S or Rule
                  144A or any other available exemption from registration under
                  the Securities Act. Terms used above have the meanings given
                  to them by Regulation S."

                  (iv)     Such Initial Purchaser has not and will not enter
         into any contractual arrangement with any distributor with respect to
         the distribution of the Securities, except with its affiliates or with
         the prior written consent of the Company.

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in
this Agreement have the meanings given to them by Regulation S.

                                       26
<PAGE>

         (c)      Each Initial Purchaser, severally and not jointly, represents,
warrants and agrees that:

                  (i)      it has not offered or sold and, prior to the date six
         months after the Closing Date, will not offer or sell any Securities to
         persons in the United Kingdom except to persons whose ordinary
         activities involve them in acquiring, holding, managing or disposing of
         investments (as principal or agent) for the purposes of their
         businesses or otherwise in circumstances which have not resulted and
         will not result in an offer to the public in the United Kingdom within
         the meaning of the United Kingdom Public Offers of Securities
         Regulations 1995 (as amended);

                  (ii)     it has only communicated or caused to be communicated
         and will only communicate or cause to be communicated any invitation or
         inducement to engage in investment activity (within the meaning of
         Section 21 of the United Kingdom Financial Services and Markets Act
         2000 (the "FSMA")) received by it in connection with the issue or sale
         of any Securities in circumstances in which Section 21(1) of the FSMA
         does not apply to the Company or the Guarantor; and

                  (iii)    it has complied and will comply with all applicable
         provisions of the FSMA with respect to anything done by it in relation
         to the Securities in, from or otherwise involving the United Kingdom.

         (d)      Each Initial Purchaser acknowledges that no action has been or
will be taken by the Company that would permit a public offering of the
Securities, or possession or distribution of the Preliminary Offering
Memorandum, the Offering Memorandum or any other offering or publicity material
relating to the Securities, in any country or jurisdiction where action for that
purpose is required.

                                       27
<PAGE>

                                                                         Annex B

     [Form of Opinion of Bingham McCutchen LLP, counsel to the Company, and
    Morris, Laing, Evans, Brock & Kennedy, Chartered, special Kansas counsel
                                 to the Company]

         (a) The Company and the Guarantor have been duly organized and are
validly existing and in good standing under the laws of their respective
jurisdictions of organization, are duly qualified to do business and are in good
standing in each jurisdiction in which their respective ownership or lease of
property or the conduct of their respective businesses requires such
qualification, and have all power and authority necessary to own or hold their
respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified or have such power or authority
would not, individually or in the aggregate, have a Material Adverse Effect.

         (b) The Company and Holdings have an authorized capitalization as set
forth in the Offering Memorandum under the heading "Capitalization"; and all the
outstanding shares of capital stock or other equity interests of each subsidiary
of the Company have been duly and validly authorized and issued, are fully paid
and non-assessable and are owned directly or indirectly by the Company, free and
clear of any lien, charge, encumbrance, security interest, restriction on voting
or transfer or any other claim of any third party; and the capital stock of the
Company and Holdings will conform in all material respects to the description
thereof set forth in the Offering Memorandum.

         (c) The Company and the Guarantor have full right, power and authority
to execute and deliver each of the Transaction Documents to which each is a
party and to perform their respective obligations thereunder; and all action
required to be taken for the due and proper authorization, execution and
delivery of each of the Transaction Documents and the consummation of the
transactions contemplated thereby has been duly and validly taken.

         (d) The Indenture has been duly authorized, executed and delivered by
the Company and the Guarantor and, assuming due execution and delivery thereof
by the Trustee, constitutes a valid and legally binding agreement of the Company
and the Guarantor enforceable against the Company and the Guarantor in
accordance with its terms, subject to the Enforceability Exceptions; and the
Indenture conforms in all material respects with the requirements of the Trust
Indenture Act and the rules and regulations of the Commission applicable to an
indenture that is qualified thereunder.

         (e) The Securities have been duly authorized, executed and delivered by
the Company and, when duly authenticated as provided in the Indenture and paid
for as provided in this Agreement, will be duly and validly issued and
outstanding and will constitute valid and legally binding obligations of the
Company enforceable against the Company in accordance with their terms, subject
to the Enforceability Exceptions, and will be entitled to the benefits of the
Indenture; and the Guarantee has been duly authorized by the Guarantor and, when
the Securities have been duly executed, authenticated, issued and delivered as
provided in the Indenture and paid for as provided in this Agreement, will be
valid and legally binding obligations of the Guarantor, enforceable against the
Guarantor in accordance with their terms, subject to the Enforceability
Exceptions, and will be entitled to the benefits of the Indenture.

                                       28
<PAGE>

         (f) The Exchange Securities (including the related guarantee) have been
duly authorized by the Company and the Guarantor and, when duly executed,
authenticated, issued and delivered as contemplated by the Registration Rights
Agreement, will be duly and validly issued and outstanding and will constitute
valid and legally binding obligations of the Company, as issuer, and the
Guarantor, as guarantor, enforceable against the Company and the Guarantor in
accordance with their terms, subject to the Enforceability Exceptions, and will
be entitled to the benefits of the Indenture.

         (g) This Agreement has been duly authorized, executed and delivered by
the Company and the Guarantor; and the Registration Rights Agreement has been
duly authorized, executed and delivered by the Company and the Guarantor and,
when duly executed and delivered by the other parties thereto, will constitute a
valid and legally binding agreement of the Company and the Guarantor enforceable
against the Company and the Guarantor in accordance with its terms, subject to
the Enforceability Exceptions, and except that rights to indemnity and
contribution thereunder may be limited by applicable law and public policy.

         (h) The Company and the Guarantor has the requisite corporate power and
authority to execute and deliver each of the Transaction Documents to which they
are a party and to perform their respective obligations thereunder; the
Transaction Documents have been duly authorized, executed and delivered by the
Company and the Guarantor party thereto.

         (i) Each Transaction Document conforms in all material respects to the
description thereof contained in the Preliminary Offering Memorandum and the
Offering Memorandum.

         (j) The execution, delivery and performance by the Company and the
Guarantor of each of the Transaction Documents to which each is a party, the
issuance and sale of the Securities (including the Guarantee) and compliance by
the Company and the Guarantor with the terms thereof and the consummation of the
transactions contemplated by the Transaction Documents will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company or any of its
subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which the Company or any of its subsidiaries
is a party or by which the Company or any of its subsidiaries is bound or to
which any of the property or assets of the Company or any of its subsidiaries is
subject, (ii) result in any violation of the provisions of the charter or
by-laws or similar organizational documents of the Company or any of its
subsidiaries or (iii) result in the violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or governmental
or regulatory authority, except, in the case of clauses (i) and (iii) above, for
any such conflict, breach or violation that would not, individually or in the
aggregate, have a Material Adverse Effect.

         (k) No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory
authority is required for the execution, delivery and performance by the Company
and the Guarantor of each of the Transaction Documents to which each is a party,
the issuance and sale of the Securities (including the Guarantee) and compliance
by the Company and the Guarantor with the terms thereof and the consummation of
the transactions contemplated by the Transaction Documents, except for such
consents, approvals,

                                       29
<PAGE>

authorizations, orders and registrations or qualifications as may be required
(i) under applicable state securities laws in connection with the purchase and
resale of the Securities by the Initial Purchasers, (ii) to release existing
liens in connection with the refinancing of the Existing Credit Agreement, and
(iii) with respect to the Exchange Securities (including the related guarantee)
under the Securities Act and applicable state securities laws as contemplated by
the Registration Rights Agreement.

         (l) To the best knowledge of such counsel, except as described in the
Offering Memorandum, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which the Company or
any of its subsidiaries is or may be a party or to which any property of the
Company or any of its subsidiaries is or may be the subject that, individually
or in the aggregate, if determined adversely to the Company or any of its
subsidiaries, could reasonably be expected to have a Material Adverse Effect;
and no such investigations, actions, suits or proceedings are threatened or, to
the best knowledge of such counsel, contemplated by any governmental or
regulatory authority or threatened by others.

         (m)The descriptions in the Offering Memorandum of statutes, legal,
governmental and regulatory proceedings and contracts and other documents are
accurate in all material respects; and the statements in the Offering Memorandum
under the heading "Certain Federal Income Tax Considerations", to the extent
that they constitute summaries of matters of law or regulation or legal
conclusions, fairly summarize the matters described therein in all material
respects.

         (n) Neither the Company nor any of its subsidiaries is, and after
giving effect to the offering and sale of the Securities and the application of
the proceeds thereof as described in the Offering Memorandum none of them will
be, an "investment company" within the meaning of the Investment Company Act.

         (o) Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in the Offering
Memorandum will violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board of Governors.

         (p) Assuming the accuracy of the representations, warranties and
agreements of the Company, the Guarantor and the Initial Purchasers contained in
this Agreement, it is not necessary, in connection with the issuance and sale of
the Securities to the Initial Purchasers and the offer, resale and delivery of
the Securities by the Initial Purchasers in the manner contemplated by this
Agreement and the Offering Memorandum, to register the Securities under the
Securities Act or to qualify the Indenture under the Trust Indenture Act.

         Such counsel shall also state that they have participated in
conferences with representatives of the Company and with representatives of its
independent accountants and counsel at which conferences the contents of the
Offering Memorandum and related matters were discussed and, although such
counsel assume no responsibility for the accuracy, completeness or fairness of
Offering Memorandum (except as expressly provided above), nothing has come to
the attention of such counsel to cause such counsel to believe that the Offering
Memorandum, as of its date and the Closing Date, contained or contains any
untrue statement of a material fact or omitted or omits to state a material fact
necessary to make the

                                       30
<PAGE>

statements therein, in the light of the circumstances under which they were
made, not misleading (other than, in each case, the financial statements and
other financial information contained or incorporated by reference therein, as
to which such counsel need express no belief).

         In rendering such opinion, such counsel may rely as to matters of fact
on certificates of responsible officers of the Company and the Guarantor and
public officials that are furnished to the Initial Purchasers.

         The opinions of Bingham McCutchen LLP and Morris, Laing, Evans, Brock &
Kennedy, Chartered described above shall be rendered to the Initial Purchasers
at the request of the Company and shall so state therein.

                                       31
<PAGE>

                                                                       Exhibit A

                     [Form of Registration Rights Agreement]

                                       32

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