Document:

Exhibit 10.38

 

EXECUTION VERSION

 

COLLATERAL
AGENCY AGREEMENT

 

by and among

 

BUILDING
MATERIALS CORPORATION OF AMERICA

 

AND EACH OTHER
GRANTOR A PARTY HERETO,

 

DEUTSCHE BANK
AG NEW YORK BRANCH, as Administrative Agent,

 

THE BANK OF
NEW YORK, as Trustee,

 

WILMINGTON
TRUST COMPANY, as Trustee,

 

and

 

DEUTSCHE BANK
TRUST COMPANY AMERICAS,

AS COLLATERAL AGENT

 

 

Dated as of February 22, 2007

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.  DEFINITIONS
  AND OTHER MATTERS.

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Definitions

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.2

  	
  Interpretation

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.  CERTAIN
  OBLIGATIONS AND DUTIES OF THE COLLATERAL AGENT AND THE GRANTORS; POWERS OF
  ATTORNEY

  	
  7 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Authorization to Execute Security Documents

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.2

  	
  Certain Representations and Warranties of the Collateral Agent

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.3

  	
  Actions

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.4

  	
  Additional Security Documents

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.5

  	
  Powers of Attorney to the Collateral Agent and to BMCA

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.6

  	
  Copies of Letters and Documents

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.7

  	
  Intercreditor Agreements

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.  EVENT
  OF DEFAULT; REMEDIES

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Event of Default

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.2

  	
  Remedies

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.3

  	
  Right to Initiate Judicial Proceedings, etc.

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.4

  	
  Appointment of a Receiver

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.5

  	
  Exercise of Powers

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.6

  	
  Remedies Not Exclusive

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.7

  	
  Limitation on Collateral Agent’s Duties in Respect of Collateral

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.8

  	
  Limitation by Law

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.9

  	
  Absolute Rights of the Beneficiaries

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.  COLLATERAL
  ACCOUNT; APPLICATION OF MONEYS

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  The Collateral Account

  	
  13

  

 

 

	
   

  	
  Section 4.2

  	
  Application of Moneys

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.  AGREEMENTS
  WITH THE COLLATERAL AGENT

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Delivery of Documents

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
  Information as to Secured Parties

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.3

  	
  Compensation and Expenses

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.4

  	
  Stamp and Other Similar Taxes

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.5

  	
  Filing Fees, Excise Taxes, etc.

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.6

  	
  Indemnification

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.7

  	
  Further Assurances

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.  COLLATERAL
  AGENT

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Acceptance of Duties

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
  Exculpatory Provisions

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.3

  	
  Delegation of Duties; Appointment of Administrative Agent as
  Sub-Agent

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.4

  	
  Reliance by Collateral Agent

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.5

  	
  Limitations on Duties of the Collateral Agent

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.6

  	
  Moneys Held By Collateral Agent

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.7

  	
  Resignation and Removal of the Collateral Agent

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.8

  	
  Status of Successors to the Collateral Agent

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.9

  	
  Merger of the Collateral Agent

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10

  	
  Additional Co-Collateral Agents; Separate Collateral Agents

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.  RELEASE
  OF COLLATERAL

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  Conditions to Release of Collateral

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.2

  	
  Actions Following Release of the Collateral

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.  AGREEMENTS
  AMONG SECURED PARTIES

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Other Agreements Among Secured Party

  	
  26

  

 

ii

 

	
   

  	
  Section 8.2

  	
  Payment of Collateral Agent’s Fees

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.3

  	
  Invalidation of Payments

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.  OTHER
  PROVISIONS

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.1

  	
  Amendments, Supplements and Waivers

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.2

  	
  Notices

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.3

  	
  Severability

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.4

  	
  Dealings with the Grantors

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.5

  	
  Claims Against the Collateral Agent

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.6

  	
  Binding Effect

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.7

  	
  Conflict with Other Agreements

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.8

  	
  Governing Law

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.9

  	
  Counterparts

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.10

  	
  Consent To Jurisdiction

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.11

  	
  Waiver of Jury Trial

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.12

  	
  USA PATRIOT Act

  	
  29

  

 

iii

 

COLLATERAL
AGENCY AGREEMENT

 

COLLATERAL
AGENCY AGREEMENT (this “Agreement”),
dated as of February 22, 2007 by and among BUILDING MATERIALS CORPORATION
OF AMERICA, a Delaware corporation (“BMCA”
or the “Company”), each Subsidiary
of BMCA a party hereto, DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative
Agent under the Credit Agreement (as hereinafter defined), THE BANK OF NEW
YORK, as trustee under the 2007 Notes Indenture and the 2008 Notes Indenture
(each as hereinafter defined), WILMINGTON TRUST COMPANY, as trustee under the 2014
Notes Indenture (as hereinafter defined) and DEUTSCHE BANK TRUST COMPANY
AMERICAS (“DBTCA”), as collateral agent for
the Secured Parties (as hereinafter defined) and in such capacity, together
with any successors and assigns (the “Collateral
Agent”).

 

(1) The Company and certain of its Subsidiaries
have entered into a Term Loan Agreement dated as of February 22, 2007 (as
amended, restated, supplemented, waived or otherwise modified, refinanced or
replaced from time to time, the “Credit Agreement”)
with the Lenders and the Agents (each as defined therein).

 

(2) The Company is a party to the Revolving
Credit Agreement dated as of February 22, 2007 (as amended, restated,
supplemented, waived, or otherwise modified, refinanced or replaced from time
to time, the “Revolving Credit Agreement”),
among the Company and certain of its Subsidiaries, the lender parties party
thereto from time to time, Deutsche Bank AG New York Branch, as collateral
monitoring agent and administrative agent, swingline lender and letter of
credit issuer, Bear Stearns & Co. Inc., as syndication agent, J.P.
Morgan Securities Inc., as documentation agent, and Deutsche Bank Securities
Inc., Bear Stearns & Co. Inc. and J.P. Morgan Securities Inc., as
joint lead arrangers and joint book managers. 
Proceeds from the Revolving Credit Agreement are being used, among other
things, to Refinance indebtedness outstanding under the Amended and Restated
Credit Agreement (the “Existing Credit Agreement”)
dated as of September 28, 2006 among BMCA, the banks, financial
institutions and other institutional lenders party thereto, Citicorp USA, Inc.,
as administrative agent and collateral monitoring agent.

 

(3) The Company is party to (i) an indenture
dated as of October 20, 1997 (as amended, restated, supplemented, waived
or otherwise modified, refinanced or replaced from time to time, the “2007 Notes Indenture”), among the Company, the guarantors
identified therein and The Bank of New York, as trustee, pursuant to which
certain 8% senior notes due 2007 (the “2007 Notes”)
were issued; (ii) an indenture dated as of December 3, 1998 (as
amended, restated, supplemented, waived or otherwise modified, refinanced or
replaced from time to time, the “2008 Notes Indenture”),
among the Company, the guarantors identified therein and the Bank of New York,
as trustee, pursuant to which certain 8% senior notes due 2008 (the “2008 Notes”) were issued; and (iii) an indenture dated
as of July 26, 2004 (as amended, restated, supplemented, waived, or
otherwise modified, refinanced or replaced from time to time,  the “2014 Notes Indenture”
and together with the 2007 Notes Indenture and the 2008 Notes Indenture, the “Existing Indentures”) among the Company, the guarantors
identified therein and Wilmington Trust Company, as trustee, pursuant to which
certain 7.75% senior notes (the “2014 Notes” and
together with the 2007 Notes and the 2008 Notes, the “Existing
Notes”) were issued.

 

 

(4) The administrative agent under the Existing
Credit Agreement together with the Notes Trustees (as defined herein), BMCA and
certain of its subsidiaries, Citibank N.A., as collateral agent, and the Note
Trustees (as defined below) were party to an Amended and Restated Collateral
Agent Agreement dated July 9, 2003 (as amended), which governed the rights
of the parties thereto with respect to certain of the Collateral.  In connection with the refinancing of the
Existing Credit Agreement, the parties hereto enter into this Agreement.

 

(5) Terms defined in the Credit Agreement and not
otherwise defined in this Agreement are used in this Agreement as defined in
the Credit Agreement.  Further, unless
otherwise defined in this Agreement or in the Credit Agreement, terms defined
in Article 8 or 9 of the UCC (as defined below) are used in this Agreement
as such terms are defined in such Article 8 or 9.  “UCC” means the
Uniform Commercial Code as in effect from time to time in the State of New
York.

 

COLLATERAL
AGENCY:

 

To
secure the payment, observance and performance of the Secured Debt (as
hereinafter defined) and in consideration of the premises and the mutual
agreements set forth herein, the Collateral Agent does hereby acknowledge and
accept that it holds on behalf of and for the Secured Parties, to the extent
actually received as Collateral Agent, all of the following (and each Grantor
does hereby consent thereto):

 

(A)          the Security Agreement and the Mortgages and the Liens
granted to the Collateral Agent thereunder;

 

(B)           the UCC financing statements required to be delivered
pursuant to the Credit Agreement and the Security Agreement;

 

(C)           the Intercreditor Agreements;

 

(D)          each agreement entered into and delivered, from time to
time, pursuant to Sections 2.4, 5.7 or 9.1(b) and the collateral granted
to the Collateral Agent thereunder; and

 

(E)           the Proceeds (as hereinafter defined) of each of the
foregoing.

 

The
Collateral Agent hereby holds the Collateral under and subject to the terms and
conditions set forth herein and in the Security Documents for the benefit of
the Beneficiaries (as hereinafter defined) and for the enforcement of the
payment of all Secured Debt, and for the performance of and compliance with the
covenants and conditions of this Agreement, the Existing Indentures, the Credit
Agreement, each other Credit Document (as hereinafter defined) and each of the
Security Documents.

 

If the
Grantors, or their successors or assigns, shall satisfy all of the conditions
set forth in Section 7 with respect to all or any part of the Collateral,
as the case may be, then (i) if with respect to all of the Collateral,
this Agreement, and the rights assigned in the Security Documents, shall cease
and be void or (ii) if with respect to part of the Collateral, this
Agreement, and the rights assigned in the Security Documents, shall cease and
be void with respect to such part of the Collateral; otherwise they shall
remain and be in full force and effect.

 

2

 

SECTION 1.  DEFINITIONS AND
OTHER MATTERS.

 

Section 1.1             Definitions.  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):

 

“Agreement” has the meaning set forth in the
recitals.

 

“Bankruptcy Code” means the federal
Bankruptcy Code.

 

“BMCA” has the meaning set forth in the
recitals.

 

“Business Day” means (i) any day
excluding Saturday, Sunday and any day which is a legal holiday under the laws
of the State of New York or is a day on which banking institutions located in
such State are required or authorized by law or other governmental action to
close, and (ii) a day of the year on which the Collateral Agent is not
required or authorized to close.

 

“Collateral” has the meaning set forth in
the Security Agreement.

 

“Collateral Account” has the meaning set
forth in Section 4.1 and shall include any sub-accounts created
thereunder.

 

“Collateral Agent” means Deutsche Bank Trust
Company Americas, a New York banking corporation, and its successors and
assigns as provided herein, in its capacity as collateral agent for the benefit
of the Secured Parties.

 

“Collateral Agent’s Fees” means all fees,
costs and expenses of the Collateral Agent of the types described in Sections
5.3, 5.4, 5.5 and 5.6.

 

“Collateral Agent’s Liens” means all liens
and security interests against the Collateral which result from (i) claims
against the Collateral Agent unrelated to the transactions contemplated by this
Agreement and the Security Documents or (ii) affirmative acts by the
Collateral Agent creating a lien or security interest other than as
contemplated by this Agreement.

 

“Company” has the meaning set forth in the
recitals.

 

“Credit Agreement” has the meaning set forth
in the recitals.

 

“Credit Document” means the Credit
Agreement, the Notes, the other Loan Documents, each Existing Indenture and all
other agreements, instruments and documents executed or delivered in connection
therewith.

 

“DBTCA” has the meaning set forth in the
recitals.

 

“Debt Instrument” means any promissory note
or other instrument, document or agreement evidencing any Secured Debt.

 

3

 

“Deposit Accounts” means all “deposit
accounts” as defined in the UCC.

 

“Deposit Account Control Agreement” has the
meaning set forth in the Security Agreement.

 

“Event of Default” means an “Event of
Default” under any of the Credit Agreement and the Existing Indentures.

 

“Existing Credit Agreement” has the meaning
set forth in the recitals.

 

“Existing Indentures” has the meaning set
forth in the recitals.

 

“Existing Notes” has the meaning set forth
in the recitals.

 

“General Intercreditor Agreement” means the General
Intercreditor Agreement dated as of the date hereof between DBTCA in its
capacity as collateral agent for the First Lien Obligations (as defined
therein) and Deutsche Bank Cayman Islands Branch, in its capacity as collateral
agent for the Junior Lien Obligations (as defined therein), as amended,
restated, supplemented or otherwise modified or replaced.

 

“Governmental Authority” means any foreign,
federal, state, municipal or other government, or any department, commission,
board, bureau, agency, public authority or instrumentality thereof, or any
court or arbitrator.

 

“Grantors” has the meaning set forth in the
Security Agreement.

 

“Intercreditor Agreements” means the General Intercreditor
Agreement and the Revolver Intercreditor Agreement.

 

“Lender Representatives” means the
Administrative Agent under the Credit Agreement and each Note Trustee under the
Existing Indenture, as the case may be.

 

“Moody’s” means Moody’s Investors Service, Inc.  and any successor thereto that is a
nationally recognized rating agency or, if neither Moody’s Investors Service, Inc.  nor any such successor shall be in the
business of rating senior unsecured long-term debt, a nationally recognized
rating agency in the United States selected by the Collateral Agent.

 

“Note Trustees” means The Bank of New York,
as Trustee under the 2007 Notes Indenture and the 2008 Notes Indenture and
Wilmington Trust Company, as Trustee under the 2014 Notes Indenture, and their
successors and assigns.

 

“Notice of Default” means a notice of an
Event of Default.

 

“Obligations” means “Secured
Obligations” as such term is defined in the Security Agreement.

 

“Proceeds” means (i) all “proceeds” as
defined in the UCC, (ii) payments or distributions made with respect to
the Collateral and (iii) whatever is receivable or received when 

 

4

 

Collateral or proceeds are sold, exchanged, collected
or otherwise disposed of, whether such disposition is voluntary or involuntary.

 

“Refinancing” has the meaning set forth in the Existing
Indentures.

 

“Required Lender Representative” means the
Lender Representative of not less than the majority of holders of the
Obligations, which constitute Debt for Borrowed Money.  For purposes of this definition, the Required
Lender Representative shall be assumed to be the Administrative Agent under the
Credit Agreement; provided, however, that if the Obligations, which constitute
Debt for Borrowed Money, under and as defined in the Credit Agreement, shall be
less than $300.0 million, and the same shall be provided in a notice delivered
to the Collateral Agent by the Company with a copy sent to each Lender
Representative, then the Required Lender Representative shall be deemed to be
the Administrative Agent and the trustee under the 2014 Notes Indenture jointly
acting together until such time the Required Lender Representatives notify the
Collateral Agent that all Obligations, which constitute Debt for Borrowed
Money, under and as defined in the Credit Agreement and all Obligations under
and as defined in the 2014 Notes Indenture are paid in full, at which time the
Required Lender Representatives shall be the remaining Lender Representatives
acting jointly.

 

“Responsible Officer” means with respect to
any Person, the Chairman of the Board, the President, the Chief Financial
Officer, the Chief Executive Officer or the Treasurer of such Person.

 

“Revolver Collateral” shall have the meaning set forth in the
General Intercreditor Agreement.

 

“Revolver Intercreditor Agreement” means the Revolver
Intercreditor Agreement dated as of the date hereof between Deutsche Bank AG,
New York Branch, in its capacity as First Lien Collateral Agent (as defined
therein), DBTCA, in its capacity as Second Lien Collateral Agent (as defined
therein) and Deutsche Bank AG Cayman Islands Branch, in its capacity as Third
Lien Collateral Agent (as defined therein), as amended, restated, supplemented
or otherwise modified or replaced.

 

“Revolving Credit Agreement” has the meaning
set forth in the recitals.

 

“Secured Debt” means all Obligations of the
Loan Parties under the Loan Documents and the Existing Indentures.

 

“Security Agreement” means the Security
Agreement executed by and among the Grantors and the Collateral Agent, dated as
of the date hereof (as such agreement may be amended, restated, supplemented or
otherwise modified, or replaced).

 

“Security Documents” means this Agreement,
the Mortgages, the Deposit Account Control Agreements, the Security Agreement
and the other security agreements, instruments and documents, any additional
documents executed to reflect the grant to the Collateral Agent of a Lien upon
or security interest in any Collateral to secure the Obligations.

 

“Secured Parties” has the meaning set forth
in the Security Agreement.

 

5

 

“Standard &
Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any
successor thereto that is a nationally recognized rating agency or, if neither
such division nor any such successor shall be in the business of rating senior
unsecured long-term debt, a nationally recognized rating agency in the United
States selected by the Collateral Agent.

 

“2007 Notes” has the
meaning set forth in the recitals.

 

“2007 Notes Indenture” has the meaning set forth in the
recitals.

 

“2008 Notes” has the meaning set forth in the recitals.

 

“2008 Notes Indenture” has the meaning set forth in the
recitals.

 

“2014 Notes” has the meaning set forth in the recitals.

 

“2014 Notes Indenture” has the meaning set forth in the
recitals.

 

Section 1.2       Interpretation.  Capitalized terms used herein (including the
preamble and recitals hereto) and not otherwise defined herein shall have the
meanings ascribed thereto in the Security Agreement.  The definitions of terms used herein shall
apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (i) any
definition of or reference herein to any agreement (including this Agreement),
instrument or other document, and to any exhibit or schedule thereto, shall be
construed as referring to such agreement, instrument or other document, and any
exhibit or schedule thereto (including any Exhibit or Schedule hereto), as
from time to time amended, supplemented or otherwise modified, (ii) any
definition of or reference to any law shall be construed as referring to such
law as from time to time amended and any successor thereto and the rules and
regulations promulgated from time to time thereunder, (iii) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (iv) the words “herein”, “hereof” and “hereunder”, and words of
similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (v) all references herein to
Articles, Sections, Exhibits and Schedules, Recitals and paragraphs shall be
construed to refer to Articles, Sections, and Exhibits and Schedules, Recitals
and paragraphs of or to, this Agreement and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.  Section headings
in this Agreement are included herein for convenience of reference only and
shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.  All references
herein to provisions of the UCC shall include all successor provisions under
any subsequent version or amendment to any Article of the UCC.

 

6

 

SECTION 2.  CERTAIN
OBLIGATIONS AND DUTIES OF THE COLLATERAL AGENT AND THE GRANTORS; POWERS OF
ATTORNEY.

 

Section 2.1    Authorization to Execute
Security Documents.  The Collateral
Agent is hereby authorized and directed to execute and deliver each of the
Security Documents delivered to it by the Administrative Agent requiring
execution and delivery by it and shall accept delivery from each Grantor of
those Security Documents which do not require the Collateral Agent’s execution.

 

Section 2.2    Certain Representations and
Warranties of the Collateral Agent. 
The Collateral Agent, in its capacity as Collateral Agent hereunder, and
DBTCA, in its individual capacity, each represent and warrant to the
Beneficiaries as follows:

 

(a)           DBTCA,
is a banking corporation duly formed, validly existing and in good standing
under the laws of the State of New York and has all requisite power and
authority to enter into and perform its obligations under this Agreement and
the Security Documents to which it is a party.

 

(b)           The
execution, delivery and performance by the Collateral Agent of this Agreement
and the Security Documents to which it is a party have been duly authorized by
all necessary corporate action on the part of DBTCA.

 

(c)           There
are no Collateral Agent’s Liens and DBTCA, in its individual capacity, has no
liens or security interests against the Collateral.

 

(d)           To
its knowledge, there are no actions or proceedings pending or threatened
against it before any Governmental Authority (i) which question the
validity or enforceability of this Agreement or any Security Documents to which
it is a party; or (ii) which relate to the banking or trust powers of
DBTCA and which, if determined adversely to the position of DBTCA, would
materially and adversely affect the ability of DBTCA or the Collateral Agent to
perform their respective obligations under this Agreement or any of the
Security Documents to which any one or more of them is a party.

 

(e)           This
Agreement and each of the Security Documents to which the Collateral Agent is a
party have been duly executed and delivered by the Collateral Agent (assuming,
with respect to the Security Documents, that this Agreement has been duly
authorized, executed and delivered by the other parties hereto) and are the
legal, valid and binding obligations of the Collateral Agent enforceable in
accordance with their terms, except to the extent enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer or other similar laws affecting the enforcement of creditors’ rights
generally and by the effect of general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

 

(f)            No
UCC financing statements or other filings or recordations have been or will be
filed by or against DBTCA in its individual capacity with respect to any of the
Collateral.

 

7

 

Section 2.3    Actions.  Control of the Collateral Agent.

 

(a)           Subject
to Sections 2.3(b) and 2.3(c) and except as otherwise provided in Section 2.3(d) and
in the Security Agreement, the Collateral Agent shall take such action with
respect to the Collateral and the Security Documents (including exercising the
rights and remedies provided in Section 3) as is requested in writing by
and only by the Required Lender Representative. 
Notwithstanding the foregoing, the Collateral Agent shall not be
obligated to take any action which is in conflict with any provisions of law or
of this Agreement or the Security Documents or with respect to which the
Collateral Agent has not received adequate security or indemnity as provided in
Section 6.4(d).  Following the receipt
by the Collateral Agent of a Notice of Default from the Required Lender
Representative, and so long as such Notice of Default has not been withdrawn by
the Required Lender Representative, the Collateral Agent shall not take any
action to enforce the security interest in the Collateral or foreclose on any
Lien thereon unless the Collateral Agent has received instructions to do so in
the manner provided in this Section 2.3.

 

(b)           The
Collateral Agent shall not be obligated to follow any written directions received
pursuant to Section 2.3(a) to the extent the Collateral Agent has
received an opinion of independent counsel to the Collateral Agent to the
effect that such written directions are in conflict with any provisions of law
or this Agreement, provided, however, that under no circumstances shall the
Collateral Agent be liable for following the written instructions of the
Required Lender Representative at such times as such parties have the authority
to act as herein provided.

 

(c)           Nothing
in this Section 2.3 shall impair the right of the Collateral Agent to take
or omit to take any action not inconsistent with any direction of the Required
Lender Representative.

 

(d)           The
Collateral Agent shall have no duty to inquire into, investigate or ascertain
the performance by any Grantor of any of the covenants or agreements of any
Grantor contained herein or in any other agreement or document, including,
without limitation, any of the agreements and covenants contained in the
Security Agreement.

 

(e)           It is agreed among the parties hereto
that a party, which fails to respond to a written request for action for
thirty-days, after its actual receipt of same, shall be deemed to have given
its consent to such action.

 

Section 2.4    Additional Security
Documents.  In the event that a
Grantor acquires any interest in any Collateral which is not covered by a
Security Document in a manner which will perfect the Collateral Agent’s lien
upon and security interest in such Collateral without further act or deed of
the Collateral Agent, at the time such interest in such Collateral is acquired,
to the extent that such security interest may be perfected by the execution
and/or filing of a Security Document, then such Grantor shall prepare, execute
and deliver to the Collateral Agent such Security Documents within the
timeframe provided under the Credit Agreement, in form and substance similar to
the Security Documents heretofore executed and delivered by the Grantors, as
are necessary to perfect the Collateral Agent’s lien upon and security interest
in such 

 

8

 

Collateral.  If the signature of
the Collateral Agent is required on any such Security Document, such Grantor
shall present such Security Document to the Required Lender Representative and
if acceptable to the Required Lender Representative, the Required Lender
Representative shall forward such Security Document to, and authorize and
direct, the Collateral Agent to execute same, and the Collateral Agent shall
execute such Security Document and endeavor, at the sole expense of the
Company, to cause such Security Document to be filed or recorded with the
public filing and/or recording offices designated by the Required Lender
Representative as required or advisable to perfect or protect the Collateral
Agent’s lien upon and security interest in such Collateral.

 

Section 2.5    Powers of Attorney to the
Collateral Agent and to BMCA.

 

(a)           Each
Grantor hereby irrevocably constitutes and appoints the Collateral Agent and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full power and authority in the name of such
Grantor or the name of such attorney-in-fact for the purpose of signing
documents and taking other action to perfect, promote and protect the liens and
security interests of the Collateral Agent in the Collateral, all as may be
directed by the Required Lender Representative. 
Such power of attorney is a power coupled with an interest, shall be
irrevocable and shall not first require the Collateral Agent to have received a
Notice of Default.

 

(b)           Each
other Grantor hereby irrevocably constitutes and appoints BMCA and any officer
or agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full power and authority in the name of such Grantor or
in its own name, from time to time in BMCA’s discretion, to take or omit taking
any and all actions hereunder for the purpose of carrying out the terms of this
Agreement and any of the Security Documents, to receive and give all notices to
be given by or received by such Grantor, to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes
hereof and, without limiting the generality of the foregoing, hereby grants to
BMCA the power and right on behalf of such Grantor, without assent by such
Grantor, to bind such Grantor in all respects hereunder and under any of the
Security Documents, with the intent that all action taken by BMCA on behalf of
such Grantor shall be binding upon and inure to the benefit of such Grantor as
effectively as if such action were taken directly by such Grantor.  Each such power of attorney is a power
coupled with an interest and shall be irrevocable until all of the Obligations
are paid in full in cash.

 

Section 2.6    Copies of Letters and
Documents.  The Collateral Agent
shall promptly provide the Required Lender Representative copies of any letters
or documents it receives in connection with any Deposit Account, including
letters and documents related to the termination or opening of any Deposit
Account.  In addition, the Collateral
Agent shall provide to any Lender Representative, upon such Lender
Representative’s request, copies of any letters or documents the Collateral
Agent receives from any Grantor or any other Person in connection with this
Agreement, including additional Security Documents.  A copy of each notice provided by a Lender
Representative to the Collateral Agent under the Security Documents shall be
promptly delivered by the sender to the Required Lender Representative.

 

9

 

Section 2.7    Intercreditor Agreements.  The Lender Representatives expressly
acknowledge and agree that notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Collateral Agent pursuant to this
agreement in any Collateral and the exercise of any right or remedy by the
Collateral Agent with respect to any Collateral hereunder are subject to the
limitations and provisions of (i) the Revolver Intercreditor Agreement and
(ii) the General Intercreditor Agreement. 
In the event of any conflict between the terms of any Intercreditor
Agreement and this agreement, the terms of the Intercreditor Agreements shall
govern and control.

 

SECTION 3.  EVENT
OF DEFAULT; REMEDIES.

 

Section 3.1      Event
of Default.

 

(a)           Upon
actual receipt by an officer of the Collateral Agent’s corporate trust
department of a Notice of Default from the Required Lender Representative, the
Collateral Agent shall, within five Business Days thereafter, send a copy
thereof to each Lender Representative and shall notify each Lender
Representative, in the manner provided in Section 9.2, that a Notice of
Default has been received by the Collateral Agent.  Upon receipt of any written directions
pursuant to Section 2.3(a), the Collateral Agent shall, within five
Business Days thereafter, send a copy thereof to each Lender Representative.

 

(b)           The
Required Lender Representative giving a Notice of Default shall be entitled to
withdraw it by delivering written notice of withdrawal to the Collateral Agent (i) before
the Collateral Agent takes any action to exercise any remedy with respect to
the Collateral or (ii) thereafter, if BMCA otherwise indemnifies the
Collateral Agent and the Beneficiaries (in a manner reasonably satisfactory to
the Collateral Agent and the Lender Representatives in their sole discretion)
with respect to all costs and expenses incurred by the Collateral Agent and the
Beneficiaries in connection with reversing all actions the Collateral Agent has
taken to exercise any remedy or remedies with respect to the Collateral.  The Collateral Agent shall immediately notify
BMCA as to the receipt and contents of any such notice of withdrawal and shall
promptly notify each Lender Representative, in the manner provided in Section 9.2,
of the withdrawal of any Notice of Default and shall promptly send a copy of
any such notice of withdrawal to each Lender Representative.

 

(c)           Notwithstanding
anything to the contrary contained in this Agreement, the Required Lender
Representative shall not be deemed to have knowledge of any Event of Default
under any Credit Document to which it is not a party until it has received
notice from the Company and/or the respective Lender Representative regarding
such Event of Default.  The Required
Lender Representative shall not be obligated to give a Notice of Default until
such notice of an Event of Default is given to the Required Lender
Representative.

 

10

 

Section 3.2    Remedies.

 

(a)           Upon
actual receipt of a Notice of Default from the Required Lender Representative
pursuant to Section 3.1(a), and irrespective of whether the Collateral
Agent has delivered notices to the Lender Representatives pursuant to Section 3.1(a),
the Collateral Agent shall exercise the rights and remedies provided in this Section 3
and the rights and remedies provided in any of the Security Documents in
accordance with instructions of the Required Lender Representative.

 

(b)           Each
Grantor hereby waives presentment, demand, protest or any notice (to the extent
permitted by applicable law and except as otherwise expressly provided in this
Agreement) of any kind in connection with this Agreement, any Collateral or any
Security Document.

 

(c)           Each
Grantor hereby irrevocably constitutes and appoints the Collateral Agent and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full power and authority in the name of such
Grantor or in its own name, from time to time in the Collateral Agent’s
discretion, during the continuation of any Event of Default, for the purpose of
carrying out the terms of this Agreement and any of the Security Documents and
hereby gives the Collateral Agent the power and right on behalf of such
Grantor, without assent by such Grantor, to the extent permitted by applicable
law, to do the following:

 

(i)            to ask for, demand, sue for,
collect, receive and give acquittance for any and all moneys due or to become
due with respect to the Collateral,

 

(ii)           to receive, take, indorse, assign and
deliver any and all checks, notes, drafts, acceptances, documents and other
negotiable and nonnegotiable instruments, documents and chattel paper taken or
received by the Collateral Agent in connection herewith and therewith,

 

(iii)          to commence, file, prosecute, defend,
settle, compromise or adjust any claim, suit, action or proceeding with respect
to the Collateral, and

 

(iv)          to sell, transfer, assign or otherwise
deal in or with the Collateral or any part thereof pursuant to the terms and
conditions hereunder and thereunder.

 

Section 3.3    Right to Initiate Judicial
Proceedings, etc.

 

(a)           Even
if the Collateral Agent has not received a Notice of Default from the Required
Lender Representative, the Collateral Agent shall nevertheless have the right
and power to institute and maintain such suits and proceedings as it may deem
appropriate to protect and enforce the rights vested in it by this Agreement and
each Security Document; provided, however, that as set forth in Section 2.3(a),
foreclosure of the liens and security interests in the Collateral may not be
commenced prior to the Collateral Agent’s receipt of a Notice of Default and
instructions from the Required Lender Representative.

 

(b)           If
and only if the Collateral Agent shall have received a Notice of Default and an
authorization and direction to act, from the Required Lender Representative and

 

11

 

during
such time as such Notice of Default shall not have been withdrawn, the
Collateral Agent may, either after entry or without entry, proceed by suit or
suits at law or in equity to foreclose upon the Collateral and to sell all or,
from time to time, any of the Collateral under the judgment or decree of a
court of competent jurisdiction.

 

Section 3.4    Appointment of a Receiver.  If a receiver of the Collateral shall be
required to be appointed in any judicial proceeding, the Collateral Agent may
be appointed as such receiver. 
Notwithstanding the appointment of a receiver, the Collateral Agent
shall be entitled to retain possession and control of all cash held by or
deposited with it or its agents pursuant to any provision of this Agreement or
any Security Document.

 

Section 3.5    Exercise of Powers.  All of the powers, remedies and rights of the
Collateral Agent as set forth in this Agreement may be exercised by the
Collateral Agent in respect of any Security Document as though set forth
therein and all the powers, remedies and rights of the Collateral Agent as set
forth in any Security Document may be exercised from time to time as herein and
therein provided.

 

Section 3.6    Remedies Not Exclusive.

 

(a)           No
remedy conferred upon or reserved to the Collateral Agent herein or in the
Security Documents is intended to be exclusive of any other remedy or remedies,
but every such remedy shall be cumulative and shall be in addition to every
other remedy conferred herein or in any of the Security Documents or now or
hereafter existing at law or in equity or by statute.

 

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

 

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

 

(d)           All
rights of action and rights to assert claims upon or under this Agreement and
the Security Documents may be enforced by the Collateral Agent without the
possession of any Debt Instrument or the production thereof in any trial or
other proceeding relative thereto, and any such suit or proceeding instituted
by the Collateral Agent shall be brought in its name as Collateral Agent and
any recovery of judgment shall be held as part of the Collateral.

 

12

 

Section 3.7    Limitation on Collateral
Agent’s Duties in Respect of Collateral. 
Beyond its duties set forth in this Agreement as to the custody thereof
and the accounting to the Grantors and the Required Lender Representative for
moneys received by it hereunder, the Collateral Agent shall not have any duty
to the Grantors or the Beneficiaries as to any Collateral in its possession or
control or in the possession or control of any agent or nominee of it or any
income thereon or as to the preservation of rights against prior parties or any
other rights pertaining thereto.  To the
extent, however, that the Collateral Agent or an agent or nominee of the
Collateral Agent maintains possession or control of any of the Collateral or
the Security Documents at any office of a Grantor, the Collateral Agent shall,
or shall instruct such agent or nominee to, grant such Grantor the access to
such Collateral or Security Documents which such Grantor requires for the
conduct of its business, as permitted by the Credit Documents, so long as the
Collateral Agent shall not have received a Notice of Default from the Required
Lender Representative.

 

Section 3.8    Limitation by Law.  All the provisions of this Section 3 and
the Security Agreement insofar as they relate to the exercise of power by the
Collateral Agent are intended to be subject to all applicable mandatory
provisions of law which may be controlling in the premises and to be limited to
the extent necessary so that they will not render this Agreement invalid or
unenforceable in whole or in part.

 

Section 3.9    Absolute Rights of the
Beneficiaries.  Notwithstanding any
other provision of this Agreement or any provision of any Security Document,
neither the right of each Secured Party, which is absolute and unconditional,
to receive payments of the Secured Debt held by such Secured Party on or after
the due date thereof as therein expressed, to institute suit for the
enforcement of such payment on or after such due date, or to assert its
position and views as a secured or unsecured creditor in, and to otherwise exercise
any right (other than the right to enforce the security interest in the
Collateral, which shall in all circumstances be exercisable only by the
Collateral Agent and only as provided in this Agreement and the Security
Documents) which such Secured Party may have in connection with, a case under
the Bankruptcy Code in which a Grantor is a debtor, nor the obligation of each
Grantor, which is also absolute and unconditional, to pay the Secured Debt
owing by such Grantor to each Secured Party at the time and place expressed
therein shall be impaired or affected without the consent of such Secured
Party.

 

SECTION 4.  COLLATERAL
ACCOUNT; APPLICATION OF MONEYS.

 

Section 4.1    The Collateral Account.  The Collateral Agent shall establish as
necessary an account which shall be entitled the “Collateral Account” (the “Collateral Account”).  All moneys which are received by the
Collateral Agent with respect to the Collateral at any time after a Notice of
Default shall have been given to the Collateral Agent by the Required Lender
Representative and shall not have been withdrawn shall be deposited in the
Collateral Account and thereafter shall be held, applied and/or disbursed by
the Collateral Agent in accordance with the terms of this Agreement.  Any interest or other income received on such
investment and reinvestment of the moneys on deposit the Collateral Account
after a Notice of Default shall have been given to the Collateral Agent by the
Required Lender Representative and shall not have been withdrawn shall become
part of the moneys on deposit in the Collateral Account and be allocated
pursuant to the Security Agreement.

 

13

 

Section 4.2    Application
of Moneys.  Any cash held by or on
behalf of the Collateral Agent and all cash proceeds received by or on behalf
of the Collateral Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral may, at the instruction of
the Required Lender Representative, be held by the Collateral Agent as
collateral for, and/or then or at any time thereafter applied in whole or in
part by the Collateral Agent for the ratable benefit of the Secured Parties
against, all or any part of the Secured Obligations, in the following manner:

 

(a)           first, paid to the Collateral Agent for any amounts then
owing to the Collateral Agent hereunder;

 

(b)           second, paid to the Agents for any amounts then owing to the
Agents pursuant to Section 8.04 of the Credit Agreement or otherwise under
the Loan Documents and the Note Trustees for any amounts owing to the trustees
under the Existing Indentures, respectively, ratably in accordance with the
amounts then owing to the Agents and the trustees; and

 

(c)           third, ratably paid to the Lenders, the holders of the Existing
Notes and the Hedge Banks, for any amounts then owing to them, in their
capacities as such, under the Loan Documents and the Existing Indentures,
respectively ratably, in accordance with the amounts then owing to the Lenders,
the holders of the Existing Notes and the Hedge Banks.

 

The
Lender Representatives agree on behalf of their respective Secured Parties that
they will provide the Collateral Agent with tax forms which the Collateral
Agent may reasonably require prior to any distribution of funds.

 

SECTION 5.  AGREEMENTS WITH THE
COLLATERAL AGENT.

 

Section 5.1    Delivery of Documents.  On or promptly after the date hereof, BMCA
will deliver to the Collateral Agent true and complete copies of each Credit
Document, Debt Instrument and Security Document; provided, however, that the
failure to provide the Collateral Agent with copies of such documents shall not
affect the rights of the Beneficiaries or the validity of the Collateral Agent’s
actions taken hereunder.  BMCA further
agrees that, promptly upon the execution thereof, BMCA will deliver to the
Collateral Agent a true and complete copy of any other Credit Documents, Debt
Instruments and Security Documents entered into by any Grantor subsequent to
the date hereof, and a true and complete copy of any and all amendments,
modifications or supplements to any Credit Document, Debt Instrument or
Security Document entered into by any Grantor subsequent to the date hereof.

 

Section 5.2    Information as to Secured
Parties.

 

(a)           BMCA
agrees to deliver to the Collateral Agent by December 1 in each year,
commencing December 1, 2007, and at any other time or times upon request
of the Collateral Agent, a list setting forth each Lender Representative and
the information required pursuant to Section 9.2 to send notices to each
such Lender Representative.

 

14

 

(b)           At
any time after the Collateral Agent has received a Notice of Default from the
Required Lender Representative, and so long as such Notice of Default has not
been withdrawn, upon the request of the Collateral Agent, each Lender
Representative agrees that it shall deliver to the Collateral Agent, within
five Business Days following the receipt of such request, a schedule setting
forth the aggregate principal amount of Secured Debt owing to each Secured
Party of such Lender Representative, the interest rate or rates and the letter
of credit fee or fees then in effect with respect to such Secured Debt and such
other information as the Collateral Agent may request to make distributions
pursuant to Section 4.2.

 

Section 5.3    Compensation and Expenses.  The Grantors jointly and severally agree to
pay to the Collateral Agent as compensation for the Collateral Agent’s services
hereunder and under the Security Documents and for administering the Secured
Debt Collateral, (a) such fees as shall be agreed to in writing from time
to time between BMCA and the Collateral Agent and (b) from time to time,
upon demand, all of the reasonable and documented fees, costs and expenses of
the Collateral Agent (including the reasonable fees and disbursements of its
counsel and such special counsel as the Collateral Agent elects to retain) (x) arising
in connection with the preparation, execution, delivery, modification,
restatement, amendment or termination of this Agreement and each Security
Document or the enforcement (whether in the context of a civil action,
adversary proceeding, workout or otherwise) of any of the provisions hereof or
thereof, or (y) incurred or required or otherwise advanced in connection
with the administration of the Collateral, the sale or other disposition of
Collateral and the preservation, protection or defense of the Collateral Agent’s
rights under this Agreement and in and to the Collateral.  As security for such payment, the Collateral
Agent shall have a lien prior to the Secured Debt upon all Collateral and other
property and funds held or collected by the Collateral Agent as part of the
Collateral.  The obligation of the
Grantors to pay any and all fees, expenses, indemnities and other amounts due
hereunder shall be joint and several and shall survive termination of this
Agreement and resignation or removal of the Collateral Agent.

 

Section 5.4    Stamp and Other Similar
Taxes.  The Grantors jointly and severally
agree to indemnify and hold harmless the Collateral Agent and each Secured
Party from, and shall reimburse the Collateral Agent and each Secured Party
for, any present or future claim for liability for any stamp or other similar
tax and any penalties or interest with respect thereto, which may be assessed,
levied or collected by any jurisdiction in connection with this Agreement, any
Security Document, the Collateral, or the attachment or perfection of the
security interest granted to the Collateral Agent in any Collateral.  The obligations of the Grantors under this Section 5.4
shall survive the termination of the other provisions of this Agreement.

 

Section 5.5    Filing Fees, Excise Taxes,
etc.  The Grantors jointly and
severally agree to pay or to reimburse the Collateral Agent for any and all
reasonable amounts in respect of all search, filing, recording and registration
fees, taxes, excise taxes and other similar imposts which may be payable or
determined to be payable in respect of the execution, delivery, performance and
enforcement of this Agreement and each Security Document and agrees to save the
Collateral Agent harmless from and against any and all liabilities with respect
to or resulting from any delay in paying or omission to pay such taxes and
fees.  The obligations of the Grantors

 

15

 

under this Section 5.5 shall survive the termination of the other
provisions of this Agreement and resignation or removal of the Collateral
Agent.

 

Section 5.6    Indemnification.

 

(a)           The
Grantors jointly and severally agree to pay, indemnify and hold the Collateral
Agent and its officers, employees, directors, agents and representatives and
each of its agents harmless from and against any and all liabilities, claims,
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 and the Security Documents, except to the extent the same constitute
direct money damages arising from the gross negligence or willful misconduct of
the Collateral Agent, or if the agent is seeking indemnification, from the
agent’s gross negligence or willful misconduct. 
As security for such payment, the Collateral Agent shall have a lien
prior to the Secured Debt upon all Collateral and other property and funds held
or collected by the Collateral Agent as part of the Collateral.

 

(b)           In
any suit, proceeding or action brought by the Collateral Agent under or with
respect to the Collateral for any sum owing thereunder, or to enforce any
provisions thereof, or of any of the Security Documents or this Agreement, the
Grantors will save, indemnify and keep the Collateral Agent and the Secured
Parties harmless from and against all expense, loss or damage suffered by
reason of any defense, setoff, counterclaim, recoupment or reduction of
liability whatsoever of the obligee thereunder, arising out of a breach by any
Grantor of any of its obligations hereunder or thereunder or arising out of any
other agreement, indebtedness or liability at any time owing to or in favor of
such obligee or its successors from such Grantor, and all such obligations of
the Grantors shall be and remain enforceable against and only against the
Grantors and shall not be enforceable against the Collateral Agent or any
Secured Party.

 

(c)           The
agreements and obligations of the Grantors in this Section 5.6 shall
survive resignation or removal of the Collateral Agent and the termination of
the other provisions of this Agreement.

 

Section 5.7    Further Assurances.  At any time and from time to time and at the
sole expense of the Grantors, each Grantor will promptly execute and deliver
any and all such further instruments and documents and take such further action
as the Required Lender Representative reasonably determines is necessary or
desirable for the Secured Parties to obtain the full benefits of this
Agreement.

 

SECTION 6.  COLLATERAL AGENT.

 

Section 6.1    Acceptance of Duties.  The Collateral Agent, for itself and its
successors, accepts the duties and obligations required by this Agreement upon
the terms and conditions hereof, including those contained in this Section 6.

 

16

 

Section 6.2       Exculpatory Provisions.

 

(a)           The Collateral Agent shall not be responsible in any manner
whatsoever for the correctness of any recitals, statements, representations or
warranties contained herein or in any Notice of Default or in any instructions
purported to be from the Required Lender Representative, except for those made
by the Collateral Agent.  The Collateral
Agent makes no representations as to the value or condition of the Secured Debt
Collateral or any part thereof, or as to the title of any Grantor thereto or as
to the security afforded by the Security Documents or this Agreement or, except
as set forth in Section 2.2, as to the validity, execution,
enforceability, legality or sufficiency of this Agreement, any Credit Document,
any Security Document or of the Secured Debt secured hereby and thereby, and
the Collateral Agent shall incur no liability or responsibility in respect of
any such matters.  The Collateral Agent
shall not be responsible for insuring the Collateral or for the payment of
taxes, charges, assessments or liens upon the Collateral or otherwise as to the
maintenance of the Collateral, except that (i) in the event the Collateral
Agent enters into possession of a part or all of the Collateral, the Collateral
Agent shall preserve the part in its possession, and (ii) the Collateral
Agent will promptly, and at its own expense, take such action as may be
necessary duly to remove and discharge (by bonding or otherwise) any Collateral
Agent’s Lien on any part of the Collateral or any other lien on any part of the
Collateral resulting from claims against it not related to the administration
of the Collateral or (if so related) resulting from gross negligence or willful
misconduct on its part.

 

(b)           The Collateral Agent shall not be required to ascertain or
inquire as to the performance by any Grantor of any of the covenants or
agreements contained herein, in any Credit Document, Security Document or in
any Debt Instrument.  Whenever it is
necessary, or in the opinion of the Collateral Agent advisable, for the
Collateral Agent to ascertain the amount of Secured Debt then held by a Secured
Party, the Collateral Agent may rely on a certificate of such Secured Party’s
Lender Representative as to such amount.

 

(c)           DBTCA shall, in its individual capacity and at its own cost
and expense, promptly take all action as may be necessary to discharge any
Collateral Agent’s Liens or any other lien resulting from claims against it not
related to the administration of the Collateral or (if so related) resulting
from gross negligence or willful misconduct on its part.

 

(d)           The Collateral Agent shall not be personally liable for any
acts, omissions, errors of judgment or mistakes of fact or law made, taken or
omitted to be made or taken by it in accordance with this Agreement or any
Security Document (including, without limitation, acts, omissions, errors or
mistakes with respect to the Collateral), except for those arising out of or in
connection with the Collateral Agent’s gross negligence or willful misconduct.  In no event shall the Collateral Agent be
liable for incidental, indirect, special or consequential damages, regardless
of the form of action and even if the same were foreseeable.  Notwithstanding anything set forth herein to
the contrary, the Collateral Agent shall have a duty of reasonable care with respect
to any Collateral which

 

17

 

is delivered to the Collateral Agent or its
designated representatives and is in the Collateral Agent’s or its designated
representatives’ possession and control.

 

(e)           The Collateral Agent shall not be liable for any claims,
losses, liabilities, damages, costs, expenses and judgments (including
reasonable attorneys’ fees and expenses) due to forces beyond the reasonable
control of the Collateral Agent, including, without limitation, strikes, work
stoppages, act of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software or hardware) services.

 

Section 6.3       Delegation of Duties; Appointment of
Administrative Agent as Sub-Agent.

 

(a)           The Collateral Agent may execute any of the powers hereof
and perform any duty hereunder either directly or by or through agents,
nominees or attorneys-in-fact.  The
Collateral Agent may act and rely, and shall be protected in acting and relying
on, the opinion or advice or, or information obtained from, any counsel,
accountant, appraiser or other expert or adviser, whether retained or employed
by the Collateral Agent or the Required Lender Representative, in relation to
any matter in connection with this Agreement, the Security Agreement or any
other document, instrument or writing. 
The Collateral Agent shall be entitled to advice of counsel concerning
all matters pertaining to such powers and duties.  The Collateral Agent shall not be responsible
for any acts or omissions, including any negligence or misconduct, of any
agents, designated representatives, nominees or attorneys-in-fact selected by
it without gross negligence or willful misconduct.

 

(b)           The Collateral Agent hereby appoints the Administrative
Agent to act as its sub-agent hereunder, and in connection with each of the
other Loan Documents.  The Administrative
Agent, for itself and its successors, accepts the duties and obligations
required by this Agreement and the other Loan Documents upon the terms and
conditions hereof and thereof.

 

Section 6.4       Reliance by Collateral Agent.

 

(a)           Whenever in the administration of this Agreement the
Collateral Agent shall deem it necessary or desirable that a matter be proved
or established with respect to any Grantor in connection with the taking,
suffering or omitting of any action hereunder by the Collateral Agent, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be proved or established by a certificate of a
Responsible Officer of such Grantor delivered to the Collateral Agent, and such
certificate shall be full warranty to the Collateral Agent for any action
taken, suffered or omitted in reliance thereon without gross negligence or
willful misconduct, subject, however, to the provisions of Section 6.5.

 

(b)           The Collateral Agent may consult with counsel, accountants
and other experts, and any opinion of independent counsel, any such accountant,
and any such other expert shall be full and complete authorization and
protection in respect of any action taken or suffered by it hereunder in
accordance therewith.  The Collateral
Agent shall

 

18

 

have the right at any time to seek
instructions concerning the administration of the Collateral from any court of
competent jurisdiction.

 

(c)           The Collateral Agent may rely, and shall be fully protected
in acting, upon any resolution, statement, certificate, instrument, opinion,
report, notice, request, consent, order, bond or other paper or document which
it has no reason to believe to be other than genuine and to have been signed or
presented by the proper party or parties or, in the case of telecopies, to have
been sent by the proper party or parties, including the information provided by
BMCA to the Collateral Agent pursuant to Section 5.2.  In the absence of its gross negligence or
willful misconduct, the Collateral Agent may rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Collateral Agent and conforming to
the requirements of this Agreement or any Security Document.

 

(d)           If the Collateral Agent has been requested to take action
pursuant to Section 2.3, the Collateral Agent shall not be under any
obligation to exercise any of the rights or powers vested in the Collateral
Agent by this Agreement or any Security Document unless the Collateral Agent
shall have been provided adequate security and indemnity against the costs,
expenses and liabilities which may be incurred by it in complying with such
request or direction, including such reasonable advances as may be requested by
the Collateral Agent.

 

(e)           The Collateral Agent shall not be required to inquire or
investigate a Notice of Default or whether any instruction purported to be
given by the Required Lender Representative was in fact so given, or whether
any such instruction is consistent with the Security Agreement or this
Agreement, and the Collateral Agent may assume the foregoing and shall be
protected in relying thereon.

 

(f)            The Collateral Agent shall have
no duty as to any Collateral in its possession or control, other than those
duties specifically set forth herein, or the possession or control of any agent
or bailee or any income thereon or as to the preservation or rights against
prior parties or any other rights pertaining thereto.  The Collateral Agent or its agent or designee
shall endeavor to file such financing and continuation statements and record
such documents or instruments in such places and at such times as shall be
directed by the Required Lender Representative. 
The Collateral Agent shall not be liable or responsible for any loss or
diminution in the value of any of the Collateral by reason or the act or
omission of any carrier, forwarding agency or other agent or bailee selected by
the Collateral Agent in good faith.

 

(g)           The Collateral Agent shall not be responsible for the
existence, genuineness or value of any of the Collateral or for the validity,
perfection, priority or enforceability or any liens on any of the Collateral,
whether impaired by operation of law or by reason of any action or omission to
act on its part hereunder, except to the extent such action or omission
constitutes gross negligence or willful misconduct on the part of the
Collateral Agent, for the validity or sufficiency of the Collateral or any
agreement or assignment contained therein, or for the validity of any title to
the Collateral or otherwise as to the maintenance of the Collateral.  The Collateral Agent shall have no duty to

 

19

 

ascertain or inquire into the performance or
observance by any other party of the terms of this Agreement, the Security
Agreement or any other agreement or document.

 

(h)           None of the provisions of this Agreement shall require the
Collateral Agent to expend or risk its own funds or otherwise to incur any
liability, financial or otherwise, in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not assured to it.

 

Section 6.5       Limitations on Duties of the Collateral Agent.

 

(a)           The Collateral Agent shall be obliged to perform such duties
and only such duties as are specifically set forth in this Agreement or in any
Security Document, and no implied covenants or obligations shall be read into
this Agreement or any Security Document against the Collateral Agent.  The Collateral Agent shall, upon receipt of a
Notice of Default from the Required Lender Representative and during such time
as such Notice of Default shall not have been withdrawn, exercise the rights
and powers vested in it by this Agreement or by any Security Document, and the
Collateral Agent shall not be liable with respect to any action taken or
omitted by it in accordance with the direction of the Required Lender
Representative pursuant to Section 2.3.

 

(b)           Except as herein otherwise expressly provided, including,
without limitation, upon the written request of the Required Lender
Representative pursuant to Section 2.3, the Collateral Agent shall not be
under any obligation to take any action which is discretionary under the
provisions hereof or under any Security Document.  Whenever reference is made in this Agreement
or in the Security Agreement, the Credit Documents, the Intercreditor
Agreements (as such term is defined in the Credit Agreement) or the Security
Documents to any action by, consent, designation, specification, requirement or
approval of, notice, request or other communication from, or other direction
given or action to be undertaken or to be (or not to be) suffered or omitted by
the Collateral Agent to any amendment, waiver or other modification of this
Agreement or in the Security Agreement or the Security Documents to be executed
(or not to be executed) by the Collateral Agent or to any election, decision,
opinion, acceptance, use of judgment, expression of satisfaction or other
exercise of discretion, rights or remedies to be made (or not to be made) by
the Collateral Agent, it is understood that in all cases the Collateral Agent
shall be acting, giving, withholding, suffering, omitting, making or otherwise
undertaking and exercising the same (or shall not be undertaking and exercising
the same) as directed by the Required Lender Representative in accordance with
this Section 6.5(b).  This provision
is intended solely for the benefit of the Collateral Agent and its successors
and permitted assigns and is not intended to and will not entitle the other
parties hereto to any defense, claim or counterclaim under or in relation to
any Security Document, or confer any rights or benefits on any party
hereto.  The Collateral Agent shall
furnish to each Lender Representative promptly upon receipt thereof, a copy of
each certificate or other paper furnished to the Collateral Agent by a Grantor
under or in respect of this Agreement, any Security Document or any of the
Collateral.

 

20

 

Section 6.6       Moneys Held By Collateral Agent.  All moneys received by the Collateral Agent
under or pursuant to any provision of this Agreement or any Security Document
shall be held as Collateral for the purposes for which they were paid or are
held.

 

Section 6.7       Resignation and Removal of the Collateral
Agent.

 

(a)           The Collateral Agent may at any time, by giving thirty days’
prior written notice to BMCA and each Lender Representative resign and be
discharged of the responsibilities hereby created, such resignation to become
effective upon the appointment of a successor collateral agent or collateral
agents by the Required Lender Representative, and the acceptance of such
appointment by such successor collateral agent or collateral agents.  The Collateral Agent may be removed at any
time without cause and a successor collateral agent appointed by the
affirmative vote of the Required Lender Representative and written notice
thereof delivered to the Collateral Agent; provided that
the Collateral Agent shall be entitled to its fees and expenses to the date of
removal.  If no successor collateral
agent or collateral agents shall be appointed and approved within thirty days
from the date of the giving of the aforesaid notice of resignation or within
thirty days from the date of such removal, the Collateral Agent shall, or any
Lender Representative may, apply to any court of competent jurisdiction to
appoint a successor collateral agent or collateral agents (which may be an
individual or individuals) to act until such time, if any, as a successor
collateral agent or collateral agents shall have been appointed as above
provided.  Any successor collateral agent
or collateral agents so appointed by such court shall immediately and without
further act be superseded by any successor collateral agent or collateral
agents appointed by the Required Lender Representative.

 

(b)           If at any time the Collateral Agent shall resign, be removed
or otherwise become incapable of acting, or if at any time a vacancy shall
occur in the office of the Collateral Agent for any other cause, a successor
collateral agent or collateral agents may be appointed by the Required Lender
Representative, and the powers, duties, authority and title of the predecessor
collateral agent or collateral agents terminated and canceled without procuring
the resignation of such predecessor collateral agent or collateral agents, and
without any other formality (except as may be required by applicable law) than
the appointment and designation of a successor collateral agent or collateral
agents in writing, duly acknowledged, delivered to the predecessor collateral
agent or collateral agents and BMCA, and filed for record in each public
office, if any, in which this Agreement is required to be filed.

 

(c)           The appointment and designation referred to in Section 6.7(b) shall,
after any required filing, be full evidence of the right and authority to make
the same and of all the facts therein recited, and this Agreement shall vest in
such successor collateral agent or collateral agents, without any further act,
deed or conveyance, all of the estate and title of its predecessor or their
predecessors, and upon such filing for record the successor collateral agent or
collateral agents shall become fully vested with all the estates, properties,
rights, powers, trusts, duties, authority and title of its predecessor or their
predecessors; but such predecessor or predecessors shall, nevertheless, on the
written request of any Lender Representative, BMCA, or its or their successor
collateral agent or

 

21

 

collateral agents, execute and deliver an
instrument transferring to such successor or successors all the estates,
properties, rights, powers, duties, authority and title of such predecessor or
predecessors hereunder and shall deliver all securities and moneys held by it
or them to such successor collateral agent or collateral agents.  Should any deed, conveyance or other
instrument in writing from BMCA be required by any successor collateral agent
or collateral agents for more fully and certainly vesting in such successor collateral
agent or collateral agents the estates, properties, rights, powers, duties,
authority and title vested or intended to be vested in the predecessor
collateral agent or collateral agents, any and all such deeds, conveyances and
other instruments in writing shall, on request of such successor collateral
agent or collateral agents, be so executed, acknowledged and delivered.

 

(d)           Any required filing for record of the instrument appointing
a successor collateral agent or collateral agents as hereinabove provided shall
be at the expense of the Grantors.  The
resignation of any collateral agent or collateral agents and the instrument or
instruments removing any collateral agent or collateral agents, together with
all other instruments, deeds and conveyances provided for in this Section 6
shall, if required by law, be forthwith recorded, registered and filed by and
at the expense of the Grantors, wherever this Agreement is recorded, registered
and filed.

 

Section 6.8       Status of Successors to the Collateral Agent.  Every successor to DBTCA, as Collateral
Agent, appointed pursuant to Section 6.7 and every corporation resulting
from a merger or consolidation pursuant to Section 6.9 shall be a bank or
trust company in good standing and having power so to act, incorporated under
the laws of the United States or any State thereof or the District of Columbia,
and having its principal corporate trust office within the forty-eight
contiguous States, and shall also have capital, surplus and undivided profits
of not less than $250,000,000 and a rating from Standard & Poor’s or
Moody’s of A or better.

 

Section 6.9       Merger of the Collateral Agent.  Any corporation or association into which the
Collateral Agent shall be merged, or with which it shall be consolidated, or
any corporation or association resulting from any merger or consolidation to
which the Collateral Agent shall be a party, or any corporation or association
which shall purchase all or substantially all of the corporate trust business
of the Collateral Agent shall be the Collateral Agent under this Agreement
without the execution or filing of any paper or any further act on the part of
the parties hereto.

 

Section 6.10     Additional Co-Collateral Agents; Separate
Collateral Agents.

 

(a)           If at any time or times it shall be necessary or prudent in
order to conform to any law of any jurisdiction in which any of the Collateral
shall be located, or the Collateral Agent shall be advised by counsel
satisfactory to it that it is so necessary, or prudent in the interest of the
Beneficiaries, or the Required Lender Representative shall in writing so
request, or the Collateral Agent shall deem it desirable for its own protection
in the performance of its duties hereunder, the Collateral Agent shall execute
and deliver all instruments and agreements necessary or proper to constitute
another bank or trust company, or one or more persons approved by the
Collateral Agent either to act as co-collateral agent or co-collateral agents
of all or any of the Collateral, jointly with the

 

22

 

Collateral Agent originally named herein or
any successor or successors, or to act as separate collateral agent or
collateral agents of any such property. 
In the event BMCA shall not have joined in the execution of such
instruments and agreements within five days after the receipt of a written
request from the Collateral Agent so to do, or in case an Event of Default
shall have occurred and be continuing, the Collateral Agent may act under the
foregoing provisions of this Section 6.10 without the concurrence of BMCA,
and BMCA hereby irrevocably appoints the Collateral Agent as its agent and
attorney to act for it under the foregoing provisions of this Section 6.10
in either of such contingencies.

 

(b)           Every separate collateral agent and every co-collateral
agent, other than any collateral agent which may be appointed as successor to
DBTCA shall, to the extent permitted by law, be appointed and act and be such,
subject to the following provisions and conditions, namely:

 

(i)            all
rights, powers, duties and obligations conferred upon the Collateral Agent in
respect of the custody, control and management of moneys, papers or securities
shall be exercised solely by DBTCA or its successors and assigns as Collateral
Agent hereunder;

 

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

 

(iii)          no
power given hereby to, or which it is provided hereby may be exercised by, any
such co-collateral agent or co-collateral agents or separate collateral agent
or separate collateral agents, shall be exercised hereunder by such
co-collateral agent or co-collateral agents or separate collateral agent or
separate collateral agents, except jointly with, or with the consent in writing
of, the Collateral Agent, anything herein contained to the contrary
notwithstanding;

 

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

 

(v)           the
Collateral Agent, at any time by an instrument in writing, may accept the
resignation of or remove any such separate collateral agent or co-collateral
agent with or without cause, and in that case may by an instrument in writing
executed by the Collateral Agent appoint a successor to such separate
collateral agent or co-collateral agent, as the case may be, anything herein

 

23

 

contained to
the contrary, notwithstanding.  In the
event that BMCA shall not have joined in the execution of any such instrument
within five days after the receipt of a written request from the Collateral
Agent so to do, or in case an Event of Default shall have occurred and be
continuing, the Collateral Agent shall have the power to accept the resignation
of or remove any such separate collateral agent or co-collateral agent and to
appoint a successor without the concurrence of BMCA; BMCA hereby irrevocably
appointing the Collateral Agent its agent and attorney to act for it in such
connection in either of such contingencies. 
In the event that the Collateral Agent shall have appointed a separate
collateral agent or separate collateral agents or co-collateral agent or
co-collateral agents as above provided, it may at any time, by an instrument in
writing, accept the resignation of or remove any such separate collateral agent
or co-collateral agent, the successor to any such separate collateral agent or
co-collateral agent to be appointed by the Collateral Agent as hereinabove
provided in this Section 6.10.

 

SECTION 7.            RELEASE
OF COLLATERAL.

 

Section 7.1       Conditions
to Release of Collateral.

 

(a)           The Collateral Agent shall release its security interest in
the Collateral (other than the Revolver Collateral) on such date as is
reasonably practicable after the date on which the Collateral Agent shall have
received written notice from the Administrative Agent (as defined in the Credit
Agreement) that the Obligations under and as defined in the Credit Agreement
(other than contingent obligations) shall have become unsecured or shall have
been paid in full with the proceeds of unsecured indebtedness and the unfunded
commitments, if any, of the Lenders under the Credit Agreement shall have been
terminated; provided, however, that the Collateral Agent shall not release its
security interest in such Collateral unless it (i) shall have received a
written certificate of a Responsible Officer of the Company (together with a
copy to each Lender Representative) stating that no Event of Default, or event
which could reasonably become an Event of Default, under the Existing
Indentures has occurred and is continuing, and (ii) shall not have
received a Notice of Default from the Required Lender Representative with
respect to a then existing Event of Default under any of the Existing
Indentures (including if BMCA is the subject of any bankruptcy proceeding);

 

(b)           The Collateral Agent shall release its security interest in
the Revolver Collateral on such date as is reasonably practicable after the
date on which the Collateral Agent shall have received written notice from BMCA
to the effect that (A) the Obligations (other than contingent obligations)
under and as defined in the Revolving Credit Agreement (the “Revolver Obligations”) shall have been paid
in full and the unfunded commitments, if any, of the lenders under the Revolving
Credit Agreement shall have been terminated with one or more of the
following:  (x) the proceeds of
unsecured indebtedness (including any Refinancing of the Revolver Obligations)
of BMCA or any of its Subsidiaries permitted under the Existing Indentures, (y) the
proceeds of secured indebtedness (including any Refinancing of the Revolver
Obligations) permitted under the Existing Indentures, provided that the
Obligations under the Existing Notes shall be secured by the same collateral as
shall secure such secured

 

24

 

indebtedness on terms and conditions,
including priority, no more onerous to the Secured Parties than those contained
in the Security Agreement and this Agreement or (z) cash on hand of BMCA and
its Subsidiaries that is not prohibited by the terms of the Existing Indentures
from being applied to the repayment of the Revolver Obligations, and (B) accrued
and unpaid Collateral Agent’s Fees shall have been paid in full; provided,
however, that the Collateral Agent shall not release its security interest in
the Collateral if (I) the repayment of the Revolver Obligations was not
permitted under the Existing Indentures, (II) an event of default under
the Credit Documents or under the Revolving Credit Agreement shall exist at the
time of such repayment (including if BMCA is the subject of any bankruptcy
proceedings) or (III) the cash for such repayment was obtained through the
concurrent sale of assets of BMCA or its Subsidiaries; or

 

(c)           The Collateral Agent shall release its security interest in
all of the Collateral on the earlier of:

 

(i)            the
date on which (A) all the Secured Debt shall have been paid in full in
cash and the unfunded commitments, if any, of each Secured Party shall have
been terminated and notice of same shall have been given to the Collateral
Agent by the Required Lender Representative and (B) accrued and unpaid
Collateral Agent’s Fees shall have been paid in full; or

 

(ii)           the
date which is 3 days after the date on which (A) the Collateral Agent
shall have received written instructions from all Lender Representatives
instructing the Collateral Agent to release its security interest in all of the
Collateral, and (B) accrued and unpaid Collateral Agent’s Fees shall have
been paid in full.

 

(d)           Subject to this Section 7.1(d) and Section 7.2,
the Collateral Agent shall release its security interest in specific items or
portions of the Collateral in accordance with the terms of Sections 24(a) or
24(b) of the Security Agreement.

 

Section 7.2       Actions Following Release of the Collateral.  To the extent that the Collateral Agent is
required or permitted to release Collateral in accordance with Section 7.1
or the terms of the Security Agreement, or the security interest in any
Collateral granted pursuant to any of the Security Documents is otherwise
terminated or released in accordance with the terms thereof, all right, title
and interest of the Collateral Agent in, to and under such Collateral and the
security interest of the Collateral Agent therein shall terminate and shall
revert to the applicable Grantor or its successors and assigns, and the estate,
right, title and interest of the Collateral Agent therein shall thereupon
cease, terminate and become void. 
Following such request, instructions or other termination or release,
the Collateral Agent shall, upon the written request of applicable Grantor or
its successors or assigns and at the cost and expense of the Grantors, or their
successors or assigns, execute such instruments and take such other actions as
are necessary or desirable to terminate any such security interest and
otherwise to effectuate the release of the specified portions of the Collateral
from the lien of such security interest. 
Such termination and release shall be without prejudice to the rights of
the Collateral Agent or any successor collateral agent to charge and be
reimbursed for any expenditures which it may thereafter incur in connection
therewith.

 

25

 

SECTION 8.      AGREEMENTS AMONG SECURED
PARTIES.

 

Section 8.1          Other Agreements Among Secured Party.

 

Each
Secured Party by its acceptance of the benefits of this Agreement and any
Security Documents and the Collateral shall be deemed to have:

 

(a)           agreed that should it obtain, receive or take any Collateral
(by means of set-off, recoupment or otherwise), or recover any amounts under
any Security Document, at any time after the Collateral Agent has received a
Notice of Default from the Required Lender Representative, then the received
Collateral or the amount recovered shall be delivered to the Collateral Agent
for distribution in accordance with the Security Agreement; and

 

(b)           agreed that any recovery of Collateral by any Secured Party
with respect to the Obligations as a result of enforcement of any consensual or
non-consensual lien or security interest on any Collateral shall be remitted to
the Collateral Agent for distribution in accordance with the Security
Agreement.

 

Section 8.2          Payment of Collateral Agent’s Fees.  In the event the Grantors do not pay the
Collateral Agent’s Fees, each Secured Party (other than the Collateral Agent)
by its acceptance of the benefits of this Agreement and any Security Documents
and the Collateral shall be deemed to have agreed that any Proceeds of
Collateral to which it shall be entitled shall be available to pay the
Collateral Agent’s Fees ratably in accordance with the proportion of the
Secured Debt held by such Secured Party or, if there has been any recovery of
the Secured Debt, in accordance with the proportion of (a) the Secured
Debt recovered by such Secured Party to (b) the aggregate amount of
Secured Debt recovered by all Beneficiaries. 
In the event that such Proceeds of Collateral are not sufficient to pay
all such Collateral Agent’s Fees, each Secured Party (other than the Note
Trustees) agrees to pay the amount of such shortfall in the same proportions as
described above with respect to the allocation of Proceeds of Collateral.

 

Section 8.3          Invalidation of Payments.  To the extent that any of the Beneficiaries
receives payments on the Secured Debt or receives Proceeds of Collateral which
are subsequently invalidated, declared to be fraudulent or preferential, or are
required to be repaid to a collateral agent, receiver or any other Person under
the Bankruptcy Code or under state, federal or common law, then, to the extent
the payments or Proceeds are so repaid, the Secured Debt or part thereof which
was intended to be satisfied shall be revived and will continue to be in full
force and effect as if those payments or Proceeds had never been received by
such Secured Party.

 

SECTION 9.      OTHER PROVISIONS.

 

Section 9.1          Amendments, Supplements and Waivers.

 

(a)           Except as set forth in Section 9.1(b), this Agreement
may not be amended, revised, restated or supplemented without the prior written
consent of each Required Lender Representative, BMCA and the Collateral Agent;
provided, further, that Section 4.2

 

26

 

shall not be amended, revised, restated or
supplemented in a manner which adversely affects any Hedge Bank without the
prior written consent of such Hedge Bank.

 

(b)           The parties hereto, at any time and from time to time, may
enter into additional Security Documents or one or more agreements supplemental
hereto or to any Security Document, in form satisfactory to the Collateral
Agent:

 

(i)            to
mortgage, pledge or grant a security interest in personal property of a type or
category which is set forth in Section 1 of the Security Agreement or in
any real property in favor of the Collateral Agent as additional security for
the Secured Debt pursuant to any Security Document, or

 

(ii)           to
cure any ambiguity, to correct or supplement any provision herein or in any
Security Document which may be defective or inconsistent with any other
provision herein or therein or make any other amendment or modification of any
Security Document.

 

Section 9.2          Notices.  All notices, requests, demands and other
communications provided for or permitted hereunder shall be in writing
(including telecopy), shall be sent by mail, telecopy or hand delivery and,
except as otherwise provided in this Agreement, the cost thereof shall be for
the sole account of the Grantors and shall be added to the Obligations,

 

(a)           If to any signatory hereto, to the address of such signatory
set forth on Schedule A.

 

(b)           If to any other Secured Party, to such Secured Party’s
Lender Representative set forth on 

Schedule A.

 

All such notices, requests, demands and communications shall, to be
effective hereunder, be in writing or by a telecopy device capable of creating
a written record, and shall be deemed to have been given or made when delivered
by hand or five days after its deposit in the mail, first class or air postage
prepaid, or in the case of notice by such a telecopy device, when properly
transmitted if on the same day the sender sends a confirming copy of such
notice by a recognized overnight delivery service (charges prepaid); provided,
however, that any notice, request, demand or other communication to the
Collateral Agent shall not be effective until received.

 

Section 9.3          Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction; provided that this Agreement shall be construed so as
to give effect to the intention expressed in Section 3.9.

 

Section 9.4          Dealings with the Grantors.  Upon any application or demand by BMCA to the
Collateral Agent to take or permit any action under any of the provisions of
this Agreement or any Security Document BMCA shall furnish to the Collateral
Agent, with copies to each Lender Representative, a certificate signed by a
Responsible Officer of BMCA stating that all conditions precedent, if any,
provided for in this Agreement or any Security Document relating to the
proposed action have been complied with, except that in the case of any such

 

27

 

application or demand as to which the furnishing of
such documents is specifically required by any provision of this Agreement or
any Security Document, relating to such particular application or demand, no
additional certificate or opinion need be furnished.

 

Section 9.5          Claims Against the Collateral Agent.  Any claims or causes of action which a
Secured Party or a Grantor shall have against the Collateral Agent shall
survive the termination of this Agreement and the release of the Collateral
hereunder.

 

Section 9.6          Binding Effect.

 

(a)           This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and shall inure to the benefit of the
Beneficiaries and their respective successors and assigns, and nothing herein
or in any Security Document is intended or shall be construed to give any other
Person any right, remedy or claim under, to or in respect of this Agreement,
any Security Document or the Collateral.

 

(b)           The Grantors have jointly and severally agreed in Sections
5.3, 5.4, 5.5 and 5.6 to pay on demand the Collateral Agent’s Fees.  In the event the Grantors fail to pay the
Collateral Agent’s Fees, each Secured Party (other than the Collateral Agent)
has agreed in Section 8.2 to pay the Collateral Agent’s Fees, ratably in
accordance with the proportion of the Secured Debt held by such Secured Party
or, if there has been any recovery of the Secured Debt, in accordance with the proportion
of (i) the Secured Debt recovered by such Secured Party to (ii) the
aggregate amount of Secured Debt recovered by all Beneficiaries, all as set
forth in this Agreement.

 

Section 9.7          Conflict with Other Agreements.  The parties agree that in the event of any
conflict between the provisions of this Agreement and the provisions of any of
the Security Documents, the provisions of this Agreement shall control.  Notwithstanding anything to the contrary
contained in this Agreement, the Lender Representatives shall have all rights
and protections afforded to them in their respective Credit Documents.

 

Section 9.8          Governing Law.  This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of New
York.

 

Section 9.9          Counterparts.  This Agreement may be executed in separate
counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.  Delivery of an executed counterpart of this
Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Agreement.

 

Section 9.10        Consent To Jurisdiction.  EACH OF THE GRANTORS HEREBY IRREVOCABLY
SUBMITS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
THE BOROUGH OF MANHATTAN IN NEW YORK CITY IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO ANY SECURITY DOCUMENTS AND EACH HEREBY IRREVOCABLY AGREES
THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES, FOR ITSELF AND IN RESPECT

 

28

 

OF ITS PROPERTY, ANY OBJECTION IT MAY NOW OR
HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING IN THIS SECTION SHALL LIMIT THE
RIGHT OF THE COLLATERAL AGENT TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE
COURTS OF ANY OTHER JURISDICTION.  ANY
JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE COLLATERAL AGENT OR ANY SECURED
PARTY OR ANY AFFILIATE OF THE COLLATERAL AGENT OR ANY SECURED PARTY INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO OR
CONNECTED WITH ANY COLLATERAL DOCUMENT SHALL BE BROUGHT ONLY IN A FEDERAL OR
STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY.

 

EACH GRANTOR AGREES THAT SERVICE MAY BE MADE BY MAILING OR
DELIVERING A COPY OF THE SUMMONS AND COMPLAINT AND ANY OTHER PROCESS WHICH MAY BE
SERVED IN ANY SUCH ACTION OR PROCEEDING TO SUCH GRANTOR AT ITS ADDRESS FOR
NOTICES HEREUNDER.  EACH GRANTOR AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.

 

SECTION 9.11       Waiver
of Jury Trial.  EACH GRANTOR, LENDER
REPRESENTATIVE AND BY ITS ACCEPTANCE OF THE BENEFITS THEREOF, EACH BENEFICIARY
AND THE COLLATERAL AGENT HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH
ANY COLLATERAL DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

 

SECTION 9.12       USA
PATRIOT Act.  The parties hereto
acknowledge that in accordance with Section 326 of the USA PATRIOT Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as
amended, modified or supplemented from time to time, the “USA PATRIOT Act”), the
Collateral Agent, is required to obtain, verify, and record information that
identifies each person or legal entity that establishes a relationship or opens
an account with Deutsche Bank Trust Company Americas.  The parties to this Agreement agree that they
will provide the Collateral Agent with such information as it may request in
order for the Collateral Agent to satisfy the requirements of the USA PATRIOT
Act.

 

29

 

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

 

	
   

  	
  BUILDING
  MATERIALS CORPORATION OF AMERICA

  
	
   

  	
  BMCA ACQUISITION
  INC.

  
	
   

  	
  BMCA ACQUISITION
  SUB INC.

  
	
   

  	
  BMCA FRESNO LLC

  
	
   

  	
  BMCA FRESNO II
  LLC

  
	
   

  	
  BMCA GAINESVILLE
  LLC

  
	
   

  	
  BMCA INSULATION
  PRODUCTS INC.

  
	
   

  	
  BMCA QUAKERTOWN
  INC.

  
	
   

  	
  BUILDING
  MATERIALS INVESTMENT CORPORATION

  
	
   

  	
  BUILDING
  MATERIALS MANUFACTURING CORPORATION

  
	
   

  	
  DUCTWORK
  MANUFACTURING CORPORATION

  
	
   

  	
  GAF LEATHERBACK
  CORP.

  
	
   

  	
  GAF MATERIALS
  CORPORATION (CANADA)

  
	
   

  	
  GAF PREMIUM
  PRODUCTS INC.

  
	
   

  	
  GAF REAL
  PROPERTIES, INC.

  
	
   

  	
  GAFTECH
  CORPORATION

  
	
   

  	
  HBP ACQUISITION
  LLC

  
	
   

  	
  LL BUILDING
  PRODUCTS INC.

  
	
   

  	
  PEQUANNOCK
  VALLEY CLAIM SERVICE COMPANY, INC.

  
	
   

  	
  SOUTH PONCA
  REALTY CORP.

  
	
   

  	
  WIND GAP REAL
  PROPERTY ACQUISITION CORP.

  

 

 

	
   

  	
  By:

  	
    /John
  M. Maitner/

  
	
   

  	
  Name:  John
  M. Maitner

  
	
   

  	
  Title:  Vice
  President and Treasurer

  

 

 

	
   

  	
  DEUTSCHE BANK
  TRUST COMPANY AMERICAS, as

  Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /Kerry
  Warwicker/

  
	
   

  	
  Name:  Kerry
  Warwicker

  
	
   

  	
  Title:  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Randy Kahn/

  
	
   

  	
  Name:  Randy
  Kahn

  
	
   

  	
  Title:  Vice
  President

  

 

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK BRANCH, as

  Administrative Agent under the Credit Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Marguerite Sutton/

  
	
   

  	
  Name: Marguerite Sutton

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Carin Keegan/

  
	
   

  	
  Name: Carin Keegan

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  THE BANK OF NEW YORK, as Trustee under the 2007

  Notes Indenture

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Franca M. Ferrara/

  
	
   

  	
  Name: Franca M. Ferrara

  
	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,
  as Trustee under the 2008

  Notes Indenture

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Franca M.
  Ferrara/

  
	
   

  	
  Name: Franca M.
  Ferrara

  
	
   

  	
  Title: Assistant
  Vice President

  

 

 

	
   

  	
  WILMINGTON TRUST
  COMPANY, as Trustee under the

  2014 Notes Indenture

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /Kristin L.
  Moore/

  
	
   

  	
  Name: Kristin L.
  Moore

  
	
   

  	
  Title: Senior
  Financial Services OfficerExhibit 10.39

 

EXECUTION VERSION

 

SECURITY AGREEMENT

 

Dated February 22, 2007

 

From

 

The Grantors referred to herein

 

as Grantors

 

to

 

Deutsche Bank Trust Company Americas

 

as Collateral Agent

 

 

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

  
	
   

  	
   

  	
   

  
	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1. Grant of Security

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2. Security for Obligations

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 3. Grantors Remain Liable

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 4. Delivery and Control of Security Collateral

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 5. Maintaining the Account Collateral

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 6. Representations and Warranties

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 7. Further Assurances

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 8. As to Equipment and Inventory

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 9. Insurance

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 10. Post-Closing Changes; Collections on Receivables and
  Related Contracts

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 11. As to Intellectual Property Collateral

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 12. Voting Rights; Dividends; Etc.

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 13. As to Letter-of-Credit Rights

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 14. Commercial Tort Claims

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 15. Transfers and Other Liens; Additional Shares

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 16. Collateral Agent Appointed Attorney in Fact

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 17. Collateral Agent May Perform

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 18. The Collateral Agent’s Duties

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 19. Remedies

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  Section 20. Indemnity and Expenses

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 21. Amendments; Waivers; Additional Grantors; Etc.

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 22. Notices, Etc.

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 23. Continuing Security Interest

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 24. Release; Termination

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 25. Intercreditor

  	
   

  	
  26

  

 

i

 

	
  Section 26. Execution in Counterparts

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 27. Governing Law

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 28. Jurisdiction, Etc.

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 29. Waiver of Jury Trial

  	
   

  	
  27

  

 

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  -

  	
  Investment
  Property

  
	
  Schedule II

  	
  -

  	
  Pledged Deposit
  Accounts

  
	
  Schedule III

  	
  -

  	
  Intellectual
  Property

  
	
  Schedule IV

  	
  -

  	
  Commercial Tort
  Claims

  
	
  Schedule V

  	
  -

  	
  Location, Chief
  Executive Office, Type of Organization, Jurisdiction of Organization and
  Organizational Identification Number

  
	
   

  	
   

  
	
  Schedule VI

  	
  -

  	
  Locations of Equipment
  and Inventory

  
	
  Schedule VII

  	
  -

  	
  Letters of
  Credit

  
	
  Schedule VIII

  	
  -

  	
  Post-Closing
  Matters

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of
  Intellectual Property Security Agreement

  
	
  Exhibit B

  	
  -

  	
  Form of
  Intellectual Property Security Agreement Supplement

  
	
  Exhibit C

  	
  -

  	
  Form of
  Security Agreement Supplement

  

 

ii

 

SECURITY AGREEMENT

 

SECURITY AGREEMENT
dated February 22, 2007 made by BUILDING MATERIALS CORPORATION OF AMERICA,
a Delaware corporation (the “Company”), and the other Persons listed on the signature
pages hereof (the Company and the Persons so listed being, collectively,
the “Grantors”),
to DEUTSCHE BANK TRUST COMPANY AMERICAS (“DBTCA”), as collateral agent for the Secured
Parties (as hereinafter defined) and DBTCA in such capacity, and together with
any successor collateral agent appointed pursuant to the Collateral Agency
Agreement (as hereinafter defined), the “Collateral Agent”).

 

PRELIMINARY
STATEMENTS.

 

(1) The Company and certain of its Subsidiaries have entered into
a Term Loan Agreement dated as of February 22, 2007 (as amended, restated,
supplemented, waived or otherwise modified, refinanced or replaced from time to
time, being the “Credit
Agreement”) with the Lenders and the Agents (each as defined
therein).

 

(2) The Company is a party to the Revolving Credit Agreement dated
as of February 22, 2007 (as amended, restated, supplemented, waived, or
otherwise modified, refinanced or replaced from time to time, the “Revolving Credit Agreement”),
among the Company and certain of its Subsidiaries, the lender parties party
thereto from time to time, Deutsche Bank AG New York Branch, as collateral
monitoring agent and administrative agent, swingline lender and letter of
credit issuer, Bear Stearns & Co. Inc., as syndication agent, J.P.
Morgan Securities Inc., as documentation agent, and Deutsche Bank Securities
Inc., Bear Stearns & Co. Inc. and J.P. Morgan Securities Inc., as
joint lead arrangers and joint book managers.

 

(3) The Company is party to (i) an indenture dated as of October 20,
1997 (as amended, restated, supplemented, waived, or otherwise modified,
refinanced or replaced from time to time, the “2007 Notes Indenture”), among the
Company, the Guarantors identified therein and The Bank of New York, as trustee
pursuant to which certain 8% senior notes due 2007 (the “2007 Notes”) were
issued; (ii) an indenture dated as of December 3, 1998 (as amended,
restated, supplemented, waived or otherwise modified, refinanced or replaced
from time to time, the “2008
Notes Indenture”), among the Company, the Guarantors identified
therein and the Bank of New York, as Trustee pursuant to which certain 8%
senior notes due 2008 (the “2008 Notes”) were issued; and (iii) an indenture
dated as of July 26, 2004 (as amended, restated, supplemented, waived, or
otherwise modified, refinanced or replaced from time to time, the “2014 Notes Indenture”
and together with the 2007 Notes Indenture and the 2014 Notes Indenture, the “Existing Indentures”)
among the Company, the Guarantors identified therein and Wilmington Trust
Company, as Trustee, pursuant to which certain 7.75% senior notes (the “2014 Notes” and
together with the 2007 Notes and the 2008 Notes, the “Existing Notes”) were
issued.

 

(4) The holders of the Existing Notes were party to a certain
Amended and Restated Security Agreement dated July 9, 2003 (as amended,
amended and restated and supplemented or otherwise modified from time to time)
among the Company and certain of the Grantors and Citibank, N.A. as collateral
agent pursuant to which the obligations under the Existing Notes were secured
by certain assets constituting Collateral (as hereinafter defined).  

 

 

The holders of the
2007 Notes, the holders of the 2008 Notes and the holders of the 2014 Notes
along with the trustees under the Existing Indentures, together with the
Lenders and Agents party to the Credit Agreement and the Hedge Banks shall be
the “Secured Parties” hereunder.

 

(5) Deutsche Bank AG New York Branch, as Administrative Agent for
the Lenders and Agents party to the Credit Agreement from time to time, The
Bank of New York, as Trustee under the 2007 Notes Indenture and the 2008 Notes
Indenture, and Wilmington Trust Company, as Trustee under the 2014 Notes
Indenture, the Company and the other Grantors are party to the Collateral
Agency Agreement dated February 22, 2007 (as amended, restated,
supplemented, waived or otherwise modified or replaced from time to time, the “Collateral Agency Agreement”)
in which, among other things, the parties thereto have appointed DBTCA to act
as Collateral Agent on behalf of the Secured Parties for purposes of this
Agreement, the Revolver Intercreditor Agreement (as hereinafter defined) and
the General Intercreditor Agreement (as hereinafter defined).

 

(6) Each Grantor is the owner of the shares of stock or other
Equity Interests (the “Initial
Pledged Equity”) set forth opposite such Grantor’s name on and
as otherwise described in Part I of Schedule I hereto and issued by the
Persons named therein and of the indebtedness (the “Initial Pledged Debt”)
set forth opposite such Grantor’s name on and as otherwise described in Part II
of Schedule I hereto and issued by the obligors named therein.

 

(7) Each Grantor is the owner of the deposit accounts (the “Pledged Deposit Accounts”)
set forth opposite such Grantor’s name on Schedule II hereto.

 

(8) It is a condition precedent to the making of Term Loan
Advances under the Credit Agreement that the Grantors shall have granted the
security interest contemplated by this Agreement.  Each Grantor will derive substantial direct
and indirect benefit from the transactions contemplated by the Loan Documents.

 

(9) Terms defined in the Credit Agreement and not otherwise
defined in this Agreement are used in this Agreement as defined in the Credit
Agreement.  Further, unless otherwise
defined in this Agreement or in the Credit Agreement, terms defined in Article 8
or 9 of the UCC (as defined below) are used in this Agreement as such terms are
defined in such Article 8 or 9.  “UCC” means the
Uniform Commercial Code as in effect from time to time in the State of New
York; provided that, if
perfection or the effect of perfection or non perfection or the priority of the
security interest in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, “UCC” means the
Uniform Commercial Code as in effect from time to time in such other
jurisdiction for purposes of the provisions hereof relating to such perfection,
effect of perfection or non perfection or priority.

 

NOW, THEREFORE, in
consideration of the premises, and in order to induce the Lenders to make the
Term Loan Advances under the Credit Agreement and to induce the Hedge Banks to
enter into Secured Hedge Agreements from time to time each Grantor hereby
agrees with the Collateral Agent for the ratable benefit of the Secured Parties
as follows:

 

Section 1. Grant
of Security.  Each Grantor hereby
grants to the Collateral Agent, for the ratable benefit of the Secured Parties,
a security interest in such Grantor’s right, title and

 

2

 

interest in and to the following, in each case, as to each type of
property described below, whether now owned or hereafter acquired by such
Grantor, wherever located, and whether now or hereafter existing or arising
(collectively, the “Collateral”):

 

(a) all
equipment in all of its forms, including, without limitation, all machinery,
tools, motor vehicles, furniture and fixtures, and all parts thereof and all
accessions thereto, including, without limitation, computer programs and
supporting information that constitute equipment within the meaning of the UCC
(any and all such property being the “Equipment”);

 

(b) all
inventory in all of its forms, including, without limitation, (i) all raw
materials, work in process, finished goods and materials used or consumed in
the manufacture, production, preparation or shipping thereof, (ii) goods
in which such Grantor has an interest in mass or a joint or other interest or
right of any kind (including, without limitation, goods in which such Grantor
has an interest or right as consignee) and (iii) goods that are returned
to or repossessed or stopped in transit by such Grantor), and all accessions
thereto and products thereof and documents therefor, including, without
limitation, computer programs and supporting information that constitute
inventory within the meaning of the UCC (any and all such property being the “Inventory”);

 

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

 

(d) all
precious metals, including without limitation, platinum and rhodium, (any and
all such Property being the “Precious
Metals”) used in
the production of Inventory;

 

(e) the
following (the “Security
Collateral”):

 

(i)            the
Initial Pledged Equity and the certificates, if any, representing the Initial
Pledged Equity, and all dividends, distributions, return of capital, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the
Initial 

 

3

 

Pledged
Equity and all warrants, rights or options issued thereon or with respect
thereto;

 

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

 

(iii)          all
additional shares of stock and other Equity Interests from time to time
acquired by such Grantor in any manner (such shares and other Equity Interests,
together with the Initial Pledged Equity, being the “Pledged Equity”), and the certificates, if any, representing such
additional shares or other Equity Interests, and all dividends, distributions,
return of capital, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of such shares or other Equity Interests and all warrants, rights or
options issued thereon or with respect thereto;

 

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

 

(v)           any
securities account (the “Securities
Account”), any collateral account (the “Collateral Account”), all security entitlements with
respect to all financial assets from time to time credited to the Securities
Account or the Collateral Account, and all financial assets, and all dividends,
distributions, return of capital, interest, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such security entitlements or
financial assets and all warrants, rights or options issued thereon or with
respect thereto; and

 

(vi)          all
other investment property (including, without limitation, all (A) securities,
whether certificated or uncertificated, (B) security entitlements, (C) securities
accounts, (D) commodity contracts and (E) commodity accounts) in
which such Grantor has now, or acquires from time to time hereafter, any right,
title or interest in any manner, and the certificates or instruments, if any,
representing or evidencing such investment property, and all dividends,
distributions, return of capital, interest, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such investment property and all
warrants, rights or options issued thereon or with respect thereto;

 

(f) the
following (collectively, the “Account Collateral”):

 

4

 

(i)            the
Pledged Deposit Accounts, the Collateral Account and all funds and financial
assets from time to time credited thereto (including, without limitation, all
Cash Equivalents), and all certificates and instruments, if any, from time to
time representing or evidencing the Pledged Deposit Accounts or the Collateral
Account;

 

(ii)           all
promissory notes, certificates of deposit, checks and other instruments from
time to time delivered to or otherwise possessed by the Collateral Agent for or
on behalf of such Grantor in substitution for or in addition to any or all of
the then existing Account Collateral; and

 

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

 

(g) the
following (collectively, the “Intellectual Property Collateral”):

 

(i)            all
patents, patent applications, utility models and statutory invention
registrations, all inventions claimed or disclosed therein and all improvements
thereto (“Patents”);

 

(ii)           all
trademarks, service marks, domain names, trade dress, logos, designs, slogans,
trade names, business names, corporate names and other source identifiers,
whether registered or unregistered (provided that no security interest shall be
granted in United States intent-to-use trademark applications to the extent
that, and solely during the period in which, the grant of a security interest
therein would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together, in each case, with the
goodwill symbolized thereby (“Trademarks”);

 

(iii)          all
copyrights, including, without limitation, copyrights in Computer Software (as
hereinafter defined), internet web sites and the content thereof, whether
registered or unregistered (“Copyrights”);

 

(iv)          all
computer software, programs and databases (including, without limitation,
source code, object code and all related applications and data files), firmware
and documentation and materials relating thereto, together with any and all
maintenance rights, service rights, programming rights, hosting rights, test
rights, improvement rights, renewal rights and indemnification rights and any
substitutions, replacements, improvements, error corrections, updates and new
versions of any of the foregoing (“Computer Software”);

 

(v)           all
confidential and proprietary information, including, without limitation,
know-how, trade secrets, manufacturing and production processes and techniques,
inventions, research and development information, databases and data,
including, without limitation, technical data, financial, marketing and
business data, pricing and cost information, business and marketing plans and
customer and supplier lists and information (collectively, “Trade Secrets”), and 

 

5

 

all
other intellectual, industrial and intangible property of any type, including,
without limitation, industrial designs and mask works;

 

(vi)          all
registrations and applications for registration for any of the foregoing,
including, without limitation, those registrations and applications for
registration set forth in Schedule III hereto, together with all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and
reexaminations thereof ((i)-(vi) collectively, “IP Rights”);

 

(vii)         all
tangible embodiments of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding thereto throughout
the world and all other rights of any kind whatsoever of such Grantor accruing
thereunder or pertaining thereto;

 

(viii)        all
agreements, permits, consents, orders and franchises relating to the license,
development, use or disclosure of any of the foregoing to which such Grantor,
now or hereafter, is a party or a beneficiary, including, without limitation,
the agreements set forth in Schedule III hereto (“IP Agreements”); and

 

(ix)           any
and all claims for damages and injunctive relief for past, present and future
infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue
for and collect, or otherwise recover, such damages;

 

(h) the
commercial tort claims described in Schedule IV hereto (together with any
commercial tort claims as to which the Grantors have complied with the
requirements of Section 15, the “Commercial Tort Claims Collateral”);

 

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

 

(j) all
proceeds of, collateral for, income, royalties and other payments now or
hereafter due and payable with respect to, and supporting obligations relating
to, any and all of the Collateral (including, without limitation, proceeds,
collateral and supporting obligations that constitute property of the types
described in clauses (a) through (i) of this Section 1) and, to
the extent not otherwise included, all (A) payments under insurance
(whether or not the Collateral Agent is the loss payee thereof), or any
indemnity, warranty or guaranty, payable by reason of loss or damage to or
otherwise with respect to any of the foregoing Collateral, and (B) cash
(any and all such property being the “Proceeds”).

 

Notwithstanding
anything herein to the contrary, in no event shall the Collateral include, and
no Grantor shall be deemed to have granted a security interest in, (a) any
Intellectual Property Collateral, if the grant of such security interest shall
constitute or result in the abandonment, invalidation or rendering
unenforceable any right, title or interest of such Grantor therein; (b) in
any license, contract or agreement to which such Grantor is a party or any of
its rights or 

 

6

 

interests
thereunder, including, without limitation, with respect to any pledged
partnership interests or any pledged limited liability company interests, to
the extent, but only to the extent, that such a grant would, under the terms of
such license, contract or agreement (including, without limitation, any
partnership agreements or any limited liability company agreements), or
otherwise, is prohibited by or result in a breach or termination of the terms
of, or constitute a default under or termination of any such license, contract
or agreement (other than to the extent that any such term would be rendered
ineffective pursuant to Section 9-406 of the UCC (or any successor
provision) of any relevant jurisdiction or any other applicable law (including
the Bankruptcy Code) or principles of equity) or would otherwise constitute a
violation of law, regulation or policy; provided, however, that immediately upon the ineffectiveness, lapse or
termination of any such provision, the Collateral shall include, and each
Grantor shall be deemed to have granted a security interest in, all such rights
and interests as if such provision had never been in effect; (c) in any of
the outstanding capital stock of a “controlled foreign corporation” as defined
in the Internal Revenue Code of 1986, as amended from time to time (each, a “Controlled Foreign Corporation”), in
excess of 65% of the voting power of all classes of capital stock of such
controlled foreign corporation entitled to vote; (d) the Chester
Equipment; or (e) all equipment and other property to the extent, but only
to the extent, that such a grant would, under the terms of any contract or
agreement to which such Grantor is a party in connection with certain
industrial revenue obligations, be prohibited by or would otherwise result in a
breach or termination of the terms of, or constitute a default under or
termination of any such contract or agreement or would otherwise constitute a
violation of law, regulation or policy; provided, however, that immediately upon the ineffectiveness, lapse or
termination of any such provision precluding the grant of security interest on
such property, the Collateral shall include, and each Grantor shall be deemed
to have granted a security interest in, all such rights and interests as if
such provision had never been in effect.

 

Section 2. Security
for Obligations.  This Agreement
secures, in the case of each Grantor, the payment of all Obligations of such
Grantor now or hereafter existing under the Loan Documents and the Existing
Indentures, whether direct or indirect, absolute or contingent, and whether for
principal, reimbursement obligations, interest, fees, premiums, penalties,
indemnifications, contract causes of action, costs, expenses or otherwise (all
such Obligations being the “Secured Obligations”). 
Without limiting the generality of the foregoing, this Agreement
secures, as to each Grantor, the payment of all amounts that constitute part of
the Secured Obligations and would be owed by such Grantor to any Secured Party
under the Loan Documents or the Existing Indentures but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy, reorganization
or similar proceeding involving a Loan Party.

 

Section 3. Grantors
Remain Liable.  Anything herein to
the contrary notwithstanding, (a) each Grantor shall remain liable under
the contracts and agreements included in such Grantor’s Collateral to the
extent set forth therein to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b) the
exercise by the Collateral Agent of any of the rights hereunder shall not
release any Grantor from any of its duties or obligations under the contracts
and agreements included in the Collateral and (c) no Secured Party shall
have any obligation or liability under the contracts and agreements included in
the Collateral by reason of this Agreement or any other Loan Document or the
Existing Indentures, nor shall any Secured Party be obligated to perform any of
the obligations or

 

7

 

duties of any Grantor thereunder or to take any action to collect or
enforce any claim for payment assigned hereunder.

 

Section 4. Delivery
and Control of Security Collateral.  (a) All
certificates or instruments representing or evidencing Security Collateral
shall be delivered to and held by or on behalf of the Collateral Agent pursuant
hereto and shall be in suitable form for transfer by delivery, or shall be
accompanied by duly executed instruments of transfer or assignment in blank,
all in form and substance reasonably satisfactory to the Collateral Agent.  The Collateral Agent shall have the right at
any time to exchange certificates or instruments representing or evidencing
Security Collateral for certificates or instruments of smaller or larger
denominations.

 

(b) With respect to any Security Collateral that constitutes an
uncertificated security, if requested by the Collateral Agent, the relevant
Grantor will cause the issuer thereof either (i) to register the
Collateral Agent as the registered owner of such security or (ii) to agree
with such Grantor and the Collateral Agent that such issuer will comply with
instructions with respect to such security originated by the Collateral Agent
without further consent of such Grantor, such agreement to be in form and
substance reasonably satisfactory to the Collateral Agent (such agreement being
an “Uncertificated Security Control Agreement”).

 

(c) With respect to the Securities Account, the Collateral Account
and any Security Collateral that constitutes a security entitlement as to which
the financial institution acting as Collateral Agent hereunder is not the
securities intermediary, if reasonably requested by the Collateral Agent, the
relevant Grantor will cause the securities intermediary with respect to such
Account or security entitlement either (i) to identify in its records the
Collateral Agent as the entitlement holder thereof or (ii) to agree with
such Grantor and the Collateral Agent that such securities intermediary will
comply with entitlement orders originated by the Collateral Agent without
further consent of such Grantor, such agreement to be in form and substance
reasonably satisfactory to the Collateral Agent (a “Securities Account Control Agreement” or “Securities/Deposit Account Control Agreement,”
respectively).

 

(d) During the continuance of an Event of Default, the Collateral
Agent shall have the right, at any time and without notice to any Grantor, to
transfer to or to register in the name of the Collateral Agent or any of its
nominees any or all of the Security Collateral, subject only to the revocable
rights specified in Section 12(a). 
In addition, during the continuance of an Event of Default, the
Collateral Agent shall have the right at any time to convert Security
Collateral consisting of financial assets credited to the Securities Account or
the Collateral Account to Security Collateral consisting of financial assets
held directly by the Collateral Agent, and to convert Security Collateral
consisting of financial assets held directly by the Collateral Agent to
Security Collateral consisting of financial assets credited to the Securities
Account or the Collateral Account.

 

(e) Upon the reasonable request of the Collateral Agent following
the occurrence and during the continuance of an Event of Default, each Grantor
will notify each issuer of Security Collateral granted by it hereunder that
such Security Collateral is subject to the security interest granted
hereunder.  For purposes hereof, an “Event of Default” means an “Event of
Default” as defined in the Credit Agreement or the Existing Indentures.

 

8

 

Section 5. Maintaining
the Account Collateral.  Subject to
the rights of the Collateral Monitoring Agent under the Revolving Credit
Agreement, the Security Agreement (as defined in the Revolving Credit
Agreement, the “Revolver Security Agreement”)
and the Revolver Intercreditor Agreement (as hereinafter defined), so long as
any Term Loan Advance or any other Obligation (other than contingent
obligations) of any Loan Party under any Loan Document or any Existing
Indenture shall remain unpaid or any Lender shall have any Term Loan
Commitment:

 

(a) Each
Grantor will maintain deposit accounts only with the financial institution
acting as Collateral Agent hereunder or with a bank (a “Pledged Account Bank”) that has agreed with such Grantor and the Collateral Agent
to comply with instructions originated by the Collateral Agent directing the
disposition of funds in such deposit account without the further consent of
such Grantor, such agreement to be in form and substance satisfactory to the
Collateral Agent (a “Deposit
Account Control Agreement”);
provided, however, this Section 5(a) shall not apply to deposit
accounts (i) in which all funds therein are swept on a daily basis and
only to another deposit account over which there is in effect a Deposit Account
Control Agreement or (ii) operated solely as a payroll account, provided, that no funds or investments in
excess of $10,000,000 shall at any time be on deposit in the payroll accounts
in the aggregate; provided, further, however,
the Company shall have forty-five days (unless otherwise agreed by the
Administrative Agent) from the Closing Date to comply with this requirements of
this Section 5.

 

(b) Subject
to Section 5(a), each Grantor shall instruct all of its account debtors to
remit all payments to (i) the applicable “P.O. Boxes” or “Lockbox
Addresses” of the applicable Pledged Account Banks with respect to all accounts
of such account debtor, which remittances shall be collected by the applicable
Pledged Account Banks and deposited into the applicable Pledged Deposit Account
or (ii) any other deposits accounts in which all funds therein are swept
on a daily basis and only to another deposit account over which there is in
effect a Deposit Account Control Agreement.

 

(c) During
the continuance of an Event of Default, upon notice from the Administrative
Agent or the respective trustee under the respective Existing Indenture, upon
the terms and subject to the conditions set forth in the Deposit Account
Control Agreement, all amounts held in all of the Pledged Deposit Accounts by
the Grantors shall be wired by the close of business on each Business Day into
an account with the Collateral Agent (the “Concentration Account”) and all collected
amounts held in the Concentration Account shall be applied as provided in Section 19.

 

Section 6. Representations
and Warranties.  Each Grantor
represents and warrants as follows:

 

(a) Such
Grantor’s exact legal name, location, chief executive office, type of
organization, jurisdiction of organization and organizational 

 

9

 

identification
number is set forth in Schedule V hereto. 
Such Grantor has no trade names other than as listed on Schedule III
hereto.

 

(b) Such
Grantor is the legal and beneficial owner of the Collateral granted or
purported to be granted by it free and clear of any Lien, claim, option or
right of others, except for the security interest created under this Agreement
or permitted under the Credit Agreement and the Existing Indentures.  No effective financing statement or other
instrument similar in effect covering all or any part of such Collateral or
listing such Grantor or any trade name of such Grantor as debtor is on file in
any recording office, except such as may have been filed in favor of the
Collateral Agent relating to the Loan Documents and the Existing Indentures or
as otherwise permitted under the Credit Agreement and the Existing Indentures.

 

(c) All
of the Equipment and Inventory of such Grantor are located at the places
specified therefor in Schedule VI hereto.

 

(d) None
of the Receivables is evidenced by a promissory note or other instrument that
has not been delivered to the Collateral Agent or the Collateral Monitoring
Agent under the Revolving Security Agreement.

 

(e) If
such Grantor is an issuer of Security Collateral, such Grantor confirms that it
has received notice of the security interest granted hereunder.

 

(f) The
Pledged Equity pledged by such Grantor and issued by a Grantor hereunder has
been duly authorized and validly issued and is fully paid and non
assessable.  To the best knowledge of
such Grantor, the Pledged Equity pledge by such Grantor issued by a non-Grantor
has been duly authorized and validly issued and is fully paid or
non-assessable.  The Pledged Debt pledged
by such Grantor hereunder and issued by a Grantor has been duly authorized,
authenticated or issued and delivered, is the legal, valid and binding
obligation of the issuer thereof, is evidenced by one or more promissory notes
(which promissory notes have been delivered to the Collateral Agent) and such
issuer is not in default under the terms of such Pledged Debt.  To the best knowledge of such Grantor, the
Pledged Debt pledged by such Grantor issued by a non-Grantor has been duly authorized,
authenticated or issued and delivered, is the legal, valid and binding
obligation of the issuers thereof, is evidenced by one or more promissory notes
(which promissory notes have been delivered to the Collateral Agent) and such
issuer is not in default under the terms of such Pledged Debt.

 

(g) The
Initial Pledged Equity pledged by such Grantor constitutes the percentage of
the issued and outstanding Equity Interests of the issuers thereof indicated on
Schedule I hereto.  The Initial Pledged
Debt constitutes all of the outstanding indebtedness owed to such Grantor by
the issuers thereof and is outstanding in the principal amount indicated on
Schedule I hereto.

 

10

 

(h) Such
Grantor has no investment property, other than the investment property listed
on Schedule I hereto and additional investment property as to which such
Grantor has complied with the requirements of Section 4.

 

(i) Such
Grantor has no deposit accounts, other than the Pledged Deposit Accounts listed
on Schedule II hereto and additional Pledged Deposit Accounts as to which such
Grantor has complied with the applicable requirements of Section 5.

 

(j) Such
Grantor is not a beneficiary or assignee under any letter of credit, other than
the letters of credit described in Schedule VII hereto and additional letters
of credit as to which such Grantor has complied with the requirements of Section 13.

 

(k) This
Agreement creates in favor of the Collateral Agent for the benefit of the
Secured Parties a valid security interest in the Collateral granted by such
Grantor, securing the payment of the Secured Obligations; except for the filing
of financing statements under the UCC or the other filings referred to in
paragraph (l) below, all filings and other actions necessary to perfect
the security interest in the Collateral granted by such Grantor have been duly
made or taken and are in full force and effect; and such security interest is
first priority with the exception of the security interest in the Revolver
Collateral (as defined under the General Intercreditor Agreement (as
hereinafter defined)), which is second priority.

 

(l) No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is
required for (i) the grant by such Grantor of the security interest
granted hereunder or for the execution, delivery or performance of this
Agreement by such Grantor, (ii) the perfection or maintenance of the
security interest created hereunder (including the first priority nature of
such security interest), except for the filing of financing and continuation
statements under the UCC, which financing statements have been duly filed and
are in full force and effect, actions necessary to obtain control of Collateral
as provided in Sections 9-104, 9-106 and 9-107 of the UCC but excluding actions
necessary to perfect the Collateral Agent’s security interest with respect to
Collateral evidenced by a certificate of title, and the recordation of the
Intellectual Property Security Agreements referred to in Section 11(f) with
the U.S. Patent and Trademark Office and the U.S. Copyright Office, which
Agreements have been duly recorded and are in full force and effect, and the
actions described in Section 4 with respect to the Security Collateral,
which actions have been taken and are in full force and effect, or (iii) the
exercise by the Collateral Agent of its voting or other rights provided for in
this Agreement or the remedies in respect of the Collateral pursuant to this
Agreement, except as may be required in connection with the disposition of any
portion of the Security Collateral by laws affecting the offering and sale of
securities generally.

 

11

 

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

 

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

 

(i)            The
operation of such Grantor’s business as currently conducted or as now
contemplated to be conducted and the use of the Intellectual Property
Collateral in connection therewith do not, to such Grantor’s knowledge,
conflict with, infringe, misappropriate, dilute, misuse or otherwise violate
the intellectual property rights of any third party.

 

(ii)           Such
Grantor is the exclusive owner of all right, title and interest in and to the
Intellectual Property Collateral, except as set forth on Schedule III(a) hereto,
and is entitled to use all Intellectual Property Collateral subject only to the
terms of the IP Agreements.

 

(iii)          The
Intellectual Property Collateral set forth on Schedule III hereto includes all
of the patents, patent applications, domain names, trademark registrations and
applications, and copyright registrations and applications owned by such
Grantor and all IP Agreements to which such Grantor is a party or beneficiary
as of the date hereof.

 

(iv)          The
Intellectual Property Collateral material to the business of the Grantors is
subsisting and has not been adjudged invalid or unenforceable in whole or part,
and to the best of such Grantor’s knowledge, is valid and enforceable.  Such Grantor is not aware of any uses of any
item of Intellectual Property Collateral that could be expected to lead to such
item becoming invalid or unenforceable.

 

(v)           As
to each item of Intellectual Property Collateral material to the business of
the Grantors, such Grantor has made or performed all filings, recordings and
other acts and has paid all required fees and taxes to maintain and protect its
interest in each such item of Intellectual Property Collateral in full force
and effect throughout the world, including, without limitation, recordations of
any of its interests in the Patents and Trademarks with the U.S. Patent and
Trademark Office and in corresponding national and international patent
offices, and recordation of any of its interests in the Copyrights with the
U.S. Copyright Office and in corresponding national and international copyright
offices.  Such Grantor has used proper
statutory notice in connection with its use of each patent, trademark and
copyright in the Intellectual Property Collateral material to the business of
the Grantors.

 

(vi)          No
claim, action, suit, investigation, litigation or proceeding has been asserted
or is pending or, to such Grantor’s knowledge, threatened against such Grantor (A) based
upon or challenging or seeking to deny or restrict the Grantor’s rights in or
use of any of the Intellectual Property Collateral material to 

 

12

 

the
business of the Grantors, (B) to such Grantor’s knowledge, alleging that
the Grantor’s rights in or use of the Intellectual Property Collateral or that
any services provided by, processes used by, or products manufactured or sold
by, such Grantor infringe, misappropriate, dilute, misuse or otherwise violate
any patent, trademark, copyright or any other proprietary right of any third
party, or (C) alleging that the Intellectual Property Collateral is being
licensed or sublicensed in violation or contravention of the terms of any
license or other agreement.  To such
Grantor’s knowledge, no Person is engaging in any activity that infringes,
misappropriates, dilutes, misuses or otherwise violates the Intellectual
Property Collateral or the Grantor’s rights in or use thereof.  Except as set forth on Schedule III hereto,
such Grantor has not granted any license, release, covenant not to sue,
non-assertion assurance, or other right to any Person with respect to any part
of the Intellectual Property Collateral. 
The consummation of the transactions contemplated by the Transaction
Documents will not result in the termination or impairment of any of the
Intellectual Property Collateral.

 

(vii)         With
respect to each IP Agreement, to such Grantor’s knowledge: (A) such IP
Agreement is valid and binding and in full force and effect and represents the
entire agreement between the respective parties thereto with respect to the
subject matter thereof; (B) such IP Agreement will not cease to be valid
and binding and in full force and effect on terms identical to those currently
in effect as a result of the rights and interest granted herein, nor will the
grant of such rights and interest constitute a breach or default under such IP
Agreement or otherwise give any party thereto a right to terminate such IP
Agreement; (C) such Grantor has not received any notice of termination or
cancellation under such IP Agreement; (D) such Grantor has not received any
notice of a breach or default under such IP Agreement, which breach or default
has not been cured; (E) such Grantor has not granted to any other third
party any rights, adverse or otherwise, under such IP Agreement; and (F) neither
such Grantor nor any other party to such IP Agreement is in breach or default
thereof in any material respect, and no event has occurred that, with notice or
lapse of time or both, would constitute such a breach or default or permit
termination, modification or acceleration under such IP Agreement.

 

(viii)        To
the best of such Grantor’s knowledge, (A) none of the Trade Secrets of
such Grantor has been used, divulged, disclosed or appropriated to the
detriment of such Grantor for the benefit of any other Person other than such
Grantor; (B) no employee, independent contractor or agent of such Grantor
has misappropriated any trade secrets of any other Person in the course of the
performance of his or her duties as an employee, independent contractor or
agent of such Grantor; and (C) no employee, independent contractor or
agent of such Grantor is in default or material breach of any term of any
employment agreement, non-disclosure agreement, assignment of inventions
agreement or similar agreement or contract relating in any way to the
protection, ownership, development, use or transfer of such Grantor’s
Intellectual Property Collateral.

 

13

 

(ix)           No
Grantor or Intellectual Property Collateral is subject to any outstanding
consent, settlement, decree, order, injunction, judgment or ruling restricting
the use of any Intellectual Property Collateral that is material to the
business of the Grantors or that would impair the validity or enforceability of
such material Intellectual Property Collateral.

 

(x)            Such
Grantor owns, or possesses the valid right to use, all Intellectual Property
Collateral used in or otherwise necessary to carry on such Grantor’s business
as currently conducted or as now contemplated to be conducted, all of which
rights shall survive unchanged the consummation of the transactions
contemplated by this Agreement.  There
are no other IP Rights that are material to or necessary for the operation of
the Grantors’ business or for the continued operation of the Grantors’ business
immediately after the date hereof in substantially the same manner as operated
prior to the date hereof.

 

(o) Such
Grantor has no commercial tort claims as of the date hereof other than those
listed in Schedule IV hereto and additional commercial tort claims as to which
such Grantor has complied with the requirements of Section 14.

 

Section 7. Further
Assurances.  (a)  Each Grantor
agrees that from time to time, at the expense of such Grantor, such Grantor
will promptly execute and deliver, or otherwise authenticate, all further
instruments and documents, and take all further action that may be necessary or
desirable, or that the Collateral Agent may reasonably request, in order to
perfect and protect any pledge or security interest granted or purported to be
granted by such Grantor hereunder or to enable the Collateral Agent to exercise
and enforce its rights and remedies hereunder with respect to any Collateral of
such Grantor.  Without limiting the
generality of the foregoing, each Grantor will promptly with respect to
Collateral of such Grantor, at the reasonable request of the Collateral
Agent:  (i) mark conspicuously each
document included in Inventory, each chattel paper included in Receivables,
each Related Contract, and, at the reasonable request of the Collateral Agent,
each of its records pertaining to such Collateral with a legend, in form and
substance reasonably satisfactory to the Collateral Agent, indicating that such
document, chattel paper, Related Contract, or Collateral is subject to the security
interest granted hereby; (ii) if any such Collateral shall be evidenced by
a promissory note or other instrument, deliver and pledge to the Collateral
Agent hereunder such note or instrument duly indorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance
satisfactory to the Collateral Agent; (iii) file such financing or
continuation statements, or amendments thereto, and such other instruments or
notices, as may be necessary or desirable, or as the Collateral Agent may
reasonably request, in order to perfect and preserve the security interest
granted or purported to be granted by such Grantor hereunder; and (iv) deliver
to the Collateral Agent evidence that all other actions that the Collateral
Agent may deem reasonably necessary or desirable in order to perfect and
protect the security interest granted or purported to be granted by such
Grantor under this Agreement have been taken.

 

(b) Each Grantor hereby authorizes the Collateral Agent or its
agent, sub-agent or designee to file one or more financing or continuation
statements, and amendments thereto, including, without limitation, one or more
financing statements indicating that such financing 

 

14

 

statements
cover all assets or all personal property (or words of similar effect) of such
Grantor, regardless of whether any particular asset described in such financing
statements falls within the scope of the UCC or the granting clause of this
Agreement.  A photocopy or other
reproduction of this Agreement shall be sufficient as a financing statement
where permitted by law.  Each Grantor
ratifies its authorization for the Collateral Agent or its agent, sub-agent or
designee to have filed such financing statements, continuation statements or
amendments filed prior to the date hereof.

 

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

 

Section 8. As
to Equipment and Inventory.  (a) 
Each Grantor will cause its Equipment to be maintained and preserved in the
same condition, repair and working order as when new, ordinary wear and tear
excepted, and will forthwith, or in the case of any loss or damage to any of
such Equipment as soon as practicable after the occurrence thereof, make or
cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable to such end.

 

(b) Each Grantor will pay promptly when due all property and other
taxes, assessments and governmental charges or levies imposed upon, and all
claims (including, without limitation, claims for labor, materials and
supplies) against, its Equipment and Inventory, except to the extent payment
thereof is not required by Section 5.01(b) of the Credit Agreement or
Section 4.04 of each of the Existing Indentures.  In producing its Inventory, each Grantor will
comply with the requirements of the Fair Labor Standards Act.

 

(c) The Collateral Agent acknowledges that each Grantor has
granted to the Revolver Collateral Agent (as defined in the General
Intercreditor Agreement), for use upon the occurrence and during the
continuance of an Event of Default (as defined in the Revolving Credit
Agreement), the irrevocable, non-exclusive right and license to use all present
and future trademarks, trade names, copyrights, patents or technical processes
owned or used by such Grantor that relate to the Revolver Collateral (as
defined in the General Intercreditor Agreement) and any other Collateral
granted by such Grantor as security for the Secured Obligations (as defined in
the Revolver Security Agreement), together with any goodwill associated
therewith, all to the extent necessary to enable the Revolver Collateral Agent
to realize on, and exercise all rights of the Revolver Collateral Agent and the
Lender Parties under the Revolving Credit Agreement in relation to, the
Revolver Collateral.  This right shall
inure to the benefit of all successors, assigns and transferees of the Revolver
Collateral Agent.  Such right and license
shall be granted free of charge, without requirement that any monetary payment
whatsoever be made to such Grantor.

 

Section 9. Insurance.  (a)  Each Grantor will, at its own
expense, maintain insurance with respect to its Equipment and Inventory in such
amounts, against such risks, in such form and with such insurers consistent
with industry standards.  Subject to the
rights of the Revolver Collateral Agent under the Revolver Security Agreement
and the Revolver Intercreditor Agreement, each policy of each Grantor for
liability insurance shall provide for all

 

15

 

losses to be paid on behalf of the Collateral Agent and such Grantor as
their interests may appear.  Subject to
the rights of the Revolver Collateral Agent under the Revolver Security
Agreement and the Revolver Intercreditor Agreement, each such policy shall in
addition (i) name such Grantor and the Collateral Agent as insured parties
thereunder (without any representation or warranty by or obligation upon the
Collateral Agent) as their interests may appear, (ii) contain the
agreement by the insurer that any loss thereunder shall be payable to the
Collateral Agent notwithstanding any action, inaction or breach of
representation or warranty by such Grantor, (iii) provide that there shall
be no recourse against the Collateral Agent for payment of premiums or other
amounts with respect thereto and (iv) provide that at least 10 days’ prior
written notice of cancellation or of lapse shall be given to the Collateral
Agent by the insurer.  Further, each
Grantor will, at the request of the Collateral Agent, duly execute and deliver
instruments of assignment of such insurance policies to comply with the
requirements of Section 9 and cause the insurers to acknowledge notice of
such assignment.

 

(b) Reimbursement under any liability insurance maintained by any
Grantor pursuant to this Section 9 may be paid directly to the Person who
shall have incurred liability covered by such insurance.  In case of any loss involving damage to
Equipment or Inventory when subsection (c) of this Section 9 is not
applicable, the applicable Grantor will make or cause to be made the necessary
repairs to or replacements of such Equipment or Inventory, and any proceeds of
insurance properly received by or released to such Grantor shall be used by
such Grantor, except as otherwise permitted by the Credit Agreement, to pay or
as reimbursement for the costs of such repairs or replacements.

 

(c) So long as no Event of Default shall have occurred and be
continuing, all insurance payments received by the Collateral Agent in
connection with any loss, damage or destruction of any Inventory or Equipment
will be released by the Collateral Agent to the applicable Grantor.

 

Section 10. Post-Closing
Changes; Collections on Receivables and Related Contracts.  (a)  No Grantor will change its name,
type of organization, jurisdiction of organization or organizational
identification number from those set forth in Section 6(a) of this
Agreement without first giving at least 15 days’ prior written notice to the
Collateral Agent and taking all action required by the Collateral Agent for the
purpose of perfecting or protecting the security interest granted by this
Agreement.  Each Grantor will hold and
preserve its records relating to the Collateral, including, without limitation,
Related Contracts, and will permit representatives of the Collateral Agent at
any time during normal business hours to inspect and make abstracts from such
records and other documents.  If any
Grantor does not have an organizational identification number and later obtains
one, it will forthwith notify the Collateral Agent of such organizational
identification number.

 

(b) Except as otherwise provided in this subsection (b), each
Grantor will continue to collect, at its own expense, all amounts due or to
become due such Grantor under the Receivables and Related Contracts.  In connection with such collections, subject
in the case of Receivables and Related Contracts to the rights of the
Collateral Monitoring Agent under the Revolver Security Agreement, such Grantor
may take (and, at the Collateral Agent’s direction during the continuance of an
Event of Default, will take) such action as such Grantor or the Collateral
Agent may deem necessary or advisable to enforce collection of Receivables and

 

16

 

Related
Contracts; provided, however, that the Collateral Agent shall
have the right at any time, upon written instructions of the Required Lender
Representatives (as defined in the Collateral Agency Agreement) upon the
occurrence and during the continuance of an Event of Default and upon written
notice to such Grantor of its intention to do so, to notify the Obligors under
any Receivables and Related Contracts of the assignment of such Receivables and
Related Contracts to the Collateral Agent and to direct such Obligors to make
payment of all amounts due or to become due to such Grantor thereunder directly
to the Collateral Agent and, upon such notification and at the expense of such
Grantor, to enforce collection of any such Receivables and Related Contracts,
to adjust, settle or compromise the amount or payment thereof, in the same
manner and to the same extent as such Grantor might have done, and to otherwise
exercise all rights with respect to such Receivables and Related Contracts,
including, without limitation, those set forth set forth in Section 9-607
of the UCC.  After receipt by any Grantor
of the notice from the Collateral Agent referred to in the proviso to the
preceding sentence, (i) all amounts and proceeds (including, without
limitation, instruments) received by such Grantor in respect of the Receivables
and Related Contracts of such Grantor shall be received in trust for the
benefit of the Collateral Agent hereunder, shall be segregated from other funds
of such Grantor and shall be forthwith paid over to the Collateral Agent in the
same form as so received (with any necessary indorsement) to be deposited in
the Collateral Account and either (A) released to such Grantor so long as
no Event of Default shall have occurred and be continuing or (B) if any
Event of Default shall have occurred and be continuing, applied as provided in Section 20(b) and
(ii) such Grantor will not adjust, settle or compromise the amount or
payment of any Receivable or amount due on any or Related Contract, release
wholly or partly any Obligor thereof or allow any credit or discount
thereon.  No Grantor will permit or
consent to the subordination of its right to payment under any of the Receivables
and Related Contracts to any other indebtedness or obligations of the Obligor
thereof.

 

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

 

17

 

(b) Each Grantor agrees promptly to notify the Collateral Agent if
such Grantor becomes aware (i) that any item of the Intellectual Property
Collateral material to the business of the Grantors may have become abandoned,
placed in the public domain, invalid or unenforceable, or of any adverse
determination or development regarding such Grantor’s ownership or use of any
such Intellectual Property Collateral or its right to register the same or to
keep and maintain and enforce the same, or (ii) of any adverse
determination or the institution of any proceeding (including, without
limitation, the institution of any proceeding in the U.S. Patent and Trademark
Office or any court) regarding any item of the Intellectual Property Collateral
material to the business of the Grantors.

 

(c) In the event that any Grantor becomes aware that any item of
the Intellectual Property Collateral material to the business of the Grantors
is being infringed or misappropriated by a third party, such Grantor shall
promptly notify the Collateral Agent and shall take all reasonable actions, at
its expense, to protect or enforce such Intellectual Property Collateral,
including, without limitation, suing for infringement or misappropriation and
for an injunction against such infringement or misappropriation.

 

(d) Each Grantor shall use proper statutory notice in connection
with its use of each item of its Intellectual Property Collateral.

 

(e) Each Grantor shall take all steps which it or the Collateral
Agent deems reasonable and appropriate under the circumstances to preserve and
protect each item of its Intellectual Property Collateral material to the
business of the Grantors, including, without limitation, maintaining the
quality of any and all products or services used or provided in connection with
any of the material Trademarks, consistent with the quality of the products and
services as of the date hereof, and taking all steps necessary to ensure that
all licensed users of any of the material Trademarks use such consistent
standards of quality.

 

(f) With respect to its Intellectual Property Collateral, each
Grantor agrees to execute or otherwise authenticate an agreement, in
substantially the form set forth in Exhibit A hereto or otherwise in form
and substance satisfactory to the Collateral Agent (an “Intellectual Property Security Agreement”), for
recording the security interest granted hereunder to the Collateral Agent in
such Intellectual Property Collateral with the U.S. Patent and Trademark
Office, the U.S. Copyright Office and any other governmental authorities
necessary to perfect the security interest hereunder in such Intellectual
Property Collateral.

 

(g) Each Grantor agrees that should it obtain an ownership
interest in or license to any item of the type set forth in Section 1(g) that
is not on the date hereof a part of the Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the
provisions of this Agreement shall automatically apply thereto, and (ii) any
such After-Acquired Intellectual Property and, in the case of trademarks, the
goodwill symbolized thereby, shall automatically become part of the
Intellectual Property Collateral subject to the terms and conditions of this
Agreement with respect thereto.  At the
end of each fiscal quarter of the Company, each Grantor shall give prompt
written notice to the Collateral Agent identifying the After-Acquired
Intellectual Property acquired during such fiscal quarter, and such Grantor
shall execute and deliver to the Collateral Agent with such written notice, or
otherwise authenticate, an agreement substantially in the form of Exhibit B
hereto or otherwise in form and substance satisfactory to 

 

18

 

the
Collateral Agent (an “IP Security Agreement
Supplement”) covering such After-Acquired Intellectual
Property, which IP Security Agreement Supplement shall be recorded with the
U.S. Patent and Trademark Office, the U.S. Copyright Office and any other
governmental authorities necessary to perfect the security interest hereunder
in such After-Acquired Intellectual Property.

 

(h) On or prior to a date that is 60 days after the Closing Date,
or such later date as the Administrative Agent may determine, which
determination shall not be unreasonably withheld after any request for
extension by the Company, the Administrative Agent shall receive a certificate
from a Responsible Officer of the Company confirming that all actions set forth
on Schedule VIII have been completed; provided, that,
with respect to any actions to be taken that have not been completed by such
date, the Administrative Agent may determine in its sole reasonable judgment to
waive such actions if it reasonably determines that the cost of completing such
action is excessive in relation to the benefits afforded to the Secured Parties
thereby.  In addition, such Grantor shall
take all commercially reasonable actions to complete the actions set forth on
Schedule VIII as soon as reasonably practical after the Closing Date.

 

Section 12. Voting
Rights; Dividends; Etc.  (a)  So
long as no Event of Default shall have occurred and be continuing:

 

(i)            Each Grantor shall be entitled to
exercise any and all voting and other consensual rights pertaining to the
Security Collateral of such Grantor or any part thereof for any purpose.

 

(ii)           Each Grantor shall be entitled to
receive and retain any and all dividends, interest and other distributions paid
in respect of the Security Collateral of such Grantor if and to the extent that
the payment thereof is not otherwise prohibited by the terms of the Loan
Documents and the Existing Indentures; provided,
however, that any and all
instruments received, receivable or otherwise distributed in respect of, or in
exchange for, any Security Collateral, shall be, and shall be forthwith
delivered to the Collateral Agent to hold as, Security Collateral and shall, if
received by such Grantor, be received in trust for the benefit of the
Collateral Agent, be segregated from the other property or funds of such
Grantor and be forthwith delivered to the Collateral Agent as Security
Collateral in the same form as so received (with any necessary indorsement).

 

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

 

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

 

(i)            All rights of each Grantor (x) to
exercise or refrain from exercising the voting and other consensual rights that
it would otherwise be entitled to exercise pursuant to Section 12(a)(i) shall,
upon notice to such Grantor by the Collateral Agent, cease and (y) to
receive the dividends, interest and other distributions that it would otherwise
be 

 

19

 

authorized to receive and
retain pursuant to Section 12(a)(ii) shall automatically cease, and
all such rights shall thereupon become vested in the Collateral Agent, which
shall thereupon have the sole right to exercise or refrain from exercising such
voting and other consensual rights and to receive and hold as Security
Collateral such dividends, interest and other distributions.

 

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

 

Section 13. As
to Letter-of-Credit Rights.  (a) 
Each Grantor, by granting a security interest in its Receivables consisting of
letter-of-credit rights to the Collateral Agent, intends to (and hereby does)
assign to the Collateral Agent its rights (including its contingent rights) to
the proceeds of all Related Contracts consisting of letters of credit of which
it is or hereafter becomes a beneficiary or assignee.

 

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

 

Section 14. Commercial
Tort Claims.  Each Grantor will
promptly give notice to the Collateral Agent of any commercial tort claim in
excess of $500,000 that may arise after the date hereof and will immediately
execute or otherwise authenticate a supplement to this Agreement, and otherwise
take all necessary action, to subject such commercial tort claim to the first
priority security interest created under this Agreement.

 

Section 15. Transfers
and Other Liens; Additional Shares.  (a) 
Each Grantor agrees that it will not (i) sell, assign or otherwise dispose
of, or grant any option with respect to, any of the Collateral, other than
sales, assignments and other dispositions of Collateral, and options relating
to Collateral, permitted under the terms of the Credit Agreement, or (ii) create
or suffer to exist any Lien upon or with respect to any of the Collateral of
such Grantor except for the pledge, assignment and security interest created
under this Agreement and Liens permitted under the Credit Agreement.

 

(b) Each Grantor
agrees that it will (i) cause each issuer of the Pledged Equity pledged by such
Grantor not to issue any Equity Interests or other securities in respect of or
in substitution for the Pledged Equity issued by such issuer, except to such
Grantor; provided that in respect of any issuer
not directly or indirectly under the control of a Grantor, such Grantor will
use its commercially reasonable efforts to cause such issuer to adhere to the
requirements of clause (i) above and (ii) pledge hereunder, immediately upon
its acquisition (directly or indirectly) thereof, any and all additional Equity
Interests or other securities.

 

20

 

Section 16. Collateral
Agent Appointed Attorney in Fact. 
Each Grantor hereby irrevocably appoints the Collateral Agent such
Grantor’s attorney in fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor or otherwise, from time to time, upon
the occurrence and during the continuance of an Event of Default, to take any
action and to execute any instrument that the Collateral Agent may deem
necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

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

 

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

 

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

 

(d) to
file any claims or take any action or institute any proceedings that the
Collateral Agent may reasonably deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Collateral
Agent with respect to any of the Collateral.

 

Section 17. Collateral
Agent May Perform.  If any
Grantor fails during the continuance of an Event of Default to perform any
agreement contained herein, the Collateral Agent may, but without any
obligation to do so and without notice, itself perform, or cause performance
of, such agreement, and the expenses of the Collateral Agent incurred in
connection therewith shall be payable by such Grantor under Section 20.

 

Section 18. The
Collateral Agent’s Duties.  (a) 
The powers conferred on the Collateral Agent hereunder are solely to protect
the Secured Parties’ interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. 
Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent
shall have no duty as to any Collateral, as to ascertaining or taking action
with respect to calls, conversions, exchanges, maturities, tenders or other
matters relative to any Collateral, whether or not any Secured Party has or is
deemed to have knowledge of such matters, or as to the taking of any necessary
steps to preserve rights against any parties or any other rights pertaining to
any Collateral.  The Collateral Agent
shall be deemed to have exercised reasonable care in the custody and preservation
of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which it accords its own property.

 

(b) Anything contained herein to the contrary notwithstanding, the
Collateral Agent may from time to time, when the Collateral Agent deems it to
be necessary, appoint one or more subagents (each a “Subagent”) for the Collateral Agent
hereunder with respect to all or any part of the Collateral.  In the event that the Collateral Agent so
appoints any Subagent with respect to any Collateral, (i) the assignment
and pledge of such Collateral and the security interest granted in such
Collateral by each Grantor hereunder shall be deemed for purposes of this
Security Agreement to have been made to such Subagent, in addition to the
Collateral Agent, 

 

21

 

for
the ratable benefit of the Secured Parties, as security for the Secured
Obligations of such Grantor, (ii) such Subagent shall automatically be
vested, in addition to the Collateral Agent, with all rights, powers,
privileges, interests and remedies of the Collateral Agent hereunder with
respect to such Collateral, and (iii) the term “Collateral Agent,” when
used herein in relation to any rights, powers, privileges, interests and
remedies of the Collateral Agent with respect to such Collateral, shall include
such Subagent; provided, however, that no such Subagent shall be
authorized to take any action with respect to any such Collateral unless and
except to the extent expressly authorized in writing by the Collateral Agent.

 

Section 19. Remedies.  If any Event of Default shall have occurred
and be continuing:

 

(a) The
Collateral Agent upon written instructions of the Required Lender
Representatives (as defined in the Collateral Agency Agreement) may exercise in
respect of the Collateral, in addition to other rights and remedies provided
for herein or otherwise available to it, all the rights and remedies of a
secured party upon default under the UCC (whether or not the UCC applies to the
affected Collateral) and also may:  (i) require
each Grantor to, and each Grantor hereby agrees that it will at its expense and
upon request of the Collateral Agent forthwith, assemble all or part of the
Collateral as directed by the Collateral Agent and make it available to the
Collateral Agent at a place and time to be designated by the Collateral Agent
that is reasonably convenient to both parties; (ii) without notice except
as specified below, sell the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Collateral Agent’s offices or
elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Collateral Agent may deem commercially reasonable; (iii) occupy
any premises owned or leased by any of the Grantors where the Collateral or any
part thereof is assembled or located for a reasonable period in order to
effectuate its rights and remedies hereunder or under law, without obligation
to such Grantor in respect of such occupation; and (iv) exercise any and
all rights and remedies of any of the Grantors under or in connection with the
Collateral, or otherwise in respect of the Collateral, including, without
limitation, (A) any and all rights of such Grantor to demand or otherwise
require payment of any amount under, or performance of any provision of the
Receivables, the Related Contracts and the other Collateral, (B) withdraw,
or cause or direct the withdrawal, of all funds with respect to the Account
Collateral and (C) exercise all other rights and remedies with respect to
the Receivables, the Related Contracts and the other Collateral, including,
without limitation, those set forth in Section 9-607 of the UCC.  Each Grantor agrees that, to the extent
notice of sale shall be required by law, at least ten days’ notice to such
Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been
given.  The Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned.

 

22

 

(b) Any
cash held by or on behalf of the Collateral Agent and all cash proceeds
received by or on behalf of the Collateral Agent in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Collateral Agent, be held by the Collateral Agent
as collateral for, and/or then or at any time thereafter applied (after payment
of any amounts payable to the Collateral Agent pursuant to Section 20) in
whole or in part by the Collateral Agent for the ratable benefit of the Secured
Parties against, all or any part of the Secured Obligations, as set forth in
the Collateral Agency Agreement.

 

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

 

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

 

(e) The
Collateral Agent may send to each bank, securities intermediary or issuer party
to any Deposit Account Control Agreement, Securities/Deposit Account Control
Agreement, Securities Account Control Agreement or Uncertificated Security
Control Agreement a notice of exclusive control.

 

(f) In
the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to
such sale or other disposition shall be included therein, and such Grantor
shall supply to the Collateral Agent or its designee such Grantor’s know-how
and expertise, and documents and things relating to any Intellectual Property
Collateral subject to such sale or other disposition, and such Grantor’s
customer lists and other records and documents relating to such Intellectual
Property Collateral and to the manufacture, distribution, advertising and sale
of products and services of such Grantor.

 

(g) If
the Collateral Agent shall determine to exercise its right to sell all or any
of the Security Collateral of any Grantor pursuant to this Section 19,
each Grantor agrees that, upon request of the Collateral Agent, such Grantor
will, at its own expense:

 

(i)            execute
and deliver, and cause each issuer of such Security Collateral contemplated to
be sold and the directors and officers thereof to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts and
things, as may be necessary or, in the reasonable opinion of the Collateral
Agent, advisable to register such Security Collateral under the provisions of
the Securities Act of 1933 (as amended from time to time,

 

23

 

the
“Securities Act”), to use commercially reasonable efforts to cause the
registration statement relating thereto to become effective and to remain
effective for such period as prospectuses are required by law to be furnished
and to make all amendments and supplements thereto and to the related
prospectus that, in the opinion of the Collateral 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;

 

(ii)           use
its commercially reasonable efforts to qualify the Security Collateral under
the state securities or “Blue Sky” laws and to obtain all necessary
governmental approvals for the sale of such Security Collateral, as requested
by the Collateral Agent;

 

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

 

(iv)          provide
the Collateral Agent with such other information and projections as may be
necessary or, in the opinion of the Collateral Agent, advisable to enable the
Collateral Agent to effect the sale of such Security Collateral; and

 

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

 

(h) The
Collateral Agent is authorized, in connection with any sale of the Security
Collateral pursuant to this Section 20, to deliver or otherwise disclose
to any prospective purchaser of the Security Collateral:  (i) any registration statement or
prospectus, and all supplements and amendments thereto, prepared pursuant to
subsection (f)(i) above; (ii) any information and projections
provided to it pursuant to subsection (f)(iv) above; and (iii) any
other information in its possession relating to such Security Collateral.

 

Section 20. Indemnity
and Expenses.  (a)  Each Grantor
agrees to indemnify, defend and save and hold harmless each Secured Party and
each of their Affiliates and their respective officers, directors, employees,
agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in
each case arising out of or in connection with or resulting from this Agreement
(including, without limitation, enforcement of this Agreement), except to the
extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party’s gross negligence or willful misconduct.

 

24

 

(b) Each Grantor will upon demand pay to the Collateral Agent the
amount of any and all reasonable expenses, including, without limitation, the
reasonable fees and expenses of its counsel and of any experts and agents, that
the Collateral Agent may incur in connection with (i) the administration
of this Agreement, (ii) the custody, preservation, use or operation of, or
the sale of, collection from or other realization upon, any of the Collateral
of such Grantor, (iii) the exercise or enforcement of any of the rights of
the Collateral Agent or the other Secured Parties hereunder or (iv) the
failure by such Grantor to perform or observe any of the provisions hereof.

 

(c) The obligations of the Grantors under this Section 20
shall survive the termination of the other provisions of this Agreement and the
resignation or removal of the Collateral Agent.

 

Section 21. Amendments;
Waivers; Additional Grantors; Etc.  (a) 
No amendment or waiver of any provision of this Agreement, and no consent to
any departure by any Grantor herefrom, shall in any event be effective unless
the same shall be in writing and signed by the Collateral Agent, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.  No
failure on the part of the Collateral Agent or any other Secured Party to
exercise, and no delay in exercising any right hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right.

 

(b) Upon the execution and delivery by any Person of a security
agreement supplement in substantially the form of Exhibit D hereto (each a
“Security Agreement Supplement”) or such
other form as may be reasonably acceptable to the Administrative Agent, such
Person shall be referred to as an “Additional
Grantor” and shall be and become a Grantor hereunder, and
each reference in this Agreement and the other Loan Documents to “Grantor”
shall also mean and be a reference to such Additional Grantor, each reference
in this Agreement and the other Loan Documents to the “Collateral” shall also
mean and be a reference to the Collateral granted by such Additional Grantor
and each reference in this Agreement to a Schedule shall also mean and be a
reference to the schedules attached to such Security Agreement Supplement.

 

Section 22. Notices,
Etc.  All notices and other
communications provided for hereunder shall be either (i) in writing
(including telecopier communication) and mailed, telecopied or otherwise
delivered or (ii) by electronic mail (if electronic mail addresses are
designated as provided below) confirmed immediately in writing, in the case of
the Company or the Collateral Agent, addressed to it at its address specified
in the Collateral Agency Agreement and, in the case of each Grantor other than
the Company, addressed to it at its address set forth opposite such Grantor’s
name on the signature pages hereto or on the signature page to the
Security Agreement Supplement pursuant to which it became a party hereto; or,
as to any party, at such other address as shall be designated by such party in
a written notice to the other parties. 
All such notices and other communications shall, when mailed,
telecopied, sent by electronic mail or otherwise, be effective when deposited
in the mails, delivered to the telegraph company, telecopied, sent by
electronic mail and confirmed in writing, or otherwise delivered (or confirmed
by a signed receipt), respectively, addressed as aforesaid; except that notices
and other communications to the Collateral Agent shall not be effective until
received by the Collateral Agent. 
Delivery by telecopier of an executed counterpart of any amendment or
waiver of any 

 

25

 

provision of this Agreement or of any Security Agreement Supplement or
Schedule hereto shall be effective as delivery of an original executed
counterpart thereof.

 

Section 23. Continuing
Security Interest.  This Agreement
shall create a continuing security interest in the Collateral and shall (a) remain
in full force and effect until the latest payment in full in cash of the
Secured Obligations (other than contingent obligations), (b) be binding
upon each Grantor, its successors and assigns and (c) inure, together with
the rights and remedies of the Collateral Agent hereunder, to the benefit of
the Secured Parties and their respective successors, transferees and assigns.

 

Section 24. Release;
Termination.  (a)  Upon any
sale, lease, transfer or other disposition of any item of Collateral of any
Grantor in accordance with the terms of the Loan Documents (other than sales of
Inventory in the ordinary course of business), the security interest in such
Collateral shall automatically terminate and as promptly as practicable, the
Collateral Agent will, at such Grantor’s expense, execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence the
release of such item of Collateral from the assignment and security interest
granted hereby; provided, however, that (i) at the time of such
request and such release no Event of Default shall have occurred and be
continuing, (ii) such Grantor shall have delivered to the Collateral
Agent, at least five Business Days prior to the date of the proposed release, a
written request for release describing the item of Collateral, together with a
form of release for execution by the Collateral Agent and a certificate of such
Grantor to the effect that the transaction is in compliance with the Loan
Documents and the Existing Indentures and as to such other matters as the
Collateral Agent may reasonably request.

 

(b) Upon the payment in full in cash of the Secured Obligations
(other than contingent obligations), the pledge and security interest granted
hereby shall terminate and all rights to the Collateral shall revert to the
applicable Grantor and the Collateral Agent will, at the applicable Grantor’s
expense, execute and deliver to such Grantor such documents as such Grantor
shall reasonably request to evidence such termination.

 

(c) The Collateral Agent shall release the Collateral as otherwise
provided for under the Collateral Agency Agreement.

 

Section 25. Intercreditor.  NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, THE LIENS AND SECURITY INTERESTS GRANTED TO THE COLLATERAL AGENT
PURSUANT TO THIS AGREEMENT IN ANY COLLATERAL AND THE EXERCISE OF ANY RIGHT OR
REMEDY BY THE COLLATERAL AGENT WITH RESPECT TO ANY COLLATERAL HEREUNDER ARE
SUBJECT TO THE LIMITATIONS AND PROVISIONS OF (i) THE REVOLVER
INTERCREDITOR AGREEMENT, DATED AS OF FEBRUARY 22, 2007 (AS AMENDED, RESTATED,
SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “REVOLVER
INTERCREDITOR AGREEMENT”, AMONG THE COLLATERAL AGENT, DEUTSCHE
BANK AG NEW YORK BRANCH, AS THE FIRST LIEN COLLATERAL AGENT (AS DEFINED
THEREIN), AND DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, AS THE THIRD LIEN
COLLATERAL AGENT (AS DEFINED THEREIN) AND CERTAIN OTHER PERSONS THAT MAY BECOME
PARTY THERETO FROM TIME TO TIME AND CONSENTED TO BY BUILDING MATERIALS
CORPORATION OF 

 

26

 

AMERICA AND THE GRANTORS IDENTIFIED THEREIN AND (ii) THE GENERAL
INTERCREDITOR AGREEMENT, DATED AS OF FEBRUARY 22, 2007 (AS AMENDED, RESTATED,
SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “GENERAL
INTERCREDITOR AGREEMENT” AND TOGETHER WITH THE REVOLVER
INTERCREDITOR AGREEMENT, THE “INTERCREDITOR AGREEMENTS”,
AMONG THE COLLATERAL AGENT AND DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, AS THE
JUNIOR LIEN COLLATERAL AGENT AND CERTAIN OTHER PERSONS THAT MAY BECOME
PARTY THERETO FROM TIME TO TIME AND CONSENTED TO BY BUILDING MATERIALS
CORPORATION OF AMERICA AND THE GRANTORS IDENTIFIED THEREIN.  IN THE EVENT OF ANY CONFLICT BETWEEN THE
TERMS OF THE INTERCREDITOR AGREEMENTS AND THIS AGREEMENT, THE TERMS OF THE
INTERCREDITOR AGREEMENTS SHALL GOVERN AND CONTROL.

 

Section 26. Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.  Delivery of
an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of an original executed counterpart
of this Agreement.

 

Section 27. Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

Section 28. Jurisdiction,
Etc.  (a)  Each of the parties
hereto hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of any New York State court or Federal court
of the United States of America sitting in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement to which it is a party, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the fullest extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement in the courts of any jurisdiction.

 

(b)           Each of the parties hereto
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement to which it is a party in any New York State or Federal
court.  Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

Section 29. Waiver
of Jury Trial.  EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO THIS AGREEMENT.

 

27

 

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

 

 

	
  Address for
  Notices: 

  c/o Building
  Materials Corp of America 

  1361 Alps
  RoadWayne, NJ 07470

  	
   

  	
  BUILDING
  MATERIALS CORPORATION OF AMERICA 

  BMCA ACQUISITION INC.

  BMCA ACQUISITION SUB INC. 

  BMCA FRESNO LLC 

  BMCA FRESNO II LLC 

  BMCA GAINESVILLE LLC 

  BMCA INSULATION PRODUCTS INC. 

  BMCA QUAKERTOWN INC. 

  BUILDING MATERIALS INVESTMENT CORPORATION 

  BUILDING MATERIALS MANUFACTURING CORPORATION 

  DUCTWORK MANUFACTURING CORPORATION 

  GAF LEATHERBACK CORP.

  GAF MATERIALS CORPORATION (CANADA)

  GAF PREMIUM PRODUCTS INC.

  GAF REAL PROPERTIES, INC.

  GAFTECH CORPORATION 

  HBP ACQUISITION LLC 

  LL BUILDING PRODUCTS INC.

  PEQUANNOCK VALLEY CLAIM SERVICE COMPANY, INC.

  SOUTH PONCA REALTY CORP.

  WIND GAP REAL PROPERTY ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /John M.
  Maitner/ 

  
	
   

  	
   

  	
   

  	
  Name: John M.
  Maitner 

  
	
   

  	
   

  	
   

  	
  Title: Vice
  President and Treasurer

  

 

 

	
  ACCEPTED &
  ACKNOWLEDGED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK
  TRUST COMPANY AMERICAS, as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  By 

  	
  /Kerry
  Warwicker/

  	
   

  
	
   

  	
  Name: Kerry
  Warwicker

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By 

  	
  /Randy Kahn/

  	
   

  
	
   

  	
  Name: Randy Kahn

  	
   

  
	
   

  	
  Title: Vice
  President

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