Document:

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                                                                     EXHIBIT 4.4

                                                                  EXECUTION COPY

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                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                                TBC CORPORATION,

                            TBC PRIVATE BRANDS, INC.

                         and certain of its Subsidiaries

                                   in favor of

                           JPMORGAN CHASE BANK, N.A.,
                               as Collateral Agent

                            Dated as of June 17, 2005

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                                TABLE OF CONTENTS

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SECTION 1.   DEFINED TERMS...............................................................    2
    1.1      Definitions.................................................................    2
    1.2      Other Definitional Provisions...............................................    6

SECTION 2.   GUARANTEE...................................................................    7
    2.1      Guarantee...................................................................    7
    2.2      Right of Contribution.......................................................    7
    2.3      No Subrogation..............................................................    7
    2.4      Amendments, etc. with respect to the Borrower Obligations...................    8
    2.5      Guarantee Absolute and Unconditional........................................    8
    2.6      Remedies....................................................................    9
    2.7      Reinstatement...............................................................    9
    2.8      Payments....................................................................    9
    2.9      Application of Guarantee Payments and Recoveries............................    9

SECTION 3.   GRANT OF SECURITY INTEREST..................................................   10

SECTION 4.   REPRESENTATIONS AND WARRANTIES..............................................   11
    4.1      Execution, Delivery and Performance.........................................   11
    4.2      Title; No Other Liens.......................................................   12
    4.3      Perfected Priority Liens....................................................   12
    4.4      Jurisdiction of Organization................................................   12
    4.5      Farm Products...............................................................   12
    4.6      Investment Property.........................................................   12
    4.7      Receivables.................................................................   13
    4.8      Intellectual Property.......................................................   13

SECTION 5.   COVENANTS...................................................................   13
    5.1      Delivery of Instruments, Certificated Securities and Chattel Paper..........   13
    5.2      Maintenance of Insurance....................................................   13
    5.3      Payment of Obligations......................................................   14
    5.4      Maintenance of Perfected Security Interest; Further Documentation...........   14
    5.5      Changes in Locations, Name, etc.............................................   14
    5.6      Notices.....................................................................   14
    5.7      Investment Property.........................................................   15
    5.8      Intellectual Property.......................................................   15

SECTION 6.   REMEDIAL PROVISIONS.........................................................   16
    6.1      Certain Matters Relating to Receivables.....................................   16
    6.2      Communications with Obligors; Grantors Remain Liable........................   16
    6.3      Pledged Stock...............................................................   17
    6.4      Proceeds to be Turned Over To Collateral Agent..............................   17
    6.5      Application of Proceeds.....................................................   18
    6.6      Code and Other Remedies.....................................................   18
    6.7      Sale of Pledged Stock.......................................................   18
    6.8      Deficiency..................................................................   19
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<TABLE>
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SECTION 7.   THE COLLATERAL AGENT........................................................   19
    7.1      Collateral Agent's Appointment as Attorney-in-Fact, etc.....................   19
    7.2      Duty of Collateral Agent....................................................   20
    7.3      Execution of Financing Statements...........................................   21
    7.4      Authority of Collateral Agent...............................................   21

SECTION 8.   MISCELLANEOUS...............................................................   21
    8.1      Amendments in Writing.......................................................   21
    8.2      Notices.....................................................................   21
    8.3      No Waiver by Course of Conduct; Cumulative Remedies.........................   21
    8.4      Enforcement Expenses; Indemnification.......................................   21
    8.5      Successors and Assigns......................................................   22
    8.6      Set-Off.....................................................................   22
    8.7      Counterparts................................................................   22
    8.8      Severability................................................................   22
    8.9      Section Headings............................................................   23
    8.10     Integration.................................................................   23
    8.11     GOVERNING LAW...............................................................   23
    8.12     Submission To Jurisdiction; Waivers.........................................   23
    8.13     Acknowledgements............................................................   23
    8.14     Additional Grantors.........................................................   24
    8.15     Releases....................................................................   24
    8.16     WAIVER OF JURY TRIAL........................................................   24
    8.17     Continuation of Liens Securing Obligations..................................   24

SCHEDULES

Schedule 1   Notice Addresses
Schedule 2   Pledged Stock
Schedule 3   Jurisdictions of Organization
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<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

            GUARANTEE AND COLLATERAL AGREEMENT, dated as of June 17, 2005, (a)
made by each of the signatories hereto (together with any other entity that may
become a party hereto as provided herein, the "Grantors"), in favor of JPMorgan
Chase Bank, N.A., as Collateral Agent (in such capacity, the "Collateral Agent")
for (i) the banks and other financial institutions or entities (the "Lenders")
from time to time parties to the Credit Agreement, dated as of June 17, 2005 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among TBC Corporation, a Delaware corporation ("Holdings"), TBC
Private Brands, Inc., a Delaware corporation ("TBC Private Brands") (Holdings
and TBC Private Brands, each a "Borrower" and together the "Borrowers"), the
Lenders, the Administrative Agent and the Co-Administrative Agent and (ii) The
Prudential Insurance Company of America ("Prudential") party to the Second
Amended and Restated Note Agreement dated as of April 1, 2003 (as amended,
supplemented or otherwise modified from time to time, the "Existing Note
Agreement") between Prudential and the Borrowers and party to the Note Purchase
Agreement dated as of April 1, 2003 (as amended, supplemented or otherwise
modified from time to time, the "Additional Note Agreement") among Prudential,
certain affiliates, managed accounts or funds of Prudential (the "Prudential
Affiliates") and the Borrowers (the Existing Note Agreement and the Additional
Note Agreement collectively referred to as the "Note Agreements") (the Lenders,
each Lender Affiliate Party to a Specified Hedge Agreement, Prudential and the
Prudential Affiliates being collectively referred to as the "Secured Parties")
and (b) with respect to Section 2 only, among the Collateral Agent for the
Lenders and each Lender Affiliate Party to a Specified Hedge Agreement,
Prudential, the Prudential Affiliates and each Guarantor.

                                   WITNESSETH:

            WHEREAS, pursuant to the Credit Agreement, the Lenders have
severally agreed to make extensions of credit to the Borrowers upon the terms
and subject to the conditions set forth therein, the proceeds of which shall be
used in part to refinance, terminate and replace the $273,500,000 Second Amended
and Restated Credit Agreement (the "Existing Credit Agreement"), dated as of
November 19, 2004 among the Borrowers, the Lenders party thereto, the
Administrative Agent and the Co-Administrative Agent;

            WHEREAS, pursuant to the Note Agreements, the Borrowers have
outstanding certain Series B Senior Notes, Series C Senior Notes (collectively,
as amended supplemented or otherwise modified from time to time, the "1996
Notes") and Series D Senior Notes (as amended, supplemented or otherwise
modified from time to time, the "2003 Notes" and, collectively with the 1996
Notes, referred to as the "Prudential Notes") held by Prudential;

            WHEREAS, the Prudential Notes and the obligations under the Existing
Credit Agreement are presently secured by, inter alia, certain liens granted by
the Grantors pursuant to the Guarantee and Collateral Agreement (the "Existing
Collateral Agreement"), dated as of March 31, 2003, made by TBC Private Brands
(formerly known as TBC Corporation) and each of the other Grantors party hereto,
in favor of the Collateral Agent, as amended by the First Amendment to the
Guarantee and Collateral Agreement, dated as of November 29, 2003;

            WHEREAS, the Borrowers are members of an affiliated group of
companies that includes each other Grantor;

            WHEREAS, the proceeds from the issuance of the Prudential Notes were
used and the proceeds of the extensions of credit under the Credit Agreement
will be used in part to enable the

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Borrowers to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

            WHEREAS, the Borrowers have requested that Prudential consent to the
Borrowers' execution of the Credit Agreement, which consent is required under
the Note Agreements, and Prudential has agreed to provide such consent,
provided, inter alia, that the Grantors shall have executed and delivered this
Agreement to the Collateral Agent for the ratable benefit of the Secured
Parties;

            WHEREAS, the Borrowers and the other Grantors are (and were at the
time of the issuance of the Prudential Notes) engaged in related businesses, and
each Grantor will (and did at the time of the issuance of the Prudential Notes)
derive substantial direct and indirect benefit from the making of the extensions
of credit under the Credit Agreement and the issuance of the Prudential Notes;

            WHEREAS, it is a condition precedent to the obligation of the
Lenders to make their respective extensions of credit to the Borrowers under the
Credit Agreement and to the amendment of the Prudential Notes and the Note
Agreements that the Grantors shall have executed and delivered this Agreement to
the Collateral Agent for the ratable benefit of the Secured Parties; and

            NOW, THEREFORE, in consideration of the premises and to induce the
Lenders to enter into the Credit Agreement and to make their respective
extensions of credit to the Borrowers thereunder and to induce Prudential to
give its consent required under the Note Agreements, each Grantor hereby agrees
with the Collateral Agent, for the ratable benefit of the Secured Parties, as
follows:

                            SECTION 1. DEFINED TERMS

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

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

            "ABR Loans": as defined in the Credit Agreement.

            "Additional Note Agreement": as defined in the preamble hereto.

            "Administrative Agent": as defined in the Credit Agreement.

            "Affiliate": as defined in the Credit Agreement.

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

            "Borrower Obligations": the collective reference to the unpaid
principal of and interest on the Prudential Notes, the Loans and Reimbursement
Obligations and all other obligations and liabilities of each Borrower
(including, without limitation, interest accruing at the then applicable rate
provided in the Credit Agreement, the Note Agreements and the Prudential Notes
after the maturity of the Loans, the Reimbursement Obligations and the
Prudential Notes and interest accruing at the then applicable rate provided in
the Credit Agreement, the Note Agreements and the Prudential Notes, as
applicable, after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to each of the
Borrowers, whether or not a claim for post-filing

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or post-petition interest is allowed in such proceeding) to the Collateral Agent
or any Secured Party (or, in the case of any Specified Hedging Agreement, any
Affiliate of any applicable Secured Party), whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, the Credit Agreement, the
Note Agreements, the Prudential Notes, this Agreement, any Mortgage, any Letter
of Credit and any guarantee of each of the Borrower's obligations in respect of
any of the foregoing as from time to time in effect, any Specified Hedging
Agreement or any other document made, delivered or given in connection with any
of the foregoing, in each case whether on account of principal, interest,
reimbursement obligations, Make-Whole Amounts, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Collateral Agent or to the Secured Parties that are required
to be paid by any of the Borrowers pursuant to the terms of any of the foregoing
agreements) (collectively, but not including any Specified Hedging Agreement the
"Loan Documents").

            "Borrower": as defined in the preamble hereto.

            "Business Day": as defined in the Credit Agreement.

            "Capital Stock" shall mean any class of capital stock, share capital
or similar equity interest of a Person.

            "Co-Administrative Agent": as defined in the Credit Agreement.

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

            "Collateral Agent": as defined in the preamble hereto.

            "Collateral": as defined in Section 3.

            "Commitments": as defined in the Credit Agreement.

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

            "Credit Agreement": as defined in the preamble hereto.

            "Default": shall mean a "Default" as defined in the Credit Agreement
or in either of the Note Agreements.

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

            "Event of Default": shall mean an "Event of Default" as defined in
the Credit Agreement or in either of the Note Agreements.

            "Existing Collateral Agreement": as defined in the recitals hereto.

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            "Existing Credit Agreement": as defined in the recitals hereto.

            "Existing Note Agreement": as defined in the preamble hereto.

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

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

            "GAAP": as defined in the Credit Agreement.

            "Governmental Authority": as defined in the Credit Agreement.

            "Grantors": as defined in the preamble hereto.

            "Guarantee Related Payment": as defined in Section 2.9.

            "Guarantee": as defined in Section 2.1(a).

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

            "Guarantors": the collective reference to each Grantor other than
Merchant's, Incorporated.

            "Hedging Agreement": as defined in the Credit Agreement.

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

            "Intellectual Property Certificate": a certificate dated the date
hereof and signed by the President, Vice President or a Financial Officer of
Holdings, listing all Intellectual Property owned by each Grantor in its own
name on the date hereof, other than Trademarks or Copyrights arising under
common law or state law, as to which no registration or other filing has been
made, in a form reasonably satisfactory to the Collateral Agent.

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

            "Intercreditor Agreement": the Intercreditor Agreement among
Prudential, the Prudential Affiliates, each Lender, the Administrative Agent,
the Co-Administrative Agent and the Collateral Agent, dated as of June 17, 2005.

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

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

            "Lender Party": as defined in Section 2.6.

            "Lenders": as defined in the preamble hereto.

            "Letter of Credit": as defined in the Credit Agreement.

            "Lien": as defined in the Credit Agreement.

            "Loan Document(s)" is defined within the definition of "Borrower
Obligations".

            "Loans": as defined in the Credit Agreement.

            "Make-Whole Amount": as defined in the Note Agreements.

            "Mortgage": as defined in the Credit Agreement.

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

            "Note Agreements": as defined in the preamble hereto.

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

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

            "Person": shall mean and include an individual, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization, a limited
liability company and a government or any department or agency thereof.

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

            "Pledged Stock": the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options, interests or rights
of any nature whatsoever in respect of the Capital Stock of any Person that may
be issued or granted to, or held by, any Grantor while this Agreement is in
effect; provided that in no event shall more than 66% of the total outstanding
Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required to be
pledged hereunder.

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

            "Prudential Affiliates": as defined in the preamble hereto.

            "Prudential Notes": as defined in the recitals hereto.

            "Prudential": as defined in the preamble hereto.

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

            "Reimbursement Obligations": as defined in the Credit Agreement.

            "Required Lenders": as defined in the Credit Agreement.

            "Required Noteholders": shall mean the holder or holders of at least
51% of the aggregate principal amount of each of the 1996 Notes and the 2003
Notes, voting as separate classes.

            "Requirement of Law": as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

            "Secured Parties": as defined in the preamble hereto.

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

            "Specified Hedging Agreement": any Hedging Agreement entered into by
the Borrower and any Lender or Affiliate thereof in respect of interest rates.

            "Subsidiary": as defined in the Credit Agreement.

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

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

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

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                                                                               7

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

                              SECTION 2. GUARANTEE

               2.1 Guarantee. (a) Each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees (the "Guarantee") to the
Secured Parties and their respective successors, indorsees, transferees and
assigns, the prompt and complete payment and performance by the Borrowers when
due (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations; provided that each Guarantor which is a Borrower shall
only guarantee the Borrower Obligations of the other Borrower.

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

      (c) Each Guarantor agrees that the Borrower Obligations may at any time
and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Collateral Agent or any Secured Party
hereunder. Each Guarantor shall give notice at the time of any payment by it
hereunder to the recipient of such payment and to the Collateral Agent.

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

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

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

               2.3 No Subrogation. Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Collateral Agent or any Secured Party, no Guarantor shall be entitled to be
subrogated to any of the rights of the Collateral Agent or any

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

               2.4 Amendments, etc. with respect to the Borrower Obligations.
Each Guarantor shall remain obligated hereunder notwithstanding that, without
any reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Collateral Agent or any Secured Party may be rescinded
by the Collateral Agent or such Secured Party and any of the Borrower
Obligations continued, and the Borrower Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Collateral Agent or any
Secured Party, and the Credit Agreement, the Note Agreements, the Prudential
Notes and the other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, and any collateral security, guarantee or right
of offset at any time held by the Collateral Agent or any Secured Party for the
payment of the Borrower Obligations may be sold, exchanged, waived, surrendered
or released. Neither the Collateral Agent nor any Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

               2.5 Guarantee Absolute and Unconditional. Each Guarantor waives
any and all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations and notice of or proof of reliance by the Collateral Agent
or any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the guarantee contained in this Section 2; and all dealings between any of
the Borrowers and any of the Guarantors, on the one hand, and the Collateral
Agent and the Secured Parties, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon any
of the Borrowers or any of the Guarantors with respect to the Borrower
Obligations. Each Guarantor understands and agrees that the guarantee contained
in this Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity or enforceability of the
Credit Agreement, the Note Agreements, the Prudential Notes or any other Loan
Document, any of the Borrower Obligations or any collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Collateral Agent or any Secured Party, (b) any defense, set-off
or counterclaim (other than a defense of payment or performance in full) which
may at any time be available to or be asserted by any Borrower or any other
Person against the Collateral Agent or any Secured Party, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of such Borrower
or such Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal

<PAGE>

                                                                               9

discharge of such Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against any Guarantor, the Collateral Agent or any Secured
Party may, but shall be under no obligation to, make a similar demand on or
otherwise pursue such rights and remedies as it may have against any of the
Borrowers, any other Guarantor or any other Person or against any collateral
security or guarantee for the Borrower Obligations or any right of offset with
respect thereto, and any failure by the Collateral Agent or any Secured Party to
make any such demand, to pursue such other rights or remedies or to collect any
payments from any Borrower, any other Guarantor or any other Person or to
realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of any Borrower, any other Guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Collateral Agent or any Secured Party
against any Guarantor. For the purposes hereof "demand" shall include the
commencement and continuance of any legal proceedings.

               2.6 Remedies. Any one or more of Prudential, each Prudential
Affiliate and the Co-Administrative Agent (for the benefit of the Lenders) (each
a "Lender Party") may, either individually or collectively, seek to enforce the
obligations of any Guarantor under and in respect of the Guarantee. No Lender
Party shall be required to (a) prosecute, collect or seek to enforce or resort
to any remedies against any Borrower or any other Person liable on any of the
Borrower Obligations, (b) join any Borrower or any other Person liable on any of
the Borrower Obligations in any action in which any Lender Party prosecutes
collection or seeks to enforce or resort to any remedies against any Borrower or
other Person liable on any of the Borrower Obligations, or (c) seek to enforce
or resort to any remedies with respect to any Liens granted to (or benefiting,
directly or indirectly) any Lender Party or any other Person liable on any of
the Borrower Obligations.

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

               2.8 Payments. Each Guarantor hereby guarantees that payments
hereunder (a) in respect of the Credit Agreement, the Loans and the
Reimbursement Obligations, will be paid to the Collateral Agent without set-off
or counterclaim in Dollars at the Funding Office, and (b) in respect of the Note
Agreements and the Prudential Notes, will be paid to the holders of the
Prudential Notes, without set-off or counterclaim, in the manner provided in the
Note Agreements.

               2.9 Application of Guarantee Payments and Recoveries

      (a) Each payment or other recovery from a Guarantor under or in respect of
its obligations under this Section 2 (each, a "Guarantee Related Payment") shall
belong to each Secured Party, in accordance with their respective "Proportionate
Shares", as defined below. If any Secured Party shall obtain any payment or
other recovery (whether voluntary, involuntary, by application of set-off or
otherwise) on account of the Guarantee in excess of its Proportionate Share of
all payments then or thereafter obtained by the Secured Parties with respect to
the Guarantee, then such party shall give prompt notice to the Collateral Agent
indicating the payment or other recovery obtained. Such Secured Party shall
purchase from the other Secured Parties such participation in the indebtedness
of the Guarantors under this Agreement as shall be necessary to cause such
purchasing party to share such payment or other recovery

<PAGE>

                                                                              10

ratably, based on all Proportionate Shares, with all of the Secured Parties;
provided, however, that if all or any portion of such payment or other recovery
is thereafter recovered from such purchasing party, the purchase price shall be
rescinded, and each other Secured Party shall repay to the purchasing party the
purchase price, to the ratable extent of such recovery in proportion to the
amount received by such other Secured Party, together with an amount equal to
such Secured Party's ratable share (according to the proportion of (x) the
amount of such Secured Party's required repayment to the purchasing party to (y)
the total amounts recovered from the purchasing party) of any interest or other
amount paid or payable by the purchasing party in respect of the total amount so
recovered.

      (b) The term "Proportionate Share", as used herein, shall mean at any
time, for each Secured Party, a fraction (a) the numerator of which is the
aggregate principal amount of the Obligations held by such party at such time,
and (b) the denominator of which is the aggregate principal amount of the
Obligations held by all Secured Parties at such time.

                     SECTION 3. GRANT OF SECURITY INTEREST

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

      (a) all Accounts;

      (b) all Chattel Paper;

      (c) all Deposit Accounts;

      (d) all Documents (other than title documents with respect to vehicles);

      (e) all Equipment;

      (f) all General Intangibles;

      (g) all Instruments;

      (h) all Intellectual Property;

      (i) all Inventory;

      (j) all Investment Property;

      (k) all Letter-of-Credit Rights;

      (l) all Commercial Tort Claims;

      (m) all other property not otherwise described above;

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

<PAGE>

                                                                              11

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

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

                   SECTION 4. REPRESENTATIONS AND WARRANTIES

            To induce the Administrative Agent and the Lenders to enter into the
Credit Agreement and to make their respective extensions of credit to the
Borrowers thereunder and to induce Prudential to give its consent under, and to
amend the Note Agreements, each Grantor hereby represents and warrants to the
Collateral Agent and each Secured Party that:

               4.1 Execution, Delivery and Performance. (a) The execution,
delivery and performance by it of this Agreement have been duly authorized by
all necessary corporate action and do not and will not contravene its bylaws or
its articles of incorporation.

      (b) The execution, delivery and performance by such Grantor of this
Agreement do not and will not contravene applicable law or, except as permitted
under the Credit Agreement and the Note Agreements, any contractual restriction
binding on or affecting such Grantor or any of its properties, and do not and
will not result in or require the creation of any Lien, security interest or
other charge of encumbrance upon or with respect to any of such Grantor's
properties except as may be created by this Agreement.

      (c) Except with regard to Liens permitted to exist on the Collateral by
the Credit Agreement and the Note Agreements, no authorization or approval or
other action by, and no notice to or filing with, any Person or entity not
otherwise obtained is required for the due execution, delivery and performance
by such Grantor of this Agreement.

      (d) This Agreement is a legal, valid and binding obligation of such
Grantor, enforceable against such Grantor, in accordance with its terms.

      (e) There is no action, suit or proceeding pending or, to the knowledge of
such Grantor, threatened against or otherwise affecting it before any
Governmental Authority or arbitrator which would prohibit the execution,
delivery and performance by it of this Agreement.

      (f) Such Grantor is a separately incorporated or organized entity that
operates independently from each other Grantor. Such Grantor (other than any of
the Borrowers) utilizes certain accounting, cash management, management and
other operational and organizational functions of the Borrowers for operational
and organizational efficiency, as well as to assist in the preparation of tax
returns on a consolidated basis. In the event these functions were no longer
provided to such Grantor by the

<PAGE>

                                                                              12

Borrowers, such Grantor would need to make the necessary adjustments in its
operations and organizational functions, in order to replace such functions. The
majority of the purchasing functions of such Grantor are handled by the
Borrowers, although some of these functions may be occasionally shared for
efficiency or as special circumstances warrant.

               4.2 Title; No Other Liens Except for the security interest
granted to the Collateral Agent for the ratable benefit of the Secured Parties
pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Credit Agreement and the Note Agreements, such Grantor owns
each item of the Collateral free and clear of any and all Liens or claims of
others. Except (i) with regard to Liens permitted to exist on the Collateral by
the Credit Agreement and the Note Agreements, and (ii) for financing statements
evidencing operating lease transactions, no financing statement or other public
notice with respect to all or any part of the Collateral is on file or of record
in any public office, except such as have been filed in favor of the Collateral
Agent, for the ratable benefit of the Secured Parties, pursuant to this
Agreement or as are permitted by the Credit Agreement and the Note Agreements.
For the avoidance of doubt, it is understood and agreed that any Grantor may, as
part of its business, grant licenses to third parties to use Intellectual
Property owned or developed by a Grantor. For purposes of this Agreement and the
other Loan Documents, such licensing activity shall not constitute a "Lien" on
such Intellectual Property. Each of the Collateral Agent and each Secured Party
understands that any such licenses may be exclusive to the applicable licensees,
and such exclusivity provisions may limit the ability of the Collateral Agent to
utilize, sell, lease or transfer the related Intellectual Property or otherwise
realize value from such Intellectual Property pursuant hereto.

               4.3 Perfected Priority Liens. The security interests granted
pursuant to this Agreement (a) to the extent they can be perfected under the
UCC, constitute valid perfected security interests in all of the Collateral in
favor of the Collateral Agent, for the ratable benefit of the Secured Parties,
as collateral security for such Grantor's Obligations, enforceable in accordance
with the terms hereof and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except for Liens permitted by the Credit Agreement
and the Note Agreements and unrecorded Liens which have priority over the Liens
on the Collateral by operation of law.

               4.4 Jurisdiction of Organization. On the date hereof, such
Grantor's jurisdiction of organization and identification number from the
jurisdiction of organization (if any) are specified on Schedule 3. Such Grantor
has furnished to the Collateral Agent a certified charter, certificate of
incorporation or other organization document and long-form good standing
certificate as of a date which is recent to the date hereof.

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

               4.6 Investment Property. (a) The shares of Pledged Stock pledged
by such Grantor hereunder constitute all the issued and outstanding shares of
all classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock, if less, 66% of the outstanding Foreign
Subsidiary Voting Stock of each relevant Issuer.

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

      (c) To the knowledge of the Grantors, each of the Pledged Notes
constitutes the legal, valid and binding obligation of the obligor with respect
thereto, enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other

<PAGE>

                                                                              13

similar laws relating to or affecting creditors' rights generally, general
equitable principles (whether considered in a proceeding in equity or at law)
and an implied covenant of good faith and fair dealing.

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

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

               4.8 Intellectual Property. The Intellectual Property Certificate
lists all Intellectual Property owned by such Grantor in its own name on the
date hereof, other than Trademarks or Copyrights arising under common law or
state law, as to which no registration or other filing has been made.

                              SECTION 5. COVENANTS

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

               5.1 Delivery of Instruments, Certificated Securities and Chattel
Paper. If an Event of Default shall occur and be continuing and if any amount
payable under or in connection with any of the Collateral shall be or become
evidenced by any Instrument, Certificated Security or Chattel Paper, such
Instrument, Certificated Security or Chattel Paper shall be immediately
delivered to the Collateral Agent, duly indorsed in a manner satisfactory to the
Collateral Agent, to be held as Collateral pursuant to this Agreement.

               5.2 Maintenance of Insurance. Such Grantor will have and maintain
insurance at its expense at all times and in such amounts, in such form,
containing such terms and written by such companies as may be reasonably
satisfactory to the Collateral Agent (and as more particularly set forth in the
Credit Agreement and the Note Agreements). All policies of insurance shall be
payable to the Collateral Agent and such Grantor, as its interests may appear,
shall name the Collateral Agent as a co-insured party, and shall provide for
thirty (30) days' written notice of cancellation or modification to the
Collateral Agent. So long as any Event of Default exists, the Collateral Agent
is authorized by such Grantor to act as its attorney in collecting, adjusting,
settling or canceling such insurance and endorsing any drafts drawn by insurers.
The Collateral Agent may apply any proceeds of insurance received by it to the
Obligations, whether due or not; provided, however, that the Collateral Agent
will hold such proceeds as a special deposit for use by such Grantor to repair,
restore or replace the assets which gave rise to such proceeds, or to acquire
other tangible assets to be used in such Grantor's businesses, within one year
after the event giving rise to such proceeds, so long as (i) such Grantor is
taking steps to repair, restore or replace such Collateral, or to acquire such
tangible assets, with due diligence and in good faith and (ii) no Event of
Default shall have occurred. Such Grantor will immediately notify the Collateral
Agent of any damage to or loss of Collateral in excess of $5,000,000. Not later
than ten (10) days prior to the expiration date of each policy of insurance then
in effect, such Grantor shall deliver to the Collateral Agent a certificate of
insurance certifying as to (i) the extension of such policy or the issuance of a
renewal policy therefor, describing the same in reasonable detail satisfactory
to the Collateral Agent and (ii) the payment in full of the portion of the
premium therefor then due and payable (or accompanied by other proof of such
payment satisfactory to the Collateral Agent). Such Grantor shall be required
forthwith to notify the Collateral Agent (by telephone, confirmed in writing) if
such Grantor shall determine at any time not to, or at any time be unable to,
extend or renew any such policy then in effect.

<PAGE>

                                                                              14

Notwithstanding the foregoing, such Grantor, pursuant to Article Nine of the New
York UCC, shall bear the risk of loss of Collateral.

               5.3 Payment of Obligations. Such Grantor will pay and discharge
or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all taxes, assessments and governmental charges or levies
imposed upon the Collateral or in respect of income or profits therefrom, as
well as all claims of any kind (including, without limitation, claims for labor,
materials and supplies) against or with respect to the Collateral, except that
no such charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings, reserves in conformity with
GAAP with respect thereto have been provided on the books of such Grantor and
such proceedings could not reasonably be expected to result in the sale,
forfeiture or loss of any material portion of the Collateral or any interest
therein.

               5.4 Maintenance of Perfected Security Interest; Further
Documentation. (a) Such Grantor shall defend the security interest created by
this Agreement against the claims and demands of all Persons whomsoever, subject
to the rights of such Grantor under the Loan Documents to dispose of the
Collateral.

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

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

               5.5 Changes in Locations, Name, etc. Such Grantor will not,
except upon 30 days' prior written notice to the Collateral Agent and delivery
to the Collateral Agent of all additional executed financing statements and
other documents reasonably requested by the Collateral Agent to maintain the
validity, perfection and priority of the security interests provided for herein:

      (i) change its jurisdiction of organization from that referred to in
Section 4.4; or

      (ii) change its name.

               5.6 Notices. Such Grantor will advise the Collateral Agent and
the Secured Parties promptly, in reasonable detail, of:

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

<PAGE>

                                                                              15

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

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

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

      (c) In the case of each Grantor which is an Issuer, such Issuer agrees
that (i) it will be bound by the terms of this Agreement relating to the
Investment Property issued by it and will comply with such terms insofar as such
terms are applicable to it, and (ii) it will notify the Collateral Agent
promptly in writing of the occurrence of any of the events described in Section
5.7(a) with respect to the Investment Property issued by it.

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

<PAGE>

                                                                              16

                         SECTION 6. REMEDIAL PROVISIONS

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

      (b) The Collateral Agent hereby authorizes each Grantor to collect such
Grantor's Receivables, and the Collateral Agent may curtail or terminate said
authority at any time after the occurrence and during the continuance of an
Event of Default. If required by the Collateral Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Collateral Agent if required, in
a Collateral Account maintained under the sole dominion and control of the
Collateral Agent, subject to withdrawal by the Collateral Agent for the account
of the Secured Parties only as provided in Section 6.5, and (ii) until so turned
over, shall be held by such Grantor in trust for the Collateral Agent and the
Secured Parties, segregated from other funds of such Grantor. Each such deposit
of Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

      (c) At the Collateral Agent's request at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall deliver to the
Collateral Agent all original and other documents evidencing, and relating to,
the agreements and transactions which gave rise to the Receivables, including,
without limitation, all original orders, invoices and shipping receipts.

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

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

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

<PAGE>

                                                                              17

               6.3 Pledged Stock. (a) Unless an Event of Default shall have
occurred and be continuing and the Collateral Agent shall have given notice to
the relevant Grantor of the Collateral Agent's intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted
to receive all cash dividends paid in respect of the Pledged Stock and all
payments made in respect of the Pledged Notes, in each case paid in the normal
course of business of the relevant Issuer and consistent with past practice, to
the extent permitted in the Credit Agreement and the Note Agreements, and to
exercise all voting and corporate or other organizational rights with respect to
the Investment Property.

      (b) If an Event of Default shall occur and be continuing and the
Collateral Agent shall give notice of its intent to exercise such rights to the
relevant Grantor or Grantors, the Collateral Agent shall have the right to
receive any and all cash dividends, payments or other Proceeds paid in respect
of the Investment Property and make application thereof to the Obligations in
such order and as otherwise provided in the Intercreditor Agreement. If an Event
of Default shall occur and be continuing and either (A) the Co-Administrative
Agent shall have, pursuant to the request of the Required Lenders, by notice to
the Borrowers (i) terminated the Revolving Credit Commitments and/or (ii)
declared the Loans then outstanding to be due and payable in whole, or (B) any
or all of the Prudential Notes shall have become immediately due and payable
pursuant to Section 7.1 of the respective Note Agreement, then any or all of the
Investment Property shall at the request of the Collateral Agent be registered
in the name of the Collateral Agent or its nominee, and the Collateral Agent or
its nominee may thereafter exercise (x) all voting, corporate and other rights
pertaining to such Investment Property at any meeting of shareholders of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate or
other organizational structure of any Issuer, or upon the exercise by any
Grantor or the Collateral Agent of any right, privilege or option pertaining to
such Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Collateral Agent may determine), all without liability except
to account for property actually received by it, but the Collateral Agent shall
have no duty to any Grantor to exercise any such right, privilege or option and
shall not be responsible for any failure to do so or delay in so doing.

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

               6.4 Proceeds to be Turned Over To Collateral Agent. In addition
to the rights of the Collateral Agent and the Secured Parties specified in
Section 6.1 with respect to payments of Receivables, if an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor consisting
of cash, checks and other near-cash items shall be held by such Grantor in trust
for the Collateral Agent and the Secured Parties, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over
to the Collateral Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Collateral Agent, if required). All Proceeds
received by the Collateral Agent hereunder shall be held by the Collateral Agent
in a Collateral Account maintained under its sole

<PAGE>

                                                                              18

dominion and control. All Proceeds while held by the Collateral Agent in a
Collateral Account (or by such Grantor in trust for the Collateral Agent and the
Lenders) shall continue to be held as collateral security for all the
Obligations and shall not constitute payment thereof until applied as provided
in Section 6.5.

               6.5 Application of Proceeds. The Collateral Agent shall apply any
Proceeds constituting Collateral (other than any Guarantee Related Payment,
which payments shall be applied in accordance with Section 2.9 hereof) received
by the Collateral Agent pursuant to or in connection with enforcement of this
Agreement or upon the commencement of and during the continuance of any
proceedings by or against any Grantor of any type referred to in Article VII(h)
of the Credit Agreement or Section 7.1(k) of the Note Agreements as provided in
the Intercreditor Agreement (notwithstanding any other provision herein to the
contrary). Any balance of such Proceeds remaining after the Obligations shall
have been paid in full shall be paid over to the Borrowers or to whomsoever may
be lawfully entitled to receive the same.

               6.6 Code and Other Remedies. If an Event of Default shall occur
and be continuing, the Collateral Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the New York UCC or any other applicable law. Without limiting the generality of
the foregoing, the Collateral Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below or required by any Loan Document) to or
upon any Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Collateral Agent or any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
The Collateral Agent or any Secured Party shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in any Grantor, which right or equity is
hereby waived and released. Each Grantor further agrees, at the Collateral
Agent's request, to assemble the Collateral and make it available to the
Collateral Agent at places which the Collateral Agent shall reasonably select,
whether at such Grantor's premises or elsewhere. The Collateral Agent shall
apply the net proceeds of any action taken by it pursuant to this Section 6.6,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Collateral Agent and the Secured Parties hereunder, including, without
limitation, reasonable attorneys' fees and disbursements, to the payment in
whole or in part of the Obligations, in such order as the Collateral Agent may
elect, and only after such application and after the payment by the Collateral
Agent of any other amount required by any provision of law, including, without
limitation, Section 9-615(a)(3) of the New York UCC, need the Collateral Agent
account for the surplus, if any, to any Grantor. To the extent permitted by
applicable law, each Grantor waives all claims, damages and demands it may
acquire against the Collateral Agent or any Secured Party arising out of the
exercise by them of any rights hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by law, such notice shall be
deemed reasonable and proper if given at least 10 days before such sale or other
disposition.

               6.7 Sale of Pledged Stock. Each Grantor recognizes that the
Collateral Agent may be unable to effect a public sale of any or all the Pledged
Stock, by reason of certain prohibitions contained

<PAGE>

                                                                              19

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

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

                        SECTION 7. THE COLLATERAL AGENT

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

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

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

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

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

      (v) (1) direct any party liable for any payment under any of the
   Collateral to make payment of any and all moneys due or to become due
   thereunder directly to the Collateral Agent or as the Collateral Agent shall
   direct; (2) ask or demand for, collect, and receive payment of and receipt
   for, any and all moneys, claims and other amounts due or to become due at any
   time in respect of or arising out of any Collateral; (3) sign and indorse any
   invoices, freight or express bills, bills of

<PAGE>

                                                                              20

   lading, storage or warehouse receipts, drafts against debtors, assignments,
   verifications, notices and other documents in connection with any of the
   Collateral; (4) commence and prosecute any suits, actions or proceedings at
   law or in equity in any court of competent jurisdiction to collect the
   Collateral or any portion thereof and to enforce any other right in respect
   of any Collateral; (5) defend any suit, action or proceeding brought against
   such Grantor with respect to any Collateral; (6) settle, compromise or adjust
   any such suit, action or proceeding and, in connection therewith, give such
   discharges or releases as the Collateral Agent may deem appropriate; (7)
   assign any Copyright, Patent or Trademark (along with the goodwill of the
   business to which any such Copyright, Patent or Trademark pertains),
   throughout the world for such term or terms, on such conditions, and in such
   manner, as the Collateral Agent shall in its sole discretion determine; and
   (8) generally, sell, transfer, pledge and make any agreement with respect to
   or otherwise deal with any of the Collateral as fully and completely as
   though the Collateral Agent were the absolute owner thereof for all purposes,
   and do, at the Collateral Agent's option and such Grantor's expense, at any
   time, or from time to time, all acts and things which the Collateral Agent
   deems necessary to protect, preserve or realize upon the Collateral and the
   Collateral Agent's and the Secured Parties' security interests therein and to
   effect the intent of this Agreement, all as fully and effectively as such
   Grantor might do.

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

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

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

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

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

<PAGE>

                                                                              21

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

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

                            SECTION 8. MISCELLANEOUS

               8.1 Amendments in Writing. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except
(a) with the consent of the Required Noteholders and (b) in accordance with
Section 9.02(b) of the Credit Agreement.

               8.2 Notices. All notices, requests and demands to or upon the
Collateral Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 9.01 of the Credit Agreement, and, in the case of any
Grantor, the Note Agreements; provided that any such notice, request or demand
to or upon any Guarantor shall be addressed to such Guarantor at its notice
address set forth on Schedule 1.

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

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

<PAGE>

                                                                              22

allocated fees and expenses of in-house counsel) to each Secured Party and of
counsel to the Collateral Agent.

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

      (c) Each Guarantor agrees to pay, and to save the Collateral Agent and the
Secured Parties harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the
Borrowers would be required to do so pursuant to Section 9.03 of the Credit
Agreement or pursuant to Section 11.2 of the Note Agreements.

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

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

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

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

               8.8 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such

<PAGE>

                                                                              23

prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

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

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

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

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

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

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

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

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

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

               8.13 Acknowledgements. Each Grantor hereby acknowledges that:

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

<PAGE>

                                                                              24

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

      (c) no joint venture is created hereby or by the Credit Agreement, the
Note Agreements, the Prudential Notes or the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Secured
Parties or among the Grantors and the Secured Parties.

               8.14 Additional Grantors. Each Subsidiary of any of the Borrowers
that is required to become a party to this Agreement pursuant to Section 5.11 of
the Credit Agreement and Section 5.6 of the Note Agreements shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such
Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

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

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

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

               8.17 Continuation of Liens Securing Obligations. In addition to
constituting new Liens securing all of the Obligations, the Liens created hereby
shall be deemed to be a continuation and confirmation of the Liens created
pursuant to the Existing Collateral Agreement and an amendment and restatement
of the terms and conditions thereof.

<PAGE>

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

                                                TBC CORPORATION

                                                By: /s/ Tim Miller
                                                   -----------------------------
                                                    Name: Tim Miller
                                                    Title: VP and Treasurer

                                                TBC PRIVATE BRANDS, INC.

                                                By: /s/ Tim Miller
                                                   -----------------------------
                                                    Name: Tim Miller
                                                    Title: VP and TReasurer

                                                BIG O TIRES, INC.
                                                CARROLL'S, INC.
                                                NORTHERN STATES TIRE, INC.
                                                TBC INTERNATIONAL INC.
                                                TBC RETAIL ENTERPRISES, INC.
                                                BIG O DEVELOPMENT, INC.
                                                O ADVERTISING, INC.
                                                BIG O TIRE OF IDAHO, INC.
                                                BIG O RETAIL ENTERPRISES, INC.
                                                TIRE KINGDOM, INC.
                                                MERCHANT'S INCORPORATED
                                                NTW INCORPORATED

                                                By: /s/ Tim Miller
                                                   -----------------------------
                                                    Name: Tim Miller
                                                    Title: VP and Treasurer

                                                TBC BRANDS, LLC

                                                By: /s/ Gary M. Paulson
                                                   -----------------------------
                                                    Name: Gary M. Paulson
                                                    Title: Manager and Secretary

                     TBC GUARANTEE AND COLLATERAL AGREEMENT

<PAGE>

                                                TBC CAPITAL, LLC

                                                By: /s/ Tim Miller
                                                   -----------------------------
                                                    Name: Tim Miller
                                                    Title: VP and Treasurer

                                                TBC PRIVATE BRANDS OF TEXAS, LLC

                                                By: /s/ Tim Miller
                                                   -----------------------------
                                                    Name: Tim Miller
                                                    Title: VP and Treasurer

                     TBC GUARANTEE AND COLLATERAL AGREEMENT

<PAGE>

                                                JPMORGAN CHASE BANK, N.A.,|
                                                    as Collateral Agent

                                                By: /s/ Steve Willmann
                                                    ----------------------------
                                                    Name: Steve Willmann
                                                    Title: Vice President

                     TBC GUARANTEE AND COLLATERAL AGREEMENT

<PAGE>

                           THE PRUDENTIAL INSURANCE COMPANY OF
                           AMERICA

                           By: /s/ Billy B. Greer
                              -------------------
                               Name: Billy B. Greer
                               Title: Senior Vice President

                           PRUCO LIFE INSURANCE COMPANY

                           By: /s/ Billy B. Greer
                              -------------------
                               Name: Billy B. Greer
                               Title: Senior Vice President

                           RGA REINSURANCE COMPANY

                           By: Prudential Private Placement Investors, L.P., as
                               Investment Advisor

                               By: Prudential Private Placement Investors, Inc.,
                                   General Partner

                                   By: /s/ Billy B. Greer
                                       ------------------
                                       Name: Billy B. Greer
                                       Title: Senior Vice President

                           BAYSTATE INVESTMENTS, LLC

                           By: Prudential Private Placement Investors, L.P., as
                               Investment Advisor

                               By: Prudential Private Placement Investors, Inc.,
                                   General Partner

                                   By: /s/ Billy B. Greer
                                       ------------------
                                       Name: Billy B. Greer
                                       Title: Senior Vice President

                     TBC GUARANTEE AND COLLATERAL AGREEMENT

<PAGE>

                           UNITED OF OMAHA LIFE INSURANCE COMPANY

                           By: Prudential Private Placement Investors, L.P., as
                               Investment Advisor

                               By: Prudential Private Placement Investors, Inc.,
                                   General Partner

                                   By: /s/ Billy B. Greer
                                       ------------------
                                       Name: Billy B. Greer
                                       Title: Senior Vice President

                     TBC GUARANTEE AND COLLATERAL AGREEMENT

<PAGE>

                                                                      Schedule 1

                         NOTICE ADDRESSES OF GUARANTORS

All notices, requests or demands to or upon any Guarantor shall be addressed to
such Guarantor:

                               c/o TBC Corporation
                                    Suite 211
                               7111 Fairway Drive
                          Palm Beach Gardens, FL 33418

<PAGE>

                                                                      Schedule 2

                          DESCRIPTION OF PLEDGED STOCK

PLEDGED STOCK:

<TABLE>
<CAPTION>
        Name of Issuer               Class of Stock              Cert. No.          No. of Shares
        --------------               --------------              ---------          -------------
<S>                                  <C>                         <C>                <C>
TBC Private Brands, Inc.                 Common                     N-1                      1

TBC International Inc.                   Common                      2                       1

Carroll's, Inc.                          Common                     N-2                    100

Big O Tires, Inc.                        Common                      2                     100

TBC Retail Enterprises, Inc.             Common                      1                     100

Big O Tire of Idaho, Inc.                Common                     R-1                  6,002

O Advertising, Inc.                      Common                     R-1                 31,000

Tire Kingdom, Inc.                       Common                      7                  60,000

Northern States Tire, Inc.               Common                      2                     100

Big O Retail Enterprises, Inc.           Common                      2                  10,000

Big O Development, Inc.                  Common                     R-1                 20,000

Merchant's, Incorporated                 Common                      5                     100

NTW Incorporated                         Common                      23                    970
</TABLE>

UNCERTIFICATED SECURITIES:

<TABLE>
<CAPTION>
Name of Issuer                                     Percentage of Membership Interests
--------------                                     ----------------------------------
<S>                                                <C>
TBC Brands, LLC                                    100% owned by TBC Private Brands, Inc.

TBC Capital, LLC                                   90% owned by TBC Private Brands, Inc.
                                                            5% owned by Carroll's, Inc.
                                                            5% owned by Tire Kingdom, Inc.

TBC Private Brands of Texas, LLC                   100% owned by TBC Private Brands, Inc.
</TABLE>

<PAGE>

                                                                      Schedule 3

                    LOCATION OF JURISDICTION OF ORGANIZATION

<TABLE>
<CAPTION>
           Grantor                          Jurisdiction of Organization     State Corporate Identification No.
           -------                          ----------------------------     ----------------------------------
<S>                                         <C>                              <C>
TBC Corporation                                       Delaware                           3882110

TBC Private Brands, Inc.                              Delaware                           0759827

TBC International Inc.                                Delaware                           2135760

Carroll's, Inc.                                       Georgia                            J419202

Big O Tires, Inc.                                     Nevada                             C7989-1982

TBC Retail Enterprises, Inc.                          Delaware                           3230500

Big O Tire of Idaho, Inc.                             Idaho                              C41796

O Advertising, Inc.                                   Colorado                           19911014173

Tire Kingdom, Inc.                                    Florida                            571088

Merchant's, Incorporated                              Delaware                           3095411

NTW Incorporated                                      Delaware                           0783281

Northern States Tire, Inc.                            Delaware                           2532260

Big O Retail Enterprises, Inc.                        Colorado                           19881085620

Big O Development, Inc.                               Colorado                           19881105247

TBC Brands, LLC                                       Delaware                           3434801

TBC Capital, LLC                                      Delaware                           3434796

TBC Private Brands of Texas, LLC                      Delaware                           3867436
</TABLE>

<PAGE>

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

            ASSUMPTION AGREEMENT, dated as of ________________, 200_, made by
______________________________ (the "Additional Grantor"), in favor of JPMorgan
Chase Bank, N.A., as collateral agent (in such capacity, the "Collateral Agent")
for the banks and other financial institutions or entities (the "Lenders")
parties to the Credit Agreement referred to below and The Prudential Insurance
Company of America ("Prudential") and its affiliates (the "Prudential
Affiliates") party to the Note Agreements referred to below (the Lenders,
Prudential and the Prudential Affiliates collectively referred to as the
"Secured Parties"). All capitalized terms not defined herein shall have the
meaning ascribed to them in such Credit Agreement.

                                   WITNESSETH:

            WHEREAS, TBC Corporation ("Holdings"), TBC Private Brands, Inc.
("TBC Private Brands") (Holdings and TBC Private Brands, each a "Borrower" and
together the "Borrowers"), the Lenders, the Administrative Agent and the
Co-Administrative Agent have entered into a Credit Agreement, dated as of June
17, 2005 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement");

            WHEREAS, the Borrowers and Prudential have entered into the Amended
and Restated Note Agreement, dated as of April 1, 2003 (as amended, supplemented
or otherwise modified from time to time, the "Existing Note Agreement") and the
Borrowers, Prudential and the Prudential Affiliates have entered into the Note
Purchase Agreement, dated as of April 1, 2003 (as amended, supplemented or
otherwise modified from time to time, the "Additional Note Agreement") (the
Existing Note Agreement and the Additional Note Agreement collectively referred
to as "Note Agreements");

            WHEREAS, in connection with the Credit Agreement and the Note
Agreements, the Borrowers and certain of its Affiliates (other than the
Additional Grantor) have entered into the Guarantee and Collateral Agreement,
dated as of June 17, 2005 (as amended, supplemented or otherwise modified from
time to time, the "Guarantee and Collateral Agreement") in favor of the
Collateral Agent for the benefit of the Secured Parties;

            WHEREAS, the Credit Agreement and the Note Agreements require the
Additional Grantor to become a party to the Guarantee and Collateral Agreement;
and

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

            NOW, THEREFORE, IT IS AGREED:

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

<PAGE>

                                                                               2

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

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

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

                                                  [ADDITIONAL GRANTOR]

                                                  By:___________________________
                                                      Name:
                                                      Title:

<PAGE>

                                                                    Annex 1-A to
                                                            Assumption Agreement

                            Supplement to Schedule 1

                            Supplement to Schedule 2

                            Supplement to Schedule 3

                 Supplement to Intellectual Property Certificate<PAGE>

                                                                     EXHIBIT 4.5

                                                                  EXECUTION COPY

                             INTERCREDITOR AGREEMENT

      INTERCREDITOR AGREEMENT, dated as of June 17, 2005 among The Prudential
Insurance Company of America (together with any transferee, successor or assign
"PICA"), each affiliate, managed account or fund of PICA party hereto (together
with any of their transferees, successors or assigns, the "Prudential
Affiliates"; and, together with PICA and any other holder from time to time of
the Senior Notes, "Prudential"), each bank a party to the Credit Agreement on
the date hereof (collectively, including the Swingline Lender and any Issuing
Bank, and with such other banks that may from time to time be parties to the
Credit Agreement, referred to as the "Banks"), the Administrative Agent and the
Co-Administrative Agent from time to time under the Credit Agreement
(respectively the "Administrative Agent" and the "Co-Administrative Agent") and
JPMorgan Chase Bank, N.A., as Collateral Agent under the Security Documents,
together with its successors in such capacity, the "Collateral Agent").

                                    RECITALS

      R1. TBC Corporation (f/k/a TBC Parent Holding Corp.), a Delaware
corporation ("Holdings"), TBC Private Brands, Inc. (f/k/a TBC Corporation), a
Delaware corporation ("TBC Private Brands") (Holdings and TBC Private Brands,
each a "Company" and together the "Companies"), and the Banks have entered into
the Credit Agreement, dated as of the date hereof (as it may be amended,
modified, supplemented, refinanced or replaced from time to time the "Credit
Agreement"), pursuant to which, among other things, the Banks agreed to make
certain loans to the Companies;

      R2. TBC Private Brands and PICA entered into a certain Second Amended and
Restated Note Agreement, dated as of April 1, 2003, (as it may hereafter be
amended, modified, supplemented, refinanced or replaced from time to time, the
"Existing Note Agreement"), to govern the terms of the following notes which TBC
Private Brands originally issued and PICA purchased on July 10, 1996: (a) 8.30%
Series A Senior Notes due July 10, 2003, which notes have since been paid in
full, (b) 8.62% Series B Senior Notes due July 10, 2005 (the "Series B Notes"),
(c) 8.81% Series C Senior Notes due July 10, 2008 (the "Series C Notes;" and
together with the Series B Notes, as such notes have been amended to date, and
as further amended, modified, supplemented, refinanced or replaced from time to
time, collectively, the "Existing Senior Notes"). TBC Private Brands and
Prudential entered into a certain Note Purchase Agreement, dated as of April 1,
2003 (as it may hereafter be amended, modified, supplemented, refinanced or
replaced from time to time, the "Additional Note Agreement;" and together with
the Existing Note Agreement, the "Note Agreements") pursuant to which TBC
Private Brands issued its Series D Variable Rate Senior Notes due April 16, 2009
(as amended, modified, supplemented, refinanced or replaced from time to time,
the "Additional Senior Notes", and together with the Existing Senior Notes,
collectively, the "Senior Notes").

      R3. Pursuant to that certain Amendment No. 2 to Second Amended and
Restated Note Agreement (with respect to the Existing Note Agreement) and that
certain Amendment No. 2 to

                                       -1-

<PAGE>

Note Purchase Agreement (with respect to the Additional Note Agreement), each
dated as of November 19, 2004, Holdings became a co-obligor with TBC Private
Brands, jointly and severally liable in respect of the obligations under the
Note Agreements and the Senior Notes.

      R4. The Bank Obligations and the Note Obligations are guaranteed, to the
extent provided therein, pursuant to the Guarantee and Collateral Agreement
executed by the Companies and all subsidiaries of the Companies, other than
Merchant's, Incorporated ("Merchant's"), including, without limitation,
Carroll's, Inc., Big O Tires, Inc., Big O Development, Inc., Big O Tire of
Idaho, Inc., O Advertising, Inc., Northern States Tire, Inc., TBC International
Inc., TBC Brands, LLC, TBC Capital, LLC, TBC Private Brands of Texas, LLC, TBC
Retail Enterprises, Inc., Big O Retail Enterprises, Inc., Tire Kingdom, Inc.,
and NTW Incorporated (each of such subsidiaries and each of the Companies, a
"Guarantor"; provided that each Company shall only be a Guarantor with respect
to, and guarantee, the Obligations of the other Company), as it may from time to
time by amended, modified, supplemented or replaced (the "Guarantee and
Collateral Agreement").

      R5. Each of the Guarantors, Merchant's and the Companies have executed in
favor of the Collateral Agent, as collateral agent for the Secured Parties (as
defined in Recital R6) the Guarantee and Collateral Agreement securing the
Obligations thereunder; and TBC Private Brands has executed in favor of the
Collateral Agent a mortgage securing the Obligations, which mortgage encumbers
real property owned by TBC Private Brands and located in Memphis, Tennessee (the
"Mortgage").

      R6. Prudential and the Banks (sometimes collectively referred to herein as
the "Secured Parties", and individually referred to as a "Secured Party") desire
to set forth certain additional provisions regarding the Obligations,

      NOW, THEREFORE, the parties hereto agree as follows:

      SECTION 1. APPOINTMENT, POWER AND AUTHORITY OF COLLATERAL AGENT.

      (a) Each Secured Party hereby appoints and authorizes the Collateral Agent
to act as its agent for the purposes of enforcing such Secured Party's rights
under the Security Documents, including its rights in respect of the Collateral.

      (b) The Collateral Agent (i) agrees to make such demands and give such
notices under the Security Documents as may be requested by, and to take such
action to enforce the Security Documents and to foreclose upon, collect and
dispose of the Collateral or any portion thereof (a "Foreclosure Action") as may
be directed by, the Majority Lenders, but not otherwise, and (ii) agrees to make
the requests referred to in Section 5.6, 5.8 and 5.9 of the Note Agreements if
so instructed in writing by the Special Majority Noteholders and not to make any
determination that any documents delivered pursuant to such Sections are
reasonably satisfactory without the written consent of the Special Majority
Noteholders; provided, however, (i) that the Collateral Agent shall not be
required to take any action that is in its opinion contrary to law or to the
terms of this Agreement or the Security Documents or which would in its
reasonable opinion subject it or its officers, employees or directors to
liability, and (ii) the Collateral Agent shall not be required to take any
action under this Agreement or the Security Documents unless

                                       -2-

<PAGE>

and until the Collateral Agent shall receive further assurances (which may
include cash collateral) of the Secured Parties' obligations under Section 5(c)
hereof that it will be indemnified to its satisfaction, in the exercise of its
reasonable judgment, by the Secured Parties against any and all loss, cost,
expense or liability in connection therewith other than any such loss, cost,
expense or liability arising out of the Collateral Agent's gross negligence or
willful misconduct.

      (c) The Collateral Agent may at any time request written directions from
the Secured Parties as to any course of action or other matter relating to the
performance of its duties under this Agreement and the Security Documents and
the Secured Parties will promptly comply with any such request. In each instance
in which such written directions are requested, the Collateral Agent shall,
subject to the other provisions of this Agreement, be required to take any such
action or perform any such duties only if so directed by the Majority Lenders
and shall have the right to decline to take such action or to perform such
duties unless so directed.

      (d) The Collateral Agent shall have such powers as are specifically
delegated to the Collateral Agent by the terms of this Agreement and of the
Security Documents, together with such other powers as are reasonably incidental
thereto.

      SECTION 2. APPLICATION OF PROCEEDS OF COLLATERAL, ETC.

      (a) If, upon any Trigger Date, the Prudential Percentage is more than the
Prudential Percentage as of the applicable Determination Date due to any Bank
Paydown, Prudential shall be entitled to a distribution priority under Section
2(d) until the Prudential Percentage (after giving effect to the last such
priority distribution) is equal to the Prudential Percentage as of such
Determination Date, whether by reason of such priority distributions,
participation purchases pursuant to Section 2(b) below or otherwise. If, upon
any Trigger Date, the Bank Percentage is more than the Bank Percentage as of the
applicable Determination Date due to any Prudential Paydown, the Banks shall be
entitled to a distribution priority under Section 2(d) until the Bank Percentage
(after giving effect to the last such priority distribution) is equal to the
Bank Percentage as of such Determination Date, whether by reason of such
priority distributions, participation purchases pursuant to Section 2(b) below
or otherwise. No party claiming a distribution priority under this Section 2(a)
shall be entitled thereto until it notifies the Collateral Agent and each other
party hereto of such claim, including with such notice a reasonably detailed
computation of the amount of such claim and a description of the circumstances
on which it is based.

      (b) If, sixty (60) days after a Trigger Date (the "Bank Purchase Date"),
the Prudential Percentage as of such date exceeds the Prudential Percentage
determined as of the applicable Determination Date, the Banks shall be obligated
to purchase a participation in the Note Obligations (ratably as to both the
Existing Senior Notes and the Additional Senior Notes in accordance with the
respective principal amounts of such Senior Notes) in an amount sufficient so
that, after giving effect thereto, the Prudential Percentage, as of the Bank
Purchase Date, and after giving effect to the Banks' purchase, is equal to the
Prudential Percentage as of the applicable Determination Date. If, sixty (60)
days after a Trigger Date (the "Prudential Purchase Date"), the Bank Percentage
exceeds the Bank Percentage determined as of the applicable Determination Date,
Prudential shall be obligated to purchase a participation in the Bank

                                      -3-

<PAGE>

Obligations in an amount sufficient so that, after giving effect thereto, the
Bank Percentage, as of the Prudential Purchase Date and after giving effect to
Prudential's purchase, is equal to the Bank Percentage as of the applicable
Determination Date.

      (c) (i) Notwithstanding that Prudential shall purchase a participation in
the Bank Obligations hereunder, (A) Prudential shall not be entitled to vote on
any matter arising under the Credit Agreement, and (B) Prudential shall not be
liable in respect of, or required to perform, any obligations of the Banks under
the Credit Agreement (including, without limitation, advancing any funds
pursuant to any request by the Companies to fund a loan) or under any Specified
Hedging Agreement; provided, however, that, with respect to the participation so
purchased, Prudential shall be entitled to share in any payment in respect of
the Bank Obligations pari passu with the Banks.

            (ii) Notwithstanding that the Banks shall purchase a participation
      in the Note Obligations hereunder, (A) none of the Banks shall be entitled
      to vote on any matter arising under the Note Agreements, and (B) none of
      the Banks shall be liable in respect of, or required to perform, any of
      Prudential's obligations under the Note Agreements; provided, however,
      that, with respect to the participation so purchased, the Banks shall be
      entitled to share in any payment in respect of the Note Obligations
      (without regard to participations in the Bank Obligations) pari passu with
      Prudential.

      (d) Any Sharing Payment shall be applied and distributed as follows:

            (i) First, to the payment of all reasonable out-of-pocket costs and
      expenses (including attorneys fees and disbursements) incurred by the
      Collateral Agent or by any Secured Party which shall have notified, with
      reasonable specificity, the Collateral Agent and the other Secured Parties
      of such costs and expenses, including all amounts against or for which the
      Collateral Agent is to be indemnified or reimbursed hereunder by the
      Secured Parties;

            (ii) Second, subject to Section 2(e) below, to Prudential or the
      Banks, as applicable, in accordance with Section 2(a);

            (iii) Third, subject to Section 2(e), to the Secured Parties pro
      rata in proportion to each Secured Party's Percentage Interest (computed
      in accordance with the Current Balance Certificates then in effect) in the
      Obligations (regardless of whether or not the maturity of any such Secured
      Party's Obligations shall have been accelerated) until all amounts owing
      in respect of the Note Obligations and the Bank Obligations are paid in
      full, provided that any such distribution on account of contingent
      obligations in respect of outstanding Letters of Credit shall be held and
      invested by the Collateral Agent solely for the benefit of the Secured
      Parties entitled thereto and shall thereafter be distributed to such
      Secured Parties to the extent that any such contingent obligations shall
      become actual (or, to the extent any such contingent obligations are
      extinguished prior to becoming actual, such distribution shall then be
      redistributed in accordance with this Section 2(d)); and

            (iv) Fourth, the balance, if any, to any such Person as shall be
      entitled thereto.

                                      -4-

<PAGE>

      (e) Non-cash Sharing Payments and Sharing Payments which, due to a
restraining order or otherwise, are not permitted to be applied to the
Obligations, or because the Collateral Agent or the receiving Secured Party
determined it to be impracticable to divide and apply any such non-cash Sharing
Payments to the payment of any of the Obligations owed to the Secured Party
(herein referred to as "Non-available Sharing Payments") shall be held by the
Collateral Agent or, as the case may be, the Secured Party so receiving such
Non-available Sharing Payments, as agent for the Secured Parties. At such time
as such Non-available Sharing Payments are later converted to cash or such
Non-available Sharing Payments are later permitted to be applied, or later
become practical to divide and may otherwise be applied, against any of the
Obligations then such Non-available Sharing Payments shall promptly be divided
and paid at such time in accordance with the terms of this Agreement.

      (f) Prior to each distribution of Sharing Payments pursuant to Section
2(d), the Collateral Agent shall request an updated Current Balance Certificate
from each Secured Party. The Collateral Agent shall distribute all Sharing
Payments, other than Non-available Sharing Payments, to the Secured Parties
pursuant to Section 2(d) above as soon as possible after it has in its
possession such a Current Balance Certificate from each Secured Party, setting
forth the amount of such Secured Party's Bank Obligations or Note Obligations,
as the case may be. Prior to making any distribution under Section 2(d), the
Collateral Agent may apply such Sharing Payments pursuant to Section 2(d)(i)
above, with respect to any out-of-pocket costs and expenses of the Collateral
Agent or any Secured Party whose amount is then known, and may retain as a
reserve such portion of such Sharing Payments as it may reasonably determine is
sufficient to cover such costs and expenses incurred by the Collateral Agent
whose amount has not yet been determined. As soon as it determines that any
portion of such Sharing Payments are no longer required to be held in such
reserve, the Collateral Agent shall distribute the same to the Secured Parties
pursuant to Section 2(d) based on then effective Current Balance Certificates
from all Secured Parties. Any costs and expenses payable pursuant to Section
2(d)(i) to any Secured Party, of which the Collateral Agent shall not have been
notified as of the time of any disbursement of Sharing Payments, shall not be
payable from such Sharing Payments. The failure of the Collateral Agent to
deduct from such Sharing Payments costs and expenses payable pursuant to such
Section prior to the disbursement of any such Sharing Payments (i) shall not
affect the right of the Collateral Agent to be reimbursed therefor by the
Companies and to be indemnified with respect thereto pursuant to Section 5(c)
below and (ii) shall not render the Collateral Agent liable to any Secured Party
claiming all or a portion thereof pursuant to Section 2(d) above. At the time of
each disbursement of Sharing Payments or other amounts described herein, the
Collateral Agent shall forward to each Secured Party a statement (x) describing
the total amount of such Sharing Payments or other amounts received, (y) if
applicable, the Percentage Interest of each Secured Party pursuant to which such
Secured Party's share was determined, (z) any distribution priority under
Section 2(a) affecting such distribution, (xx) the amount distributed to each
Secured Party; and (yy) the amount of costs and expenses deducted by the
Collateral Agent, the amount of reserve for such costs and expenses retained by
the Collateral Agent, and the amount of any Secured Party's costs and expenses
to which such Sharing Payments or other amounts were applied.

                                      -5-

<PAGE>

      (g) Each Secured Party agrees that any sums and amounts received by such
Secured Party pursuant to this Section shall be applied to the payment of such
Obligations held by such Secured Party as shall be determined by such Secured
Party in its sole discretion, subject to any provisions of any other agreement
affecting such application.

      (h) Each Secured Party agrees not to take any action whatsoever to enforce
any term or provision of the Security Documents or to enforce any of its rights
in respect of the Collateral, except through, or pursuant to the direction of,
the Collateral Agent pursuant to this Agreement.

      SECTION 3. INFORMATION.

      (a) The Collateral Agent shall promptly notify each Secured Party in the
event it shall receive, in its capacity as Collateral Agent, (i) any notice or
declaration of an Event of Default or certificate rescinding a notice or
declaration of an Event of Default or any request by any party hereto for any
consent, waiver or amendment with respect hereto or the Note Documents, the Bank
Agreements or any Security Document or (ii) any Sharing Payments.

      (b) Each Secured Party agrees that, in the event the Collateral Agent
notifies such Secured Party that it has received any Sharing Payments or that it
desires or is required to determine either such Secured Party's Percentage
Interest or the Majority Lenders, such Secured Party will promptly notify the
Collateral Agent in writing pursuant to a certificate of a duly authorized
officer of such Secured Party (a "Current Balance Certificate") of the aggregate
amount of the Note Obligations or Bank Obligations, as the case may be, owing to
such Secured Party (or, in the case of Bank Obligations arising under a
Specified Hedging Agreement, any Affiliate of such Secured Party) as of the date
of such certificate, and the amount of any Bank's unused commitment to lend. The
Collateral Agent shall be entitled to rely on the information set forth in the
most recently received Current Balance Certificate of each Secured Party for a
period of 21 days following receipt thereof by the Collateral Agent.

      (c) Any request, demand, authorization, direction, notice, consent, waiver
or other action permitted or required by this Agreement to be given or taken by
the Secured Parties may be and, at the request of the Collateral Agent, shall
be, embodied in and evidenced by one or more instruments reasonably satisfactory
in form to the Collateral Agent and signed by or on behalf of such Secured
Parties and, except as otherwise expressly provided in any such instrument, any
such actions shall become effective when such instrument or instruments shall
have been delivered to the Collateral Agent.

      (d) The Banks agree to notify the Collateral Agent, which shall promptly
notify Prudential, within 3 business days that a Bank Election Date has
occurred.

      SECTION 4. RELEASE OF COLLATERAL; AMENDMENTS TO INTERCREDITOR AGREEMENT;
EXECUTION OF AMENDMENTS, ETC.

      (a) Except as may be required or permitted pursuant to the Security
Documents, without the prior written consent of all of the Secured Parties, the
Collateral Agent shall not release any security interest, lien or other
encumbrance on any of the Collateral granted in favor of the Collateral Agent on
behalf of the Secured Parties pursuant to the Security Documents and for which
it has accepted responsibility as Collateral Agent under Section 1(a) hereof;
provided,

                                      -6-

<PAGE>

that the Collateral Agent shall release such Collateral with the prior written
consent of the Majority Lenders as long as all of the Collateral so released
during the term of this Agreement has an aggregate value (using the higher of
book value or market value for each item of Collateral) of less than $5,000,000.

      (b) This Agreement may not be amended or modified unless in a writing
signed by the Collateral Agent and each of the Secured Parties.

      (c) The Collateral Agent agrees (i) to execute such amendments or
modifications to this Agreement as all of the Secured Parties may direct and
(ii) to execute and deliver such amendments or modifications to the Security
Documents to which the Collateral Agent is a party as the Majority Lenders may
direct (except releases of Collateral and other actions which require a greater
percentage of Secured Parties); provided, however, that the Collateral Agent
shall not be obligated to execute any such amendment or modification the effect
of which is to increase the liabilities or duties of the Collateral Agent
hereunder or thereunder in any respect.

      SECTION 5. DISCLAIMER, ETC.

      (a) The Collateral Agent shall have no duties or responsibilities except
those expressly set forth in this Agreement and the Security Documents, and the
Collateral Agent shall not by reason of this Agreement or Security Documents be
a trustee for any Secured Party. The Collateral Agent in such capacity shall not
be responsible to the Secured Parties for any recitals, statements,
representations or warranties contained in this Agreement, any Security
Document, or in any certificate or other document referred to or provided for
therein, or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement, any Security Document, or any other document
referred to or provided for herein or therein, or for any security interest,
lien or encumbrance granted to the Collateral Agent on behalf of the Secured
Parties or the perfection or priority of any such security interest, lien or
encumbrance, or for any failure by the Companies to perform any of their
obligations under any thereof. The Collateral Agent may employ agents and
attorneys-in-fact and shall not be responsible, except as to money or securities
received by it or its authorized agents, for the negligence or misconduct of any
such agents or attorneys-in-fact selected by it with reasonable care. -Neither
the Collateral Agent nor any of its directors, officers, employees or agents
shall be liable or responsible for any action taken or omitted to be taken by it
or any of them hereunder or in connection herewith, except for its or their own
gross negligence or willful misconduct.

      (b) The Collateral Agent shall be entitled to rely upon any written
certification, notice or other communication reasonably believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants and other experts selected by the Collateral Agent with
reasonable care. As to any matters not expressly provided for by this Agreement,
the Collateral Agent shall in all cases be under no duty to act or refrain from
acting unless (i) it receives written instructions signed by the Majority
Lenders (unless otherwise provided herein) as to what actions should be taken or
refrained from being taken, which instructions and action taken or failure to
act pursuant thereto shall be binding on all of the Secured Parties, and the
Collateral Agent shall be protected with respect to actions taken or not taken
in accordance with such instructions, and (ii) it receives such further
assurances (which may include cash collateral) as it may request of

                                      -7-

<PAGE>

the indemnification obligations of the Secured Parties under Section 5(c) of
this Agreement in respect of any and all liability and expense which may be
incurred by it by reason of taking, continuing to take or refraining from taking
any such action. If any party disputes another party's claim to a distribution
priority under Section 2(a), the Collateral Agent may retain the funds that
would otherwise be distributed in accordance with the claimed priority until the
dispute is resolved by agreement of all parties, by non-appealable court order
or by binding arbitration.

      (c) Each Secured Party agrees to indemnify the Collateral Agent in such
capacity, ratably in accordance with its Percentage Interest in the Obligations,
whether or not the Collateral Agent has exhausted all remedies against the
Companies for reimbursement, to the extent the Collateral Agent has not been
reimbursed by the Companies in accordance with and pursuant to their
Acknowledgment and Agreement hereto, for any and all liabilities, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the
Collateral Agent in any way relating to or arising out of this Agreement, any
Security Document or any other document contemplated by or referred to therein
or the transactions contemplated thereby or the enforcement of any of the terms
hereof, or of any Security Document; provided, however, that no Secured Party
shall be liable for, or shall indemnify the Collateral Agent for, any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the Collateral Agent.

      (d) The Collateral Agent may deem and treat the payee of any promissory
note or other evidence of indebtedness relating to the Obligations as the owner
thereof for all purposes hereof unless and until the provisions of Section 11(e)
have been complied with and a written notice of the assignment or transfer
thereof, signed by such payee and in form satisfactory to the Collateral Agent,
shall have been filed with the Collateral Agent, but the Collateral Agent shall
not be required to recognize or deal with any Person who has acquired any
participation in any Obligation from any Secured Party. Any request, authority
or consent of any Person who at the time of making such request or giving such
authority or consent is the holder of any such note or other evidence of
indebtedness shall be conclusive and binding on any subsequent holder,
transferee or assignee of such note or evidence and of any note or notes or
evidence issued in exchange therefor.

      (e) Except as expressly directed by the Majority Lenders and as expressly
provided in the Security Documents, the Collateral Agent shall have no duty to
and shall not take any Foreclosure Action or any other affirmative action with
respect to the collection of any amount payable in respect of the Collateral.

      (f) Subject to the terms of this paragraph, any Person acting as
Collateral Agent may resign at any time by giving notice thereof to each Secured
Party, and any Person acting as Collateral Agent may be removed as Collateral
Agent at any time by the Majority Lenders. Upon any such resignation or removal,
a successor Collateral Agent shall be appointed by the Majority Lenders. If no
successor Collateral Agent shall have been so appointed by the Majority Lenders
and shall have accepted such appointment within thirty days after such
resignation or removal, then the retiring Collateral Agent may, on behalf of the
Secured Parties, appoint a successor Collateral Agent, which shall be either a
Bank or a commercial bank or insurance

                                      -8-

<PAGE>

company organized under the laws of the United States of America or any state
thereof and has combined capital and surplus of at least $500,000,000 and has an
investment rating of "A" or better issued by Standard & Poor's Corporation with
respect to its senior debt rating. Upon the acceptance of any appointment as
Collateral Agent hereunder by a successor Collateral Agent, (i) such successor
Collateral Agent shall promptly so notify the Secured Parties and the retiring
Collateral Agent and shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Collateral Agent, and (ii)
the resignation or removal of the retiring Collateral Agent shall become
effective and it shall be discharged from its duties and obligations hereunder.
After any retiring Collateral Agent's resignation or removal hereunder as
Collateral Agent, the provisions of this Section 5 shall continue in effect for
its benefit in respect of any actions taken or permitted to be taken by it while
it was acting as the Collateral Agent.

      (g) During such periods as the Collateral Agent is a Secured Party, in its
capacity as a Secured Party the Collateral Agent shall have the same rights,
obligations and powers hereunder as any other Secured Party and may exercise the
same as though it were not acting as the Collateral Agent, and the term "Secured
Party" or "Secured Parties" shall, unless the context otherwise requires,
include the Collateral Agent in its capacity as a Secured Party. The Collateral
Agent and its affiliates may (without having to account therefor to any Secured
Party) accept deposits from, lend money to (on a secured or unsecured basis),
and generally engage in any kind of banking, trust or other business with, the
Companies (and any of its affiliates) as if it were not acting as the Collateral
Agent, and the Collateral Agent may accept fees and other consideration from the
Companies for services in connection with this Agreement or otherwise without
having to account for the same to the Secured Parties. Although the Collateral
Agent and its affiliates may in the course of such relationships not involving
the Collateral Agent's activities as a Secured Party or as Collateral Agent, and
in the course of relationships with other Persons, acquire information about the
Companies, its affiliates and such other Persons, the Collateral Agent shall
have no duty to disclose to the Secured Parties information so acquired.

      SECTION 6. PAYMENT INVALIDATED. If, during the course of, or pursuant to,
any Bankruptcy Proceeding, a Secured Party (the "Returning Lender") is required
by a court or other tribunal of competent jurisdiction to disgorge, refund,
rebate or otherwise return any distribution of Sharing Payments or of other
funds received by such Secured Party pursuant to Section 2 hereof (such
Returning Lender's portion of such payment or distribution referred to herein as
a "Disputed Payment"), to any trustee presiding over such Bankruptcy Proceeding
or to any other Person (whether by reason of the fact that such Disputed Payment
constituted or was alleged to constitute a preference, a fraudulent conveyance
or for such other reason as such court or tribunal shall specify), each other
Secured Party shall immediately pay to the Returning Lender its Proportionate
Share of such Disputed Payment from amounts actually received by such other
Secured Party. For purposes of this Section 6, such Proportionate Share shall be
calculated as of the date the Returning Lender is required to make such payment
to any such trustee or other Person.

      SECTION 7. ADDITIONAL COLLATERAL. Each of the Secured Parties hereby
covenants and agrees that (i) such Secured Party will not accept from any Person
on behalf of the Companies any guarantee (a "Third-Party Guarantee") of any of
the Obligations unless such guarantor simultaneously guarantees the payment of
all of the Obligations owed to all Secured Parties (or, if such Third-Party
Guarantee guarantees only a portion of the Obligations owing to such

                                      -9-

<PAGE>

Secured Party, such Secured Party will not accept such Third-Party Guarantee
unless such guarantor simultaneously guarantees the same proportion of
Obligations owing to the other Secured Parties) and (ii) such Secured Party will
not take, accept or obtain any security interest in, or lien or encumbrance
upon, any assets of any of the Companies or any subsidiary or affiliate thereof
or any other Person (other than a security interest, lien or encumbrance upon
assets which, if obtained by such Secured Party, would constitute a Sharing
Payment) to secure the payment and performance of the Obligations unless all
Secured Parties are granted a pari passu security interest in, or lien upon,
such assets, in either case, pursuant to documents in form and substance
satisfactory to the Secured Parties.

      SECTION 8. TURNOVER OF COLLATERAL. If a Secured Party acquires custody,
control or possession of any Collateral or Sharing Payments, other than pursuant
to the terms of this Agreement, such Secured Party shall promptly cause such
Collateral or Sharing Payments to be delivered to or put in the custody,
possession or control of the Collateral Agent for disposition or distribution in
accordance with the provisions of Section 2 hereof. Until such time as such
Secured Party shall have compiled with the provisions of the immediately
preceding sentence, such Secured Party shall be deemed to hold such Collateral
and Sharing Payments in trust for the parties entitled thereto hereunder.

      SECTION 9. COVENANTS OF THE SECURED PARTIES. (a) Each of the Secured
Parties hereby covenants and agrees that it will give notice immediately to each
other Secured Party or in the case of notice to the Banks, to the
Co-Administrative Agent for the Banks under the Credit Agreement of (i) its
instructions to the Collateral Agent to take a Foreclosure Action, and (ii) its
receipt of any additional Collateral or a Sharing Payment or a Third-Party
Guarantee.

      (b) It will cooperate with the Collateral Agent and with each other
Secured Party in the enforcement of the security interests in, and liens and
encumbrances upon the Collateral and otherwise in order to accomplish the
purposes of this Agreement and the Security Documents.

      SECTION 10. DEFINITIONS.

      "Acceleration Date" means the date upon which any of the Secured Parties
shall have accelerated the maturity of its respective Obligations.

      "Additional Note Agreement" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Additional Senior Notes" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Administrative Agent" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Affiliate" shall have the meaning set forth in the Guarantee and
Collateral Agreement.

      "Bank and Note Documents" shall mean, and is a collective reference to the
Bank Agreements and the Note Documents.

                                      -10-

<PAGE>

      "Bank Agreements" shall mean the Credit Agreement, and each other
document, instrument or certificate executed in connection therewith, as any of
them may be amended, modified, supplemented or replaced from time to time in
accordance with its respective terms.

      "Bank Election Date" means the earlier of (i) the date on which the
"Revolving Credit Commitments" of the Banks are terminated pursuant to Article
VII of the Credit Agreement or (ii) the expiration of 3 days after all of the
Banks first refused, in accordance with Section 4.02 of the Credit Agreement, to
make "Revolving Loans" under the Credit Agreement upon request of the Companies,
without the Companies' right to borrow under Section 4.02 having been restored,
by waiver, amendment, cure, forbearance or otherwise.

      "Bank Obligations" shall mean, at any time, (i) all obligations of the
Companies to the Banks and the Collateral Agent arising under the Bank
Agreements, including, without limitation, premium, make-whole amounts, breakage
costs and yield maintenance amounts and the obligations of the Companies under
and in respect to any Letters of Credit (including contingent obligations in
respect thereof); plus (ii) the amount of any participations in the Note
Obligations purchased by the Banks pursuant to Section 2(b), minus (iii) the
amount of any participations in the Bank Obligations purchased by Prudential
pursuant to Section 2(b) plus (iv) all obligations of the Companies arising
under any Specified Hedging Agreement.

      "Bank Paydown" shall mean any and all amounts, proceeds or other property
actually received by or on behalf of the Collateral Agent or the Banks in
respect of any of the Bank Obligations at any time on or after the occurrence of
a Determination Date and prior to the occurrence of any Trigger Date, including,
without limitation, any such amounts, proceeds or other property received (a)
pursuant to or in connection with the enforcement of any of the Bank Agreements
(whether pursuant to a Bankruptcy Proceeding or otherwise), or otherwise
resulting from the collection, sale, transfer or other disposition of any of the
Collateral or any portion thereof, (b) obtained by way of set-off by the
Collateral Agent or any Secured Party against obligations owing by the
Collateral Agent or such Secured Party to any of the Companies, and (c)
constituting prepayments or other payments in respect of any of the Obligations,
but specifically excluding any regularly scheduled prepayments under the Bank
Agreements.

      "Bank Percentage" means, on any date, an amount equal to a fraction, the
numerator of which is the total amount of Bank Obligations as of such date and
the denominator of which is the total amount of Obligations as of such date.

      "Bank Purchase Date" shall have the meaning set forth in Section 2(b).

      "Bankruptcy Proceeding" shall mean the voluntary or involuntary
dissolution, winding up, liquidation, arrangement, reorganization, adjustment,
protection, relief or composition of the Companies or of any Guarantor or their
debts, whether in any bankruptcy, insolvency, arrangement, reorganization,
receivership, relief or similar proceedings or upon an assignment for the
benefit of creditors or any other marshaling of the assets and liabilities of
the Companies or of any Guarantor or otherwise.

                                      -11-

<PAGE>

      "Banks" shall have the meaning set forth in the introductory paragraphs
hereof, and shall include each Bank acting from time to time under the Credit
Agreement as the Swingline Lender and any Issuing Bank.

      "Co-Administrative Agent" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Collateral Agent" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Collateral" shall mean the real and personal property in or upon which
the Companies, any Guarantor or other Person have from time to time granted to
the Collateral Agent on behalf of the Secured Parties or to any Secured Party,
pursuant to the Security Documents, a lien, security interest or other
encumbrance to secure the Obligations. The term "Collateral" shall not refer to
any cash collateral with respect to letters of credit at any time deposited with
the Administrative Agent pursuant to Section 2.05(a) of the Credit Agreement.

      "Compan(y/ies) " shall have the meaning set forth in the introductory
paragraphs hereof.

      "Credit Agreement" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Current Balance Certificate" shall have the meaning set forth in Section
3(b).

      "Determination Date" means, with respect to any Trigger Date, the date
which is sixty (60) days prior to such Trigger Date.

      "Disputed Payment" shall have the meaning set forth in Section 6 hereof.

      "Event of Default" means an Event of Default as such term is defined in or
pursuant to the Note Documents or the Bank Agreements, as the case may be.

      "Existing Note Agreement" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Existing Senior Notes" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Foreclosure Action" shall have the meaning specified in Section 1(b).

      "Guarantee and Collateral Agreement" shall have the meaning set forth in
the introductory paragraphs hereof.

      "Guarantee Obligations" means obligations undertaken by the guarantors
under Section 2 of the Guarantee and Collateral Agreement.

      "Holdings" shall have the meaning set forth in the introductory paragraphs
hereof.

      "Issuing Bank" shall have the meaning set forth in the Credit Agreement.

                                      -12-

<PAGE>

      "Majority Lenders" shall mean, at any time, (i) during such time as there
is no Event of Default, the holders of at least 51% of the total of the
aggregate amount of the commitments of the Banks plus the aggregate principal
balance of the Senior Notes and (ii) during the existence of an Event of
Default, the holders of at least 66-2/3% of the Obligations.

      "Mortgage" shall have the meaning set forth in the introductory paragraphs
hereof.

      "Non-available Sharing Payments" shall have the meaning set forth in
Section 2(e) hereof.

      "Note Agreements" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Note Documents" shall mean the Note Agreements, the Senior Notes and each
other document, instrument or certificate executed in connection therewith, as
any of them may be amended, modified, supplemented or replaced from time to time
in accordance with its respective terms.

      "Note Obligations" shall mean, at any time, (i) all of the Companies'
obligations to Prudential arising under the Note Documents, including, without
limitation, premium, make-whole amounts, breakage costs and yield maintenance
amounts, plus (ii) the amount of any participations in the Bank Obligations
purchased by Prudential pursuant to Section 2(b) or minus (iii) the amount of
any participations in the Note Obligations purchased by the Banks pursuant to
Section 2(b).

      "Obligations" shall mean, at any time, collectively, all Note Obligations,
all Bank Obligations and, without duplication, all Guarantee Obligations, and
including, without limitation, accrued but unpaid interest and fees and all
out-of-pocket costs and expenses incurred by each Secured Party in connection
with the enforcement and collection of the Obligations owing to such Secured
Party and in connection with directing the Collateral Agent to take actions
hereunder and under the Security Documents, including, without limitation, all
attorneys fees and disbursements incurred by such Secured Party at such time.

      "Percentage Interest" with respect to a Secured Party, as of the date of
any Current Balance Certificate of such Secured Party then in effect, shall mean
that percentage which is the equivalent of a fraction, the numerator of which is
the then aggregate amount of the applicable Note Obligations or applicable Bank
Obligations, as the case may be, owing to such Secured Party (or, in the case of
Bank Obligations arising under a Specified Hedging Agreement with any Affiliate
of a Secured Party, such Affiliate), and the denominator of which is the total
of the amounts described in the numerators for all Secured Parties, as reflected
in the Current Balance Certificates for all Secured Parties then in effect.

      "Person" shall mean and include an individual, a partnership, a joint
venture, a corporation, a trust, limited liability company, an unincorporated
organization and a government or any department or agency thereof.

      "PICA" shall have the meaning set forth in the introductory paragraphs
hereof.

                                      -13-

<PAGE>

      "Proportionate Share" shall have the meaning set forth in Section 2.9(b)
of the Guarantee and Collateral Agreement.

      "Prudential Affiliate" shall have the meaning set forth in the
introductory paragraphs hereof.

      "Prudential Paydown" shall mean any and all amounts, proceeds or other
property actually received by or on behalf of Prudential in respect of any of
the Note Obligations at any time on or after the occurrence of a Determination
Date and prior to the occurrence of any Trigger Date, including, without
limitation, any such amounts, proceeds or other property received (a) pursuant
to or in connection with the enforcement of any of the Note Documents (whether
pursuant to a Bankruptcy Proceeding or otherwise), or otherwise resulting from
the collection, sale, transfer or other disposition of any of the Collateral or
any portion thereof, (b) obtained by way of set-off by the Collateral Agent or
any Secured Party against obligations owing by the Collateral Agent or such
Secured Party to any of the Companies, and (c) constituting prepayments or other
payments in respect of any of the Obligations, but specifically excluding any
regularly scheduled prepayments under the Note Documents.

      "Prudential Percentage" means, on any date, an amount equal to a fraction,
the numerator of which is the total amount of Note Obligations as of such date
and the denominator of which is the total amount of Obligations as of such date.

      "Prudential Purchase Date" shall have the meaning set forth in Section
2(b).

      "Prudential" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Returning Lender" shall have the meaning set forth in Section 6 hereof.

      "Secured Parties" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Security Documents" shall mean the Guarantee and Collateral Agreement and
the Mortgage, and all documents and instruments executed and delivered in
connection therewith and any other document or instrument pursuant to which the
Companies or any other Person grants to the Collateral Agent or a Secured Party
a security interest in, or lien or encumbrance upon, any real or personal
property to secure the payment or performance of the Obligations.

      "Senior Notes" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Series B Notes" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Series C Notes" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Sharing Payment" shall mean any and all amounts, proceeds or other
property actually received by or on behalf of the Collateral Agent or any
Secured Party in respect of any of the Obligations at any time on or after the
occurrence of a Trigger Date, including, without limitation, any such amounts,
proceeds or other property received (a) pursuant to or in connection with the
enforcement of any of the Bank and Note Documents (whether pursuant to a
Bankruptcy Proceeding or otherwise), or otherwise resulting from the collection,
sale, transfer or

                                      -14-

<PAGE>

other disposition of any of the Collateral or any portion thereof, (b) obtained
by way of set-off by the Collateral Agent or any Secured Party against
obligations owing by the Collateral Agent or such Secured Party to any of the
Companies, and (c) constituting prepayments or other payments in respect of any
of the Obligations, but specifically excluding any regularly scheduled
prepayments under the Bank and Note Documents.

      "Special Majority Noteholders" shall mean the holder or holders of at
least 51% of the sum of the then outstanding aggregate principal amount of each
of the Existing Prudential Notes, plus the then outstanding aggregate principal
amount of the Additional Prudential Notes.

      "Specified Hedging Agreement" shall have the meaning set forth in the
Guarantee and Collateral Agreement.

      "Swingline Lender" shall have the meaning set forth in the Credit
Agreement.

      "TBC Private Brands" shall have the meaning set forth in the introductory
paragraphs hereof.

      "Third Party Guarantee" shall have the meaning set forth in Section 7
hereof.

      "Trigger Date" means the earliest date upon which one of the following
events occurs:

      (a) a Bank Election Date;

      (b) an Acceleration Date; or

      (c) the commencement of a Bankruptcy Proceeding.

      SECTION 11. MISCELLANEOUS.

      (a) Each of the Secured Parties is hereby authorized to demand specific
performance of this Agreement at any time when any party shall have failed to
comply with any of the provisions of this Agreement applicable to it. Each of
the Secured Parties hereby irrevocably waives any defense based on the adequacy
of a remedy at law, which might be asserted as a bar to such remedy of specific
performance.

      (b) All notices, requests, consents and other communications made pursuant
to the provisions hereof shall be in writing and shall be delivered personally
or mailed by first class registered or certified mail, postage prepaid or by
Federal Express or by telex or telecopier or by telephone (if confirmed in
writing as aforesaid) at the address specified on the signature pages or Annex I
hereof, as the case may be, or such other address as may be furnished in writing
by a Secured Party to each other Secured Party or by the Collateral Agent to
each Secured Party. All notices to the Collateral Agent shall be effective on
receipt.

      (c) This Agreement may be modified or waived only by an instrument or
instruments in writing signed by each of the Secured Parties and the Collateral
Agent.

                                      -15-

<PAGE>

      (d) This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same agreement and any of the
parties hereto may execute this Agreement by signing any such counterpart.

      (e) All of the terms of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective parties hereto and their
respective successors and assigns, and shall be binding upon and inure to the
benefit of and be enforceable by any holder or holders at any time of the
Obligations owed to a Secured Party, or any part thereof. Any transfer by
Prudential and any of its successors and assigns of any Senior Notes shall
effectuate an equivalent assignment of such Person's rights and obligations
hereunder, with no further action being required, and each transferee of the
Senior Notes shall be bound accordingly hereunder as a holder of Senior Notes.
Any assignment by any Bank pursuant to the Credit Agreement of any of its rights
and obligations thereunder shall operate as provided therein and in the
Assignment and Acceptance related to such assignment and shall effectuate an
equivalent assignment of its rights and obligations hereunder, with no further
action being required, and each Assignee shall be bound accordingly hereunder as
an assign of such Bank to the extent of its assignment of its rights and
obligations under the Credit Agreement.

      (f) The provisions of this Agreement are not intended, nor shall they be
construed to confer upon, or give the Companies or any Person other than the
Secured Parties and their respective successors and assigns, any rights,
remedies or claims hereunder or by reason hereof.

      (g) To the extent that there is a conflict or inconsistency with terms of
this Agreement and an agreement among the Collateral Agent, any Secured Party
and the Companies, or any amendment or modification of any such agreement, this
Agreement shall control as between the parties hereto.

      (h) Each Secured Party shall execute and deliver such other documents and
instruments, in form and substance reasonably satisfactory to the Collateral
Agent or any other Secured Party, and shall take such other action, in each case
as the Collateral Agent or such other Secured Party may reasonably request, to
effectuate and carry out the provisions of this Agreement or the Security
Documents, including without limitation by recording or filing in such places as
the requesting Collateral Agent or other Secured Party may deem desirable, this
Agreement or the Security Documents or such other documents or instruments.

      (i) This Agreement shall terminate with respect to Prudential
automatically upon the indefeasible payment in full of all of the Obligations
owed to them and, with respect to the Banks, upon the indefeasible payment in
full of all of the Obligations owed to them (other than Obligations in respect
of Specified Hedging Agreements) plus the termination of all commitments to lend
under the Credit Agreement; provided, however, that Section 5(c) of this
Agreement shall survive, and remain operative and in full force and effect,
regardless of the indefeasible payment in full of all Obligations.

      (j) Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability without invalidating the
remainder of such provision or the remaining

                                      -16-

<PAGE>

provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction and the parties hereto shall use their best efforts to
replace such provision.

      (k) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED IN SUCH STATE, WITHOUT REGARD TO ANY PROVISION THEREOF THAT WOULD
PERMIT OR REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

      (l) All personal pronouns used in this Agreement, whether used in the
masculine, feminine or neuter gender, shall include all other genders; the
singular shall include the plural, and the plural shall include the singular.
Titles of Articles and Sections in this Agreement are for convenience only, and
neither limit nor amplify the provisions of this Agreement.

      (m) THE PARTIES HERETO ACKNOWLEDGE THAT ANY DISPUTE ARISING OUT OF THIS
AGREEMENT WILL BE BASED ON DIFFICULT AND COMPLEX FACTS. ACCORDINGLY, EACH OF THE
PARTIES HERETO HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY DISPUTE,
CONTROVERSY, SUIT, HEARING OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR
THE OBLIGATIONS, DUTIES AND RIGHTS OF THE COLLATERAL AGENT OR THE SECURED
PARTIES AS SET FORTH HEREIN.

      (n) The parties hereto who are also parties to an existing Intercreditor
Agreement, dated as of March 31, 2003 (as amended, supplemented or otherwise
modified from time to time), relating to the Companies hereby agree that such
agreement is terminated and of no further force or effect.

                                      -17-

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                             FIRST TENNESSEE BANK NATIONAL
                             ASSOCIATION
                             Individually, as a Bank, as Swingline Lender and as
                                 Administrative Agent

                             By: /s/ R. Shane Norman
                                 ---------------------
                                 Name: R. Shane Norman
                                 Title: Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                             JPMORGAN CHASE BANK, N.A.
                             Individually, as a Bank, as Issuing Bank, as
                             Collateral Agent and as Co-Administrative Agent

                             By: /s/ Steve Willmann
                                 ---------------------
                                 Name: Steve Willmann
                                 Title: Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            THE PRUDENTIAL INSURANCE COMPANY
                            OF AMERICA

                            By: /s/ Billy B. Greer
                               -----------------------------
                                Name: Billy B. Greer
                                Title: Senior Vice President

                            PRUCO LIFE INSURANCE COMPANY

                            By: /s/ Billy B. Greer
                               -----------------------------
                                Name: Billy B. Greer
                                Title: Senior Vice President

                            RGA REINSURANCE COMPANY

                            By: Prudential Private Placement Investors, L.P., as
                                Investment Advisor

                                By: Prudential Private Placement Investors,
                                    Inc., General Partner

                                    By: /s/ Billy B. Greer
                                        ----------------------------
                                        Name: Billy B. Greer
                                        Title: Senior Vice President

                            BAYSTATE INVESTMENTS, LLC

                            By: Prudential Private Placement Investors, L.P., as
                                Investment Advisor

                                By: Prudential Private Placement Investors,
                                    Inc., General Partner

                                    By: /s/ Billy B. Greer
                                        ----------------------------
                                        Name: Billy B. Greer
                                        Title: Senior Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            UNITED OF OMAHA LIFE INSURANCE
                            COMPANY

                            By: Prudential Private Placement Investors, L.P., as
                                Investment Advisor

                                By: Prudential Private Placement Investors,
                                    Inc., General Partner

                                    By: /s/ Billy B. Greer
                                        ----------------------------
                                        Name: Billy B. Greer
                                        Title: Senior Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            U.S. BANK NATIONAL ASSOCIATION
                            Individually as a Bank and as a Documentation
                            Agent

                            By: /s/ Ward C. Wilson
                                ----------------------------
                                Name:  Ward C. Wilson
                                Title: Senior Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            REGIONS BANK
                            Individually as a Bank and as a Documentation
                            Agent

                            By: /s/ Phillip May
                                ----------------------------
                                Name: Phillip May
                                Title: Senior Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            SUNTRUST BANK
                            Individually as a Bank and as Syndication Agent

                            By: /s/ Bryan W. Ford
                                -------------------
                                Name: Bryan W. Ford
                                Title: Director

                             INTERCREDITOR AGREEMENT

<PAGE>

                            BANK OF AMERICA, N.A.
                            Individually as a Bank

                            By: /s/ Alexis MacElhiney
                                -----------------------
                                Name: Alexis MacElhiney
                                Title: Director

                             INTERCREDITOR AGREEMENT

<PAGE>

                            BNP PARIBAS
                            Individually as a Bank

                            By: /s/ John Stacy
                                ------------------------
                                Name: John Stacy
                                Title: Managing Director

                            By: /s/ Mike Shryock
                                ------------------------
                                Name: Mike Shryock
                                Title: Director

                             INTERCREDITOR AGREEMENT

<PAGE>

                            FIFTH THIRD BANK
                            Individually as a Bank

                            By: /s/ James E. Simpson
                                ----------------------
                                Name: James E. Simpsom
                                Title: Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            GUARANTY BANK
                            Individually as a Bank

                            By: /s/ Michael Ansolabehere
                                --------------------------
                                Name: Michael Ansolabehere
                                Title: Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            KEYBANK NATIONAL ASSOCIATION
                            Individually as a Bank

                            By: /s/ Thomas J. Purcell
                                ----------------------------
                                Name: Thomas J. Purcell
                                Title: Senior Vice President

                             INTERCREDITOR AGREEMENT

<PAGE>

                            LA SALLE BANK NATIONAL ASSOCIATION
                            Individually as a Bank

                            By: /s/ William H. Lutes
                                ----------------------------------------
                                Name: William H. Lutes, CTP
                                Title: Senior Vice-President and Head of
                                       Division

                             INTERCREDITOR AGREEMENT

<PAGE>

                            NATIONAL CITY BANK
                            Individually as a Bank

                            By: /s/ Michael S. Pearl
                                ----------------------
                                Name: Michael S. Pearl
                                Title: Account Officer

                             INTERCREDITOR AGREEMENT

<PAGE>

                          ACKNOWLEDGMENT AND AGREEMENT

      The undersigned, although not parties hereto, acknowledge and, to the
extent required, consent to the terms and conditions of the Intercreditor
Agreement (the "Intercreditor Agreement") set forth above. Further, the
undersigned agree (i) to reimburse the Collateral Agent, on demand, for any
expenses incurred by the Collateral Agent plus interest at the Collateral
Agent's prime rate from the date reimbursement is demanded until the date of
reimbursement, including all attorneys fees and compensation of agents, arising
out of, or in any way connected with, the execution or delivery of the
Intercreditor Agreement or any Security Document or any agreement or instrument
contemplated thereby or the performance by the parties thereto of their
respective obligations thereunder or in connection with the enforcement or
protection of the rights of the Collateral Agent and/or the Secured Parties
under the Intercreditor Agreement or the Security Documents and the seizure,
repossession, sale, transfer or other disposition of any of the Collateral and
(ii) to indemnify and hold harmless the Collateral Agent and its directors,
officers, employees and agents, on demand, 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
interest thereon at the Collateral Agent's prime rate) which may be imposed on,
incurred by or asserted against the Collateral Agent in its capacity as the
Collateral Agent or any of them in any way relating to or arising out of the
Intercreditor Agreement or any Security Document or any action taken or omitted
by it under the Intercreditor Agreement or any Security Document; provided,
however, that the undersigned does not hold the Collateral Agent harmless for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
gross negligence or willful misconduct of the Collateral Agent or any of its
directors, officers, employees or agents.

      The undersigned shall execute and deliver such other documents and
instruments, in form and substance reasonably satisfactory to the Collateral
Agent, and shall take such other action, in each case, as the Collateral Agent
may reasonably request, to effectuate and carry out the provisions of the
foregoing Intercreditor Agreement including, without limitation, by recording or
filing in such places as the Collateral Agent may deem desirable, such other
documents or instruments as the Collateral Agent may specify.

      In the event the Collateral Agent under the foregoing Intercreditor
Agreement is not one of the Secured Parties a party thereto, the undersigned
agree to pay all fees charged by such Collateral Agent for performing its duties
and obligations thereunder.

    ACKNOWLEDGEMENT AND AGREEMENT IN CONNECTION WITH INTERCREDITOR AGREEMENT

<PAGE>

      IN WITNESS WHEREOF, the parties below have caused this Acknowledgment and
Agreement to be duly executed as of the date first above written.

                                          TBC CORPORATION

                                          By: /s/ Tim Miller
                                              -----------------------
                                              Name: Tim Miller
                                              Title: VP and Treasurer

                                          TBC PRIVATE BRANDS, INC.

                                          By: /s/ Tim Miller
                                              -----------------------
                                              Name: Tim Miller
                                              Title: VP and Treasurer

    ACKNOWLEDGEMENT AND AGREEMENT IN CONNECTION WITH INTERCREDITOR AGREEMENT

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