Document:

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                                                                    Exhibit 10.2

                             INTERCREDITOR AGREEMENT

                  THIS INTERCREDITOR AGREEMENT, dated as of August __, 2002 (as
modified, amended, restated or supplemented from time to time, this
"Agreement"), is by and between GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation ("GECC"), acting in its capacity as the administrative agent under
the OpCo Credit Agreement (hereinafter defined) and the other "Loan Documents"
referenced therein (in such capacity, together with its successors in such
capacity, the "OpCo Agent"), and LEHMAN COMMERCIAL PAPER INC., a New York
corporation ("LCPI"), acting in its capacity as the agent under the Warehouse
Agreement (hereinafter defined) and the other "Loan Documents" referenced
therein (in such capacity, together with its successors in such capacity, the
"Warehouse Agent").

                                R E C I T A L S:

                           A. ALLIANCE LAUNDRY SYSTEMS LLC, a Delaware limited
         liability company ("ALS"), has entered into a Receivables Warehouse
         Agreement dated as of May 5, 1998 (as amended, supplemented, restated
         or otherwise modified from time to time, the "Sale Agreement") with
         ALLIANCE LAUNDRY RECEIVABLES WAREHOUSE LLC, a Delaware limited
         liability company (the "SPE"), pursuant to which ALS has agreed to
         convey to the SPE, and the SPE has agreed to purchase and accept from
         ALS, all of the right, title and interest of ALS in certain Specified
         Assets (as defined in the Sale Agreement).

                           B. The SPE is financing its purchases of Specified
         Assets under the Sale Agreement in part with the proceeds of loans made
         to the SPE pursuant to the terms of a Loan and Security Agreement dated
         as of May 5, 1998 (as amended, supplemented, restated or otherwise
         modified from time to time, the "Warehouse Agreement") among the SPE,
         as borrower, the financial institutions from time to time party thereto
         (collectively, the "Warehouse Lenders"), and the Warehouse Agent.

                           C. ALLIANCE LAUNDRY HOLDINGS LLC, a Delaware limited
         liability company ("Parent"), ALS, GECC and the other financial
         institutions from time to time party thereto (collectively, the "OpCo
         Lenders"), Lehman Brothers, Inc., as Arranger, and the OpCo Agent are
         parties to that certain Amended and Restated Credit Agreement dated as
         of the date hereof (as amended, supplemented, restated or otherwise
         modified from time to time, the "OpCo Credit Agreement"), pursuant to
         which the OpCo Lenders have agreed to make certain loans and other
         credit accommodations available to or for the account of ALS, provided
         that, among other conditions, ALS secures its obligations under the
         OpCo Credit Agreement, and each of Parent and ALLIANCE LAUNDRY
         CORPORATION, a Delaware corporation ("ALC"), guarantees ALS's
         obligations under the OpCo Credit Agreement and secures its

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         guarantee, in each case, pursuant to the terms of an Amended and
         Restated Guarantee and Collateral Agreement dated as of the date hereof
         by and among ALS, Parent, ALC and the OpCo Agent (as amended,
         supplemented, restated or otherwise modified from time to time, the
         "Guarantee and Collateral Agreement").

                           D. The parties hereto wish to set forth certain
         agreements with respect to the assets conveyed or encumbered pursuant
         to the agreements described above.

              NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed as follows:

                             ARTICLE 1. DEFINITIONS

         1.1. Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

              "Asset" means a Trade Receivable or an Equipment Loan, regardless
of whether it is owned by an Originator or by the SPE.

              "Bankruptcy Code" means the provisions of title 11 of the United
States Code, 11 U.S.C.(S)(S) 101 et seq.

              "Business Day" means any day that is not a Saturday, a Sunday or a
day on which banks are required or permitted to be closed in any of the States
of Illinois, Wisconsin or New York.

              "Claim" means the OpCo Claim or the Warehouse Claim, as
applicable.

              "Collection Accounts" means, collectively, all lockboxes, bank
accounts or cash collateral accounts, any rights in and to any escrow assets or
any similar accounts or assets relating to, or containing or constituting
Collections or proceeds of or distributions on, any of the Assets, including,
without limitation, each of the Trade Receivables Lockboxes, Trade Receivables
Demand Deposit Accounts, Trade Receivables Lockbox Accounts, Equipment Loan
Lockboxes, Equipment Loan Demand Deposit Accounts, Equipment Loan Lockbox
Accounts and the Cash Collateral Account (each, as defined in the Warehouse
Agreement).

              "Collections" means with respect to any Asset, the sum of all
amounts, whether in the form of cash, checks, drafts, or other instruments,
received by the SPE, an Originator, the Servicer or in a Collection Account in
payment of, or applied to, any amount owed by an Obligor on account of such
Asset, including, without limitation, all amounts in respect of fees with
respect to such Asset and all proceeds of any collateral for such Asset (if
any).

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                  "Contract" means any contract (including, without limitation,
any loan agreement, instrument, lease, installment purchase contract or other
written agreement), invoice, or other writing evidencing any Asset.

                  "Disposition" means any liquidation of the Parent or any of
its Subsidiaries or their assets, the establishment of any receivership for the
Parent or any of its Subsidiaries or their assets, a bankruptcy proceeding
(either voluntary or involuntary) of the Parent or any of its Subsidiaries, the
payment of any insurance, condemnation, confiscation, seizure or other claim
upon the condemnation, confiscation, seizure, loss or destruction of, or damage
to, or any other sale, transfer, assignment or other disposition of assets of
the Parent or any of its Subsidiaries (other than the sale, contribution and
pledge of interests in the Warehouse Collateral pursuant to the Sale Agreement
and the Warehouse Agreement).

                  "Effective Advance Rate" means, on any date of determination
following delivery of an Enforcement Notice by the OpCo Agent to the Warehouse
Agent and ALS, the percentage of the aggregate outstanding principal balance of
all New Assets that the Warehouse Lenders have advanced in cash, taking into
account all exclusions (whether for ineligibles, overconcentrations, reserves or
otherwise) taken by the Warehouse Agent pursuant to the Warehouse Agreement.

                  "Enforcement" means, collectively or individually, (a)
acceleration of the loans and other obligations outstanding under the Warehouse
Agreement and/or the OpCo Loan Documents; or (b) commencement of any judicial or
nonjudicial enforcement of any of the default rights and remedies against the
Parent or any of its Subsidiaries (other than the SPE) or any of their
respective assets under the OpCo Loan Documents or against the SPE nor any of
its assets under the Warehouse Documents.

                  "Enforcement Notice" means a written notice delivered in
accordance with Section 2.4 hereof which notice: (a) if delivered by the
Warehouse Agent, shall state that (i) a Warehouse Event of Default has occurred
under the Warehouse Agreement, (ii) the loans and other obligations outstanding
thereunder have been accelerated, and (iii) an Enforcement Period has commenced,
and (b) if delivered by the OpCo Agent, (i) shall state that (A) an OpCo Event
of Default has occurred, (B) the indebtedness of the Parent and its Subsidiaries
(other than the SPE) to the OpCo Agent or any of the OpCo Lenders under the OpCo
Loan Documents has been accelerated, and (C) an Enforcement Period has
commenced, and (ii) may, subject to the conditions specified in Section 2.1 of
this Agreement, state that subsequent sales and contributions of Assets under
the Sale Agreement must terminate.

                  "Enforcement Period" means the period of time following the
receipt by either the OpCo Agent or the Warehouse Agent of an Enforcement Notice
delivered by the other until the earliest of the following: (a) the Warehouse
Claim has been satisfied in full, the Warehouse Lenders and the Warehouse Agent
have no further obligations under the Warehouse Documents and the Warehouse
Documents have been terminated; (b) the OpCo Claim has been satisfied in full,
the OpCo Agent and the OpCo Lenders have no further obligations under the OpCo
Loan Documents and the OpCo Loan Documents have been terminated; and (c) the
parties hereto agree in writing to terminate the Enforcement Period.

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                  "Equipment" has the meaning specified in the Warehouse
Agreement.

                  "Equipment Loan" means a loan or finance lease secured by
Equipment, which loan or finance lease was originated by an Originator,
including without limitation, the obligation to pay any finance, interest, late
payment or similar charges with respect thereto.

                  "Governmental Authority" means any nation or government, any
state or other political subdivision thereof, and any agency, department or
other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

                  "Lien" means any mortgage or deed of trust, pledge,
hypothecation, assignment, deposit arrangement, lien, charge, claim, security
interest, easement or encumbrance, or preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including any lease or title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of, or agreement to give, any financing statement perfecting a security interest
under the UCC or comparable law of any jurisdiction.

                  "New Assets" means, as of any date of determination, all
Transferred Assets transferred to the SPE on any day following the date on which
the OpCo Agent delivers the Enforcement Notice referred to in clause (a) of
Section 2.1 of this Agreement.

                  "Obligor" means, with respect to any Asset, the Person
primarily obligated to make payments in respect thereof.

                  "OpCo Claim" means all of the indebtedness, obligations and
other liabilities of the Parent or any of its Subsidiaries (other than the SPE)
now or hereafter arising under, or in connection with the OpCo Loan Documents,
including, but not limited to, all reimbursement obligations of the Parent with
respect to any loans made or any letters of credit issued thereunder, all
guarantee obligations of the Parent's Subsidiaries (other than the SPE) under
the OpCo Loan Documents, any interest thereon (including, without limitation,
interest accruing after the commencement of a bankruptcy, insolvency or similar
proceeding relating to any of the Parent or its Subsidiaries (other than the
SPE), whether or not such interest is an allowed claim in any such proceeding),
any reimbursement obligations, premiums, make-whole amounts, yield maintenance
amounts, fees or expenses due thereunder, and any costs of collection or
enforcement.

                  "OpCo Collateral" means all property and interests in property
now owned or hereafter acquired or created, of the Parent or any of its
Subsidiaries (other than the SPE) in or upon which a OpCo Interest is granted or
purported to be granted by any such Person to the OpCo Agent under any of the
OpCo Loan Documents, excluding, however, the Warehouse Collateral.

                  "OpCo Event of Default" has the meaning ascribed to the terms
"Event of Default" or "Default" in the OpCo Credit Agreement.

                  "OpCo Interest" means, with respect to any property or
interest in property (including, without limitation, the OpCo Collateral), now
owned or hereafter acquired or created,

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of the Parent or any of its Subsidiaries (other than the SPE), any lien, claim,
encumbrance, security interest or other interest of the OpCo Agent in such
property or interests in or to such property.

                  "OpCo Loan Documents" means the OpCo Credit Agreement, the
Guarantee and Collateral Agreement, and all other "Loan Documents" under and as
defined in the OpCo Credit Agreement.

                  "OpCo Lockbox Account" means a lockbox and associated account
in the name of ALS that is subject to a first priority perfected security
interest in favor of the OpCo Agent into which only proceeds of OpCo Collateral
are to be deposited.

                  "Originator" means ALS and any of its affiliates that is
hereafter added to the Sale Agreement as a seller or contributor of Assets
thereunder.

                  "Outstanding Balance" means (a) with respect to any Trade
Receivable and as of any date of determination, the amount (which amount shall
not be less than zero) equal to (i) the amount billed to the Obligor thereof,
minus (ii) all Collections received from the Obligor thereunder, minus (iii) all
discounts to or any other modifications that reduce such amount billed to the
Obligor; provided that if the Warehouse Agent or the Servicer makes a
determination that all payments by such Obligor with respect to such amount
billed have been made, the Outstanding Balance shall be zero, and (b) with
respect to any Equipment Loan and as of any date of determination, the then
outstanding principal balance thereof.

                  "Person" means any individual, sole proprietorship,
partnership, joint venture, unincorporated organization, trust, association,
corporation (including a business trust), limited liability company,
institution, public benefit corporation, joint stock company, Governmental
Authority or any other entity of whatever nature.

                  "Records" means all Contracts, Servicing Records (as defined
in the Sale Agreement) and other documents, books, records and other information
(including computer programs, tapes, disks, data processing software and related
property and rights) prepared and maintained by any Originator, the Servicer or
the SPE with respect to the Warehouse Collateral and the Obligors thereunder.

                  "Returned Goods" means all right, title and interest of any
Originator or the SPE, as applicable, in and to returned, repossessed,
reclaimed, traded-in or foreclosed upon Equipment or other goods, the sale or
financing of which gave rise to an Asset.

                  "Servicer" has the meaning specified in the Warehouse
Agreement.

                  "Subsidiary" means, with respect to any Person, any
corporation or other entity (a) of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions are at the time directly or
indirectly owned by such Person or (b) that is directly or indirectly controlled
by such Person within the meaning of control under Section 15 of the Securities
Act of 1933, as amended from time to time.

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                  "Trade Receivable" means any indebtedness and other
obligations (other than an Equipment Loan) owed to an Originator (prior to
giving effect to any sale or other transfer to the SPE under the Sale Agreement,
if applicable) whether constituting an account, chattel paper, an instrument or
a general intangible, arising in connection with the sale of goods or
merchandise or the rendering of services by such Originator, which includes,
without limitation, the obligation to pay any finance, interest, late payment or
similar charges with respect thereto. Indebtedness and other rights and
obligations arising from any one transaction, including, without limitation,
indebtedness and other rights and obligations represented by an individual
invoice, shall constitute a Trade Receivable separate from a Trade Receivable
consisting of the indebtedness and other rights and obligations arising from any
other transaction. Restructurings and extensions of such indebtedness and other
rights and obligations including, without limitation, a restructuring in which a
new Obligor is permitted to assume the obligations of an existing Obligor, shall
not be deemed to give rise to the creation of new Trade Receivables.

                  "Transferred Asset" means any Asset in which is sold or
contributed to the SPE pursuant to the Sale Agreement.

                  "UCC" means, with respect to any jurisdiction, the Uniform
Commercial Code as the same may, from time to time, be enacted and in effect in
such jurisdiction.

                  "Unsold Asset" means any Asset or other account, general
intangible, instrument or chattel paper of any Originator other than Transferred
Assets.

                  "Warehouse Claim" means all indebtedness, obligations and
other liabilities of (a) the SPE to the Warehouse Agent and the Warehouse
Lenders arising under or in connection with the Warehouse Documents and (b)
until and unless all of the obligations to the Warehouse Agent or any Warehouse
Lender arising under or in connection with the Warehouse Documents have been
fully performed and indefeasibly paid in full in cash to the Warehouse Agent,
all obligations and other liabilities of any Originator to the SPE, in each case
now or hereafter arising under, or in connection with, the Warehouse Documents,
including, but not limited to, all sums or advances now made to or for the
benefit of the SPE under the Warehouse Agreement, any yield or interest thereon
(including, without limitation, interest or yield accruing after the
commencement of a bankruptcy, insolvency or similar proceeding relating to the
Originators or the SPE, whether or not such interest or yield is an allowed
claim in any such proceeding), any repayment obligations, fees or expenses due
thereunder, and any costs of collection or enforcement.

                  "Warehouse Collateral" means (a) the Transferred Assets
(including Returned Goods related to such Transferred Assets), (b) the
Collections related to such Transferred Assets, (c) each of the Collection
Accounts to which any Collections of such Transferred Assets are deposited and
all cash or other property now or hereafter on deposit therein (but in no event
shall Warehouse Collateral include any Collections or other monies deposited in
such accounts which are not Collections related to Transferred Assets), (d) all
Equipment Loan Documents (as defined in the Warehouse Agreement) related to any
Transferred Asset, (e) all rights, remedies, powers and privileges of the SPE
under such Equipment Loan Documents (including, without limitation, all rights
of the SPE in and to the Equipment and other interests that are the subject of
the Equipment Loans) and such Trade Receivables; (f) all Servicing Records (as
defined in the

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Warehouse Agreement) and other books and records (including, without limitation,
computer programs, tapes and other computer storage media) relating to any of
the foregoing; (g) all recourse or support obligations, surety bonds,
guarantees, indemnities and security relating to any of the foregoing and all
letters of credit relating thereto; (h) all insurance policies covering the
related Equipment and any proceeds with respect thereto and all FCIA Insurance
(as defined in the Warehouse Agreement) covering Trade Receivables included in
the Transferred Assets the Obligors with respect to which are not resident in
the United States; (i) to the extent not included in the foregoing, all
"accounts," "chattel paper," "instruments," "goods" and "general intangibles"
(as defined in the Uniform Commercial Code) relating to or constituting any and
all of the foregoing in whole or in part; (j) all other property of the SPE of
any nature whatsoever (including, without limitation, all "documents,"
"equipment" and "inventory" (as defined in the Uniform Commercial Code); (k) all
rights of the SPE against the Originators under the Sale Agreement; and (l) any
and all replacements, substitutions, distributions on or proceeds of any and all
of the foregoing.

                  "Warehouse Documents" means the Sale Agreement, the Warehouse
Agreement, and each of the other "Loan Documents" under and as defined in the
Warehouse Agreement.

                  "Warehouse Event of Default" means an "Event of Default" under
and as defined in the Warehouse Agreement.

                  "Warehouse Interest" means, with respect to any of the
Warehouse Collateral or any property or interest in property, any lien, claim,
encumbrance, security interest or other interest of any or all of the SPE, the
Warehouse Lenders and/or the Warehouse Agent in or to any of such property.

                  "Warehouse Lenders" means LCPI and its assigns under the
Warehouse Agreement.

                       ARTICLE 2. INTERCREDITOR PROVISIONS

         2.1.     Termination of Sales and Contributions. If (a) the OpCo Agent
delivers an Enforcement Notice to the Warehouse Agent and ALS that conforms to
the requirements of clause (b)(i) of the definition of "Enforcement Notice" and
(b) the OpCo Agent, following the delivery of such Enforcement Notice, delivers
to the Warehouse Agent and ALS a second Enforcement Notice stating that (i) (A)
for any day, the Effective Advance Rate under the Warehouse Agreement for New
Assets consisting of Trade Receivables is less than 80% or (B) for any day, the
Effective Advance Rate under the Warehouse Agreement for New Assets consisting
of Equipment Loans is less than 85%, and that (ii) all subsequent sales and
contributions of Assets under the Sale Agreement shall terminate, no further
sales or contributions shall be permitted under the Sale Agreement. If any such
subsequent sale or contribution shall nonetheless occur, the OpCo Interest in
the New Assets subject thereto and in all proceeds thereof shall not be
released, such New Assets shall not constitute Transferred Assets and any
Warehouse Interest therein shall be subordinated to any OpCo Interest therein.

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         2.2. Distribution of Proceeds.

         (a)  From and after delivery by the Warehouse Agent of an Enforcement
Notice: (i) all proceeds of the Warehouse Collateral or any Disposition thereof
which come into the possession of the OpCo Agent or any of the OpCo Lenders
shall be held in trust for, and promptly turned over to, the applicable
Collection Account for application against the Warehouse Claim in accordance
with the Warehouse Documents until the Warehouse Claim has been paid and
satisfied in full in cash and the Warehouse Documents have terminated, and (ii)
any remaining proceeds of the Warehouse Collateral shall be paid to the SPE or
as otherwise required by applicable law.

         (b)  From and after delivery by the OpCo Agent of an Enforcement
Notice, (i) all proceeds of the OpCo Collateral or any Disposition thereof which
come into the possession of the Warehouse Agent or any of the Warehouse Lenders
shall be held in trust for, and promptly turned over to, the OpCo Lockbox
Account if one exists (and otherwise, to the OpCo Agent) for application against
(or cash-collateralization of) the OpCo Claim in accordance with the OpCo
Documents until the OpCo Claim has been paid and satisfied in full in cash and
the OpCo Documents have terminated, and (ii) any remaining proceeds of the OpCo
Collateral shall be paid to the Parent or the applicable Subsidiary or as
otherwise required by applicable law.

         2.3. Collection Accounts.

         (a)  The Warehouse Agent hereby acknowledges that Collections of Unsold
Assets which are deposited in the Collection Accounts or otherwise shall not
constitute Warehouse Collateral, and the Warehouse Agent has no claim to such
Collections as they are not property of the SPE.

         (b)  In order to effect more fully the provisions of this Agreement,
each of the parties hereto agrees that during an Enforcement Period, it shall
not send any notices to the Obligors directing them to remit Collections of any
Transferred Assets other than to a Collection Account.

         (c)  The OpCo Agent agrees that it shall not, at any time prior to
Enforcement, exercise any rights it may have under the OpCo Loan Documents to
send any notices to Obligors (i) informing them of the OpCo Agent's interest in
the Transferred Assets, or (ii) directing such Obligors to make payments in any
particular manner of any amounts due under the Transferred Assets; the OpCo
Agent further agrees that it shall not take any of the foregoing actions during
Enforcement prior to the later of payment in full of the Warehouse Claim and the
termination of the Warehouse Documents, except that the OpCo Agent may inform
any Obligors of Unsold Assets that such Unsold Assets have been pledged to the
OpCo Agent so long as such notices expressly state that all payments on account
of such Unsold Assets shall continue to be made as otherwise required pursuant
to the terms of the Warehouse Documents, unless the Warehouse Agent and the OpCo
Agent agree otherwise in writing. The Warehouse Agent hereby agrees to return
reasonably promptly to the applicable Originator funds received by the Warehouse
Agent which are reasonably identified to the Warehouse Agent (through supporting
documentation) to constitute proceeds of an Unsold Asset constituting OpCo
Collateral (including such funds received in the Collection Accounts); provided
that if the OpCo Agent shall so request in a written notice to the Warehouse
Agent delivered at any time while an OpCo Event of Default

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exists and is continuing, the Warehouse Agent shall transfer such funds to the
OpCo Lockbox Account instead of returning them to an Originator. The OpCo Agent
agrees that, prior to the later of payment in full of the Warehouse Claim and
the termination of the Warehouse Documents, if it receives payments directly
from any Obligor on account of an Unsold Asset, it shall promptly notify the
Warehouse Agent in order that the Warehouse Agent may determine whether such
payment was, in fact, properly allocated to such Unsold Asset in accordance with
the terms of this Section 2.3, and if the Warehouse Agent shall have reasonably
identified (through supporting documentation) to the OpCo Agent that such
payment was not properly allocated to such Unsold Asset, the OpCo Agent hereby
agrees to return reasonably promptly such payment by wire transfer to the
applicable Collection Account.

         2.4. Enforcement Actions. Each of the OpCo Agent and the Warehouse
Agent agrees to use reasonable efforts to give an Enforcement Notice to the
other prior to commencement of Enforcement (but failure to do so shall not
prevent such Person from commencing Enforcement or affect its rights hereunder
nor create any cause of action or liability against such Person). Subject to the
foregoing, each of the parties hereto agrees that during an Enforcement Period:

         (a)  Subject to any applicable restrictions in the Warehouse Documents,
the Warehouse Agent may at its option and without the prior written consent of
the OpCo Agent take any action to (i) accelerate payment of the Warehouse Claim
or any other obligations and liabilities under any of the Warehouse Documents
and (ii) liquidate the Warehouse Collateral or foreclose or realize upon or
enforce any of its rights with respect to the Warehouse Collateral.

         (b)  Subject to any applicable restrictions in and to the terms of the
OpCo Loan Documents, the OpCo Agent may, at its option, and without the prior
written consent of the Warehouse Agent, take any action to (i) accelerate
payment of or require cash collateral for the OpCo Claim or any other obligation
or liability arising under any of the OpCo Loan Documents and (ii) liquidate the
OpCo Collateral or foreclose or realize upon or enforce any of its rights with
respect to the OpCo Collateral.

         2.5. Non-interference. Subject to any applicable restrictions in the
Warehouse Documents, the OpCo Agent agrees that to the extent it now or
hereafter obtains title to or lawful possession of any premises leased or owned
by the Parent, the Servicer, any Originator or the SPE where Records with
respect to Warehouse Collateral are maintained or stored: (a) it will permit the
Warehouse Lenders and the Warehouse Agent (or their agents, employees or
designees) to enter one or more of such premises at any time during reasonable
business hours, without force or process of law and without obligation to pay
rent or compensation to the OpCo Agent or any of the OpCo Lenders, whether
before, during or after an Enforcement Period, and to have access to and use of
all Records located thereon for the purpose of enforcing the Warehouse Agent's
rights, on behalf of the Warehouse Lenders, with respect to the Warehouse
Collateral, and (b) any mortgage of, assignment of, security interest in or lien
upon any real property and interests in real property of the Parent or any of
its Subsidiaries other than the SPE (whether leased or owned) shall be subject
to the Warehouse Lenders' and the Warehouse Agent's rights of access and use of
the Records described above.

         2.6. Accountings. If the OpCo Agent delivers written notice to the
Warehouse Agent and the Servicer that an OpCo Event of Default has occurred and
is continuing, the Warehouse

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Agent shall direct the Servicer to render monthly written statements to the
Warehouse Agent and the OpCo Agent identifying in reasonable detail the Unsold
Assets and any Collections received in respect thereof during the calendar month
then most recently ended.

         2.7.  Agency for Perfection. To the fullest extent permitted by
applicable law: (a) the Warehouse Agent and the OpCo Agent hereby appoint each
other as third party bailee with notice and acceptance for purposes of
perfecting by possession their respective security interests and liens on the
OpCo Collateral and Warehouse Collateral described hereunder; (b) in the event
that the Warehouse Agent becomes aware that it has obtained possession of any of
the OpCo Collateral, the Warehouse Agent shall notify the OpCo Agent of such
fact, shall hold such OpCo Collateral in trust and shall transfer such OpCo
Collateral to an OpCo Lockbox Account (if one has been established pursuant to
this Agreement) or otherwise, to the applicable Originator; and (c) in the event
that the OpCo Agent becomes aware that it has obtained possession of any of the
Warehouse Collateral, the OpCo Agent shall notify the Warehouse Agent of such
fact, shall hold such Warehouse Collateral in trust and shall deliver such
Warehouse Collateral to the applicable Collection Account upon request.

         2.8. UCC Notices. In the event that the Warehouse Lenders or the
Warehouse Agent shall be required by the UCC or any other applicable law to give
notice to the OpCo Agent of any intended disposition of any Warehouse
Collateral, such notice shall be given in accordance with Section 3.1 hereof and
ten (10) days' notice shall be deemed to be commercially reasonable.

         2.9.  Independent Credit Investigations. None of the Warehouse Lenders,
the Warehouse Agent, the OpCo Lenders or the OpCo Agent or any of their
respective directors, officers, agents or employees shall be responsible to the
other or to any other person, firm or corporation for the solvency, financial
condition or ability of the SPE , the Parent, ALC, any Originator or its
Subsidiaries to repay the Warehouse Claim or the OpCo Claim, or for the worth of
the Warehouse Collateral or the OpCo Collateral, or for statements of the
Originators, the SPE or the Parent or its Subsidiaries, oral or written, or for
the validity, sufficiency or enforceability of the Warehouse Claim, the OpCo
Claim, the Warehouse Documents, the OpCo Loan Documents, the Warehouse Agent's
interest in the Warehouse Collateral or the OpCo Agent's interest in the OpCo
Collateral. The OpCo Lenders and the Warehouse Lenders have entered into their
respective agreements with the Parent and its applicable Subsidiaries based upon
their own independent investigations. None of the Warehouse Lenders, the
Warehouse Agent, the OpCo Lenders or the OpCo Agent makes any warranty or
representation to the other nor does it rely upon any representation of the
other with respect to matters identified or referred to in this Section 2.9.

         2.10. Limitation on Liability of Parties to Each Other. Except as
provided in this Agreement, neither party shall have any liability to any other
party except for liability arising from the gross negligence or willful
misconduct of such party or its representatives.

         2.11. Amendments to Financing Arrangements or to this Agreement. The
OpCo Agent agrees to use reasonable efforts to give, concurrently with any
written amendment or modification in the OpCo Loan Documents, prompt notice to
the Warehouse Agent of the same and the Warehouse Agent agrees to use reasonable
efforts to, concurrently with any written amendment or modification in the
Warehouse Documents (including, without limitation, the

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addition of any Originator to the Sale Agreement besides ALS), notify the OpCo
Agent of the same; provided, however, that the failure to do so shall not create
a cause of action against any party failing to give such notice or create any
claim or right on behalf of any third party or affect any such amendment or
modification. Each party hereto shall, upon reasonable request of the other
party hereto, provide copies of all such modifications or amendments and copies
of all other documentation relevant to the Warehouse Collateral or the OpCo
Collateral. All modifications or amendments of this Agreement must be in writing
and duly executed by an authorized officer of each party hereto to be binding
and enforceable.

     2.12. Marshalling of Assets. Nothing in this Agreement will be deemed to
require the Warehouse Agent (i) to proceed against any property securing the
Warehouse Claim (or any other obligation or liability under the Warehouse
Documents) prior to proceeding against other property securing such Claim or
obligations or liabilities or against certain persons guaranteeing any such
obligations or (ii) to marshal the Warehouse Collateral upon the enforcement of
the Warehouse Agent's remedies under the Warehouse Documents. Nothing in this
Agreement will be deemed to require the OpCo Agent (i) to proceed against any
property securing the OpCo Claim (or any other obligation or liability under the
OpCo Loan Documents) prior to proceeding against other property securing such
Claim or obligations or liabilities or against certain persons guaranteeing any
such obligations or (ii) to marshal the OpCo Collateral upon the enforcement of
the OpCo Agent's remedies under the OpCo Loan Documents.

     2.13. Relative Rights. The OpCo Agent and the OpCo Lenders shall be
entitled to rely on the power and authority of the Warehouse Agent to act on
behalf of its principals to the extent the provisions hereof have the Warehouse
Agent so act, and the Warehouse Agent and the Warehouse Lenders shall be
entitled to rely on the power and authority of the OpCo Agent to act on behalf
of its principals to the extent the provisions hereof have the OpCo Agent so
act.

     2.14. Effect Upon OpCo Loan Documents and Warehouse Documents. Each of the
Warehouse Agent and the OpCo Agent agrees that, as between themselves and their
respective constituents, to the extent the terms and provisions of the OpCo Loan
Documents or the Warehouse Documents are inconsistent with the terms and
provisions of this Agreement, the terms and provisions of this Agreement shall
control.

     2.15. Nature of the OpCo Claim and Modification of the OpCo Loan Documents.
The Warehouse Agent, on behalf of the Warehouse Lenders, acknowledges that the
OpCo Claim and other obligations and liabilities owing under the OpCo Loan
Documents are, in part, revolving in nature and that the amount of such
revolving indebtedness which may be outstanding at any time or from time to time
may be increased or reduced and subsequently reborrowed. The terms of the OpCo
Loan Documents may be modified, extended or amended from time to time, and the
amount thereof may be increased or reduced, all without notice to or consent by
any of the Warehouse Lenders or the Warehouse Agent and without affecting the
provisions of this Agreement. Without in any way limiting the foregoing, the
Warehouse Agent, on behalf of the Warehouse Lenders, hereby agrees that the
maximum amount of OpCo Claim and other obligations and liabilities owing under
the OpCo Loan Documents may be increased at any time and from time to time to
any amount.

                                       11

<PAGE>

     2.16. Nature of the Warehouse Claim and Modification of Warehouse
Documents. The OpCo Agent acknowledges that the Warehouse Claim and other
obligations and liabilities owing under the Warehouse Documents are, in part,
revolving in nature and that the amount of such revolving obligations which may
be outstanding at any time or from time to time may be increased or reduced and
subsequently reincurred. The terms of the Warehouse Documents may be modified,
extended or amended from time to time, and the amount thereof may be increased
or reduced, all without notice to or consent by the OpCo Agent and without
affecting the provisions of this Agreement. Without in any way limiting the
foregoing, the OpCo Agent hereby agrees that the maximum amount of Warehouse
Claim and other obligations and liabilities owing under the Warehouse Documents
may be increased at any time and from time to time to any amount.

     2.17. Further Assurances; Adding Parties. Each of the parties agrees to
take such actions as may be reasonably requested by any other party, whether
before, during or after a Enforcement, in order to effect the rules of
distribution and allocation set forth above in this Article 2 and to otherwise
effectuate the agreements made in this Article. In addition, in the event any
Originator other than ALS is added to the Sale Agreement, the Warehouse Agent
agrees to require such new Originator to become a party hereto prior to or
simultaneously with its addition to the Sale Agreement, and in the event any
additional Subsidiaries of the Parent become guarantors under the OpCo Loan
Documents, the OpCo Agent agrees to require such new guarantor to become a party
hereto prior to or simultaneously with its addition to the Guarantee and
Collateral Agreement.

     2.18. Non-Petition. To and until the date which is one year and one day
after the later of the date the Warehouse Claim shall have been paid in full and
the Warehouse Documents have been terminated, the OpCo Agent (on behalf of
itself and the OpCo Lenders) agrees that it shall not consent to or vote for the
filing of any petition in bankruptcy for the SPE.

     2.19. True Sale. The OpCo Agent, on behalf of the OpCo Lenders, agrees that
it will not seek to challenge the characterization of the transfers of Warehouse
Collateral pursuant to the Sale Agreement as being true sales or other outright
conveyances thereof, and will not seek to substantively consolidate the SPE with
the Parent or any of the Parent's other Subsidiaries.

                         ARTICLE 3.    MISCELLANEOUS

     3.1.  Notices. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including
telecommunications and communication by facsimile copy) and mailed, transmitted
or delivered, as to each party hereto, at its address set forth under its name
on the signature pages hereof or at such other address as shall be designated by
such party in a written notice to the other parties hereto. All such notices and
communications shall be effective upon receipt, or, in the case of notice by
mail, five (5) days after being deposited in the mails, postage prepaid, or in
the case of notice by facsimile copy, when verbal confirmation of receipt is
obtained, in each case addressed as aforesaid.

     3.2.  Agreement Absolute. Each of the OpCo Lenders and the OpCo Agent shall
be deemed to have entered into the OpCo Loan Documents in express reliance upon
this Agreement. This Agreement shall be and remain absolute and unconditional
under any and all

                                       12

<PAGE>

circumstances, and no acts or omissions on the part of any party to this
Agreement shall affect or impair the agreement of any party to this Agreement,
unless otherwise agreed to in writing by all of the parties hereto. This
Agreement shall be applicable both before and after the filing of any petition
by or against the Parent or any of its Subsidiaries, Originators or the SPE
under the Bankruptcy Code and all references herein to the Parent or any of its
Subsidiaries, Originators or the SPE shall be deemed to apply to a
debtor-in-possession for such party and all allocations of payments between the
OpCo Agent, the OpCo Lenders, the Warehouse Lenders and the Warehouse Agent
shall, subject to any court order to the contrary, continue to be made after the
filing of such petition on the same basis that the payments were to be applied
prior to the date of the petition.

     3.3. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of each of the parties hereto and their respective successors and
assigns. The successors and assigns for the Parent and its Subsidiaries shall
include a debtor-in-possession or trustee of or for such party. The successors
and assigns for the OpCo Lenders, the OpCo Agent, the Warehouse Lenders or the
Warehouse Agent, as the case may be, shall include any successor OpCo Lender,
OpCo Agent, Warehouse Lenders or the Warehouse Agent, as the case may be,
appointed under the terms of the OpCo Loan Documents or the Warehouse Documents,
as applicable. Each of the OpCo Agent and the Warehouse Agent agrees not to
transfer any interest it may have in the OpCo Loan Documents or the Warehouse
Documents, as applicable, unless such transferee has been notified of the
existence of this Agreement and has agreed to be bound hereby. In the event that
the financing provided under the OpCo Credit Agreement shall be refinanced,
replaced or refunded, the Parent, ALC, the Originators, the Servicer, the SPE,
the Warehouse Lenders, the OpCo Agent and the Warehouse Agent hereby agree, at
the request of the Warehouse Agent or lenders under the credit facility that so
refinances, replaces or refunds the financing under the OpCo Credit Agreement,
to execute and deliver a new intercreditor agreement with such agent and/or
lenders on substantially the same terms as herein provided. In the event that
the financing provided under the Warehouse Documents shall be refinanced,
replaced or refunded, the OpCo Agent hereby agrees, at the request of the agent
or Warehouse Lenders under the facility that so refinances, replaces or refunds
the financing under the Warehouse Documents, to execute and deliver a new
intercreditor agreement with such agent and/or Warehouse Lender on substantially
the same terms as herein provided.

     3.4. Beneficiaries. The terms and provisions of this Agreement shall be for
the sole benefit of the parties hereto and their respective successors and
assigns, and no other Person shall have any right, benefit, or priority by
reason of this Agreement.

     3.5. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS (WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES) OF THE
STATE OF NEW YORK.

     3.6. Waiver of Jury Trial. Each of the parties hereto hereby waives its
respective rights to a jury trial of any action or proceeding arising out of or
relating to this Agreement. This waiver is irrevocable and may not be modified
either orally or in writing (other than by a mutual written waiver specifically
referencing this section executed by all of the parties hereto).

                                       13

<PAGE>

     3.7. Section Titles. The article and section headings contained in this
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

     3.8. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or thereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

     3.9. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same agreement.

                            [signature pages follow]

                                       14

<PAGE>

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

                      GENERAL ELECTRIC CAPITAL CORPORATION,
                      as OpCo Agent

                      By:_______________________________________________________
                      Name:_____________________________________________________
                      Title: Its Duly Authorized Signatory

                      Address:

                            500 West Monroe
                            Suite 1700
                            Chicago, Illinois 60661
                            Attention: Chad Blakeman
                            Telecopy: (312) 463-2273

                   [Signature Page to Intercreditor Agreement]

                                                                               1

<PAGE>

                      LEHMAN COMMERCIAL PAPER INC.,
                      as Warehouse Agent

                      By:_______________________________________________________
                      Name:_____________________________________________________
                      Title:

                      Address:

                            745 Seventh Avenue, 19th Floor
                            New York, New York 10019
                            Attention: Frank Turner
                            Telecopy: (212) 526-1463
                            Telephone: (646) 758-1986

                  [Signature Page to Intercreditor Agreement]

                                                                               2

<PAGE>

By its respective signature below: (i) each of the undersigned agrees that, upon
receipt of an Enforcement Notice, it will be bound by the provisions of Section
2.1 with the same force and effect as if it were a direct signatory hereto, (ii)
each of the Parent, ALC and the Originators agrees to be bound by the provisions
of the second sentence of Section 2.17 of this Agreement with the same force and
effect as if it were a direct signatory hereto, (iii) so long as Parent or any
of its Subsidiaries is acting as the Servicer, each of the undersigned agrees
that it will prepare, or cause the Servicer to prepare, the monthly reports
required under Section 2.6 upon request of the Warehouse Agent or the OpCo
Agent, and (iv) from and after delivery by the OpCo Agent of notice of an OpCo
Event of Default pursuant to Section 2.6, each of the Parent, ALC and the
Originators will establish one or more OpCo Lockbox Accounts in the name of ALS
but subject to a first priority perfected security interest in favor of the OpCo
Agent into which only the proceeds of OpCo Collateral and Dispositions thereof
are deposited.

ALLIANCE LAUNDRY HOLDINGS LLC

By: ______________________________________
Name:
Title:

ALLIANCE LAUNDRY SYSTEMS LLC

By: ______________________________________
Name:
Title:

ALLIANCE LAUNDRY CORPORATION

By: ______________________________________
Name:
Title:

ALLIANCE LAUNDRY RECEIVABLES WAREHOUSE LLC

By: ______________________________________
Name:
Title:

                   [Signature Page to Intercreditor Agreement]

                                                                               3<PAGE>

                                                                    Exhibit 10.3

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

                              AMENDED AND RESTATED
                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                         ALLIANCE LAUNDRY HOLDINGS LLC,

                          ALLIANCE LAUNDRY SYSTEMS LLC,
                        and certain of their Subsidiaries

                                   in favor of

                      GENERAL ELECTRIC CAPITAL CORPORATION,
                             as Administrative Agent

                           Dated as of August 2, 2002

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                               <C>
Section I.    DEFINED TERMS .....................................................................   2
       1.1.   Definitions .......................................................................   2
       1.2.   Other Definitional Provisions .....................................................   7

Section II.   GUARANTEE .........................................................................   7
       2.1.   Guarantee .........................................................................   7
       2.2.   Right of Contribution .............................................................   8
       2.3.   No Subrogation ....................................................................   9
       2.4.   Amendments, etc. with respect to the Borrower Obligations .........................   9
       2.5.   Guarantee Absolute and Unconditional ..............................................  10
       2.6.   Reinstatement .....................................................................  11
       2.7.   Payments ..........................................................................  12

Section III.  GRANT OF SECURITY INTEREST ........................................................  12

Section IV.   REPRESENTATIONS AND WARRANTIES ....................................................  13
       4.1.   Representations in Credit Agreement ...............................................  13
       4.2.   No Other Liens ....................................................................  13
       4.3.   Perfected First Priority Liens ....................................................  14
       4.4.   Jurisdiction of Organization; Chief Executive Office ..............................  14
       4.5.   Inventory and Equipment ...........................................................  14
       4.6.   Farm Products .....................................................................  14
       4.7.   Investment Property ...............................................................  14
       4.8.   Receivables .......................................................................  15
       4.9.   Contracts .........................................................................  15
       4.10.  Intellectual Property .............................................................  16
       4.11.  Commercial Tort Claims ............................................................  16

Section V.    COVENANTS .........................................................................  16
       5.1.   Covenants in Credit Agreement .....................................................  16
       5.2.   Delivery of Instruments, Certified Securities and Chattel Paper ...................  16
       5.3.   Maintenance of Insurance ..........................................................  17
       5.4.   Payment of Obligations ............................................................  17
       5.5.   Maintenance of Perfected Security Interest; Further Documentation .................  17
       5.6.   Changes in Locations, Name, etc. ..................................................  18
       5.7.   Notices ...........................................................................  18
       5.8.   Investment Property ...............................................................  19
       5.9.   Receivables .......................................................................  20
       5.10.  Intellectual Property .............................................................  20
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                 Page
                                                                                                 ----
<S>                                                                                              <C>
Section VI.    REMEDIAL PROVISIONS .............................................................  22
        6.1.   Certain Matters Relating to Receivables .........................................  22
        6.2.   Communications with Obligors; Grantors Remain Liable ............................  22
        6.3.   Pledged Stock ...................................................................  23
        6.4.   Proceeds to be Turned Over To Administrative Agent ..............................  24
        6.5.   Application of Proceeds .........................................................  24
        6.6.   Code and Other Remedies .........................................................  25
        6.7.   Registration Rights .............................................................  26
        6.8.   Deficiency ......................................................................  27

Section VII.   THE ADMINISTRATIVE AGENT ........................................................  27
        7.1.   Administrative Agent's Appointment as Attorney-in-Fact, etc. ....................  27
        7.2.   Duty of Administrative Agent ....................................................  29
        7.3.   Execution of Financing Statements ...............................................  29
        7.4.   Authority of Administrative Agent ...............................................  29

Section VIII.  MISCELLANEOUS ...................................................................  30
        8.1.   Amendments in Writing ...........................................................  30
        8.2.   Notices .........................................................................  30
        8.3.   No Waiver by Course of Conduct; Cumulative Remedies .............................  30
        8.4.   Enforcement Expenses; Indemnification ...........................................  30
        8.5.   Successors and Assigns ..........................................................  31
        8.6.   Set-Off .........................................................................  31
        8.7.   Counterparts ....................................................................  31
        8.8.   Severability ....................................................................  31
        8.9.   Section Headings ................................................................  31
        8.10.  Integration .....................................................................  32
        8.11.  GOVERNING LAW ...................................................................  32
        8.12.  Submission To Jurisdiction; Waivers .............................................  32
        8.13.  Acknowledgments .................................................................  32
        8.14.  Additional Grantors .............................................................  33
        8.15.  Releases ........................................................................  33
        8.16.  WAIVER OF JURY TRIAL ............................................................  33
</TABLE>

                                      -ii-

<PAGE>

SCHEDULES

Schedule 1  Notice Addresses
Schedule 2  Investment Property
Schedule 3  Perfection Matters
Schedule 4  Jurisdictions of Organization and Chief Executive Offices
Schedule 5  Inventory and Equipment Locations
Schedule 6  Intellectual Property
Schedule 7  Contracts
Schedule 8  Government Contracts
Schedule 9  Commercial Tort Claims

ANNEXES
Annex 1     Form of Assumption Agreement
Annex 2     Form of Perfection Certificate

                                      -iii-

<PAGE>

     AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of August
2, 2002, made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, the "Grantors"), in favor of
General Electric Capital Corporation, as Administrative Agent (in such capacity,
the "Administrative Agent") for the benefit of the Secured Parties (as defined
below), including the banks and other financial institutions (the "Lenders")
from time to time parties to the Amended and Restated Credit Agreement, dated as
of August 2, 2002 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among Alliance Laundry Holdings LLC ("Holdings"),
Alliance Laundry Systems LLC (the "Borrower"), the Lenders, Lehman Brothers,
Inc., as Arranger, Lehman Commercial Paper Inc., as Syndication Agent, Fleet
National Bank and LaSalle Bank National Association, as Documentation Agents,
and the Administrative Agent.

                              W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, which amends and restates the
Credit Agreement, dated as of May 5, 1998 (as amended, supplemented or otherwise
modified up to the date hereof, the "Existing Credit Agreement"), the Lenders
party thereto have agreed to continue loans and other extensions of credit
heretofore made to the Borrower and to make loans and other extensions of credit
to the Borrower upon the terms and subject to the conditions set forth therein;

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

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

     WHEREAS, the Borrower and the other Grantors are engaged in related
businesses, and each Grantor will derive substantial direct and indirect benefit
from (i) the making of the extensions of credit under the Credit Agreement and
(ii) entering into the Specified Hedge Agreements; and

     WHEREAS, it is a condition precedent to the obligation of (i) the Lenders
to make their respective extensions of credit to the Borrower under the Credit
Agreement and to continue the Loans made under the Existing Credit Agreement and
(ii) the Qualified Counterparties to enter into the Specified Hedge Agreements,
that the Grantors shall have executed and delivered this Agreement to the
Administrative Agent for the benefit of the Secured Parties and the Agents;

     NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent and the Secured Parties to enter into the Credit Agreement
and the Specified Hedge Agreements and to induce the Secured Parties to make
their respective extensions of credit or financial accommodations to the
Borrower thereunder and to continue the Loans made pursuant to the Existing
Credit Agreement, each Grantor hereby agrees with the Administrative Agent, for
the benefit of the Secured Parties, as follows:

<PAGE>

                            SECTION I. DEFINED TERMS

          1.1. Definitions. (a) Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement, and the following terms are used herein as defined in the
New York UCC: Account, Certificated Security, Chattel Paper, Document,
Equipment, Farm Products, General Intangibles, Instrument, Inventory, Letter of
Credit Rights and Supporting Obligations.

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

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

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

          "Borrower Hedge Agreement Obligations": the collective reference to
     all obligations and liabilities of the Borrower (including, without
     limitation, interest accruing at the then applicable rate provided in any
     Specified Hedge Agreement after the filing of any petition in bankruptcy,
     or the commencement of any insolvency, reorganization or like proceeding,
     relating to the Borrower, whether or not a claim for post-filing or
     post-petition interest is allowed in such proceeding) to any Qualified
     Counterparty, whether direct or indirect, absolute or contingent, due or to
     become due, or now existing or hereafter incurred, which may arise under,
     out of, or in connection with, any Specified Hedge Agreement or any other
     document made, delivered or given in connection therewith, in each case
     whether on account of principal, interest, reimbursement obligations, fees,
     indemnities, costs, expenses or otherwise (including, without limitation,
     all fees and disbursements of counsel to the relevant Qualified
     Counterparty that are required to be paid by the Borrower pursuant to the
     terms of any Specified Hedge Agreement).

                                        2

<PAGE>

          "Borrower Obligations": the collective reference to (i) the Borrower
     Credit Agreement Obligations, (ii) the Borrower Hedge Agreement
     Obligations, but only to the extent that, and only so long as, the Borrower
     Credit Agreement Obligations are secured and guaranteed pursuant hereto,
     and (iii) all other obligations and liabilities of the Borrower, whether
     direct or indirect, absolute or contingent, due or to become due, or now
     existing or hereafter incurred, which may arise under, out of, or in
     connection with, this Agreement (including, without limitation, all fees
     and disbursements of counsel to the Agents or to the Secured Parties that
     are required to be paid by the Borrower pursuant to the terms of this
     Agreement).

          "Collateral": as defined in Section 3.

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

          "Commercial Tort Claim": as defined in the Uniform Commercial Code of
     any applicable jurisdiction and, in any event, including, without
     limitation, any claim arising in tort if the claim is generally assignable
     under applicable law and (a) the claimant is an organization or (b) the
     claimant is an individual, the claim does not include damages arising out
     of bodily injury to or the death of an individual and the claim arose in
     the course of the claimant's business or profession. It is understood that
     no Grantor shall be required to perfect a security interest in any
     Commercial Tort Claim owned by it except to the extent such security
     interest may be perfected by filing a financing statement under the Uniform
     Commercial Code as in effect in the applicable jurisdiction.

          "Contracts": the contracts and agreements listed in Schedule 7, as the
     same may be amended, supplemented or otherwise modified from time to time,
     including, without limitation, (i) all rights of any Grantor to receive
     moneys due and to become due to it thereunder or in connection therewith,
     (ii) all rights of any Grantor to damages arising thereunder and (iii) all
     rights of any Grantor to perform and to exercise all remedies thereunder.

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

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

                                        3

<PAGE>

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

          "Excluded Assets": the collective reference to (i) any Equipment,
     contract, General Intangible, Copyright License, Patent License or
     Trademark License, in each case to the extent the grant by the relevant
     Grantor of a security interest pursuant to this Agreement in such Grantor's
     right, title and interest in such asset (A) is prohibited by legally
     enforceable provisions of any contract, agreement, instrument or indenture
     governing such asset as permitted by the Credit Agreement, (B) would give
     any other party to such contract, agreement, instrument or indenture a
     legally enforceable right to terminate its obligations thereunder or (C) is
     permitted only with the consent of another party, if the requirement to
     obtain such consent is legally enforceable and such consent has not been
     obtained; provided, that in any event any Receivable or any money or other
     amounts due or to become due under any such contract, agreement, instrument
     or indenture shall not be Excluded Assets to the extent that any of the
     foregoing is (or if it contained a provision limiting the transferability
     or pledge thereof would be) subject to Section 9-406 of the New York UCC,
     and (ii) Foreign Subsidiary Voting Stock excluded from the definition of
     "Pledged Stock" set forth in this Section 1.1.

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

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

          "Guarantor Hedge Agreement Obligations": the collective reference to
     all obligations and liabilities of a Guarantor (including, without
     limitation, interest accruing at the then applicable rate provided in any
     Specified Hedge Agreement after the filing of any petition in bankruptcy,
     or the commencement of any insolvency, reorganization or like proceeding,
     relating to such Guarantor, whether or not a claim for post-filing or
     post-petition interest is allowed in such proceeding) to any Qualified
     Counterparty, whether direct or indirect, absolute or contingent, due or to
     become due, or now existing or hereafter incurred, which may arise under,
     out of, or in connection with, any Specified Hedge Agreement or any other
     document made, delivered or given in connection therewith, in each case
     whether on account of principal, interest, reimbursement obligations, fees,
     indemnities, costs, expenses or otherwise (including, without limitation,
     all fees and disbursements of counsel to the relevant Qualified
     Counterparty that are required to be paid by such Guarantor pursuant to the
     terms of any Specified Hedge Agreement).

          "Guarantor Obligations": with respect to any Guarantor, the collective
     reference to (i) any Guarantor Hedge Agreement Obligations of such
     Guarantor, but only to the extent that, and only so long as, the other
     Obligations of such Guarantor are secured and guaranteed pursuant hereto,
     and (ii) all obligations and liabilities of such Guarantor which may arise
     under or in connection with this Agreement (including, without

                                        4

<PAGE>

     limitation, Section 2) or any other Loan Document to which such Guarantor
     is a party, in each case whether on account of guarantee obligations,
     reimbursement obligations, fees, indemnities, costs, expenses or otherwise
     (including, without limitation, all fees and disbursements of counsel to
     the Administrative Agent or to the Secured Parties that are required to be
     paid by such Guarantor pursuant to the terms of this Agreement or any other
     Loan Document).

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

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

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

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

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

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

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

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

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

                                        5

<PAGE>

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

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

          "Pledged Stock": the shares of Capital Stock listed on Schedule 2,
     together with any other shares, stock certificates, options or rights of
     any nature whatsoever in respect of the Capital Stock of any Person that
     may be issued or granted to, or held by, any Grantor while this Agreement
     is in effect; provided that in no event shall more than 65% of the total
     outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be
     required to be pledged hereunder.

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

          "Qualified Counterparty": with respect to any Specified Hedge
     Agreement, any counterparty thereto that, at the time such Specified Hedge
     Agreement was entered into, was a Lender or an affiliate of a Lender.

          "Receivable": any right to payment for goods sold or leased or for
     services rendered, whether or not such right is evidenced by an Instrument
     or Chattel Paper and whether or not it has been earned by performance
     (including, without limitation, any Account), to the extent such right is
     owned by such Grantor. A Receivable shall not be considered to be owned by
     a Grantor if it has been transferred by such Grantor in a transaction which
     is intended to constitute a sale or which results in derecognition of such
     Receivable from the financial statements of such Grantor.

          "Secured Parties": the collective reference to the Agents, the Lenders
     (including any Issuing Lender in its capacity as Issuing Lender) and any
     Qualified Counterparty.

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

          "Specified Hedge Agreement": any Hedge Agreement entered into by (a)
     the Borrower or any of its subsidiaries and (b) any Qualified Counterparty.

          "Trademarks": (i) all trademarks, trade names, corporate names,
     company names, business names, fictitious business names, trade styles,
     service marks, logos and other

                                        6

<PAGE>

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

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

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

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

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

          (d)  Where the context requires, any Hedge Agreement entered into by
any Grantor with any Lender or any Affiliate of any Lender shall, for purposes
of this Agreement, be a "Loan Document" and any such Affiliate of a Lender
shall, for purposes of this Agreement, be a "Lender" for purposes of this
Agreement.

          (e)  The Agents and the Arranger are collectively referred to herein
as the "Agents".

                              SECTION II. GUARANTEE

          2.1. Guarantee. (a) (i) The Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantee to the Administrative Agent, for the
ratable benefit of the Secured Parties and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and
performance by the Borrower when due (whether at stated maturity, by
acceleration or otherwise) of the Borrower Obligations (other than, in the case
of each Guarantor, Borrower Obligations arising pursuant to clause (ii) of this
Section 2.1(a) in respect of Guarantor Hedge Agreement Obligations in respect of
which such Guarantor is a primary obligor).

               (ii) The Borrower hereby unconditionally and irrevocably
guarantees to the Administrative Agent, for the ratable benefit of the Secured
Parties and their respective successors, endorsees, transferees and assigns, the
prompt and complete payment and

                                        7

<PAGE>

performance by each Guarantor when due (whether at stated maturity, by
acceleration or otherwise) of the Guarantor Hedge Agreement Obligations of such
Guarantor (other than any such obligation for which the Borrower is the primary
obligor).

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

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

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

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

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

          2.2. Right of Contribution. (a) Each Subsidiary Guarantor hereby
agrees that to the extent that a Subsidiary Guarantor shall have paid more than
its proportionate share of any

                                        8

<PAGE>

payment made hereunder or in respect of Borrower Obligations, such Subsidiary
Guarantor shall be entitled to seek and receive contribution from and against
any other Subsidiary Guarantor hereunder which has not paid its proportionate
share of such payment.

          (b)  The Borrower and each Guarantor agrees that to the extent that
the Borrower or any Guarantor shall have paid more than its proportionate share
of any payment made hereunder in respect of any Guarantor Hedge Agreement
Obligation of any other Guarantor, the Borrower or such Guarantor, as the case
may be, shall be entitled to seek and receive contribution from and against the
Borrower and any other Guarantor which has not paid its proportionate share of
such payment.

          (c)  The Borrower's and each Guarantor's right of contribution under
this Section 2.2 shall be subject to the terms and conditions of Section 2.3.
The provisions of this Section 2.2 shall in no respect limit the obligations and
liabilities of the Borrower or any Guarantor to the Agents and the Secured
Parties, and the Borrower and each Guarantor shall remain liable to the Agents
and the Secured Parties for the full amount guaranteed by the Borrower or such
Guarantor hereunder.

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

          2.4. Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations or Guarantor Hedge Agreement Obligations made by any Agent or any
Secured Party may be rescinded by such Agent or such Secured Party and any of
the Borrower Obligations or Guarantor Hedge Agreement Obligations continued, and
the Borrower Obligations or Guarantor Hedge Agreement Obligations, or the

                                        9

<PAGE>

liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by any Agent or any
Secured Party, and the Credit Agreement and the other Loan Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the requisite Lenders, as the case may be) may deem advisable from
time to time, and any collateral security, guarantee or right of offset at any
time held by any Agent or any Secured Party for the payment of the Borrower
Obligations or Guarantor Hedge Agreement Obligations may be sold, exchanged,
waived, surrendered or released. No Agent or Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or the Guarantor Hedge Agreement
Obligations or for the guarantee contained in this Section 2 or any property
subject thereto.

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

                                       10

<PAGE>

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

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

                                       11

<PAGE>

failure by any Agent or any Secured Party to make any such demand, to pursue
such other rights or remedies or to collect any payments from any Guarantor or
any other Person or to realize upon any such collateral security or guarantee or
to exercise any such right of offset, or any release of any Guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve the Borrower of any obligation or liability under this Section
2, and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of any Agent or any Secured Party
against the Borrower under this Section 2. For the purposes hereof "demand"
shall include the commencement and continuance of any legal proceedings.

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

          2.7. Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim (i) in the case of obligations in respect of Borrower Obligations
arising under the Credit Agreement or any other Loan Document in Dollars at the
Payment Office specified in the Credit Agreement and (ii) in the case of
obligations in respect of any Borrower Hedge Agreement Obligations or any
Guarantor Hedge Agreement Obligations, in the currency and at the place
specified in the applicable Specified Hedge Agreement.

                    SECTION III. GRANT OF SECURITY INTEREST

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

          (a)  all Accounts;

          (b)  all Chattel Paper;

          (c)  all Commercial Tort Claims;

          (d)  all Contracts;

          (e)  all Deposit Accounts;

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<PAGE>

          (f)  all Documents;

          (g)  all Equipment;

          (h)  all General Intangibles;

          (i)  all Instruments;

          (j)  all Intellectual Property;

          (k)  all Inventory;

          (l)  all Investment Property;

          (m)  all Letter of Credit Rights;

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

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

provided that (i) the Collateral shall not include any Excluded Assets and (ii)
no Lien shall be granted in any Property upon which a Lien is not required to be
granted pursuant to Section 6.10 of the Credit Agreement.

                   SECTION IV. REPRESENTATIONS AND WARRANTIES

          To induce the Agents and the Secured Parties to enter into the Credit
Agreement and the Specified Hedge Agreements and to induce the Secured Parties
to make their respective extensions of credit or financial accommodations to the
Borrower thereunder, each Grantor hereby represents and warrants to each Agent
and each Secured Party that:

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

          4.2. No Other Liens. Except for the security interest granted to the
Administrative Agent for the ratable benefit of the Agents and the Secured
Parties pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Credit Agreement, all of such Grantor's Collateral is free and
clear of any and all Liens or claims of others.

                                       13

<PAGE>

          4.3. Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Administrative Agent in
completed and duly executed form) will constitute valid perfected security
interests in all of the UCC Filing Collateral in favor of the Administrative
Agent, for the ratable benefit of the Agents and the Secured Parties, as
collateral security for such Grantor's Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons
purporting to purchase any such Collateral from such Grantor and (b) are prior
to all other Liens on such Collateral other than Liens permitted under Section
7.3 of the Credit Agreement (except Section 7.3(j)).

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

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

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

          4.7. Investment Property. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer (other than Alliance Commercial
Appliances Receivables LLC and Alliance Commercial Appliances Finance LLC) owned
by such Grantor or, in the case of Foreign Subsidiary Voting Stock, if less, 65%
of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

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

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

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

                                       14

<PAGE>

Agreement and other Liens permitted under Section 7.3 of the Credit Agreement
(except Section 7.3(j)).

          4.8. Receivables. (a) No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
(to the extent the aggregate amount of such Instruments and Chattel Paper
exceeds $100,000) which has not been delivered to the Administrative Agent,
except for Receivables which such Grantor expects to transfer within 90 days of
the date of the origination of such Receivables pursuant to a Permitted
Receivables Financing.

          (b)  Except as set forth on Schedule 8, as of the date hereof, none of
the obligors on any Receivables is a Governmental Authority.

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

          4.9. Contracts. (a) No consent of any party (other than such Grantor)
to any Contract is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement.

          (b)  Each Contract is in full force and effect and constitutes a valid
and legally enforceable obligation of the Grantors party thereto, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

          (c)  No material consent or material authorization of, filing with, or
other act by or in respect of, any Governmental Authority is required in
connection with the execution, delivery, performance, validity or enforceability
of any of the Contracts by any Grantor party thereto other than those which have
been duly obtained, made or performed, are in full force and effect and do not
subject the scope of any such Contract to any material adverse limitation,
either specific or general in nature.

          (d)  As of the Effective Date, neither such Grantor nor (to the best
of such Grantor's knowledge) any of the other parties to the Contracts is in
default in the performance or observance of any of the terms thereof in any
manner that, in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

          (e)  The right, title and interest of such Grantor in, to and under
the Contracts are not subject to any defenses, offsets, counterclaims or claims
that, in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

          (f)  As of the date hereof, such Grantor has delivered to the
Administrative Agent a complete and correct copy of each Contract, including all
amendments, supplements and other modifications thereto.

                                       15

<PAGE>

          (g)   No amount payable to such Grantor under or in connection with
any Contract is evidenced by any Instrument or Chattel Paper (to the extent the
aggregate amount of such Instruments and Chattel Paper exceeds $100,000) which
has not been delivered to the Administrative Agent.

          (h)   None of the parties to any Contract is a Governmental Authority.

          4.10. Intellectual Property. (a) Schedule 6 lists all registered
Intellectual Property owned by such Grantor in its own name on the date hereof.

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

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

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

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

          4.11. Commercial Tort Claims. Schedule 9 is a complete and correct
description of all Commercial Tort Claims owned by such Grantor on the date
hereof.

                              SECTION V. COVENANTS

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

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

          5.2.  Delivery of Instruments, Certificated Securities and Chattel
Paper. Except as provided in Section 4.8, if any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any
Instrument, Certificated Security or Chattel

                                       16

<PAGE>

Paper (to the extent that the aggregate amount of such Chattel Paper exceeds
$100,000), such Instrument, Certificated Security or Chattel Paper shall be
immediately delivered to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, to be held as Collateral pursuant to
this Agreement.

          5.3. Maintenance of Insurance. (a) Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory and Equipment against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Administrative Agent and
(ii) to the extent requested by the Administrative Agent, insuring such Grantor,
the Agents and the Secured Parties against liability for personal injury and
property damage relating to such Inventory and Equipment, such policies to be in
such form and amounts and having such coverage as may be reasonably satisfactory
to the Administrative Agent.

          (b)  All such insurance shall (i) provide that no cancellation,
material reduction in amount or material change in coverage thereof shall be
effective until at least 30 days after receipt by the Administrative Agent of
written notice thereof, (ii) name the Administrative Agent as insured party or
loss payee, (iii) if reasonably requested by the Administrative Agent, include a
breach of warranty clause and (iv) be reasonably satisfactory in all other
respects to the Administrative Agent.

          (c)  The Borrower shall deliver to the Administrative Agent and the
Lenders a report of a reputable insurance broker with respect to such insurance
as the Administrative Agent may from time to time reasonably request.

          5.4. Payment of Obligations. Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed
upon the Collateral, as well as all claims of any kind (including, without
limitation, claims for labor, materials and supplies) against or with respect to
the Collateral, except (a) that no such charge need be paid if the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings, reserves in conformity with GAAP with respect thereto have been
provided on the books of such Grantor or (b) where the failure to pay, discharge
or otherwise satisfy such obligations could not, individually or in the
aggregate, reasonably be expected to result in the sale, forfeiture or loss of
any material portion of the Collateral or any interest therein, other than as a
result of a Lien permitted under Section 7.3 of the Credit Agreement.

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

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

                                       17

<PAGE>

          (c)  At any time and from time to time, upon the written request of
the Administrative Agent, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) the filing of any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property, Deposit Accounts, Letter of Credit
Rights and any other relevant Collateral, taking any actions necessary to enable
the Administrative Agent to obtain "control" (within the meaning of the
applicable Uniform Commercial Code) with respect thereto, provided that no such
action shall be required with respect to Deposit Accounts unless an Event of
Default shall have occurred and be continuing.

          5.6. Changes in Locations, Name, etc. Such Grantor will not, except
upon 15 days' prior written notice to the Administrative Agent and delivery to
the Administrative Agent of (a) all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein
and (b) if applicable, a written supplement to Schedule 5, showing any
additional location at which Inventory or Equipment shall be kept:

               (i)   permit any of the Inventory or Equipment to be kept at a
          location other than those listed on Schedule 5 and other than
          temporary transfers (for a period not to exceed three months in any
          event) of Equipment from any location set forth in Schedule 5 to
          another location if done for the limited purpose of repairing,
          refurbishing, or overhauling such Equipment in the ordinary course of
          business;

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

               (iii) change its name.

          5.7. Notices. Such Grantor will advise the Administrative Agent and
the Lenders promptly, in reasonable detail, of:

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

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

                                       18

<PAGE>

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

          (b)  Without the prior written consent of the Administrative Agent,
such Grantor will not (i) vote to enable, or take any other action to permit,
any Issuer to issue any stock or other equity securities of any nature or to
issue any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any Issuer
unless such stock or other securities are subject to a perfected security
interest hereunder, (ii) sell, assign, transfer, exchange, or otherwise dispose
of, or grant any option with respect to, the Investment Property or the Proceeds
thereof (except pursuant to a transaction expressly permitted by the Credit
Agreement), (iii) create, incur or permit to exist any Lien or option in favor
of, or any claim of any Person with respect to, any of the Investment Property
or the Proceeds thereof, or any interest therein, except for the security
interests created by this Agreement or as otherwise permitted under Section 7.3
of the Credit Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to
sell, assign or transfer any of the Investment Property or the Proceeds thereof,
other than the Senior Subordinated Note Indenture (or any other indenture
governing Indebtedness permitted under Section 7.2(f) of the Credit Agreement)
or any agreement entered into in connection with a sale of the Capital Stock of
any Subsidiary permitted under the Credit Agreement.

                                       19

<PAGE>

          (c)   In the case of each Grantor which is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement relating to the
Investment Property issued by it and will comply with such terms insofar as such
terms are applicable to it, (ii) it will notify the Administrative Agent
promptly in writing of the occurrence of any of the events described in Section
5.8(a) with respect to the Investment Property issued by it, (iii) the terms of
Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all
actions that may be required of it pursuant to Section 6.3(c) or 6.7 with
respect to the Investment Property issued by it and (iv) it will comply with
instructions originated by the Administrative Agent with respect to Investment
Property issued by it without any further consent of the owner thereof.

          (d)   No Grantor shall permit any other Person (other than the
Administrative Agent) to exercise or obtain "control" (within the meaning of
Section 8-106 of the New York UCC in effect on the date hereof or at any time
hereafter) in connection with any Lien of any of its Investment Property
(including Cash Equivalents) in connection with the grant of a Lien by such
Grantor to or for the benefit of such Person or any other Person (other than the
Administrative Agent) except as otherwise permitted under Section 7.3 of the
Credit Agreement.

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

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

          (c)   Such Grantor shall maintain a serial number tracking system on
finished goods inventory, as maintained by it prior to the date hereof.

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

                                       20

<PAGE>

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

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

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

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

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

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

          (h) In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take such
actions as such

                                       21

<PAGE>

Grantor shall reasonably deem appropriate under the circumstances to protect
such Intellectual Property and (ii) if such Intellectual Property is of material
economic value, promptly notify the Administrative Agent after it learns thereof
and in its reasonable business judgment sue for infringement, misappropriation
or dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution.

                        SECTION VI. REMEDIAL PROVISIONS

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

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

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

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

     (b)  Upon the request of the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
notify obligors on the Receivables that the Receivables have been assigned to
the Administrative Agent for the ratable

                                       22

<PAGE>

benefit of the Agents and the Secured Parties and that payments in respect
thereof shall be made directly to the Administrative Agent.

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

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

               (b) If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the
Obligations in the order set forth in Section 6.5 and (ii) any or all of the
Investment Property shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders, partners or members of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee,

                                       23

<PAGE>

depositary, transfer agent, registrar or other designated agency upon such terms
and conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.

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

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

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

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

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

                                       24

<PAGE>

                     Third, to the Administrative Agent, for deposit in a cash
              collateral account opened by the Administrative Agent an amount
              equal to the aggregate then undrawn and unexpired amount of such
              Letters of Credit for all Letters of Credit with respect to which
              presentment for honor shall not have occurred at the time of
              application of Proceeds pursuant to this Section 6.5 and with
              respect to which the Borrower is not under an obligation under
              Section 8 of the Credit Agreement to make deposits into a cash
              collateral account;

                     Fourth, to the Administrative Agent, for application by it
              towards prepayment of the Obligations, pro rata (i) with respect
              to prepayment of the Obligations, among the Agents and the Secured
              Parties according to the amounts of the Obligations then held by
              the Agents and the Secured Parties and (ii) with respect to the
              cash collateral account, among the Lenders according to their
              respective Revolving Credit Percentages; and

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

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

                                       25

<PAGE>

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

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

          (b) Each Grantor recognizes that the Administrative Agent may be
unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that 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 Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

          (c) Each Grantor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the

                                       26

<PAGE>

Pledged Stock pursuant to this Section 6.7 valid and binding and in compliance
with any and all other applicable Requirements of Law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7 will
cause irreparable injury to the Agents and the Secured Parties, that the Agents
and the Secured Parties have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section
6.7 shall be specifically enforceable against such Grantor, and such Grantor
hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants except for a defense that no Event of
Default has occurred under the Credit Agreement.

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

                   Section VII.    THE ADMINISTRATIVE AGENT

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

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

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

               (iii) pay or discharge taxes and Liens levied or placed on or
          threatened against the Collateral, effect any repairs or any insurance
          called for by the terms

                                       27

<PAGE>

               of this Agreement and pay all or any part of the premiums
               therefor and the costs thereof;

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

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

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

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

               (c) The expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per

                                       28

<PAGE>

annum equal to the rate per annum at which interest would then be payable on
past due Revolving Credit Loans that are Base Rate Loans under the Credit
Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.

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

          7.2. Duty of Administrative Agent. The Administrative Agent's sole
duty with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. No Agent or Secured Party
nor any of their respective officers, directors, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or any other Person or
to take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Agents and the Secured Parties hereunder
are solely to protect the Agents' and the Secured Parties' interests in the
Collateral and shall not impose any duty upon any Agent or any Secured Party to
exercise any such powers. The Agents and the Secured Parties shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct.

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

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

                                       29

<PAGE>

Grantor shall be under any obligation, or entitlement, to make any inquiry
respecting such authority.

                          SECTION VIII.      MISCELLANEOUS

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

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

          8.3. No Waiver by Course of Conduct; Cumulative Remedies. No Agent or
Secured Party shall by any act (except by a written instrument pursuant to
Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy hereunder or to have acquiesced in any Default or Event of
Default. No failure to exercise, nor any delay in exercising, on the part of any
Agent or any Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by any Agent or
any Secured Party of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy which any Agent or any Secured
Party would otherwise have on any future occasion. The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any other rights or remedies provided by law.

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

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

          (c)  Each Guarantor agrees to pay, and to save the Agents and the
Secured Parties harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the

                                       30

<PAGE>

extent the Borrower would be required to do so pursuant to Section 10.5 of the
Credit Agreement.

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

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

          8.6. Set-Off. Each Grantor hereby irrevocably authorizes each Agent
and each Secured Party at any time and from time to time while an Event of
Default pursuant to Section 8(a) of the Credit Agreement shall have occurred and
be continuing, without notice to such Grantor or any other Grantor, any such
notice being expressly waived by each Grantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Agent or such Secured
Party to or for the credit or the account of such Grantor, or any part thereof
in such amounts as such Agent or such Secured Party may elect, against and on
account of the obligations and liabilities of such Grantor to such Agent or such
Secured Party hereunder and claims of every nature and description of such Agent
or such Secured Party against such Grantor, in any currency, whether arising
hereunder, under the Credit Agreement, any other Loan Document or otherwise, as
such Agent or such Secured Party may elect, whether or not any Agent or any
Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. Each Agent and each
Secured Party shall notify such Grantor promptly of any such set-off and the
application made by it of the proceeds thereof, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of the Agents and each Secured Party under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Agents or such Secured Party may have.

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

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

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

                                       31

<PAGE>

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

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

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

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

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

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

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

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

          8.13. Acknowledgments.  Each Grantor hereby acknowledges that:

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

          (b)   no Agent or Secured Party has any fiduciary relationship with or
     duty to any Grantor arising out of or in connection with this Agreement or
     any of the other Loan Documents, and the relationship between the Grantors,
     on the one hand, and the Agents

                                       32

<PAGE>

          and Secured Parties, on the other hand, in connection herewith or
          therewith is solely that of debtor and creditor; and

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

          8.14. Additional Grantors. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 6.10 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex 1 hereto.

          8.15. Releases. (a) At such time as the Loans, the Reimbursement
Obligations and the other Obligations (other than (i) Borrower Hedge Agreement
Obligations and Guarantor Hedge Agreement Obligations and (ii) unasserted
contingent indemnity and other obligations which expressly survive the
termination of the Credit Agreement and are not then due and payable) shall have
been paid in full, the Commitments have been terminated and no Letters of Credit
shall be outstanding which have not been fully cash collateralized in accordance
with the Credit Agreement or otherwise collateralized in a manner satisfactory
to the Issuing Lender in its sole discretion, the Collateral shall be released
from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the Administrative
Agent and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to such Grantor any Collateral held by the Administrative Agent hereunder, and
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such termination.

          (b)   If any of the Collateral (including transfers of Receivables and
related assets in a Permitted Receivables Financing) shall be sold, transferred
or otherwise disposed of by any Grantor in a transaction permitted by the Credit
Agreement, such Collateral shall be automatically released from the Lien of this
Agreement and the other Loan Documents without further action on the part of any
Grantor, any Agent or the Lenders, and shall cease to constitute Collateral
hereunder, and then the Administrative Agent, at the request and sole expense of
such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created
hereby on such Collateral. At the request and sole expense of the Borrower, a
Subsidiary Guarantor shall be released from its obligations hereunder in the
event that all the Capital Stock of such Subsidiary Guarantor shall be sold,
transferred or otherwise disposed of in a transaction permitted by the Credit
Agreement.

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

                                       33

<PAGE>

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

                                                 ALLIANCE LAUNDRY HOLDINGS LLC

                                                 By: ____________________
                                                 Title:

                                                 ALLIANCE LAUNDRY SYSTEMS LLC

                                                 By: ____________________
                                                 Title:

                                                 ALLIANCE LAUNDRY CORPORATION

                                                 By: ____________________
                                                 Title:

<PAGE>

                                                                      Schedule 1

                    NOTICE ADDRESSES OF GUARANTORS

<PAGE>

                                                                      Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

                                 Pledged Stock:

________________  __________________   _______________________  _______________
     Issuer         Class of Stock       Stock Certificate No.   No. of Shares

                                 Pledged Notes:

___________________________   _______________________     _____________________
          Issuer                       Payee                Principal Amount

<PAGE>

                                                                      Schedule 3

                            FILINGS AND OTHER ACTIONS
                     REQUIRED TO PERFECT SECURITY INTERESTS

                         Uniform Commercial Code Filings

          [List each office where a financing statement is to be filed]

                          Patent and Trademark Filings

                               [List all filings]

                      Actions with respect to Pledged Stock

                                  Other Actions

                      [Describe other actions to be taken]

<PAGE>

                                                                      Schedule 4

      JURISDICTION OF ORGANIZATION, LOCATION OF CHIEF EXECUTIVE OFFICE AND
                             IDENTIFICATION NUMBER

     Grantor      Jurisdiction of   Location of Chief     Identification Number
     -------      ---------------   -----------------     ---------------------
                  Organization      Executive Office
                  ------------      ----------------

<PAGE>

                                                                      Schedule 5

                       LOCATION OF INVENTORY AND EQUIPMENT

                  Grantor                              Locations
                  -------                              ---------

<PAGE>

                                                                      Schedule 6

                        COPYRIGHTS AND COPYRIGHT LICENSES

                           PATENTS AND PATENT LICENSES

                        TRADEMARKS AND TRADEMARK LICENSES

<PAGE>

                                                                      Schedule 7

                                    CONTRACTS

1.  Merger Agreement.

2.  All Hedge Agreements to which the Grantor is a party.

<PAGE>

                                                                      Schedule 8

                              GOVERNMENT CONTRACTS

<PAGE>

                                                                      Schedule 9

                             COMMERCIAL TORT CLAIMS

<PAGE>

                                                                      Schedule 9

                          ACKNOWLEDGMENT AND CONSENT*

          The undersigned hereby acknowledges receipt of a copy of the Amended
and Restated Guarantee and Collateral Agreement, dated as of ________ __, 2002
(the "Agreement"), made by the Grantors parties thereto in favor of General
Electric Capital Corporation, as Administrative Agent. The undersigned agrees
for the benefit of the Agents and the Lenders as follows:

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

          2. The undersigned will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.8(a) of
the Agreement.

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

          4. The undersigned agrees to comply with instructions originated by
the Administrative Agent with respect to Investment Property issued by it
without further consent of the owner thereof.

                                           [NAME OF ISSUER]

                                               _____________________________

                                           By: _____________________________
                                               Title:
                                                _____________________________

                                           Address for Notices:

                                           ________________________________

                                           ________________________________

                                           Fax:  __________________________

______________________

   * This consent is necessary only with respect to any Issuer which is not also
     a Grantor.

<PAGE>

                                                                      ANNEX 1 TO
                                              GUARANTEE AND COLLATERAL AGREEMENT

          ASSUMPTION AGREEMENT, dated as of ________________, made by
______________________________, a ______________ (the "Additional Grantor"), in
favor of General Electric Capital Corporation, as administrative agent (in such
capacity, the "Administrative Agent") for the benefit of the Secured Parties (as
defined in the Guarantee and Collateral Agreement referred to below), including
the banks and other financial institutions (the "Lenders") parties to the Credit
Agreement referred to below. All capitalized terms not defined herein shall have
the meaning ascribed to them in such Credit Agreement.

                              W I T N E S S E T H :

          WHEREAS, Alliance Laundry Systems LLC (the "Borrower"), Alliance
Laundry Holdings LLC, the Lenders, the Administrative Agent, Lehman Brothers
Inc., as Arranger, Fleet National Bank and LaSalle Bank National Association, as
Documentation Agents, and Lehman Commercial Paper Inc., as Syndication Agent,
have entered into an Amended and Restated Credit Agreement, dated as of August
2, 2002 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement");

          WHEREAS, in connection with the Credit Agreement, the Borrower and
certain of its Affiliates (other than the Additional Grantor) have entered into
the Amended and Restated Guarantee and Collateral Agreement, dated as of August
2, 2002 (as amended, supplemented or otherwise modified from time to time, the
"Guarantee and Collateral Agreement") in favor of the Administrative Agent for
the benefit of the Agents (as defined therein) and the Secured Parties;

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

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

          NOW, THEREFORE, IT IS AGREED:

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

__________________________________
** Refer to each Schedule which needs to be supplemented.

<PAGE>

                                                                               2

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

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

                                     [ADDITIONAL GRANTOR]

                                     By: _________________________________
                                         Name:
                                         Title:

<PAGE>

                                    [FORM OF]
                             PERFECTION CERTIFICATE

             Reference is made to (a) the Amended and Restated Credit Agreement
dated as of August 2, 2002 (as amended, supplemented or otherwise modified from
time to time, the "Credit Agreement"), among Alliance Laundry Holdings LLC
("Holdings"), Alliance Laundry Systems LLC (the "Borrower"), the Lenders, Lehman
Brothers, Inc., as Arranger, Lehman Commercial Paper Inc., as Syndication Agent,
Fleet National Bank and LaSalle Bank National Association, as Documentation
Agents, and the Administrative Agent and (b) the Amended and Restated Guarantee
and Collateral Agreement dated as of August 2, 2002 (as amended, supplemented or
otherwise modified from time to time, the "Guarantee and Collateral Agreement"),
among the Grantors parties thereto and the Administrative Agent. Capitalized
terms used herein and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement, the Security Documents referred to therein
or the Uniform Commercial Code, as applicable.

             The undersigned, a financial officer of the Borrower, hereby
certifies to the Administrative Agent and each other Secured Party as follows:

                              SECTION 1.    NAMES.

       (a)   The exact legal name of each Grantor, as such name appears in its
respective certificate of formation, is as follows:

       (b)   Set forth below is each other legal name each Grantor has had since
the Original Closing Date, together with the date of the relevant change:

       (c)   Except as set forth in Schedule 1 hereto, no Grantor has changed
its identity or corporate structure in any way since the Original Closing Date.
Changes in identity or corporate structure would include mergers, consolidations
and acquisitions, as well as any change in the form, nature or jurisdiction of
corporate organization. If any such change has occurred, include in Schedule 1
the information required by Sections 1 and 2 of this certificate as to each
acquired or constituent party to a merger or consolidation.

       (d)   The following is a list of all other names (including trade names
or similar appellations) used by each Grantor or any of its divisions or other
business units in connection with the conduct of its business or the ownership
of its properties at any time since the Original Closing Date:

       (e)   Set forth below is the organizational identification number, if
any, issued by the jurisdiction of formation of each Grantor that is a
registered organization:

<PAGE>

                                                                               2

                                                            Organizational
            Grantor                                     Identification Number
            -------                                     ---------------------

       (f) Set forth below is the Federal Taxpayer Identification Number of each
Grantor:

                                                            Organizational
            Grantor                                     Identification Number
            -------                                     ---------------------

                         SECTION 2.    CURRENT LOCATIONS.

       (a) The chief executive office of each Grantor is located at the address
set forth opposite its name below:

        Grantor         Mailing Address         County        State
        -------         ---------------         ------        -----

       (b) Set forth below opposite the name of each Grantor are all locations
where such Grantor maintains any books or records relating to any accounts
receivable or General Intangibles (with each location at which Chattel Paper, if
any, is kept being indicated by an "*"):

        Grantor         Mailing Address         County        State
        -------         ---------------         ------        -----

       (c) The jurisdiction of formation of each Grantor that is a registered
organization is set forth opposite its name below:

        Grantor                                 Jurisdiction
        -------                                 ------------

                            SECTION 3.   ADVANCES.

           Attached hereto as Schedule 2 is (a) a true and correct list of all
advances made by Holdings, the Borrower or any Subsidiary of the Borrower to any
of Holdings, the Borrower or any Subsidiary of the Borrower (other than those
identified on Schedule 4), with notations indicating those advances which are or
will be on and after the date hereof evidenced by one or more intercompany notes
pledged to the Administrative Agent under the Guarantee and

<PAGE>

                                                                               3

Collateral Agreement and (b) a true and correct list of all unpaid intercompany
transfers of goods sold and delivered by or to Holdings, the Borrower or any
Subsidiary of the Borrower.

                      SECTION 4.      DEPOSIT ACCOUNTS.

           Attached hereto as Schedule 3 is a true and correct list of deposit
accounts maintained by each Grantor, including the name and address of the
depositary institution, the type of account, and the account number.

<PAGE>

                                                                               4

                  IN WITNESS WHEREOF, the undersigned has duly executed this
certificate on August 2, 2002.

                          ALLIANCE LAUNDRY SYSTEMS LLC

                                  By

                                      ____________________________________
                                      Name:
                                      Title:

<PAGE>

                                                                               5

                                   SCHEDULE 1

                          Changes in Corporate Identity

<PAGE>

                                                                               6

                                   SCHEDULE 2

                                    Advances

<PAGE>

                                                                               7

                                   SCHEDULE 3

                                Deposit Accounts

<PAGE>

                                                                      Schedule 1

                         NOTICE ADDRESSES OF GUARANTORS

Alliance Laundry Holdings LLC
PO Box 990
Shepard Street
Ripon, WI 54971-0990
Atten: Chief Financial Officer

Alliance Laundry Systems LLC
PO Box 990
Shepard Street
Ripon, WI 54971-0990
Atten: Chief Financial Officer

Alliance Laundry Corporation
PO Box 990
Shepard Street
Ripon, WI 54971-0990
Atten: Chief Financial Officer

<PAGE>

                                                                      Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

1.       Promissory Notes Issued to Grantors

The following executives issued promissory notes to Holdings in connection with
the May 1998 merger of RCL Acquisitions, L.L.C. with and into Raytheon
Commercial Laundry LLC. The value of the promissory notes to Holdings as of May
2002 are as follows:

Management Executive          Loan Amt.

..    Thomas L'Esperance       $905,974
..    Jeffrey Brothers         $154,957
..    R. Scott Gaster          $165,918
..    Bruce Rounds             $150,800
..    Robert Wallace           $127,871
..    Lee Wilson               $ 58,581
..    Richard Casey            $ 47,825
..    Jay McDonald             $ 45,928
..    Kim Shady                $ 37,840
..    Alberto Rios             $ 41,687
..    Patti Andresen-Shew      $ 40,947

Note:  Interest is calculated on a monthly basis

2.       Pledged Securities

Alliance Laundry Holdings LLC
..    Alliance Laundry Systems LLC (100%)

Alliance Laundry Systems LLC
..    Alliance Laundry Corporation (100%)
..    Alliance Laundry Receivables Warehouse LLC (100%)
..    Alliance Commercial Appliances Finance LLC (100%)
..    Alliance Laundry Equipment Receivables LLC (100%)
..    Alliance Laundry S.A. (65%)

<PAGE>

                                                                      Schedule 3

                            FILINGS AND OTHER ACTIONS
                     REQUIRED TO PERFECT SECURITY INTERESTS

                      Actions with respect to Pledged Stock

Certificate representing Capital Stock of Alliance Laundry Corporation will be
delivered, together with endorsements executed in blank. Certificates
representing 65% of Alliance Laundry S.A. will be delivered, together with
endorsements executed in blank. UCC filings will be done with regard to the
membership interests of Alliance Laundry Systems LLC, Alliance Laundry
Receivables Warehouse LLC, Alliance Commercial Appliances Finance LLC and
Alliance Laundry Equipment Receivables LLC.

                         Uniform Commercial Code Filings

UCC filings will be done with regard to all remaining collateral.

<PAGE>

                                                                      Schedule 4

      JURISDICTION OF ORGANIZATION, LOCATION OF CHIEF EXECUTIVE OFFICE AND
                             IDENTIFICATION NUMBER

<TABLE>
<CAPTION>
     Grantor              Jurisdiction of       Location of Chief            Identification Number
     -------              ---------------       -----------------            ---------------------
                          Organization          Executive Office
                          ------------          ----------------
<S>                       <C>                <C>                             <C>
 Alliance Laundry         Delaware               Shepard Street                   52-2055893
    Holdings LLC                             Ripon, Wisconsin 54971
 Alliance Laundry         Delaware               Shepard Street                   39-1927923
    Systems LLC                              Ripon, Wisconsin 54971
 Alliance Laundry         Delaware               Shepard Street                   39-1928505
    Corporation                              Ripon, Wisconsin 54971
</TABLE>

<PAGE>

                                                                      Schedule 5

                       LOCATION OF INVENTORY AND EQUIPMENT

                  Grantor                                          Locations
                  -------                                          ---------

Alliance Laundry Holdings LLC                         None

Alliance Laundry Systems LLC                          Shepard Street
                                                      Ripon, WI  54971

                                                      3595 Industrial Park Drive
                                                      Marianna, Florida  32446

Alliance Laundry Corporation                          None

Various customer, supplier locations and space leased in various warehouses are
used for inventory storage by Alliance Laundry Systems LLC. These facilities are
in the following locations:

              Richmond, British Columbia
              Gardena, California
              Atlanta, Georgia
              Charlotte, North Carolina
              Woodale, Illinois
              Chester, Virginia
              Perth, Australia
              Melbourne, Australia
              Sydney, Australia
              Brisbane, Australia
              Adelaide, Australia
              Dothan, Alabama
              Arab, Alabama (Hunt Manufacturing)

<PAGE>
                                                                      Schedule 6

                        COPYRIGHTS AND COPYRIGHT LICENSES

                       There are no Registered Copyrights

                           PATENTS AND PATENT LICENSES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                         Alliance Laundry Systems LLC                             PATENTS
--------------------------------------------------------------------------------------------------------------------------
Country             Inventor(s)     Patent          Issue                           Title
                                      No.           Date
--------------------------------------------------------------------------------------------------------------------------
<S>             <C>                 <C>           <C>         <C>
Taiwan                              57509         01/12/91
--------------------------------------------------------------------------------------------------------------------------
EP              Hossfield           0573166
--------------------------------------------------------------------------------------------------------------------------
AU              Hossfield           660082        09/26/95
--------------------------------------------------------------------------------------------------------------------------
AU              Hossfield et al.    660084        09/26/95
--------------------------------------------------------------------------------------------------------------------------
CA              Altnau              1,111,669     11/03/81
--------------------------------------------------------------------------------------------------------------------------
U.S.            Manthei             4,240,277     12/23/80    2- pc. Fabric Softener Dispenser  - (screws together)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Altnau              4,250,724     02/17/81    Suspension System for Tub Ass'y  (CW Washer)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Altnau              4,289,320     09/15/81    Face Seal for Washer Pump & Water Pump
--------------------------------------------------------------------------------------------------------------------------
U.S.            Clawson et al.      4,669,199     06/02/87    Clothes Dryer w/ Lint Incinerator (lint burning dryer)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Coates et al.       4,798,424     01/17/89    Reversible Control Console (1987 Line Plastic Hood)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Oberley             4,843,745     07/04/89    Press & Method of Making Same
--------------------------------------------------------------------------------------------------------------------------
U.S.            Putnam              4,860,791     08/29/89    Strain Relief Clamp for Drain Hose - Washers
--------------------------------------------------------------------------------------------------------------------------
U.S.            Putnam              4,934,559     06/19/90    Door Bar Handle for Glass Door of Clothes Dryer
--------------------------------------------------------------------------------------------------------------------------
U.S.            Altnau              4,936,421     06/26/90    Conical Spring Braking Mechanism  (8-Pc. Brake)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Adamski et al.      4,982,606     01/08/91    Fluid Level Sensor & Controller
--------------------------------------------------------------------------------------------------------------------------
U.S.            Clawson et al.      5,005,383     04/09/91    Washing Machine Motor with High Rotor Resistance
--------------------------------------------------------------------------------------------------------------------------
U.S.            Wolfe et al.        5,007,254     04/16/91    Additive Fluid Viewing (indicator of liquid detergent)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Oberley et al.      5,012,962     05/07/91    Indexing System for a Mannequin Carriage w/ fluid
--------------------------------------------------------------------------------------------------------------------------
U.S.            Altnau, Sr.         5,018,372     05/28/91    Lint Filter ( plastic - hidden under spin tub)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Hossfield et al.    5,033,278     07/23/91    Brake & Release Mechanism (Discriminator NGHW)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Altnau, Sr.         5,044,178     09/03/91    Rinse Aid Dispenser (3 pc. compact - snaps together)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Ferguson et al.     5,046,336     09/10/91    Battery Powered Dispenser
----------------------------------- -------------------------------------------------------------------------------------
U.S.            Wild                5,050,407     09/24/91    Combination Unbalanced Load & Lid Switch Ass'y
--------------------------------------------------------------------------------------------------------------------------
U.S             Gill et al.         5,065,535     11/19/91    Indexing System for a Rotary Garment Press
--------------------------------------------------------------------------------------------------------------------------
U.S.            Quinn               5,092,141     03/03/92    Additive Fluid Dispenser Nozzle
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow             5,101,645     04/07/92    Suspension System (Pivot & Translation Springs)
--------------------------------------------------------------------------------------------------------------------------
U.S.            Bisplinghoff et     5,117,658     06/02/92    Improved Out-of-Balance Performance Washer
                al.
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                         Alliance Laundry Systems LLC                             PATENTS

--------------------------------------------------------------------------------------------------------------------------
Country             Inventor(s)     Patent          Issue                           Title
                                      No.           Date
--------------------------------------------------------------------------------------------------------------------------
<S>             <C>                 <C>           <C>         <C>
U.S.            Bisplinghoff et     5,119,645     06/09/92    Washing Machine w/ Improved Suspension & Manuf
                al.
--------------------------------------------------------------------------------------------------------------------------
U.S.            Adamski et al.      5,211,037     05/18/93    Controller w/ Alternating Reversing Drive Motor
--------------------------------------------------------------------------------------------------------------------------
U.S.            Hossfield et al.    5,249,440     10/05/93    Washing Machine ("Space-Frame Suspension")
--------------------------------------------------------------------------------------------------------------------------
U.S.            Hossfield           5,257,516     11/02/93    Washing Machine
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow             5,361,439     11/08/94    Method & Apparatus For Spinning & Draining
--------------------------------------------------------------------------------------------------------------------------
U.S.            Ferguson et al.     5,392,891     02/28/95    Discrimination of Coins Based on Metal Content
--------------------------------------------------------------------------------------------------------------------------
U.S.            Hossfield et al.    5,404,986     04/11/95    Method & Apparatus for Discriminating Coins
--------------------------------------------------------------------------------------------------------------------------
U.S.            Quandt et al.       5,524,362     06/11/96    Method of Wire Harness to Select Controller Mode
--------------------------------------------------------------------------------------------------------------------------
U.S.            Hossfield et al.    5,684,597     11/04/97    Method & Device for Coin Diameter Discrimination
--------------------------------------------------------------------------------------------------------------------------
U.S             Mohan et al.        5,692,326     12/02/97    Shirt Pressing Apparatus w/ Moveable Cuff
--------------------------------------------------------------------------------------------------------------------------
U.S.            White et al.        5,782,112     07/21/98    Auto Injection Siphon Break for Washers
--------------------------------------------------------------------------------------------------------------------------
U.S.            Ferragut            5,822,819     10/20/98    Ultrasonic Water Level Detection System
--------------------------------------------------------------------------------------------------------------------------
U.S.            Roberts et al.      5,850,747     12/22/98    Pressure Vessel Temperat Compensating Compressor
--------------------------------------------------------------------------------------------------------------------------
U.S.            Moline et al.       5,879,036     03/09/99    Door Interlock for an Appliance
--------------------------------------------------------------------------------------------------------------------------
U.S.            Harris              5,883,802     03/16/99    Energy Usage Controller for an Appliance
--------------------------------------------------------------------------------------------------------------------------
U.S.            Kegler et al.       5,946,945     09/07/99    Frame for High Pressure Liquid Gas Storage
--------------------------------------------------------------------------------------------------------------------------
U.S.            Mohan et al.        5,970,637     10/26/99    Automatic Shirt Pressing Systems w/ Vacuum Syst
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow             6,012,307     01/11/00    Controlled Agitation System for Drycleaner
--------------------------------------------------------------------------------------------------------------------------
U.S.            Walker              6,021,652     02/08/00    Control Valve w/ Valve Member Position Sensor
--------------------------------------------------------------------------------------------------------------------------
U.S.            Walker              6,050,112     04/18/00    Detection of Liquid Level in Sealed Storage Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S.            Harris              6,053,541     04/25/00    Auto Safety Lock
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow et al.      6,070,440     06/06/00    Space-Saving Door Opening / Closing Apparatus
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow et al.      6,085,935     07/11/00    Quick-Opening Door Apparatus for Filter
--------------------------------------------------------------------------------------------------------------------------
U.S.            Roberts et al.      6,182,318     02/06/01    Temperature Compensating Compressor
--------------------------------------------------------------------------------------------------------------------------
U.S.            Kegler et al.       6,233,980     05/22/01    Door w/ Self-Aligning, Stress Reduced Locking Lugs
--------------------------------------------------------------------------------------------------------------------------
U.S.            Harris et al.       6,237,373     05/29/01    Self-Contained Front Access Lint Panel for Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow et al.      6,237,374     05/29/01    Space-Saving Door Opening Apparatus for Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S.            McAllister et al.   6,324,771     12/04/01    Perforated Baffle Ribs for Temp. Limiting Air Flow
--------------------------------------------------------------------------------------------------------------------------
U.S.            Kegler et al.       6,334,340     01/01/02    Convertible Installation Configuration for CO\\2\\ Dry
--------------------------------------------------------------------------------------------------------------------------
U.S.            Malchow             6,360,392     03/26/02    Improved Agitation System for CO\\2\\ Drycleaner
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

August 1, 2002

<PAGE>

                        TRADEMARKS AND TRADEMARK LICENSES

                     Intellectual Property Owned by Alliance

                          Registered Foreign Trademarks

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
    Country                 Trademark                    Reg. No.                  Reg. Date              Ren. Due
    -------                 ---------                    --------                  ---------              --------
------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>                             <C>                       <C>                    <C>
------------------------------------------------------------------------------------------------------------------------------
Argentina             SPEED QUEEN                     1421851                   2/26/93                2/26/03
------------------------------------------------------------------------------------------------------------------------------
                      LAUNDROMAT                      1313192                   10/3/88                10/3/98
------------------------------------------------------------------------------------------------------------------------------
                      MARATHON                        1743496                   1/6/99                 7/6/99
------------------------------------------------------------------------------------------------------------------------------
                      DESIGN                          1419656                   2/26/93                2/26/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1458845                   7/30/93                7/30/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1487563                   11/30/93               11/30/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1487564                   11/30/93               11/30/03
------------------------------------------------------------------------------------------------------------------------------
                      LR                              1487565                   11/30/93               11/30/03
------------------------------------------------------------------------------------------------------------------------------
                      DESIGN                          1487566                   11/30/93               11/30/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465733                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465734                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465735                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465736                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465737                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465738                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465739                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1465741                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      PLANCHERAP                      1465742                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      PLANCHERAP                      1465743                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      PLANCHERAP                      1465744                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1466115                   8/31/93                8/31/03
------------------------------------------------------------------------------------------------------------------------------
                      VIDEO RAP                       1518033                   4/29/94                4/29/04
------------------------------------------------------------------------------------------------------------------------------
                      NOTI RAP                        1518034                   4/29/94                4/29/04
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1498150                   12/1/93                12/1/03
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1545670                   11/30/94               11/30/04
------------------------------------------------------------------------------------------------------------------------------
                      SUPERAP                         1563597                   5/31/95                5/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1563933                   5/31/95                5/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551423                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551424                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551425                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551426                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551427                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551428                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551429                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551430                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551458                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1551459                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
    Country                 Trademark                    Reg. No.                  Reg. Date              Ren. Due
    -------                 ---------                    --------                  ---------              --------
------------------------------------------------------------------------------------------------------------------------
<S>                   <C>                             <C>                       <C>                    <C>
                      LAVERAP                         1551460                   1/31/95                1/31/05
------------------------------------------------------------------------------------------------------------------------
                      DRYMAT                          1331040                   2/8/89                 2/8/99
------------------------------------------------------------------------------------------------------------------------
                      ANERA                           1419656                                          2/26/03
------------------------------------------------------------------------------------------------------------------------
                      SANI RAP                        1933272                   Abandoned
------------------------------------------------------------------------------------------------------------------------
                      LAVE RAP                        1563597                                          5/31/07
------------------------------------------------------------------------------------------------------------------------
                      (ANEXA)                         1567433                                          7/4/05
------------------------------------------------------------------------------------------------------------------------
                      (ANEXA)                         1567475                                          7/4/05
------------------------------------------------------------------------------------------------------------------------
                      (ANEXA)                         1567477                                          7/4/05
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        2047214
------------------------------------------------------------------------------------------------------------------------
                      EXTRARAP                        165051
------------------------------------------------------------------------------------------------------------------------
                      LAVE RAP (FOAM)                 1742898                                          7/2/09
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         1742903                                          7/2/09
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP (FOAM)                  2055048
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        2055059
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        2054990
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        2055060
------------------------------------------------------------------------------------------------------------------------
                      LAVE RAP                        1753763                                          9/23/99
------------------------------------------------------------------------------------------------------------------------
                      LAUNDROMAT                      2084175/1237907
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         2086293                                          8/28/10
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         2086294                                          8/28/10
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         2086295                                          8/28/10
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         2086296                                          8/28/10
------------------------------------------------------------------------------------------------------------------------
                      LAVERAP                         2086297                                          8/28/10
------------------------------------------------------------------------------------------------------------------------
Australia             HUEBSCH                         A324984                   12/12/99               12/12/99
------------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     A124753                   9/12/97                9/12/97
------------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          A626329                   3/29/94                3/29/01
------------------------------------------------------------------------------------------------------------------------
Austria               SPEED QUEEN                     58023                     X                      9/30/06
------------------------------------------------------------------------------------------------------------------------
                      AJAX                            61629                     5/31/98                5/31/08
------------------------------------------------------------------------------------------------------------------------
Bahrain               SPEED QUEEN                     TM3733                                           11/24/06
------------------------------------------------------------------------------------------------------------------------
Benelux               HUEBSCH                         357323                                           12/12/08
------------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     44314                                            6/24/09
------------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          456960                                           3/6/09
------------------------------------------------------------------------------------------------------------------------
                      AJAX                            436924                                           10/9/07
------------------------------------------------------------------------------------------------------------------------
Brazil                SPEED QUEEN                     003320952                 10/21/86               10/21/96
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP & design               820107778                 Opp-Apl fld
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP & design               820107760                 Opp-Neg Wdrwal
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624462
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624489                 Rej-appl fld
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        820107727                 Opp-apl fld
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624497                 Rej-aplf fld
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624470
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624454
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        819624446                 1/27/97
------------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        820107751                 Opp-Neg.Wdrwal
------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
    Country                 Trademark                    Reg. No.                  Reg. Date              Ren. Due
    -------                 ---------                    --------                  ---------              --------
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                             <C>                       <C>                    <C>
                      LAVE-RAP                        820107735                 Opp-apl fld
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        820107743                 Opp-neg. Wdrwal
--------------------------------------------------------------------------------------------------------------------
                      HUEBSCH ORIG.                   816198136
--------------------------------------------------------------------------------------------------------------------
Canada                HUEBSCH                         280137                    6/10/98                6/10/13
--------------------------------------------------------------------------------------------------------------------
                      RSPC                            278487                    3/31/98                3/31/13
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            293,609                   8/3/99                 8/3/14
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          367233                    3/23/90                3/23/05
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     389438                    7/27/92                7/27/02
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     342415/546666             8/24/99                8/24/09
--------------------------------------------------------------------------------------------------------------------
                      LAVE RAP                        504.629
--------------------------------------------------------------------------------------------------------------------
                      LAVE RAP                        504.637
--------------------------------------------------------------------------------------------------------------------
                      LAVE RAP                        504.638
--------------------------------------------------------------------------------------------------------------------
China                 SPEED QUEEN                     206349                    3/30/94                3/29/04
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     381326                    3/30/94                3/29/04
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN (Chinese)           930161                    1/14/97                1/13/07
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            856311                                           7/20/06
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          860359                    8/7/96                 7/6/06
--------------------------------------------------------------------------------------------------------------------
Colombia              SPEED QUEEN                     70027                     11/5/99                11/5/99
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        161576                                           8/11/04
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        197525                                           12/18/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        197709                                           12/18/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        198326                                           12/18/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        197523                                           12/18/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        197524                                           12/18/07
--------------------------------------------------------------------------------------------------------------------
Costa Rica            SPEED QUEEN                     34366/2302                11/2/91                11/2/01
--------------------------------------------------------------------------------------------------------------------
Denmark               HUEBSCH                         3122/1980                                        8/22/00
--------------------------------------------------------------------------------------------------------------------
Egypt                 SPEED QUEEN                     52262                     10/5/86                10/5/96
--------------------------------------------------------------------------------------------------------------------
Finland               UNIMAC                          142830                    3/5/96                 3/5/06
--------------------------------------------------------------------------------------------------------------------
France                HUEBSCH                         1498023                   11/10/98               11/10/08
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     1494832                   10/21/98               10/20/98
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          1524684                   4/14/99                4/13/99
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            94549085                                         12/13/04
--------------------------------------------------------------------------------------------------------------------
                      AJAX (EAGLE)                    94549086                                         12/13/04
--------------------------------------------------------------------------------------------------------------------
Germany               HUEBSCH                         DD653588                  9/28/00                9/28/00
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC STYLIZED                 1145143                   3/1/99                 2/28/09
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            1129715                   10/31/97               10/31/07
--------------------------------------------------------------------------------------------------------------------
E. Germany            SPEED QUEEN                     653886                    9/28/90                9/28/00
--------------------------------------------------------------------------------------------------------------------
W. Germany            SPEED QUEEN                     772352                    6/30/91                6/30/01
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            1,129,715                                        10/9/07
--------------------------------------------------------------------------------------------------------------------
Greece                SPEED QUEEN                     59642                     9/8/97                 9/8/97
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            32,296                                           9/29/04
--------------------------------------------------------------------------------------------------------------------
Guatemala             SPEED QUEEN                     17951                     2/28/97                2/27/97
--------------------------------------------------------------------------------------------------------------------
Honduras              SPEED QUEEN                     15680                     12/14/98               12/14/08
--------------------------------------------------------------------------------------------------------------------
Hong Kong             SPEED QUEEN                     435/1967                  7/9/87                 7/9/01
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
    Country                 Trademark                    Reg. No.                  Reg. Date              Ren. Due
    -------                 ---------                    --------                  ---------              --------
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                             <C>                       <C>                    <C>
                      AJAX                            305 OF 1965                                      9/29/13
--------------------------------------------------------------------------------------------------------------------
India                 SPEED QUEEN                     405479                    5/2/97                 5/12/04
--------------------------------------------------------------------------------------------------------------------
Indonesia             SPEED QUEEN                     210552/361875             11/3/96                5/3/96
--------------------------------------------------------------------------------------------------------------------
Ireland               SPEED QUEEN                     B70745                    6/27/87                6/27/01
--------------------------------------------------------------------------------------------------------------------
Israel                SPEED QUEEN                     34862                     1/12/93                1/12/07
--------------------------------------------------------------------------------------------------------------------
Italy                 SPEED QUEEN                     439969                    6/27/81                6/27/01
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          601400                    9/25/90                9/25/00
--------------------------------------------------------------------------------------------------------------------
Jamaica               SPEED QUEEN                     B15813                    6/18/92                6/18/06
--------------------------------------------------------------------------------------------------------------------
Japan                 HUEBSCH & KATAKANA              700440                    3/3/96                 3/3/06
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     718776                    9/5/96                 9/5/06
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     1351949                   10/31/88               10/31/98
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            607,471                                          3/25/03
--------------------------------------------------------------------------------------------------------------------
Jordan                SPEED QUEEN                     14457                     3/9/98                 3/9/98
--------------------------------------------------------------------------------------------------------------------
Korea                 HUEBSCH                         76759                     6/20/91                6/19/01
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          248774                    9/4/92                 9/3/02
--------------------------------------------------------------------------------------------------------------------
Kuwait                SPEED QUEEN                     5435                      11/8/93                1/7/03
--------------------------------------------------------------------------------------------------------------------
Malaya                HUEBSCH                         M/89205                   6/8/88                 1/8/02
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     M/88687                   11/19/87               11/19/01
--------------------------------------------------------------------------------------------------------------------
Mexico                HUEBSCH                         289105                    12/8/91                12/8/01
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     240836                    4/30/94                4/30/04
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        552730                    12/10/96               12/10/06
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        539620                    12/10/96               12/10/06
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        540644                    12/10/96               12/10/06
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        539619                    12/10/96               12/10/06
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        539618                    12/10/96               12/10/06
--------------------------------------------------------------------------------------------------------------------
                      LAVERAP & DESIGN                555159                    6/10/97                6/10/07
--------------------------------------------------------------------------------------------------------------------
                      LAVERAP & DESIGN                555676                    6/10/97                60/10/07
--------------------------------------------------------------------------------------------------------------------
                      LAVERAP & DESIGN                553905                    6/10/97                6/10/07
--------------------------------------------------------------------------------------------------------------------
                      LAVERAP & DESIGN                553906                    6/10/97                6/10/07
--------------------------------------------------------------------------------------------------------------------
                      LAVERAP & DESIGN                553907                    6/10/97                6/10/97
--------------------------------------------------------------------------------------------------------------------
                      AJAX                            505411                    4/16/01
--------------------------------------------------------------------------------------------------------------------
                      CARDMATE                        647821                    12/16/99               12/16/09
--------------------------------------------------------------------------------------------------------------------
New Zealand           SPEED QUEEN                     37503                     4/5/95                 4/5/09
--------------------------------------------------------------------------------------------------------------------
                      UNIMAC                          235530                    3/28/94                3/28/01
--------------------------------------------------------------------------------------------------------------------
Nigeria               SPEED QUEEN                     31429                     9/1/84                 9/1/98
--------------------------------------------------------------------------------------------------------------------
OAPI                  SPEED QUEEN                     18899                     11/5/77                11/5/97
--------------------------------------------------------------------------------------------------------------------
Pakistan              SPEED QUEEN                     110098 (App.)             3/19/91                3/19/98
--------------------------------------------------------------------------------------------------------------------
                      SPEED QUEEN                     109730 (App.)             2/20/91                2/20/98
--------------------------------------------------------------------------------------------------------------------
Panama                SPEED QUEEN                     27361                     10/20/91               10/20/01
--------------------------------------------------------------------------------------------------------------------
Paraguay              SPEED QUEEN                     149609                    12/31/91               12/31/01
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        198009                    12/17/97               12/17/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        198008                    12/17/97               12/17/07
--------------------------------------------------------------------------------------------------------------------
                      LAVE-RAP                        198007                    12/17/97               12/17/07
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
  Country              Trademark                        Reg. No.                   Reg. Date               Ren. Due
  -------              ---------                        --------                   ---------               --------
----------------------------------------------------------------------------------------------------------------------------------
  <S>                  <C>                              <C>                       <C>                      <C>
                       LAVE-RAP                         199.509                    1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         199.510                    1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         196862                     9/8/97                  12/31/07
----------------------------------------------------------------------------------------------------------------------------------
Peru                   SPEED QUEEN                      10927                      11/7/92                 11/7/02
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         10416                      4/29/92                 4/29/02
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         34218                      3/18/97                 3/18/07
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         34117                      3/18/97                 3/18/07
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         34782                      4/4/97                  4/4/07
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         10469                      4/21/97                 4/21/07
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         10447                      4/17/97                 4/17/07
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP & DESIGN                041468                     1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP & DESIGN                041469                     1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP & DESIGN                041581                     1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP & DESIGN                012825                     1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP & DESIGN                012826                     1/6/98                  1/6/08
----------------------------------------------------------------------------------------------------------------------------------
Philippines            SPEED QUEEN                      13931                      6/6/88                  6/6/08
----------------------------------------------------------------------------------------------------------------------------------
Sabah                  HUEBSCH                          S/27305                    1/8/88                  1/8/02
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      S/27077                    11/19/87                11/19/01
----------------------------------------------------------------------------------------------------------------------------------
Sarawak                HUEBSCH                          SAR/22596                  1/17/88                 1/17/02
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      SAR/82235                  11/21/87                11/21/01
----------------------------------------------------------------------------------------------------------------------------------
Saudi Arabia           SPEED QUEEN                      47/56                      10/8/91                 6/18/01
----------------------------------------------------------------------------------------------------------------------------------
                       HUEBSCH Originators              243/62                     3/30/91                 12/10/00
----------------------------------------------------------------------------------------------------------------------------------
Singapore              HUEBSCH                          B54/81                     1/6/88                  1/6/02
----------------------------------------------------------------------------------------------------------------------------------
South Africa           HUEBSCH                          B6176/78                   12/27/88                12/27/98
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      6723/83                    9/20/93                 9/20/03
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      461/39/1                   4/15/97                 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      461/39/2                   4/15/97                 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      461/39/3                   4/15/97                 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
                       AJAX                             64/3796                                            9/29/04
----------------------------------------------------------------------------------------------------------------------------------
SWA (Namibia)          SPEED QUEEN                      0150/84 (SWA)              3/16/94                 3/6/04
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      0151/84 (SWA)              3/6/94                  3/6/04
----------------------------------------------------------------------------------------------------------------------------------
Spain                  SPEED QUEEN                      508897                     12/30/88                12/30/08
----------------------------------------------------------------------------------------------------------------------------------
                       UNIMAC                           1589365                    9/20/90                 9/20/00
----------------------------------------------------------------------------------------------------------------------------------
Switzerland            HUEBSCH                          306061                     8/18/80                 8/18/00
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      347773                     7/4/86                  7/4/06
----------------------------------------------------------------------------------------------------------------------------------
                       AJAX                             334,587                                            9/8/04
----------------------------------------------------------------------------------------------------------------------------------
                       UNIMAC                           391934                     7/30/91                 7/30/11
----------------------------------------------------------------------------------------------------------------------------------
Taiwan                 SPEED QUEEN                      479488                     3/16/90                 3/15/00
----------------------------------------------------------------------------------------------------------------------------------
Thailand               SPEED QUEEN                      115723/73167               12/24/90                12/23/00
----------------------------------------------------------------------------------------------------------------------------------
                       UNIMAC                           258130/KOR24124            12/29/93                12/29/03
----------------------------------------------------------------------------------------------------------------------------------
                       HUEBSCH                          115938/72996               12/24/90                12/23/00
----------------------------------------------------------------------------------------------------------------------------------
UAE                    SPEED QUEEN                      5112                       Pending                 1/15/04
----------------------------------------------------------------------------------------------------------------------------------
U.K.                   HUEBSCH                          B1106325                   12/14/85                12/14/99
----------------------------------------------------------------------------------------------------------------------------------
                       SPEED QUEEN                      B822545                    6/30/96                 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
  Country              Trademark                        Reg.No.                   Reg. Date                Ren. Due
  -------              ---------                        -------                   ---------                --------
----------------------------------------------------------------------------------------------------------------------------------
  <S>                  <C>                              <C>                       <C>                      <C>
                       UNIMAC                           1375639                    3/4/96                  3/4/06
----------------------------------------------------------------------------------------------------------------------------------
Uruguay                LAVE-RAP                         4722                       3/2/94                  3/2/04
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE-RAP                         291258
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE RAP                         291259                     9/15/99                 9/15/09
----------------------------------------------------------------------------------------------------------------------------------
                       LAVE RAP & DESIGN                291260
----------------------------------------------------------------------------------------------------------------------------------
Venezuala              SPEED QUEEN                      42880F                     Pending                 1/17/93
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

        US Registered Trademarks

<TABLE>
<CAPTION>
        -----------------------------------------------------------------------------------------------------
            TRADEMARK                       REG NO.                  GOODS
        -----------------------------------------------------------------------------------------------------
        <S>                                 <C>          <C>
        -----------------------------------------------------------------------------------------------------
        Registered Marks:(R)
        --------------------
        -----------------------------------------------------------------------------------------------------

        -----------------------------------------------------------------------------------------------------
        Ajax                                1500201
        -----------------------------------------------------------------------------------------------------
        Cardmate                            647821       Mag. & elect. Coded store-value
        -----------------------------------------------------------------------------------------------------
        Drystar                             01193008     Laundry Equipment
        -----------------------------------------------------------------------------------------------------
        Econ-O-Wash                         1201795      Laundry Equipment - Washers & Dryers
        -----------------------------------------------------------------------------------------------------
        Eversmooth                          1205146      Laundry Washing Machine Transmissions
        -----------------------------------------------------------------------------------------------------
        Fast Back                           863105
        -----------------------------------------------------------------------------------------------------
        Horizon                             2439774
        -----------------------------------------------------------------------------------------------------
        Huebsch                             00937549     Laundry Equipment
        -----------------------------------------------------------------------------------------------------
        Loadstar                            00845408     Drying Tumbler & Parts Therefor Huebsch
        -----------------------------------------------------------------------------------------------------
        Nofuss                              01199323     Laundry Washing Machines Lint Filters
        -----------------------------------------------------------------------------------------------------
        "Q" Stylized"                       00738991     Washers & Dryers
        -----------------------------------------------------------------------------------------------------
        Routemaster                         00847837     24 lb. Tumbler Dryers
        -----------------------------------------------------------------------------------------------------
        RSPC                                01268908     Parts and Accessories for Laundry Equipment
        -----------------------------------------------------------------------------------------------------
        Searchit                            2515079
        -----------------------------------------------------------------------------------------------------
        Speed Queen                         353190
        -----------------------------------------------------------------------------------------------------
        Speed Queen                         765440
        -----------------------------------------------------------------------------------------------------
        UltraDry                            2334735
        -----------------------------------------------------------------------------------------------------
        Unimac                              1479347
        -----------------------------------------------------------------------------------------------------
        Unimat                              1479346
        -----------------------------------------------------------------------------------------------------
        Uniwash                             1473932      Exchange System
        -----------------------------------------------------------------------------------------------------
        Vent-Pak                            861021       Exhaust System
        -----------------------------------------------------------------------------------------------------

        -----------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                      Schedule 7

                                    CONTRACTS

None.

<PAGE>

                                                                      Schedule 8

                              GOVERNMENT CONTRACTS

..    General Services Administration (U.S. Government entity) contract number
     GS-21F-97011 (awarded to solicitation number 6FES-B1-96-B102S) with
     Raytheon Appliances - Commercial Laundry, dated (by amendment PC01) May 1,
     1997

..    Air Force Non-Appropriated Funds ("AFNAF") Agreement, dated May 1, 1995,
     between Raytheon Appliances, Inc. and AFNAF (U.S. Government entity)

..    Agreement, dated April 10, 1995, between AAFES and Raytheon Appliances,
     Inc.

..    Agreement, dated June 16, 1992, between NEXCOM and RCL

..    U.S. Army Soldier Systems Command, Contract No. DAAN02-98-P-8319, with
     Raytheon Appliances - Commercial Laundry, dated February 13, 1998

<PAGE>

                                                                      Schedule 9

                             COMMERCIAL TORT CLAIMS

                                      None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]