Document:

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                                                                 Exhibit 10.990

                                                                      EXHIBIT A

                          [Form of Security Agreement]

                  THIRD AMENDED AND RESTATED SECURITY AGREEMENT

            THIRD AMENDED AND RESTATED SECURITY AGREEMENT dated as of June 29,
2000 between UNITED STATIONERS SUPPLY CO., a corporation duly organized and
validly existing under the laws of the State of Illinois (together with its
successors and assigns, the "Company"); and THE CHASE MANHATTAN BANK, as
administrative agent for the lenders party to the Credit Agreement referred to
below (in such capacity, together with its successors in such capacity, the
"Administrative Agent").

            The Company, United Stationers Inc., the parent corporation of the
Company and a corporation duly organized and validly existing under the laws of
the State of Delaware (together with its successors and assigns, the
"Guarantor"); certain lenders; and the Administrative Agent are parties to a
Credit Agreement dated as of March 30, 1995 (as amended and restated as of
October 31, 1996, as of April 3, 1998 and as of June 29, 2000 and thereafter
amended, restated, modified and supplemented and in effect from time to time,
the "Credit Agreement").

            The Company and the Administrative Agent are party to the Amended
and Restated Security Agreement dated as of October 31, 1996 (as amended and
restated as of April 3, 1998 and as hereto amended and in effect immediately
prior to the date of this Agreement, the "Existing Security Agreement");

            To induce said lenders to enter into the Credit Agreement and to
extend credit thereunder, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company has agreed
to amend and restate the Existing Security Agreement and to pledge and grant a
security interest in the Collateral (as hereinafter defined) as security for the
Secured Obligations (as hereinafter defined). Accordingly, the parties hereto
agree as follows:

            Section 1. Definitions. Terms defined in the Credit Agreement are
used herein as defined therein. In addition, as used herein:

            "Accounts" shall have the meaning ascribed thereto in Section 3(c)
      hereof.

            "Collateral" shall have the meaning ascribed thereto in Section 3
      hereof.

            "Collateral Account" shall have the meaning ascribed thereto in
      Section 4.01 hereof.

                              Security Agreement
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                                      -2-

            "Copyright Collateral" shall mean all Copyrights, whether now owned
      or hereafter acquired by the Company, including each Copyright identified
      in Annex 2 hereto.

            "Copyrights" shall mean all copyrights, copyright registrations and
      applications for copyright registrations, including, without limitation,
      all renewals and extensions thereof, the right to recover for all past,
      present and future infringements thereof, and all other rights of any kind
      whatsoever accruing thereunder or pertaining thereto.

            "Documents" shall have the meaning ascribed thereto in Section 3(i)
      hereof.

            "Equipment" shall have the meaning ascribed thereto in Section 3(g)
      hereof.

            "Foreign Subsidiary" shall mean any Subsidiary of the Company that
      is not organized or created under the laws of the United States of
      America, any State thereof or the District of Columbia.

            "Instruments" shall have the meaning ascribed thereto in Section
      3(d) hereof.

            "Intellectual Property" shall mean, collectively, all Copyright
      Collateral, all Patent Collateral and all Trademark Collateral, together
      with (a) all inventions, processes, production methods, proprietary
      information, know-how and trade secrets; (b) all licenses or user or other
      agreements granted to the Company with respect to any of the foregoing, in
      each case whether now or hereafter owned or used including, without
      limitation, the licenses or other agreements with respect to the Copyright
      Collateral, the Patent Collateral or the Trademark Collateral, listed in
      Annex 4 hereto, except to the extent that a security interest therein may
      not be granted without the consent of a licensor; (c) all information,
      customer lists, identification of suppliers, data, plans, blueprints,
      specifications, designs, drawings, recorded knowledge, surveys,
      engineering reports, test reports, manuals, materials standards,
      processing standards, performance standards, catalogs, computer and
      automatic machinery software and programs; (d) all field repair data,
      sales data and other information relating to sales or service of products
      now or hereafter manufactured; (e) all accounting information and all
      media in which or on which any information or knowledge or data or records
      may be recorded or stored and all computer programs used for the
      compilation or printout of such information, knowledge, records or data;
      (f) all licenses, consents, permits, variances, certifications and
      approvals of governmental agencies now or hereafter held by the Company,
      except to the extent that a security interest therein may not be granted
      without the consent of a licensor; and (g) all causes of action, claims or
      warranties now or hereafter owned or acquired by the Company in respect of
      any of the items listed above.

            "Inventory" shall have the meaning ascribed thereto in Section 3(e)
      hereof.

            "Motor Vehicles" shall mean motor vehicles, tractors, trailers and
      other like property, whether or not the title thereto is governed by a
      certificate of title or ownership.

                              Security Agreement
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            "Patent Collateral" shall mean all Patents, whether now owned or
      hereafter acquired by the Company, including each Patent identified in
      Annex 3 hereto.

            "Patents" shall mean all patents and patent applications, including,
      without limitation, the inventions and improvements described and claimed
      therein together with the reissues, divisions, continuations, renewals,
      extensions and continuations-in-part thereof, all income, royalties,
      damages and payments now or hereafter due and/or payable under and with
      respect thereto, including, without limitation, damages and payments for
      past or future infringements thereof, the right to sue for past, present
      and future infringements thereof, and all rights corresponding thereto
      throughout the world.

            "Pledged Stock" shall have the meaning ascribed thereto in Section
      3(a) hereof.

            "Secured Obligations" shall mean, collectively, (a) the principal of
      and interest on the Loans made by the Lenders to, and the Note(s) held by
      each Lender of, the Company and all other amounts from time to time owing
      to the Lenders or the Administrative Agent by the Company under the Credit
      Documents including, without limitation, all Reimbursement Obligations and
      interest thereon, (b) the Company's obligations to any Lender (or any
      Affiliate thereof) under any Hedging Agreement or in respect of any cash
      management services and (c) all obligations of the Company to the Lenders
      and the Administrative Agent hereunder.

            "Stock Collateral" shall have the meaning ascribed thereto in
      Section 3(b) hereof.

            "Trademark Collateral" shall mean all Trademarks, whether now owned
      or hereafter acquired by the Company, including each Trademark identified
      on Annex 4 hereto. Notwithstanding the foregoing, the Trademark Collateral
      does not and shall not include any Trademark that would be rendered
      invalid, abandoned, void or unenforceable by reason of its being included
      as part of the Trademark Collateral.

            "Trademarks" shall mean all trade names, trademarks and service
      marks, logos, trademark and service mark registrations, and applications
      for trademark and service mark registrations, including, without
      limitation, all renewals of trademark and service mark registrations, all
      rights corresponding thereto throughout the world, the right to recover
      for all past, present and future infringements thereof, all other rights
      of any kind whatsoever accruing thereunder or pertaining thereto,
      together, in each case, with the product lines and goodwill of the
      business connected with the use of, and symbolized by, each such trade
      name, trademark and service mark.

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

                              Security Agreement
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                                      -4-

            Section 2. Representations and Warranties. The Company represents
and warrants to the Lenders and the Administrative Agent that:

            (a) The Company is (or, at the time that the Company acquires any
      interest therein, will be) the sole beneficial owner of the Collateral and
      no Lien exists or will exist upon the Collateral at any time (and no right
      or option to acquire the same exists in favor of any other Person), except
      for Liens permitted under Section 9.06 of the Credit Agreement and except
      for the pledge and security interest in favor of the Administrative Agent
      for the benefit of the Lenders created or provided for herein, which
      pledge and security interest will (subject to Section 5.11 hereof)
      constitute a perfected pledge and security interest in and to all of the
      Collateral (other than Intellectual Property registered or otherwise
      located outside of the United States of America), subject to no equal or
      prior security interest or pledge except as permitted under Section 9.06
      of the Credit Agreement.

            (b) The Pledged Stock represented by the certificates identified in
      Annex 1 hereto is, and all other Pledged Stock in which the Company shall
      hereafter grant a security interest pursuant to Section 3 hereof will be,
      duly authorized, validly existing, fully paid and non-assessable and none
      of such Pledged Stock is or will be subject to any contractual
      restriction, or any restriction under the charter or by-laws of the
      relevant issuer thereof, upon the transfer of such Pledged Stock (except
      for any such restriction contained herein or in the Credit Agreement).

            (c) The Pledged Stock represented by the certificates identified in
      Annex 1 hereto constitutes all of the issued and outstanding shares of
      capital stock of each class of each issuer thereof on the date hereof (or,
      in the case of any Foreign Subsidiary, not less than 65% of the issued and
      outstanding shares of capital stock of each class of such Foreign
      Subsidiary on the date hereof), and said Annex 1 correctly identifies, as
      at the date hereof, the respective class and par value of the shares
      comprising such Pledged Stock, the respective number of shares represented
      by each such certificate, and the respective beneficial and registered
      owner of such shares.

            (d) Annexes 2, 3 and 4 hereto, respectively, set forth a complete
      and correct list of all Copyrights, Patents and Trademarks owned by the
      Company on the date hereof; except pursuant to licenses and other user
      agreements entered into by the Company in the ordinary course of business,
      that are listed in Annex 5 hereto, the Company owns and possesses the
      right to use, and has done nothing to authorize or enable any other Person
      to use, any Copyright, Patent or Trademark listed in said Annexes 2, 3 and
      4, and all registrations listed in said Annexes 2, 3 and 4 are valid and
      in full force and effect; except as may be set forth in said Annex 5, the
      Company owns and possesses the right to use all Copyrights, Patents and
      Trademarks.

            (e) Annex 5 hereto sets forth a complete and correct list of all
      licenses and other user agreements included in the Intellectual Property
      on the date hereof.

                              Security Agreement
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                                      -5-

            (f) To the Company's knowledge, (i) except as set forth in Annex 5
      hereto, there is no violation by others of any right of the Company with
      respect to any Copyright, Patent or Trademark listed in Annexes 2, 3 and 4
      hereto, respectively, and (ii) the Company is not infringing in any
      material respect upon any Copyright, Patent or Trademark of any other
      Person; and no proceedings which if adversely determined could reasonably
      be expected to have a Material Adverse Effect have been instituted or are
      pending against the Company or, to the Company's knowledge, threatened,
      and no claim against the Company has been received by the Company,
      alleging any such violation, except as may be set forth in said Annex 5.

            (g) The Company does not own any Trademarks registered in the United
      States of America to which the last sentence of the definition of
      Trademark Collateral applies.

            (h) Any goods now or hereafter produced by the Company or any of its
      Subsidiaries included in the Collateral have been and will be produced in
      compliance with the requirements of the Fair Labor Standards Act, as
      amended.

            Section 3. Collateral. As collateral security for the prompt payment
in full when due (whether at stated maturity, by acceleration or otherwise) of
the Secured Obligations, the Company hereby pledges and grants to the
Administrative Agent, for the benefit of the Lenders as hereinafter provided, a
security interest in all of the Company's right, title and interest in the
following Property, whether now owned by the Company or hereafter acquired and
whether now existing or hereafter coming into existence (all being collectively
referred to herein as "Collateral"):

            (a) all shares of capital stock of whatever class of each Subsidiary
      of the Company (other than The Order People Company, a Delaware
      corporation now or hereafter owned by the Company or any other Subsidiary
      of the Company, including, without limitation, the shares of stock
      represented by the certificates identified in Annex 1 hereto, in each case
      together with the certificates representing the same (collectively, the
      "Pledged Stock");

            (b) all shares, securities, moneys or Property representing a
      dividend on any of the Pledged Stock, or representing a distribution or
      return of capital upon or in respect of the Pledged Stock, or resulting
      from a split-up, revision, reclassification or other like change of the
      Pledged Stock or otherwise received in exchange therefor, and any
      subscription warrants, rights or options issued to the holders of, or
      otherwise in respect of, the Pledged Stock (the Pledged Stock, together
      with all other certificates, shares, securities, properties or moneys as
      may from time to time be pledged hereunder pursuant to clause (a) or this
      clause (b), together with any proceeds, books, correspondence, credit
      files, records, invoices, and other papers being herein collectively
      called the "Stock Collateral");

                              Security Agreement
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                                      -6-

            (c) all accounts and general intangibles (each as defined in the
      Uniform Commercial Code) of the Company constituting any right to the
      payment of money, including (but not limited to) all moneys due and to
      become due to the Company in respect of any loans or advances or for
      Inventory or Equipment or other goods sold or leased or for services
      rendered, all moneys due and to become due to the Company under any
      guarantee (including a letter of credit) of the purchase price of
      Inventory or Equipment sold by the Company and all tax refunds (such
      accounts, general intangibles and moneys due and to become due being
      herein called collectively "Accounts");

            (d) all instruments, chattel paper or letters of credit (each as
      defined in the Uniform Commercial Code) of the Company evidencing,
      representing, arising from or existing in respect of, relating to,
      securing or otherwise supporting the payment of, any of the Accounts,
      including (but not limited to) promissory notes, drafts, bills of exchange
      and trade acceptances (herein collectively called "Instruments");

            (e) all inventory (as defined in the Uniform Commercial Code) of the
      Company, all goods obtained by the Company in exchange for such inventory,
      and any products made or processed from such inventory including all
      substances, if any, commingled therewith or added thereto (herein
      collectively called "Inventory");

            (f) all Intellectual Property and all other accounts or general
      intangibles not constituting Intellectual Property or Accounts;

            (g) all equipment (as defined in the Uniform Commercial Code) of the
      Company, including all Motor Vehicles (herein collectively called
      "Equipment");

            (h) each contract and other agreement of the Company relating to the
      sale or other disposition of Inventory or Equipment;

            (i) all documents of title (as defined in the Uniform Commercial
      Code) or other receipts of the Company covering, evidencing or
      representing Inventory or Equipment (herein collectively called
      "Documents");

            (j) all rights, claims and benefits of the Company against any
      Person arising out of, relating to or in connection with Inventory or
      Equipment purchased by the Company, including, without limitation, any
      such rights, claims or benefits against any Person storing or transporting
      such Inventory or Equipment;

            (k) the balance from time to time in the Collateral Account and any
      Investment Property (as defined in Section 9-115 of the Uniform Commercial
      Code) held therein; and

            (l) all other tangible and intangible personal Property and fixtures
      of the Company, including, without limitation, all proceeds, products,
      accessions, rents, profits, income, benefits, substitutions and
      replacements of and to any of the property of the

                              Security Agreement
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                                      -7-

      Company described in the preceding clauses of this Section 3 (including,
      without limitation, any proceeds of insurance thereon and all causes of
      action, claims and warranties now or hereafter held by the Company in
      respect of any of the items listed above) and, to the extent related to
      any Property described in said clauses or such proceeds, products and
      accessions, all books, correspondence, credit files, records, invoices and
      other papers, including without limitation all tapes, cards, computer runs
      and other papers and documents in the possession or under the control of
      the Company or any computer bureau or service company from time to time
      acting for the Company;

provided that the Collateral shall not include (i) shares of capital stock of
any class issued by any Foreign Subsidiary to the extent that the percentage of
issued and outstanding shares of capital stock of such class subject to the Lien
of this Agreement would constitute more than 65% of the issued and outstanding
shares of capital stock of such class, (ii) any tangible personal Property
located outside the United States of America and (iii) any Receivables and
Related Assets transferred by the Company in connection with the Receivables
Financing and not sold, assigned, transferred or conveyed back to the Company in
accordance with the Receivables Financing Documents.

            Section 4. Cash Proceeds of Collateral.

            4.01 Collateral Account. The Administrative Agent shall establish
with Chase a cash collateral account (the "Collateral Account"), which may be a
"securities account" (as defined in Section 8-501 of the Uniform Commercial
Code) in the name and under the sole dominion and control of the Administrative
Agent (or, in the case of a securities account, in respect of which the
Administrative Agent is the "entitlement holder" (as defined in Section
8-102(a)(7) of the Uniform Commercial Code)), into which there shall be
deposited from time to time the cash proceeds of any of the Collateral
(including proceeds of insurance thereon) required to be delivered to the
Administrative Agent pursuant hereto and into which the Company may from time to
time deposit any additional amounts that it wishes to pledge to the
Administrative Agent for the benefit of the Lenders as additional collateral
security hereunder or that, as provided in Sections 2.10 and 10 of the Credit
Agreement, it is required to pledge as additional collateral security hereunder.
The balance from time to time in the Collateral Account shall constitute part of
the Collateral hereunder and shall not constitute payment of the Secured
Obligations until applied as hereinafter provided. As promptly as possible after
any amount is deposited into the Collateral Account pursuant to the second or
third sentence of Section 4.02 hereof, the Administrative Agent shall remit the
balance of such amount (if any) to the Company's account with Chase. However,
the Administrative Agent may (and, if instructed by the Majority Lenders shall)
at any time in its (or their) discretion apply or cause to be applied the
balance from time to time standing to the credit of the Collateral Account to
the repayment of the principal of the Revolving Credit Loans outstanding, to
accrued interest on the principal so repaid, and to the payment of any
commitment fees with respect to the Revolving Credit Commitments, in each case
in accordance with the Credit Agreement. Notwithstanding the above, at any time
following the occurrence and during the continuance of an Event of Default, the
Administrative Agent may (and, if instructed by the Lenders as specified in
Section 11.03 of the Credit Agreement, shall) in its (or their) discretion apply
or cause to be applied (subject to

                              Security Agreement
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                                      -8-

collection) the balance from time to time standing to the credit of the
Collateral Account to the payment of the Secured Obligations in the manner
specified in Section 5.09 hereof. The balance from time to time in the
Collateral Account shall be subject to withdrawal only as provided herein.

            4.02 Proceeds of Accounts. At any time after the occurrence and
during the continuance of an Event of Default, the Company shall, upon the
request of the Administrative Agent, instruct all account debtors and other
Persons obligated in respect of all Accounts to make all payments in respect of
the Accounts either (a) directly to the Administrative Agent (by instructing
that such payments be remitted to a post office box which shall be in the name
and under the control of the Administrative Agent) or (b) to one or more other
banks in the United States of America (by instructing that such payments be
remitted to a post office box which shall be in the name and under the control
of such other bank(s)) under arrangements, in form and substance satisfactory to
the Administrative Agent pursuant to which the Company shall have irrevocably
instructed such other bank(s) (and such other bank(s) shall have agreed) to
remit all proceeds of such payments (net of amounts applied by, or transferred
to, such other bank(s) at the instruction of the Company to be used for the
payment of operating expenses incurred by the Company in the ordinary course of
its business and due and owing at the time of such application) directly to the
Administrative Agent for deposit into the Collateral Account. All payments made
to the Administrative Agent, as provided in the preceding sentence, shall be
immediately deposited in the Collateral Account. In addition to the foregoing,
the Company agrees that, at any time after the occurrence and during the
continuance of an Event of Default, if the proceeds of any Collateral hereunder
(including the payments made in respect of Accounts) shall be received by it,
the Company shall as promptly as possible deposit such proceeds into the
Collateral Account. Until so deposited, all such proceeds shall be held in trust
by the Company for and as the property of the Administrative Agent and shall not
be commingled with any other funds or property of the Company.

            4.03 Investment of Balance in Collateral Account. The cash balance
standing to the credit of the Collateral Account shall be invested from time to
time in such Permitted Investments as the Company (or, after the occurrence and
during the continuance of an Event of Default, the Administrative Agent) shall
determine, which Permitted Investments shall be held in the name and be under
the control of the Administrative Agent (and, if the Collateral Account is a
securities account, credited to the Collateral Account); provided that (i) at
any time after the occurrence and during the continuance of an Event of Default,
the Administrative Agent may (and, if instructed by the Lenders as specified in
Section 11.03 of the Credit Agreement, shall) in its (or their) discretion at
any time and from time to time elect to liquidate any such Permitted Investments
and to apply or cause to be applied the proceeds thereof to the payment of the
Secured Obligations in the manner specified in Section 5.09 hereof and (ii) if
requested by the Company, such Permitted Investments may be held in the name and
under the control of one or more of the Lenders (and in that connection each
Lender, pursuant to Section 11.10 of the Credit Agreement, has agreed that such
Permitted Investments shall be held by such Lender as a collateral sub-agent for
the Administrative Agent hereunder).

                              Security Agreement
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                                      -9-

            4.04 Cover for Letter of Credit Liabilities. Amounts deposited into
the Collateral Account as cover for Letter of Credit Liabilities under the
Credit Agreement pursuant to Section 2.10(h) or Section 10 thereof shall be held
by the Administrative Agent in a separate sub-account (designated "Letter of
Credit Liabilities Sub-Account") and all amounts held in such sub-account shall
constitute collateral security first for the Letter of Credit Liabilities
outstanding from time to time and second as collateral security for the other
Secured Obligations hereunder.

            Section 5. Further Assurances; Remedies. In furtherance of the grant
of the pledge and security interest pursuant to Section 3 hereof, the Company
hereby agrees with each Lender and the Administrative Agent as follows:

            5.01 Delivery and Other Perfection. The Company shall:

            (a) if any of the shares, securities, moneys or other Property
      required to be pledged by the Company under clauses (a) and (b) of Section
      3 hereof are received by the Company, forthwith either (x) transfer and
      deliver to the Administrative Agent such shares or securities so received
      by the Company (together with the certificates for any such shares and
      securities duly endorsed in blank or accompanied by undated stock powers
      duly executed in blank), all of which thereafter shall be held by the
      Administrative Agent, pursuant to the terms of this Agreement, as part of
      the Collateral or (y) take such other action as the Administrative Agent
      shall deem necessary or appropriate to duly record the Lien created
      hereunder in such shares, securities, moneys or Property in said clauses
      (a) and (b);

            (b) deliver and pledge to the Administrative Agent any and all
      Instruments, including without limitation, any subordinated note delivered
      in connection with the Receivables Financing, endorsed and/or accompanied
      by such instruments of assignment and transfer in such form and substance
      as the Administrative Agent may reasonably request; provided, that so long
      as no Event of Default shall have occurred and be continuing, the Company
      may retain for collection in the ordinary course any Instruments received
      by the Company in the ordinary course of business and the Administrative
      Agent shall, promptly upon request of the Company, make appropriate
      arrangements for making any Instrument pledged by the Company available to
      the Company for purposes of presentation, collection or renewal (any such
      arrangement to be effected, to the extent deemed appropriate by the
      Administrative Agent, against trust receipt or like document);

            (c) give, execute, deliver, file and/or record any financing
      statement, notice, instrument, document, agreement or other papers that
      may be necessary or desirable (in the judgment of the Administrative
      Agent) to create, preserve, perfect or validate the security interest
      granted pursuant hereto or to enable the Administrative Agent to exercise
      and enforce its rights hereunder with respect to such pledge and security
      interest, including, without limitation, after the occurrence of an Event
      of Default, causing any or all of the Stock Collateral to be transferred
      of record into the name of the Administrative Agent or its nominee (and
      the Administrative Agent agrees that if any Stock Collateral is
      transferred into its name or the name of its nominee, the Administrative
      Agent will

                              Security Agreement
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                                      -10-

      thereafter promptly give to the Company copies of any notices and
      communications received by it with respect to the Stock Collateral),
      provided that notices to account debtors in respect of any Accounts or
      Instruments shall be subject to the provisions of clause (i) below;

            (d) without limiting the obligations of the Company under Section
      5.04(c) hereof, upon the acquisition after the date hereof by the Company
      of any Equipment covered by a certificate of title or ownership, cause the
      Administrative Agent to be listed as the lienholder on such certificate of
      title and within 120 days of the acquisition thereof deliver evidence of
      the same to the Administrative Agent;

            (e) keep full and accurate books and records relating to the
      Collateral, and stamp or otherwise mark such books and records in such
      manner as the Administrative Agent may reasonably require in order to
      reflect the security interests granted by this Agreement;

            (f) furnish to the Administrative Agent from time to time (but,
      unless an Event of Default shall have occurred and be continuing, no more
      frequently than quarterly) statements and schedules further identifying
      and describing the Copyright Collateral, the Patent Collateral and the
      Trademark Collateral, respectively, and such other reports in connection
      with the Copyright Collateral, the Patent Collateral and the Trademark
      Collateral, as the Administrative Agent may reasonably request, all in
      reasonable detail;

            (g) promptly upon request of the Administrative Agent, following
      receipt by the Administrative Agent of any statements, schedules or
      reports pursuant to clause (f) above, modify this Agreement by amending
      Annexes 2, 3 and/or 4 hereto, as the case may be, to include any
      Copyright, Patent or Trademark that becomes part of the Collateral under
      this Agreement;

            (h) permit representatives of the Administrative Agent, upon
      reasonable prior notice, at any time during normal business hours to
      inspect and make abstracts from its books and records pertaining to the
      Collateral, and permit representatives of the Administrative Agent to be
      present at the Company's place of business to receive copies of all
      communications and remittances relating to the Collateral, and forward
      copies of any notices or communications received by the Company with
      respect to the Collateral, all in such manner as the Administrative Agent
      may require; and

            (i) upon the occurrence and during the continuance of any Event of
      Default, upon request of the Administrative Agent, promptly notify (and
      the Company hereby authorizes the Administrative Agent so to notify) each
      account debtor in respect of any Accounts or Instruments that such
      Collateral has been assigned to the Administrative Agent hereunder, and
      that any payments due or to become due in respect of such Collateral are
      to be made directly to the Administrative Agent.

                              Security Agreement
<PAGE>
                                      -11-

            5.02 Other Financing Statements and Liens. Except for financing
statements securing Liens expressly permitted by Section 9.06 of the Credit
Agreement and protective filings filed against the Company in respect of
equipment, furniture or fixtures leased to or Property consigned with the
Company, without the prior written consent of the Administrative Agent (granted
with the authorization of the Lenders as specified in Section 11.09 of the
Credit Agreement), the Company shall not file or suffer to be on file, or
authorize or permit to be filed or to be on file, in any jurisdiction, any
financing statement or like instrument with respect to the Collateral in which
the Administrative Agent is not named as the sole secured party for the benefit
of the Lenders.

            5.03 Preservation of Rights. The Administrative Agent shall not be
required to take steps necessary to preserve any rights against prior parties to
any of the Collateral.

            5.04 Special Provisions Relating to Certain Collateral.

            (a) Stock Collateral.

            (1) The Company will cause the Pledged Stock to constitute at all
times 100% (or, with respect to any issuer that is a Foreign Subsidiary, at
least 65%) of the total number of shares of each class of capital stock of each
Subsidiary of the Company then outstanding.

            (2) Unless an Event of Default shall have occurred and be continuing
and the Administrative Agent shall have given notice to the Company of its
intention to exercise rights arising hereunder or under any other Credit
Document with respect to the Pledged Stock, the Company shall have the right to
exercise all voting, consensual and other powers of ownership pertaining to the
Pledged Stock for all purposes not inconsistent with the terms of this
Agreement, the Credit Agreement, the Notes or any other instrument or agreement
referred to herein or therein, provided that the Company agrees that it will not
vote the Collateral in any manner that is inconsistent with the terms of this
Agreement, the Credit Agreement, the Notes or any such other instrument or
agreement; and the Administrative Agent shall execute and deliver to the Company
or cause to be executed and delivered to the Company all such proxies, powers of
attorney, dividend and other orders, and all such instruments, without recourse,
as the Company may reasonably request for the purpose of enabling the Company to
exercise the rights and powers that it is entitled to exercise pursuant to this
Section 5.04(a)(2).

            (3) Unless and until an Event of Default has occurred and is
continuing, the Company shall be entitled to receive and retain any dividends on
the Collateral paid in cash out of earned surplus.

            (4) If any Event of Default shall have occurred, then so long as
such Event of Default shall continue, and whether or not the Administrative
Agent or any Lender exercises any available right to declare any Secured
Obligation due and payable or seeks or pursues any other relief or remedy
available to it under applicable law or under this Agreement, the Credit
Agreement, the Notes or any other agreement relating to such Secured Obligation,
all dividends and other distributions on the Pledged Stock shall be paid
directly to the Administrative Agent

                              Security Agreement
<PAGE>
                                      -12-

and retained by it as part of the Collateral, subject to the terms of this
Agreement, and, if the Administrative Agent shall so request in writing, the
Company agrees to execute and deliver to the Administrative Agent appropriate
additional dividend, distribution and other orders and documents to that end,
provided that if such Event of Default is cured, any such dividend or
distribution theretofore paid to the Administrative Agent shall, upon request of
the Company (except to the extent theretofore applied to the Secured
Obligations), be returned by the Administrative Agent to the Company.

            (b) Intellectual Property.

            (1) For the purpose of enabling the Administrative Agent to exercise
rights and remedies under Section 5.05 hereof at such time as the Administrative
Agent shall be lawfully entitled to exercise such rights and remedies, and for
no other purpose, the Company hereby grants to the Administrative Agent, to the
extent assignable, an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to the Company) to use, assign, license
or sublicense any of the Intellectual Property now owned or hereafter acquired
by the Company, wherever the same may be located, including in such license
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or
printout thereof.

            (2) Notwithstanding anything contained herein to the contrary, but
subject to the provisions of Section 9.05 of the Credit Agreement that limit the
right of the Company to dispose of its Property, so long as no Event of Default
shall have occurred and be continuing, the Company will be permitted to exploit,
use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other
actions with respect to the Intellectual Property in the ordinary course of the
business of the Company. In furtherance of the foregoing, unless an Event of
Default shall have occurred and be continuing the Administrative Agent shall
from time to time, upon the request of the Company, execute and deliver any
instruments, certificates or other documents, in the form so requested, that the
Company shall have certified are appropriate (in its judgment) to allow it to
take any action permitted above (including relinquishment of the license
provided pursuant to clause (1) immediately above as to any specific
Intellectual Property). Further, upon the payment in full of all of the Secured
Obligations and cancellation or termination of the Commitments and Letter of
Credit Liabilities or earlier expiration of this Agreement or release of the
Collateral, the license granted pursuant to clause (1) immediately above shall
expire by its own terms without further action on the part of the Company or the
Administrative Agent. The exercise of rights and remedies under Section 5.05
hereof by the Administrative Agent shall not terminate the rights of the holders
of any licenses or sublicenses theretofore granted by the Company in accordance
with the first sentence of this clause (2).

            (c) Motor Vehicles. At any time after the occurrence and during the
continuance of an Event of Default, the Company shall, upon the request of the
Administrative Agent, deliver to the Administrative Agent originals of the
certificates of title or ownership for the Motor Vehicles owned by it with the
Administrative Agent listed as lienholder and take such other action as the
Administrative Agent shall deem appropriate to perfect the security interest
created hereunder in all such Motor Vehicles.

                              Security Agreement
<PAGE>
                                      -13-

            5.05 Events of Default, Etc. During the period during which an Event
of Default shall have occurred and be continuing:

            (a) the Company shall, at the request of the Administrative Agent,
      assemble the Collateral owned by it at such place or places, reasonably
      convenient to both the Administrative Agent and the Company, designated in
      its request;

            (b) the Administrative Agent may make any reasonable compromise or
      settlement deemed desirable with respect to any of the Collateral and may
      extend the time of payment, arrange for payment in installments, or
      otherwise modify the terms of, any of the Collateral;

            (c) the Administrative Agent shall have all of the rights and
      remedies with respect to the Collateral of a secured party under the
      Uniform Commercial Code (whether or not said Code is in effect in the
      jurisdiction where the rights and remedies are asserted) and such
      additional rights and remedies to which a secured party is entitled under
      the laws in effect in any jurisdiction where any rights and remedies
      hereunder may be asserted, including, without limitation, the right, to
      the maximum extent permitted by law, to exercise all voting, consensual
      and other powers of ownership pertaining to the Collateral as if the
      Administrative Agent were the sole and absolute owner thereof (and the
      Company agrees to take all such action as may be appropriate to give
      effect to such right);

            (d) the Administrative Agent in its discretion may, in its name or
      in the name of the Company or otherwise, demand, sue for, collect or
      receive any money or other Property at any time payable or receivable on
      account of or in exchange for any of the Collateral, but shall be under no
      obligation to do so; and

            (e) the Administrative Agent may, upon ten business days' prior
      written notice to the Company of the time and place, with respect to the
      Collateral or any part thereof that shall then be or shall thereafter come
      into the possession, custody or control of the Administrative Agent, the
      Lenders or any of their respective agents, sell, lease, assign or
      otherwise dispose of all or any part of such Collateral, at such place or
      places as the Administrative Agent deems best, and for cash or for credit
      or for future delivery (without thereby assuming any credit risk), at
      public or private sale, without demand of performance or notice of
      intention to effect any such disposition or of the time or place thereof
      (except such notice as is required above or by applicable statute and
      cannot be waived), and the Administrative Agent or any Lender or anyone
      else may be the purchaser, lessee, assignee or recipient of any or all of
      the Collateral so disposed of at any public sale (or, to the extent
      permitted by law, at any private sale) and thereafter hold the same
      absolutely, free from any claim or right of whatsoever kind, including any
      right or equity of redemption (statutory or otherwise), of the Company,
      any such demand, notice and right or equity being hereby expressly waived
      and released. In the event of any sale, assignment, or other disposition
      of any of the Trademark Collateral, the goodwill

                              Security Agreement
<PAGE>
                                      -14-

      connected with and symbolized by the Trademark Collateral subject to such
      disposition shall be included, and the Company shall supply to the
      Administrative Agent or its designee, for inclusion in such sale,
      assignment or other disposition, all Intellectual Property relating to
      such Trademark Collateral. The Administrative Agent may, without notice or
      publication, adjourn any public or private sale or cause the same to be
      adjourned from time to time by announcement at the time and place fixed
      for the sale, and such sale may be made at any time or place to which the
      sale may be so adjourned.

The proceeds of each collection, sale or other disposition under this Section
5.05, including by virtue of the exercise of the license granted to the
Administrative Agent in Section 5.04(b) hereof, shall be applied in accordance
with Section 5.09 hereof.

            The Company recognizes that, by reason of certain prohibitions
contained in the Securities Act of 1933, as amended, and applicable state
securities laws, the Administrative Agent may be compelled, with respect to any
sale of all or any part of the Collateral, to limit purchasers to those who will
agree, among other things, to acquire the Collateral for their own account, for
investment and not with a view to the distribution or resale thereof. The
Company acknowledges that any such private sales may be at prices and on terms
less favorable to the Administrative Agent than those obtainable through a
public sale without such restrictions, and, notwithstanding such circumstances,
agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner and that the Administrative Agent shall have no
obligation to engage in public sales and no obligation to delay the sale of any
Collateral for the period of time necessary to permit the respective issuer
thereof to register it for public sale.

            5.06 Deficiency. If the proceeds of sale, collection or other
realization of or upon the Collateral pursuant to Section 5.05 hereof are
insufficient to cover the costs and expenses of such realization and the payment
in full of the Secured Obligations, the Company shall remain liable for any
deficiency.

            5.07 Removals, Etc. Without at least 15 days' prior written notice
(or such shorter notice as to which the Administrative Agent may agree) to the
Administrative Agent, the Company shall not (i) maintain any of its books and
records with respect to the Collateral at any office or maintain its principal
place of business at any place, or permit any Inventory or Equipment to be
located anywhere, other than at 2200 East Golf Road, Des Plaines, Illinois,
60016-1267 or at one of the locations identified in Annex 6 hereto or in transit
from one of such locations to another or (ii) change its name, or the name under
which it does business, from the name shown on the signature pages hereto.

            5.08 Private Sale. The Administrative Agent and the Lenders shall
incur no liability as a result of the sale of the Collateral, or any part
thereof, at any private sale pursuant to Section 5.05 hereof conducted in a
commercially reasonable manner. The Company hereby waives any claims against the
Administrative Agent or any Lender arising by reason of the fact that the price
at which the Collateral may have been sold at such a private sale was less than
the price that might have been obtained at a public sale or was less than the
aggregate amount of the

                              Security Agreement
<PAGE>
                                      -15-

Secured Obligations, even if the Administrative Agent accepts the first offer
received and does not offer the Collateral to more than one offeree.

            5.09 Application of Proceeds. Except as otherwise herein expressly
provided and except as provided below in this Section 5.09, the proceeds of any
collection, sale or other realization of all or any part of the Collateral
pursuant hereto, and any other cash at the time held by the Administrative Agent
under Section 4 hereof or this Section 5, shall be applied by the Administrative
Agent:

            First, to the payment of the costs and expenses of such collection,
      sale or other realization, including reasonable out-of-pocket costs and
      expenses of the Administrative Agent and the fees and expenses of its
      agents and counsel, and all expenses incurred and advances made by the
      Administrative Agent in connection therewith;

            Next, to the payment in full of the Secured Obligations, in each
      case equally and ratably in accordance with the respective amounts thereof
      then due and owing or as the Lenders holding the same may otherwise agree;
      and

            Finally, to the payment to the Company, or its successors or
      assigns, or as a court of competent jurisdiction may direct, of any
      surplus then remaining.

Notwithstanding the foregoing, the proceeds of any cash or other amounts held in
the "Letter of Credit Liabilities Sub-Account" of the Collateral Account
pursuant to Section 4.04 hereof shall be applied first to the Letter of Credit
Liabilities outstanding from time to time and second to the other Secured
Obligations in the manner provided above in this Section 5.09.

            As used in this Section 5, "proceeds" of Collateral shall mean cash,
securities and other Property realized in respect of, and distributions in kind
of, Collateral, including any thereof received under any reorganization,
liquidation or adjustment of debt of the Company or any issuer of or obligor on
any of the Collateral.

            5.10 Attorney-in-Fact. Without limiting any rights or powers granted
by this Agreement to the Administrative Agent while no Event of Default has
occurred and is continuing, upon the occurrence and during the continuance of
any Event of Default the Administrative Agent is hereby appointed the
attorney-in-fact of the Company for the purpose of carrying out the provisions
of this Section 5 and taking any action and executing any instruments that the
Administrative Agent may deem necessary or advisable to accomplish the purposes
hereof, which appointment as attorney-in-fact is irrevocable and coupled with an
interest. Without limiting the generality of the foregoing, so long as the
Administrative Agent shall be entitled under this Section 5 to make collections
in respect of the Collateral, the Administrative Agent shall have the right and
power to receive, endorse and collect all checks made payable to the order of
the Company representing any dividend, payment or other distribution in respect
of the Collateral or any part thereof and to give full discharge for the same.

                              Security Agreement
<PAGE>
                                      -16-

            5.11 Perfection. Prior to or concurrently with the execution and
delivery of this Agreement, the Company shall (i) file such financing statements
and other documents in such offices as the Administrative Agent may request to
perfect the security interests granted by Section 3 of this Agreement and (ii)
deliver to the Administrative Agent all certificates listed in Annex 1 hereto,
accompanied by undated stock powers duly endorsed or executed in blank to the
extent any of such certificates have not previously been so delivered to the
Administrative Agent.

            5.12 Termination. When all Secured Obligations shall have been paid
in full and the Commitments of the Lenders under the Credit Agreement and all
Letter of Credit Liabilities shall have expired or been terminated, this
Agreement shall terminate, and the Administrative Agent shall forthwith cause to
be assigned, transferred and delivered, against receipt but without any
recourse, warranty or representation whatsoever, any remaining Collateral and
money received in respect thereof, to or on the order of the Company and to be
released and canceled all licenses and rights referred to in Section 5.04(b)
hereof. The Administrative Agent shall also execute and deliver to the Company
upon such termination such Uniform Commercial Code termination statements,
certificates for terminating the Liens on the Motor Vehicles and such other
documentation as shall be reasonably requested by the Company to effect the
termination and release of the Liens on the Collateral. The Liens granted to the
Administrative Agent hereby shall also be released in accordance with Sections
9.24 and 11.09 of the Credit Agreement.

            5.13 Further Assurances. The Company agrees that, from time to time
upon the written request of the Administrative Agent, the Company will execute
and deliver such further documents and do such other acts and things as the
Administrative Agent may reasonably request in order fully to effect the
purposes of this Agreement.

            5.14 Release of Motor Vehicles. So long as no Event of Default shall
have occurred and be continuing, upon the request of the Company, the
Administrative Agent shall execute and deliver to the Company such instruments
as the Company shall reasonably request to remove the notation of the
Administrative Agent as lienholder on any certificate of title for any Motor
Vehicle; provided that any such instruments shall be delivered, and the release
effective only upon receipt by the Administrative Agent of a certificate from
the Company stating that the Motor Vehicle the lien on which is to be released
is to be sold or has suffered a casualty loss (with title thereto passing to the
casualty insurance company (or its designee) therefor in settlement of the claim
for such loss) and any proceeds of such sale or casualty loss to the extent
required by the Credit Agreement being paid to the Administrative Agent
hereunder.

            Section 6. Miscellaneous.

            6.01 No Waiver. No failure on the part of the Administrative Agent
or any Lender to exercise, and no course of dealing with respect to, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise by the Administrative
Agent or any Lender of any right, power or remedy hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein are cumulative and are not exclusive of any remedies
provided by law.

                              Security Agreement
<PAGE>
                                      -17-

            6.02 Notices. All notices, requests, consents and demands hereunder
shall be in writing and telecopied or delivered to the intended recipient at its
"Address for Notices" specified pursuant to Section 12.02 of the Credit
Agreement and shall be deemed to have been given at the times specified in said
Section 12.02.

            6.03 Expenses. The Company agrees to reimburse each of the Lenders
and the Administrative Agent for all reasonable costs and expenses of the
Lenders and the Administrative Agent (including, without limitation, the
reasonable fees and expenses of legal counsel) in connection with (i) any
Default and any enforcement or collection proceeding resulting therefrom,
including, without limitation, all manner of participation in or other
involvement with (w) performance by the Administrative Agent of any obligations
of the Company in respect of the Collateral that the Company has failed or
refused to perform, (x) bankruptcy, insolvency, receivership, foreclosure,
winding up or liquidation proceedings, or any actual or attempted sale, or any
exchange, enforcement, collection, compromise or settlement in respect of any of
the Collateral, and for the care of the Collateral and defending or asserting
rights and claims of the Administrative Agent in respect thereof, by litigation
or otherwise, including expenses of insurance, (y) judicial or regulatory
proceedings and (z) workout, restructuring or other negotiations or proceedings
(whether or not the workout, restructuring or transaction contemplated thereby
is consummated) and (ii) the enforcement of this Section 6.03, and all such
costs and expenses shall be Secured Obligations entitled to the benefits of the
collateral security provided pursuant to Section 3 hereof.

            6.04 Amendments, Etc. The terms of this Agreement may be waived,
altered or amended only by an instrument in writing duly executed by the Company
and the Administrative Agent (with the consent of the Lenders as specified in
Section 11.09 of the Credit Agreement). Any such amendment or waiver shall be
binding upon the Administrative Agent and each Lender each holder of any of the
Secured Obligations and the Company.

            6.05 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the respective successors and assigns of the
Company, the Administrative Agent, the Lenders and each holder of any of the
Secured Obligations; provided, however, that the Company shall not assign or
transfer its rights hereunder without the prior written consent of the
Administrative Agent.

            6.06 Captions. The captions and section headings appearing herein
are included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

            6.07 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and either of the parties hereto may execute this Agreement by
signing any such counterpart.

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

                              Security Agreement
<PAGE>
                                      -18-

            6.09 Agents and Attorneys-in-Fact. The Administrative Agent may
employ agents and attorneys-in-fact in connection herewith and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith.

            6.10 Severability. If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by law,
(i) the other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in favor of the Administrative
Agent and the Lenders in order to carry out the intentions of the parties hereto
as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

                              Security Agreement
<PAGE>
                                      -19-

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

                                    UNITED STATIONERS SUPPLY CO.

                                    By _________________________________________
                                    Title:

                                    THE CHASE MANHATTAN BANK,
                                       as Administrative Agent

                                    By _________________________________________
                                    Title:

                              Security Agreement
<PAGE>

                                                                         ANNEX 1

                                  Pledged Stock

                               [See Section 2(b)]

                          Annex 1 to Security Agreement
<PAGE>

                                                                         ANNEX 2

                 LIST OF COPYRIGHTS, COPYRIGHT REGISTRATIONS AND
                    APPLICATIONS FOR COPYRIGHT REGISTRATIONS

                               [See Section 2(d)]

Title                Date Filed          Registration No.         Effective Date
--------------------------------------------------------------------------------

                          Annex 2 to Security Agreement
<PAGE>

                                                                         ANNEX 3

                    LIST OF PATENTS AND PATENT APPLICATIONS

                               [See Section 2(d)]

File            Patent      Country         Registration No.         Date
--------------------------------------------------------------------------------

                          Annex 3 to Security Agreement
<PAGE>

                                                                         ANNEX 4

                LIST OF TRADE NAMES, TRADEMARKS, SERVICES MARKS,
                  TRADEMARK AND SERVICE MARK REGISTRATIONS AND
            APPLICATIONS FOR TRADEMARK AND SERVICE MARK REGISTRATIONS

                               [See Section 2(d)]

                                 U.S. Trademarks

                             Application (A)
                            Registration (R)                Registration
Mark                       or Series No. (S)               or Filing Date
-------------------------------------------------------------------------

                          Annex 4 to Security Agreement
<PAGE>

                               Foreign Trademarks

             Application (A)                             Registration or
Mark         Registration (R)           Country          Filing Date (F)
------------------------------------------------------------------------

                          Annex 4 to Security Agreement
<PAGE>

                                                                         ANNEX 5

                LIST OF CONTRACTS, LICENSES AND OTHER AGREEMENTS

                         [See Section 2(d), (e) and (f)]

                          Annex 5 to Security Agreement
<PAGE>

                                                                         ANNEX 6

                                LIST OF LOCATIONS

                               [See Section 5.07]

                          Annex 6 to Security Agreement<PAGE>

                                                                 Exhibit 10.991

                                                                      EXHIBIT B

   [Form of Amended and Restated Subsidiary Guarantee and Security Agreement]

                    AMENDED AND RESTATED SUBSIDIARY GUARANTEE
                             AND SECURITY AGREEMENT

            AMENDED AND RESTATED SUBSIDIARY GUARANTEE AND SECURITY AGREEMENT
dated as of June 29, 2000 between each of the Subsidiaries of the Parent
Guarantor (as defined below) identified under the caption "SUBSIDIARY
GUARANTORS" on the signature pages hereto (individually, a "Subsidiary
Guarantor" and, collectively, the "Subsidiary Guarantors") and each other
Subsidiary of the Parent Guarantor that shall become a Subsidiary Guarantor
pursuant to Section 9.21(a) of the Credit Agreement referred to below; and THE
CHASE MANHATTAN BANK, as administrative agent for the lenders party to the
Credit Agreement referred to below (in such capacity, together with its
successors in such capacity, the "Administrative Agent").

            United Stationers Supply Co. (the "Company"), United Stationers
Inc., the parent corporation of the Company and a corporation duly organized and
validly existing under the laws of the State of Delaware (together with its
successors and assigns, the "Parent Guarantor" and, together with the Company,
the "Obligors"), certain lenders and the Administrative Agent are parties to the
Third Amended and Restated Credit Agreement dated as of June 29, 2000 (as
amended, restated, modified and supplemented and in effect from time to time,
the "Credit Agreement").

            The Subsidiary Guarantors and the Administrative Agent are party to
a Guarantee and Security Agreement dated as of April 3, 1998 (as hereto amended,
the "Existing Guarantee and Security Agreement").

            To induce said lenders to enter into the Credit Agreement and to
extend credit thereunder, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Subsidiary
Guarantors and the Administrative Agent have agreed to amend and restate the
Existing Guarantee and Security Agreement. Accordingly, the parties hereto agree
as follows:

            Section 1. Definitions. Terms defined in the Credit Agreement are
used herein as defined therein. In addition, as used herein:

            "Accounts" shall have the meaning ascribed thereto in Section 4(d)
      hereof.

            "Collateral" shall have the meaning ascribed thereto in Section 4
      hereof.

            "Copyright Collateral" shall mean all Copyrights, whether now owned
      or hereafter acquired by any Subsidiary Guarantor, including each
      Copyright identified in Annex 2 hereto.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -2-

            "Copyrights" shall mean all copyrights, copyright registrations and
      applications for copyright registrations, including, without limitation,
      all renewals and extensions thereof, the right to recover for all past,
      present and future infringements thereof, and all other rights of any kind
      whatsoever accruing thereunder or pertaining thereto.

            "Documents" shall have the meaning ascribed thereto in Section 4(j)
      hereof.

            "Equipment" shall have the meaning ascribed thereto in Section 4(h)
      hereof.

            "Foreign Subsidiary" shall mean any Subsidiary of any Subsidiary
      Guarantor that is not organized or created under the laws of the United
      States of America, any State thereof or the District of Columbia.

            "Guaranteed Obligations" shall have the meaning ascribed thereto in
      Section 3.01 hereof.

            "Instruments" shall have the meaning ascribed thereto in Section
      4(e) hereof.

            "Intellectual Property" shall mean, collectively, all Copyright
      Collateral, all Patent Collateral and all Trademark Collateral, together
      with (a) all inventions, processes, production methods, proprietary
      information, know-how and trade secrets; (b) all licenses or user or other
      agreements granted to any Subsidiary Guarantor with respect to any of the
      foregoing, in each case whether now or hereafter owned or used including,
      without limitation, the licenses or other agreements with respect to the
      Copyright Collateral, the Patent Collateral or the Trademark Collateral,
      listed in Annex 5 hereto, except to the extent that a security interest
      therein may not be granted without the consent of a licensor; (c) all
      information, customer lists, identification of suppliers, data, plans,
      blueprints, specifications, designs, drawings, recorded knowledge,
      surveys, engineering reports, test reports, manuals, materials standards,
      processing standards, performance standards, catalogs, computer and
      automatic machinery software and programs; (d) all field repair data,
      sales data and other information relating to sales or service of products
      now or hereafter manufactured; (e) all accounting information and all
      media in which or on which any information or knowledge or data or records
      may be recorded or stored and all computer programs used for the
      compilation or printout of such information, knowledge, records or data;
      (f) all licenses, consents, permits, variances, certifications and
      approvals of governmental agencies now or hereafter held by any Subsidiary
      Guarantor, except to the extent that a security interest therein may not
      be granted without the consent of a licensor; and (g) all causes of
      action, claims or warranties now or hereafter owned or acquired by the
      Company in respect of any of the items listed above.

            "Inventory" shall have the meaning ascribed thereto in Section 4(f)
      hereof.

            "Issuers" shall mean, collectively, the respective corporations
      identified on Annex 1 hereto under the caption "Issuer".

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -3-

            "Motor Vehicles" shall mean motor vehicles, tractors, trailers and
      other like Property, whether or not the title thereto is governed by a
      certificate of title or ownership.

            "Patent Collateral" shall mean all Patents, whether now owned or
      hereafter acquired by any Subsidiary Guarantor, including each Patent
      identified in Annex 3 hereto.

            "Patents" shall mean all patents and patent applications, including,
      without limitation, the inventions and improvements described and claimed
      therein together with the reissues, divisions, continuations, renewals,
      extensions and continuations-in-part thereof, all income, royalties,
      damages and payments now or hereafter due and/or payable under and with
      respect thereto, including, without limitation, damages and payments for
      past or future infringements thereof, the right to sue for past, present
      and future infringements thereof, and all rights corresponding thereto
      throughout the world.

            "Pledged Stock" shall have the meaning ascribed thereto in Section
      4(a) hereof.

            "Secured Obligations" shall mean, collectively, (a) the Guaranteed
      Obligations, which include the principal of and interest on the Loans made
      by the Lenders to the Company and all other amounts from time to time
      owing to the Lenders or the Administrative Agent by the Company under the
      Credit Documents including, without limitation, all Reimbursement
      Obligations and interest thereon, (b) obligations of the Company to any
      Lender (or any Affiliate thereof) under any Hedging Agreement or in
      respect of any cash management services and (c) all obligations of any
      Subsidiary Guarantor hereunder and under the other Credit Documents
      (including, without limitation, in respect of the guarantee under Section
      3 hereof).

            "Stock Collateral" shall have the meaning ascribed thereto in
      Section 4(c) hereof.

            "Subsidiary Guarantor Collateral Account" shall have the meaning
      ascribed thereto in Section 5.01 hereof.

            "Trademark Collateral" shall mean all Trademarks, whether now owned
      or hereafter acquired by any Subsidiary Guarantor, including each
      Trademark identified in Annex 4 hereto. Notwithstanding the foregoing, the
      Trademark Collateral does not and shall not include any Trademark that
      would be rendered invalid, abandoned, void or unenforceable by reason of
      its being included as part of the Trademark Collateral.

            "Trademarks" shall mean all trade names, trademarks and service
      marks, logos, trademark and service mark registrations, and applications
      for trademark and service mark registrations, including, without
      limitation, all renewals of trademark and service mark registrations, all
      rights corresponding thereto throughout the world, the right to recover
      for all past, present and future infringements thereof, all other rights
      of any kind whatsoever accruing thereunder or pertaining thereto,
      together, in each case, with the

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -4-

      product lines and goodwill of the business connected with the use of, and
      symbolized by, each such trade name, trademark and service mark.

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

            Section 2. Representations and Warranties. Each Subsidiary Guarantor
represents and warrants to the Lenders and the Administrative Agent that:

            2.01 No Breach. None of the execution and delivery of this
Agreement, the consummation of the transactions herein contemplated or
compliance with the terms and provisions hereof will conflict with or result in
a breach of, or require any consent under, any applicable law or regulation, or
an order, writ, injunction or decree of any court or governmental authority or
agency, or any agreement or instrument to which such Subsidiary Guarantor or any
of its Subsidiaries is a party or by which any of them is bound or to which any
of them is subject, or constitute a default under any such agreement or
instrument, or (except for the Liens created hereunder) result in the creation
or imposition of any Lien upon any Property of such Subsidiary Guarantor or any
such Subsidiary pursuant to the terms of any such agreement or instrument.

            2.02 Action. This Agreement has been duly and validly executed and
delivered by such Subsidiary Guarantor and constitutes its legal, valid and
binding obligation, enforceable in accordance with its terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting the rights of creditors generally and except as such
enforceability may be limited by the application of general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

            2.03 Approvals. No authorizations, approvals or consents of, and no
filings or registrations with, any governmental or regulatory authority or
agency, or any securities exchange are necessary for the execution, delivery or
performance by the Subsidiary of this Agreement or for the validity or
enforceability hereof.

            2.04 Collateral.

            (a) Such Subsidiary Guarantor is (or, at the time that such
      Subsidiary Guarantor acquires any interest therein, will be) the sole
      beneficial owner of the Collateral and no Lien exists or will exist upon
      the Collateral at any time (and no right or option to acquire the same
      exists in favor of any other Person), except for Liens permitted under
      Section 9.06 of the Credit Agreement and except for the pledge and
      security interest in favor of the Administrative Agent for the benefit of
      the Lenders created or provided for herein, which pledge and security
      interest will (subject to Section 6.11 hereof) constitute a perfected
      pledge and security interest in and to all of the Collateral (other than
      Intellectual Property registered or otherwise located outside of the
      United States of America), subject to no equal or prior security interest
      or pledge except as permitted under Section 9.06 of the Credit Agreement.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -5-

            (b) The Pledged Stock represented by the certificates identified in
      Annex 1 hereto is, and all other Pledged Stock in which such Subsidiary
      Guarantor shall hereafter grant a security interest pursuant to Section 3
      hereof will be, duly authorized, validly existing, fully paid and
      non-assessable and none of such Pledged Stock is or will be subject to any
      contractual restriction, or any restriction under the charter or by-laws
      of the relevant issuer thereof, upon the transfer of such Pledged Stock
      (except for any such restriction contained herein or in the Credit
      Agreement).

            (c) The Pledged Stock represented by the certificates identified in
      Annex 1 hereto constitutes all of the issued and outstanding shares of
      capital stock of each class of each issuer thereof on the date hereof (or,
      in the case of any Foreign Subsidiary, not less than 65% of the issued and
      outstanding shares of capital stock of each class of such Foreign
      Subsidiary on the date hereof), and said Annex 1 correctly identifies, as
      at the date hereof, the respective class and par value of the shares
      comprising such Pledged Stock, the respective number of shares represented
      by each such certificate, and the respective beneficial and registered
      owner of such shares.

            (d) Annexes 2, 3 and 4 hereto, respectively, set forth a complete
      and correct list of all Copyrights, Patents and Trademarks owned by such
      Subsidiary Guarantor on the date hereof; except pursuant to licenses and
      other user agreements entered into by such Subsidiary Guarantor in the
      ordinary course of business, that are listed in Annex 5 hereto, such
      Subsidiary Guarantor owns and possesses the right to use, and has done
      nothing to authorize or enable any other Person to use, any Copyright,
      Patent or Trademark listed in said Annexes 2, 3 and 4, and all
      registrations listed in said Annexes 2, 3 and 4 are valid and in full
      force and effect; except as may be set forth in said Annex 5, such
      Subsidiary Guarantor owns and possesses the right to use all Copyrights,
      Patents and Trademarks.

            (e) Annex 5 hereto sets forth a complete and correct list of all
      licenses and other user agreements included in the Intellectual Property
      on the date hereof.

            (f) To such Subsidiary Guarantor's knowledge, (i) except as set
      forth in Annex 5 hereto, there is no violation by others of any right of
      such Subsidiary Guarantor with respect to any Copyright, Patent or
      Trademark listed in Annexes 2, 3 and 4 hereto, respectively, and (ii) such
      Subsidiary Guarantor is not infringing in any material respect upon any
      Copyright, Patent or Trademark of any other Person; and no proceedings
      which if adversely determined could reasonably be expected to have a
      Material Adverse Effect have been instituted or are pending against such
      Subsidiary Guarantor or, to such Subsidiary Guarantor's knowledge,
      threatened, and no claim against such Subsidiary Guarantor has been
      received by such Subsidiary Guarantor, alleging any such violation, except
      as may be set forth in said Annex 5.

            (g) Such Subsidiary Guarantor does not own any Trademarks registered
      in the United States of America to which the last sentence of the
      definition of Trademark Collateral applies.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -6-

            (h) Any goods now or hereafter produced by such Subsidiary Guarantor
      or any of its Subsidiaries included in the Collateral have been and will
      be produced in compliance with the requirements of the Fair Labor
      Standards Act, as amended.

            Section 3. The Guarantee.

            3.01 The Guarantee. Each Subsidiary Guarantor hereby, jointly and
severally, guarantees to each Lender and the Administrative Agent and their
respective successors and assigns the prompt payment in full when due (whether
at stated maturity, by acceleration or otherwise) of (x) the principal of and
interest on the Loans made by the Lenders to the Company and all other amounts
from time to time owing to the Lenders or the Administrative Agent by the
Company under the Credit Agreement and by the Company under any of the other
Credit Documents, (y) all obligations of the Company to any Lender (or any
Affiliate thereof) in respect of any Hedging Agreement or in respect of any cash
management services and (z) all Reimbursement Obligations and interest thereon,
in each case strictly in accordance with the terms thereof (such obligations
being herein collectively called the "Guaranteed Obligations"). Each Subsidiary
Guarantor hereby further agrees that if the Company shall fail to pay in full
when due (whether at stated maturity, by acceleration or otherwise) any of the
Guaranteed Obligations, such Subsidiary Guarantor will promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Guaranteed Obligations, the same
will be promptly paid in full when due (whether at extended maturity, by
acceleration or otherwise) in accordance with the terms of such extension or
renewal.

            3.02 Obligations Unconditional. The obligations of the Subsidiary
Guarantors under Section 3.01 hereof are joint and several, absolute and
unconditional irrespective of the value, genuineness, validity, regularity or
enforceability of the obligations of the Company under the Credit Agreement or
any other agreement or instrument referred to herein or therein, or any
substitution, release or exchange of any other guarantee of or security for any
of the Guaranteed Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor (other than the payment of the Guaranteed Obligations), it being the
intent of this Section 3.02 that the obligations of the Subsidiary Guarantors
hereunder shall be joint and several, absolute and unconditional under any and
all circumstances. Without limiting the generality of the foregoing, it is
agreed that the occurrence of any one or more of the following shall not alter
or impair the liability of the Subsidiary Guarantors hereunder which shall
remain joint and several, absolute and unconditional as described above:

            (i) at any time or from time to time, without notice to any
      Subsidiary Guarantor, the time for any performance of or compliance with
      any of the Guaranteed Obligations shall be extended, or such performance
      or compliance shall be waived;

            (ii) any of the acts mentioned in any of the provisions of the
      Credit Agreement or any other agreement or instrument referred to herein
      or therein shall be done or omitted;

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -7-

            (iii) the maturity of any of the Guaranteed Obligations shall be
      accelerated, or any of the Guaranteed Obligations shall be modified,
      supplemented or amended in any respect, or any right under the Credit
      Agreement or any other agreement or instrument referred to herein or
      therein shall be waived or any other guarantee of any of the Guaranteed
      Obligations or any security therefor shall be released or exchanged in
      whole or in part or otherwise dealt with; or

            (iv) any lien or security interest granted to, or in favor of, the
      Administrative Agent or any Lender or Lenders as security for any of the
      Guaranteed Obligations shall fail to be perfected.

The Subsidiary Guarantors hereby expressly waive diligence, presentment, demand
of payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed
against the Company under the Credit Agreement or any other agreement or
instrument referred to herein or therein, or against any other Person under any
other guarantee of, or security for, any of the Guaranteed Obligations.

            3.03 Reinstatement. The obligations of the Subsidiary Guarantors
under this Section 3 shall be automatically reinstated if and to the extent that
for any reason any payment by or on behalf of any Obligor or any other
Subsidiary Guarantor in respect of the Guaranteed Obligations is rescinded or
must be otherwise restored by any holder of any of the Guaranteed Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, and the Subsidiary Guarantors agree that they will jointly and
severally indemnify the Administrative Agent and each Lender on demand for all
reasonable costs and expenses (including, without limitation, fees of counsel)
incurred by the Administrative Agent or such Lender in connection with such
rescission or restoration, including any such costs and expenses incurred in
defending against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or
similar law.

            3.04 Subrogation. Each Subsidiary Guarantor hereby waives, until
payment in full of the Guaranteed Obligations, all rights of subrogation or
contribution, whether arising by contract or operation of law (including,
without limitation, any such right arising under the Federal Bankruptcy Code) or
otherwise by reason of any payment by it pursuant to the provisions of this
Section 3.

            3.05 Remedies. The Subsidiary Guarantors, jointly and severally,
agree that, as between such Subsidiary Guarantors and the Lenders, the
obligations of the Company under the Credit Agreement may be declared to be
forthwith due and payable as provided in Section 10 of the Credit Agreement (and
shall be deemed to have become automatically due and payable in the
circumstances provided in said Section 10) for purposes of Section 3.01 hereof
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such obligations from becoming automatically due and payable) as
against the Company and that, in the event of such declaration (or such
obligations being deemed to have become automatically due and payable), such
obligations (whether or not due and payable by the Company) shall forthwith
become due and payable by the Subsidiary Guarantors for purposes of said Section
3.01.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -8-

            3.06 Continuing Guarantee. The guarantee in this Section 3 is a
continuing guarantee, and shall apply to all Guaranteed Obligations whenever
arising.

            3.07 Rights of Contribution. The Subsidiary Guarantors hereby agree,
as between themselves, that if any Subsidiary Guarantor shall become an Excess
Funding Guarantor (as defined below) by reason of the payment by such Subsidiary
Guarantor of any Guaranteed Obligations, each other Subsidiary Guarantor shall,
on demand of such Excess Funding Guarantor (but subject to the next sentence),
pay to such Excess Funding Guarantor an amount equal to such Subsidiary
Guarantor's Pro Rata Share (as defined below and determined, for this purpose,
without reference to the Properties, debts and liabilities of such Excess
Funding Guarantor) of the Excess Payment (as defined below) in respect of such
Guaranteed Obligations. The payment obligation of a Subsidiary Guarantor to any
Excess Funding Guarantor under this Section 3.07 shall be subordinate and
subject in right of payment to the prior payment in full of the obligations of
such Subsidiary Guarantor under the other provisions of this Section 3 and such
Excess Funding Guarantor shall not exercise any right or remedy with respect to
such excess until payment and satisfaction in full of all of such obligations.

            For purposes of this Section 3.07, (i) Excess Funding Guarantor
shall mean, in respect of any Guaranteed Obligations, a Subsidiary Guarantor
that has paid an amount in excess of its Pro Rata Share of such Guaranteed
Obligations, (ii) Excess Payment shall mean, in respect of any Guaranteed
Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro
Rata Share of such Guaranteed Obligations and (iii) Pro Rata Share shall mean,
for any Subsidiary Guarantor, the ratio (expressed as a percentage) of (x) the
amount by which the aggregate present fair saleable value of all Properties of
such Subsidiary Guarantor (excluding any shares of stock of any other Subsidiary
Guarantor) exceeds the amount of all the debts and liabilities of such
Subsidiary Guarantor (including contingent, subordinated, unmatured and
unliquidated liabilities, but excluding the obligations of such Subsidiary
Guarantor hereunder and any obligations of any other Subsidiary Guarantor that
have been Guaranteed by such Subsidiary Guarantor) to (y) the amount by which
the aggregate fair saleable value of all Properties of all of the Subsidiary
Guarantors exceeds the amount of all the debts and liabilities (including
contingent, subordinated, unmatured and unliquidated liabilities, but excluding
the obligations of the Subsidiary Guarantors hereunder and under the other Loan
Documents) of all of the Subsidiary Guarantors, determined (A) with respect to
any Subsidiary Guarantor that is a party hereto on the Closing Date, as of the
Closing Date, and (B) with respect to any other Subsidiary Guarantor, as of the
date such Subsidiary Guarantor becomes a Subsidiary Guarantor hereunder.

            3.08 General Limitation on Guarantee Obligations. In any action or
proceeding involving any state corporate law, or any state or Federal
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Subsidiary Guarantor under
Section 3.01 hereof would otherwise, taking into account the provisions of
Section 3.07 hereof, be held or determined to be void, invalid or unenforceable,
or subordinated to the claims of any other creditors, on account of the amount
of its liability under said Section 3.01, then, notwithstanding any other
provision hereof to the contrary, the amount of

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -9-

such liability shall, without any further action by such Subsidiary Guarantor,
any Lender, the Administrative Agent or any other Person, be automatically
limited and reduced to the highest amount that is valid and enforceable and not
subordinated to the claims of other creditors as determined in such action or
proceeding.

            Section 4. Collateral. As collateral security for the prompt payment
in full when due (whether at stated maturity, by acceleration or otherwise) of
the Secured Obligations, each Subsidiary Guarantor hereby pledges and grants to
the Administrative Agent, for the benefit of the Lenders as hereinafter
provided, a security interest in all of such Subsidiary Guarantor's right, title
and interest in the following Property, whether now owned by such Subsidiary
Guarantor or hereafter acquired and whether now existing or hereafter coming
into existence (all being collectively referred to herein as "Collateral"):

            (a) the shares of common/preferred stock of the Issuers represented
      by the certificates identified in Annex 1 hereto and all other shares of
      capital stock of whatever class of the Issuers, now or hereafter owned by
      such Subsidiary Guarantor, in each case together with the certificates
      evidencing the same (collectively, the "Pledged Stock");

            (b) all shares, securities, moneys or Property representing a
      dividend on any of the Pledged Stock, or representing a distribution or
      return of capital upon or in respect of the Pledged Stock, or resulting
      from a split-up, revision, reclassification or other like change of the
      Pledged Stock or otherwise received in exchange therefor, and any
      subscription warrants, rights or options issued to the holders of, or
      otherwise in respect of, the Pledged Stock;

            (c) without affecting the obligations of such Subsidiary Guarantor
      under any provision prohibiting such action hereunder or under the Credit
      Agreement, in the event of any consolidation or merger in which an Issuer
      is not the surviving corporation, all shares of each class of the capital
      stock of the successor corporation (unless such successor corporation is
      such Subsidiary Guarantor itself) formed by or resulting from such
      consolidation or merger (the Pledged Stock, together with all other
      certificates, shares, securities, properties or moneys as may from time to
      time be pledged hereunder pursuant to clause (a) or (b) above and this
      clause (c) being herein collectively called the "Stock Collateral");

            (d) all accounts and general intangibles (each as defined in the
      Uniform Commercial Code) of such Subsidiary Guarantor constituting any
      right to the payment of money, including (but not limited to) all moneys
      due and to become due to such Subsidiary Guarantor in respect of any loans
      or advances or for Inventory or Equipment or other goods sold or leased or
      for services rendered, all moneys due and to become due to such Subsidiary
      Guarantor under any guarantee (including a letter of credit) of the
      purchase price of Inventory or Equipment sold by such Subsidiary Guarantor
      and all tax refunds (such accounts, general intangibles and moneys due and
      to become due being herein called collectively "Accounts");

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -10-

            (e) all instruments, chattel paper or letters of credit (each as
      defined in the Uniform Commercial Code) of such Subsidiary Guarantor
      evidencing, representing, arising from or existing in respect of, relating
      to, securing or otherwise supporting the payment of, any of the Accounts,
      including (but not limited to) promissory notes, drafts, bills of exchange
      and trade acceptances (herein collectively called "Instruments");

            (f) all inventory (as defined in the Uniform Commercial Code) of
      such Subsidiary Guarantor, all goods obtained by such Subsidiary Guarantor
      in exchange for such inventory, and any products made or processed from
      such inventory including all substances, if any, commingled therewith or
      added thereto (herein collectively called "Inventory");

            (g) all Intellectual Property and all other accounts or general
      intangibles not constituting Intellectual Property or Accounts;

            (h) all equipment (as defined in the Uniform Commercial Code) of
      such Subsidiary Guarantor, including all Motor Vehicles (herein
      collectively called "Equipment");

            (i) each contract and other agreement of such Subsidiary Guarantor
      relating to the sale or other disposition of Inventory or Equipment;

            (j) all documents of title (as defined in the Uniform Commercial
      Code) or other receipts of such Subsidiary Guarantor covering, evidencing
      or representing Inventory or Equipment (herein collectively called
      "Documents");

            (k) all rights, claims and benefits of such Subsidiary Guarantor
      against any Person arising out of, relating to or in connection with
      Inventory or Equipment purchased by such Subsidiary Guarantor, including,
      without limitation, any such rights, claims or benefits against any Person
      storing or transporting such Inventory or Equipment;

            (l) the balance from time to time in the Subsidiary Guarantor
      Collateral Account and all Investment Property (as defined in Section
      9-115 of the Uniform Commercial Code) held therein; and

            (m) all other tangible and intangible personal Property and fixtures
      of such Subsidiary Guarantor, including, without limitation, all proceeds,
      products, offspring, accessions, rents, profits, income, benefits,
      substitutions and replacements of and to any of the Property of such
      Subsidiary Guarantor described in the preceding clauses of this Section 4
      (including, without limitation, any proceeds of insurance thereon and all
      causes of action, claims and warranties now or hereafter held by such
      Subsidiary Guarantor in respect of any of the items listed above) and, to
      the extent related to any Property described in said clauses or such
      proceeds, products and accessions, all books, correspondence, credit
      files, records, invoices and other papers, including without limitation
      all tapes, cards, computer runs and other papers and documents in the

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -11-

      possession or under the control of such Subsidiary Guarantor or any
      computer bureau or service company from time to time acting for such
      Subsidiary Guarantor.

provided that Collateral shall not include (i) shares of capital stock of any
class issued by any Foreign Subsidiary to the extent that the percentage of
issued and outstanding shares of capital stock of such class subject to the Lien
of this Agreement would constitute more than 65% of the issued and outstanding
shares of capital stock of such class, (ii) any tangible personal Property
located outside the United States of America and (iii) any Receivables and
Related Assets transferred in connection with the Receivables Financing.

            Section 5. Cash Proceeds of Collateral.

            5.01 Subsidiary Guarantor Collateral Account. The Administrative
Agent will cause to be established with Chase a cash collateral account (the
"Subsidiary Guarantor Collateral Account"), which may be a "securities account"
(as defined in Section 8-501 or the Uniform Commercial Code) in the name and
under the sole dominion and control of the Administrative Agent (or, in the case
of a securities account, in respect of which the Administrative Agent is the
"entitlement holder" (as defined in Section 8-102(a)(7) of the Uniform
Commercial Code)), into which there shall be deposited from time to time the
cash proceeds of any of the Collateral (including proceeds of insurance thereon)
and into which any Subsidiary Guarantor may from time to time deposit any
additional amounts that it wishes to pledge to the Administrative Agent for the
benefit of the Lenders as additional collateral security hereunder or that, as
provided in Sections 2.10 and 10 of the Credit Agreement, the Company is
required to pledge as additional collateral security hereunder. The balance from
time to time in the Subsidiary Guarantor Collateral Account shall constitute
part of the Collateral hereunder and shall not constitute payment of the Secured
Obligations until applied as hereinafter provided. As promptly as possible after
any amount is deposited into the Subsidiary Guarantor Collateral Account
pursuant to the second or third sentence of Section 5.02 hereof, the
Administrative Agent shall remit the balance of such amount (if any) to the
Subsidiary Guarantor's account with Chase. However, the Administrative Agent may
(and, if instructed by the Lenders shall) at any time in its (or their)
discretion apply or cause to be applied the balance from time to time standing
to the credit of the Subsidiary Guarantor Collateral Account to the repayment of
the principal of the Revolving Credit Loans outstanding, to accrued interest on
the principal so repaid, and to the payment of any commitment fees with respect
to the Revolving Credit Commitments, in each case the Credit Agreement and to
the extent of the Subsidiary Guarantors' obligations hereunder. Notwithstanding
the above, at any time following the occurrence and during the continuance of an
Event of Default, the Administrative Agent may (and, if instructed by the
Lenders as specified in Section 11.03 of the Credit Agreement, shall) in its (or
their) discretion apply or cause to be applied (subject to collection) the
balance from time to time standing to the credit of the Subsidiary Guarantor
Collateral Account to the payment of the Secured Obligations in the manner
specified in Section 6.09 hereof. The balance from time to time in the
Subsidiary Guarantor Collateral Account shall be subject to withdrawal only as
provided herein.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -12-

            5.02 Proceeds of Accounts. At any time after the occurrence and
during the continuance of an Event of Default, each Subsidiary Guarantor shall,
upon the request of the Administrative Agent, instruct all account debtors and
other Persons obligated in respect of all Accounts to make all payments in
respect of the Accounts either (a) directly to the Administrative Agent (by
instructing that such payments be remitted to a post office box which shall be
in the name and under the control of the control of the Administrative Agent) or
(b) to one or more other banks in the United States of America (by instructing
that such payments be remitted to a post office box which shall be in the name
and under the control of such other bank(s)) under arrangements, in form and
substance satisfactory to the Administrative Agent pursuant to which such
Subsidiary Guarantor shall have irrevocably instructed such other bank (and such
other bank shall have agreed) to remit all proceeds of such payments directly to
the Administrative Agent for deposit into the Subsidiary Guarantor Collateral
Account. All payments made to the Administrative Agent, as provided in the
preceding sentence, shall be immediately deposited in the Subsidiary Guarantor
Collateral Account. In addition to the foregoing, each Subsidiary Guarantor
agrees that at any time after the occurrence and during the continuance of an
Event of Default , if the proceeds of any Collateral hereunder (including the
payments made in respect of Accounts) shall be received by it, such Subsidiary
Guarantor shall as promptly as possible deposit such proceeds into the
Subsidiary Guarantor Collateral Account. Until so deposited, all such proceeds
shall be held in trust by each Subsidiary Guarantor for and as the Property of
the Administrative Agent and shall not be commingled with any other funds or
Property of each Subsidiary Guarantor.

            5.03 Investment of Balance in Subsidiary Guarantor Collateral
Account. The cash balance standing to the credit of the Subsidiary Guarantor
Collateral Account shall be invested from time to time in such Permitted
Investments as the Subsidiary Guarantor (or, after the occurrence and during the
continuance of an Event of Default, the Administrative Agent) shall determine,
which Permitted Investments shall be held in the name and be under the control
of the Administrative Agent (and, if the Subsidiary Guarantor Collateral Account
is a securities account, credited to the Subsidiary Guarantor Collateral
Account), provided that (i) at any time after the occurrence and during the
continuance of an Event of Default, the Administrative Agent may (and, if
instructed by the Lenders as specified in Section 11.03 of the Credit Agreement,
shall) in its (or their) discretion at any time and from time to time elect to
liquidate any such Permitted Investments and to apply or cause to be applied the
proceeds thereof to the payment of the Secured Obligations in the manner
specified in Section 6.09 hereof and (ii) if requested by any Subsidiary
Guarantor, such Permitted Investments may be held in the name and under the
control of one or more of the Lenders (and in that connection each Lender,
pursuant to Section 11.10 of the Credit Agreement) has agreed that such
Permitted Investments shall be held by such Lender as a collateral sub-agent for
the Administrative Agent hereunder).

            Section 6. Further Assurances; Remedies. In furtherance of the grant
of the pledge and security interest pursuant to Section 4 hereof, each
Subsidiary Guarantor hereby, jointly and severally, agrees with each Lender and
the Administrative Agent as follows:

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -13-

            6.01 Delivery and Other Perfection. Each Subsidiary Guarantor shall:

            (a) if any of the shares, securities, moneys or Property required to
      be pledged by such Subsidiary Guarantor under clauses (a), (b) and (c) of
      Section 4 hereof are received by such Subsidiary Guarantor, forthwith
      either (x) transfer and deliver to the Administrative Agent such shares or
      securities so received by such Subsidiary Guarantor (together with the
      certificates for any such shares and securities duly endorsed in blank or
      accompanied by undated stock powers duly executed in blank), all of which
      thereafter shall be held by the Administrative Agent, pursuant to the
      terms of this Agreement, as part of the Collateral or (y) take such other
      action as the Administrative Agent shall deem necessary or appropriate to
      duly record the Lien created hereunder in such shares, securities, moneys
      or Property in said clauses (a), (b) and (c);

            (b) deliver and pledge to the Administrative Agent any and all
      Instruments, endorsed and/or accompanied by such instruments of assignment
      and transfer in such form and substance as the Administrative Agent may
      reasonably request; provided that so long as no Default shall have
      occurred and be continuing, such Subsidiary Guarantor may retain for
      collection in the ordinary course any Instruments received by such
      Subsidiary Guarantor in the ordinary course of business and the
      Administrative Agent shall, promptly upon request of the Subsidiary
      Guarantor, make appropriate arrangements for making any Instrument pledged
      by such Subsidiary Guarantor available to such Subsidiary Guarantor for
      purposes of presentation, collection or renewal (any such arrangement to
      be effected, to the extent deemed appropriate by the Administrative Agent,
      against trust receipt or like document);

            (c) give, execute, deliver, file and/or record any financing
      statement, notice, instrument, document, agreement or other papers that
      may be necessary or desirable (in the judgment of the Administrative
      Agent) to create, preserve, perfect or validate the security interest
      granted pursuant hereto or to enable the Administrative Agent to exercise
      and enforce its rights hereunder with respect to such pledge and security
      interest, including, without limitation, after the occurrence of an Event
      of Default, causing any or all of the Stock Collateral to be transferred
      of record into the name of the Administrative Agent or its nominee (and
      the Administrative Agent agrees that if any Stock Collateral is
      transferred into its name or the name of its nominee, the Administrative
      Agent will thereafter promptly give to such Subsidiary Guarantor copies of
      any notices and communications received by it with respect to the Stock
      Collateral), provided that notices to account debtors in respect of any
      Accounts or Instruments shall be subject to the provisions of clause (i)
      below;

            (d) without limiting the obligations of such Subsidiary Guarantor
      under Section 6.04(c) hereof, upon the acquisition after the date hereof
      by such Subsidiary Guarantor of any Equipment covered by a certificate of
      title or ownership, cause the Administrative Agent to be listed as the
      lienholder on such certificate of title and within

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -14-

      120 days of the acquisition thereof deliver evidence of the same to the
      Administrative Agent;

            (e) keep full and accurate books and records relating to the
      Collateral, and stamp or otherwise mark such books and records in such
      manner as the Administrative Agent may reasonably require in order to
      reflect the security interests granted by this Agreement;

            (f) furnish to the Administrative Agent from time to time (but,
      unless a Default shall have occurred and be continuing, no more frequently
      than quarterly) statements and schedules further identifying and
      describing the Copyright Collateral, the Patent Collateral and the
      Trademark Collateral, respectively, and such other reports in connection
      with the Copyright Collateral, the Patent Collateral and the Trademark
      Collateral, as the Administrative Agent may reasonably request, all in
      reasonable detail;

            (g) promptly upon request of the Administrative Agent, following
      receipt by the Administrative Agent of any statements, schedules or
      reports pursuant to clause (f) above, modify this Agreement by amending
      Annexes 2, 3 and/or 4 hereto, as the case may be, to include any
      Copyright, Patent or Trademark that becomes part of the Collateral under
      this Agreement;

            (h) permit representatives of the Administrative Agent, upon
      reasonable prior notice, at any time during normal business hours to
      inspect and make abstracts from its books and records pertaining to the
      Collateral, and permit representatives of the Administrative Agent to be
      present at such Subsidiary Guarantor's place of business to receive copies
      of all communications and remittances relating to the Collateral, and
      forward copies of any notices or communications received by such
      Subsidiary Guarantor with respect to the Collateral, all in such manner as
      the Administrative Agent may require; and

            (i) upon the occurrence and during the continuance of any Default,
      upon request of the Administrative Agent, promptly notify (and such
      Subsidiary Guarantor hereby authorizes the Administrative Agent so to
      notify) each account debtor in respect of any Accounts or Instruments that
      such Collateral has been assigned to the Administrative Agent hereunder,
      and that any payments due or to become due in respect of such Collateral
      are to be made directly to the Administrative Agent.

            6.02 Other Financing Statements and Liens. Except for financing
statements securing Liens expressly permitted by Section 9.06 of the Credit
Agreement and protective filings filed against the Company in respect of
equipment, furniture or fixtures leased to or Property consigned with any
Subsidiary Guarantor, no Subsidiary Guarantor shall file or suffer to be on
file, or authorize or permit to be filed or to be on file, in any jurisdiction,
any financing statement or like instrument with respect to the Collateral in
which the Administrative Agent is not named as the sole secured party for the
benefit of the Lenders.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -15-

            6.03 Preservation of Rights. The Administrative Agent shall not be
required to take steps necessary to preserve any rights against prior parties to
any of the Collateral.

            6.04 Special Provisions Relating to Certain Collateral.

            (a) Stock Collateral.

            (1) Each Subsidiary Guarantor will cause the Stock Collateral to
constitute at all times 100% (or, with respect to any issuer that is a Foreign
Subsidiary, at least 65%) of the total number of shares of each class of capital
stock of each Issuer then outstanding.

            (2) Unless an Event of Default shall have occurred and be
continuing, and the Administrative Agent shall have given notice to the Company
of its intention to exercise rights arising hereunder or under any other Credit
Document with respect to the Stock Collateral, each Subsidiary Guarantor shall
have the right to exercise all voting, consensual and other powers of ownership
pertaining to the Stock Collateral for all purposes not inconsistent with the
terms of this Agreement, the Credit Agreement or any other instrument or
agreement referred to herein or therein, provided that such Subsidiary Guarantor
agrees that it will not vote the Stock Collateral in any manner that is
inconsistent with the terms of this Agreement, the Credit Agreement or any such
other instrument or agreement; and the Administrative Agent shall execute and
deliver to such Subsidiary Guarantor or cause to be executed and delivered to
such Subsidiary Guarantor all such proxies, powers of attorney, dividend and
other orders, and all such instruments, without recourse, as such Subsidiary
Guarantor may reasonably request for the purpose of enabling such Subsidiary
Guarantor to exercise the rights and powers that it is entitled to exercise
pursuant to this Section 6.04(a)(2).

            (3) Unless and until an Event of Default has occurred and is
continuing, each Subsidiary Guarantor shall be entitled to receive and retain
any dividends on the Stock Collateral paid in cash out of earned surplus.

            (4) If any Event of Default shall have occurred, then so long as
such Event of Default shall continue, and whether or not the Administrative
Agent or any Lender exercises any available right to declare any Secured
Obligation due and payable or seeks or pursues any other relief or remedy
available to it under applicable law or under this Agreement, the Credit
Agreement or any other agreement relating to such Secured Obligation, all
dividends and other distributions on the Stock Collateral shall be paid directly
to the Administrative Agent and retained by it as part of the Stock Collateral,
subject to the terms of this Agreement, and, if the Administrative Agent shall
so request in writing, each Subsidiary Guarantor agrees to execute and deliver
to the Administrative Agent appropriate additional dividend, distribution and
other orders and documents to that end, provided that if such Event of Default
is cured, any such dividend or distribution theretofore paid to the
Administrative Agent shall, upon request of such Subsidiary Guarantor (except to
the extent theretofore applied to the Secured Obligations), be returned by the
Administrative Agent to such Subsidiary Guarantor.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -16-

            (b) Intellectual Property.

            (1) For the purpose of enabling the Administrative Agent to exercise
rights and remedies under Section 6.05 hereof at such time as the Administrative
Agent shall be lawfully entitled to exercise such rights and remedies, and for
no other purpose, each Subsidiary Guarantor hereby grants to the Administrative
Agent, to the extent assignable, an irrevocable, non-exclusive license
(exercisable without payment of royalty or other compensation to such Subsidiary
Guarantor) to use, assign, license or sublicense any of the Intellectual
Property now owned or hereafter acquired by such Subsidiary Guarantor, wherever
the same may be located, including in such license reasonable access to all
media in which any of the licensed items may be recorded or stored and to all
computer programs used for the compilation or printout thereof.

            (2) Notwithstanding anything contained herein to the contrary, but
subject to the provisions of Section 9.05 of the Credit Agreement that limit the
right of any Subsidiary Guarantor to dispose of its Property, so long as no
Event of Default shall have occurred and be continuing, each Subsidiary
Guarantor will be permitted to exploit, use, enjoy, protect, license,
sublicense, assign, sell, dispose of or take other actions with respect to the
Intellectual Property in the ordinary course of the business of such Subsidiary
Guarantor. In furtherance of the foregoing, unless an Event of Default shall
have occurred and be continuing the Administrative Agent shall from time to
time, upon the request of the relevant Subsidiary Guarantor, execute and deliver
any instruments, certificates or other documents, in the form so requested, that
such Subsidiary Guarantor shall have certified are appropriate (in its judgment)
to allow it to take any action permitted above (including relinquishment of the
license provided pursuant to clause (1) immediately above as to any specific
Intellectual Property). Further, upon the payment in full of all of the Secured
Obligations and cancellation or termination of the Commitments and Letter of
Credit Liabilities or earlier expiration of this Agreement or release of the
Collateral, the license granted pursuant to clause (1) immediately above shall
expire by its own terms without further action on the part of the Company or the
Administrative Agent. The exercise of rights and remedies under Section 6.05
hereof by the Administrative Agent shall not terminate the rights of the holders
of any licenses or sublicenses theretofore granted by each Subsidiary Guarantor
in accordance with the first sentence of this clause (2).

            (c) Motor Vehicles. At any time after the occurrence and during the
continuance of an Event of Default, each Subsidiary Guarantor shall, upon the
request of the Administrative Agent, deliver to the Administrative Agent
originals of the certificates of title or ownership for the Motor Vehicles owned
by it with the Administrative Agent listed as lienholder and take such other
action as the Administrative Agent shall deem appropriate to perfect the
security interest created hereunder in all such Motor Vehicles.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -17-

            6.05 Events of Default, Etc. During the period during which an Event
of Default shall have occurred and be continuing:

            (a) each Subsidiary Guarantor shall, at the request of the
      Administrative Agent, assemble the Collateral owned by it at such place or
      places, reasonably convenient to both the Administrative Agent and such
      Subsidiary Guarantor, designated in its request;

            (b) the Administrative Agent may make any reasonable compromise or
      settlement deemed desirable with respect to any of the Collateral and may
      extend the time of payment, arrange for payment in installments, or
      otherwise modify the terms of, any of the Collateral;

            (c) the Administrative Agent shall have all of the rights and
      remedies with respect to the Collateral of a secured party under the
      Uniform Commercial Code (whether or not said Code is in effect in the
      jurisdiction where the rights and remedies are asserted) and such
      additional rights and remedies to which a secured party is entitled under
      the laws in effect in any jurisdiction where any rights and remedies
      hereunder may be asserted, including, without limitation, the right, to
      the maximum extent permitted by law, to exercise all voting, consensual
      and other powers of ownership pertaining to the Collateral as if the
      Administrative Agent were the sole and absolute owner thereof (and such
      Subsidiary Guarantor agrees to take all such action as may be appropriate
      to give effect to such right);

            (d) the Administrative Agent in its discretion may, in its name or
      in the name of the relevant Subsidiary Guarantor or otherwise, demand, sue
      for, collect or receive any money or Property at any time payable or
      receivable on account of or in exchange for any of the Collateral, but
      shall be under no obligation to do so; and

            (e) the Administrative Agent may, upon ten business days' prior
      written notice to the relevant Subsidiary Guarantor of the time and place,
      with respect to the Collateral or any part thereof that shall then be or
      shall thereafter come into the possession, custody or control of the
      Administrative Agent, the Lenders or any of their respective agents, sell,
      lease, assign or otherwise dispose of all or any part of such Collateral,
      at such place or places as the Administrative Agent deems best, and for
      cash or for credit or for future delivery (without thereby assuming any
      credit risk), at public or private sale, without demand of performance or
      notice of intention to effect any such disposition or of the time or place
      thereof (except such notice as is required above or by applicable statute
      and cannot be waived), and the Administrative Agent or any Lender or
      anyone else may be the purchaser, lessee, assignee or recipient of any or
      all of the Collateral so disposed of at any public sale (or, to the extent
      permitted by law, at any private sale) and thereafter hold the same
      absolutely, free from any claim or right of whatsoever kind, including any
      right or equity of redemption (statutory or otherwise), of such Subsidiary
      Guarantor, any such demand, notice and right or equity being hereby
      expressly waived and released. In the event of any sale, assignment, or
      other disposition of any of the Trademark Collateral, the

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -18-

      goodwill connected with and symbolized by the Trademark Collateral subject
      to such disposition shall be included, and such Subsidiary Guarantor shall
      supply to the Administrative Agent or its designee, for inclusion in such
      sale, assignment or other disposition, all Intellectual Property relating
      to such Trademark Collateral. The Administrative Agent may, without notice
      or publication, adjourn any public or private sale or cause the same to be
      adjourned from time to time by announcement at the time and place fixed
      for the sale, and such sale may be made at any time or place to which the
      sale may be so adjourned.

The proceeds of each collection, sale or other disposition under this Section
6.05, including by virtue of the exercise of the license granted to the
Administrative Agent in Section 6.04(b) hereof, shall be applied in accordance
with Section 6.09 hereof.

            Each Subsidiary Guarantor recognizes that, by reason of certain
prohibitions contained in the Securities Act of 1933, as amended, and applicable
state securities laws, the Administrative Agent may be compelled, with respect
to any sale of all or any part of the Collateral, to limit purchasers to those
who will agree, among other things, to acquire the Collateral for their own
account, for investment and not with a view to the distribution or resale
thereof. Each Subsidiary Guarantor acknowledges that any such private sales may
be at prices and on terms less favorable to the Administrative Agent than those
obtainable through a public sale without such restrictions, and, notwithstanding
such circumstances, agrees that any such private sale shall be deemed to have
been made in a commercially reasonable manner and that the Administrative Agent
shall have no obligation to engage in public sales and no obligation to delay
the sale of any Collateral for the period of time necessary to permit the
respective Issuer or issuer thereof to register it for public sale.

            6.06 Deficiency. If the proceeds of sale, collection or other
realization of or upon the Collateral pursuant to Section 6.05 hereof are
insufficient to cover the costs and expenses of such realization and the payment
in full of the Secured Obligations, each Subsidiary Guarantor shall remain
liable, jointly and severally, for any deficiency.

            6.07 Removals, Etc. Without at least 10 days' prior written notice
to the Administrative Agent, no Subsidiary Guarantor shall (i) maintain any of
its books and records with respect to the Collateral at any office or maintain
its principal place of business at any place, or permit any Inventory or
Equipment to be located anywhere, other than at the address indicated beneath
the signature of the Company to the Credit Agreement or at one of the locations
identified in Annex 6 hereto or in transit from one of such locations to another
or (ii) change its name, or the name under which it does business, from the name
shown on the signature pages hereto.

            6.08 Private Sale. The Administrative Agent and the Lenders shall
incur no liability as a result of the sale of the Collateral, or any part
thereof, at any private sale pursuant to Section 6.05 hereof conducted in a
commercially reasonable manner. Each Subsidiary Guarantor hereby waives any
claims against the Administrative Agent or any Lender arising by reason of the
fact that the price at which the Collateral may have been sold at such a private
sale was less

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -19-

than the price that might have been obtained at a public sale or was less than
the aggregate amount of the Secured Obligations, even if the Administrative
Agent accepts the first offer received and does not offer the Collateral to more
than one offeree.

            6.09 Application of Proceeds. Except as otherwise herein expressly
provided and except as provided below in this Section 6.09, the proceeds of any
collection, sale or other realization of all or any part of the Collateral
pursuant hereto, and any other cash at the time held by the Administrative Agent
under Section 5 hereof or this Section 6, shall be applied by the Administrative
Agent:

            First, to the payment of the costs and expenses of such collection,
      sale or other realization, including reasonable out-of-pocket costs and
      expenses of the Administrative Agent and the fees and expenses of its
      agents and counsel, and all expenses incurred and advances made by the
      Administrative Agent in connection therewith;

            Next, to the payment in full of the Secured Obligations, in each
      case equally and ratably in accordance with the respective amounts thereof
      then due and owing or as the Lenders holding the same may otherwise agree;
      and

            Finally, to the payment to such Subsidiary Guarantor, or its
      successors or assigns, or as a court of competent jurisdiction may direct,
      of any surplus then remaining.

            As used in this Section 6, "proceeds" of Collateral shall mean cash,
securities and other Property realized in respect of, and distributions in kind
of, Collateral, including any thereof received under any reorganization,
liquidation or adjustment of debt of any Subsidiary Guarantor or any issuer of
or obligor on any of the Collateral.

            6.10 Attorney-in-Fact. Without limiting any rights or powers granted
by this Agreement to the Administrative Agent while no Event of Default has
occurred and is continuing, upon the occurrence and during the continuance of
any Event of Default the Administrative Agent is hereby appointed the
attorney-in-fact of each Subsidiary Guarantor for the purpose of carrying out
the provisions of this Section 6 and taking any action and executing any
instruments that the Administrative Agent may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the
foregoing, so long as the Administrative Agent shall be entitled under this
Section 6 to make collections in respect of the Collateral, the Administrative
Agent shall have the right and power to receive, endorse and collect all checks
made payable to the order of such Subsidiary Guarantor representing any
dividend, payment or other distribution in respect of the Collateral or any part
thereof and to give full discharge for the same.

            6.11 Perfection. Prior to or concurrently with the execution and
delivery of this Agreement, each Subsidiary Guarantor shall (i) file such
financing statements and other documents in such offices as the Administrative
Agent may request to perfect the security interests granted by Section 4 of this
Agreement and (ii) deliver to the Administrative Agent all

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -20-

certificates identified in Annex 1 hereto, accompanied by undated stock powers
duly executed in blank to the extent any of such certificates have not
previously been delivered to the Administrative Agent.

            6.12 Termination; Release of Liens. When all Secured Obligations
shall have been paid in full and the Commitments of the Lenders under the Credit
Agreement and all Letter of Credit Liabilities shall have expired or been
terminated, this Agreement shall terminate, and the Administrative Agent shall
forthwith cause to be assigned, transferred and delivered, against receipt but
without any recourse, warranty or representation whatsoever, any remaining
Collateral and money received in respect thereof, to or on the order of the
relevant Subsidiary Guarantor and to be released and canceled all licenses and
rights referred to in Section 6.04(b) hereof. The Administrative Agent shall
also execute and deliver to such Subsidiary Guarantor upon such termination such
Uniform Commercial Code termination statements, certificates for terminating the
Liens on the Motor Vehicles and such other documentation as shall be reasonably
requested by such Subsidiary Guarantor to effect the termination and release of
the Liens on the Collateral. The Liens granted to the Administrative Agent
hereby shall also be released in accordance with Sections 9.24 and 11.09 of the
Credit Agreement.

            6.13 Further Assurances. Each Subsidiary Guarantor agrees that, from
time to time upon the written request of the Administrative Agent, such
Subsidiary Guarantor will execute and deliver such further documents and do such
other acts and things as the Administrative Agent may reasonably request in
order fully to effect the purposes of this Agreement.

            6.14 Release of Motor Vehicles. So long as no Default shall have
occurred and be continuing, upon the request of the relevant Subsidiary
Guarantor, the Administrative Agent shall execute and deliver to the Subsidiary
Guarantor such instruments as such Subsidiary Guarantor shall reasonably request
to remove the notation of the Administrative Agent as lienholder on any
certificate of title for any Motor Vehicle; provided that any such instruments
shall be delivered, and the release effective only upon receipt by the
Administrative Agent of a certificate from such Subsidiary Guarantor stating
that the Motor Vehicle the lien on which is to be released is to be sold or has
suffered a casualty loss (with title thereto passing to the casualty insurance
company (or its designee) therefor in settlement of the claim for such loss) and
any proceeds of such sale or casualty loss being paid to the Administrative
Agent hereunder.

            Section 7. Miscellaneous.

            7.01 No Waiver. No failure on the part of the Administrative Agent
or any Lender to exercise, and no course of dealing with respect to, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise by the Administrative
Agent or any Lender of any right, power or remedy hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein are cumulative and are not exclusive of any remedies
provided by law.

                   Subsidiary Guarantee and Security Agreement

<PAGE>
                                      -21-

            7.02 Notices. All notices, requests, consents and demands hereunder
shall be in writing and telecopied or delivered to the intended recipient at its
"Address for Notices" specified pursuant to Section 12.02 of the Credit
Agreement and shall be deemed to have been given at the times specified in said
Section 12.02.

            7.03 Expenses. Each Subsidiary Guarantor, jointly and severally,
agrees to reimburse each of the Lenders and the Administrative Agent for all
reasonable costs and expenses of the Lenders and the Administrative Agent
(including, without limitation, the reasonable fees and expenses of legal
counsel) in connection with (i) any Default and any enforcement or collection
proceeding resulting therefrom, including, without limitation, all manner of
participation in or other involvement with (w) performance by the Administrative
Agent of any obligations of such Subsidiary Guarantor in respect of the
Collateral that such Subsidiary Guarantor has failed or refused to perform, (x)
bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation
proceedings, or any actual or attempted sale, or any exchange, enforcement,
collection, compromise or settlement in respect of any of the Collateral, and
for the care of the Collateral and defending or asserting rights and claims of
the Administrative Agent in respect thereof, by litigation or otherwise,
including expenses of insurance, (y) judicial or regulatory proceedings and (z)
workout, restructuring or other negotiations or proceedings (whether or not the
workout, restructuring or transaction contemplated thereby is consummated) and
(ii) the enforcement of this Section 7.03, and all such costs and expenses shall
be Secured Obligations entitled to the benefits of the collateral security
provided pursuant to Section 4 hereof.

            7.04 Amendments, Etc. The terms of this Agreement may be waived,
altered or amended only by an instrument in writing duly executed by each
Subsidiary Guarantor and the Administrative Agent (with the consent of the
Lenders as specified in Section 11.09 of the Credit Agreement). Any such
amendment or waiver shall be binding upon the Administrative Agent and each
Lender, each holder of any of the Secured Obligations and each Subsidiary
Guarantor.

            7.05 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the respective successors and assigns of each
Subsidiary Guarantor, the Administrative Agent, the Lenders and each holder of
any of the Secured Obligations; provided, however, that no Subsidiary Guarantor
shall assign or transfer its rights hereunder without the prior written consent
of the Administrative Agent.

            7.06 Captions. The captions and section headings appearing herein
are included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

            7.07 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and either of the parties hereto may execute this Agreement by
signing any such counterpart.

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

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -22-

            7.09 Agents and Attorneys-in-Fact. The Administrative Agent may
employ agents and attorneys-in-fact in connection herewith and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith.

            7.10 Severability. If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by law,
(i) the other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in favor of the Administrative
Agent and the Lenders in order to carry out the intentions of the parties hereto
as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -23-

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

                                    SUBSIDIARY GUARANTORS

                                    LAGASSE BROS., INC.

                                    By _________________________
                                     Title:

                                    AZERTY INCORPORATED

                                    By _________________________
                                     Title:

                   Subsidiary Guarantee and Security Agreement
<PAGE>
                                      -24-

                                    ADMINISTRATIVE AGENT

                                    THE CHASE MANHATTAN BANK,
                                      as Administrative Agent

                                    By _________________________
                                     Title:

                   Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 1

                                 Pledged Stock

                         [See Section 2.04(b) and (c)]

             Annex 1 to Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 2

                 LIST OF COPYRIGHTS, COPYRIGHT REGISTRATIONS AND
                    APPLICATIONS FOR COPYRIGHT REGISTRATIONS

                              [See Section 2.04(d)]

Title            Date Filed         Registration No.              Effective Date
--------------------------------------------------------------------------------

             Annex 2 to Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 3

                    LIST OF PATENTS AND PATENT APPLICATIONS

                             [See Section 2.04(d)]

File            Patent      Country         Registration No.         Date
-------------------------------------------------------------------------

             Annex 3 to Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 4

                LIST OF TRADE NAMES, TRADEMARKS, SERVICES MARKS,
                  TRADEMARK AND SERVICE MARK REGISTRATIONS AND
            APPLICATIONS FOR TRADEMARK AND SERVICE MARK REGISTRATIONS

                              [See Section 2.04(d)]

                                 U.S. Trademarks

                             Application (A)
                            Registration (R)                Registration
Mark                       or Series No. (S)               or Filing Date
-------------------------------------------------------------------------

             Annex 4 to Subsidiary Guarantee and Security Agreement
<PAGE>
                                       -2-

                              Foreign Trademarks

             Application (A)                             Registration or
Mark         Registration (R)           Country          Filing Date (F)
------------------------------------------------------------------------

             Annex 4 to Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 5

                LIST OF CONTRACTS, LICENSES AND OTHER AGREEMENTS

                       [See Section 2.04(d), (e) and (f)]

             Annex 5 to Subsidiary Guarantee and Security Agreement
<PAGE>

                                                                         ANNEX 6

                                LIST OF LOCATIONS

                               [See Section 6.07]

             Annex 6 to Subsidiary Guarantee and Security Agreement

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