Document:

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                                                                    EXHIBIT 10.1

                               SECURITY AGREEMENT

                              Dated March 25, 2002

                                      From

                         The Grantors referred to herein

                                   AS GRANTORS

                                       to

                              THE BANK OF NEW YORK

                              AS COLLATERAL TRUSTEE

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                          T A B L E O F C O N T E N T S

<Table>
<Caption>
SECTION                                                                                                     PAGE
<S>               <C>                                                                                        <C>
Section 1.        Grant of Security...........................................................................2

Section 2.        Security for Obligations; Limitation of Liability...........................................7

Section 3.        Grantors Remain Liable......................................................................8

Section 4.        Delivery and Control of Security Collateral.................................................8

Section 5.        Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit Rights......9

Section 6.        Representations and Warranties..............................................................9

Section 7.        Further Assurances..........................................................................13

Section 8.        As to Equipment and Inventory...............................................................14

Section 9.        Insurance...................................................................................15

Section 10.       Post-Closing Changes; Bailees; Collections on Assigned Agreements, Receivables and Related
                  Contracts...................................................................................15

Section 11.       As to Intellectual Property Collateral......................................................17

Section 12.       Voting Rights; Dividends; Etc...............................................................19

Section 13.       As to Letter-of-Credit Rights...............................................................20

Section 14.       Transfers and Other Liens; Additional Shares................................................20

Section 15.       Collateral Trustee Appointed Attorney-in-Fact...............................................20

Section 16.       Collateral Trustee May Perform..............................................................21

Section 17.       The Collateral Trustee's Duties.............................................................21

Section 18.       Remedies....................................................................................21

Section 19.       Indemnity and Expenses......................................................................24

Section 20.       Amendments; Waivers; Additional Grantors; Etc...............................................24

Section 21.       Notices; Etc................................................................................24

Section 22.       Continuing Security Interest; Assignments...................................................24

Section 23.       Release; Termination........................................................................25

Section 24.       Security Interest Absolute..................................................................25
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<Table>
<S>               <C>                                                                                         <C>
Section 25.       Execution in Counterparts...................................................................26

Section 26.       Governing Law...............................................................................26

Schedules I       -     Location, Chief Executive Office, Place Where Agreements Are Maintained, Type Of
                        Organization, Jurisdiction Of Organization And Organizational Identification Number
Schedule II       -     Pledged Equity and Pledged Debt
Schedule III      -     Locations of Equipment and Inventory
Schedule IV       -     Changes in Name, Location, Etc.
Schedule V        -     Patents, Trademarks and Trade Names and Licenses

Exhibits

Exhibit A         -     Form of Security Agreement Supplement
Exhibit B         -     Form of Securities Account Control Agreement (Securities Account)
Exhibit C         -     Form of Intellectual Property Security Agreement
Exhibit D         -     Form of Intellectual Property Security Agreement Supplement
Exhibit E         -     Form of Warehouseman's Notice
</Table>

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                               SECURITY AGREEMENT

               SECURITY AGREEMENT dated March 25, 2002 made by Avaya Inc., a
Delaware corporation (the "COMPANY"), the other Persons listed on the signature
pages hereof and the Additional Grantors (as defined in Section 20) (the
Company, the Persons so listed and the Additional Grantors being, collectively,
the "GRANTORS"), to The Bank of New York, not in its individual capacity but
solely as collateral trustee (together with any successor Collateral Trustee
appointed pursuant to Article VII of the Collateral Trust Agreement (as
hereinafter defined), the "COLLATERAL TRUSTEE") for the Secured Holders (as
defined in the Collateral Trust Agreement).

               PRELIMINARY STATEMENTS.

               (1)    The Company has entered into a 364-Day Competitive Advance
and Revolving Credit Facility Agreement dated as of August 28, 2001, as amended
by Amendment No. 1 dated as of February 8, 2002 (said Agreement, as it may
hereafter be amended, amended and restated, supplemented or otherwise modified
from time to time, being the "364-DAY CREDIT AGREEMENT") with the Lenders and
the Agent (each as defined therein).

               (2)    The Company has entered into a Five Year Competitive
Advance and Revolving Credit Facility Agreement dated as of September 25, 2000,
as amended by Amendment No. 1 dated as of August 10, 2001 and by Amendment No. 2
dated as of February 8, 2002 (said Agreement, as it may hereafter be amended,
amended and restated, supplemented or otherwise modified from time to time,
being the "FIVE YEAR CREDIT AGREEMENT", and, together with the 364-Day Credit
Agreement, the "SENIOR CREDIT FACILITIES") with the Lenders (as defined therein
and, together with the Lenders under the 364-Day Credit Agreement, the "SENIOR
LENDERS") and the Agent (as defined therein).

               (3)    The Company will issue 11.125% Senior Secured Notes due
2009 (as amended, restated, supplemented or otherwise modified, the "NOTES"),
pursuant to an Indenture, dated as of October 31, 2001, as supplemented by a
second supplemental indenture to be dated March 28, 2002 (as amended, restated,
supplemented or otherwise modified, the "INDENTURE") with The Bank of New York,
as trustee.

               (4)    Pursuant to the terms of the Senior Credit Facilities and
the Indenture, the Grantors are entering into this Agreement in order to grant
to the Collateral Trustee for its benefit and for the ratable benefit of the
Representatives (as defined in the Collateral Trust Agreement) and the Secured
Holders a security interest in the Collateral (as hereinafter defined).

               (5)    Each Grantor is the owner of the shares of stock or other
equity interests (the "INITIAL PLEDGED EQUITY") set forth opposite such
Grantor's name on and as otherwise described in Part I of Schedule II hereto and
issued by the Persons named therein and of the indebtedness (the "INITIAL
PLEDGED DEBT") set forth opposite such Grantor's name on and as otherwise
described in Part II of Schedule II hereto and issued by the obligors named
therein.

               (6)    The Collateral Trustee has agreed, pursuant to the terms
of the Collateral Trust Agreement dated as of March 25, 2002 (as amended,
restated, supplemented or otherwise modified, the "COLLATERAL TRUST AGREEMENT"),
among the Grantors and the Collateral Trustee, to

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accept the pledge and assignment, and the grant of a security interest, under
this Agreement as security for the Secured Obligations (as hereinafter defined).

               (7)    In order to induce the Senior Lenders to continue to make
advances under each of the Senior Credit Facilities, and to satisfy a condition
precedent to the issuance of the Notes, the Grantors are granting the assignment
and security interest and making the pledge and assignment contemplated by this
Agreement.

               (8)    Each Grantor will derive substantial direct and indirect
benefit from the transactions contemplated by the Senior Credit Facilities and
the Indenture.

               (9)    Terms defined in the Five Year Credit Agreement or the
Collateral Trust Agreement and not otherwise defined in this Agreement are used
in this Agreement as defined in the Five Year Credit Agreement or the Collateral
Trust Agreement, as applicable. Further, unless otherwise defined in this
Agreement or in the Five Year Credit Agreement, terms defined in Article 8 or 9
of the UCC (as defined below) and/or in the Federal Book Entry Regulations (as
defined below) are used in this Agreement as such terms are defined in such
Article 8 or 9 and/or the Federal Book Entry Regulations. "UCC" means the
Uniform Commercial Code as in effect, from time to time, in the State of New
York; PROVIDED that, if perfection or the effect of perfection or non-perfection
or the priority of any security interest in any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the State of
New York, "UCC" means the Uniform Commercial Code as in effect from time to time
in such other jurisdiction for purposes of the provisions hereof relating to
such perfection, effect of perfection or non-perfection or priority. The term
"FEDERAL BOOK ENTRY REGULATIONS" means (a) the federal regulations contained in
Subpart B ("TREASURY/RESERVE AUTOMATED DEBT ENTRY SYSTEM (TRADES)") governing
book-entry securities consisting of U.S. Treasury bonds, notes and bills and
Subpart D ("ADDITIONAL PROVISIONS") of 31 C.F.R. Part 357, 31 C.F.R. Section
357.2, Section 357.10 through Section 357.14 and Section 357.41 through Section
357.44 and (b) to the extent substantially identical to the federal regulations
referred to in clause (a) above (as in effect from time to time), the federal
regulations governing other book-entry securities.

               NOW, THEREFORE, in consideration of the premises, each Grantor
hereby agrees with the Collateral Trustee for its benefit and for the ratable
benefit of the Representatives and the Secured Holders as follows:

               SECTION 1.    GRANT OF SECURITY. Each Grantor hereby pledges to
the Collateral Trustee, for its benefit and for the ratable benefit of the
Representatives and the Secured Holders, and hereby grants to the Collateral
Trustee, for its benefit for the ratable benefit of the Representatives and the
Secured Holders, a security interest in, such Grantor's right, title and
interest in and to the following, in each case, as to each type of property
described below, whether now owned or hereafter acquired by such Grantor,
wherever located, and whether now or hereafter existing or arising
(collectively, the "COLLATERAL"):

               (a)   all equipment in all of its forms, including, without
     limitation, all machinery, tools, motor vehicles, vessels, aircraft,
     furniture and fixtures, and all parts thereof and all accessions thereto
     and all software related thereto, including, without

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     limitation, software that is imbedded in and is part of the equipment (any
     and all such property being the "EQUIPMENT");

               (b)   all inventory in all of its forms, including, without
     limitation, (i) all raw materials, work in process, finished goods and
     materials used or consumed in the manufacture, production, preparation or
     shipping thereof, (ii) goods in which such Grantor has an interest in mass
     or a joint or other interest or right of any kind (including, without
     limitation, goods in which such Grantor has an interest or right as
     consignee) and (iii) goods that are returned to or repossessed or stopped
     in transit by such Grantor), and all accessions thereto and products
     thereof and documents therefor, and all software related thereto,
     including, without limitation, software that is imbedded in and is part of
     the inventory (any and all such property being the "INVENTORY");

               (c)   all accounts (including, without limitation,
     health-care-insurance receivables), chattel paper (including, without
     limitation, tangible chattel paper and electronic chattel paper),
     instruments (including, without limitation, promissory notes), deposit
     accounts, letter-of-credit rights, general intangibles (including, without
     limitation, payment intangibles) and other obligations of any kind, whether
     or not arising out of or in connection with the sale or lease of goods or
     the rendering of services and whether or not earned by performance, and all
     rights now or hereafter existing in and to all supporting obligations and
     in and to all security agreements, mortgages, Liens, leases, letters of
     credit and other contracts securing or otherwise relating to the foregoing
     property (any and all of such accounts, chattel paper, instruments, deposit
     accounts, letter-of-credit rights, general intangibles and other
     obligations, to the extent not referred to in clause (d), (e) or (f) below,
     being the "RECEIVABLES", and any and all such supporting obligations,
     security agreements, mortgages, Liens, leases, letters of credit and other
     contracts being the "RELATED CONTRACTS");

               (d)   the following (the "SECURITY COLLATERAL"):

                    (i)   the Initial Pledged Equity and the certificates, if
          any, representing the Initial Pledged Equity, and all dividends,
          distributions, return of capital, cash, instruments and other property
          from time to time received, receivable or otherwise distributed in
          respect of or in exchange for any or all of the Initial Pledged Equity
          and all subscription warrants, rights or options issued thereon or
          with respect thereto;

                    (ii)   the Initial Pledged Debt and the instruments, if
          any, evidencing the Initial Pledged Debt, and all interest, cash,
          instruments and other property from time to time received, receivable
          or otherwise distributed in respect of or in exchange for any or all
          of the Initial Pledged Debt;

                    (iii)   all additional shares of stock and other equity
          interests of or in any issuer of the Initial Pledged Equity (other
          than any foreign Subsidiary), any other domestic Subsidiary (other
          than any Excluded Subsidiary, Avaya Finance Inc. and Avaya Technology
          Corp.) of such Grantor or any successor entity from time to time
          acquired by such Grantor in any manner (such shares and other

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          equity interests, together with the Initial Pledged Equity, being the
          "PLEDGED EQUITY"), and the certificates, if any, representing such
          additional shares or other equity interests, and all dividends,
          distributions, return of capital, cash, instruments and other property
          from time to time received, receivable or otherwise distributed in
          respect of or in exchange for any or all of such shares or other
          equity interests and all subscription warrants, rights or options
          issued thereon or with respect thereto;

                    (iv)   all additional indebtedness from time to time owed
          to such Grantor (such indebtedness, together with the Initial Pledged
          Debt, being the "PLEDGED DEBT") and the instruments, if any,
          evidencing such indebtedness, and all interest, cash, instruments and
          other property from time to time received, receivable or otherwise
          distributed in respect of or in exchange for any or all of such
          indebtedness;

                    (v)   to the extent that any of the following shall have a
          value in excess of $10,000,000 and to the extent that the aggregate
          value of all of the following exceeds $25,000,000, all investment
          property (other than equity interests in foreign Subsidiaries and
          other than equity interests in any Excluded Subsidiary) of such
          Grantor (including, without limitation, all (A) securities, whether
          certificated or uncertificated, (B) security entitlements, (C)
          securities accounts, (D) commodity contracts and (E) commodity
          accounts) in which such Grantor has now, or acquires from time to time
          hereafter, any right, title or interest in any manner, and the
          certificates or instruments, if any, representing or evidencing such
          investment property, and all dividends, distributions, return of
          capital, interest, distributions, value, cash, instruments and other
          property from time to time received, receivable or otherwise
          distributed in respect of or in exchange for any or all of such
          investment property and all subscription warrants, rights or options
          issued thereon or with respect thereto;

                    (e)   each Hedge Agreement to which such Grantor is now or
     may hereafter become a party, in each case as such agreements may be
     amended, amended and restated, supplemented or otherwise modified from time
     to time (the "ASSIGNED AGREEMENTS"), including, without limitation, (i) all
     rights of such Grantor to receive moneys due and to become due under or
     pursuant to the Assigned Agreements, (ii) all rights of such Grantor to
     receive proceeds of any insurance, indemnity, warranty or guaranty with
     respect to the Assigned Agreements, (iii) claims of such Grantor for
     damages arising out of or for breach of or default under the Assigned
     Agreements and (iv) the right of such Grantor to terminate the Assigned
     Agreements, to perform thereunder and to compel performance and otherwise
     exercise all remedies thereunder (all such Collateral being the "AGREEMENT
     COLLATERAL");

                    (f)   the following (collectively, the "ACCOUNT
     COLLATERAL"):

                          (i)   all deposit accounts and all funds from time to
          time credited thereto (including, without limitation, the proceeds of
          all Marketable Securities), all interest, dividends, distributions,
          cash, instruments and other

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          property from time to time received, receivable or otherwise
          distributed in respect of or in exchange for any or all of such funds
          and financial assets, and all certificates and instruments, if any,
          from time to time representing or evidencing each deposit account;

                         (ii)   to the extent not included in subsection
          (d) above, all promissory notes, certificates of deposit, deposit
          accounts, checks and other instruments from time to time delivered to
          or otherwise possessed by the Collateral Trustee for or on behalf of
          such Grantor, including, without limitation, those delivered or
          possessed in substitution for or in addition to any or all of the then
          existing Account Collateral; and

                         (iii)   all interest, dividends, distributions, cash,
          instruments and other property from time to time received, receivable
          or otherwise distributed in respect of or in exchange for any or all
          of the then existing Account Collateral;

                    (g)   the following (collectively, the "INTELLECTUAL
     PROPERTY COLLATERAL"):

                         (i)   all United States patent applications, utility
          models, and statutory invention registrations, including, without
          limitation, the patents and patent applications set forth in Schedule
          V hereto (as such Schedule V may be supplemented from time to time by
          supplements to this Agreement, each such supplement being in
          substantially the form of Exhibit D hereto (an "IP SECURITY AGREEMENT
          SUPPLEMENT"), executed and delivered by such Grantor to the Collateral
          Trustee from time to time), together with all reissues, divisions,
          continuations, continuations-in-part, extensions and reexaminations
          thereof, all inventions therein, all rights therein provided by
          international treaties or conventions and all improvements thereto,
          and all other rights of any kind whatsoever of such Grantor accruing
          thereunder or pertaining thereto (the "PATENTS");

                         (ii)   all United States trademarks (including, without
          limitation, service marks), certification marks, collective marks,
          trade dress, logos, domain names, product configurations, trade names,
          business names, corporate names and other source identifiers, whether
          or not registered, whether currently in use or not, including, without
          limitation, all common law rights and registrations and applications
          for registration thereof, including, without limitation, the United
          States trademark registrations and United States trademark
          applications set forth in Schedule V hereto (as such Schedule V may be
          supplemented from time to time by IP Security Agreement Supplements
          executed and delivered by such Grantor to the Collateral Trustee from
          time to time), and all other marks registered in the U.S. Patent and
          Trademark Office or in any office or agency of any State or Territory
          of the United States (but excluding any United States intent-to-use
          trademark application prior to the filing and acceptance of a
          Statement of Use or an Amendment to allege use in connection therewith
          to the extent that a valid security interest may not be taken in such
          an intent-to-use trademark application under applicable law), and all
          rights therein provided by

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          international treaties or conventions, all reissues, extensions and
          renewals of any of the foregoing, together in each case with the
          goodwill of the business connected therewith and symbolized thereby,
          and all rights corresponding thereto throughout the world and all
          other rights of any kind whatsoever of such Grantor accruing
          thereunder or pertaining thereto (the "TRADEMARKS");

                         (iii)   all United States copyrights, copyright
          applications, copyright registrations and like protections in each
          work of authorship, whether statutory or common law, whether published
          or unpublished, any renewals or extensions thereof, all copyrights of
          works based on, incorporated in, derived from, or relating to works
          covered by such copyrights, together with all rights corresponding
          thereto throughout the world and all other rights of any kind
          whatsoever of such Grantor accruing thereunder or pertaining thereto
          (the "COPYRIGHTS");

                         (iv)   all confidential and proprietary information,
          including, without limitation, know-how, trade secrets, manufacturing
          and production processes and techniques, inventions, research and
          development information, technical data, financial, marketing and
          business data, pricing and cost information, business and marketing
          plans and customer and supplier lists and information, to the extent
          that any of the foregoing exists in the United States (the "TRADE
          SECRETS");

                         (v)   all United States software, including, without
          limitation, computer software programs and databases (including,
          without limitation, source code, object code and all related
          applications and data files), firmware, and documentation and
          materials relating thereto, and all rights with respect to the
          foregoing, together with any and all warranties, service contracts,
          program services, test rights, maintenance rights, improvement rights,
          renewal rights and indemnifications and any substitutions,
          replacements, additions or model conversions of any of the foregoing
          (the "COMPUTER SOFTWARE");

                         (vi)   all license agreements, permits, authorizations
          and franchises, whether with respect to the Patents, Trademarks,
          Copyrights, Trade Secrets or Computer Software, or with respect to the
          patents, trademarks, copyrights, trade secrets, computer software or
          other proprietary right of any other Person, including, without
          limitation, the license agreements set forth in Schedule V hereto (as
          such Schedule V may be supplemented from time to time by IP Security
          Agreement Supplements executed and delivered by such Grantor to the
          Collateral Trustee from time to time) but excluding authorized dealer
          agreements, and all income, royalties and other payments now or
          hereafter due and/or payable with respect thereto, subject, in each
          case, to the terms of such license agreements, permits, authorizations
          and franchises, (the "LICENSES"); and

                         (vii)   any and all claims for damages for past,
          present and future infringement, misappropriation or breach with
          respect to the Patents, Trademarks, Copyrights, Trade Secrets,
          Computer Software or Licenses, with the right, but not

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          the obligation, to sue for and collect, or otherwise recover, such
          damages ("INTELLECTUAL PROPERTY CLAIMS");

                    (h)   all books and records (including, without limitation,
          customer lists, credit files, computer programs, software, printouts
          and other computer materials and records) of such Grantor pertaining
          to any of the Collateral; and

                    (i)   all proceeds of, collateral for, and supporting
          obligations relating to, any and all of the Collateral (including,
          without limitation, proceeds, collateral and supporting obligations
          that constitute property of the types described in clauses (a) through
          (h) of this Section 1 and this clause (i)) and, to the extent not
          otherwise included, all (A) payments under insurance (whether or not
          the Collateral Trustee is the loss payee thereof), or any indemnity,
          warranty or guaranty, payable by reason of loss or damage to or
          otherwise with respect to any of the foregoing Collateral and (B)
          cash;

         PROVIDED, that (i) Equipment shall not include any aircraft that is the
         subject of a sale and leaseback or other financing lease transaction,
         (ii) with respect to the security interest granted by each Grantor, any
         Equity Interest held by any Grantor in any Subsidiary that is not a
         domestic Subsidiary (other than Avaya (Gibraltar) Investments Limited,
         a corporation organized under the laws of Gibraltar, and Avaya
         International Enterprises Limited, a corporation organized under the
         laws of the Republic of Ireland) shall not be included, (iii)
         Intellectual Property Collateral shall not include any right to sell,
         license or transfer to Avaya International Enterprises Limited or an
         Subsidiary thereof economic or beneficial rights to utilize outside the
         United States and Canada any Patents, Trademarks, Copyrights, Trade
         Secrets, Computer Software, Licenses or Intellectual Property Claims
         with respect thereto. Anything to the contrary notwithstanding (w)
         nothing contained in this Agreement shall be construed as granting a
         Lien on any real property of any Grantor, (x) no Grantor shall grant,
         pledge or otherwise transfer any interest in any property or rights
         therein that would give rise to an income inclusion pursuant to Section
         956 of the Code, (y) the pledge, security interest and lien granted in
         this Section 1 shall be released in certain of the Collateral as and to
         the extent set forth in the Receivables Intercreditor Agreement, at
         which time such property shall no longer constitute Collateral and (z)
         nothing in this Agreement shall prohibit the sale, license or transfer
         of economic or beneficial rights of Intellectual Property Collateral
         among Grantors or the dissolution of Avaya (Gibraltar) Investments
         Limited.

               SECTION 2.    SECURITY FOR OBLIGATIONS; LIMITATION OF LIABILITY.
(a) This Agreement secures, in the case of each Grantor, the payment of all of
the Secured Obligations (as defined in the Collateral Trust Agreement) of itself
and each other Grantor. Without limiting the generality of the foregoing, this
Agreement secures, as to each Grantor, the payment of all amounts that
constitute part of the Secured Obligations and would be owed by any Grantor to
any Secured Holder under the Secured Agreements but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving a Grantor.

               (b)     Each Grantor, and by its acceptance of this Agreement,
the Collateral Trustee, each Representative and each Secured Holder, hereby
confirms that it is the intention of

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all such Persons that this Agreement and the obligations of each Grantor
hereunder not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law (as hereinafter defined), the Uniform Fraudulent Conveyance Act,
the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law
to the extent applicable to this Agreement and the obligations of each Grantor
hereunder. To effectuate the foregoing intention, the Collateral Trustee, the
Representatives, the Secured Holders and the Grantors hereby irrevocably agree
that the Secured Obligations of each Grantor under this Agreement at any time
shall be limited to the maximum amount as will result in the Secured Obligations
of such Grantor under this Agreement not constituting a fraudulent transfer or
conveyance for purposes of Bankruptcy Law. For purposes hereof, "BANKRUPTCY LAW"
means any proceeding of the type referred to in Section 6(g) or (h) of the Five
Year Credit Agreement or Title 11, U.S. Code, or any similar foreign, federal or
state law for the relief of debtors.

               SECTION 3.    GRANTORS REMAIN LIABLE. Anything herein to the
contrary notwithstanding, (a) each Grantor shall remain liable under the
contracts and agreements included in such Grantor's Collateral to the extent set
forth therein to perform all of its duties and obligations thereunder to the
same extent as if this Agreement had not been executed, (b) the exercise by the
Collateral Trustee of any of the rights hereunder shall not release any Grantor
from any of its duties or obligations under the contracts and agreements
included in the Collateral and (c) none of the Collateral Trustee, any
Representative or any Secured Holder shall have any obligation or liability
under the contracts and agreements included in the Collateral by reason of this
Agreement or any other Collateral Document, nor shall any of the Collateral
Trustee, any Representative or any Secured Holder be obligated to perform any of
the obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

               SECTION 4.    DELIVERY AND CONTROL OF SECURITY COLLATERAL.
(a) All certificates or instruments representing or evidencing Security
Collateral shall be delivered to and held by or on behalf of the Collateral
Trustee pursuant hereto and shall be in suitable form for transfer by delivery,
or shall be accompanied by duly executed instruments of transfer or assignment
in blank, all in form and substance satisfactory to the Collateral Trustee. The
Collateral Trustee shall have the right, upon the occurrence and during the
continuance of an Event of Default, to transfer to or to register in the name of
the Collateral Trustee or any of its nominees any or all of the Security
Collateral, subject only to the revocable rights specified in Section 12(a).

               (b)     With respect to any Security Collateral in which any
Grantor has any right, title or interest and that constitutes an uncertificated
security, such Grantor will use its commercial good faith efforts to cause the
issuer thereof to agree in an authenticated record with such Grantor and the
Collateral Trustee that upon receipt by such issuer of a certificate from the
Collateral Trustee to the effect that an Actionable Default has occurred and is
continuing such issuer will comply with instructions with respect to such
security originated by the Collateral Trustee without further consent of such
Grantor, such authenticated record to be in substantially the form of Exhibit C
hereto or otherwise in form and substance reasonably satisfactory to the
Collateral Trustee.

               (c)     With respect to any Security Collateral in which any
Grantor has any right, title or interest and that constitutes a security
entitlement in which the Collateral Trustee is

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not the entitlement holder, such Grantor will use its commercial good faith
efforts to cause the securities intermediary with respect to such security
entitlement to agree in an authenticated record with such Grantor and the
Collateral Trustee that such securities intermediary will comply with
entitlement orders (that is, notifications communicated to such securities
intermediary directing transfer or redemption of the financial asset to which
such Grantor has a security entitlement) originated by the Collateral Trustee
without further consent of such Grantor, such authenticated record to be in
substantially the form of Exhibit C hereto or otherwise in form and substance
reasonably satisfactory to the Collateral Trustee (such agreement being a
"SECURITIES ACCOUNT CONTROL AGREEMENT").

               (d)     No Grantor will change or add any securities intermediary
that maintains any securities account in which any of the Collateral is credited
or carried, or change or add any such securities account, in each case without
first complying with the above provisions of this Section 4 in order to perfect
the security interest granted hereunder in such Collateral.

               SECTION 5.    MAINTAINING ELECTRONIC CHATTEL PAPER, TRANSFERABLE
RECORDS AND LETTER-OF-CREDIT RIGHTS. So long as any Secured Obligation of any
Grantor shall remain unpaid:

               (a)     Each Grantor will maintain all (i) electronic chattel
paper so that the Collateral Trustee has control of the electronic chattel paper
in the manner specified in Section 9-105 of the UCC and (ii) all transferable
records so that the Collateral Trustee has control of the transferable records
in the manner specified in Section 16 of the Uniform Electronic Transactions
Act, as in effect in the jurisdiction governing such transferable record
("UETA"); and

               (b)     Each Grantor will maintain all letter-of-credit rights
assigned to the Collateral Trustee so that the Collateral Trustee, to the extent
required by Section 12(b), has control of the letter-of-credit rights in the
manner specified in Section 9-107 of the UCC.

               SECTION 6.    REPRESENTATIONS AND WARRANTIES. Each Grantor
represents and warrants as follows:

                    (a)     Such Grantor's exact legal name, as defined in
     Section 9-503(a) of the UCC, is correctly set forth in Schedule I hereto.
     Such Grantor is located (within the meaning of Section 9-307 of the UCC)
     and has its chief executive office, and the office in which it maintains
     the original copies of each Assigned Agreement and Related Contract to
     which such Grantor is a party and all originals of all chattel paper that
     evidence Receivables of such Grantor, in the state or jurisdiction set
     forth in Schedule I hereto. The information set forth in Schedule I hereto
     with respect to such Grantor is true and accurate in all respects. Such
     Grantor has not previously changed its name, location, chief executive
     office, place where it maintains its agreements, type of organization,
     jurisdiction of organization or organizational identification number from
     those set forth in Schedule I hereto except as disclosed in Schedule IV
     hereto.

                    (b)     All of the Equipment and Inventory of such Grantor
     are located at the places specified therefor in Schedule III hereto, as
     such Schedule III may be amended from time to time pursuant to
     Section 8(a). Until July 1, 2001, such Grantor had not

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     previously changed the location of its Equipment and Inventory except as
     set forth in Schedule IV hereto. All Security Collateral consisting of
     certificated securities and instruments shall have been delivered to the
     Collateral Trustee no later than March 28, 2002. Other than Receivables or
     Agreement Collateral having an aggregate face amount of not more than
     $5,000,000, none of the Receivables or Agreement Collateral is evidenced by
     a promissory note or other instrument that will not have been delivered to
     the Collateral Trustee on or prior to March 28, 2002.

                    (c)     Such Grantor is the legal and beneficial owner of
     the Collateral of such Grantor free and clear of any Lien, claim, option or
     right of others, except for certain beneficial and economic rights to the
     Intellectual Property Collateral owned by Avaya International Enterprises
     Limited or any Subsidiary thereof and for the security interest created
     under this Agreement or permitted under the Senior Credit Facilities. No
     effective financing statement or other instrument similar in effect
     covering all or any part of such Collateral or listing such Grantor or any
     trade name of such Grantor as debtor is on file in any recording office,
     except such as may have been filed in favor of the Collateral Trustee
     relating to the Collateral Documents or as otherwise permitted under the
     Senior Credit Facilities. Such Grantor has only the trade names listed on
     Schedule V hereto.

                    (d)     Such Grantor has exclusive possession and control of
     the Equipment and Inventory other than (x) Inventory stored at any leased
     premises or warehouse and (y) Equipment having a value not more than
     $5,000,000 that is used by suppliers in the productions of Inventory of the
     Company and its Subsidiaries. With respect to the Inventory stored at the
     leased premises of Celestica Corporation, a landlord's or warehouseman's
     agreement, in substantially the form of Exhibit E shall be in effect by no
     later than March 28, 2002. In the case of Equipment and Inventory located
     on leased premises or in warehouses, no lessor or warehouseman of any
     premises or warehouse upon or in which such Equipment or Inventory is
     located has (i) issued any warehouse receipt or other receipt in the nature
     of a warehouse receipt in respect of any Equipment or Inventory, (ii)
     issued any document for any of such Grantor's Equipment or Inventory, (iii)
     received notification of any secured party's interest (other than the
     security interest granted hereunder) in such Grantor's Equipment or
     Inventory or (iv) any Lien, claim or charge (based on contract, statute or
     otherwise) on such Equipment and Inventory.

                    (e)     The Pledged Equity of each Subsidiary pledged by
     such Grantor hereunder has been duly authorized and validly issued and is
     fully paid and non-assessable. The Pledged Debt of each Subsidiary pledged
     by such Grantor hereunder has been duly authorized, authenticated or issued
     and delivered, is the legal, valid and binding obligation of the issuers
     thereof, is evidenced by one or more promissory notes (which notes shall
     have been delivered to the Collateral Trustee on or prior to March 28,
     2002) and, as of the date hereof, is not in default.

                    (f)     The Initial Pledged Equity pledged by such Grantor
     constitutes the percentage of the issued and outstanding shares of stock or
     equity interest of the issuers thereof indicated on Schedule II hereto. The
     Initial Pledged Debt constitutes all of the

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     outstanding indebtedness owed to such Grantor by the issuers thereof and is
     outstanding in the principal amount indicated on Schedule II hereto.

                    (g)     All of the Security Collateral owned by such Grantor
     is listed on Schedule II hereto.

                    (h)     To the knowledge of such Grantor, the Assigned
     Agreements to which such Grantor is a party have been duly authorized,
     executed and delivered by all parties thereto, have not been amended,
     amended and restated, supplemented or otherwise modified, are in full force
     and effect and are binding upon and enforceable against all parties thereto
     in accordance with their terms. To the knowledge of such Grantor, as of the
     date hereof there exists no default under any Assigned Agreement to which
     such Grantor is a party by any party thereto.

                    (i)     Upon the filing of a financing statement with the
     Secretary of State of the jurisdiction in which such Grantor is organized,
     which filing shall be made no later than April 8, 2002, all filings and
     other actions (including, without limitation, (A) actions necessary to
     obtain control of Collateral as provided in Sections 9-104, 9-105, 9-106
     and 9-107 of the UCC and Section 16 of UETA and (B) actions necessary to
     perfect the Collateral Trustee's security interest with respect to
     Collateral evidenced by a certificate of ownership) necessary to perfect
     the security interest in the Collateral of such Grantor created under this
     Agreement will have been duly made or taken and will be in full force and
     effect, and this Agreement creates in favor of the Collateral Trustee for
     the benefit of the Representatives and the Secured Holders a valid and,
     together with such filings and other actions and except as otherwise
     permitted under the Senior Credit Facilities, perfected first priority
     security interest in the Collateral of such Grantor, securing the payment
     of the Secured Obligations except (i) Liens permitted under the Senior
     Credit Facilities, (ii) to the extent that any Collateral consists of any
     instrument, Security Collateral, letter of credit or chattel paper that has
     not been delivered to the Collateral Agent (it being understood and agreed
     that the failure of the Collateral Agent to take possession of any of the
     foregoing shall not impair in any respect the perfection of the security
     interest hereunder in such instrument or Security Collateral to the extent
     perfected by filing), (iii) with respect to Collateral located outside the
     United States with respect to which the Collateral Trustee has not
     perfected its security interest therein under applicable foreign law, (iv)
     with respect to any investment property (as defined in Section 9-102 of the
     UCC) with respect to which the Collateral Trustee has not obtained
     "control" (within the meaning of the applicable UCC), to the extent that
     the Collateral Trustee does not have such "control", (v) with respect to
     any Intellectual Property, to the extent that such Intellectual Property is
     not listed in a filing made pursuant to this Agreement with the U.S. Patent
     and Trademark Office or the U.S. Copyright Office, as applicable (it being
     understood and agreed that the failure to list any such Intellectual
     Property in any such filing with the U.S. Patent and Trademark Office or
     the U.S. Copyright Office shall not impair in any respect the perfection of
     the security interest hereunder in general intangibles as defined in the
     UCC), (vi) with respect to motor vehicles, the delivery of certificates of
     title with respect thereto, (vii) with respect to any Deposit Accounts
     located in a jurisdiction which would require actions other than filings
     under the applicable UCC, to the extent that such other actions have not
     been taken and (viii) to the extent applicable

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     law does not permit the creation or perfection of a security interest to be
     perfected by the filing of a financing statement under the UCC or a filing
     with the U.S. Patent and Trademark Office or the U.S. Copyright Office.

                    (j)     No authorization or approval or other action by,
     and no notice to or filing with, any governmental authority or regulatory
     body or any other third party is or will be required for (i) the grant by
     such Grantor of the assignment, pledge and security interest granted
     hereunder or for the execution, delivery or performance of this Agreement
     by such Grantor, (ii) the perfection or maintenance of the assignment,
     pledge and security interest created hereunder (including, other than with
     respect to the Receivables, the first priority nature of such assignment,
     pledge or security interest), except for the filing of financing and
     continuation statements under the UCC, which financing statements will,
     upon filing, have been duly filed and will be in full force and effect, the
     recordation of the Intellectual Property Security Agreements referred to in
     Section 11(f) with the U.S. Patent and Trademark Office and the U.S.
     Copyright Office, and the actions described in Section 4 with respect to
     Collateral, or (iii) the exercise by the Collateral Trustee of its voting
     or other rights provided for in this Agreement or the remedies in respect
     of the Collateral pursuant to this Agreement, except (A) with respect to
     motor vehicle, the delivery of certificates of title, (B) with respect to
     any Collateral to the extent applicable law does not permit the creation or
     perfection of a security interest to be perfected by the filing of a
     financing statement under the UCC or a filing in the U.S. Patent and
     Trademark Office or the U.S. Copyright Office and (C) as may be required in
     connection with the disposition of any portion of the Collateral by laws
     affecting the offering and sale of securities generally.

                    (k)     The Inventory that has been produced or distributed
     by such Grantor has been produced in compliance with all requirements of
     applicable law, including, without limitation, the Fair Labor Standards
     Act.

                    (l)     As to itself and its Intellectual Property
     Collateral:

                         (i)     As of the date hereof, such Grantor has
          received no written notice that the operation of such Grantor's
          business as currently conducted and the use of the Intellectual
          Property Collateral in connection therewith conflict with, infringe,
          misappropriate, dilute or otherwise violate the intellectual property
          rights of any third party the result of which would be reasonable
          likely to have a Material Adverse Effect.

                         (ii)     The Intellectual Property Collateral set forth
          on Schedule V hereto includes all of the material patents, patent
          applications, domain names, trademark registrations and applications
          and Licenses owned as of the date hereof by such Grantor.

                         (iii)     As of the date hereof, the Intellectual
          Property Collateral is subsisting and has not been adjudged invalid or
          unenforceable in whole or part, and to the best of such Grantor's
          knowledge, is valid and enforceable, except to the extent such
          invalidity or unenforceability would not be reasonable likely to

<Page>

          have a Material Adverse Effect. As of the date hereof, such Grantor is
          not aware of any uses of any material item of Intellectual Property
          Collateral that could be expected to lead to such item becoming
          invalid or unenforceable the result of which would be reasonable
          likely to have a Material Adverse Effect.

                         (iv)     As of April 8, 2002, such Grantor will have
          made or performed all filings, recordings and other acts and will have
          paid all required fees and taxes to maintain and protect its interest
          in each material item of Intellectual Property Collateral in full
          force and effect, and to protect and maintain its interest therein
          including, without limitation, recordations of any of its interests in
          the Patents and Trademarks with the U.S. Patent and Trademark Office,
          and recordation of any of its interests in the Copyrights with the
          U.S. Copyright Office.

                         (v)     The consummation of the transactions
          contemplated by the Transaction Documents will not result in the
          termination or impairment of any material Intellectual Property
          Collateral.

                         (vi)     To the knowledge of such Grantor, each
          material License to which such Grantor is a party has been duly
          authorized, executed and delivered by all parties thereto, and as of
          the date hereof have not been amended, amended and restated,
          supplemented or otherwise modified, is in full force and effect and is
          binding upon and enforceable against all parties thereto in accordance
          with its terms. To the knowledge of such Grantor, as of the date
          hereof there exists no default under any material License to which
          such Grantor is a party by any party thereto.

                         (vii)     To the best of such Grantor's knowledge, as
          of the date hereof none of the material Trade Secrets of such Grantor
          has been used, divulged, disclosed or appropriated to the detriment of
          such Grantor for the benefit of any other Person other than such
          Grantor the result of which would be reasonably likely to have a
          Material Adverse Effect.

                         (viii)     As of the date hereof, no Grantor material
          Intellectual Property Collateral is subject to any outstanding
          consent, settlement, order, decree, injunction, judgment or ruling
          restricting the use thereof or that would impair the validity or
          enforceability thereof which would be reasonably likely to have a
          Material Adverse Effect.

               SECTION 7.    FURTHER ASSURANCES. (a) Each Grantor agrees that
from time to time during the Security Period, at the expense of such Grantor,
such Grantor will promptly execute and deliver, or otherwise authenticate, all
further instruments and documents, and take all further action that may be
necessary or desirable, or that the Collateral Trustee may request, in order to
perfect and protect any pledge or security interest granted or purported to be
granted by such Grantor hereunder or to enable the Collateral Trustee to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral of such Grantor. Without limiting the generality of the foregoing,
each Grantor will promptly with respect to Collateral of such

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Grantor: (i) upon the occurrence of an Actionable Default, mark conspicuously
each document included in Inventory, each chattel paper included in Receivables,
each Related Contract, each Assigned Agreement and, at the request of the
Collateral Trustee, each of its records pertaining to such Collateral with a
legend, in form and substance satisfactory to the Collateral Trustee, indicating
that such document, chattel paper, Related Contract, Assigned Agreement or
Collateral is subject to the security interest granted hereby; (ii) if any such
Collateral shall be evidenced by promissory notes or other instruments or
chattel papers in excess of $5,000,000 in the aggregate, deliver and pledge to
the Collateral Trustee hereunder such notes or instruments or chattel paper duly
indorsed and accompanied by duly executed instruments of transfer or assignment,
all in form and substance satisfactory to the Collateral Trustee; (iii) execute
or authenticate and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary
or desirable, or as the Collateral Trustee may request, in order to perfect and
preserve the security interest granted or purported to be granted by such
Grantor hereunder; (iv) deliver and pledge to the Collateral Trustee for its
benefit and for benefit of the Representatives and the Secured Holders
certificates representing Security Collateral that constitutes certificated
securities, accompanied by undated stock or bond powers executed in blank; (v)
upon the occurrence of an Event of Default, take all action necessary to ensure
that the Collateral Trustee has control of Collateral consisting of deposit
accounts, electronic chattel paper, investment property, letter-of-credit rights
and transferable records as provided in Sections 9-105, 9-106 and 9-107 of the
UCC and in Section 16 of UETA; (vi) upon the occurrence of an Actionable
Default, take all action necessary to ensure that the Collateral Trustee has
control of Collateral consisting of deposit accounts as provided in Section
9-104 of the UCC; (vii) at the request of the Collateral Trustee upon the
occurrence of an Event of Default, take all action to ensure that the Collateral
Trustee's security interest is noted on any certificate of ownership related to
any Collateral evidenced by a certificate of ownership; and (viii) deliver to
the Collateral Trustee evidence that all other action that the Collateral
Trustee may deem reasonably necessary or desirable in order to perfect and
protect the security interest created by such Grantor under this Agreement has
been taken.

               (b)     Each Grantor hereby authorizes the Collateral Trustee to
file one or more financing or continuation statements, and amendments thereto,
including, without limitation, one or more financing statements indicating that
such financing statements cover all personal property (or words of similar
effect) of such Grantor, in each case without the signature of such Grantor. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Collateral or any part thereof shall be sufficient as a financing
statement where permitted by law. Each Grantor ratifies its authorization for
the Collateral Trustee to have filed such financing statements, continuation
statements or amendments filed prior to the date hereof.

               (c)     Each Grantor will furnish to the Collateral Trustee from
time to time statements and schedules further identifying and describing the
Collateral of such Grantor and such other reports in connection with such
Collateral as the Collateral Trustee may reasonably request, all in reasonable
detail.

               SECTION 8.    AS TO EQUIPMENT AND INVENTORY. (a) Each Grantor
will keep the Equipment and Inventory of such Grantor (other than Inventory sold
in the ordinary course of business) at the places therefor specified in Section
6(b) or, upon 30 days' prior written notice to the Collateral Trustee, at such
other places designated by the Grantor in such notice. Upon the

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giving of such notice, Schedule III shall be automatically amended to add any
new locations specified in the notice.

               (b)     Each Grantor will promptly furnish to the Collateral
Trustee a statement respecting any loss or damage exceeding $5,000,000 to any of
the Equipment or Inventory of such Grantor.

               SECTION 9.    INSURANCE. (a) Each Grantor will, at its own
expense, maintain insurance with respect to the Equipment and Inventory of such
Grantor as required by the Senior Credit Facilities. Each policy of each Grantor
for liability insurance shall provide for all losses to be paid on behalf of the
Collateral Trustee and such Grantor as their interests may appear, and each
policy for property damage insurance shall provide for all losses (except for
losses of less than $5,000,000 per occurrence) to be paid directly to the
Collateral Trustee, PROVIDED that so long as no Actionable Default shall have
occurred and be continuing, any such proceeds received by the Collateral Trustee
shall promptly be paid to the applicable Grantor. Each such policy shall in
addition (i) name such Grantor and the Collateral Trustee as insured parties
thereunder (without any representation or warranty by or obligation upon the
Collateral Trustee) as their interests may appear, (ii) contain the agreement by
the insurer that any loss thereunder shall be payable to the Collateral Trustee
notwithstanding any action, inaction or breach of representation or warranty by
such Grantor, (iii) provide that there shall be no recourse against the
Collateral Trustee for payment of premiums or other amounts with respect thereto
and (iv) provide that at least 10 days' prior written notice of cancellation or
of lapse shall be given to the Collateral Trustee by the insurer. Each Grantor
will, if so requested by the Collateral Trustee, deliver to the Collateral
Trustee original or duplicate policies of such insurance and, as often as the
Collateral Trustee may reasonably request, a report of a reputable insurance
broker with respect to such insurance.

               (b)     Reimbursement under any liability insurance maintained by
any Grantor pursuant to this Section 9 may be paid directly to the Person who
shall have incurred liability covered by such insurance.

               (c)     So long as no Actionable Default shall have occurred and
be continuing, all insurance payments received by the Collateral Trustee in
connection with any loss, damage or destruction of any Inventory or Equipment
will be released by the Collateral Trustee to the applicable Grantor. Upon the
occurrence and during the continuance of any Actionable Default, all insurance
payments in respect of such Equipment or Inventory shall be paid to the
Collateral Trustee and shall be applied as specified in the Collateral Trust
Agreement.

               (d)     Notwithstanding the foregoing, the provisions of this
Section 9 shall be applicable only during the Security Period.

               SECTION 10.    POST-CLOSING CHANGES; BAILEES; COLLECTIONS ON
ASSIGNED AGREEMENTS, RECEIVABLES AND RELATED CONTRACTS. (a) No Grantor will
change its name, type of organization, jurisdiction of organization,
organizational identification number or location from those set forth in Section
6(a) of this Agreement without first giving at least 30 days' prior written
notice to the Collateral Trustee and taking all action required by the
Collateral Trustee for the purpose of perfecting or protecting the security
interest granted by this Agreement. No

<Page>

Grantor will change the location of the Equipment and Inventory or the place
where it keeps the originals of the Assigned Agreements and Related Contracts to
which such Grantor is a party and all originals of all chattel paper that
evidence Receivables of such Grantor from the locations therefor specified in
Sections 6(a) and 6(b) without first giving the Collateral Trustee 30 days'
prior written notice of such change. No Grantor will become bound by a security
agreement authenticated by another Person (determined as provided in Section
9-203(d) of the UCC) without giving the Collateral Trustee 30 days' prior
written notice thereof and taking all action required by the Collateral Trustee
to ensure that the perfection and first priority nature of the Collateral
Trustee's security interest in the Collateral will be maintained. Each Grantor
will hold and preserve its records relating to the Collateral, including,
without limitation, the Assigned Agreements and Related Contracts, and will
permit representatives of the Collateral Trustee at any reasonable time and from
time to time, upon reasonable prior notice, to inspect and make abstracts from
such records and other documents, PROVIDED, that unless an Event of Default
shall have occurred and is continuing, the Collateral Trustee may take such
actions only once during any fiscal quarter of any Grantor. If the Grantor does
not have an organizational identification number and later obtains one, it will
forthwith notify the Collateral Trustee of such organizational identification
number.

               (b)     Upon the occurrence of an Actionable Default, or, at any
time with respect to any material portion of Collateral transferred from the
leased premises of Celestica Corporation to a location owned or leased by a
Person other than Celestica Corporation, if any Collateral of any Grantor is at
any time in the possession or control of a warehouseman, bailee or agent, or if
the Collateral Trustee so requests such Grantor will (i) notify such
warehouseman, bailee or agent of the security interest created hereunder, (ii)
instruct such warehouseman, bailee or agent to hold all such Collateral solely
for the Collateral Trustee's account subject only to the Collateral Trustee's
instructions (which shall permit such Collateral to be removed by such Grantor
in the ordinary course of business until the Collateral Trustee notifies such
warehouseman, bailee or agent that an Actionable Default has occurred and is
continuing), (iii) use commercially reasonable efforts, to cause such
warehouseman, bailee or agent to authenticate a record acknowledging that it
holds possession of such Collateral for the Collateral Trustee's benefit and
shall act solely on the instructions of the Collateral Trustee without the
further consent of the Grantor or any other Person, and (iv) make such
authenticated record available to the Collateral Trustee.

               (c)     Except as otherwise provided in this subsection (c), each
Grantor will continue to collect, at its own expense, all amounts due or to
become due such Grantor under the Assigned Agreements, Receivables and Related
Contracts. In connection with such collections during the Security Period, such
Grantor may take (and, at the Collateral Trustee's direction after an Actionable
Default, will take) such action as such Grantor or the Collateral Trustee may
deem necessary or advisable to enforce collection of the Assigned Agreements,
Receivables and Related Contracts; PROVIDED, HOWEVER, that the Collateral
Trustee shall have the right at any time, upon the occurrence and during the
continuance of an Actionable Default and upon written notice to such Grantor of
its intention to do so, to notify the obligors under any Assigned Agreements,
Receivables and Related Contracts (the "OBLIGORS") of the assignment of such
Assigned Agreements, Receivables and Related Contracts to the Collateral Trustee
and to direct such Obligors to make payment of all amounts due or to become due
to such Grantor thereunder directly to the Collateral Trustee and, upon such
notification and at the expense of such Grantor,

<Page>

to enforce collection of any such Assigned Agreements, Receivables and Related
Contracts, to adjust, settle or compromise the amount or payment thereof, in the
same manner and to the same extent as such Grantor might have done, and to
otherwise exercise all rights with respect to such Assigned Agreements,
Receivables and Related Contracts, including, without limitation, those set
forth set forth in Section 9-607 of the UCC. After receipt by any Grantor of the
notice from the Collateral Trustee referred to in the proviso to the preceding
sentence, (i) all amounts and proceeds (including, without limitation,
instruments) received by such Grantor in respect of the Assigned Agreements,
Receivables and Related Contracts of such Grantor shall be received in trust for
the benefit of the Collateral Trustee hereunder, shall be segregated from other
funds of such Grantor and, if any Actionable Default shall have occurred and be
continuing, shall be forthwith paid over to the Collateral Trustee in the same
form as so received (with any necessary indorsement) to be applied in accordance
with the Collateral Trust Agreement and (ii) such Grantor will not adjust,
settle or compromise the amount or payment of any Receivable or amount due on
any Assigned Agreement or Related Contract, release wholly or partly any Obligor
thereof, or allow any credit or discount thereon. No Grantor will permit or
consent to the subordination of its right to payment under any of the Assigned
Agreements, Receivables and Related Contracts to any other indebtedness or
obligations of the Obligor thereof other than in the ordinary course of business
as conducted on the date hereof.

               SECTION 11.    AS TO INTELLECTUAL PROPERTY COLLATERAL. (a) With
respect to each item of its material Intellectual Property Collateral, each
Grantor agrees to take, at its expense, all reasonably necessary steps,
including, without limitation, in the U.S. Patent and Trademark Office, the U.S.
Copyright Office and any other governmental authority, to (i) maintain the
validity and enforceability of such Intellectual Property Collateral and
maintain such Intellectual Property Collateral in full force and effect, and
(ii) pursue the registration and maintenance of each patent, trademark, or
copyright registration or application, now or hereafter included in such
Intellectual Property Collateral of such Grantor, including, without limitation,
the payment of required fees and taxes, the filing of responses to office
actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright
Office or other governmental authorities, the filing of applications for renewal
or extension, the filing of affidavits under Sections 8 and 15 of the U.S.
Trademark Act, the filing of divisional, continuation, continuation-in-part,
reissue and renewal applications or extensions, the payment of maintenance fees
and the participation in interference, reexamination, opposition, cancellation,
infringement and misappropriation proceedings. No Grantor shall, without the
written consent of the Collateral Trustee, discontinue use of or otherwise
abandon any material Intellectual Property Collateral, or abandon any right to
file an application for patent, trademark, or copyright, unless such Grantor
shall have previously determined that such use or the pursuit or maintenance of
such Intellectual Property Collateral is no longer useful or desirable in the
conduct of such Grantor's business and that the loss thereof would not be
reasonably likely to have a Material Adverse Effect, in which case, such Grantor
will give prompt notice of any such abandonment to the Collateral Trustee.

               (b)     Each Grantor agrees promptly to notify the Collateral
Trustee if such Grantor becomes aware (i) that any item of material Intellectual
Property Collateral may have become abandoned, placed in the public domain,
invalid or unenforceable, or of any adverse determination or development
regarding such Grantor's ownership of any material Intellectual Property
Collateral or its right to register the same or to keep and maintain and enforce
the same, or (ii) of any adverse determination or the institution of any
proceeding (including, without

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limitation, the institution of any proceeding in the U.S. Patent and Trademark
Office or any court) regarding any item of material Intellectual Property
Collateral, in each case if the result thereof would be reasonable likely to
have a Material Adverse Effect.

               (c)     In the event that any Grantor becomes aware that any item
of material Intellectual Property Collateral is being infringed or
misappropriated by a third party in a manner that would be reasonably likely to
have a Material Adverse Effect, such Grantor shall promptly notify the
Collateral Trustee and shall take such actions, at its expense, as such Grantor
and, if an Actionable Default has occurred and is continuing, the Collateral
Trustee deems reasonable and appropriate under the circumstances to protect such
Intellectual Property Collateral, including, without limitation, suing for
infringement or misappropriation and for an injunction against such infringement
or misappropriation.

               (d)     No Grantor shall do or permit any act or knowingly omit
to do any act whereby any of its material Intellectual Property Collateral may
lapse or become invalid or unenforceable or placed in the public domain if the
result thereof would be reasonably likely to have a Material Adverse Effect.

               (e)     Each Grantor shall take all steps which it or, if an
Actionable Default has occurred and is continuing, the Collateral Trustee deems
reasonable and appropriate under the circumstances to preserve and protect each
item of its Intellectual Property Collateral, including, without limitation,
maintaining the quality of any and all products or services used or provided
under any of the Trademarks, consistent with the quality of the products and
services as of the date hereof, and taking all steps necessary to ensure that
all licensed users of any of the Trademarks use such consistent standards of
quality.

               (f)     With respect to its Intellectual Property Collateral,
each Grantor agrees to execute or otherwise authenticate an agreement, in
substantially the form set forth in Exhibit D hereto (an "INTELLECTUAL PROPERTY
SECURITY AGREEMENT"), for recording the security interest granted hereunder to
the Collateral Trustee in such Intellectual Property Collateral with the U.S.
Patent and Trademark Office, the U.S. Copyright Office and any other
governmental authorities necessary to perfect the security interest hereunder in
such Intellectual Property Collateral.

               (g)     Each Grantor agrees that, should it obtain an ownership
interest in any item of the type set forth in Section 1(g) that is not on the
date hereof a part of the Intellectual Property Collateral (the "AFTER-ACQUIRED
INTELLECTUAL PROPERTY"), (i) the provisions of this Agreement shall
automatically apply thereto, and (ii) any such After-Acquired Intellectual
Property and, in the case of trademarks, the goodwill symbolized thereby, shall
automatically become part of the Intellectual Property Collateral subject to the
terms and conditions of this Agreement with respect thereto. Each Grantor shall
give written notice to the Collateral Trustee no less frequently than once in
each six month period, identifying the After-Acquired Intellectual Property and
such Grantor shall execute and deliver to the Collateral Trustee with such
written notice, or otherwise authenticate, an IP Security Agreement Supplement
covering such After-Acquired Intellectual Property for recording such IP
Security Agreement Supplement with the U.S. Patent and Trademark Office, the
U.S. Copyright Office and any other governmental authorities necessary to
perfect the security interest hereunder in such After-Acquired Intellectual
Property.

<Page>

               SECTION 12.    VOTING RIGHTS; DIVIDENDS; ETC. (a) So long as no
Event of Default shall have occurred and be continuing:

                       (i)   Each Grantor shall be entitled to exercise any and
     all voting and other consensual rights pertaining to the Security
     Collateral of such Grantor or any part thereof for any purpose; PROVIDED
     HOWEVER, that such Grantor will not exercise or refrain from exercising any
     such right if such action would have a material adverse effect on the value
     of the Security Collateral or any part thereof.

                       (ii)  Each Grantor shall be entitled to receive and
     retain any and all dividends, interest and other distributions paid in
     respect of the Security Collateral of such Grantor if and to the extent
     that the payment thereof is not otherwise prohibited by the terms of the
     Senior Credit Facilities; PROVIDED, HOWEVER, that any and all dividends,
     interest and other distributions paid or payable other than in cash in
     respect of, and instruments and other property received, receivable or
     otherwise distributed in respect of, or in exchange for, any Security
     Collateral, shall be, and shall be forthwith delivered to the Collateral
     Trustee to hold as, Security Collateral and shall, if received by such
     Grantor, be received in trust for the benefit of the Collateral Trustee, be
     segregated from the other property or funds of such Grantor and be
     forthwith delivered to the Collateral Trustee as Security Collateral in the
     same form as so received (with any necessary indorsement).

                       (iii)   The Collateral Trustee will execute and deliver
     (or cause to be executed and delivered) to each Grantor all such proxies
     and other instruments as such Grantor may reasonably request and provide
     for the purpose of enabling such Grantor to exercise the voting and other
     rights that it is entitled to exercise pursuant to paragraph (i) above and
     to receive the dividends or interest payments that it is authorized to
     receive and retain pursuant to paragraph (ii) above.

                    (b)     Upon the occurrence and during the continuance of an
Actionable Default:

                         (i)   All rights of each Grantor (A) to exercise or
     refrain from exercising the voting and other consensual rights that it
     would otherwise be entitled to exercise pursuant to Section 12(a)(i) shall,
     upon notice to such Grantor by the Collateral Trustee, cease and (B) to
     receive the cash dividends, interest and other distributions that it would
     otherwise be authorized to receive and retain pursuant to Section 12(a)(ii)
     and to receive and retain (x) dividends and other distributions paid or
     payable in cash in respect of any Security Collateral in connection with a
     partial or total liquidation or dissolution or in connection with a
     reduction of capital, capital surplus or paid-in-surplus and (y) cash paid,
     payable or otherwise distributed in respect of principal of, or in
     redemption of, or in exchange for, any Security Collateral, shall
     automatically cease, and all such rights shall thereupon become vested in
     the Collateral Trustee, which shall thereupon have the sole right to
     exercise or refrain from exercising such voting and other consensual rights
     and to receive and hold as Security Collateral such dividends, interest and
     other distributions.

<Page>

                         (ii)   All dividends, interest and other distributions
     that are received by any Grantor contrary to the provisions of paragraph
     (i) of this Section 12(b) shall be received in trust for the benefit of the
     Collateral Trustee, shall be segregated from other funds of such Grantor
     and shall be forthwith paid over to the Collateral Trustee as Security
     Collateral in the same form as so received (with any necessary
     indorsement).

               SECTION 13.   AS TO LETTER-OF-CREDIT RIGHTS. (a) Each Grantor, by
granting a security interest in its Receivables consisting of letter-of-credit
rights to the Collateral Trustee, intends to (and hereby does) assign to the
Collateral Trustee its rights (including its contingent rights) to the proceeds
of all Related Contracts consisting of letters of credit of which it is or
hereafter becomes a beneficiary. Except to the extent that the amount of any
such letter of credit does not exceed $5,000,000, each Grantor will promptly use
its commercially reasonable efforts to cause the issuer of such letter of credit
and each nominated person (if any) with respect thereto to consent to such
assignment of the proceeds thereof and deliver written evidence of such consent
to the Collateral Trustee.

               (b)   Upon the occurrence of an Actionable Default, each Grantor
will, promptly upon request by the Collateral Trustee, (i) notify (and such
Grantor hereby authorizes the Collateral Trustee to notify) the issuer and each
nominated person with respect to each of the Related Contracts consisting of
letters of credit that the proceeds thereof have been assigned to the Collateral
Trustee hereunder and any payments due or to become due in respect thereof are
to be made directly to the Collateral Trustee or its designee and (ii) arrange
for the Collateral Trustee to become the transferee beneficiary of letter of
credit.

               SECTION 14.   TRANSFERS AND OTHER LIENS; ADDITIONAL SHARES. (a)
Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of,
or grant any option with respect to, any of the Collateral, other than sales,
assignments and other dispositions of Collateral, and options relating to
Collateral, permitted under the terms of the Senior Credit Facilities, or (ii)
create or suffer to exist any Lien upon or with respect to any of the Collateral
of such Grantor except for the pledge, assignment and security interest created
under this Agreement and Liens permitted under the Senior Credit Facilities.

               (b)   Each Grantor agrees that it will (i) cause each issuer of
the Pledged Equity pledged by such Grantor not to issue any stock or other
equity interests or other securities in addition to or in substitution for the
Pledged Equity issued by such issuer, except to such Grantor, and (ii) pledge
hereunder, immediately upon its acquisition (directly or indirectly) thereof,
any and all additional shares of stock or other equity interests or other
securities, PROVIDED HOWEVER, that, except for the pledge of 65% of the total
voting power of each of Avaya (Gibraltar) Investments Limited and Avaya
International Enterprises Limited, no shares of any foreign Subsidiary shall be
subject to such pledge.

               SECTION 15.   COLLATERAL TRUSTEE APPOINTED ATTORNEY-IN-FACT. Each
Grantor hereby irrevocably appoints the Collateral Trustee such Grantor's
attorney-in-fact, with full authority in the place and stead of such Grantor and
in the name of such Grantor or otherwise, from time to time during the Security
Period after an Actionable Default has occurred and is continuing, in the
Collateral Trustee's discretion, to take any action and to execute any

<Page>

instrument that the Collateral Trustee may deem necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation:

                    (a)   to obtain and adjust insurance required to be paid to
     the Collateral Trustee pursuant to Section 9,

                    (b)   to ask for, demand, collect, sue for, recover,
     compromise, receive and give acquittance and receipts for moneys due and to
     become due under or in respect of any of the Collateral,

                    (c)   to receive, indorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clause
     (a) or (b) above, and

                    (d)   to file any claims or take any action or institute any
     proceedings that the Collateral Trustee may deem necessary or desirable for
     the collection of any of the Collateral or otherwise to enforce compliance
     with the terms and conditions of any Assigned Agreement or the rights of
     the Collateral Trustee with respect to any of the Collateral.

               SECTION 16.   COLLATERAL TRUSTEE MAY PERFORM. If any Grantor
fails to perform any agreement contained herein, the Collateral Trustee may, as
the Collateral Trustee deems necessary to protect the security interest granted
hereunder in the Collateral or to protect the value thereof, but without any
obligation to do so and without notice, itself perform, or cause performance of,
such agreement, and the expenses of the Collateral Trustee incurred in
connection therewith shall be payable by such Grantor under Section 19.

               SECTION 17.   THE COLLATERAL TRUSTEE'S DUTIES. The powers
conferred on the Collateral Trustee hereunder are solely to protect the
Representatives and the Secured Holders' interest in the Collateral and shall
not impose any duty upon it to exercise any such powers. The duties of the
Collateral Trustee are as set forth in Article VII of the Collateral Trust
Agreement.

               SECTION 18.   REMEDIES. If any Actionable Default shall have
occurred and be continuing:

                    (a)   The Collateral Trustee may, with the consent of the
     Required Representatives, and shall, at the request of the Required
     Representatives (as provided in the Collateral Trust Agreement), exercise
     in respect of the Collateral, in addition to other rights and remedies
     provided for herein or otherwise available to it, all the rights and
     remedies of a Secured Holder upon default under the UCC (whether or not the
     UCC applies to the affected Collateral) and also may: (i) require each
     Grantor to, and each Grantor hereby agrees that it will at its expense and
     upon request of the Collateral Trustee forthwith, assemble all or part of
     the Collateral as directed by the Collateral Trustee and make it available
     to the Collateral Trustee at a place and time to be designated by the
     Collateral Trustee that is reasonably convenient to both parties; (ii)
     without notice except as specified below, sell the Collateral or any part
     thereof in one or more parcels at public or private sale, at any of the
     Collateral Trustee's offices or elsewhere, for cash, on credit or for
     future delivery, and upon such other terms as may be commercially
     reasonable; (iii) occupy any premises owned or leased by any of the
     Grantors where the Collateral or

<Page>

     any part thereof is assembled or located for a reasonable period in order
     to effectuate its rights and remedies hereunder or under law, without
     obligation to such Grantor in respect of such occupation; and (iv) exercise
     any and all rights and remedies of any of the Grantors under or in
     connection with the Collateral, or otherwise in respect of the Collateral,
     including, without limitation, (A) any and all rights of such Grantor to
     demand or otherwise require payment of any amount under, or performance of
     any provision of, the Assigned Agreements, the Receivables, the Related
     Contracts and the other Collateral, (B) withdraw, or cause or direct the
     withdrawal, of all funds with respect to the Account Collateral and (C)
     exercise all other rights and remedies with respect to the Assigned
     Agreements, the Receivables, the Related Contracts and the other
     Collateral, including, without limitation, those set forth in Section 9-607
     of the UCC. Each Grantor agrees that, to the extent notice of sale shall be
     required by law, at least ten days' notice to such Grantor of the time and
     place of any public sale or the time after which any private sale is to be
     made shall constitute reasonable notification. The Collateral Trustee shall
     not be obligated to make any sale of Collateral regardless of notice of
     sale having been given. The Collateral Trustee may adjourn any public or
     private sale from time to time by announcement at the time and place fixed
     therefor, and such sale may, without further notice, be made at the time
     and place to which it was so adjourned.

                    (b)   Any cash held by or on behalf of the Collateral
     Trustee and all cash proceeds received by or on behalf of the Collateral
     Trustee in respect of any sale of, collection from, or other realization
     upon all or any part of the Collateral may, in the discretion of the
     Collateral Trustee, be held by the Collateral Trustee as collateral for,
     and/or then or at any time thereafter applied (after payment of any amounts
     payable to the Collateral Trustee pursuant to Section 19) in whole or in
     part by the Collateral Trustee for its benefit and for the ratable benefit
     of the Representatives and the Secured Holders against, all or any part of
     the Secured Obligations, as set forth in Section 5.01 of the Collateral
     Trust Agreement.

                    (c)   All payments received by any Grantor under or in
     connection with any Assigned Agreement or otherwise in respect of the
     Collateral shall be received in trust for the benefit of the Collateral
     Trustee, shall be segregated from other funds of such Grantor and shall be
     forthwith paid over to the Collateral Trustee in the same form as so
     received (with any necessary indorsement).

                    (d)   The Collateral Trustee may, without notice to any
     Grantor except as required by law and at any time or from time to time,
     charge, set-off and otherwise apply all or any part of the Secured
     Obligations against any funds held with respect to the Account Collateral
     or in any other deposit account.

                    (e)   In the event of any sale or other disposition of any
     of the Intellectual Property Collateral of any Grantor, the goodwill of the
     business connected with and symbolized by any Trademarks subject to such
     sale or other disposition shall be included therein, and such Grantor shall
     supply to the Collateral Trustee or its designee such Grantor's know-how
     and expertise, and documents and things relating to any Intellectual
     Property Collateral subject to such sale or other disposition, and such
     Grantor's customer lists and other records and documents relating to such
     Intellectual

<Page>

     Property Collateral and to the manufacture, distribution, advertising and
     sale of products and services of such Grantor. Any sale or other
     disposition of any such Intellectual Property Collateral shall be subject
     to any Licenses (an any right granted therein) existing at the time of such
     sale or disposition.

                    (f)   If the Collateral Trustee shall determine to exercise
     its right to sell all or any of the Security Collateral of any Grantor
     pursuant to this Section 18, each Grantor agrees that, upon request of the
     Collateral Trustee, such Grantor will, at its own expense:

                         (i)   execute and deliver, and cause each issuer of
          such Security Collateral contemplated to be sold and the directors and
          officers thereof to execute and deliver, all such instruments and
          documents, and do or cause to be done all such other acts and things,
          as may be necessary or, in the opinion of the Collateral Trustee,
          advisable to register such Security Collateral under the provisions of
          the Securities Act of 1933 (as amended from time to time, the
          "SECURITIES ACT"), to cause the registration statement relating
          thereto to become effective and to remain effective for such period as
          prospectuses are required by law to be furnished and to make all
          amendments and supplements thereto and to the related prospectus that,
          in the opinion of the Collateral Trustee, 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;

                         (ii)   use its reasonable good faith efforts to qualify
          the Security Collateral under the state securities or "Blue Sky" laws
          and to obtain all necessary governmental approvals for the sale of
          such Security Collateral, as requested by the Collateral Trustee,
          PROVIDED that such Grantor shall not be required to qualify to do
          business or consent to general service of process in any such
          jurisdiction;

                         (iii)   cause each such issuer of such Security
          Collateral to make available to its security holders, as soon as
          practicable, an earnings statement that will satisfy the provisions of
          Section 11(a) of the Securities Act;

                         (iv)   provide the Collateral Trustee with such other
          information as the Collateral Trustee may reasonably require to enable
          the Collateral Trustee to effect the sale of such Security Collateral;
          and

                         (v)   do or cause to be done all such other acts and
          things as may reasonably be necessary to make such sale of such
          Security Collateral or any part thereof valid and binding and in
          compliance with applicable law.

                    (g)   The Collateral Trustee is authorized, in connection
     with any sale of the Security Collateral pursuant to this Section 18, to
     deliver or otherwise disclose to any prospective purchaser of the Security
     Collateral: (i) any registration statement or prospectus, and all
     supplements and amendments thereto, prepared pursuant to subsection (f)(i)
     above; (ii) any information and projections provided to it pursuant to

<Page>

          subsection (f)(iv) above; and (iii) any other information in its
          possession relating to such Security Collateral.

               SECTION 19.   INDEMNITY AND EXPENSES. (a) Each Grantor agrees to
indemnify the Collateral Trustee as and to the extent set forth in Section 6.06
of the Collateral Trust Agreement.

               (b)   Each Grantor will upon demand pay to the Collateral Trustee
the amount of any and all expenses, as and to the extent set forth in Section
6.03 of the Collateral Trust Agreement.

               SECTION 20.   AMENDMENTS; WAIVERS; ADDITIONAL GRANTORS; ETC.
(a) No amendment or waiver of any provision of this Agreement, and no consent to
any departure by any Grantor herefrom, shall in any event be effective unless
the same shall be in writing and signed by the Collateral Trustee, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No failure on the part of the Collateral
Trustee or any other Secured Holder to exercise, and no delay in exercising any
right hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.

               (b)   Upon the execution and delivery, or authentication, by any
Person of a security agreement supplement in substantially the form of Exhibit A
hereto (each a "SECURITY AGREEMENT SUPPLEMENT"), (i) such Person shall be
referred to as an "ADDITIONAL GRANTOR" and shall be and become a Grantor
hereunder, and each reference in this Agreement and the other Collateral
Documents to "Grantor" shall also mean and be a reference to such Additional
Grantor, and each reference in this Agreement and the other Collateral Documents
to "Collateral" shall also mean and be a reference to the Collateral of such
Additional Grantor, and (ii) the supplemental schedules I-V attached to each
Security Agreement Supplement shall be incorporated into and become a part of
and supplement Schedules I-V, respectively, hereto, and the Collateral Trustee
may attach such supplemental schedules to such Schedules; and each reference to
such Schedules shall mean and be a reference to such Schedules as supplemented
pursuant to each Security Agreement Supplement.

               SECTION 21.   NOTICES; ETC. All notices and other communications
provided for hereunder shall be in writing (including telegraphic, telecopier or
telex communication) and mailed, telegraphed, telecopied, telexed or otherwise
delivered as set forth in Section 9.03 of the Collateral Trust Agreement.
Delivery by telecopier of an executed counterpart of any amendment or waiver of
any provision of this Agreement or of any Security Agreement Supplement or
Schedule hereto shall be effective as delivery of an original executed
counterpart thereof.

               SECTION 22.   CONTINUING SECURITY INTEREST; ASSIGNMENTS. This
Agreement shall create a continuing security interest in the Collateral and
shall (a) remain in full force and effect until the earlier of the termination
of the Security Period and the payment in full in cash of the Secured
Obligations, (b) be binding upon each Grantor, its successors and assigns and
(c) inure, together with the rights and remedies of the Collateral Trustee
hereunder, to the benefit of the Representatives on behalf of themselves and on
behalf of the Secured Holders and their

<Page>

respective successors, transferees and assigns. Without limiting the generality
of the foregoing clause (c), any Secured Holder may assign or otherwise transfer
all or any portion of its rights and obligations under any Debt Agreement to any
other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Lender herein or otherwise, in each
case as provided therein.

               SECTION 23.   RELEASE; TERMINATION. (a) Upon any sale, lease,
transfer or other disposition of any item of Collateral of any Grantor in
accordance with the terms of the Collateral Documents (other than sales of
Inventory in the ordinary course of business), the applicable Grantor may
deliver to the Collateral Trustee a Notice of Partial Release (as defined in the
Collateral Trust Agreement) and, upon satisfaction of the conditions set forth
in Section 8.01 of the Collateral Trust Agreement, the security interest in such
Collateral shall automatically, without further action, be released and the
Collateral Trustee shall take such actions as are set forth in Section 8.01 of
the Collateral Trust Agreement.

               (b)   Upon the earliest of (i) the date on which all Secured
Obligations shall have been paid in full after the Maturity Date applicable to
each of the Senior Credit Facilities, (ii) the termination of the Security
Period and (iii) the date on which the aggregate of the loans and available
commitments under the Senior Credit Facilities (or any refinancing thereof)
shall be not less than $400,000,000 and the Senior Lenders (or the lenders under
such refinancing) shall have agreed that such loans and available commitments
shall not be secured by a Lien, the pledge and security interest granted hereby
shall terminate and all rights to the Collateral shall revert to the applicable
Grantor. Upon any such termination, the Collateral Trustee will, at the
applicable Grantor's expense, execute and deliver to such Grantor such documents
as such Grantor shall reasonably request to evidence such termination.

               SECTION 24.   SECURITY INTEREST ABSOLUTE. The obligations of each
Grantor under this Agreement are independent of the Secured Obligations or any
other obligations of any other Grantor under or in respect of the Secured
Agreements, and a separate action or actions may be brought and prosecuted
against each Grantor to enforce this Agreement, irrespective of whether any
action is brought against such Grantor or any other Grantor or whether such
Grantor or any other Grantor is joined in any such action or actions; provided,
that nothing contained herein shall be deemed a waiver of any Grantor's rights
to assert any defense that may be available to any Grantor subject to the
foregoing. All rights of the Collateral Trustee, the Representatives and the
Secured Holders and the pledge, assignment and security interest hereunder, and
all obligations of each Grantor hereunder, shall be irrevocable, absolute and
unconditional irrespective of, and each Grantor hereby irrevocably waives (to
the maximum extent permitted by applicable law) any defenses it may now have or
may hereafter acquire in any way relating to, any or all of the following:

               (a)   any lack of validity or enforceability of any Secured
     Agreement or any other agreement or instrument relating thereto;

               (b)   any change in the time, manner or place of payment of, or
     in any other term of, all or any of the Secured Obligations or any other
     obligations of any other Grantor under or in respect of the Secured
     Agreements or any other amendment or waiver of or any consent to any
     departure from any Secured Agreement, including, without

<Page>

     limitation, any increase in the Secured Obligations resulting from the
     extension of additional credit to any Grantor or any of its Subsidiaries or
     otherwise;

               (c)   any taking, exchange, release or non-perfection of any
     Collateral or any other collateral, or any taking, release or amendment or
     waiver of or consent to departure from any guaranty, for all or any of the
     Secured Obligations;

               (d)   any manner of application of any Collateral or any other
     collateral, or proceeds thereof, to all or any of the Secured Obligations,
     or any manner of sale or other disposition of any Collateral or any other
     collateral for all or any of the Secured Obligations or any other
     obligations of any other Grantor under or in respect of the Secured
     Agreements or any other assets of any Grantor or any of its Subsidiaries;

               (e)   any change, restructuring or termination of the corporate
     structure or existence of any Grantor or any of its Subsidiaries;

               (f)   any failure of the Collateral Trustee, any Representative
     or any Secured Holder to disclose to any Grantor any information relating
     to the business, condition (financial or otherwise), operations,
     performance, assets, nature of assets, liabilities or prospects of any
     other Grantor now or hereafter known to such party (each Grantor waiving
     any duty on the part of such parties to disclose such information);

               (g)   the failure of any other Person to execute this Agreement
     or any other Collateral Document, guaranty or agreement or the release or
     reduction of liability of any Grantor or other grantor or surety with
     respect to the Secured Obligations; or

               (h)   any other circumstance (including, without limitation, any
     statute of limitations) or any existence of or reliance on any
     representation by the Collateral Trustee, any Representative or any Secured
     Holder that might otherwise constitute a defense available to, or a
     discharge of, such Grantor or any other Grantor or a third party grantor of
     a security interest.

This Agreement shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Secured Obligations is rescinded or
must otherwise be returned by the Collateral Trustee, any Representative or any
Secured Holder or by any other Person upon the insolvency, bankruptcy or
reorganization of any Grantor or otherwise, all as though such payment had not
been made.

               SECTION 25.   EXECUTION IN COUNTERPARTS. This Agreement may be
executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page
to this Agreement by telecopier shall be effective as delivery of an original
executed counterpart of this Agreement.

               SECTION 26.   GOVERNING LAW. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.

<Page>

                    [Rest of page intentionally left blank.]

<Page>

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed
  and delivered by its officer thereunto duly authorized as of the date first
                                 above written.

ADDRESS FOR NOTICES:                      AVAYA INC.
211 Mt. Airy Road
Basking Ridge, NJ  07920
                                          By: /s/ Rhonda Seegal
                                             -----------------------------------
                                             Name: Rhonda Seegal
                                             Title: Vice President and Treasurer

ADDRESS FOR NOTICES:                      AVAYA INTERNATIONAL LLC
211 Mt. Airy Road
Basking Ridge, NJ  07920
                                          By: /s/ Justin Choi
                                             -----------------------------------
                                             Name: Justin Choi
                                             Title: Vice President

ADDRESS FOR NOTICES:                      AVAYA TECHNOLOGY CORP.
211 Mt. Airy Road
Basking Ridge, NJ  07920
                                          By: /s/ Justin Choi
                                             -----------------------------------
                                              Name: Justin Choi
                                              Title: Vice President

ADDRESS FOR NOTICES:                      Executed as a Deed by
211 Mt. Airy Road                         AVAYA (GIBRALTAR) INVESTMENTS
Basking Ridge, NJ  07920                  LIMITED, a corporation organized under
                                          the laws of Gibraltar, as Grantor, and
                                          signed by a Director and an Authorised
                                          Signatory

                                          By: /s/ Michael Nelson
                                             -----------------------------------
                                             Name: Michael Nelson
                                             Title: Director

                                          By: /s/ Christopher Jentile
                                             -----------------------------------
                                             Name: Christopher Jentile
                                             Title: Authorised Signatory

<Page>

                                          THE BANK OF NEW YORK, not in its
                                          individual capacity but solely as
                                          Collateral Trustee

                                          By: /s/ Kevin Cherin
                                             -----------------------------------
                                             Name: Kevin Cherin
                                             Title: Vice President<Page>

                                                                    EXHIBIT 10.2

                           COLLATERAL TRUST AGREEMENT

                           dated as of March 25, 2002

                                      among

                                   AVAYA INC.,
                                       and
                            The Grantors named herein
                                   as Grantors

                                       and

                              THE BANK OF NEW YORK
                              as Collateral Trustee

<Page>

                                TABLE OF CONTENTS
<Table>
<Caption>
<S>                                                                                   <C>
                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01. CERTAIN DEFINED TERMS....................................................2
SECTION 1.02. CERTAIN REFERENCES.......................................................6

                                   ARTICLE II

                 CONFIRMATION AND CREATION OF SECURITY INTERESTS

SECTION 2.01. COLLATERAL TRUST ESTATE..................................................6
SECTION 2.02. SECURITY FOR SECURED OBLIGATIONS.........................................7

                                   ARTICLE III

                               COLLATERAL ACCOUNT

SECTION 3.01. COLLATERAL ACCOUNT.......................................................7

                                   ARTICLE IV

                          ACTIONABLE DEFAULTS; REMEDIES

SECTION 4.01. ACTIONABLE DEFAULT NOTICE................................................8
SECTION 4.02. DIRECTION BY REQUIRED REPRESENTATIVES....................................9
SECTION 4.03. RIGHT TO INITIATE JUDICIAL PROCEEDINGS, ETC..............................9
SECTION 4.04. REMEDIES NOT EXCLUSIVE...................................................9
SECTION 4.05. WAIVER OF CERTAIN RIGHTS................................................10
SECTION 4.06. LIMITATION ON COLLATERAL TRUSTEE'S DUTIES IN RESPECT OF COLLATERAL......10
SECTION 4.07. LIMITATION BY LAW.......................................................11
SECTION 4.08. ABSOLUTE RIGHTS OF SECURED HOLDERS AND REPRESENTATIVES..................11
SECTION 4.09. TERMS OF SECURITY.......................................................11

                                    ARTICLE V

                             APPLICATION OF PROCEEDS

SECTION 5.01. APPLICATION OF PROCEEDS.................................................12
SECTION 5.02. APPLICATION OF WITHHELD AMOUNTS.........................................13
SECTION 5.03. RELEASE OF AMOUNTS IN COLLATERAL ACCOUNT................................14

                                   ARTICLE VI

                     AGREEMENTS WITH THE COLLATERAL TRUSTEE
</Table>

                                        i
<Page>

<Table>
<S>                                                                                   <C>
SECTION 6.01. DELIVERY OF AGREEMENTS..................................................14
SECTION 6.02. INFORMATION AS TO REPRESENTATIVES.......................................14
SECTION 6.03. COMPENSATION AND EXPENSES...............................................15
SECTION 6.04. STAMP AND OTHER SIMILAR TAXES...........................................15
SECTION 6.05. FILING FEES, EXCISE TAXES, ETC..........................................15
SECTION 6.06. INDEMNIFICATION.........................................................16
SECTION 6.07. FURTHER ASSURANCES.  Each Grantor agrees, at its own expense to
              perform its obligations under Section 7 of the Security Agreement.......16

                                   ARTICLE VII

                             THE COLLATERAL TRUSTEE

SECTION 7.01. DECLARATION OF TRUST....................................................16
SECTION 7.02. EXCULPATORY PROVISIONS..................................................16
SECTION 7.03. DELEGATION OF DUTIES....................................................17
SECTION 7.04. RELIANCE BY COLLATERAL TRUSTEE..........................................17
SECTION 7.05. LIMITATIONS ON DUTIES OF THE TRUSTEES...................................18
SECTION 7.06. MONEYS TO BE HELD IN TRUST..............................................19
SECTION 7.07. RESIGNATION AND REMOVAL OF COLLATERAL TRUSTEE...........................19
SECTION 7.08. STATUS OF SUCCESSORS TO TRUSTEE.........................................20
SECTION 7.09. MERGER OF THE COLLATERAL TRUSTEE........................................20
SECTION 7.10. ADDITIONAL CO-TRUSTEES; SEPARATE TRUSTEES...............................21
SECTION 7.11. TRUSTEES APPOINTED ATTORNEYS-IN-FACT....................................22
SECTION 7.12. ORDINARY CARE...........................................................22

                                  ARTICLE VIII

                              RELEASE OF COLLATERAL

SECTION 8.01. PARTIAL RELEASE OF COLLATERAL...........................................23
SECTION 8.02. FULL RELEASE OF COLLATERAL UPON SATISFACTION OF CERTAIN CONDITIONS......24
SECTION 8.03. EFFECT OF RELEASE OF COLLATERAL.........................................25

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.01. AMENDMENTS, SUPPLEMENTS AND WAIVERS.....................................26
SECTION 9.02. ADDITIONAL ACTIONS OF REPRESENTATIVES...................................26
SECTION 9.03. NOTICES.................................................................27
SECTION 9.04. HEADINGS................................................................28
SECTION 9.05. SEVERABILITY............................................................28
SECTION 9.06. TREATMENT OF PAYEE OR INDORSEE BY COLLATERAL TRUSTEE....................28
</Table>

                                       ii
<Page>

<Table>
<S>                                                                                   <C>
SECTION 9.07. DEALINGS WITH THE GRANTORS..............................................28
SECTION 9.08. CLAIMS..................................................................28
SECTION 9.09. BINDING EFFECT..........................................................28
SECTION 9.10. GOVERNING LAW...........................................................28
SECTION 9.11. EFFECTIVENESS...........................................................29
SECTION 9.12. REEXECUTION OF AGREEMENT................................................29
SECTION 9.13. EFFECT ON DEBT AGREEMENTS...............................................29
SECTION 9.14. COUNTERPARTS............................................................29
</Table>

                                       iii
<Page>

                           COLLATERAL TRUST AGREEMENT

             COLLATERAL TRUST AGREEMENT, dated as of March 25, 2002 (as amended,
amended and restated, supplemented or otherwise modified from time to time, this
"AGREEMENT") among AVAYA INC., a Delaware corporation (the "COMPANY"), certain
of the Company's Subsidiaries listed on the signature pages hereto (such
Subsidiaries, collectively with the Company are the "GRANTORS"), and THE BANK OF
NEW YORK, a New York banking corporation, not in its individual capacity but
solely as Collateral Trustee (together with any successor Collateral Trustee
appointed pursuant to Article 7, the "COLLATERAL TRUSTEE"), the foregoing
trustee being trustee for the Representatives and the Secured Holders (each as
hereinafter defined). Certain capitalized terms used herein are defined in
Article 1 of this Agreement.

                             PRELIMINARY STATEMENTS:

             (1)   The Company has entered into a 364-Day Competitive Advance
and Revolving Credit Facility Agreement dated as of August 28, 2001, as amended
by Amendment No. 1 dated as of February 8, 2002 (said Agreement, as it may
hereafter be amended, amended and restated, supplemented or otherwise modified
from time to time, being the "364-DAY CREDIT AGREEMENT") with the Lenders and
the Agent (each as defined therein).

             (2)   The Company has entered into a Five Year Competitive Advance
and Revolving Credit Facility Agreement dated as of September 25, 2000, as
amended by Amendment No. 1 dated as of August 10, 2001 and by Amendment No. 2
dated as of February 8, 2002 (said Agreement, as it may hereafter be amended,
amended and restated, supplemented or otherwise modified from time to time,
being the "FIVE YEAR CREDIT AGREEMENT", and, together with the 364-Day Credit
Agreement, the "SENIOR CREDIT FACILITIES") with the Lenders (as defined therein
and, together with the Lenders under the 364-Day Credit Agreement, the "SENIOR
LENDERS") and the Agent (as defined therein and, together with the Agent under
the 364-Day Credit Agreement, the "SENIOR AGENTS").

             (3)   The Company will issue 11.125% Senior Secured Notes due 2009
(as amended, restated, supplemented or otherwise modified, the "NOTES"),
pursuant to an Indenture, dated as of October 31, 2001, as supplemented by a
second supplemental indenture to be dated March 28, 2002 (as amended, restated,
supplemented or otherwise modified, the "INDENTURE"; the Indenture, the Notes
and the Senior Credit Facilities being, collectively, the "DEBT AGREEMENTS")
with The Bank of New York, as trustee (the "JUNIOR LIEN CREDITOR").

             (4)   The Collateral Trustee has accepted the pledge and
assignment, and the grant of a security interest in the Collateral (as
hereinafter defined) as provided in the Security Agreement dated as of March 25,
2002 (as amended, restated, supplemented or otherwise modified, the "SECURITY
AGREEMENT"), made by the Grantors in favor of the Collateral Trustee, as
security for the Secured Obligations (as hereinafter defined) and the Company
has directed the Collateral Trustee to enter into the Intercreditor Agreement
(as hereinafter defined).

             (5)   This Agreement and the other Collateral Documents (as
hereinafter defined) are intended to secure the Debt Agreements to the extent
required to comply with the

<Page>

                                        2

provisions of the Debt Agreements and the Collateral Trustee has agreed to
undertake the rights, powers, duties and responsibilities set forth in this
Agreement and the other Collateral Documents in order to effect such purpose.

             NOW THEREFORE, in consideration of the premises, the Grantors
hereby agree with the Collateral Trustee for its benefit and for the Shared
Benefit (as hereafter defined) of the Representatives and the Secured Holders
(as hereinafter defined) as set forth herein as follows:

                                    ARTICLE I

                                   DEFINITIONS

             SECTION 1.01. CERTAIN DEFINED TERMS. The following terms shall have
the following meanings as used herein (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

             "ACTIONABLE DEFAULT" has the meaning specified in Section 4.01.

             "ACTIONABLE DEFAULT NOTICE" has the meaning specified in Section
4.01.

             "ADDITIONAL COLLATERAL" has the meaning specified in Section 2.01.

             "BANKRUPTCY CODE" means Title 11 of the United States Code entitled
"Bankruptcy", as amended from time to time.

             "BUSINESS DAY" means a day of the year on which banks are not
required or authorized by law to close in New York City or the city in which the
Collateral Trustee maintains its corporate trust office.

             "COLLATERAL" means, collectively, all of the "Collateral" (as
defined in the Security Agreement) and all of the Additional Collateral.

             "COLLATERAL ACCOUNT" has the meaning specified in Section 3.01.

             "COLLATERAL DOCUMENTS" means this Agreement, the Intercreditor
Agreement, the Receivables Intercreditor Agreement, the Security Agreement and
each Successor Collateral Agreement.

             "COLLATERAL TRUST ESTATE" means all of the right, title and
interest of the Collateral Trustee, whether now owned or hereafter acquired, in
and to the Collateral.

             "COLLATERAL TRUSTEE" has the meaning specified in the recital of
parties to this Agreement.

             "COLLATERAL TRUSTEE'S FEES" means the fees and other amounts
payable to the Collateral Trustee pursuant to Sections 6.03, 6.04 and 6.05 and
amounts claimed and unpaid pursuant to Section 6.06.

             "COMPANY" has the meaning specified in the Preliminary Statements.

<Page>

                                        3

             "COLLATERAL TRUSTEE" has the meaning specified in the recital of
parties to this Agreement.

             "DEBT AGREEMENTS" has the meaning specified in the Preliminary
Statements and each agreement and instrument delivered by the Company pursuant
thereto, as the same may be supplemented, amended or modified from time to time
in accordance with the provisions thereof.

             "DEFAULTED AGREEMENT PARTY" has the meaning specified in
Section 4.01.

             "DISTRIBUTION DATE" means any date on which the Collateral Trustee
shall distribute moneys from the Collateral Account pursuant to Section 5.01.

             "FIVE YEAR CREDIT AGREEMENT" has the meaning specified in the
Preliminary Statements.

             "GRANTORS" has the meaning specified in the recitals of parties to
this Agreement.

             "INDENTURE" has the meaning provided in the Preliminary Statements.

             "INTERCREDITOR AGREEMENT" means the Intercreditor Agreement dated
as of March 25, 2002, among the Senior Agents and the Junior Lien Creditor.

             "JUNIOR LIEN CREDITOR" has the meaning specified in the Preliminary
Statements.

             "LIEN" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right or way or other encumbrance on title
to real property.

             "MARKETABLE SECURITIES" means any of the following, to the extent
free and clear of all Liens other than Liens created under the Collateral
Documents and having a maturity of not greater than 180 days from the date of
acquisition thereof: (a) readily marketable direct obligations of the Government
of the United States or any agency or instrumentality thereof or obligations
unconditionally guaranteed by the full faith and credit of the Government of the
United States, (b) insured certificates of deposit of or time deposits with any
commercial bank that (i) is a Senior Lender or a member of the Federal Reserve
System, (ii) issues (or the parent of which issues) commercial paper rated as
described in clause (c) below, (iii) is organized under the laws of the United
States or any State thereof and (iv) has combined capital and surplus of at
least $500 million, (c) commercial paper in an aggregate amount of no more than
$25,000,000 per issuer outstanding at any time, issued by any corporation
organized under the laws of any State of the United States and rated at least
"Prime-1" (or the then equivalent grade) by Moody's Investors Service, Inc. or
"A-1" (or the then equivalent grade) by Standard & Poor's Ratings Services, a
division of the McGraw-Hill Companies or (d) money market or mutual funds that
invest solely in Marketable Securities of the types described in clauses (a),
(b) or (c) above.

             "MOODY'S" has the meaning specified in the Five Year Credit
Agreement.

             "NOTE HOLDERS" means the holders of the Notes.

<Page>

                                        4

             "NOTES" has the meaning specified in the Preliminary Statements.

             "PUBLIC DEBT RATING" has the meaning specified in the Five Year
Credit Agreement.

             "RECEIVABLES INTERCREDITOR AGREEMENT" means the Intercreditor
Agreement dated as of March 25, 2002, among Citicorp North America, Inc. as
program agent, Avaya Receivables Funding LLC, as seller, the Company, as
borrower, originator and collection agent, and the Collateral Trustee.

             "REPRESENTATIVES" means at any time, collectively, (a) the Senior
Agents, as the representatives hereunder for the Senior Lenders at such time and
(b) the Junior Lien Creditor, as the representative hereunder for the Note
Holders at such time.

             "REQUIRED REPRESENTATIVES" means (a) so long as any Senior Secured
Obligation remains outstanding and unpaid, the Senior Agents acting together in
their own discretion or at the direction of the Required Senior Lenders at such
time or (b) thereafter, the Junior Lien Creditor, on behalf of itself and the
Secured Holders represented thereby; PROVIDED, HOWEVER, that amounts held at
such time by the Collateral Trustee on behalf of a Representative and such
Representative's Secured Holders in an account of the Collateral Trustee
established at the request of such Representative pursuant to Section 5.02
hereof shall be deemed to have been applied to repay the Secured Obligations of
such Secured Holders whether or not such amount has been so applied.

             "REQUIRED SENIOR LENDERS" means Senior Lenders that own or hold
more than 50% of the aggregate amount of the outstanding Secured Obligations of
all Senior Lenders under the Senior Credit Facilities at such time.

             "S&P" has the meaning specified in the Five Year Credit Agreement.

             "SECURED AGREEMENTS" means, collectively, the Debt Agreements, any
agreement or document relating to any treasury management services provided by
the Senior Lenders or their affiliates to the Company or any of its
Subsidiaries, all agreements evidencing any other obligations of the Company
owing to Senior Lenders or their affiliates including, without limitation, all
letters of credit issued by the Senior Lenders or their affiliates for the
benefit of the Company or any of its Subsidiaries, all hedge agreements entered
into with the Company or any of its Subsidiaries by the Senior Lenders or their
affiliates, and each agreement or instrument delivered by any Grantor pursuant
to any of the foregoing (including, without limitation, the Collateral
Documents), as the same may be amended from time to time in accordance with the
provisions thereof but shall not include any obligations of the Company or any
Subsidiary to any Senior Lender or its affiliates in connection with any
receivables securitization program permitted pursuant to Section 5.07(viii) of
the Credit Agreement.

             "SECURED HOLDERS" means, at any time, the Senior Secured Creditors
and the Note Holders.

             "SECURED OBLIGATIONS" means at any time any obligations, whether
matured or unmatured, contingent or liquidated, of any Grantor arising out of or
evidenced by this

<Page>

                                        5

Agreement or by the Secured Agreements, whether for principal, interest,
expenses, premiums, indemnities, fees or other amounts, whether or not such
obligations are due and payable at such time. For purposes of determining the
"Required Representatives" on any date, the aggregate amount of outstanding
Secured Obligations represented by each Representative on such date shall
include:

             (a)   in the case of the Secured Obligations of Secured Holders
     represented by the Senior Agents under the Senior Credit Facilities, the
     aggregate amount of the advances under the Senior Credit Facilities
     outstanding at such time, and

             (b)   in the case of Secured Obligations of Secured Holders
     represented by the Junior Lien Creditor under the Indenture, the aggregate
     amount of the Notes outstanding at such time.

             "SECURITY AGREEMENT" has the meaning specified in the Preliminary
Statements.

             "SECURITY PERIOD" means the period beginning on the date hereof
until the date thereafter, if any, that (i) the Company's corporate credit
rating shall be at least BBB by S&P and the Company's Public Debt Rating shall
be at least Baa2 by Moody's and (ii) to the extent such corporate credit rating
shall be BBB by S&P or such Public Debt Rating shall be Baa2 by Moody's, such
rating shall not be accompanied by either (x) in the case of S&P, a negative
outlook, creditwatch negative or the equivalent thereof or (y) in the case of
Moody's, a negative outlook, a review for possible downgrade or the equivalent
thereof.

             "SENIOR AGENTS" has the meaning specified in the Preliminary
Statements.

             "SENIOR LENDERS" has the meaning specified in the Preliminary
Statements.

             "SENIOR SECURED CREDITORS" means the Senior Lenders and such of
their affiliates as are party to any Secured Agreement and the Senior Agents,
including in their capacity as Representatives for the Senior Lenders and such
affiliates.

             "SENIOR SECURED OBLIGATIONS" means the Secured Obligations owing to
the Senior Secured Creditors.

             "SHARED BENEFIT" means, with respect to any of the Collateral or
any rights to share in any proceeds thereof, (i) so long as any Senior Secured
Obligation remains outstanding and unpaid, the equal and ratable interest
therein and rights in respect thereof of the Senior Secured Creditors in
accordance with the terms of the Secured Agreements based on their respective
pro rata shares of the Senior Secured Obligations and (ii) thereafter, the equal
and ratable interest therein and rights in respect thereof of the Secured
Holders in accordance with the terms of the Secured Agreements based on their
respective pro rata shares of the Secured Obligations.

             "SUBSEQUENT INTERCREDITOR AGREEMENT" means an intercreditor
agreement entered into by the Collateral Trustee in accordance with
Section 8.01.

<Page>

                                        6

             "SUCCESSOR COLLATERAL" means, with respect to any Grantor, any
property and assets of such Grantor (or any of its successors and assigns) as
such Grantor (or any such successor or any such assign) may, from time to time,
upon notice to the Collateral Trustee, pursuant to the Debt Agreements or
otherwise, grant to the Collateral Trustee as additional collateral for its
benefit and in trust for the Shared Benefit of the Representatives, on their
behalf and on behalf of the Secured Holders.

             "SUCCESSOR COLLATERAL AGREEMENTS" means all documents creating,
evidencing or relating to any of the Successor Collateral.

             "364-DAY CREDIT AGREEMENT" has the meaning specified in the
Preliminary Statements.

             SECTION 1.02. CERTAIN REFERENCES. In this Agreement, the words
"hereof," "herein" and "hereunder", and words of similar import, shall refer to
this Agreement as a whole and not to any particular provision of this Agreement.
All section, schedule and exhibit references set forth in this Agreement are,
unless otherwise specified, references to such section in, or schedule or
exhibit to, this Agreement.

                                   ARTICLE II

                 CONFIRMATION AND CREATION OF SECURITY INTERESTS

             SECTION 2.01. COLLATERAL TRUST ESTATE. Each Grantor hereby confirms
that, pursuant to the terms of the Collateral Documents to which it is a party,
such Grantor has pledged and assigned to the Collateral Trustee for its benefit
and in trust for the Shared Benefit of the Representatives and the Secured
Holders, and has granted the Collateral Trustee for its benefit and in trust for
the Shared Benefit of the Representatives and the Secured Holders a Lien on the
Collateral described therein. Each Grantor hereby further pledges and assigns to
the Collateral Trustee for its benefit and in trust for the Shared Benefit of
the Representatives, on its behalf and on behalf of the Secured Holders, and
hereby grants to the Collateral Trustee for its benefit and in trust for the
Shared Benefit of the Representatives, on their behalf and on behalf of the
Secured Holders, a Lien on the following (collectively, together with any
Successor Collateral, the "ADDITIONAL COLLATERAL"):

             (i)   the Collateral Account established pursuant to
     Section 3.01(a) with the Collateral Trustee at its offices at its corporate
     trust department in the State of New York and is, and shall at all times
     remain, under the sole dominion and control of the Collateral Trustee, all
     funds held therein and all certificates and instruments, if any, from time
     to time representing each Collateral Account;

             (ii)  all Marketable Securities held in the Collateral Account from
     time to time and all certificates and instruments, if any, from time to
     time representing or evidencing such Marketable Securities;

<Page>

                                        7

             (iii) all notes, certificates of deposit, deposit accounts, checks
     and other instruments from time to time delivered to or otherwise possessed
     by the Collateral Trustee for or on behalf of any Grantor in substitution
     for or in addition to any or all of the then existing Additional
     Collateral;

             (iv)  all interest, income, dividends, instruments and other
     property and assets from time to time received, receivable or otherwise
     distributed in respect of or in exchange for any or all of the then
     existing Additional Collateral referred to in clauses (i) through (iii) of
     this Section 2.01(a); and

             (v)   all proceeds of any and all of the foregoing Additional
     Collateral (including, without limitation, proceeds that constitute
     property and assets of the types described in clauses (i) through (iv) of
     this Section 2.01(a)) and, to the extent not otherwise included, all (A)
     payments under any indemnity, warranty or guaranty payable with respect to
     any of the foregoing Additional Collateral, and (B) cash.

             SECTION 2.02. SECURITY FOR SECURED OBLIGATIONS. All of the right,
title and interest of the Collateral Trustee in and to the Collateral Trust
Estate secures the payment of all of the Secured Obligations now or hereafter
existing under or in respect of the Secured Agreements and the performance of,
and the compliance with, all of the covenants and conditions of this Agreement,
the other Collateral Documents and the Secured Agreements.

                                   ARTICLE III

                               COLLATERAL ACCOUNT

             SECTION 3.01. COLLATERAL ACCOUNT. (a) The Collateral Trustee shall
establish and maintain a non-interest bearing cash collateral account (the
"COLLATERAL ACCOUNT") for the Representatives and the Secured Holders at its
offices at its corporate trust department in the State of New York in accordance
with the terms of this Agreement. All moneys that are received by the Collateral
Trustee upon the occurrence and during the continuance of an Actionable Default,
upon liquidation or otherwise in respect of the Collateral shall be deposited in
the Collateral Account and, thereafter, shall be held and applied by the
Collateral Trustee in accordance with the terms of this Agreement.

             (b)   The Collateral Trustee shall, subject to the provisions of
Article IV and Article VIII, from time to time (i) invest amounts on deposit in
the Collateral Account in Marketable Securities and (ii) invest interest paid on
such Marketable Securities, and reinvest other proceeds of any such Marketable
Securities that may mature or be sold, in additional Marketable Securities, in
each case at the written direction of (x) the Company so long as no Actionable
Default Notice has been received by the Collateral Trustee that has not been
withdrawn and (y) the Required Representatives if an Actionable Default Notice
has been received by the Collateral Trustee that has not been withdrawn.
Interest and proceeds that are not invested or reinvested in Marketable
Securities as provided in the immediately preceding sentence shall be deposited
and held in the Collateral Account. Notwithstanding the foregoing, the
Collateral Trustee shall, to the extent possible, invest any funds to be
distributed on a Distribution Date in Marketable Securities that shall mature or
become liquid on or prior to such

<Page>

                               8

Distribution Date. All Marketable Securities made in respect of the Collateral
Account and all interest and income received thereon and therefrom and the net
proceeds realized on the maturity or sale thereof shall be held in the
Collateral Account as part of the Collateral Trust Estate pursuant to the terms
hereof.

             (c)   The Collateral Account shall be subject to such applicable
laws, and such applicable regulations of the Board of Governors of the Federal
Reserve System and of any other appropriate banking or regulatory authority, as
are in effect from time to time.

                                   ARTICLE IV

                          ACTIONABLE DEFAULTS; REMEDIES

             SECTION 4.01. ACTIONABLE DEFAULT NOTICE. (a)  If, at any time, (x)
any event or circumstance of the types described in Section 6(g) or (h) of the
Five Year Credit Agreement shall have occurred with respect to any Grantor or
(y) a payment default under any Debt Agreement shall have occurred and be
continuing, and, as a result thereof, any Representative or any Secured Holder
under, or the percentage of Secured Holders specified in, such Debt Agreement
(any such party or percentage of Secured Holders being a "DEFAULTED AGREEMENT
PARTY") has the right thereunder (without the delivery of any further notice or
the requirement that any further time elapse) to declare all of the Secured
Obligations of the Grantors under such Secured Agreement to be due and payable
prior to the stated maturity thereof or (z) a Defaulted Agreement Party shall
have declared all of the Secured Obligations of the Grantors under such Secured
Agreement to be due and payable prior to the stated maturity thereof (any such
default being an "ACTIONABLE DEFAULT"), and if such Defaulted Agreement Party
gives the Collateral Trustee, with a copy to the Company, a written notice (an
"ACTIONABLE DEFAULT NOTICE") stating:

             (i)   the nature of the Actionable Default;

             (ii) the action requested to be taken by the Collateral Trustee
     with respect to the Collateral and the Collateral Documents (which action
     may include, without limitation, the calling of a meeting of the
     Representatives or the institution of any remedies provided by law or this
     Agreement or any Collateral Document); and

             (iii) that such Defaulted Agreement Party has polled the
     Representatives with respect to such action,

then the Collateral Trustee shall forthwith send a copy of the Actionable
Default Notice to each Representative. The Representatives shall provide the
Collateral Trustee with a certificate that shall state whether or not they favor
the Collateral Trustee taking such action. If the Required Representatives shall
have directed the Collateral Trustee to commence the action set forth in the
Actionable Default Notice (whether or not such poll shall have been taken or
completed), then, subject to Section 4.01(b) and the right of the Collateral
Trustee to commence such action under the Collateral Documents, the Collateral
Trustee shall forthwith undertake such action subject to the provisions of
Section 7.05(d) and shall, to the extent practicable, use commercially
reasonable efforts to give prior written notice of such action to the Company.
The Collateral Trustee shall, subject to Sections 4.01(b), 4.08 and 6.06, follow
the directions of the Required Representatives with respect to the time, method
and place of taking any action requested in an

<Page>

                                        9

Actionable Default Notice. The Collateral Trustee shall assume conclusively that
no Actionable Default has occurred and is continuing until it receives an
Actionable Default Notice.

             (b)   If the Actionable Default which was the basis for the giving
of an Actionable Default Notice shall be cured or waived in accordance with the
terms of the applicable Debt Agreement, the Defaulted Agreement Party which gave
such Actionable Default Notice shall promptly notify the Collateral Trustee in
writing of such cure or waiver, upon receipt of such written notice of a cure or
waiver (i) such Actionable Default Notice shall be deemed withdrawn, (ii) the
Collateral Trustee shall deliver to each Representative such writing evidencing
the cure or waiver of a Default Notice as it may have received pursuant to this
Section (b) and (iii) any direction to the Collateral Trustee to take any action
in connection with such Actionable Default Notice shall be deemed immediately
rescinded. If in connection solely with such withdrawn Actionable Default Notice
the Collateral Trustee shall have been directed to take, and shall have
commenced taking but shall not have completed, any action, the Collateral
Trustee shall promptly terminate any such action which it shall not also have
been directed to take in connection with an Actionable Default Notice other than
that withdrawn.

             SECTION 4.02. DIRECTION BY REQUIRED REPRESENTATIVES. As to any
matters not expressly provided for under this Agreement or the other Collateral
Documents (including, without limitation, matters relating to enforcement and
collection of the Secured Obligations), the Collateral Trustee shall not be
required to exercise any discretion or to take any action under this Agreement
or the other Collateral Documents, or in respect of the Collateral, but subject
to the provisions of Section 7.05(d) shall be required to act or to refrain from
acting (and shall be fully protected in acting or refraining from acting) in
accordance with the written instructions of the Required Representatives which
instructions shall reference Section 6.06 hereof.

             SECTION 4.03. RIGHT TO INITIATE JUDICIAL PROCEEDINGS, ETC. (a) Upon
the occurrence of and during the continuance of any Actionable Default and the
receipt by the Collateral Trustee of an Actionable Default Notice that has not
been withdrawn pursuant to Section 4.01(b) above, the Collateral Trustee (i)
shall have the right and power to institute and maintain such suits and
proceedings as it or the Required Representatives may deem appropriate to
protect and enforce the rights vested in it by this Agreement and the other
Collateral Documents and (ii) may proceed by suit or suits at law or in equity
to enforce such rights and to foreclose upon the Collateral and to dispose of,
collect or otherwise realize upon, all or any portion of the Collateral Trust
Estate under the final non-appealable judgment or decree of a court of competent
jurisdiction.

             (b)   If a receiver of the Collateral Trust Estate shall be
appointed in judicial proceedings, the Collateral Trustee may be appointed as
such receiver. Notwithstanding the appointment of a receiver, the Collateral
Trustee shall be entitled to retain possession and control of all cash held by
or deposited with it or its agents or co-trustees pursuant to any provision of
this Agreement or any other Collateral Document.

             SECTION 4.04. REMEDIES NOT EXCLUSIVE. (a) No remedy conferred upon
or reserved to the Collateral Trustee herein or in the Collateral Documents is
intended to be a limitation exclusive of any other remedy or remedies, but every
such remedy shall be cumulative

<Page>

                                       10

and shall be in addition to every other remedy conferred herein or in the
Collateral Documents or now or hereafter existing at law or in equity or by
statute.

             (b)   No delay or omission of the Collateral Trustee to exercise
any right, remedy or power accruing upon any Actionable Default shall impair any
such right, remedy or power or shall be construed to be a waiver of any such
Actionable Default or any acquiescence therein; and every right, power and
remedy given by this Agreement or any Collateral Document to the Collateral
Trustee may be exercised from time to time and as often as may be deemed
expedient by the Collateral Trustee.

             (c)   In case the Collateral Trustee shall have proceeded to
enforce any right, remedy or power under this Agreement or any Collateral
Document and the proceeding for the enforcement thereof shall have been
discontinued or abandoned for any reason or shall have been determined adversely
to the Collateral Trustee, then and in every such case the Grantors, the
Collateral Trustee, the Representatives and Secured Holders shall, subject to
any determination in such proceeding, severally be restored to their former
positions and rights hereunder and under such Collateral Document with respect
to the Collateral Trust Estate, the Collateral Account and in all other
respects, and thereafter all rights, remedies and powers of the Collateral
Trustee shall continue as though no such proceeding had been taken.

             (d)   Each Grantor expressly agrees that all rights of action and
rights to assert claims upon or under this Agreement and the Collateral
Documents may be enforced by the Collateral Trustee without the possession of
any debt instrument or the production thereof in any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Collateral
Trustee shall be brought in its name as Collateral Trustee and any recovery of
judgment shall be held as part of the Collateral Trust Estate; PROVIDED that
nothing in this Section 4.04(d) shall constitute a waiver of any defense that
the Company or any other Grantor may have, including the right to challenge the
amounts outstanding under the Secured Agreements or the continued existence of
the Lien on the Collateral.

             SECTION 4.05. WAIVER OF CERTAIN RIGHTS. Each Grantor, on behalf of
itself and all who may claim through or under it, including, without limitation,
any and all subsequent affiliates, creditors, vendees, assignees and lienors,
expressly waives and releases, to the fullest extent permitted by law, any,
every and all rights to demand or to have any marshalling of the Collateral
Trust Estate upon any enforcement of any Collateral Document, including, without
limitation, upon any sale, whether made under any power of sale herein granted
or pursuant to judicial proceedings or upon any foreclosure or any enforcement
of any Collateral Document or this Agreement and consents and agrees that all
the Collateral Trust Estate in any such sale may be offered and sold as an
entirety.

             SECTION 4.06. LIMITATION ON COLLATERAL TRUSTEE'S DUTIES IN RESPECT
OF COLLATERAL. Beyond the duties set forth in this Agreement, the Collateral
Trustee shall not have any duty to any Grantor, any Secured Party or the
Representatives as to any Collateral in the Collateral Trustee's possession or
control or in the possession or control of any agent or nominee of the
Collateral Trustee or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto and, with respect
to such possession or control, the

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                                       11

Collateral Trustee shall not have any liability except for its failure to
exercise ordinary care in the handling of moneys and securities and other
property actually received by it.

             SECTION 4.07. LIMITATION BY LAW. All rights, remedies and powers
provided by this Article 4 may be exercised only to the extent that the exercise
thereof does not violate any applicable provision of law, and all the provisions
of this Article 4 are intended to be subject to all applicable mandatory
provisions of law which may be controlling and to be limited to the extent
necessary so that they will not render this Agreement invalid, unenforceable in
whole or in part or, if the Representatives elect that this Agreement should be
recorded, registered or filed, not entitled to be recorded, registered, or filed
under the provisions of any applicable law.

             SECTION 4.08. ABSOLUTE RIGHTS OF SECURED HOLDERS AND
REPRESENTATIVES. Notwithstanding any other provision of this Agreement or any of
the other Collateral Documents but subject to the Intercreditor Agreement, the
Receivables Intercreditor Agreement and any Subsequent Intercreditor Agreement,
each of the Representatives and each of the Secured Holders has an absolute and
unconditional right to receive payment of all of the Secured Obligations owing
to such Representative or such Secured Holder, as the case may be, when the same
becomes due and payable and at the time and place and otherwise in the manner
set forth in the applicable Secured Agreements, and the right of each such
Representative and each such Secured Holder to institute proceedings for the
enforcement of such payment on or after the date such payment becomes due and to
assert its position as a secured creditor in a proceeding under the Bankruptcy
Code in which any Grantor is a debtor, and the obligation of such Grantor to pay
all of the Secured Obligations owing to each of the Representatives and each of
the Secured Holders at the time and place expressed therein, shall not be
impaired or affected without the consent of such Representative or such Secured
Holder. In addition, the right of any Secured Holder or any Representative, on
behalf of itself or on behalf of any such Secured Holder, to receive payment or
security from sources other than the Collateral shall not be, and is not hereby,
impaired or affected in any manner. Without limiting the generality of the
foregoing provisions of this Section 4.08, no Secured Holder and no
Representative, on behalf of itself or on behalf of any Secured Holder, shall be
obligated to share with any other Secured Holder or any other Representative any
proceeds of any collateral, guaranty or right of setoff other than pursuant to,
and to the extent expressly required under, this Agreement, the other Secured
Agreements, the Intercreditor Agreement, the Receivables Intercreditor Agreement
and any Subsequent Intercreditor Agreement; nor shall any Secured Holder's or
any Representative's right to receive its ratable share of any amounts
maintained in the Collateral Account, if any, or any proceeds of any of the
Collateral, or any part thereof, under the terms of this Agreement, the other
Collateral Documents, the Intercreditor Agreement the Receivables Intercreditor
Agreement and any Subsequent Intercreditor Agreement be diminished or affected
in any way by its right to receive proceeds of any other collateral or right of
setoff, or payment upon a guaranty or from any other source.

             SECTION 4.09. TERMS OF SECURITY. This Agreement is intended solely
to comply with the provisions of the Indenture and the Notes to secure the
unpaid Secured Obligations arising thereunder and under the Notes in accordance
with the terms set forth therein, it being understood that the Lien hereunder in
favor of the Junior Lien Creditor, as Representative for the Note Holders, shall
remain at all times junior to the Lien of the Senior Secured Creditors in
accordance with the terms of the Intercreditor Agreement.

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                                       12

                                    ARTICLE V

                             APPLICATION OF PROCEEDS

             SECTION 5.01. APPLICATION OF PROCEEDS. (a) If, following the
acceleration of the principal amount of the Secured Obligations under any
Secured Agreement and pursuant to the exercise of any remedy set forth in any
Collateral Document, any Collateral is sold or otherwise realized upon by the
Collateral Trustee, the proceeds received by the Collateral Trustee in respect
of such Collateral shall be deposited in the Collateral Account, and all moneys
held by the Collateral Trustee in the Collateral Account shall, to the extent
available for distribution, be distributed by the Collateral Trustee on each
date upon which a distribution is made (each, a "DISTRIBUTION DATE") as follows:

             FIRST, to the payment, without duplication, of all reasonable legal
        fees and expenses and other reasonable costs or expenses or other
        liabilities of any kind incurred by the Collateral Trustee as a secured
        party under any Collateral Document or otherwise in connection with any
        Collateral Document or this Agreement (including, without limitation,
        any reasonable costs or expenses or liabilities incurred in connection
        with the sale of any assets covered by any Collateral Document, or in
        the operation or maintenance of any of the assets covered by any
        Collateral Document), including the reimbursement to any Representative
        of any amounts theretofore advanced by such Representative for the
        payment of such fees, costs and expenses, except only for any such fees,
        expenses, costs or liabilities incurred by the Collateral Trustee as a
        result of its gross negligence or willful misconduct in performing or
        failing to perform any of its duties to the parties hereto expressly set
        forth herein; PROVIDED, HOWEVER, that nothing herein is intended to
        relieve any Grantor of its duties to pay such costs, fees, expenses and
        liabilities otherwise payable to the Collateral Trustee from funds
        outside of the Collateral Account, as required by this Agreement;

             SECOND, to the Collateral Trustee (without duplication) in an
        amount equal to the Collateral Trustee's Fees which are unpaid as of the
        Distribution Date and to any Representative which has theretofore
        advanced or paid any the Collateral Trustee's Fees in an amount equal to
        the amount thereof so advanced or paid by such Representative prior to
        such Distribution Date; PROVIDED, HOWEVER, that nothing herein is
        intended to relieve any Grantor of its duties to pay such fees and
        claims from funds outside of the Collateral Account, as required by this
        Agreement;

             THIRD, in accordance with paragraph (b) below, ratably to the
        Senior Agents, as Representatives for the Senior Secured Creditors, on
        behalf of the Senior Secured Creditors for application to the Secured
        Obligations of the Senior Secured Creditors, or, to be held by such
        Representatives (or by the Collateral Trustee on behalf of such
        Representatives pursuant to Section 5.02 or otherwise) pending such
        application;

             FOURTH, to the Junior Lien Creditor, as Representative for the Note
        Holders, on behalf of the Note Holders for application to the Secured
        Obligations of the Note Holders, or, to be held by such Representative
        (or by the Collateral Trustee on behalf of such Representative pursuant
        to Section 5.02 or otherwise) pending such application; and

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                                       13

             FIFTH, any surplus remaining after the payment in full in cash of
        the Secured Obligations shall, pursuant to the provisions of Section
        8.02, be paid to the Company, its successors or assigns, or to
        whomsoever may be lawfully entitled to receive the same as a court of
        competent jurisdiction may direct.

             (b)   In order to determine the ratable amount to be distributed to
each of the Representatives entitled to a distribution pursuant to clause THIRD
above on each Distribution Date, unless otherwise directed in writing by the
Senior Agents, the Collateral Trustee may conclusively rely, and shall be fully
protected in relying, on a certificate of the Chief Financial Officer, Treasurer
or Controller of the Company setting forth the Secured Obligations (identified
by type and amount) outstanding under each Secured Agreement on such
Distribution Date. The ratable portion of the aggregate amount available for
distribution hereunder on any Distribution Date which shall be distributed to
each Senior Agent entitled to a distribution on such Distribution Date shall be
a fraction, (i) the numerator of which shall be the aggregate amount of Senior
Secured Obligations of the Secured Holders represented by such Senior Agent, and
(ii) the denominator of which shall be the aggregate amount of Secured
Obligations of all the Senior Secured Creditors; PROVIDED, HOWEVER, that the
aggregate amount distributable to such Senior Agent on such Distribution Date
shall not exceed the aggregate amount of Senior Secured Obligations which are
then payable by any Grantor to the Secured Lenders of such Senior Agent; and,
PROVIDED, FURTHER, that, for such purposes, amounts distributable to a Senior
Agent on a prior Distribution Date and held on behalf of such Senior Agent and
the Secured Lenders of such Senior Agent pursuant to Section 5.02 of this
Agreement shall be deemed to have been applied to the Senior Secured Obligations
of the Secured Lenders represented by such Senior Agent, regardless of whether
such application has occurred.

             SECTION 5.02. APPLICATION OF WITHHELD AMOUNTS. If on any
Distribution Date any amounts on deposit to the Collateral Account are
distributable pursuant to Section 5.01 to any Representative, and if such
Representative shall have given notice to the Collateral Trustee on or prior to
such Distribution Date that all or a portion of such proceeds which are
otherwise distributable to such Representative pursuant to Section 5.01 shall be
held by the Collateral Trustee on behalf of such Representative for the benefit
of the Secured Holders of such Representative, then, subject to the last
sentence of this Section 5.02, the Collateral Trustee shall hold such amount in
a separate non-interest bearing cash collateral account of the Collateral
Trustee for the benefit of such Representative and such Secured Holders, until
such time as such Representative shall deliver a written request for the
delivery thereof from such account to such Representative or as such
Representative may otherwise direct in such notice. If thereafter the Secured
Obligations of the Secured Holders represented by any such Representative shall
have been repaid in full in cash on any date, then (a) upon the written request
of the Company (or any other Representative) certifying as to such payment in
full, and (b) after delivery of such notice by the Collateral Trustee to such
Representative, the Collateral Trustee shall not have received a written notice
of objection from such Representative within 10 Business Days after such
Representative's receipt of such notice, promptly following such 10th Business
Day (or the earlier receipt by the Collateral Trustee of the written consent of
such Representative), any amounts held on account for such Representative
pursuant to this Section 5.02 shall be again deposited by the Collateral Trustee
to the Collateral Account and thereafter distributed as provided in Section
5.01. The Collateral Trustee shall invest amounts on deposit to any such account
in such Marketable Securities as the applicable Representative may direct from
time to time.

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                                       14

             SECTION 5.03. RELEASE OF AMOUNTS IN COLLATERAL ACCOUNT. Amounts
distributable to a Representative on any Distribution Date pursuant to
Section 5.01 shall either be paid to such Representative for the benefit of such
Representative and its Secured Holders by the Collateral Trustee (or deposited
to an account for the benefit of such Representative and its Secured Holders
pursuant to Section 5.02) upon receipt by the Collateral Trustee of a written
certificate of such Representative setting forth appropriate payments
instructions for such Representative. If no such notice is delivered by a
Representative within 10 Business Days thereafter, the Collateral Trustee shall
deposit amounts otherwise distributable to such Representative to an account for
the benefit of such Representative and its Secured Holders pursuant to Section
5.02 hereof.

                                   ARTICLE VI

                     AGREEMENTS WITH THE COLLATERAL TRUSTEE

             SECTION 6.01. DELIVERY OF AGREEMENTS. The Company will deliver to
the Collateral Trustee a true and complete copy of each Secured Agreement,
including each Collateral Document, as in effect on such date. The Company
agrees that, promptly upon the execution thereof, the Company will deliver to
the Collateral Trustee a true and complete copy of any and all Collateral
Documents entered into subsequent to the date hereof and a true and complete
copy of any and all amendments, modifications or supplements to any of the
foregoing.

             SECTION 6.02. INFORMATION AS TO REPRESENTATIVES. The Company agrees
that it shall deliver to the Collateral Trustee from time to time upon written
request of the Collateral Trustee a list setting forth, for each Secured
Agreement, (a) the aggregate principal amount outstanding thereunder, (b) the
accrued and unpaid interest thereunder, (c) the accrued and unpaid fees (if any)
thereunder, (d) the names of the Representatives and of the Secured Holders (to
the extent known to the Company) thereunder, and all other unpaid amounts
thereunder known to the Company, owing to each such Representative, for its own
account and on behalf of such Secured Holders and (e) such other information
known to the Company regarding the Representatives, such Secured Holders and the
Secured Agreements as the Collateral Trustee may reasonably request. In
addition, the Company shall deliver to the Collateral Trustee, each time a
distribution from the Collateral Trust Estate or the Collateral Account is to be
made pursuant to the terms hereof, not later than two Business Days after
receipt of a copy of the applicable distribution request delivered by a
Defaulted Agreement Party pursuant to Section 5.04 hereof, a certificate of the
Chief Financial Officer, Treasurer or Controller of the Company, setting forth
the amounts to be distributed and the Persons to whom such distributions are to
be made, including appropriate payment instructions therefor, PROVIDED, that if
any distribution is directed to be made to any Representative, if such
Representative shall have notified the Collateral Trustee in writing that such
Representative is unable to accept such distribution, such distribution shall be
made instead to an account established pursuant to Section 5.02 hereof for the
benefit of such Representative and its Secured Holders. The Company will furnish
to the Collateral Trustee, with a copy to each Representative, a list setting
forth the name and address of each Representative and each Person to whom
notices must be sent under the Secured Agreements and the Company agrees to
furnish promptly to the Collateral Trustee any changes or additions to such list
of which the Company is made aware. Unless otherwise specified herein, the
Collateral Trustee may for all purposes hereunder, rely on such information
given by

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                                       15

the Company unless (i) the Collateral Trustee shall have actual knowledge of an
inaccuracy or (ii) any Representative shall provide contrary information in
writing with respect to such Representative.

             SECTION 6.03. COMPENSATION AND EXPENSES. The Company agrees to pay
to the Collateral Trustee and any co-trustees or successor trustees appointed
hereunder, from time to time upon demand, (a) such compensation for their
services hereunder and under the Collateral Documents and for administering the
Collateral Trust Estate, the Collateral Account and any account or accounts
established pursuant to Section 5.02 hereof as set forth in the fee letter
between the Company and the Collateral Trustee, as such fee letter may be
amended, supplemented or otherwise modified by the written agreement of the
Company and the Collateral Trustee from time to time and (b) all the reasonable
fees, costs and expenses incurred by any of them (including, without limitation,
the reasonable fees and disbursements of one counsel) (i) arising in connection
with the preparation, execution, delivery, modification and termination of this
Agreement and each Collateral Document or the enforcement of any of the
provisions hereof or thereof or (ii) incurred or required to be advanced in
connection with (A) the administration of the Collateral Trust Estate, the
Collateral Account, the Collateral Documents and any account or accounts
established pursuant to Section 5.02 hereof, (B) the custody, preservation,
operation of, or the sale or other disposition of Collateral pursuant to any
Collateral Document, collection from or other realization upon, any of the
Collateral, (C) the exercise or enforcement of any of the rights of the
Collateral Trustee, the Representatives or the Secured Holders hereunder, (D)
the preservation, protection or defense of its rights under this Agreement and
in and to the Collateral, the Collateral Account, any account or accounts
established pursuant to Section 5.02 hereof and the Collateral Trust Estate or
(E) the failure by any Grantor to perform or observe any of the provisions of
any Collateral Document. As security for such payment, the Collateral Trustee
shall have a prior Lien upon all Collateral and other property and funds held or
collected by the Collateral Trustee as part of the Collateral Trust Estate. The
Company's obligations under this Section 6.03 shall survive the termination of
this Agreement.

             SECTION 6.04. STAMP AND OTHER SIMILAR TAXES. The Company agrees to
indemnify and hold harmless the Collateral Trustee, each Representative and each
Secured Holder from any present or future claim for liability for any stamp or
other similar tax and any penalties or interest with respect thereto, which may
be assessed, levied or collected by any jurisdiction in connection with this
Agreement, any Collateral Document, the Collateral Trust Estate, the Collateral
Account, any account or accounts established pursuant to Section 5.02 hereof or
any Collateral. The obligations of the Company under this Section 6.04 shall
survive the termination of this Agreement.

             SECTION 6.05. FILING FEES, EXCISE TAXES, ETC. Without limiting
Section 7.02, the Company agrees to pay or to reimburse the Collateral Trustee
and each Secured Holder, as the case may be, for any and all amounts paid by the
Collateral Trustee, if any, or such Secured Holder, as the case may be, in
respect of all reasonable search, filing, recording and registration fees,
taxes, excise taxes and other similar imposts which may be payable or determined
to be payable in respect of the execution, delivery, performance and enforcement
of this Agreement and each Collateral Document. The obligations of the Company
under this Section 6.05 shall survive the termination of this Agreement.

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                                       16

             SECTION 6.06. INDEMNIFICATION. (a) The Company agrees to pay,
indemnify, and hold harmless the Collateral Trustee and each of the agents
thereof from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever (including, without limitation, the costs and expenses
of defending any claim against any of them) with respect to the execution,
delivery, enforcement, performance and administration of this Agreement and the
Collateral Documents other than to the extent arising from the gross negligence
or willful misconduct of the Collateral Trustee or such of the agents thereof or
any failure of the Collateral Trustee or any such agent to exercise ordinary
care in the handling of moneys and securities and other property actually
received by the Collateral Trustee or any such agent. As security for such
payment, the Collateral Trustee shall have a prior Lien upon all Collateral and
other property and funds held or collected by the Collateral Trustee as part of
the Collateral Trust Estate.

             (b)   In any suit, proceeding or action brought by the Collateral
Trustee under or with respect to any Collateral Document or the Collateral for
any amount owing thereunder, or to enforce any provisions thereof, the Company
will save, indemnify and hold harmless the Collateral Trustee from and against
all expense, loss or damage suffered by reason of any defense, set-off,
counterclaim, recoupment or reduction of liability whatsoever of the obligee
thereunder (other than to the extent that such expense, loss or damage is caused
by the gross negligence or willful misconduct of the Collateral Trustee or the
failure of the Collateral Trustee to exercise ordinary care in the handling of
moneys and securities and other property actually received by the Collateral
Trustee), arising out of a breach by any Grantor of any obligation thereunder or
arising out of any other agreement, indebtedness or liability at any time owing
to or in favor of such obligee or its successors from such Grantor and all such
obligations of such Grantor shall be and remain enforceable against and only
against such Grantor and shall not be enforceable against the Collateral
Trustee, any Representative or any Secured Holder. The agreements in this
Section 6.06 shall survive the termination of this Agreement.

             SECTION 6.07. FURTHER ASSURANCES. Each Grantor agrees, at its own
expense to perform its obligations under Section 7 of the Security Agreement.

                                   ARTICLE VII

                             THE COLLATERAL TRUSTEE

             SECTION 7.01. DECLARATION OF TRUST. The Collateral Trustee, for
itself and its successors, hereby accepts the trusts created by this Agreement
upon the terms and conditions hereof, including those contained in this Article
VII. Further, the Collateral Trustee, for itself and its successors, does hereby
declare that it will hold all of the estate, right, title and interest in (a)
the Collateral Trust Estate and the Collateral Account for the Shared Benefit of
the Representatives and the Secured Holders as provided herein, and (b) each
account as may be established pursuant to Section 5.02 at the request of a
Representative upon the trust herein set forth and for the benefit of such
Representative on behalf of its applicable Secured Holders as provided herein.

             SECTION 7.02. EXCULPATORY PROVISIONS. (a) The Collateral Trustee
shall not be responsible in any manner whatsoever for the correctness of any
recitals, statements,

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                                       17

representations or warranties contained herein or in the Collateral Documents,
all of which are made solely by each Grantor which is a party thereto. The
Collateral Trustee makes no representations as to the value or condition of the
Collateral Trust Estate, the Collateral Account or any part thereof, or as to
the title of any Grantor thereto or as to the security afforded by the
Collateral Documents or this Agreement, or as to the validity, execution (except
its own execution), enforceability, legality or sufficiency of this Agreement,
any Collateral Document or any Secured Agreement, and the Collateral Trustee
shall incur no liability or responsibility in respect of any such matters. The
Collateral Trustee shall not be responsible for insuring the Collateral Trust
Estate or for the payment of taxes, charges, assessments or liens upon the
Collateral Trust Estate or otherwise as to the maintenance of the Collateral
Trust Estate or the Collateral Account, except that in any event that the
Collateral Trustee enters into possession of a part or all of the Collateral
Trust Estate or the Collateral Account, the Collateral Trustee shall preserve
the part in its possession. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the
Collateral Trustee shall have no duty as to any Collateral, as to ascertaining
or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Collateral, whether or not
Representative or any Secured Holder has or is deemed to have knowledge of such
matters, or as to the taking of any necessary steps to preserve rights against
any parties or any other rights pertaining to any Collateral. The Collateral
Trustee shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which it accords its own property.

             (b)   The Collateral Trustee shall not be required to ascertain or
inquire as to the performance by any Grantor of any of the covenants or
agreements contained herein, in any other Collateral Document or in any Secured
Agreement.

             SECTION 7.03. DELEGATION OF DUTIES. The Collateral Trustee may
execute any of the trusts or powers hereof and perform any duty hereunder either
directly or by or through agents or attorneys-in-fact (which shall not include
officers and employees of the Company or any affiliate of the Company). The
Collateral Trustee shall be entitled to rely upon advice of reasonably selected
counsel and other professionals concerning all matters pertaining to such
trusts, powers and duties. The Collateral Trustee shall not be responsible for
the negligence or misconduct of any agents or attorneys-in-fact reasonably
selected by them in without gross negligence or willful misconduct.

             SECTION 7.04. RELIANCE BY COLLATERAL TRUSTEE.  (a)  Whenever in the
administration of the trusts of this Agreement or, pursuant to any other
Collateral Document, the Collateral Trustee shall deem it necessary or desirable
that a matter be proved or established in connection with the taking, suffering
or omitting any action hereunder by the Collateral Trustee unless otherwise
provided herein (including, without limitation, the determination of the
composition of the Required Representatives), such matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved or established by a certificate of an officer or the
Controller of the Company delivered to the Collateral Trustee and the
Representatives, and such certificate shall constitute a full warranty to the
Collateral Trustee for any action taken, suffered or omitted in reliance thereon
unless (i) the Collateral Trustee shall have actual knowledge of an inaccuracy
therein or (ii) any

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                                       18

Representative shall provide contrary information in writing with respect to
such matter within 10 days of the date of such certificate.

             (b)   The Collateral Trustee may consult with independent counsel,
independent public accountants and other experts selected by it (including,
counsel to or any employee of any Grantor or any affiliate of the Grantor), and
any opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered by it hereunder in
accordance therewith unless the Collateral Trustee has actual knowledge of the
incorrectness of such opinion or the facts upon which such opinion are stated to
be based are wrong. The Collateral Trustee shall have the right at any time to
seek instructions concerning the administration of the Collateral Trust Estate
or the Collateral Account or any account established pursuant to Section 5.02
hereof from the Required Representatives or any court of competent jurisdiction.

             (c)   The Collateral Trustee may rely, and shall be fully protected
in acting, upon any resolution, statement, certificate, instrument, opinion,
report, notice, request, consent, order, bond or other paper or document which
it reasonably believes to be genuine and to have been signed or presented by the
proper party or parties or, in the case of telecopies and telexes, to have been
sent by the proper party or parties. In the absence of its gross negligence or
willful misconduct, the Collateral Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any notices, certificates or opinions furnished to the Collateral Trustee
that conform to the requirements of this Agreement or any Collateral Document.

             SECTION 7.05. LIMITATIONS ON DUTIES OF THE TRUSTEES. (a) The
Collateral Trustee undertakes to perform only the duties expressly set forth
herein and no implied covenant or obligation shall be read into this Agreement
against the Collateral Trustee.

             (b)   The Collateral Trustee may exercise the rights and powers
granted to it by this Agreement and the Collateral Documents, but only pursuant
to the terms of this Agreement, and the Collateral Trustee shall not be liable
with respect to any action taken or omitted by it in accordance with the
direction of the Required Representatives.

             (c)   Except as herein otherwise expressly provided, the Collateral
Trustee shall not be under any obligation to take any action which is
discretionary with the Collateral Trustee under the provisions hereof or under
any Collateral Document (including, without limitation, the giving of any
consent, notice or request) except upon the written request of the Required
Representatives. The Collateral Trustee shall make available for inspection and
copying by each Representative each certificate or other paper furnished to the
Collateral Trustee by any Grantor, by any Representative, or by any other
Person, under or in respect of this Agreement, any Collateral Document or any of
the Collateral Trust Estate.

             (d)   The Collateral Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Agreement or any other
Collateral Document at the request or direction of any Representatives pursuant
to this Agreement, unless such Representatives shall have offered to the
Collateral Trustee, prepayment, security or indemnity satisfactory to the

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                                       19

Collateral Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.

             (e)   The Collateral Trustee shall have no duty or responsibility
with respect to the preparation, filing, or recording of any financing
statements or continuation statement, or similar documents, or of the giving of
any notice, except that the Collateral Trustee will, upon written request,
execute such of the same as may have been prepared for filing, recordation, etc.
by the Company provided the Collateral Trustee does not believe it will be
exposed to liability by reason of its executing the same; PROVIDED FURTHER that
the Company shall have confirmed to the Collateral Trustee that it shall be
entitled to rely on the indemnification provisions of Section 6.06 in connection
with the foregoing.

             SECTION 7.06. MONEYS TO BE HELD IN TRUST. All moneys received by
the Collateral Trustee under or pursuant to any provision of this Agreement or
any Collateral Document shall be segregated and held in trust for the purposes
for which they were paid or are held and the Collateral Trustee shall exercise
ordinary care in the handling of any such moneys actually received by it.

             SECTION 7.07. RESIGNATION AND REMOVAL OF COLLATERAL TRUSTEE. (a)
The Collateral Trustee may at any time, by giving 30 days' prior written notice
to the Company and the Representatives, resign and be discharged of its
responsibilities hereby created, such resignation to become effective upon the
appointment of a successor trustee or trustees by the Required Representatives,
the acceptance of such appointment by such successor trustee or trustees and,
unless an Actionable Default has occurred and is continuing, the consent to the
appointment of such successor trustee or trustees by the Company. If an
Actionable Default has occurred, the Company's consent to any such resignation
shall not be required. The Collateral Trustee shall be entitled to its fees and
expenses accrued to the date of the resignation becoming effective. The
Collateral Trustee may be removed at any time (with or without cause) and a
successor trustee or trustees appointed by the affirmative vote of the Required
Representatives, subject to, unless an Actionable Default has occurred and is
continuing, the consent of the Company, PROVIDED that the Collateral Trustee
shall be entitled to its fees and expenses accrued to the date of removal. If
the Collateral Trustee resigns or is removed as provided in this Section 7.07,
the consent to the appointment of a successor trustee or trustees shall not be
unreasonably withheld and shall be deemed to have been given if the Company
shall not have reasonably objected to any proposed successor trustee or trustees
within five Business Days of receipt of notice of the identity thereof from the
Representatives. If no successor trustee or trustees shall be appointed and
approved within 30 days from the date of the giving of the aforesaid notice of
resignation or within 30 days from the date of such vote for removal, the
Collateral Trustee, shall, or any Representative may, apply to any court of
competent jurisdiction to appoint a successor trustee or trustees to act until
such time, if any, as a successor trustee or trustees shall have been appointed
as above provided. Any successor trustee or trustees so appointed by such court
shall immediately and without further act be superseded by any successor trustee
or trustees approved by the Representatives as above provided.

             (b)   If at any time the Collateral Trustee shall become incapable
of acting, or if at any time a vacancy shall occur in the office of the
Collateral Trustee for any other cause, a successor trustee or trustees shall be
promptly appointed by the Required Representatives,

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                                       20

subject to, unless an Actionable Default has occurred and is continuing, the
consent of the Company, which consent shall not be unreasonably withheld, and
the powers, duties, authority and title of the predecessor trustee or trustees
terminated and cancelled without procuring the resignation of such predecessor
trustee or trustees, and without any formality (except as may be required by
applicable law) other than appointment and designation of a successor trustee or
trustees in writing, duly acknowledged, delivered to the predecessor trustee or
trustees and the Grantors and filed for record in each public office, if any, in
which this Agreement is required to be filed.

             (c)   The appointment and designation referred to in Section
7.07(b) shall, after any required filing, be full evidence of the right and
authority to make the same and of all the facts therein recited, and this
Agreement shall vest in such successor trustee or trustees, without any further
act, deed or conveyance, all of the estate and title of its predecessor, and
upon such filing for record the successor trustee or trustees shall become fully
vested with all the estates, properties, rights, powers, trusts, duties,
authority and title of its predecessor; but such predecessor, on the written
request of the Required Representatives, the Company or its successor trustee or
trustees, shall execute and deliver an instrument transferring to such successor
all the estates, properties, rights, powers, trusts, duties, authority and title
of such predecessor hereunder and shall deliver all securities and moneys held
by it to such successor trustee or trustees. Should any deed, conveyance or
other instrument in writing from any Grantor be required by any successor
trustee or trustees for more fully and certainly vesting in such successor
trustee or trustees the estates, properties, rights, powers, trusts, duties,
authority and title vested or intended to be vested in the predecessor trustee
or trustees, any and all such deeds, conveyances and other instruments in
writing shall, on request of such successor trustee or trustees, be executed,
acknowledged and delivered by such Grantor.

             (d)   Any required filing for record of the instrument appointing a
successor trustee or trustees as hereinabove provided shall be at the expense of
the Company. The resignation of any trustee or trustees and the instrument
removing any trustee or trustees, together with all other instruments, deeds and
conveyances provided for in this Article VII shall, if permitted by law, be
forthwith recorded, registered and filed by and at the expense of the Company,
wherever this Agreement is recorded, registered and filed.

             SECTION 7.08. STATUS OF SUCCESSORS TO TRUSTEE. Every successor to
the Collateral Trustee appointed pursuant to Section 7.07 shall be a bank or
trust company in good standing and having power so to act, incorporated under
the laws of the United States or any State thereof or the District of Columbia
and having its principal corporate trust office within a state acceptable to the
Required Representatives, and shall also have capital, surplus and undivided
profits of not less than $100,000,000, if there be such an institution with such
capital, surplus and undivided profits willing, qualified and able to accept the
trust upon reasonable or customary terms.

             SECTION 7.09. MERGER OF THE COLLATERAL TRUSTEE. Any corporation
into which the Collateral Trustee may be merged, or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to
which the Collateral Trustee shall be a party, shall be the Collateral Trustee
under this Agreement without the execution or filing of any paper or

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                                       21

any further act on the part of the parties hereto, but shall comply with the
requirements of Section 7.08 as if it were a successor.

             SECTION 7.10. ADDITIONAL CO-TRUSTEES; SEPARATE TRUSTEES. (a) If at
any time or times it shall be necessary or prudent in order to conform to any
law of any jurisdiction in which any of the Collateral shall be located, or the
Collateral Trustee shall be advised in writing by counsel satisfactory to it
that it is so necessary or prudent in the interest of the Representatives on
behalf of the Secured Holders, or the Representatives shall in writing so
request by notice to the Collateral Trustee and the Company, or the Collateral
Trustee shall deem it desirable for its own protection in the performance of its
duties hereunder, or the Grantor shall in writing so request by notice to the
Collateral Trustee with the consent of the Required Representatives, the
Collateral Trustee and each Grantor shall execute and deliver all instruments
and agreements necessary or proper to constitute another bank or trust company,
or one or more persons approved by the Collateral Trustee, the Company and the
Representatives, either to act as co-trustee or co-trustees of all or any of the
Collateral, jointly with the Collateral Trustee originally named herein or any
successor, or to act as separate trustee of any such property. In the event any
Grantor shall not have joined in the execution of such instruments and
agreements within 10 days after the receipt of a written request from the
Collateral Trustee so to do, or in case an Actionable Default Notice has been
received by the Collateral Trustee that has not been withdrawn, the Collateral
Trustee may act under the foregoing provisions of this Section 7.10 without the
concurrence of such Grantor (but with the concurrence of the Required
Representatives), and each Grantor hereby appoints the Collateral Trustee as its
agents and attorneys to act for it under the foregoing provisions of this
Section 7.10 in either of such contingencies.

             (b)   Any separate trustee and any co-trustee (other than any
trustee which may be appointed as successor to the Collateral Trustee pursuant
to Section 7.07) shall, to the extent permitted by law, be appointed and act and
be such, subject to the following provisions and conditions, namely:

             (i) all rights, powers, duties and obligations conferred upon the
     trustees in respect of the custody, control and management of moneys,
     papers or securities shall be exercised solely by the Collateral Trustee
     originally named herein or its successors appointed pursuant to
     Section 7.07;

             (ii) all rights, powers, duties and obligations conferred or
     imposed upon the Collateral Trustee hereunder shall be conferred or imposed
     and exercised or performed by the Collateral Trustee and such separate
     trustee or co-trustee, jointly, as shall be provided in the instrument
     appointing such separate trustee or co-trustee, except to the extent that
     under any law of any jurisdiction in which any particular act or acts are
     to be performed the Collateral Trustee shall be incompetent or unqualified
     to perform such act or acts, in which event such rights, powers, duties and
     obligations shall be exercised and performed by such separate trustee or
     co-trustee;

             (iii) no power given hereby to, or which it is provided hereby may
     be exercised by, any such co-trustee or separate trustee, shall be
     exercised hereunder by such

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                                       22

     co-trustee or separate trustee, except jointly with, or with the consent in
     writing of, the Collateral Trustee, anything herein contained to the
     contrary notwithstanding;

             (iv) no trustee hereunder shall be personally liable by reason of
     any act or omission of any other trustee hereunder; and

             (v) the Grantors and the Collateral Trustee, at any time, by an
     instrument in writing, executed by them jointly, may accept the resignation
     of or remove any such separate trustee, and in that case, by an instrument
     in writing executed by the Grantors and the Collateral Trustee jointly, may
     appoint a successor (who shall be acceptable to the Required
     Representatives) to such a separate trustee or co-trustee, as the case may
     be, anything herein contained to the contrary notwithstanding. In the event
     that the Grantors shall not have joined in the execution of any such
     instrument within 10 days after the receipt of a written request from the
     Collateral Trustee so to do, or in case an Actionable Default Notice has
     been received by the Collateral Trustee that has not been withdrawn, the
     Collateral Trustee shall have the power to accept the resignation of or
     remove any such separate trustee or co-trustee and to appoint (with the
     consent of the Required Representatives) a successor without the
     concurrence of the Grantors and the Grantors hereby appoint the Collateral
     Trustee its agents and attorneys to act for it in such connection in either
     of such contingencies. In the event that the Collateral Trustee shall have
     appointed a separate trustee or co-trustee or as above provided, they may
     at any time, by an instrument in writing, accept the resignation of or
     remove any such separate trustee, the successor to any such separate
     trustee to be appointed by the Grantors and the Collateral Trustee, or by
     the Collateral Trustee alone, as hereinbefore provided in this Section
     7.10.

             SECTION 7.11. TRUSTEES APPOINTED ATTORNEYS-IN-FACT. Subject to
Section 17 of the Security Agreement, each Grantor hereby irrevocably
constitutes and appoints the Collateral Trustee and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorneys-in-fact with full power and authority in the name of such Grantor or
their own name and in the place and stead of such Grantor and in the name of
such Grantor, from time to time at the direction of the Required
Representatives, to take, subject to Section 4.09, any action and to execute any
instrument which the same may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation, to receive, endorse
and collect all instruments made payable to such Grantor representing any
dividend, interest payment or other distribution in respect of the Collateral or
any part thereof and to give full discharge for the same in accordance with the
terms of the Collateral Documents. Each Grantor acknowledges and agrees that the
foregoing power of attorney is coupled with an interest and may not be revoked
or modified except with the consent of the Collateral Trustee or as otherwise
provided herein.

             SECTION 7.12. ORDINARY CARE. The Collateral Trustee shall be deemed
to have exercised ordinary care in the custody and preservation of the
Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which the Collateral Trustee accords its own
property, it being understood that the Collateral Trustee shall not have any
responsibility for (i) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Collateral, whether or not the Collateral Trustee has or is

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                                       23

deemed to have knowledge of such matters, or (ii) taking any necessary steps to
preserve rights against any parties with respect to any Collateral.

                                  ARTICLE VIII

                              RELEASE OF COLLATERAL

             SECTION 8.01. PARTIAL RELEASE OF COLLATERAL. (a) Each Grantor may,
from time to time so long as no Actionable Default Notice has been received by
the Collateral Trustee that has not been withdrawn, request the release of the
Lien of the Collateral Documents in any portion of the Collateral of such
Grantor proposed to be sold or otherwise disposed of by such Grantor to any
other Person, upon notice to the Collateral Trustee from the Chief Financial
Officer, Treasurer or Controller of the Company (a "NOTICE OF PARTIAL RELEASE"),
which Notice of Partial Release shall be delivered to the Collateral Trustee and
to each Senior Agent at least ten Business Days prior to the date of the
proposed sale or other disposition of such Collateral (unless a shorter period
of time is acceptable to the Collateral Trustee and to each Senior Agent) and
shall

             (i)   specify the Collateral to be so sold or otherwise disposed of
        and the proposed date of such sale or other disposition, and

             (ii)  certify that the sale or other disposition of such Collateral
        is in compliance with the terms of the Secured Agreements, and no
        Grantor is, and after giving effect to such release, would not be, in
        default under any of the Secured Agreements.

If a Notice of Partial Release is delivered to the Collateral Trustee in
accordance with the immediately preceding sentence and the Required
Representatives shall have confirmed to the Collateral Trustee in writing prior
to the date of the proposed release that each such Required Representative
consents to such release (which consent shall be given if (x) no default has
occurred and is continuing under the applicable Debt Agreements and (y) such
release (and the application of proceeds thereof) is in compliance with the
provisions of the applicable Debt Agreements, the security interest in such
Collateral shall automatically, without further action, be released and the
Collateral Trustee shall execute and deliver to the Company, on the date of the
proposed release, a release or releases (including, without limitation, Uniform
Commercial Code release statements and instruments of satisfaction, discharge
and/or reconveyance) in recordable form provided by the Company as to the
Collateral specified in such Notice of Partial Release from the Liens evidenced
by the Collateral Documents, which release shall state that it is effective as
of the date of such disposition and, in the case of any release related to a
receivables financing permitted by Section 5.02(viii) of the Five Year Credit
Agreement or a real estate financing permitted by Section 5.17(ii)(D) of the
Five Year Credit Agreement, shall enter into such intercreditor agreements as
shall be approved by each of the Senior Agents; PROVIDED, HOWEVER, that, if
prior to the time that the Collateral Trustee delivers a release pursuant to
this Section 8.01(a), the Collateral Trustee shall have received notice of a
default under a Senior Credit Facility that shall not have been withdrawn prior
to such time and the Required Senior Lenders shall have directed the Collateral
Trustee either not to deliver such a release or not to deliver releases
generally, then the Collateral Trustee shall so notify the Company and shall not
sign any release or releases in connection with such disposition.

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                                       24

             (b)   If, at any time, the Collateral Trustee shall receive a
written notice from the Chief Financial Officer, Treasurer or Controller of the
Company, (i) stating that any promissory note or other similar or related
instrument evidencing obligations payable to any Grantor and included in the
Collateral has been paid in full in accordance with its terms (or will be so
paid concurrently with the surrender thereof), and (ii) identifying such note or
other instrument in reasonable detail (including, without limitation, by its
date of issuance, the name of its payee and the principal amount thereof), then
the Collateral Trustee shall promptly deliver a copy of each such notice to each
Representative and, unless any Representative shall have disputed the accuracy
of such notice within five Business Days after the delivery of such notice, the
Collateral Trustee shall promptly deliver such note or other instrument to the
Company, and promptly execute and deliver a release or releases (including,
without limitation, Uniform Commercial Code release statements) in recordable
form provided by the Company as to any such note or other instrument from the
Liens evidenced by the Collateral Documents, which release shall state that it
is effective as of the date of its delivery.

             SECTION 8.02. FULL RELEASE OF COLLATERAL UPON SATISFACTION OF
CERTAIN CONDITIONS. (a) Unless the Collateral Trustee shall have received an
Actionable Default Notice that has not been withdrawn, the Collateral Trustee
shall promptly release in accordance with Section 8.03 all the Collateral upon
the earlier of (i) the date on which all Secured Obligations shall have been
paid in full after the Maturity Date applicable to each of the Senior Credit
Facilities, (ii) the termination of the Security Period and (iii) the date on
which the aggregate of the loans and available commitments under the Senior
Credit Facilities (or any refinancing thereof) shall be not less than
$400,000,000 and the Senior Lenders (or the lenders under such refinancing)
shall have agreed that such loans and available commitments shall not be secured
by a Lien.

             (b)   In furtherance of the undertaking set forth above in Section
8.02(a), the Collateral Trustee shall, upon the request of the Company
accompanied by a certificate of the Chief Financial Officer, Treasurer or
Controller of the Company, upon which the Collateral Trustee may conclusively
rely without independent verification, to the effect that (x) the Security
Period has terminated, (y) all Secured Obligations under the Secured Agreements
have been, or will, concurrently with the release of the Collateral be, paid in
full in cash and all commitments under the Senior Credit Facilities terminated
or (z) the aggregate of the loans and available commitments under the Senior
Credit Facilities (or any refinancing thereof) is not less than $400,000,000 and
the Senior Lenders (or the lenders under such refinancing) shall have agreed
that such loans and available commitments shall not be secured by a Lien,
deliver a notice by registered mail to each Representative containing the
following:

             (i) a statement as to the total amount of moneys in the Collateral
     Account and any account which has been established at the request of any
     Representative pursuant to Section 5.02; and

             (ii) a statement that the Collateral Trustee intends to release all
     the Collateral unless it receives a written notice from each Representative
     within 10 days saying that it has not received cash payment in full of all
     the Secured Obligations owed to the respective Secured Holders under the
     respective Secured Agreements, or in the case of the Senior Agents, that
     all commitments of the Senior Lenders under the Senior Credit

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                                       25

     Facilities have not been terminated, or, if such Secured Obligations are to
     be repaid and such commitments terminated concurrently with such release, a
     statement that the Collateral Trustee will release such Collateral only
     upon receipt from each Representative of instructions to do so.

If the Collateral Trustee does not receive a certificate from each
Representative within 10 days after the delivery of such notice stating that
such Secured Obligations have not been indefeasibly paid in full in cash (or
such commitments have not been terminated), or the Collateral Trustee receives a
direction from each Senior Agent so to release such Collateral, as the case may
be (and the Collateral Trustee shall not have received any notice that an
Actionable Default has occurred or is continuing), then the Collateral Trustee
shall release all the Collateral from the security interest in its favor and
deliver to the Company all Collateral in the possession of the Collateral
Trustee promptly after the expiration of such 10 day period or as specified in
such instruction, as the case may be; PROVIDED, HOWEVER, that the Company shall
have made adequate provision for the reasonable expenses of the Collateral
Trustee associated with such release of Collateral, fees and all other
reasonable expenses of, or payable to, the Collateral Trustee hereunder or under
any Collateral Document; and PROVIDED, FURTHER, that the failure of either
Senior Agent to provide a certificate to the Collateral Trustee pursuant to this
Section 8.02 shall in no way be deemed a waiver of, or otherwise impair in any
way, its rights to receive payment in respect of unpaid Secured Obligations. If
the Collateral Trustee shall have received such a certificate from each Senior
Agent within such 10 day period, or shall not have received an instruction so to
release such Collateral (or shall have received an Actionable Default Notice
which has not been withdrawn), as the case may be, the Collateral Trustee shall
not release the Collateral unless and until each Senior Agent or a court of
competent jurisdiction so directs the Collateral Trustee pursuant to a final,
non-appealable judgment (including a judgment that becomes non-appealable by
reason of expiration of any period of time limiting the right to appeal
therefrom).

             SECTION 8.03. EFFECT OF RELEASE OF COLLATERAL. Upon the
effectiveness of the release of the Collateral pursuant to Section 8.02, all
right, title and interest of the Collateral Trustee and the Representatives on
behalf of the Secured Holders in, to and under the Collateral Trust Estate, the
Collateral and the Collateral Documents shall terminate and shall revert to the
applicable Grantor and its successors and assigns, and the estate, right, title
and interest of the Collateral Trustee therein shall thereupon cease; and in
such case, upon the written request of the Company, its successors or assigns,
and at the cost and expense of the Company, its successors or assigns, the
Collateral Trustee shall promptly execute and deliver a satisfaction of the
Collateral Documents and such instruments as are necessary or desirable to
terminate and remove of record any documents constituting public notice of the
Collateral Documents and the security interests granted thereunder and shall
promptly transfer, or cause to be transferred, and shall promptly deliver or
cause to be delivered to the Company, all property, including all moneys,
instruments and securities of the Grantors then held by the Collateral Trustee.
The cancellation and satisfaction of the Collateral Documents shall be without
prejudice to the rights of the Collateral Trustee or any successor trustee or
trustees to charge and be reimbursed for any reasonable expenditures which they
may thereafter incur in connection therewith.

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                                       26

                                   ARTICLE IX

                                  MISCELLANEOUS

             SECTION 9.01. AMENDMENTS, SUPPLEMENTS AND WAIVERS. (a) (i) With the
written consent of each Senior Agent and the Collateral Trustee, any Grantor
may, from time to time, enter into written agreements supplemental hereto for
the purpose of adding to or waiving any provision of this Agreement or any of
the Collateral Documents or changing in any manner the rights or obligations of
the Collateral Trustee, the Representatives, the Secured Holders and the
Grantors hereunder or thereunder.

             (ii)  Any such supplemental agreement shall be binding upon the
Grantors, the Representatives, the Secured Holders and the Collateral Trustee
and their respective successors.

             (iii) The Collateral Trustee shall not enter into any such
supplemental agreement unless it shall have received a certificate of the Chief
Financial Officer, Treasurer or Controller of the Company to the effect that
such supplemental agreement will not result in a breach of any provision or
covenant contained in any of the Secured Agreements.

             (v)   The Collateral Trustee shall not enter into any such
supplemental agreement unless it shall have received a certificate of each
Senior Agent to the effect that, upon receipt of the Collateral Trustee's
written consent, this Section 9.01(a) has been complied with and an instruction
letter requesting the Collateral Trustee to execute such supplemental agreement.

             (b)   Notwithstanding the provisions of paragraph (a), the
Collateral Trustee and the Grantors may, at any time and from time to time,
without the consent of each Senior Agent and any other Representative or any
Secured Holders, enter into additional Collateral Documents or one or more
agreements supplemental hereto or to any Collateral Document, in form
satisfactory to the Collateral Trustee,

             (i) to add to the covenants of any Grantor, for the benefit of the
     Representatives or any Secured Holder, or to surrender any right or power
     herein conferred upon any Grantor;

             (ii) to pledge or grant a security interest in favor of the
     Collateral Trustee as additional security for the Secured Obligations any
     property or assets which are required to be pledged, or in which a security
     interest is required to be granted, to the Collateral Trustee pursuant to
     any Collateral Document or otherwise; or

             (iii) to cure any ambiguity, to correct or supplement any provision
     herein which may be inconsistent with any other provision herein, or to
     make any other provisions with respect to matters or questions arising
     under this Agreement which shall not be inconsistent with the provisions of
     this Agreement, provided such action shall not adversely affect the
     interests of the Secured Holders.

             SECTION 9.02. ADDITIONAL ACTIONS OF REPRESENTATIVES. Whether or not
there shall be an Actionable Default, the Collateral Trustee shall comply and
shall be fully protected in

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                                       27

complying with any reasonable request of (a) the Required Representatives, to
take or refrain from taking certain actions with respect to the Collateral or
the Representatives, and (b) more than 50% of the Secured Holders represented by
any Representative which has requested that an account be opened pursuant to
Section 5.02, to take or refrain from taking certain actions with respect to
such account, PROVIDED, in each case, that the Collateral Trustee shall have
been indemnified as provided in Section 7.05(d) and the Collateral Trustee shall
not take or refrain from taking such actions if to do so would violate
applicable law or the terms of this Agreement, the Collateral Documents or the
applicable Secured Agreements.

             SECTION 9.03. NOTICES. All notices, requests, demands and other
communications provided for or permitted hereunder shall, unless otherwise
stated herein, be in writing (including telex and telecopy communications) and
shall be sent by mail (by registered or certified mail, return receipt
requested), overnight prepaid courier, telex, telecopier or hand delivery:

             (a)   If to any Grantor, to the address of the Company at 211 Mount
        Airy Road, Basking Ridge, New Jersey 07920, Attention: Treasurer, with a
        copy to Attention: General Counsel, or at such other address as shall be
        designated by it in a written notice to the Collateral Trustee;

             (b)   If to the Collateral Trustee, at 5 Penn Plaza, 13th Floor,
        New York, NY 10001, Attention: Kevin Cremin, Facsimile No. 212 896-7295,
        or at such other address as shall be designated by it in a written
        notice to the Company and each Representative; and

             (c)   If to any Representative, to it at the address specified from
        time to time in the list provided by the Company to the Collateral
        Trustee pursuant to Section 6.02 with copies to whomever (other than the
        Company) is specified by the Company pursuant to Section 6.02 as a
        Person to whom notice must be sent under the Secured Agreements,
        PROVIDED that in the case that no address is known for a Representative,
        notice shall be given to it in the manner specified by the related
        Secured Agreement, and, in the absence of any such specified means of
        giving notice, by such notice in the national edition of THE WALL STREET
        JOURNAL or as the Collateral Trustee shall determine to be reasonable.
        For purposes of notice by publication, one notice is sufficient and
        shall be deemed made on the date of its publication.

All such notices, requests, demands and communications shall be deemed to have
been duly given, made or delivered, (i) effective when delivered by hand, (ii)
five business Days after being deposited in the mail, postage prepaid, (iii) the
next Business Day if delivered by an overnight prepaid courier, (iv) when
telexed with answerback, (v) when telecopied or (vi) when published in the THE
WALL STREET JOURNAL or such other publication; PROVIDED, HOWEVER that any
notice, request, demand or other communication to the Collateral Trustee or to
any Grantor or either Senior Agent shall not be effective until received and,
PROVIDED, FURTHER, that any notice to the Collateral Trustee from the Company
shall be signed by an officer or the Controller of the Company, unless otherwise
specifically set forth herein.

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                                       28

             SECTION 9.04. HEADINGS. Section, subsection and other headings used
in this Agreement are for convenience only and shall not affect the construction
of this Agreement.

             SECTION 9.05. SEVERABILITY. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall not invalidate 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.

             SECTION 9.06. TREATMENT OF PAYEE OR INDORSEE BY COLLATERAL TRUSTEE.
(a) The Collateral Trustee may treat the registered Secured Holder of any
registered note, and the payee or indorsee of any note or debenture which is not
registered, as the absolute owner thereof for all purposes hereunder and shall
not be affected by any notice to the contrary, whether such promissory note or
debenture shall be past due or not.

             (b)   Any person, firm, corporation or other entity which shall be
designated as the duly authorized representative of one or more Representatives
to act as such in connection with any matters pertaining to this Agreement or
any Collateral Document or the Collateral shall present to the Collateral
Trustee such documents, including, without limitation, opinions of counsel, as
the Collateral Trustee may reasonably require, in order to demonstrate to the
Collateral Trustee the authority of such person, firm, corporation or other
entity to act as the representative of such Representatives.

             SECTION 9.07. DEALINGS WITH THE GRANTORS. Upon any application or
demand by the Company to the Collateral Trustee to take or permit any action
under any of the provisions of this Agreement, the Company shall (unless
otherwise waived by the Collateral Trustee in writing) furnish to the Collateral
Trustee a certificate signed by its Chief Financial Officer, Treasurer or
Controller stating that all conditions precedent, if any, provided for in this
Agreement relating to the proposed action have been complied with, except that
in the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Agreement relating
to such particular application or demand, no additional certificate need be
furnished.

             SECTION 9.08. CLAIMS. This Agreement is made for the benefit of the
Representatives on behalf of the Secured Holders, and the Representatives may
from time to time enforce their rights as explicit beneficiaries hereunder.

             SECTION 9.09. BINDING EFFECT. This Agreement shall be binding upon
and inure to the benefit of each of the parties hereto and shall inure to the
benefit of the Representatives on behalf of the Secured Holders and their
respective successors and assigns and nothing herein or in any Collateral
Document is intended or shall be construed to give any other Person any right,
remedy or claim under, to or in respect of this Agreement, any Collateral
Document, the Collateral, the Collateral Account or the Collateral Trust Estate
or any part thereof.

             SECTION 9.10. GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

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                                       29

             SECTION 9.11. EFFECTIVENESS. This Agreement shall become effective
on the execution and delivery hereof and shall remain in effect so long as the
Collateral Trustee shall have any obligations hereunder.

             SECTION 9.12. REEXECUTION OF AGREEMENT. This Agreement shall be
reexecuted at any time and from time to time, at the request of the Required
Representatives, with such changes in the form hereof (including, without
limitation, changes on the cover page and adding supplemental signatures and
notary statements) solely for the purposes of and as may be required by law to
comply with the filing or recording requirements of any jurisdiction where this
Agreement is to be filed.

             SECTION 9.13. EFFECT ON DEBT AGREEMENTS. Nothing in this Agreement
shall operate or be deemed to prevent any amendment, modification or waiver of
the Debt Agreements by the parties thereto in accordance with the terms thereof.

             SECTION 9.14. COUNTERPARTS. This Agreement may be executed in
separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

<Page>

             IN WITNESS WHEREOF, the parties hereto have executed this Agreement
or caused this Agreement to be duly executed by their respective officers
thereunto duly authorized as of the day and year first above written.

                                   THE BANK OF NEW YORK,
                                   not in its individual capacity, but solely as
                                   Collateral Trustee

                                   By: /s/ Kevin Cherin
                                     ---------------------------------------
                                     Title: Vice President

<Page>

                                   AVAYA INC.,
                                   a Delaware corporation, as Grantor

                                   By /s/ Rhonda Seegal
                                     ---------------------------------------
                                     Title: Vice President

                                   AVAYA TECHNOLOGY CORP., a
                                   Delaware corporation, as Grantor

                                   By /s/ Justin Choi
                                     ---------------------------------------
                                     Title: Vice President

                                   Executed as a Deed by
                                   AVAYA (GIBRALTAR) LIMITED, a
                                   corporation organized under the laws of
                                   Gibraltar, as Grantor, and signed by a
                                   director and an Authorised Signatory

                                   By /s/ Michael Nelson
                                     ---------------------------------------
                                     Title: Director

                                   By /s/ Christopher Jentile
                                     ---------------------------------------
                                     Title: Authorized Signatory

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