Document:

Exhibit
10.3

EXECUTION
COPY

AMENDED
AND RESTATED BORROWER PLEDGE AGREEMENT

THIS  AMENDED AND RESTATED  BORROWER PLEDGE AGREEMENT
(this “Pledge Agreement”), dated as of May 31, 2007, among AAI
CORPORATION, a Maryland corporation (“AAI”), UNITED INDUSTRIAL CORPORATION,
a Delaware corporation (“UIC”, and together with AAI, collectively, the “Borrowers”,
and individually, a “Borrower”), the Subsidiaries of the Borrowers
signatory hereto and each other subsidiary of a Borrower hereafter a party
hereto (each a “Subsidiary Pledgor” and collectively the “Subsidiaries
Pledgors”; Borrower, each Subsidiary Pledgor and each other Subsidiary
hereafter becoming a party hereto shall be collectively known as the “Pledgors”,
and individually as “Pledgor”), in favor of SUNTRUST BANK, a Georgia
banking corporation, as Administrative Agent (the “Administrative Agent”),
on its behalf and on behalf of the other banks and lending institutions (the “Lenders”)
from time to time party to the Amended and Restated Revolving Credit Agreement,
dated as of the date hereof, by and among the Borrowers, the Administrative
Agent, the Lenders, and SunTrust Bank, as Issuing Bank and as Swingline Lender
(as amended, restated, supplemented, or otherwise modified from time to time,
the “Amended and Restated Credit Agreement”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, pursuant to the Amended
and Restated Credit Agreement, the Lenders have agreed to establish a revolving
credit facility to the Borrowers;

WHEREAS, it is a condition
precedent to the obligations of the Administrative Agent, the Issuing Bank, the
Swingline Lender, and the Lenders under the Amended and Restated Credit
Agreement that each Pledgor grant to Administrative Agent a security interest
in all of its Pledged Collateral (as defined below), and each Pledgor wishes to
fulfill said condition precedent;

WHEREAS, the Pledgors are the
record and beneficial owners of all of the issued and outstanding shares of
common stock listed on Part A of Schedule I attached hereto (the “Pledged
Shares”) and are the record and beneficial owners of all membership
interests listed on Part B of Schedule I attached hereto (the “Pledged
Membership Interests”), such Pledged Shares and Pledged Membership
Interests being all of the Capital Stock of the Pledgors’ Domestic Subsidiaries
and 65% of the voting Capital Stock and 100% of the non-voting Capital Stock of
the Pledgors’ Non-U.S. Subsidiaries; and

WHEREAS, the Pledgors are the
record and beneficial owners of the promissory notes and instruments described
on Schedule II attached hereto (the “Pledged Notes”).

NOW, THEREFORE, in order to
induce Lenders to extend the Loans and the Issuing Bank to issue Letters of
Credit and to make the financial accommodations as provided for in the Amended
and Restated Credit Agreement and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

1.     Defined
Terms.  All
capitalized terms used but not otherwise defined herein have the meanings given
to them in the Amended and Restated Credit Agreement.

2.     Pledge.  Each Pledgor hereby pledges to the
Administrative Agent, for its benefit and the benefit of Lenders and each party
to a Hedging Transaction incurred to limit interest rate or fee fluctuation
with respect to the Loans and Letters of Credit if at the date of entering into
such Hedging Transaction such person
was a Lender or an Affiliate of a Lender and such person executes and delivers
to the Administrative Agent a letter agreement in form and substance acceptable
to the Administrative Agent pursuant to which such person (i) appoints the
Administrative Agent as its agent under the applicable Loan Documents and (ii)
agrees to be bound by the provisions of Article IX and X of the Amended
and Restated Credit Agreement
(each such person a “Specified Hedge Provider”, the Administrative
Agent, the Lenders and the Specified Hedge Providers, collectively, referred to
herein as the “Secured Parties” and each a “Secured Party”) and
grants to the Administrative Agent, for its benefit and the benefit of the
Secured Parties, a first priority security interest in all of such Pledgor’s
right, title and interest in, to and under the following property, whether now
owned by or owing to, or hereafter acquired by or arising in favor of such
Pledgor (collectively, the “Pledged Collateral”):

(a)           The Pledged Shares and the certificates representing the
Pledged Shares, and, except as expressly provided for in Section 8
hereof, all dividends, cash, instruments and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Pledged Shares;

(b)           Any stock or other securities acquired by any Pledgor or
such Pledgor’s designees with respect to, incident to or in lieu of the Pledged
Shares or with respect to, incident to or in lieu of the Pledged Collateral (x)
due to any dividend, stock-split, stock dividend or distribution on
dissolution, or partial or total liquidation, or for any other reason, (y) in
connection with a reduction of capital, capital surplus or paid-in-surplus or
(z) in connection with any spin-off, split-off, reclassification, readjustment,
merger, consolidation, sale of assets, combination of shares or any other plan
of distribution affecting of the those companies listed on Schedule I;

(c)           Any subscription or other rights or options issued in
connection with the Pledged Shares, and, if exercised by any Pledgor, all new
shares or other securities so acquired by such Pledgor, which shall promptly be
assigned and delivered to the Administrative Agent and held under the terms of
this Pledge Agreement in the same manner as the Pledged Shares originally
pledged hereunder;

(d)           Any and all proceeds, monies, income and benefits arising
from or by virtue of, and all dividends and distributions (cash or otherwise)
payable or distributable with respect to, all or any of the Pledged Shares or
other securities and rights and interests described in this Section 2,
except as expressly provided for in Section 8 hereof;

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(e)           The Pledged Membership Interests, if any, and any
certificates at any time representing the Pledged Membership Interests, it being understood that the Pledged
Membership Interests are, as of the date hereof, uncertificated, and all
cash, securities, dividends, rights, and other property at any time and from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Pledged Membership Interests;

(f)            All
of such Pledgor’s right, title and interest as a member in each limited
liability company listed on Part B of Schedule I (the “LLCs”), whether
now owned or hereafter acquired, including all of such Pledgor’s right, title
and interest in, to and under the limited liability company agreements described
on Part B of Schedule I (as such agreements have heretofore been and may
hereafter be amended, restated, supplemented or otherwise modified from time to
time, collectively, the “LLC Agreements”) to which it is a party
(including, the right to vote with respect to and to manage and administer the
business of such LLCs) together with all other rights, interests, claims and
other property of such Pledgor in any manner arising out of or relating to its
membership interest in the LLCs, whatever their respective kind or character,
whether they are tangible or intangible property, and wheresoever they may
exist or be located, and further including, without limitation, and except as
expressly provided for in Section 8, (1) all rights of such Pledgor to receive
distributions of any kind, in cash or otherwise, due or to become due under or
pursuant to each such LLC Agreement or otherwise in respect of such LLCs, (2)
all rights of such Pledgor to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect to each such LLCs, (3) all claims of such
Pledgor for damages arising out of, or for the breach of, or for a default
under, each such LLC Agreement, (4) any certificated  security or uncertificated security as
defined in Section 8-102(18) of the UCC evidencing any of the foregoing issued
by such LLCs to such Pledgor, (5) any interest of such Pledgor in the entries
on the books of any financial intermediary pertaining to such Pledgor’s
interest as a member in the LLCs and (6) to the extent not included in the
foregoing, all proceeds of any and all of the foregoing; provided, however,
that notwithstanding anything herein to the contrary;

(i)            Each Pledgor shall
remain liable under the LLC Agreements to the extent set forth therein to
perform all of its duties and obligations thereunder to the same extent as if
this Pledge Agreement had not been executed;

(ii)           The exercise by the
Administrative Agent of any of its rights hereunder shall not release any
Pledgor from any of its duties or obligations under the LLC Agreements (other
than to the extent a Pledgor is precluded from performing such duties solely as
a result of the Administrative Agent’s having exercised such rights or
remedies);

(iii)          Prior to the
Administrative Agent’s exercising any of its rights hereunder and consistent
with (ii) above, the Administrative Agent shall not have any obligation or
liability under the LLC Agreements by reason of this Pledge Agreement, nor
shall the Administrative Agent be obligated to perform any of the obligations
or duties of the Pledgors thereunder, to make any payment, to make any inquiry
as to the nature or sufficiency of any payment received by the Pledgors or the
sufficiency of any performance by any party under any such LLC Agreement, or to
take any action to collect or enforce any claim for payment assigned hereunder;
and

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(iv)          Without limiting the
generality of the foregoing, neither the grant of the security interest in the
Pledged Collateral in favor of the Administrative Agent as provided herein nor
the exercise by the Administrative Agent of any of its rights hereunder nor any
action by the Administrative Agent in connection with a foreclosure on the
Pledged Collateral shall be deemed to constitute the Administrative Agent or
any other Secured Party a member of any limited liability company;

(g)           The Pledged Notes and the instruments and other documents
representing the Pledged Notes, and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Pledged Notes; and

(h)           All additional promissory notes from time to time acquired
by such Pledgor in any manner and the instruments and other documents
representing such promissory notes and all interest, cash, instruments and
other property, or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such promissory
notes.

provided,
however, that notwithstanding any of the other provisions set forth in
this Agreement, Collateral shall not include any property to the extent that a
grant of a security interest is prohibited by any requirements of law of a
governmental authority,  except to the
extent that such prohibition is ineffective under applicable law (including by
means of Sections 9-407, 9-408 or 9-409 of the UCC).

3.     Security
For Secured Obligations.  This Pledge Agreement and the Pledged
Collateral secure the prompt payment, in full when due, whether at stated
maturity, by acceleration or otherwise, and performance of (i) with respect to
the Borrower, all Obligations of Borrower under the Amended and Restated Credit
Agreement and the other Loan Documents (whether for principal, interest, fees,
expenses, indemnity or reimbursement payments, or otherwise, as provided in the
Amended and Restated Credit Agreement or such other Loan Documents), (ii) with
respect to the Subsidiary Pledgors, all obligations of each such Subsidiary
Pledgor under the Subsidiary Guaranty Agreement and all other Loan Documents to
which such Pledgor is a party to (whether for principal, interest, fees,
expenses, indemnity or reimbursement payments, or otherwise, as provided in the
Amended and Restated Credit Agreement or such other Loan Documents), (iii) all
renewals, extensions, refinancings and modifications thereof, and (iv) all
interest, charges, expenses, fees, reasonable attorneys’ fees and other sums
required to be paid by any Pledgor under the Amended and Restated Credit
Agreement, under this Pledge Agreement or under any of the other Loan Documents
(collectively, the “Secured Obligations”).

4.     Delivery
Of Pledged Collateral.  All certificates, promissory notes and
instruments representing or evidencing the Pledged Collateral shall be
delivered to and held by or on behalf of the Administrative Agent pursuant
hereto. All Pledged Shares and Pledged Membership Interests shall be
accompanied by duly executed, undated instruments of transfer or assignment
endorsed in blank, all in form and substance reasonably satisfactory to the
Administrative Agent and, if the Administrative Agent so reasonably requests,
with signatures 

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guaranteed by a member of a registered national
securities exchange or the National Association of Securities Dealers, Inc. or
by a commercial bank or trust company having an office or correspondent in the
United States.  All Pledged Notes shall
be endorsed by the applicable Pledgor. 
Upon the occurrence and during the continuance of an Event of Default,
the Administrative Agent shall have the right, at any time in its discretion
and without notice to any Pledgor, to transfer to or to register in the name of
the Administrative Agent or any of its nominees any or all of the Pledged
Shares or Pledged Membership Interests. 
In addition, the Administrative Agent shall have the right at any time
to exchange certificates or instruments representing or evidencing Pledged
Shares or Pledged Membership Interests for certificates or instruments of
smaller or larger denominations.

5.     Representations
and Warranties. 
Each Pledgor represents and warrants to the Secured Parties as follows:

(a)           Each Pledgor is, and at the time of delivery of the
Pledged Shares and Pledged Membership Interests to the Administrative Agent
pursuant to Section 4 hereof will be, the sole holder of record and the
sole beneficial owner of the Pledged Collateral pledged by such Pledgor, free
and clear of any Lien thereon or affecting the title thereto except for
Permitted Encumbrances.

(b)           All of the Pledged Shares and Pledged Membership Interests
have been duly authorized, validly issued and are fully paid and non-assessable
and all documentary, stamp, or other taxes or fees owing in connection with the
issuance, transfer and/or pledge thereof hereunder have been paid and will be
hereafter paid by each Pledgor as same becomes due and payable.

(c)           To the best of the knowledge of the Pledgor after due
inquiry, no dispute, counterclaim or defense exists with respect to all or any
part of the Pledged Collateral.

(d)           Each Pledgor has the requisite corporate authority to
pledge, assign, transfer, deliver, deposit and set over its Pledged Collateral
to the Administrative Agent as provided herein.

(e)           There are no restrictions, other than applicable laws and
regulations affecting the offering and sales of securities generally, upon the
transfer, hypothecation or pledge of any of the Pledged Collateral.

(f)            None of the Pledged Shares or Pledged Membership
Interests have been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to
which such issuance or transfer may be subject.

(g)           Part A of Schedule I hereto lists the authorized
shares of common stock, the par value thereof and the number of issued and
outstanding shares of common stock of each issuer of Pledged Shares.  As of the date hereof, (i) no subscription,
warrant, option or other rights to purchase or acquire any shares of any class
of capital stock of any issuer of Pledged Shares is authorized and outstanding,
and (ii) there is no commitment by any issuer of Pledged Shares to issue any
such shares, warrants, options or other such rights or securities.

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(h)           Part B of Schedule I hereto lists all of the issued
and outstanding membership interests of each issuer of Pledged Membership
Interests.  As of the date hereof, (i) no
subscription, warrant, option or other rights to purchase or acquire any
membership interests of any issuer of Pledged Membership Interests is
authorized and outstanding, and (ii) there is no commitment by any issuer of
Pledged Membership Interests to issue any such warrants, options or other such
rights or securities.

(i)    Subject to the last paragraph of Section 1, the pledge by each
Pledgor of its Pledged Collateral is not in contravention of any law or of any
agreement to which such Pledgor is party or by which such Pledgor is otherwise
bound, and no consent, approval, authorization or other order of, or other
action by, any Person or notice to or filing with, any Person is required (x)
for the pledge by such Pledgor of the Pledged Collateral pursuant to this
Pledge Agreement or for the execution, delivery or performance of this Pledge
Agreement by such Pledgor or (y) for the exercise by the Administrative Agent
of the voting or other rights provided for in this Pledge Agreement or the
remedies in respect of the Pledged Collateral pursuant to this Pledge Agreement
(except as may be required in connection with any disposition of any portion of
the Pledged Collateral by laws affecting the offering and sale of securities
generally).

(j)            The pledge, assignment and delivery of the Pledged
Collateral together with duly executed, undated instruments of transfer or
assignment endorsed in blank pursuant to this Pledge Agreement will create a
valid first priority Lien on and a first priority perfected security interest
in the Pledged Collateral and the proceeds thereof, except for Permitted
Encumbrances, securing the payment of the Secured Obligations  and no filing or other action is necessary
to perfect or protect such security interest, except that (i) the filing of a
financing statement, the taking of possession or some other action may be
required under Section 9-315 of the Uniform Commercial Code as in effect in the
State of New York (the “UCC”) to perfect a security interest in certain
proceeds of the Pledged Collateral that do not constitute Pledged Shares or
other securities or instruments and (ii) the filing of a financing statement
under Sections 9-312 and 9-314 of the UCC may be required to perfect a security
interest in any Pledged Collateral that constitutes “investment property”
(other than the Pledged Shares) with respect to which the Administrative Agent
does not have “control” (as such terms are defined in the UCC).

(k)           All
of the representations and warranties contained in the Amended and Restated
Credit Agreement and the other Loan Documents are true and correct in all
material respects, are incorporated herein by this reference and deemed to be
made herein by each Pledgor for purposes of this Pledge Agreement.

(l)            Each
of the Pledged Notes purported to be pledged hereunder is the legal, valid and
binding obligation of the obligor thereof, enforceable in accordance with its
terms; each of the Pledged Notes has been duly authorized, authenticated or
issued and delivered by the issuer thereof, and no such issuer is in default
thereunder on the date hereof.  Except as
disclosed on Schedule II hereto, none of the Pledged Notes are
subordinated in right of payment to other indebtedness (except for the Secured Obligations)
or subject to the terms of an indenture.

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(m)          This
Pledge Agreement has been duly authorized, executed and delivered by each
Pledgor and constitutes a legal, valid and binding obligation of such Pledgor
enforceable against such Pledgor in accordance with its terms.

The
representations and warranties set forth in this Section 5 shall survive
the execution and delivery of this Pledge Agreement.

6.     Covenants.
 Each Pledgor covenants and agrees that
from and after the date of this Pledge Agreement and until the payment and
performance in full of all of the Secured Obligations of such Pledgor (other
than indemnities and other similar contingent obligations surviving the
termination of this Pledge Agreement for which no claim has been made and which
are unknown and not calculable at the time of termination and those Obligations
relating to the Hedging Obligations):

(a)           Such Pledgor shall not sell, assign, transfer, pledge or
otherwise encumber any of its rights in or to its Pledged Collateral or any unpaid
dividends or other distributions or payments with respect thereto except
pursuant to this Pledge Agreement .

(b)           Except as may be permitted by the Amended and Restated
Credit Agreement, such Pledgor will not cause or permit any issuer of Pledged
Shares or Pledged Membership Interests to issue or grant any warrants, stock
options of any nature or other instruments convertible into membership
interests or shares of any class of capital stock or additional membership
interests or shares of capital stock or sell or transfer any membership
interests or treasury stock, subject to the fiduciary duties of the board of
directors (or equivalent persons) of such issuer.

(c)           Such Pledgor will, at its own cost and expense, promptly
execute, acknowledge and deliver all such instruments and take all such action
as the Administrative Agent from time to time may reasonably request in order
to perfect and protect the Lien granted or purported to be granted hereby or to
enable the Administrative Agent to exercise and enforce its rights and remedies
hereunder with respect to the Pledged Collateral.

(d)            Such Pledgor has and will, at its own cost and expense,
defend the title to its Pledged Collateral and the Liens of the Administrative
Agent thereon against the claim of any Person and will maintain and preserve
such Liens.

(e)           Such Pledgor will pay all taxes, assessments and charges
levied, assessed or imposed upon its Pledged Collateral before the same become
delinquent or become Liens upon any of its Pledged Collateral except for
Permitted Encumbrances, except where the same may be contested in good faith by
appropriate proceedings and as to which adequate reserves have been provided.

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7.     Adjustments
and Distributions Concerning Pledged Collateral.  Should the Pledged Collateral, or any part
thereof, ever be converted in any manner by any Pledgor into another type of
property or any money or other proceeds ever be paid or delivered to any
Pledgor as a result of such Pledgor’s rights in the Pledged Collateral, then in
any such event (except as expressly provided in Section 8 hereof), all
such property, money and other proceeds shall promptly be and become part of
the Pledged Collateral, and each Pledgor covenants and agrees to forthwith pay
and deliver all money so received to the Administrative Agent, for the benefit
of the Secured Parties, as Pledged Collateral hereunder in accordance with the
provisions of the Amended and Restated Credit Agreement; and, if the
Administrative Agent deems it reasonably necessary and so requests, to properly
endorse, assign or transfer any and all such other proceeds to the
Administrative Agent and to deliver to the Administrative Agent any and all
such other proceeds which require perfection by possession under the UCC.  With respect to any of such property of a
kind requiring an additional security agreement, financing statement or other
writing to perfect a security interest therein in favor of the Administrative
Agent, each Pledgor will forthwith execute and deliver to the Administrative Agent,
or cause to be executed and delivered to the Administrative Agent, whatever the
Administrative Agent shall reasonably deem necessary or proper for such
purposes.

8.     Pledgors’
Rights; Termination Of Rights.

(a)           As long as no Event of Default shall have occurred and be
continuing:

(i)            Each
Pledgor shall have the right, from time to time, to vote and give consents with
respect to its Pledged Collateral or any part thereof for all purposes  permitted by the Amended and Restated Credit
Agreement or any other Loan Documents; provided, that, without
limitation of the foregoing, no vote shall be cast, and no consent shall be
given or action taken by any Pledgor without the prior written consent of the
Administrative Agent that would authorize or effect (except if and to the
extent expressly permitted by the Amended and Restated Credit Agreement and
subject to the fiduciary duties of the board of directors (or equivalent
persons) of such issuer): (A) the dissolution or liquidation, in whole or in
part, of any issuer of the Pledged Collateral, (B) the consolidation or merger
of any issuer of the Pledged Collateral with any other Person (other than any
Pledgor), (C) the sale, disposition or encumbrance of any portion of the assets
of any issuer of the Pledged Collateral or any business or division thereof,
(D) any change in the authorized number of shares or membership interests, the
stated capital or the authorized shares or member interest capital of any
issuer of the Pledged Collateral or the issuance of any additional shares of
capital stock or membership interests thereof, or (E) the alteration of the
voting rights with respect to the capital stock or membership interests of any
issuer of the Pledged Collateral;

(ii)           Each
Pledgor shall be entitled, from time to time, to collect and receive for its
own use all dividends, distributions and other amounts paid in respect of its
Pledged Collateral to the extent not in violation of the Amended and Restated
Credit Agreement other than any and all: 
(A) dividends paid or payable other than in cash in respect of, and
instruments and other property received, receivable or otherwise distributed in
respect of, or in exchange for, any of its Pledged Collateral, (B) dividends 

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and other distributions paid or payable in cash in respect of any of
its Pledged Collateral in connection with a partial or total liquidation,
dissolution or a reduction in capital, capital surplus or paid in capital, and
(C) cash paid, payable or otherwise distributed in redemption of, or in
exchange for, any of its Pledged Collateral; provided, that until
actually paid all  rights to such
dividends shall remain subject to the Lien created by this Pledge Agreement.

(b)           All dividends (other than such cash dividends as are
permitted to be paid to the Pledgors in accordance with Section 8(a)(ii)
above) and all other distributions in respect of any of the Pledged Shares,
Pledged Membership Interests or Pledged Notes, whenever paid or made, shall be
delivered to the Administrative Agent to hold as Pledged Collateral and shall,
if received by any Pledgor, be received in trust for the benefit of the
Administrative Agent, be segregated from the other property or funds of such
Pledgor, and be forthwith delivered promptly to the Administrative Agent as
Pledged Collateral of such Pledgor in the same form as so received (with any
necessary endorsement or assignment).

(c)           Upon the occurrence of an Event of Default and during the
continuation thereof, all of Pledgors’ rights to exercise voting and other
consensual rights pursuant to Section 8(a)(i) hereof and all of Pledgors’
rights to receive any cash dividends and distributions pursuant to Section
8(a)(ii) hereof shall cease and all such rights shall thereupon become
vested in the Administrative Agent, for the benefit of the Secured Parties, who
shall have the sole and exclusive right to exercise the voting and other
consensual rights which the Pledgors would otherwise be authorized to exercise
pursuant to Section 8(a)(i) hereof and to receive and retain the
dividends and distributions which the Pledgors would otherwise be authorized to
receive and retain pursuant to Section 8(a)(ii) hereof.  Upon the occurrence of an Event of Default
and during the continuation thereof, each Pledgor shall pay over to the
Administrative Agent, for the benefit of the Secured Parties, any dividends
received by such Pledgor with respect to its Pledged Collateral and any and all
money and other property paid over to or received by the Administrative Agent
shall be retained by the Administrative Agent, for the benefit of the Secured
Parties, as Pledged Collateral hereunder and shall be applied in accordance
with the terms of the Amended and Restated Credit Agreement.

9.     Default.  The Pledgors shall be in default under this
Pledge Agreement upon the occurence of any of the following events or
conditions (hereinafter referred to as an “Event of Default”):

(i)            The
occurrence of an Event of Default as defined in the Amended and Restated Credit
Agreement;

(ii)           The filing
of any financing statement with regard to the Pledged Collateral, other than
relating to or permitted by this Pledge Agreement, or the attachment of any
additional Lien or security interest to any portion of the Pledged Collateral,
for the benefit of any Person other than the Administrative Agent; and

(iii)          Failure of any Pledgor to observe any of its
respective covenants set forth in this Pledge Agreement.

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10.  Remedies
Upon An Event Of Default.

(a)           Upon the occurrence of an Event of Default and during the
continuation thereof, the Administrative Agent may exercise all rights of a
secured party under the UCC (whether or not the UCC applies to the affected
collateral).  In addition, the
Administrative Agent is hereby authorized and empowered to  transfer and register in its name or in the
name of its nominee the whole or any part of the Pledged Collateral, exercise
the voting rights with respect thereto, collect and receive all cash dividends
and other distributions made thereon, sell in one or more sales after ten (10)
days’ notice of the time and place of any public sale or of the time after
which a private sale is to take place (which notice each Pledgor agrees is
commercially reasonable), but without any previous notice or advertisement, the
whole or any part of the Pledged Collateral and otherwise act with respect to
the Pledged Collateral as though the Administrative Agent was the legal and
record owner thereof.  Each Pledgor
hereby irrevocably constitutes and appoints the Administrative Agent, for the
benefit of the Secured Parties, as the proxy and attorney-in-fact of such
Pledgor with respect to the Pledged Collateral, with full power of substitution
to exercise any of the rights provided in the preceding sentence; provided,
that the Administrative Agent shall not have any duty to exercise any such
right or to preserve the same and shall not be liable for any failure to do so
or for any delay in doing so.  Any sale
shall be made at a public or private sale at the Administrative Agent’s offices
or elsewhere to be named in the notice of sale, either for cash or upon credit
or for future delivery at such price as the Administrative Agent may deem fair,
and any Secured Party may be the purchaser of the whole or any part of the
Pledged Collateral so sold and hold the same thereafter in its own right free
from any claim of any Pledgor or any right of redemption, which each Pledgor
hereby waives to the extent permitted by applicable law.  Each sale shall be made to the highest
bidder, but the Administrative Agent reserves the right to reject any and all
bids at such sale which, in its discretion, it shall deem inadequate.  Demands of performance, except as otherwise
herein specifically provided for, notices of sale, advertisements and the
presence of property at sale are hereby waived and any sale hereunder may be
conducted by an auctioneer or any officer or agent of the Administrative Agent.

(b)           If, at the original time or times appointed for the sale
of the whole or any part of the Pledged Collateral, the highest bid, if there
be but one sale, shall be inadequate to discharge in full all the Secured
Obligations, or if the Pledged Collateral be offered for sale in lots, if at
any of such sales, the highest bid for the lot offered for sale would indicate
to the Administrative Agent, in its discretion, the unlikelihood of the
proceeds of the sales of the whole of the Pledged Collateral being sufficient
to discharge all the Secured Obligations, the Administrative Agent may, on one
or more occasions and in its discretion, postpone any of said sales by public
announcement at the time of sale or the time of previous postponement of sale,
and no other notice of such postponement or postponements of sale need be
given, any other notice being hereby waived; provided, that any sale or
sales made after such postponement shall be after ten (10) days’ notice from
the Administrative Agent to any such Pledgor.

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(c)           If, at any time that the Administrative Agent shall
determine to exercise its rights to sell the whole or any part of the Pledged
Collateral hereunder, such Pledged Collateral or the part thereof to be sold
shall not, for any reason whatsoever, be effectively registered under the
Securities Act of 1933, as amended (the “Act”), the Administrative Agent
may, in its discretion (subject only to applicable requirements of law), sell
such Pledged Collateral or part thereof by private sale in such manner and
under such circumstances as the Administrative Agent may deem necessary, but
subject to the other requirements of this Section 9, and shall not be required
to effect such registration or to cause the same to be effected.  Without limiting the generality of the
foregoing, in any such event the Administrative Agent in its discretion (i)
may, in accordance with applicable securities laws, proceed to make such
private sale notwithstanding that a registration statement for the purpose of
registering such Pledged Collateral or part thereof could be or shall have been
filed under said Act (or similar statute), (ii) may approach and negotiate with
a single possible purchaser to effect such sale, (iii) may restrict such sale
to a purchaser who will represent and agree that such purchaser is purchasing
for its own account, for investment and not with a view to the distribution or
sale of such Pledged Collateral or part thereof, and (iv) may place all or any
part of the Pledged Collateral with an investment banking firm for private
placement, which firm shall be entitled to purchase all or any part of the
Pledged Collateral for its own account. 
If any of the Pledged Collateral shall not be freely distributable to
the public without registration under the Act (or similar statute), then the
Administrative Agent shall not be required to effect such registration or cause
the same to be effected but, in its discretion (subject to applicable
requirements of law), may require that any sale hereunder (including a sale at
auction) be conducted subject to restrictions (i) as to the financial
sophistication and ability of any Person permitted to bid or purchase at any
such sale, (ii) as to the content of legends to be placed upon any certificates
representing the Pledged Collateral sold in such sale, including restrictions
on future transfer thereof, (iii) as to the representations required to be made
by each Person bidding or purchasing at such sale relating to that Person’s
access to financial information about any Pledgor or any of its subsidiaries so
sold and such Person’s intentions as to the holding of the Pledged Collateral
so sold for investment, for its own account, and not with a view to the
distribution thereof, and (iv) as to such other matters as the Administrative
Agent may, in its discretion, deem necessary in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the UCC and other laws affecting the enforcement of creditors’ rights and the
Act and all applicable state securities laws.

(d)           Each Pledgor acknowledges that, notwithstanding the legal
availability of a private sale or a sale subject to the restrictions described
above in paragraph (c), the Administrative Agent may, in its discretion, elect
to register any or all the Pledged Collateral under the Act (or any applicable
state securities law).  Each Pledgor,
however, recognizes that the Administrative Agent may be unable to effect a
public sale of any or all the Pledged Collateral and may be compelled to resort
to one or more private sales thereof. 
Each Pledgor also acknowledges that any such private sale may result in
prices and other terms less favorable to the seller than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner.  The Administrative Agent shall
be under no obligation to delay a sale of any of the Pledged Collateral for the
period of time necessary to permit the registrant to register such securities
for public sale under the Act, or under applicable state securities laws, even
if each Pledgor would agree to do so.

 11

(e)           Any cash held by the Administrative Agent as Pledged
Collateral and all cash proceeds received by the Administrative Agent in
respect of any sale of, collection from, or other realization upon all or any
part of the Pledged Collateral may, in the reasonable discretion of the
Administrative Agent, be held by the Administrative Agent as collateral for,
and/or then or at any time thereafter be applied (after payment of any amounts
payable to the Administrative Agent pursuant to Section 12 hereof) in
whole or in part by the Administrative Agent for the benefit of the Secured
Parties in their individual and various agency capacities and any other holder
of any Secured Obligations against, all or any part of the Secured Obligations
in accordance with the terms hereof.  Any
surplus of such cash or cash proceeds held by the Administrative Agent and
remaining after payment in full of all the Secured Obligations shall be paid
over to the Pledgors or to whomsoever may be lawfully entitled to receive such
surplus.

(f)            Each Pledgor agrees that following the occurrence and
during the continuation of an Event of Default it will not at any time plead,
claim or take the benefit of any appraisal, valuation, stay, extension,
moratorium or redemption law now or hereafter in force in order to prevent or
delay the enforcement of this Pledge Agreement, or the absolute sale of the
whole or any part of the Pledged Collateral or the possession thereof by any
purchaser at any sale hereunder, and each Pledgor waives the benefit of all
such laws to the extent it lawfully may do so. 
Each Pledgor agrees that it will not interfere with any right, power and
remedy of the Administrative Agent provided for in this Pledge Agreement or now
or hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by the Administrative Agent of any one or
more of such rights, powers, or remedies. 
No failure or delay on the part of the Administrative Agent to exercise
any such right, power or remedy and no notice or demand which may be given to
or made upon any Pledgor by the Administrative Agent with respect to any such
remedies shall operate as a waiver thereof, or limit or impair the
Administrative Agent’s right to take any action or to exercise any power or
remedy hereunder, without notice or demand, or prejudice its rights as against
any Pledgor in any respect.  Except for
gross negligence or willful misconduct, each Pledgor waives all claims, damages
and demands against the Administrative Agent arising out of the repossession,
retention or sale of the Pledged Collateral.

11.  Power
Of Attorney.  Each
Pledgor appoints the Administrative Agent, or any other Person whom the
Administrative Agent may designate, as each Pledgor’s true and lawful
attorney-in-fact, with, upon the occurrence and during the continuance of an
Event of Default, power to endorse each 
Pledgor’s name on any checks, notes, acceptances, money orders, drafts
or other form of payment or security representing a portion of the Pledged Collateral
that may come into the Administrative Agent’s possession and to do all
things  necessary to carry out the terms
of this Pledge Agreement.  Each Pledgor
ratifies and approves all such acts of such attorney-in-fact.   Except gross negligence or willful
misconduct, neither the Administrative Agent nor any other Person designated by
the Administrative Agent as attorney-in-fact hereunder will be liable for any
acts or omissions, nor for any errors of judgment or mistakes of fact or law.  This power, coupled with an interest, is
irrevocable until the payment in full of all Secured Obligations of each
Pledgor (other than indemnities and other similar contingent obligations
surviving the termination of this Pledge Agreement for which no claim has been
made and which are unknown and not calculable at the time of termination and
those Obligations relating to the Hedging Obligations).

 12
 

12.  Administrative
Agent’s Right To Take Action.  In the event that any Pledgor fails or
refuses  promptly to perform any of its obligations
set forth herein, including, without limitation, its obligation pursuant to Section
6(e) hereof to pay taxes, assessments and other charges levied, assessed or
imposed on the Pledged Collateral, or otherwise fails or refuses to pay any
amount necessary for the preservation and protection of the Pledged Collateral,
the Administrative Agent shall have the right, without obligation, by notice to
the Pledgors, to do all things it deems necessary to discharge the same
(including, without limitation, to pay any such taxes, assessments, charges or
other sums, together with interest and penalties thereon) and any sums paid by
the Administrative Agent, or the cost thereof, including, without limitation,
reasonable attorneys’ fees, shall be reimbursed by the Pledgors, to the
Administrative Agent on demand and, until so reimbursed, shall bear interest at
the highest rate chargeable in accordance with the conditions under Section
2.12(c) of the Amended and Restated Credit Agreement.

13.  Expenses.  The Pledgors shall, jointly and severally,
pay (i) all reasonable costs, expenses, taxes and fees incurred by the
Administrative Agent in connection with the negotiation, preparation, execution
and delivery of this Pledge Agreement and all certificates, opinions and other
documents relating to these transactions, including, without limitation, the
reasonable disbursements and professional fees of Hunton and Williams, counsel
to the Administrative Agent, in all cases whether or not the transaction
contemplated hereby shall be consummated; (ii) all costs, expenses, taxes and
fees incurred by the Administrative Agent in connection with the perfection,
registration, maintenance, administration, custody and preservation of the
Pledged Collateral, including, without limitation, with respect to any and all
present and future stamp, intangible or other taxes in connection with this
Pledge Agreement and all other documents executed or delivered in connection
herewith, and relating to releases and consents; and (iii) all costs, expenses,
taxes and fees incurred by any of the Secured Parties in connection with or
after the occurrence of any Event of Default, including, without limitation, in
connection with (a) the negotiation, preparation, execution and delivery of any
waiver, amendment or consent by the Secured Parties, (b) the negotiation of any
restructuring or workout transaction, and the preparation, execution and
delivery of any documents prepared in connection therewith, and (c) enforcement
or foreclosure with respect to this Pledge Agreement, in all such cases such
costs, expenses, taxes and fees shall include, without limitation, the
reasonable disbursements and reasonable professional fees actually incurred of
counsel to any Secured Party.  To the
extent that any such fees and expenses are subject to value added taxes, such
taxes will be paid by the Pledgors.  To
the extent reimbursement is sought pursuant to this Section 13 or any
other document executed pursuant hereto, the Secured Parties shall submit to
the Pledgors a statement of expenses to be paid by the Pledgors.  Such expenses shall be due and payable within
thirty (30) days of the date of the original statement to the extent that such
Secured Party is entitled to such reimbursement.

14.  Indemnity.  The Pledgors, jointly and severally, will
indemnify and hold harmless each of the Secured Parties and each of their
respective employees, representatives, officers and directors from and against
any and all claims, liabilities, investigations, losses, damages, actions, and
demands by any party against the Secured Parties or any of them resulting from
any breach or alleged breach by any Pledgor of any representation or warranty
made hereunder, or otherwise arising out of this Pledge Agreement, unless, with
respect to any of the 

 13
 

above, any of the Secured Parties are finally
judicially determined to have (a) acted or failed to act with gross negligence
or willful misconduct or (b) materially breached such Secured Party’s
obligations hereunder following a good faith, bona fide claim being brought by
Pledgor.  This Section 14
shall survive termination of this Pledge Agreement.

15.  Limitation
On the Administrative Agent’s Duty In Respect Of Pledged Collateral.
The Administrative Agent shall use reasonable care with respect to the Pledged
Collateral in its possession or under its control. The powers conferred on the
Administrative Agent hereunder are solely to protect its interest in the
Pledged Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Pledged Collateral in its possession
and the accounting for moneys actually received by it hereunder, the
Administrative Agent shall have no duty as to any Pledged Collateral or any
income thereon, as to ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Pledged Collateral, whether or not the Administrative Agent, or any other
Secured Party has or is deemed to have knowledge of such matters, or as to the
taking of any necessary steps to preserve rights against any parties or any
other rights pertaining to any Pledged Collateral.  The Administrative Agent shall be deemed to
have exercised reasonable care in the custody and preservation of any Pledged
Collateral in its possession if such Pledged Collateral is accorded treatment
substantially equal to that which the Administrative Agent accords its own
property.

16.  Security
Interest Absolute. 
All rights of the Administrative Agent and security interests hereunder,
and all obligations of each Pledgor hereunder, to the extent permitted by law,
shall be absolute and unconditional irrespective of:

(a)          
any lack of validity or enforceability of the Loan Documents;

(b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations, or any other amendment or waiver of or any
consent to any departure from the Loan Documents including, without limitation,
any increase in the Secured Obligations resulting from the extension of
additional credit to any Pledgor or any of its Subsidiaries or otherwise;

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

(d)           any
manner of application of collateral, or proceeds thereof, to all or any of the
Secured Obligations, or any manner of sale or other disposition of any
collateral for all or any part of the Secured Obligations or any other assets
of any Pledgor or any of its Subsidiaries;

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

(f)            any
other circumstance which might otherwise constitute a defense available to, or
a discharge of, any Pledgor or a third party pledgor.

 14
 

17.  Reinstatement.  This Pledge Agreement shall remain in full
force and effect and continue to be effective should any petition be filed by
or against any Pledgor for liquidation or reorganization, should any Pledgor
become insolvent or make an assignment for the benefit of any creditor or
creditors or should a receiver or trustee be appointed for all or any
significant part of any Pledgor’s assets, and shall continue to be effective or
be reinstated, as the case may be, if at any time payment and performance of
the Secured Obligations, or any part thereof, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by
any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made.  In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Secured Obligations shall be reinstated and deemed reduced only
by such amount paid and not so rescinded, reduced, restored or returned.

18.  Successors
And Assigns.  This
Pledge Agreement and all obligations of each Pledgor hereunder shall be binding
upon the successors and assigns of such Pledgor (including any
debtor-in-possession on behalf of such Pledgor) and shall, together with the
rights and remedies of the Administrative Agent, for the benefit of the Secured
Parties, hereunder, inure to the benefit of the Administrative Agent, the other
Secured Parties, all future holders of any instrument evidencing any of the
Secured Obligations and their respective successors and assigns.  No sales of participations, other sales, assignments,
transfers or other dispositions of any agreement governing or instrument
evidencing the Secured Obligations or any portion thereof or interest therein
shall in any manner affect the Lien granted to the Administrative Agent, for
the benefit of the Secured Parties, hereunder. 
No Pledgor may assign, sell, hypothecate or otherwise transfer any
interest in or obligation under this Pledge Agreement without the prior written
consent of the Lenders.

19.  Waivers;
Amendment.

(a)           No failure or delay
by any Secured Party of any kind in exercising any power, right or remedy
hereunder and no course of dealing between any Pledgor on the one hand and the
administrative Agent or the holder of any Note on the other hand shall operate
as a waiver thereof, nor shall any single or partial exercise of any such
power, right or remedy hereunder or under any other Loan Document, or any
abandonment or discontinuance of steps to enforce such a power, right or
remedy, preclude any other or further exercise thereof or the exercise of any
other power, right or remedy.  The rights
of the Secured Parties hereunder and of the Lenders under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of this Pledge Agreement or consent to any departure by any
Pledgor therefrom shall in any event be effective unless the same shall be
permitted by subsection (b) below, and then such waiver and consent shall
be effective only in the specific instance and for the purpose for which
given.  No notice or demand on any
Pledgor in any case shall entitle such Pledgor to any other or further notice
in similar or other circumstances.

(b)           Neither this Pledge Agreement nor any
provision hereof may be waived, amended or modified except pursuant to a
written agreement entered into between the Pledgors with respect to which such
waiver, amendment or modification relates and the Administrative Agent, with
the prior written consent of the Required Lenders (except as otherwise provided
in the Amended and Restated Credit Agreement).

 15
 

20.  Severability.   Any provision of this Pledge Agreement held
to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or
unenforceability without affecting the legality, validity or enforceability of
the remaining provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

21.  Notices.  All notices, requests and other
communications to the Pledgors or Administrative Agent hereunder shall be
delivered in the manner required by the Amended and Restated Credit Agreement
and shall be sufficiently given to Administrative Agent or any Pledgor if
addressed or delivered to them at, in the case of the Administrative Agent and
Borrowers, its addresses and telecopier numbers specified in the Amended and
Restated Credit Agreement and in the case of any other Pledgor, at their
respective addresses and telecopier numbers provided in the Subsidiary Guaranty
Agreement.  All such notices and
communications shall be deemed to have been duly given at the times set forth
in the Amended and Restated Credit Agreement.

22.  Counterparts;
Integration.  This
Pledge Agreement may be executed by one or more of the parties to this Pledge
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. This Pledge Agreement constitutes the entire agreement
among the parties hereto regarding the subject matters hereof and supersedes
all prior agreements and understandings, oral or written, regarding such
subject matter.

23.  Governing
Law; Jurisdiction; Consent to Service of Process.

(a)           This
Pledge Agreement shall be construed in accordance with and be governed by the
law of the State of New York.

(b)           Each
party to this Pledge Agreement hereby irrevocably and unconditionally submits,
for itself and its property, to the non-exclusive jurisdiction of the United
States courts located within the  Southern
district in the State of New York, and of any state court of the State of New
York located in New York county and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Pledge Agreement or
any other Loan Document or the transactions contemplated hereby or thereby, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York state
court or, to the extent permitted by applicable law, such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.  Nothing in this Pledge Agreement shall affect
any right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Pledge
Agreement against any Pledgor or its properties in the courts of any
jurisdiction.

 16
 

(c)           Each
party to this Pledge Agreement ir­­revocably and unconditionally waives any
objection which it may now or hereafter have to the laying of venue of any
such suit, action or proceeding described in paragraph (b) of this Section and
brought in any court referred to in paragraph (b) of this Section.  Each party hereto irrevocably waives, to the
fullest extent permitted by applicable law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

(d)           Each party to this Pledge Agreement
irrevocably consents to the service of process in the manner provided for
notices in Section 10.1 of the Amended and Restated Credit
Agreement.  Nothing in this Pledge
Agreement will affect the right of the Administrative Agent or any Lender to
serve process in any other manner permitted by law.

24.  WAIVER
OF JURY TRIAL. 
EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS PLEDGE AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (i) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (ii) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

25.  Benefit
of Secured Parties. 
All Liens granted or contemplated hereby shall be for the benefit of the
Secured Parties, and all proceeds or payments realized from Pledged Collateral
in accordance herewith shall be applied to the Secured Obligations in
accordance with Section 8.2 of the Amended and Restated Credit Agreement.

26.  Termination
of this Pledge Agreement. 
No termination or cancellation (regardless of cause or procedure) of the
Amended and Restated Credit Agreement shall in any way affect or impair the
powers, obligations, duties, rights and liabilities of the parties hereto in
any way with respect to (i) any transaction or event occurring prior to such
termination or cancellation, (ii) the Pledged Collateral, or (iii) any Pledgor’s
undertakings, agreements, covenants, warranties and representations contained
in this Pledge Agreement and all such undertakings, agreements, covenants,
warranties and representations shall survive such termination or cancellation
until the payment and performance, in full, of all Secured Obligations (other
than indemnities and other similar contingent obligations surviving the
termination of this Pledge Agreement for which no claim has been made and which
are unknown and not calculable at the time of termination and those Obligations
relating to the Hedging Obligations) of the Pledgors and the termination of all
commitments to lend or issue letters of credit under the Amended and Restated
Credit Agreement.  Subject to Section
17  hereof, this Pledge Agreement and the security interests granted hereunder
shall terminate when all of the Secured Obligations (other than those Secured
Obligations relating to the Hedging Obligations) have been paid in full in cash
and the Lenders have no further commitment to lend under the Amended and
Restated Credit Agreement, the LC 

 17
 

Exposure has been reduced to zero and the Issuing Bank
has no further obligation to issue Letters of Credit under the Amended and
Restated Credit Agreement.  Upon such
termination, Administrative Agent shall return all Pledged Collateral in its
possession to the respective Pledgors and will, at the sole cost and expense of
the Pledgors, execute such documents, without recourse or warranty, as Pledgors
deem reasonably necessary to release any interests held by Administrative Agent
or the Secured Parties in the Pledged Collateral.

27.  Additional
Pledged Collateral. 
In the event that the any Pledgor is required, under the terms of any
Loan Document or otherwise, to pledge and hypothecate any Collateral after the
Closing Date, such Pledgor shall pledge and hypothecate such Collateral, and be
bound with respect to such Col­lateral by all of the terms and conditions
hereof, by delivery to the Administrative Agent of an executed counter­part of
a Supplement to Subsidiary Pledge Agreement in the form of Exhibit A
attached hereto.

28.  Additional
Pledgors.  Pursuant
to Section 5.10 of the Amended and Restated Credit Agreement, each Subsidiary
that that is required to become a Subsidiary Loan Party after the date of the
Amended and Restated Credit Agreement is required to enter into this Agreement
as a Pledgor upon becoming such a Subsidiary Loan Party.  Upon execution and delivery after the date
hereof by the Administrative Agent and such Subsidiary of an instrument in the
form of Exhibit B, such Subsidiary shall become a Pledgor hereunder with
the same force and effect as if originally named as a Pledgor herein.  The execution and delivery of any instrument
adding an additional Pledgor as a party to this Pledge Agreement shall not
require the consent of any other Pledgor hereunder.  The rights and obligations of each Pledgor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Pledgor as a party to this Pledge Agreement.

[Signature Pages Follow]

 

 18

IN
WITNESS WHEREOF, each Pledgor has caused this Pledge Agreement to be executed
and delivered by its duly authorized officer as of the date first set forth
above.

	
  

  	
   

  	
  AAI CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
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  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UNITED INDUSTRIAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AAI/ACL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AAI SERVICES CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

 

[SIGNATURE PAGE TO
AMENDED AND RESTATED BORROWER PLEDGE AGREEMENT]

 

 

 

	
  

  	
   

  	
  SYMTX, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MCTURBINE INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Francis X. Reinhardt

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Francis X. Reinhardt

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President, Financial Integration and Control

  

 

 

 

 

 

 

[SIGNATURE PAGE TO
AMENDED AND RESTATED BORROWER PLEDGE AGREEMENT]

 

 

 

	
  Acknowledged and Agreed to:

  	
   

  	
   

  	
   

  	
   

  
	
  SUNTRUST BANK,

  	
   

  	
   

  	
   

  	
   

  
	
  as Administrative Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ John E. Hehir

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  John E. Hehir

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

[SIGNATURE PAGE TO
AMENDED AND RESTATED BORROWER PLEDGE AGREEMENT]Exhibit
10.4

EXECUTION
COPY

AMENDED
AND RESTATED SECURITY AGREEMENT 

THIS AMENDED AND RESTATED SECURITY AGREEMENT (this
“Agreement”), dated as of May 31, 2007, among AAI CORPORATION, a
Maryland corporation (“AAI”), UNITED INDUSTRIAL CORPORATION, a Delaware
corporation (“UIC”, and together with AAI, collectively, the “Borrowers”,
and individually, a “Borrower”), the Subsidiaries of the Borrowers
signatory hereto and each other subsidiary of a Borrower hereafter a party
hereto (the Borrowers, each Subsidiary of the Borrowers a party hereto and each
other Subsidiary of a Borrower hereafter becoming a party hereto shall be
collectively known as the “Grantors”, and individually as a “Grantor”),
in favor of SUNTRUST BANK, a Georgia banking corporation, as the Administrative
Agent (the “Administrative Agent”), on its behalf and on behalf of the
other banks and lending institutions (the “Lenders”) from time to time
party to the Amended and Restated Revolving Credit Agreement, dated as of the
date hereof, by and among the Borrowers, the Administrative Agent, the Lenders,
and SunTrust Bank, as Issuing Bank and as Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Amended
and Restated Credit Agreement”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, pursuant to the Amended
and Restated Credit Agreement, the Lenders have agreed to establish a revolving
credit facility in favor of the Borrowers; and

WHEREAS, it is a condition
precedent to the obligations of the Administrative Agent, the Issuing Bank, the
Swingline Lender, and the Lenders under the Amended and Restated Credit
Agreement that the Grantors enter into this Agreement to (i) secure all
obligations of the Borrowers under the Amended and Restated Credit Agreement,
(ii) secure the obligations of each Subsidiary of the Borrowers under the
Amended and Restated Subsidiary Guaranty Agreement and all other Loan Documents
to which each such Subsidiary is a party, and (iii) secure all Hedging
Obligations owed to the Administrative Agent, any Lender or any of their
affiliates to the extent expressly permitted by the Amended and Restated Credit
Agreement, and the Grantors desire to satisfy such condition precedent.

NOW, THEREFORE, in consideration
of the premises and mutual covenants herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

Section 1.01.  Definitions.  Capitalized terms defined in the Amended and
Restated Credit Agreement and not otherwise defined herein, when used in this
Agreement shall have the respective meanings provided for in the Amended and
Restated Credit Agreement.  The following
additional terms, when used in this Agreement, shall have the following
meanings:

“Account
Debtor” shall mean any person or entity that is obligated under an Account.

“Accounts”
shall mean all “accounts” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights,
and, in any event, shall mean and include, without limitation, (a) all
accounts receivable, contract rights, book debts, notes, drafts and other
obligations or indebtedness owing to any Grantor arising from the sale or lease
of goods or other property by any Grantor or the performance of services by any
Grantor (including, without limitation, any such obligation which might be
characterized as an account, contract right or general intangible under the UCC
in effect in any jurisdiction), (b) all of each Grantor’s rights in, to
and under all purchase and sales orders for goods, services or other property,
and all of each Grantor’s rights to any goods, services or other property
represented by any of the foregoing (including returned or repossessed goods
and unpaid sellers’ rights of rescission, replevin, reclamation and rights to
stoppage in transit), (c) all monies due to or to become due to any
Grantor under all contracts for the sale, lease or exchange of goods or other
property or the performance of services by any Grantor (whether or not yet
earned by performance on the part of such Grantor), and (d) all collateral
security and guarantees of any kind given to any Grantor with respect to any of
the foregoing.

“Chattel
Paper” shall mean all “chattel paper” (as defined in the UCC) owned or
acquired by any Grantor or in which any Grantor has or acquires any rights.

“Collateral”
shall mean, collectively, all of the following:

(i)                                                        all
Accounts;

(ii)                                                     all
Chattel Paper;

(iii)                                                  all
Deposit Accounts (other than payroll accounts);

(iv)                                                 all
Documents;

(v)                                                    all
Equipment;

(vi)                                                 all
Fixtures;

(vii)                                              all
General Intangibles;

(viii)                                           all
Instruments;

(ix)                                                   all
Inventory;

(x)                                                      all
Investment Property;

(xi)                                                   all
money, cash or cash equivalents;

(xii)                                                all
other goods and personal property, whether tangible or intangible;

 2
 

(xiii)                                             all
Supporting Obligations and Letter-of-Credit Rights of any Grantor;

(xiv)                                            all
books and records pertaining to any of the Collateral (including, without
limitation, credit files, Software, computer programs, printouts and other
computer materials and records but excluding customer lists); and

(xv)                                               All
products and Proceeds of all or any of the Collateral described in clauses (i)
through (xiv) hereof.

provided, however, that
notwithstanding any of the other provisions set forth in this Agreement,
Collateral shall not include any property to the extent that a grant of a
security interest is prohibited by any requirements of law of a governmental
authority,  except to the extent that
such prohibition is ineffective under applicable law (including by means of
Sections 9-407, 9-408 or 9-409 of the UCC).

“Copyright
License” shall mean any and all rights of any Grantor under any written
agreement granting any right to use any Copyright or Copyright registration.

“Copyrights”
shall mean all of the following now owned or hereafter acquired by any Grantor
or in which any Grantor now has or hereafter acquires any rights: (a) all
copyrights and general intangibles of like nature (whether registered or
unregistered), all registrations and recordings thereof, and all applications
in connection therewith, including all registrations, recordings and
applications in the United States Copyright Office or in any similar office or
agency of the United States, any state or territory thereof, or any other
country or any political subdivision thereof, and (b) all reissues, extensions
or renewals thereof.

“Deposit
Accounts” shall mean all “deposit accounts” (as defined in the UCC) now
owned or hereafter acquired by any Grantor or in which any Grantor has or
acquires any rights, or other receipts, of any Grantor covering, evidencing or
representing rights or interest in such deposit accounts.

“Documents”
shall mean all “documents” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights, or
other receipts, of any Grantor covering, evidencing or representing goods.

“Equipment”
shall mean all “equipment” (as defined in the UCC) now owned or hereafter
acquired by any Grantor and wherever located, and, in any event, shall include
without limitation all machinery, furniture, furnishings, processing equipment,
conveyors, machine tools, engineering processing equipment, manufacturing
equipment, materials handling equipment, trade fixtures, trucks, trailers,
forklifts, vehicles, computers and other electronic data processing and other
office equipment of any Grantor, and any and all additions, substitutions and
replacements of any of the foregoing, together with all attachments,
components, parts, equipment and accessories installed thereon or affixed
thereto, all fuel therefore and all manuals, drawings, instructions, warranties
and rights with respect thereto.

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“Event
of Default” shall have the meaning set forth for such term in Section 7
hereof.

“General
Intangibles” shall mean all “general intangibles” (as defined in the UCC)
now owned or hereafter acquired by any Grantor or in which any Grantor has or
acquires any rights and, in any event, shall include all right, title and
interest in or under all contracts, all customer lists, Licenses, Copyrights,
Trademarks, Patents, and all applications therefor and reissues, extensions or
renewals thereof, rights in Intellectual Property, interests in partnerships,
joint ventures and other business associations, licenses, permits, copyrights,
trade secrets, proprietary or confidential information, inventions (whether or
not patented or patentable), technical information, procedures, designs,
knowledge, know-how, software, data bases, data, skill, expertise,
experience, processes, models, drawings, materials and records, goodwill
(including the goodwill associated with any Trademark or Trademark License),
all rights and claims in or under insurance policies (including insurance for
fire, damage, loss and casualty, whether covering personal property, real
property, tangible rights or intangible rights, all liability, life, key man
and business interruption insurance, and all unearned premiums), uncertificated
securities, choses in action, deposit, checking and other bank accounts, rights
to receive tax refunds and other payments, rights of indemnification, all books
and records, correspondence, credit files, invoices, tapes, cards, computer
runs, domain names, prospect lists, customer lists and other papers and documents.

“Instruments”
shall mean all “instruments” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights and,
in any event, shall include all promissory notes, all certificates of deposit
and all letters of credit evidencing, representing, arising from or existing in
respect of, relating to, securing or otherwise supporting the payment of, any
of the Accounts or other obligations owed to any Grantor.

“Intellectual
Property” shall mean all of the following now owned or hereafter acquired
by any Grantor or in which any Grantor has or acquires any rights: (a) all
Patents, patent rights and patent applications, Copyrights and copyright
applications, Trademarks, trademark rights, trade names, trade name rights,
service marks, service mark rights, applications for registration of
trademarks, trade names and service marks, fictitious names registrations and
trademark, trade name and service mark registrations, and all derivations
thereof; and (b) Patent Licenses, Trademark Licenses, Copyright Licenses and
other licenses to use any of the items described in the preceding clause (a),
and any other items necessary to conduct or operate the business of each
Grantor.

“Inventory”
shall mean all “inventory” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights and,
in any event, shall include all goods owned or held for sale or lease to any
other Persons.

“Investment
Property” shall mean all “investment property” (as defined in the UCC) now
owned or hereafter acquired by any Grantor or in which any Grantor has or
acquires any rights and, in any event, shall include all “certificated
securities”, “uncertificated securities”, “security entitlements”, “securities
accounts”, “commodity contracts” and “commodity accounts” (as all such terms
are defined in the UCC) of each Grantor;

 4
 

“Letter-of-Credit
Rights” shall mean “letter-of-credit rights” (as defined in the UCC), now
owned or hereafter acquired by any Grantor, including rights to payment or
performance under a letter of credit, whether or not any Grantor, as
beneficiary, has demanded or is entitled to demand payment or performance.

“License”
shall mean any Copyright License, Patent License, Trademark License or other
license of rights or interests of each Grantor in Intellectual Property.

“Patent
License” shall mean any written agreement now owned or hereafter acquired
by any Grantor or in which any Grantor has or acquires any rights granting any
right with respect to any property, process or other invention on which a
Patent is in existence.

“Patents”
shall mean all of the following now owned or hereafter acquired by any Grantor
or in which any Grantor has or acquires any rights: (a) all letters patent of
the United States or any other country, all registrations and recordings
thereof, and all applications for letters patent of the United States or any
other country, including registrations, recordings and applications in the
United States Patent and Trademark Office or in any similar office or agency of
the United States, any State or Territory thereof, or any other country; and
(b) all reissues, continuations, continuations-in-part and
extensions thereof.

“Proceeds”
shall mean all “proceeds” (as defined in the UCC) of, and all other profits,
rentals or receipts, in whatever form, arising from the collection, sale,
lease, exchange, assignment, licensing or other disposition of, or realization
upon, the Collateral, and, in any event, shall mean and include all claims
against third parties for loss of, damage to or destruction of, or for proceeds
payable under, or unearned premiums with respect to, policies of insurance in
respect of any Collateral, and any condemnation or requisition payments with
respect to any Collateral and the following types of property acquired with
cash proceeds:  Accounts, Inventory,
General Intangibles, Documents, Instruments and Equipment.

“Secured
Obligations” shall mean (i) all Obligations of the Borrowers under the
Amended and Restated Credit Agreement and the other Loan Documents (whether for
principal, interest, fees, expenses, indemnity or reimbursement payments, or
otherwise as provided therein), (ii) all obligations of the Borrowers, monetary
or otherwise, pursuant to any Hedging Transaction incurred to limit interest
rate or fee fluctuation with respect to the Loans and Letters of Credit entered
into with a Specified Hedge Provider, (iii) all obligations of each other
Grantor under the Subsidiary Guaranty Agreement or the Parent Guaranty
Agreement, as applicable, and all other Loan Documents to which such other
Grantor is a party to (whether for principal, interest, fees, expenses,
indemnity or reimbursement payments, or otherwise), (iv) all renewals,
extensions, refinancings and modifications thereof, and (v) all reasonable
costs and expenses incurred by the Administrative Agent in connection with the
exercise of its rights and remedies hereunder (including reasonable attorneys’
fees).  Where the context requires, any
affiliate of a Lender which is party to a Hedging Transaction entered into to
limit interest rate or fee fluctuations with respect to the Loans and Letters
of Credit shall be deemed to be a “Lender” for purposes of this Agreement and
such affiliate shall only be required to be an affiliate of a Lender at the
time the relevant Hedging Transaction is entered into in order for such Hedging
Transaction to be eligible to be designated as a “Secured Obligation”.

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“Secured Parties”
shall mean, collectively, the Administrative Agent, the Lenders and the
Specified Hedge Providers.

“Security
Interests” shall mean the security interests granted to the Administrative
Agent on its behalf and on behalf of the Secured Parties pursuant to Section
3, as well as all other security interests created or assigned as
additional security for the Secured Obligations pursuant to the provisions of
this Agreement.

“Software”
shall mean all “software” (as defined in the UCC), now owned or hereafter
acquired by any Grantor, including all computer programs and all supporting
information provided in connection with a transaction related to any program.

“Specified
Hedge Provider” shall mean each party to a Hedging Transaction entered into
to limit interest rate or fee fluctuations with respect to the Loans and
Letters of Credit if at the date of entering into such Hedging Transaction such
person was a Lender or an Affiliate of a Lender and such person executes and
delivers to the Administrative Agent a letter agreement in form and substance
acceptable to the Administrative Agent pursuant to which such person (i)
appoints the Administrative Agent as its agent under the applicable Loan
Documents and (ii) agrees to be bound by the provisions of Article IX and X of
the Amended and Restated Credit Agreement.

“Supporting
Obligations” means all “supporting obligations” (as defined in the UCC),
including letters of credit and guaranties issued in support of Accounts,
Chattel Paper, Documents, General Intangibles, Instruments, or Investment
Property.

“Trademark
License” shall mean any written agreement now owned or hereafter acquired
by any Grantor or in which any Grantor has or acquires any such rights granting
to any Grantor any right to use any Trademark.

“Trademarks”
shall mean all of the following now owned or hereafter acquired by any Grantor
or in which any Grantor has or acquires any such rights: (i) all trademarks,
trade names, corporate names, company names, business names, fictitious
business names, trade styles, service marks, logos, other source or business
identifiers, prints and labels on which any of the foregoing have appeared or
appear, designs and general intangibles of like nature (whether registered or
unregistered), now owned or existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, registrations, recordings and
applications 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, (ii) all reissues, extensions or renewals
thereof and (iii) all goodwill associated with or symbolized by any of the
foregoing.

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“UCC”
shall mean the Uniform Commercial Code as in effect, from time to time, in the
State of New York; provided that if by reason of mandatory provisions of
law, the perfection or the effect of perfection or non-perfection of the
Security Interests in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than New York, “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such perfection or effect of perfection or
non-perfection.

“United
States” or “U.S.” shall mean the United States of America, any of
the fifty states thereof, and the District of Columbia.

SECTION
2.   Representations and
Warranties.  Each Grantor
represents and warrants to the Administrative Agent, for the benefit of Secured
Parties, as follows:

(a)           Such Grantor has
rights in and the power to transfer each item of the Collateral upon which it
purports to grant a Lien hereunder and has good and marketable title to all of
its Collateral, free and clear of any Liens other than Liens expressly
permitted under Section 7.2 of the Amended and Restated Credit Agreement.

(b)           Other than financing
statements, security agreements, or other similar or equivalent documents or
instruments with respect to Liens expressly permitted under Section 7.2 of the
Amended and Restated Credit Agreement or as set forth in the Perfection
Certificate, no financing statement, mortgage, security agreement or similar or
equivalent document or instrument evidencing a Lien on all or any part of the
Collateral is on file or of record in any jurisdiction.  None of the Collateral is in the possession
of a Person (other than any Grantor) asserting any claim thereto or security
interest therein, except that the Administrative Agent or its designee may have
possession of Collateral as contemplated hereby.

(c)            When UCC financing
statements in appropriate form are filed in the offices specified on Schedule
I attached hereto, the Security Interests shall constitute valid and
perfected security interests in the Collateral, prior to all other Liens and
rights of others therein except for the Liens expressly permitted under Section
7.2 of the Amended and Restated Credit Agreement or as set forth in the
Perfection Certificate, to the extent that a security interest therein may be
perfected by filing pursuant to the UCC, assuming the proper filing and
indexing thereof.

(d)           All Inventory and
Equipment is insured in accordance with the requirements of the Amended and
Restated Credit Agreement.

(e)           None of the
Collateral constitutes, or is the Proceeds of, “farm products” (as defined in
the UCC).

(f)            Schedule II
correctly sets forth each Grantor’s state of incorporation, taxpayer
identification number, organizational identification number and correct legal
name indicated on the public record of such Grantor’s jurisdiction of
organization which shows such Grantor to be organized.

 7
 

(g)           The Perfection
Certificate, which is attached hereto as Schedule III,  correctly sets forth (i) all names and
tradenames that each Grantor has used within the last five years and the names
of all Persons that have merged into or been acquired by each Grantor, (ii) the
chief executive offices of each Grantor over the last five years, (iii) all
other locations in which tangible assets of each Grantor have been located in
the last five years, (iv) the name of each bank at which each Grantor maintains
Deposit Accounts, the state of organization of each such bank, and the account
numbers for each Deposit Account, (v) all letters of credit under which each Grantor
is a beneficiary, (vi) all third parties with possession of any Inventory or
Equipment of each Grantor and (vii) each Grantor’s mailing address.

(h)           With respect to the
Accounts, except as specifically disclosed to the Administrative Agent from
time to time or which would not reasonably be likely to result in a Material
Adverse Effect, (i) they represent bona fide sales of Inventory or rendering of
services to Account Debtors in the ordinary course of such Grantor’s business
and are not evidenced by a judgment, Instrument or Chattel Paper; (ii) there
are no setoffs, claims or disputes existing or asserted with respect thereto
except as have arisin in the ordinary course of business and such Grantor has
not made any agreement with any Account Debtor for any extension of time for
the payment thereof, any compromise or settlement for less than the full amount
thereof, any release of any Account Debtor from liability therefor, or any
deduction therefrom except a discount or allowance allowed by such Grantor in
the ordinary course of its business for prompt payment; (iii) to such Grantor’s
knowledge, there are no facts, events or occurrences which in any way impair
the validity or enforceability thereof or could reasonably be expected to
reduce the amount payable thereunder as shown on such Grantor’s books and
records and any invoices, statements and other reports delivered to the
Administrative Agent with respect thereto; (iv) such Grantor has not received
any notice of proceedings or actions which are threatened or pending against
any Account Debtor which might result in any adverse change in such Account
Debtor’s financial condition; and (v) such Grantor has no knowledge that any
Account Debtor is unable generally to pay its debts as they become due.  Further with respect to the Accounts (i) the
amounts shown on such records and all invoices, statements and collateral
reports which may be delivered to the Administrative Agent with respect thereto
are actually and absolutely owing to such Grantor as indicated thereon and are
not in any way contingent; and (ii) to such Grantor’s knowledge, all Account
Debtors have the capacity to contract.

(i)            With respect to any
material Inventory, (i) such Inventory is located at one of the Grantor’s
locations set forth on the Perfection Certificate, (ii) no Inventory is now, or
shall at any time or times hereafter be stored at any other location without
the Administrative Agent’s reasonable prior consent, and if the Administrative
Agent gives such consent, such Grantor will concurrently therewith obtain, to
the extent required by the Amended and Restated Credit Agreement, bailee,
landlord and mortgagee agreements, (iii) such Grantor has good, indefeasible
and merchantable title to such Inventory and such Inventory is not subject to
any Lien or security interest or document whatsoever except for the Lien
granted to the Administrative Agent and except for Liens expressly permitted
under Section 7.2 of the Amended and Restated Credit Agreement or as set forth
in the Perfection Certificate, (iv) except as specifically disclosed to the
Administrative Agent, such Inventory is of good and merchantable quality, free
from any defects in all material respects, (v) such Inventory is not subject to
any licensing, patent, royalty, trademark, trade name or copyright agreements
with any third parties which would require any 

 8
 

consent of any third party upon sale or disposition of
that Inventory or the payment of any monies to any third party upon such sale
or other disposition, and (vi) to the Grantors’ knowledge, the completion of
manufacture, sale or other disposition of such Inventory by the Administrative
Agent following an Event of Default shall not require the consent of any Person
and shall not constitute a breach or default under any contract or agreement to
which such Grantor is a party or to which such property is subject.

(j)            Such Grantor does
not have any interest in, or title to, any Patent, Trademark or Copyright
except as set forth in the Perfection Certificate.  This Security Agreement is effective to
create a valid and continuing Lien on and, upon filing of the Copyright
Security Agreements with the United States Copyright Office and filing of the
Patent Security Agreements and the Trademark Security Agreements with the
United State Patent and Trademark Office, perfected security interests in favor
of the Administrative Agent in such Grantor’s Patents, Trademarks and
Copyrights and such perfected security interests are enforceable as such as
against any and all creditors of and purchasers from such Grantor.  Upon filing of the Copyright Security
Agreements with the United States Copyright Office and filing of the Patent
Security Agreements and the Trademark Security Agreements with the United States
Patent and Trademark Office and the filing of appropriate financing statements
listed on Schedule I hereto, all action necessary or desirable to
protect and perfect the Administrative Agent’s Lien on such Grantor’s Patents,
Trademarks or Copyrights shall have been duly taken.

SECTION
3.   The Security Interests.  In order to secure the full and punctual
payment and performance of the Secured Obligations in accordance with the terms
thereof, each Grantor hereby pledges, assigns, hypothecates, sets over and
conveys to the Administrative Agent on its behalf and on behalf of the Secured
Parties and grants to the Administrative Agent on its behalf and on behalf of
the Secured Parties a continuing security interest in and to, all of its rights
in and to all Collateral now or hereafter owned or acquired by such Grantor or
in which such Grantor now has or hereafter has or acquires any rights, and
wherever located.  The Security Interests
are granted as security only and shall not subject the Administrative Agent or
any other Secured Party to, or transfer to the Administrative Agent or any
other Secured Party, or in any way affect or modify, any obligation or
liability of the Grantor with respect to any Collateral or any transaction in
connection therewith.

SECTION 4. Further Assurances; Covenants.

(a)           General.

(i)            No
Grantor shall change the location of its chief executive office or principal
place of business unless it shall have given the Administrative Agent thirty
(30) days prior notice thereof, as well as executed and delivered to the
Administrative Agent all financing statements and financing statement
amendments which the Administrative Agent may reasonably request in connection
therewith.  No Grantor shall change the
locations, or establish new locations, where it keeps or holds any of the Collateral
or any records relating thereto from the applicable locations described in the
Perfection Certificate attached hereto as Schedule III unless such
Grantor shall have given the Administrative Agent thirty (30) days prior notice
of such change of location. The foregoing covenant shall not apply to any
Collateral (including trucks) perfected by recordation of the Administrative
Agent’s Lien on the appropriate certificate of title.

 9
 

(ii)           No
Grantor shall change its name, organizational identification number, identity,
jurisdiction of organization, or corporate structure in any manner unless it
shall have given the Administrative Agent thirty (30) days prior written notice
thereof, and executed and delivered to the Administrative Agent all financing
statements and financing statement amendments which the Administrative Agent
may reasonably request in connection therewith. 
No Grantor shall merge or consolidate into, or transfer any of the
Collateral to, any other Person other than another Grantor, without the prior
written consent of the Required Lenders.

(iii)          Each
Grantor hereby authorizes the Administrative Agent, its counsel or its
representative, at any time and from time to time, to file financing statements
and amendments that describe the collateral covered by such financing
statements as “all assets of the Grantor”, “all personal property of the
Grantor” or words of similar effect including the express exceptions set forth
herein, in such jurisdictions as the Administrative Agent may deem necessary or
desirable in order to perfect the security interests granted by such Grantor
under this Agreement.  Each Grantor will,
from time to time, at its expense, execute, deliver, file and record any
statement, assignment, instrument, document, agreement or other paper and take
any other action (including, without limitation, any filings with the United
States Patent and Trademark Office, Copyright or Patent filings and any filings
of financing or continuation statements under the UCC) that from time to time
may be necessary, or that the Administrative Agent may reasonably request, in
order to create, preserve, upgrade in rank (to the extent required hereby),
perfect, confirm or validate the Security Interests or to enable the
Administrative Agent to obtain the full benefits of this Agreement, or to
enable the Administrative Agent to exercise and enforce any of its rights,
powers and remedies hereunder with respect to any of its Collateral.  Each Grantor hereby authorizes the
Administrative Agent to execute and file financing statements, financing
statement amendments or continuation statements on behalf of such Grantor in
connection with this Agreement.  Each
Grantor agrees that a carbon, photographic, photostatic or other reproduction
of this Agreement or of a financing statement is sufficient as a financing
statement.  Grantors shall pay the
reasonable costs of, or incidental to, any recording or filing of any financing
statements, financing statement amendments or continuation statements necessary
in the sole reasonable discretion of the Administrative Agent, to perfect the
Administrative Agent and Secured Parties’ security interest in the Collateral.

 10
 

(iv)          Except
as set forth in the Perfection Certificate attached hereto as Schedule III,
no Grantor shall permit any of its tangible assets, including without
limitation, its Inventory and Equipment, to be in the possession of any other
Person unless pursuant to an agreement in form and substance reasonably
satisfactory to the Administrative Agent (A) such Person has acknowledged that
(1) it holds possession of such Inventory, Equipment and other tangible assets,
as the case may be, for the Administrative Agent’s benefit, subject to the
Administrative Agent’s instructions, and (2) such Person does not have a Lien
in such Inventory, Equipment or other tangible assets, (B) such Person agrees
not to hold such Inventory, Equipment or other tangible assets on behalf of any
other Person and (C) such Person agrees that, after the occurrence and during
the continuance of an Event of Default and upon request by the Administrative
Agent to issue and deliver to the Administrative Agent warehouse receipts,
bills of lading or any similar documents relating to such Collateral in the
Administrative Agent’s name and in form and substance reasonably acceptable to
the Administrative Agent.

(v)           No
Grantor shall (A) sell, transfer, lease, exchange, assign or otherwise dispose
of, or grant any option, warrant or other right with respect to, any of its
Collateral other than as permitted under Section 7.6 of the Amended and
Restated Credit Agreement; or (B) create, incur or suffer to exist any Lien
with respect to any Collateral, except for the Liens expressly permitted under
Section 7.2 of the Amended and Restated Credit Agreement.

(vi)          Each
Grantor will, promptly upon request, provide to the Administrative Agent all
information and evidence it may reasonably request concerning the Collateral,
to enable the Administrative Agent to enforce the provisions of this Agreement.

(vii) Each
Grantor shall take all commercially reasonable actions necessary or reasonably
requested by the Administrative Agent in order to maintain the perfected status
of the Security Interests.

(viii)        Except
as otherwise provided in Section 14 herein, no Grantor shall file any
amendment to or termination of a financing statement naming any Grantor as
debtor and the Administrative Agent as secured party, or any correction
statement with respect thereto, in any jurisdiction until such time as the
Secured Obligations have been satisfied (other than indemnities and other
similar contingent obligations surviving the termination of this Agreement for
which no claim has been made and which are unknown and not calculable at the
time of termination and those Obligations relating to the Hedging Obligations) and the Administrative Agent and the
Secured Parties have authorized such filing.

(ix)           Each
Grantor shall take all steps reasonably necessary to grant the Administrative
Agent control of all electronic chattel paper in accordance with the UCC and
all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce
Act.

 11

(b)           Accounts, Etc.

(i)            Each
Grantor shall use all commercially reasonable efforts consistent with prudent
business practice to cause to be collected from its Account Debtors, as and
when due, any and all amounts owing under or on account of each Account (including,
without limitation, Accounts which are delinquent, such Accounts to be
collected in accordance with lawful collection procedures) and apply forthwith
upon receipt thereof all such amounts as are so collected to the outstanding
balance of such Account.  The costs and
expenses (including, without limitation, reasonable attorneys’ fees actually
incurred) of collection of Accounts incurred by such Grantor or the
Administrative Agent (in the case of the Administrative Agent, during the
continuance of an Event of Default) shall be borne by the Grantors.

(ii)           Upon
the occurrence and during the continuance of any Event of Default, upon request
of the Administrative Agent, each Grantor will promptly notify (and each
Grantor hereby authorizes the Administrative Agent so to notify) each Account
Debtor in respect of any Account or Instrument that such Collateral has been
assigned to the Administrative Agent hereunder, and that any payments due or to
become due in respect of such Collateral are to be made directly to the
Administrative Agent or its designee.

(iii)          Each
Grantor will perform and comply in all material respects with all of its
obligations in respect of Accounts, Instruments and General Intangibles.

(c)           Equipment,
Etc.  Each Grantor shall, (i) within
ten (10) days after a written request by the Administrative Agent, in the case
of material Equipment now owned, and (ii) following a request by the
Administrative Agent pursuant to subclause (i) above, within ten (10) days
after acquiring any other material Equipment, deliver to the Administrative
Agent, any and all certificates of title, and applications therefor, if any, of
such Equipment and shall cause the Administrative Agent to be named as
lienholder on any such certificate of title and applications.  No Grantor shall permit any such items to
become a fixture to real estate or an accession to other personal property
unless such real estate or personal property is the subject of a fixture filing
(as defined in the UCC) creating a first priority perfected Lien in favor of
the Administrative Agent.

(d)           Patents,
Trademarks, Etc.  Each Grantor shall
notify the Administrative Agent promptly upon the occurrence of each of the
following (i) such Grantor’s  acquisition
after the date of this Agreement of any material Intellectual Property and (ii)
such Grantor’s obtaining knowledge, that any application or registration
relating to any material Intellectual Property owned by or licensed to such
Grantor is reasonably likely to become abandoned or dedicated, or of any
material adverse determination or development (including, without limitation,
the institution of, or any such determination or development in, any proceeding
in the United States Copyright Office, the United States Patent and Trademark
Office or any court) regarding such Grantor’s ownership of any material
Intellectual Property, its right to register the same, or to keep and maintain
the same.

 12
 

(e)           Deposit
Accounts, Chattel Paper, Investment Property and Letters of Credit.

(i)            No
Grantor shall open or maintain any Deposit Accounts other than those listed on
the Perfection Certificate attached hereto as Schedule III and such
other Deposit Accounts as such Grantor shall open and maintain prior notice to
and if required under the Amended and Restated Credit Agreement, subject to
control agreements, in form and substance reasonably acceptable to the
Administrative Agent.

(ii)           No
Grantor shall become the beneficiary of any Letters of Credit, unless the
issuer of the Letter of Credit has consented to the assignment of the proceeds
of such Letter of Credit to the Administrative Agent which consent shall not be
unreasonably withheld, such assignment to be in form and substance reasonably
acceptable to the Administrative Agent.

(iii)          Each
Grantor, at any time and from time to time, will (a) take such steps as the
Administrative Agent may reasonably request from time to time for the
Administrative Agent to obtain “control” of any Investment Property or
electronic Chattel Paper, with any agreements establishing control to be in
form and substance reasonably satisfactory to the Administrative Agent, and (b)
otherwise to insure the continued perfection and priority of the Administrative
Agent’s security interest in any of the Collateral and of the preservation of its
rights therein.

(f)            Commercial
Tort Claims.  If any Grantor shall at
any time acquire a “commercial tort claim” (as such term is defined in the UCC)
with a claim for damages that could reasonably be expected to be in excess of
$100,000, such Grantor shall promptly notify the Administrative Agent thereof
in a writing, providing a reasonable description and summary thereof, and shall
execute a supplement to this Agreement granting a security interest in such
commercial tort claim to the Administrative Agent.

SECTION
5.  Reporting and Recordkeeping.  Each Grantor covenants and agrees with the
Administrative Agent that from and after the date of this Agreement and until
the Secured Obligations have been indefeasibly paid in full in cash (other than
indemnities and other similar contingent obligations surviving the termination
of this Agreement for which no claim has been made and which are unknown and
not calculable at the time of termination and those Obligations relating to the
Hedging Obligations):

(a)           Maintenance of Records Generally.  Each Grantor will keep and maintain at its
own cost and expense records of its Collateral, complete in all material
respects, including, without limitation, a record of all payments received and
all credits granted with respect to the Collateral and all other dealings with
its Collateral.  Each Grantor will mark
its books and records pertaining to its Collateral to evidence this Agreement
and the Security Interests.  All Chattel
Paper will be marked with the following legend:  “This writing and the obligations 

 13
 

evidenced or secured hereby are subject to the
security interest of SunTrust Bank, as Administrative Agent.”  For the Administrative Agent’s further
security, each Grantor agrees that the Administrative Agent shall have a
security interest in all of such Grantor’s books and records pertaining to its
Collateral and, upon the occurrence and during the continuation of any Event of
Default, such Grantor shall deliver and turn over full and complete copies of
any such books and records to the Administrative Agent or to its
representatives at any time on demand of the Administrative Agent.  Upon reasonable notice from the
Administrative Agent, each Grantor shall permit any representative of the
Administrative Agent, to inspect such books and records and will provide
photocopies thereof to the Administrative Agent subject to the limitations as
provided in the Amended and Restated Credit Agreement.

(b)           Special Provisions Regarding
Maintenance of Records and Reporting Re: Accounts, Inventory and Equipment;

(i)            Each
Grantor shall keep complete and accurate records of its Accounts in all
material respects.  Upon the reasonable
request of the Administrative Agent, and prior to an Event of Default no more
frequently than one time per calendar quarter, such Grantor shall deliver to
the Administrative Agent all documents, including, without limitation,
repayment histories and present status reports, relating to its Accounts so
scheduled and such other matters and information relating to the status of its
then existing Accounts as the Administrative Agent shall reasonably request.

(ii)           In
the event any amounts due and owing in excess of $250,000 in the aggregate are
in dispute between any Account Debtor and any Grantor, such Grantor shall provide
the Administrative Agent with written notice thereof promptly after such
Grantor’s learning thereof explaining in detail the reason for the dispute, all
claims related thereto and the amount in controversy.

(iii)          Each
Grantor shall maintain itemized records, accurate in all material respects,
itemizing and describing  the kind, type,
quality, quantity, location and book value of its Inventory and Equipment and
shall, upon reasonable request by the Administrative Agent, furnish the
Administrative Agent with a current schedule containing the foregoing
information.

(iv)          Each
Grantor will promptly upon, but in no event later than twenty (20) Business
Days after:

(A)    Such Grantor’s learning thereof, inform the
Administrative Agent, in writing, of any material delay in such Grantor’s
performance of any of its obligations to any Account Debtor and of any
assertion of any claims, offsets or counterclaims by any Account Debtor and of
any allowances, credits or other monies granted by such Grantor to any Account
Debtor, in each case involving amounts in excess of $250,000 in the aggregate
for all Accounts of such Account Debtor; and

 14
 

(B)    Such Grantor’s receipt or learning thereof,
furnish to and inform the Administrative Agent of all material adverse
information relating to the financial condition of any Account Debtor with
respect to Accounts exceeding $250,000 in the aggregate; and

(v)           Such
Grantor will promptly notify the Administrative Agent in writing if any
Account, the face value of which exceeds $250,000, arises out of a contract
with the United States of America, or any department, agency, subdivision or
instrumentality thereof, or of any state (or department, agency, subdivision or
instrumentality thereof) where such state has a state assignment of claims act
or other law comparable to the Federal Assignment of Claims Act, and will take
any action required or reasonably requested by the Administrative Agent to give
notice of the Administrative Agent’s security interest in such Accounts under
the provisions of the Federal Assignment of Claims Act or any comparable law or
act enacted by any state or local governmental authority; and

(vi)          Such
Grantor at its expense will cause independent public accountants from KPMG or
any nationally recognized firm or reasonably satisfactory to the Administrative
Agent to prepare and deliver to the Administrative Agent at any time and from
time to time promptly upon the Administrative Agent’s request made when any
Event of Default exists, the following reports: (A) a reconciliation of
all of its Accounts, (B) an aging of all of its Accounts, (C) trial
balances, and (D) a test verification of such Accounts.

(c)           Further Identification of
Collateral.  Each Grantor will if so
requested by the Administrative Agent furnish to the Administrative Agent, as
often as the Administrative Agent reasonably requests but in no event more
frequently than once per calendar quarter, statements and schedules further
identifying and describing the Collateral and such other reports in connection
with the Collateral as the Administrative Agent may reasonably request, all in
reasonable detail.

(d)           Notices.  In addition to the notices required by Section
5(b) hereof, each Grantor will advise the Administrative Agent promptly,
but in no event later than thirty (30) days after the occurrence thereof, in
reasonable detail, (i) of any Lien or claim made or asserted against any
of the Collateral that is not expressly permitted by the terms of the Amended
and Restated Credit Agreement, and (ii) of the occurrence of any other event
which would have a material ad­verse effect on the aggregate value of the
Collateral or on the validity, perfection or priority of the Security
Interests.

SECTION
6.  General Authority.  Each Grantor hereby irrevocably appoints the
Administrative Agent its true and lawful attorney, with full power of
substitution, in the name of such Grantor, the Administrative Agent or
otherwise, for the sole use and benefit of the Administrative Agent on its
behalf and on behalf of the Secured Parties, but at such Grantor’s expense, to
exercise, at any time (subject to the proviso below) all or any of the
following powers:

 15
 

(i)            to
file the financing statements, financing statement amendments and continuation
statements referred to in Section 4(a)(iii),

(ii)           to
demand, sue for, collect, receive and give acquittance for any and all monies
due or to become due with respect to any Collateral or by virtue thereof,

(iii)          to
settle, compromise, compound, prosecute or defend any action or proceeding with
respect to any Collateral,

(iv)          to
sell, transfer, assign or otherwise deal in or with the Collateral or the
proceeds or avails thereof, as fully and effectually as if the Administrative
Agent were the absolute owner thereof, and

(v)           to
extend the time of payment of any or all thereof and to make any allowance and
other adjustments with reference to the Collateral.

provided,
however, that the powers described in clauses (ii), (iii), (iv) and (v)
above may be exercised by the Administrative Agent only if an Event of Default
then exists.

SECTION
7.  Events of Default.  Each of the following specified events shall
constitute an Event of Default under this Agreement:

(a)           The existence or occurrence of any “Event
of Default” as provided under the terms of the Amended and Restated  Credit Agreement;

(b)           Any representation or warranty made
by or on behalf of any Grantor under or pursuant to this Agreement shall have
been false or misleading in any material respect when made; or

(c)           Any Grantor shall fail to observe or
perform any covenant or agreement set forth in this Agreement other than those
referenced in paragraphs (a) and (b) above, and if such failure is capable of
being remedied, such failure shall remain unremedied for thirty (30) days.

SECTION
8.  Remedies upon Event of
Default.

(a)            If any Event of Default has occurred
and is continuing, the Administrative Agent may, without further notice,
exercise all rights and remedies under this Agreement or any other Loan
Document or that are available to a secured creditor under the UCC or that are
otherwise available at law or in equity, at any time, in any order and in any
combination, including to collect any and all Secured Obligations from the
Grantors, and, in addition, the Administrative Agent may sell the Collateral or
any part thereof at public or private sale, for cash, upon credit or for future
delivery, and at such price or prices as the Administrative Agent may deem
satisfactory.  The Administrative Agent
shall give the Borrowers not less than ten days’ prior written notice of the
time and place of any sale or other intended disposition of Collateral, except
any Collateral which is perishable or threatens to decline speedily in value or
is of a type customarily sold on a recognized market.  Each Grantor agrees that any such notice
constitutes “reasonable notification” within the meaning of Section 9-611
of the UCC (to the extent such Section or any successor provision under the UCC
is applicable).

 16
 

(b)           The Administrative Agent may be the
purchaser of any or all of the Collateral so sold at any public sale (or, if
such Collateral is of a type customarily sold in a recognized market or is of a
type which is the subject of widely distributed standard price quotations or if
otherwise permitted under applicable law, at any private sale) and thereafter
hold the same, absolutely, free from any right or claim of whatsoever
kind.  Each Grantor agrees during an
Event of Default to execute and deliver such documents and take such other
action as the Administrative Agent deems necessary or advisable in order that
any such sale may be made in compliance with law.  Upon any such sale the Administrative Agent
shall have the right to deliver, assign and transfer to the purchaser thereof the
Collateral so sold.  Each purchaser at
any such sale shall hold the Collateral so sold to it absolutely, free from any
claim or right of any kind, including any equity or right of redemption of the
Grantors.  To the extent permitted by
law, each Grantor hereby specifically waives all rights of redemption, stay or
appraisal which it has or may have under any law now existing or hereafter
adopted.  The notice (if any) of such
sale shall (1) in case of a public sale, state the time and place fixed for
such sale, and (2) in the case of a private sale, state the day after which
such sale may be consummated.  Any such
public sale shall be held at such time or times within ordinary business hours
and at such place or places as the Administrative Agent may fix in the notice
of such sale.  At any such sale
Collateral may be sold in one lot as an entirety or in separate parcels, as the
Administrative Agent may determine.  The
Administrative Agent shall not be obligated to make any such sale pursuant to
any such notice.  The Administrative
Agent may, without notice or publication, adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time
and place fixed for the sale, and such sale may be made at any time or place to
which the same may be so adjourned.  In
case of any sale of all or any part of the Collateral on credit or for future
delivery, such Collateral so sold may be retained by the Administrative Agent
until the selling price is paid by the purchaser thereof, but the
Administrative Agent shall not incur any liability in case of the failure of
such purchaser to take up and pay for such Collateral so sold and, in case of
any such failure, such Collateral may again be sold upon like notice.  The Administrative Agent, instead of
exercising the power of sale herein conferred upon it, may proceed by a suit or
suits at law or in equity to foreclose the Security Interests and sell
Collateral, or any portion thereof, under a judgment or decree of a court or
courts of competent jurisdiction.  The
Grantors shall remain liable for any deficiency.

(c)           For the purpose of enforcing any and
all rights and remedies under this Agreement, the Administrative Agent may (i)
require any Grantor to, and each Grantor agrees that it will, at the joint and
several expense of the Grantors, and upon the request of the Administrative
Agent, forthwith assemble all or any part of its Collateral as directed by the
Administrative Agent and make it available at a place designated by the
Administrative Agent which is, in the Administrative Agent’s opinion,
reasonably convenient to the Administrative Agent and such Grantor, whether at
the premises of such Grantor or otherwise, (ii) to the extent permitted by
applicable law, enter, with or without process of law and without breach of the
peace, any premise where any such Collateral is or may be located and, without
charge or liability to the Administrative Agent, seize and remove such
Collateral from such premises, 

 17
 

(iii) have access to and use such Grantor’s books and
records, computers and software relating to the Collateral, and (iv) prior
to the disposition of any of the Collateral, store or transfer such Collateral
without charge in or by means of any storage or transportation facility owned
or leased by such Grantor, process, repair or recondition such Collateral or
otherwise prepare it for disposition in any manner and to the extent the
Administrative Agent deems appropriate and, in connection with such preparation
and disposition, use without charge any trademark, trade name, copyright,
patent or technical process used such Grantor.

(d)           Without limiting the generality of
the foregoing, if any Event of Default has occurred and is continuing:

(i)            the Administrative Agent may
(without assuming any obligations or liability thereunder), at any time and
from time to time, enforce (and shall have the exclusive right to enforce)
against any licensee or sublicensee all rights and remedies of any Grantor in,
to and under any Licenses and take or refrain from taking any action under any
thereof, and each Grantor hereby releases the Administrative Agent from, and
agrees to hold the Administrative Agent free and harmless from and against any
claims arising out of, any lawful action so taken or omitted to be taken with
respect thereto except for the
Administrative Agent’s gross negligence or willful misconduct as determined by
a final and nonappealable decision of a court of competent jurisdiction; and

(ii)           upon request by the Administrative
Agent, each Grantor agrees to execute and deliver to the Administrative Agent
powers of attorney, in form and substance satisfactory to the Administrative
Agent, for the implementation of any lease, assignment, license, sublicense,
grant of option, sale or other disposition of any Intellectual Property.  In the event of any such disposition pursuant
to this Section, each Grantor shall supply its know-how and expertise relating
to the manufacture and sale of the products bearing Trademarks or the products
or services made or rendered in connection with Patents or Copyrights, and its
customer lists and other records relating to such Intellectual Property and to
the distribution of said products, to the Administrative Agent.

SECTION
9.  Limitation on Duty of
Administrative Agent in Respect of Collateral.  Beyond reasonable care in the custody
thereof, the Administrative Agent shall have no duty as to any Collateral of
any Grantor in its possession or control or in the possession or control of any
agent or bailee or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto.  The Administrative Agent shall be deemed to
have exercised reasonable care in the custody of the Collateral of the Grantors
in its possession if such Collateral is accorded treatment substantially equal
to that which it accords its own property, and the Administrative Agent shall
not be liable or responsible for any loss or damage to any of the Grantors’
Collateral, or for any diminution in the value thereof, by reason of the act or
omission of any warehouseman, carrier, forwarding agency, consignee or other
agent or bailee selected by the Administrative Agent in good faith.

 18
 

SECTION
10.  Application of Proceeds.
The proceeds of any sale of, or other realization upon, all or any part of the
Collateral of the Grantors shall be applied by the Administrative Agent in the
manner set forth in Section 8.2 of
the Amended and Restated Credit Agreement.

SECTION
11.  Concerning the
Administrative Agent.  The
provisions of Article IX of the Amended and Restated Credit Agreement shall
inure to the benefit of the Administrative Agent in respect of this Agreement
and shall be binding upon the parties to the Amended and Restated Credit
Agreement in such respect.  In furtherance
and not in derogation of the rights, privileges and immunities of the
Administrative Agent therein set forth:

(a)           The Administrative Agent is
authorized to take all such action as is provided to be taken by it as the
Administrative Agent hereunder or otherwise permitted under the Amended and
Restated Credit Agreement and all other action reasonably incidental
thereto.  As to any matters not expressly
provided for herein or therein, the Administrative Agent may request
instructions from the Lenders and shall act or refrain from acting in accordance
with written instructions from the Required Lenders or, in the absence of such
instructions, in accordance with its discretion.

(b)           The Administrative Agent shall not be
responsible for the existence, genuineness or value of any of the Grantors’ Collateral
or for the validity, perfection, priority or enforceability of the Security
Interests, whether impaired by operation of law or by reason of any action or
omission to act on its part.  The
Administrative Agent shall have no duty to ascertain or inquire as to the
performance or observance of any of the terms of this Agreement by the
Grantors.

SECTION
12.  Appointment of
Co-Administrative Agents. 
At any time or times, in order to comply with any legal requirement in
any jurisdiction, the Administrative Agent may appoint another bank or trust
company or one or more other Persons reasonably acceptable to the Required
Lenders and, so long as no Event of Default has occurred or is continuing, the
Borrowers, either to act as co-agent or co-agents, jointly with the
Administrative Agent, or to act as separate agent or agents on behalf of the
Administrative Agent and the Secured Parties with such power and authority as
may be necessary for the effectual operation of the provisions hereof and
specified in the instrument of appointment (which may, in the discretion of the
Administrative Agent, include provisions for the protection of such co-agent or
separate agent similar to the provisions of Section 10).

SECTION
13.  Expenses.  In the event that any Grantor fails to comply
with the provisions of the Amended and Restated Credit Agreement, this
Agreement or any other Loan Document, such that the value of any of its
Collateral or the validity, perfection, rank or value of the Security Interests
are thereby diminished or potentially diminished or put at risk in any material
way, the Administrative Agent may, but shall not be required to, effect such
compliance on behalf of such Grantor, and the Grantors shall jointly and
severally reimburse the Administrative Agent for the reasonable and actual
costs thereof on demand.  All insurance
expenses and all expenses of protecting, storing, warehousing, appraising,
insuring, handling, maintaining and shipping such Collateral, any and all
excise, stamp, intangibles, transfer, property, sales, and use taxes imposed by
any state, federal, or local authority or any other 

 19
 

governmental authority on any of such Collateral, or
in respect of periodic appraisals and inspections of such Collateral, or in
respect of the sale or other disposition thereof, shall be borne and paid by
the Grantors jointly and severally; and if the Grantors fail promptly to pay
any portion thereof when due, the Administrative Agent may, at its option, but
shall not be required to, pay the same and charge the Grantors’ accounts
therefor, and the Grantors agree jointly and severally to reimburse the
Administrative Agent therefor on demand. 
All sums so paid or incurred by the Administrative Agent for any of the
foregoing and any and all other sums for which the Grantors may become liable
hereunder and all costs and expenses (including reasonable attorneys’ fees,
legal expenses and court costs) incurred by the Administrative Agent in
enforcing or protecting the Security Interests or any of its rights or remedies
thereon shall be payable by the Grantors on demand and shall bear interest
(after as well as before judgment) until paid at the default rate of interest
set forth in the Amended and Restated Credit Agreement and shall be additional
Secured Obligations hereunder.

SECTION
14.  Termination of Security
Interests; Release of Collateral.  Upon the repayment in full in cash
of all Secured Obligations (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has
been made and which are unknown and not calculable at the time of termination
and those Obligations relating to the Hedging Obligations), termination of all
commitments of the Lenders under the Amended and Restated  Credit Agreement and the cash
collateralization of the LC Exposure, the Security Interests shall terminate
and all rights to the Collateral shall revert to the Grantors.  Upon any such termination of the Security
Interests or release of such Collateral, the Administrative Agent will, at the
expense of the Borrowers, execute and deliver to the Borrowers such documents
as the Grantors shall reasonably request, but without recourse or warranty to
the Administrative Agent, including but not limited to written authorization to
file termination statements to evidence the termination of the Security
Interests in such Collateral.

SECTION
15.  Notices.  All notices, requests and other
communications to the Grantors or the Administrative Agent hereunder shall be
delivered in the manner required by the Amended and Restated Credit Agreement
and shall be sufficiently given to the Administrative Agent or any Grantor if
addressed or delivered to them at, in the case of the Administrative Agent and
the Borrowers, its addresses and telecopier numbers specified in the Amended
and Restated Credit Agreement and in the case of any other Grantors, at their
respective addresses and telecopier numbers provided in the Subsidiary Guaranty
Agreement or the Parent Guaranty Agreement, as applicable.  All such notices and communications shall be
deemed to have been duly given at the times set forth in the Amended and
Restated Credit Agreement.

SECTION
16.  No Waiver; Remedies
Cumulative.

(a)           No failure or delay
of the Administrative Agent of any kind in exercising any power, right or
remedy hereunder and no course of dealing between any Grantor on the one hand
and the Administrative Agent or any holder of any Note on the other hand shall
operate as a waiver thereof, nor shall any single or partial exercise of any such
power, right or remedy hereunder or under any other Loan Document, or any
abandonment or discontinuance of steps to enforce such a power, right or
remedy, preclude any other or further exercise thereof or the exercise of any
other power, right or remedy.  The rights
of the Administrative Agent hereunder 

 20
 

and of the Lenders under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any
provision of this Agreement or consent to any departure by any Grantor
therefrom shall in any event be effective unless the same shall be permitted by
subsection (b) below, and then such waiver and consent shall be effective
only in the specific instance and for the purpose for which given.  No notice or demand on any Grantor in any
case shall entitle such Grantor to any other or further notice in similar or
other circumstances.

(b)           Neither this Agreement nor any
provision hereof may be waived, amended or modified except pursuant to a
written agreement entered into between the Grantors with respect to which such
waiver, amendment or modification relates and the Administrative Agent, with
the prior written consent of the Required Lenders (except as otherwise provided
in the Amended and Restated Credit Agreement).

SECTION
17.  Successors and Assigns.  This Agreement is for the benefit of the
Administrative Agent and the Secured Parties and their permitted successors and
assigns, and in the event of an assignment of all or any of the Secured Obligations,
the rights hereunder, to the extent applicable to the indebtedness so assigned,
may be transferred with such indebtedness. 
This Agreement shall be binding on the Grantors and their successors and
assigns; provided, however, that no Grantor may assign any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and the
Lenders.

SECTION
18.  Governing Law;
Jurisdiction; Consent to Service of Process.

(a)           This Agreement shall
be construed in accordance with and be governed by the law (without giving
effect to the conflict of law principles thereof) of the State of New York.

(b)           Each party to this
Agreement hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of the United States courts located
within the Southern District in the State of New York, and of any state court
of the State of New York located in New York county and any appellate court
from any thereof, in any action or proceeding arising out of or relating to
this Agreement or any other Loan Document or the transactions contemplated
hereby or thereby, or for recognition or enforcement of any judgment, and each
of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York state court or, to the extent permitted by applicable law,
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.  Nothing in this Agreement shall
affect any right that the Administrative Agent, the Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against any Grantor or its properties in the courts of any jurisdiction.

(c)           Each party to this
Agreement irrevocably and unconditionally waives any objection which it
may now or hereafter have to the laying of venue of any such suit, action
or proceeding described in paragraph (b) of this Section and brought in any
court referred to in paragraph (b) of this Section.  Each party hereto irrevocably waives, to the
fullest extent permitted by applicable law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 21
 

(d)           Each party to this Agreement
irrevocably consents to the service of process in the manner provided for
notices in Section 10.1 of the Amended and Restated Credit
Agreement.  Nothing in this Agreement
will affect the right of the Administrative Agent or any Lender to serve
process in any other manner permitted by law.

SECTION
19.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION
20.  Severability.   Any provision of this Agreement held to be
illegal, invalid or unenforceable in any jurisdiction, shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or
unenforceability without affecting the legality, validity or enforceability of
the remaining provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION
21.  Counterparts; Integration.  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. This Agreement constitutes
the entire agreement among the parties hereto regarding the subject matters
hereof and supersedes all prior agreements and understandings, oral or written,
regarding such subject matter.

SECTION
22.  Additional Grantors.  Pursuant to Section 5.10 of the Amended
and Restated Credit Agreement, each Subsidiary that is required to become a
Subsidiary Loan Party after the date of the Amended and Restated Credit
Agreement is required to enter into this Agreement as a Grantor upon becoming
such a Subsidiary Loan Party.  Upon
execution and delivery after the date hereof by the Administrative Agent and
such Subsidiary of an instrument in the form of Exhibit A, such
Subsidiary shall become a Grantor hereunder with the same force and effect as
if originally named as a Grantor herein. 
The execution and delivery of any instrument adding an additional
Grantor as a party to this Agreement shall not require the consent of any other
Grantor hereunder.  The rights and
obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Agreement.

 22
 

SECTION
23.  Amended and Restated
Credit Agreement.  In the
event of any conflict or inconsistency between the terms of this Agreement and
the terms of the Amended and Restated Credit Agreement, the Amended and
Restated Credit Agreement shall control and govern to the extent of any such
conflict or inconsistency.

[Signature Page Follows]

 

 23

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

	
  

  	
   

  	
  AAI CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UNITED INDUSTRIAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AAI/ACL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AAI SERVICES CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

[Signatures Continued on Next Page]

[SIGNATURE PAGE TO AMENDED AND RESTATED SECURITY
AGREEMENT]

 

 

	
  

  	
   

  	
  SYMTX, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  James H. Perry

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MCTURBINE INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Francis X. Reinhardt

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Francis X. Reinhardt

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President, Financial Integration and Control

  

 

 

 

 

[SIGNATURE PAGE TO AMENDED AND RESTATED SECURITY
AGREEMENT]

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