Document:

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                                                               EXHIBIT 10(xcvii)

                               GUARANTY AGREEMENT

         THIS GUARANTY AGREEMENT, dated as of December 17, 2002 (this
"Guaranty"), is executed and delivered by HAMILTON BEACH/PROCTOR-SILEX, INC., a
Delaware corporation (the "Company"), its U.S. Subsidiaries identified as U.S.
Subsidiary Borrowers on the signature pages hereto and any additional U.S.
Subsidiaries of the Company which become parties hereto from time to time (the
"U.S. Subsidiary Borrowers"; together with the Company, the "Guarantors"), in
favor of WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as administrative
agent for the Lenders (the "Administrative Agent"), ABN AMRO Bank N.V., Canada
Branch, in its capacity as Canadian agent for the Lenders (the "Canadian Agent";
together with the Administrative Agent, the "Agents"), and the Lenders for the
benefit of PROCTOR-SILEX CANADA INC., an Ontario corporation, and any additional
Canadian Subsidiaries of the Company which become Canadian Borrowers party to
the Credit Agreement referred to below (each a "Canadian Borrower"; collectively
the "Canadian Borrowers") (the Canadian Borrowers, together with the Guarantors,
may be referred to herein as the "Borrowers"). All capitalized terms used herein
and not otherwise defined shall have the meanings ascribed to such terms in the
Credit Agreement.

                                    RECITALS

         WHEREAS, the Guarantors, the Canadian Borrowers, the Agents and the
Lenders identified therein entered into that certain Credit Agreement dated as
of December 17, 2002 (as amended, modified, supplemented, extended, renewed,
restated or replaced from time to time, the "Credit Agreement");

         WHEREAS, each Guarantor is organized under the laws of, and resident
in, the United States;

         WHEREAS, the Lenders have required that the Guarantors execute and
deliver this Guaranty as a condition precedent to entering into the Credit
Agreement and the other Credit Documents; and

         WHEREAS, because of the direct and indirect benefit to the Guarantors
from the Loans, the Letters of Credit and the Bankers' Acceptances to be
provided to the Borrowers, the Guarantors have agreed to guarantee the
Obligations of the Canadian Borrowers under the Credit Agreement as set forth
herein.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantors hereby agree as follows:

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                                    AGREEMENT

         1.       Guaranty of Payment. Subject to the limitation set forth in
Section 11 hereof, the Guarantors, jointly and severally, hereby unconditionally
guarantee to the Agents and the Lenders the prompt payment, when due (after
giving effect to all applicable grace periods), by acceleration or otherwise, of
the Indebtedness. For the purposes hereof, the term "Indebtedness" means any and
all of the Canadian Obligations, howsoever evidenced, whether now existing or
hereafter arising, and any and all expenses (including reasonable fees and
expenses of legal counsel), fees and the amount of prior claims incurred or paid
by or on behalf of the Lenders or the Agents in enforcing any rights hereunder.
The guaranty of the Guarantors as set forth herein is a guaranty of payment and
not of collection.

         2.       Modifications to Indebtedness, Collateral, etc. The Guarantors
agree that (a) all or any part of the security now or hereafter held, if any,
for the Indebtedness may be exchanged, compromised or surrendered from time to
time; (b) neither the Agents nor the Lenders shall have any obligation to
protect, perfect, secure or insure any such security interests, liens or
encumbrances, if any, hereafter held for the Indebtedness or the properties
subject thereto; (c) the time or place of payment of the Indebtedness may be
changed or extended, in whole or in part, to a time certain or otherwise, and
may be renewed or accelerated, in whole or in part; (d) the Canadian Borrowers
and any other party liable for payment under the Credit Documents may be granted
indulgences generally; (e) any of the provisions of the Notes or any of the
other Credit Documents may be modified, amended, supplemented or waived; (f) any
party (including any co-guarantor) liable for the payment thereof may be granted
indulgences or released; and (g) any deposit balance for the credit of any of
the Canadian Borrowers or any other party liable for the payment of the
Indebtedness or liable upon any security therefor may be released, in whole or
in part, at, before or after the stated, extended or accelerated maturity of the
Indebtedness, all without notice to or further assent by the Guarantors, which
shall remain bound thereon, notwithstanding any such exchange, compromise,
surrender, extension, renewal, acceleration, modification, indulgence or
release.

         3.       Waiver of Rights. The Guarantors expressly waive: (a) notice
of acceptance of this Guaranty by the Agents and the Lenders and of all
extensions of credit to the Canadian Borrowers by the Lenders; (b) presentment
and demand for payment or performance of any of the Indebtedness; (c) protest
and notice of dishonor or of default to the Guarantors or to any other party
with respect to the Indebtedness or with respect to any security therefor; (d)
notice of the Lenders obtaining, amending, substituting for, releasing, waiving
or modifying any security interest, liens or the encumbrances, if any, hereafter
securing the Indebtedness, or the Lender's subordinating, compromising,
discharging or releasing such security interests, liens or encumbrances; (e) all
other notices to which the Guarantors might otherwise be entitled in their
capacity as Guarantors; (f) demand for payment under this Guaranty; and (g) any
right to assert against the Lenders, as a defense, counterclaim, set-off or
cross-claim, any defense (legal or equitable), set-off, counterclaim or claim
which the Guarantors may now or hereafter have against the Lenders or the
Agents, but such waiver shall not prevent the Guarantors from asserting against
the Lenders in a separate action, any claim, action, cause of action, or demand
that the Guarantors might have, whether or not arising out of this Guaranty.

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         4.       Primary Liability of Guarantors. The Guarantors agree that
this Guaranty may be enforced by the Administrative Agent without the necessity
at any time of resorting to or exhausting any other security or collateral and
without the necessity at any time of having recourse to the Notes or any other
of the Credit Documents or any collateral, if any, hereafter securing the
Indebtedness or otherwise and the Guarantors hereby waive (to the extent not
prohibited by applicable law) the right to require the Administrative Agent, the
Canadian Agent or any Lender to proceed against the Canadian Borrowers or any
other person (including a co-guarantor) or to require the Administrative Agent,
the Canadian Agent or any Lender to pursue any other remedy or enforce any other
right. The Guarantors further agree that the Guarantors shall have no right of
subrogation, contribution, reimbursement or indemnity against the Canadian
Borrowers or any other Guarantor for amounts paid under this Guaranty until such
time as the Canadian Obligations have been paid in full, all Credit Documents
and all Lender Hedging Agreements between any Canadian Borrower and any Lender
(including any Affiliate of a Lender) have been terminated, all Commitments
under the Credit Agreement have been terminated and no Person or Governmental
Authority shall have any right to request any return or reimbursement of funds
from the Lenders in connection with monies received under the Credit Documents.
The Guarantors further agree that nothing contained herein shall prevent the
Administrative Agent from suing on the Notes or any of the other Credit
Documents or foreclosing its security interest in or lien on any collateral, if
any, securing the Indebtedness or from exercising any other rights available to
it under the Credit Agreement, the Notes, any of the other Credit Documents, or
any other instrument of security, if any, and the exercise of any of the
aforesaid rights and the completion of any foreclosure proceedings shall not
constitute a discharge of any of the Guarantors' obligations hereunder; it being
the purpose and intent of the Guarantors that the Guarantors' obligations
hereunder shall be absolute, independent and unconditional under any and all
circumstances. Neither the Guarantors' obligations under this Guaranty nor any
remedy for the enforcement thereof shall be impaired, modified, changed or
released in any manner whatsoever by an impairment, modification, change,
release or limitation of the liability of the Canadian Borrowers or by reason of
the bankruptcy or insolvency of a Canadian Borrower. The Guarantors acknowledge
that the term "Indebtedness" as used herein includes any payments made by the
Canadian Borrowers to the Lenders and subsequently returned by the Lenders to
the Canadian Borrowers or a trustee of any of the Canadian Borrowers pursuant to
the bankruptcy or insolvency of any of the Canadian Borrowers.

         5.       Attorneys' Fees and Costs of Collection. If at any time or
times hereafter the Administrative Agent employs counsel to pursue collection,
to intervene, or to sue for enforcement of this Guaranty or any other Credit
Document, or to file a petition, complaint, answer, motion or other pleading in
any suit or proceeding relating to this Guaranty or any other Credit Document,
then in such event and until paid, all of the reasonable attorneys' fees
relating thereto shall be an additional liability of the Guarantors to the
Administrative Agent, payable on demand.

         6.       Setoff/Security. As security for each Guarantor's obligations
hereunder, each Guarantor agrees that any Lender shall have the right,
immediately and without further action by it, to set off against the
Indebtedness all money owed by any Lender in any capacity to a Guarantor,
whether or not due, and such Lender shall be deemed to have made a charge
against any such money immediately upon the occurrence of such obligation
becoming due even though such charge

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is made or entered on the books of such Lender subsequent thereto. In addition,
the Guarantors have secured their obligations under this Guaranty pursuant to
the Security Documents of even date herewith.

         7.       Term of Guaranty. This Guaranty shall be a continuing guaranty
and shall continue in full force and effect until the Indebtedness is fully
paid, performed and discharged, all Credit Documents and all Lender Hedging
Agreements between any Canadian Borrower and any Lender (including any Affiliate
of a Lender) have been terminated and all commitments of the Lenders to the
Canadian Borrowers have been terminated. This Guaranty covers all Indebtedness
whether presently existing and outstanding or arising subsequent to the date
hereof including all amounts advanced by the Lenders to the Canadian Borrowers
in increments or installments. Notwithstanding the foregoing, this Guaranty
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Indebtedness is rescinded or
must otherwise be restored or returned by the Lenders upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of any of the Canadian
Borrowers, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, any of the Canadian
Borrowers or any substantial part of its property, or otherwise, all as though
such payments had not been made.

         8.       Representations and Warranties. Each Guarantor represents and
warrants to the Lenders (i) that this Guaranty is binding upon and enforceable
against such Guarantor (and any successors and assigns), in accordance with its
terms, except that such enforceability may be subject to (a) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors' rights generally and (b) general principles of
equity (regardless of whether such enforceability is considered in a proceeding
at law or in equity), (ii) that the execution and delivery of this Guaranty does
not violate or constitute a breach of any agreement to which such Guarantor is a
party or of any applicable laws except for such violations or breaches that
could not reasonably be expected to have a Material Adverse Effect, (iii) that
there is no litigation, claim, action or proceeding pending, or, to the best
knowledge of such Guarantor, threatened against any Guarantor which, if
adversely determined, would have or reasonably be expected to have a Material
Adverse Effect and (iv) that such Guarantor will furnish, with reasonable
promptness upon any such request, such other information regarding the business,
properties or financial condition of such Guarantor as the Administrative Agent,
the Canadian Agent or the Lenders reasonably request.

         9.       Financial Condition of Canadian Borrowers. The Guarantors
represent and warrant to the Lenders that the Guarantors have knowledge of the
Canadian Borrowers' financial condition and affairs and represent and agree that
each will keep so informed while this Guaranty is in force. The Guarantors agree
that the Agents and the Lenders will have no obligation to investigate the
financial condition or affairs of the Canadian Borrowers for the benefit of the
Guarantors nor to advise the Guarantors of any fact respecting, or any change
in, the financial condition or affairs of the Canadian Borrowers which might
come to the knowledge of either of the Agents or any of the Lenders at any time,
whether or not either of the Agents or any of the Lenders knows or believes or
has reason to know or believe that any such fact or change is unknown to the
Guarantors or might

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(or does) materially increase the risk of the Guarantors as guarantors or might
(or would) affect the willingness of a Guarantor to continue as guarantor with
respect to the Indebtedness.

         10.      Additional Liability of Guarantors. If a Guarantor is or
becomes liable for any indebtedness owing by the Canadian Borrowers to the
Lenders whether by endorsement or any other means other than under this
Guaranty, such liability shall not be in any manner impaired or reduced hereby
but shall have all and the same force and effect it would have had if this
Guaranty had not existed and such Guarantor's liability hereunder shall not be
in any manner impaired or reduced thereby.

         11.      Limitation on Guaranty. Notwithstanding any provision to the
contrary contained herein or in any of the other Credit Documents, to the extent
the obligations of any Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any
applicable state or federal law relating to fraudulent conveyances or transfers)
then the obligations of such Guarantor hereunder shall be limited to the maximum
amount that is permissible under applicable law (whether federal or state).

         12.      Cumulative Rights. All rights of the Agents and the Lenders
hereunder or under any other Credit Document are separate and cumulative and may
be pursued separately, successively or concurrently, or not pursued, without
affecting or limiting any other right of the Agents and the Lenders and without
affecting or impairing the liability of a Guarantor.

         13.      Multiple Counterparts; Pronouns; Captions; Severability. This
Guaranty may be executed in multiple counterparts, each of which shall be deemed
an original but all of which shall constitute but one and the same document. The
pronouns used in this instrument shall be construed as masculine, feminine or
neuter as the occasion may require. Captions are for reference only and in no
way limit the terms of the Guaranty. Invalidation of any one or more of the
provisions of this Guaranty shall in no way affect any of the other provisions
hereof, which shall remain in full force and effect.

         14.      Successors and Assigns. This Guaranty is intended for and
shall inure to the benefit of the Agents, the Lenders and each and every person
who shall from time to time be or become the owner or holder of any of the
Indebtedness, and each and every reference herein to "Lenders" shall include and
refer to each and every successor or permitted assignee of the Lenders at any
time holding or owning any part of or interest in any part of the Indebtedness
and any Affiliate of a Lender which has entered into a Lender Hedging Agreement
with any Canadian Borrower. This Guaranty shall be transferable and negotiable
with the same force and effect, and to the same extent, that the Indebtedness is
transferable and negotiable under the terms of the Credit Agreement and the
other Credit Documents, it being understood and stipulated that upon an
assignment or transfer, in compliance with the terms of the Credit Agreement and
the other Credit Documents, by a Lender of any of the Indebtedness the legal
holder or owner of said Indebtedness (or a part thereof or interest therein thus
transferred or assigned by such Lender) shall (except as otherwise stipulated by
such Lender in its assignment) have and may exercise all of the rights granted
to the Lenders under this Guaranty to the extent of that part of or interest in
the Indebtedness thus assigned or

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transferred to said person. The Guarantors expressly waive notice of transfer or
assignment of the Indebtedness, or any part thereof (other than any notice
required to be given them in their capacity as Borrowers pursuant to Section
14.3 of the Credit Agreement), or of the rights of the Administrative Agent, the
Canadian Agent and the Lenders hereunder. Failure to give notice will not affect
the liabilities of each Guarantor hereunder.

         15.      Notices. All notices and other communications provided for
hereunder shall be deemed effective if in writing and delivered in conformance
with Section 14.1 of the Credit Agreement.

         16.      Governing Law; Venue.

                           (a)      THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS
                  OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
                  AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
                  NEW YORK. THE TERMS OF SECTION 14.12 OF THE CREDIT AGREEMENT
                  ARE HEREBY INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS,
                  AND THE PARTIES HERETO AGREE TO SUCH TERMS.

                           (b)      Each Guarantor hereby irrevocably waives any
                  objection which it may now or hereafter have to the laying of
                  venue of any of the aforesaid actions or proceedings arising
                  out of or in connection with this Guaranty brought in the
                  courts referred to in subsection (a) hereof and hereby further
                  irrevocably waives and agrees not to plead or claim in any
                  such court that any such action or proceeding brought in any
                  such court has been brought in an inconvenient form.

         17.      WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, THE SUBSIDIARY GUARANTORS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM ARISING FROM OR RELATED TO
THIS GUARANTY, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

         18.      Taxes. All payments made by the Guarantors under this Guaranty
shall be made free and clear of, and without deduction or withholding for or on
account of, any Non-Excluded Taxes; provided, however, that such payments shall
be subject to the provisions of Section 4.13 of the Credit Agreement which are
incorporated herein, mutatis mutandis.

         19.      Rights of Contribution. The Guarantors agree among themselves
that, in connection with payments made hereunder, each Guarantor shall have
contribution rights against the other Guarantors as permitted under applicable
law. Such contribution rights shall be subordinate and subject in right of
payment to the obligations of the Guarantors under the Credit Documents and no
Guarantor shall exercise such rights of contribution until all Indebtedness has
been paid in full, all

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Credit Documents and all Lender Hedging Agreements between any Canadian Borrower
and any Lender (including any Affiliate of a Lender) have been terminated and
the Commitments have terminated.

         20.      Judgment Currency.

                  (a)      If for the purposes of obtaining judgment in any
         court it is necessary to convert all or any part of the Indebtedness or
         any other amount due to the Lenders hereunder or under any security in
         respect of the Guarantors' obligations hereunder in any currency (the
         "Original Currency") into another currency (the "Other Currency") each
         Guarantor to the fullest extent that it may effectively do so, agrees
         that the rate of exchange used shall be that at which, in accordance
         with normal banking procedures, the Administrative Agent could purchase
         the Original Currency with the Other Currency at its principal offices
         in Charlotte, North Carolina on the day (a "Business Day") on which the
         Administrative Agent is open for the transaction of its banking
         business at such offices immediately preceding the day on which any
         such judgment, or any relevant part thereof, is paid or otherwise
         satisfied.

                  (b)      The obligation of each Guarantor in respect of any
         sum due in the Original Currency from it to the Lenders hereunder or
         under any security in respect of the Guarantor's obligation hereunder
         shall, notwithstanding any judgment in any Other Currency, be
         discharged only to the extent that on the Business Day following
         receipt by the Administrative Agent of any sum adjudged to be so due in
         such Other Currency or of any other sum in any Other Currency the
         Administrative Agent may, in accordance with its normal banking
         procedures, purchase the Original Currency with such Other Currency. If
         the amount of the Original Currency so purchased is less than the sum
         originally due to the Lenders in the Original Currency, the Guarantors
         shall, as a separate obligation and notwithstanding any such judgment,
         indemnify the Administrative Agent against such loss, and if the amount
         of the Original Currency so purchased exceeds the sum originally due to
         the Lenders, the Administrative Agent shall remit such excess to the
         Guarantors.

            [The remainder of this page is intentionally left blank.]

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         The Guarantors have caused this Guaranty to be duly executed as of the
date first above written.

COMPANY:                            HAMILTON BEACH/PROCTOR-SILEX, INC.,
                                    a Delaware corporation

                                    By: /s/ James H. Taylor
                                       --------------------------------------
                                    Name:  James H. Taylor
                                    Title: Vice President and Treasurer

U.S. SUBSIDIARY BORROWERS: [NONE]<PAGE>

                                                              EXHIBIT 10(xcviii)

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (this "Pledge Agreement") is entered into as of
December 17, 2002 by and among HB-PS HOLDING COMPANY, INC., a Delaware
corporation ("Holdings" or the "Pledgor"), and WACHOVIA BANK, NATIONAL
ASSOCIATION, in its capacity as the administrative agent under the Credit
Agreement referred to below (in such capacity, the "Administrative Agent" or the
"Agent").

                                    RECITALS

         WHEREAS, pursuant to that certain Credit Agreement dated as of the date
hereof (as amended, modified, extended, renewed or replaced from time to time,
the "Credit Agreement"), among Hamilton Beach/Proctor-Silex, Inc., a Delaware
corporation (the "Company"), the other Borrowers identified therein, the Lenders
party thereto from time to time, the Agent and ABN AMRO Bank N.V., Canada
Branch, as Canadian Agent, the U.S. Lenders have agreed to make U.S. Revolving
Loans and to issue or participate in Letters of Credit and the Canadian Lenders
have agreed to make Canadian Revolving Loans and to create Bankers' Acceptances
upon the terms and subject to the conditions set forth therein; and

         WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement, the obligation of the U.S. Lenders to make their respective U.S.
Revolving Loans and to issue or participate in Letters of Credit under the
Credit Agreement and the Canadian Lenders to make Canadian Revolving Loans and
to create Bankers' Acceptances under the Credit Agreement that the Pledgor shall
have executed and delivered this Pledge Agreement to the Agent for the benefit
of the Lenders.

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

         1.       Definitions. Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to such terms in the Credit
Agreement, and the following terms which are defined in the Uniform Commercial
Code from time to time in effect in the State of New York (the "UCC") are used
herein as so defined: Control, Entitlement Order, Securities Intermediary,
Securities Account and Security Entitlement. For purposes of this Pledge
Agreement, the term "Lender" shall include any Affiliate of any Lender which has
entered into a Lender Hedging Agreement (to the extent the obligations of any
Borrower thereunder constitute Pledgor Obligations.

         2.       Pledge and Grant of Security Interest. To secure the prompt
payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Pledgor Obligations, the
Pledgor hereby pledges and assigns to the Agent, for the benefit of the Lenders,
and grants to the Agent, for the benefit of the Lenders, a continuing security
interest in any and all right, title and interest of the Pledgor in and to the
following, whether now owned or existing or owned, acquired, or arising
hereafter (collectively, the "Pledged Collateral"):

<PAGE>

                  (a)      Pledged Capital Stock. (i) 100% (or, if less, the
         full amount owned by the Pledgor) of each class of the issued and
         outstanding Capital Stock of the Company set forth on Schedule 2(a)
         attached hereto, together with the certificates (or other agreements or
         instruments), if any, representing such Capital Stock, and all options
         and other rights, contractual or otherwise, with respect thereto
         (collectively, the "Pledged Capital Stock"), including, but not limited
         to, the following:

                           (y)      all shares, securities or other equity
                  interests representing a dividend on any of the Pledged
                  Capital Stock, or representing a distribution or return of
                  capital upon or in respect of the Pledged Capital Stock, or
                  resulting from a stock split, revision, reclassification or
                  other exchange therefor, and any subscriptions, warrants,
                  rights or options issued to the holder of, or otherwise in
                  respect of, the Pledged Capital Stock; and

                           (z)      without affecting the obligations of the
                  Pledgor under any provision prohibiting such action hereunder
                  or under the Credit Agreement, in the event of any
                  consolidation or merger involving the Company and in which the
                  Company is not the surviving entity, all shares of each class
                  of the Capital Stock of the successor entity formed by or
                  resulting from such consolidation or merger.

                  (b)      Proceeds. All proceeds and products of the foregoing,
         however and whenever acquired and in whatever form.

         Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that the Pledgor may from time to time
hereafter pledge and deliver additional shares of stock or other interests to
the Agent as collateral security for the Pledgor Obligations. Upon such pledge
and delivery to the Agent, such additional shares of stock or other interests
shall be deemed to be part of the Pledged Collateral and shall be subject to the
terms of this Pledge Agreement whether or not Schedule 2(a) is amended to refer
to such additional shares.

         3.       Security for Pledgor Obligations. The security interest
created hereby in the Pledged Collateral constitutes continuing collateral
security for all of the following, whether now existing or hereafter incurred
(the "Pledgor Obligations"): (a) all of the Obligations, howsoever evidenced,
created, incurred or acquired, whether primary, secondary, direct, contingent,
or joint and several and (b) all reasonable expenses and charges, legal and
otherwise, incurred by the Agent and/or the Lenders in collecting or enforcing
any Obligation or in realizing on or protecting any security therefor, including
without limitation the security granted hereunder.

         4.       Delivery of the Pledged Collateral; Perfection of Security
Interest. The Pledgor hereby agrees that:

                  (a)      Delivery of Certificate. The Pledgor shall deliver to
         the Agent (i) simultaneously with or prior to the execution and
         delivery of this Pledge Agreement, all certificates representing the
         Pledged Capital Stock and (ii) promptly upon the receipt thereof by or
         on behalf of the Pledgor, all other certificates and instruments
         constituting

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         Pledged Collateral. Prior to delivery to the Agent, all such
         certificates and instruments constituting Pledged Collateral shall be
         held in trust by the Pledgor for the benefit of the Agent pursuant
         hereto. All such certificates shall be delivered in suitable form for
         transfer by delivery or shall be accompanied by duly executed
         instruments of transfer or assignment in blank, substantially in the
         form provided in Exhibit 4(a) attached hereto.

                  (b)      Additional Securities. If the Pledgor shall receive
         by virtue of its being or having been the owner of any Pledged
         Collateral, any (i) certificate, including without limitation, any
         certificate representing a dividend or distribution in connection with
         any increase or reduction of capital, reclassification, merger,
         consolidation, sale of assets, combination of shares or equity
         interests, stock splits, spin-off or split-off, promissory notes or
         other instrument; (ii) option or right, whether as an addition to,
         substitution for, or an exchange for, any Pledged Collateral or
         otherwise; (iii) dividends payable in securities; or (iv) distributions
         of securities or other equity interests in connection with a partial or
         total liquidation, dissolution or reduction of capital, capital surplus
         or paid-in surplus, then the Pledgor shall receive such certificate,
         instrument, option, right or distribution in trust for the benefit of
         the Agent, shall segregate it from the Pledgor's other property and
         shall deliver it forthwith to the Agent in the exact form received
         together with any necessary endorsement and/or appropriate stock power
         duly executed in blank, substantially in the form provided in Exhibit
         4(a), to be held by the Agent as Pledged Collateral and as further
         collateral security for the Pledgor Obligations.

                  (c)      Financing Statements. The Pledgor shall execute, if
         necessary, and deliver to the Agent such UCC or other applicable
         financing statements as may be reasonably requested by the Agent in
         order to perfect and protect the security interest created hereby in
         the Pledged Collateral.

                  (d)      Provisions Relating to Securities Entitlements and
         Securities Accounts. With respect to any Pledged Collateral consisting
         of a Securities Entitlement or held in a Securities Account, (a) the
         Pledgor and the Securities Intermediary shall enter into an agreement
         with the Agent granting Control to the Agent over such Pledged
         Collateral, such agreement to be in form and substance satisfactory to
         the Agent and (b) the Agent shall be entitled, upon the occurrence and
         during the continuance of an Event of Default, to notify the applicable
         Securities Intermediary that it should follow the Entitlement Orders of
         the Agent and no longer follow the Entitlement Orders of the Pledgor.
         Upon receipt by the Pledgor of notice from a Securities Intermediary of
         its intent to terminate the Securities Account of the Pledgor held by
         such Securities Intermediary, prior to the termination of such
         Securities Account the Pledged Collateral in such Securities Account
         shall be (i) transferred to a new Securities Account which is subject
         to a control agreement as provided above or (ii) transferred to an
         account held by the Agent (in which it will be held until a new
         Securities Account is established).

         5.       Representations and Warranties. The Pledgor hereby represents
and warrants to the Agent, for the benefit of the Lenders, on the Closing Date
and the date on which any Loan is made or Letter of Credit or Bankers'
Acceptance is issued, that:

                                       3

<PAGE>

                  (a)      Authorization of Pledged Capital Stock. The Pledged
         Capital Stock is duly authorized and validly issued, is fully paid and
         nonassessable and is not subject to the preemptive rights of any
         Person. All other shares of Capital Stock constituting Pledged
         Collateral will be duly authorized and validly issued, fully paid and
         nonassessable and not subject to the preemptive rights of any Person.

                  (b)      Title. The Pledgor has good and indefeasible title to
         the Pledged Collateral and will at all times be the legal and
         beneficial owner of such Pledged Collateral free and clear of any Lien,
         other than Permitted Liens. There exists no "adverse claim" within the
         meaning of Section 8-102 of the UCC with respect to the Pledged Capital
         Stock.

                  (c)      Exercising of Rights. The exercise by the Agent of
         its rights and remedies hereunder will not violate any law or
         governmental regulation or any material contractual restriction binding
         on or affecting the Pledgor or any of its property.

                  (d)      Pledgor's Authority. No authorization, approval or
         action by, and no notice or filing with any Governmental Authority, the
         Company or third party is required (except such that have been duly
         obtained, made or given, or will be duly obtained, made or given prior
         to or contemporaneously with the granting of the security interest
         hereunder, and are in full force and effect) either (i) for the pledge
         made by the Pledgor or for the granting of the security interest by the
         Pledgor pursuant to this Pledge Agreement or (ii) for the exercise by
         the Agent or the Lenders of their rights and remedies hereunder (except
         as may be required by laws affecting the offering and sale of
         securities).

                  (e)      Security Interest/Priority. This Pledge Agreement
         creates a valid security interest in favor of the Agent, for the
         benefit of the Lenders, in the Pledged Collateral. The taking
         possession by the Agent of the certificates (if any) representing the
         Pledged Capital Stock and all other certificates and instruments
         constituting Pledged Collateral will perfect and establish the first
         priority of the Agent's security interest in all certificated Pledged
         Capital Stock and such certificates and instruments. Except as set
         forth in this Section 5(e), no action is necessary to perfect or
         otherwise protect such security interest.

                  (f)      Ownership of Capital Stock. The Pledgor owns 100% of
         the issued and outstanding Capital Stock of the Company. The Pledged
         Capital Stock is comprised solely of common stock and is as set forth
         on Schedule 2(a) attached hereto.

         6.       Covenants. The Pledgor hereby covenants that so long as any of
the Pledgor Obligations remain outstanding or any Credit Document or Lender
Hedging Agreement is in effect or any Letter of Credit shall remain outstanding,
and until all of the Commitments shall have been terminated, the Pledgor shall:

                                       4

<PAGE>

                  (a)      Books and Records. Mark its books and records (and
         shall cause the Company to mark its books and records) to reflect the
         security interest granted to the Agent, for the benefit of the Lenders,
         pursuant to this Pledge Agreement.

                  (b)      Defense of Title. Warrant and defend title to and
         ownership of the Pledged Collateral at its own expense against the
         claims and demands of all third parties claiming an interest therein,
         keep the Pledged Collateral free from all Liens, except for Permitted
         Liens, and not sell, exchange, transfer, assign, lease or otherwise
         dispose of Pledged Collateral or any interest therein, except as
         permitted under the Credit Agreement and the other Credit Documents.

                  (c)      Further Assurances. Promptly execute and deliver at
         its expense all further instruments and documents and take all further
         action that may be necessary and desirable or that the Agent may
         reasonably request in order to (i) perfect and protect the security
         interest created hereby in the Pledged Collateral (including, without
         limitation, the execution and filing of UCC financing statements and
         any and all action necessary to satisfy the Agent that the Agent has
         obtained a first priority perfected security interest in all Pledged
         Capital Stock); (ii) enable the Agent to exercise and enforce its
         rights and remedies hereunder in respect of the Pledged Collateral; and
         (iii) otherwise effect the purposes of this Pledge Agreement,
         including, without limitation and if requested by the Agent, delivering
         to the Agent proxies in respect of the Pledged Collateral, which
         proxies shall be irrevocable (i) for so long as any of the Pledgor
         Obligations remain outstanding, any Credit Document or any Lender
         Hedging Agreement is in effect or any Letter of Credit shall remain
         outstanding and (ii) until all of the Commitments shall have been
         terminated.

                  (d)      Amendments. Not make or consent to any amendment or
         other modification or waiver with respect to any of the Pledged
         Collateral or enter into any agreement or allow to exist any
         restriction with respect to any of the Pledged Collateral other than
         pursuant hereto or as may be permitted under the Credit Agreement.

                  (e)      Compliance with Securities Laws. File all reports and
         other information now or hereafter required to be filed by the Pledgor
         with the United States Securities and Exchange Commission and any other
         state, federal or foreign agency in connection with the ownership of
         the Pledged Collateral.

                  (f)      Issuance or Acquisition of Capital Stock. At all
         times own 100% of the issued and outstanding Capital Stock of the
         Company and cause any Capital Stock acquired after the date hereof to
         be listed on Schedule 2(a) hereto and to be pledged to the Agent in
         accordance with the terms hereof.

         7.       Performance of Obligations; Advances by Agent. On failure of
the Pledgor to perform any of the covenants and agreements contained herein, the
Agent may, at its sole option and in its sole discretion, perform or cause to be
performed the same and in so doing may expend such sums as the Agent may
reasonably deem advisable in the performance thereof, including, without
limitation, the payment of any insurance premiums, the payment of any taxes, a
payment to

                                       5

<PAGE>

obtain a release of a Lien or potential Lien, expenditures made in defending
against any adverse claim and all other expenditures which the Agent may make
for the protection of the security hereof or which may be compelled to make by
operation of law. All such sums and amounts so expended shall be repayable by
the Pledgor promptly upon timely notice thereof and demand therefor, shall
constitute additional Pledgor Obligations and shall bear interest from the date
said amounts are expended at the default rate set forth in Section 4.2(b) of the
Credit Agreement. No such performance of any covenant or agreement by the Agent
on behalf of the Pledgor, and no such advance or expenditure therefor, shall
relieve the Pledgor of any default under the terms of this Pledge Agreement, the
other Credit Documents or any Lender Hedging Agreement. The Agent may make any
payment hereby authorized in accordance with any bill, statement or estimate
procured from the appropriate public office or holder of the claim to be
discharged without inquiry into the accuracy of such bill, statement or estimate
or into the validity of any tax assessment, sale, forfeiture, tax lien, title or
claim except to the extent such payment is being contested in good faith by the
Pledgor in appropriate proceedings and against which adequate reserves are being
maintained in accordance with U.S. GAAP.

         8.       Events of Default. The occurrence of an event which under the
Credit Agreement would constitute an Event of Default shall be an event of
default hereunder (an "Event of Default").

         9.       Remedies.

                  (a)      General Remedies. Upon the occurrence and during the
         continuance of an Event of Default, the Agent shall have, in respect of
         the Pledged Collateral, in addition to the rights and remedies provided
         herein, in the Credit Documents, in any Lender Hedging Agreement or by
         law, the rights and remedies of a secured party under the UCC or any
         other applicable law.

                  (b)      Sale of Pledged Collateral. Upon the occurrence and
         during the continuance of an Event of Default, without limiting the
         generality of this Section and without notice, the Agent may, in its
         sole discretion, sell or otherwise dispose of or realize upon the
         Pledged Collateral, or any part thereof, in one or more parcels, at
         public or private sale, at any exchange or broker's board or elsewhere,
         at such price or prices and on such other terms as the Agent may deem
         commercially reasonable, for cash, credit or for future delivery or
         otherwise in accordance with applicable law. To the extent permitted by
         law, the Agent and any Lenders may in such event, bid for the purchase
         of such securities. The Pledgor agrees that, to the extent notice of
         sale shall be required by law and has not been waived by the Pledgor,
         any requirement of reasonable notice shall be met if notice, specifying
         the place of any public sale or the time after which any private sale
         is to be made, is personally served on or mailed, postage prepaid, to
         the Pledgor, in accordance with the notice provisions of Section 14.1
         of the Credit Agreement at least ten (10) days before the time of such
         sale. The Agent shall not be obligated to make any sale of Pledged
         Collateral regardless of notice of sale having been given. The Agent
         may adjourn any public or private sale from time to time by
         announcement at the time and place fixed therefor, and such sale may,
         without further notice, be made at the time and place to which it was
         so adjourned.

                                       6

<PAGE>

                  (c)      Private Sale. Upon the occurrence and during the
         continuance of an Event of Default, the Pledgor recognizes that the
         Agent may deem it impracticable to effect a public sale of all or any
         part of the Pledged Collateral and that the Agent may, therefore,
         determine to make one or more private sales of any such Pledged
         Collateral to a restricted group of purchasers who will be obligated to
         agree, among other things, to acquire such Pledged Collateral for their
         own account, for investment and not with a view to the distribution or
         resale thereof. The Pledgor acknowledges that any such private sale may
         be at prices and on terms less favorable to the seller than the prices
         and other terms which might have been obtained at a public sale and,
         notwithstanding the foregoing, agrees that such private sale shall be
         deemed to have been made in a commercially reasonable manner and that
         the Agent shall have no obligation to delay sale of any such Pledged
         Collateral for the period of time necessary to permit the Company to
         register such Pledged Collateral for public sale under the Securities
         Act of 1933. The Pledgor further acknowledges and agrees that any offer
         to sell such Pledged Collateral which has been (i) publicly advertised
         on a bona fide basis in a newspaper or other publication of general
         circulation in the financial community of New York, New York (to the
         extent that such offer may be advertised without prior registration
         under the Securities Act of 1933), or (ii) made privately in the manner
         described above shall be deemed to involve a "public sale" under the
         UCC, notwithstanding that such sale may not constitute a "public
         offering" under the Securities Act of 1933, and the Agent may, in such
         event, bid for the purchase of such Pledged Collateral.

                  (d)      Retention of Pledged Collateral. In addition to the
         rights and remedies hereunder, upon the occurrence and during the
         continuance of an Event of Default, the Agent may, after providing the
         notices and obtaining the consents required by Sections 9-620 and 9-621
         of the UCC or otherwise complying with the requirements of applicable
         law of the relevant jurisdiction, accept or retain all or any portion
         of the Pledged Collateral in satisfaction of the Pledgor Obligations.
         Unless and until the Agent shall have provided such notices, however,
         the Agent shall not be deemed to have retained any Pledged Collateral
         in satisfaction of the Pledgor Obligations for any reason.

                  (e)      [RESERVED].

                  (f)      Other Security. To the extent that any of the Pledgor
         Obligations are now or hereafter secured by property other than the
         Pledged Collateral (including, without limitation, real and other
         personal property owned by the Borrowers), or by a guarantee,
         endorsement or property of any other Person, then the Agent and the
         Lenders shall have the right to proceed against such other property,
         guarantee or endorsement upon the occurrence and during the continuance
         of any Event of Default, and the Agent and the Lenders have the right,
         in their sole discretion, to determine which rights, security, liens,
         security interests or remedies the Agent and the Lenders shall at any
         time pursue, relinquish, subordinate, modify or take with respect
         thereto, without in any way modifying or affecting any of them or any
         of the Agent's and the Lenders' rights or the Pledgor Obligations under
         this Pledge Agreement, under any other of the Credit Documents or under
         any Lender Hedging Agreement.

                                       7

<PAGE>

         10.      Rights of the Agent.

                  (a)      Power of Attorney. In addition to other powers of
         attorney contained herein, the Pledgor hereby designates and appoints
         the Agent, on behalf of the Lenders, and each of its designees or
         agents as attorney-in-fact of the Pledgor, irrevocably and with power
         of substitution, with authority to take any or all of the following
         actions upon the occurrence and during the continuation of an Event of
         Default:

                                    (i)      to demand, collect, settle,
                  compromise, adjust and give discharges and releases, all as
                  the Agent may reasonably determine;

                                    (ii)     to commence and prosecute any
                  actions at any court for the purposes of collecting any of the
                  Pledged Collateral and enforcing any other right in respect
                  thereof;

                                    (iii)    to defend, settle, adjust or
                  compromise any action, suit or proceeding brought and, in
                  connection therewith, give such discharge or release as the
                  Agent may deem reasonably appropriate;

                                    (iv)     to pay or discharge taxes, liens,
                  security interests, or other encumbrances levied or placed on
                  or threatened against the Pledged Collateral;

                                    (v)      to direct any parties liable for
                  any payment under any of the Pledged Collateral to make
                  payment of any and all monies due and to become due thereunder
                  directly to the Agent or as the Agent shall direct;

                                    (vi)     to receive payment of and receipt
                  for any and all monies, claims, and other amounts due and to
                  become due at any time in respect of or arising out of any
                  Pledged Collateral;

                                    (vii)    to sign and endorse any drafts,
                  assignments, proxies, stock powers, verifications, notices and
                  other documents relating to the Pledged Collateral;

                                    (viii)   to execute and deliver all
                  assignments, conveyances, statements, financing statements,
                  renewal financing statements, pledge agreements, affidavits,
                  notices and other agreements, instruments and documents that
                  the Agent may determine necessary in order to perfect and
                  maintain the security interests and liens granted in this
                  Pledge Agreement and in order to fully consummate all of the
                  transactions contemplated herein;

                                    (ix)     to exchange any of the Pledged
                  Collateral or other property upon any merger, consolidation,
                  reorganization, recapitalization or other readjustment of the
                  issuer thereof and, in connection therewith, deposit any of
                  the

                                       8

<PAGE>

                  Pledged Collateral with any committee, depository, transfer
                  agent, registrar or other designated agency upon such terms as
                  the Agent may determine;

                                    (x)      to vote for a shareholder
                  resolution, or to sign an instrument in writing, sanctioning
                  the transfer of any or all of the Pledged Capital Stock into
                  the name of the Agent or one or more of the Lenders or into
                  the name of any transferee to whom the Pledged Capital Stock
                  or any part thereof may be sold pursuant to Section 9 hereof;
                  and

                                    (xi)     to do and perform all such other
                  acts and things as the Agent may reasonably deem to be
                  necessary, proper or convenient in connection with the Pledged
                  Collateral.

         This power of attorney is a power coupled with an interest and shall be
         irrevocable (i) for so long as any of the Pledgor Obligations remain
         outstanding, any Credit Document or any Lender Hedging Agreement is in
         effect or any Letter of Credit or any Bankers' Acceptance shall remain
         outstanding and (ii) until all of the Commitments shall have been
         terminated. The Agent shall be under no duty to exercise or withhold
         the exercise of any of the rights, powers, privileges and options
         expressly or implicitly granted to the Agent in this Pledge Agreement,
         and shall not be liable for any failure to do so or any delay in doing
         so. The Agent shall not be liable for any act or omission or for any
         error of judgment or any mistake of fact or law in its individual
         capacity or its capacity as attorney-in-fact except acts or omissions
         resulting from its gross negligence or willful misconduct. This power
         of attorney is conferred on the Agent solely to protect, preserve and
         realize upon its security interest in the Pledged Collateral.

                  (b)      Assignment by the Administrative Agent. The
         Administrative Agent may from time to time assign the Pledgor
         Obligations and the Pledged Collateral to a successor Administrative
         Agent appointed pursuant to Section 13.9 of the Credit Agreement, and
         such successor shall be entitled to all of the rights and remedies of
         the Administrative Agent under this Pledge Agreement in relation
         thereto.

                  (c)      The Agent's Duty of Care. Other than the exercise of
         reasonable care to ensure the safe custody of the Pledged Collateral
         while being held by the Agent hereunder, the Agent shall have no duty
         or liability to preserve rights pertaining thereto, it being understood
         and agreed that the Pledgor shall be responsible for preservation of
         all rights in the Pledged Collateral, and the Agent shall be relieved
         of all responsibility for Pledged Collateral upon surrendering it or
         tendering the surrender of it to the Pledgor. The Agent shall be deemed
         to have exercised reasonable care in the custody and preservation of
         the Pledged Collateral in its possession if such Pledged Collateral is
         accorded treatment substantially equal to that which the Agent accords
         its own property, which shall be no less than the treatment employed by
         a reasonable and prudent agent in the industry, it being understood
         that the Agent shall not have responsibility for (i) ascertaining or
         taking action with respect to calls, conversions, exchanges,
         maturities, tenders or other matters relating to any Pledged
         Collateral, whether or not the Agent has

                                       9

<PAGE>

         or is deemed to have knowledge of such matters; or (ii) taking any
         necessary steps to preserve rights against any parties with respect to
         any Pledged Collateral.

                  (d)      Voting Rights in Respect of the Pledged Collateral.

                                    (i)      So long as no Event of Default
                  shall have occurred and be continuing, to the extent permitted
                  by law, the Pledgor may exercise any and all voting and other
                  consensual rights pertaining to the Pledged Collateral or any
                  part thereof for any purpose not inconsistent with the terms
                  of this Pledge Agreement or the Credit Agreement; and

                                    (ii)     Upon the occurrence and during the
                  continuance of an Event of Default and receipt of notice from
                  the Agent, all rights of the Pledgor to exercise the voting
                  and other consensual rights which it would otherwise be
                  entitled to exercise pursuant to paragraph (i) of this
                  subsection (d) shall cease and all such rights shall thereupon
                  become vested in the Agent which shall then have the sole
                  right to exercise such voting and other consensual rights.

                  (e)      Dividend and Distribution Rights in Respect of the
         Pledged Collateral.

                           (i)      So long as no Event of Default shall have
                  occurred and be continuing and subject to Section 4(b) hereof,
                  the Pledgor may receive and retain any and all dividends
                  (other than stock or ownership interest dividends and other
                  dividends constituting Pledged Collateral which are addressed
                  hereinabove), distributions or interest paid in respect of the
                  Pledged Collateral to the extent they are allowed under the
                  Credit Agreement.

                           (ii)     Upon the occurrence and during the
                  continuation of an Event of Default:

                                    (A)      all rights of the Pledgor to
                           receive the dividends, distributions and interest
                           payments which it would otherwise be authorized to
                           receive and retain pursuant to paragraph (i) of this
                           subsection (e) shall cease and all such rights shall
                           thereupon be vested in the Agent which shall then
                           have the sole right to receive and hold as Pledged
                           Collateral such dividends, distributions and interest
                           payments; and

                                    (B)      all dividends, distributions and
                           interest payments which are received by the Pledgor
                           contrary to the provisions of clause (A) of this
                           paragraph (ii) shall be received in trust for the
                           benefit of the Agent, shall be segregated from other
                           property or funds of the Pledgor, and shall be
                           forthwith paid over to the Agent as Pledged
                           Collateral in the exact form received, to be held by
                           the Agent as Pledged Collateral and as further
                           collateral security for the Pledgor Obligations.

                                       10

<PAGE>

                  (f)      Release of Pledged Collateral. The Agent may release
         any of the Pledged Collateral from this Pledge Agreement or may
         substitute any of the Pledged Collateral for other Pledged Collateral
         without altering, varying or diminishing in any way the force, effect,
         lien, pledge or security interest of this Pledge Agreement as to any
         Pledged Collateral not expressly released or substituted, and the
         security interest created by this Pledge Agreement shall continue as a
         first priority lien on all Pledged Collateral not expressly released or
         substituted.

                  (g)      Filing of Financing Statements. The Pledgor
         authorizes the Agent to file financing statements (including renewal
         statements and in lieu statements) and amendments thereof and
         supplements thereto with respect to the Pledged Collateral in such form
         and in such filing offices as the Agent reasonably determines
         appropriate to perfect the security interests of the Agent under this
         Pledge Agreement. Any financing statement filed by the Agent may
         contain a general description of the collateral covered thereby, as
         permitted by the UCC, which may state that the security interest
         attaches to all personal property of the debtor.

         11.      Rights of Required Lenders. All rights of the Agent hereunder,
if not exercised by the Agent, may be exercised by the Required Lenders.

         12.      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Pledgor
Obligations and any proceeds of any Pledged Collateral, when received by the
Agent or any of the Lenders in cash or its equivalent, will be applied in
reduction of the Pledgor Obligations in the order set forth in Section 4.7 of
the Credit Agreement, and the Pledgor irrevocably waives the right to direct the
application of such payments and proceeds and acknowledges and agrees that the
Agent shall have the continuing and exclusive right to apply and reapply any and
all such payments and proceeds in the Agent's sole discretion, notwithstanding
any entry to the contrary upon any of its books and records.

         13.      Costs of Counsel. If at any time hereafter, whether upon the
occurrence of an Event of Default or not, the Agent employs counsel to prepare
or consider amendments, waivers or consents with respect to this Pledge
Agreement, or to take action or make a response in or with respect to any legal
or arbitral proceeding relating to this Pledge Agreement or relating to the
Pledged Collateral, or to protect the Pledged Collateral or exercise any rights
or remedies under this Pledge Agreement or with respect to the Pledged
Collateral, then the Pledgor agrees to promptly pay upon demand any and all such
reasonable costs and expenses of the Agent, all of which costs and expenses
shall constitute Pledgor Obligations hereunder.

         14.      Continuing Agreement.

                  (a)      This Pledge Agreement shall be a continuing agreement
         in every respect and shall remain in full force and effect so long as
         any of the Pledgor Obligations remain outstanding or any Credit
         Document or Lender Hedging Agreement is in effect or any Letter of
         Credit shall remain outstanding, and until all of the Commitments
         thereunder shall have terminated. Upon such payment and termination,
         this Pledge Agreement shall be automatically terminated and the Agent
         shall, upon the request and at the expense of the

                                       11

<PAGE>

         Pledgor, forthwith release all of its liens and security interests
         hereunder and shall execute, if necessary, and deliver all UCC
         termination statements and/or other documents reasonably requested by
         the Pledgor evidencing such termination. Notwithstanding the foregoing
         all releases and indemnities provided hereunder shall survive
         termination of this Pledge Agreement.

                  (b)      This Pledge Agreement shall continue to be effective
         or be automatically reinstated, as the case may be, if at any time
         payment, in whole or in part, of any of the Pledgor Obligations is
         rescinded or must otherwise be restored or returned by the Agent or any
         Lender as a preference, fraudulent conveyance or otherwise under any
         bankruptcy, insolvency or similar law, all as though such payment had
         not been made; provided that in the event payment of all or any part of
         the Pledgor Obligations is rescinded or must be restored or returned,
         all reasonable costs and expenses (including without limitation any
         reasonable legal fees and disbursements) incurred by the Agent or any
         Lender in defending and enforcing such reinstatement shall be deemed to
         be included as a part of the Pledgor Obligations.

         15.      Amendments; Waivers; Modifications. This Pledge Agreement and
the provisions hereof may not be amended, waived, modified, changed, discharged
or terminated except as set forth in Section 14.6 of the Credit Agreement.

         16.      Successors in Interest. This Pledge Agreement shall create a
continuing security interest in the Pledged Collateral and shall be binding upon
the Pledgor, its successors and assigns and shall inure, together with the
rights and remedies of the Agent and the Lenders hereunder, to the benefit of
the Agent and the Lenders and their successors and permitted assigns; provided,
however, the Pledgor may not assign its rights or delegate its duties hereunder
without the prior written consent of each Lender or the Required Lenders, as
required by the Credit Agreement. To the fullest extent permitted by law, the
Pledgor hereby releases the Agent and each Lender, and its successors and
assigns, from any liability for any act or omission relating to this Pledge
Agreement or the Pledged Collateral, except for any liability arising from the
gross negligence or willful misconduct of the Agent, or such Lender, or its
officers, employees or agents.

         17.      Notices. All notices required or permitted to be given under
this Pledge Agreement shall be in conformance with Section 14.1 of the Credit
Agreement. Any notice to be given to the Pledgor may be given at the following
address:

                  HB-PS Holding Company, Inc.
                  4421 Waterfront Drive
                  Glen Allen, Virginia 23060
                  Attention: Chief Financial Officer
                  Telephone: 804-527-7100
                  Telecopy:  804-527-7218

                  With a copy to:

                                       12

<PAGE>

                  HB-PS Holding Company, Inc.
                  4421 Waterfront Drive
                  Glen Allen, Virginia 23060
                  Attention: General Counsel
                  Telephone: 804-527-7100
                  Telecopy:  804-527-7218

         18.      Counterparts. This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Pledge Agreement to produce or
account for more than one such counterpart.

         19.      Headings. The headings of the sections and subsections hereof
are provided for convenience only and shall not in any way affect the meaning,
construction or interpretation of any provision of this Pledge Agreement.

         20.      Governing Law; Submission to Jurisdiction and Service of
Process; Waiver of Jury Trial.

                  (a)      THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS
         OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
         INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any
         legal action or proceeding with respect to this Pledge Agreement shall
         be brought in state court in Mecklenburg County, North Carolina or New
         York County, New York, or in any federal court for the Western District
         of North Carolina or for the Southern District of New York, and, by
         execution and delivery of this Pledge Agreement, the Pledgor hereby
         irrevocably accepts for itself and in respect of its property,
         generally and unconditionally, the nonexclusive jurisdiction of such
         courts. The Pledgor further irrevocably consents to the service of
         process out of any of the aforementioned courts in any such action or
         proceeding by the mailing of copies thereof by registered or certified
         mail, postage prepaid, to it at the address set out in Section 17, such
         service to become effective three (3) days after such mailing. Nothing
         herein shall affect the right of the Administrative Agent or any Lender
         to serve process in any other manner permitted by law or to commence
         legal proceedings or to otherwise proceed against the Pledgor in any
         other jurisdiction.

                  (b)      The Pledgor hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Pledge Agreement brought in the courts referred to in subsection
         (a) above and hereby further irrevocably waives and agrees not to plead
         or claim in any such court that any such action or proceeding brought
         in any such court has been brought in an inconvenient forum.

                  (c)      TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF
         THE PARTIES TO THIS PLEDGE AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
         RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR

                                       13

<PAGE>

         COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS PLEDGE AGREEMENT OR THE
         TRANSACTIONS CONTEMPLATED HEREBY.

         21.      Severability. If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

         22.      Entirety. This Pledge Agreement, the other Credit Documents
and any Lender Hedging Agreement represent the entire agreement of the parties
hereto and thereto, and supersede all prior agreements and understandings, oral
or written, if any, including any commitment letters or correspondence relating
to this Pledge Agreement, the other Credit Documents, any such Lender Hedging
Agreement or the transactions contemplated herein and therein.

         23.      Survival. All representations and warranties of the Pledgor
hereunder shall survive the execution and delivery of this Pledge Agreement, the
other Credit Documents and any Lender Hedging Agreement, the delivery of the
Notes and the making of the Loans, the issuance of the Letters of Credit and the
creation of Bankers' Acceptances under the Credit Agreement.

         24.      Judgment Currency.

                  (a)      If for the purposes of obtaining judgment in any
         court it is necessary to convert all or any part of the Pledgor
         Obligations or any other amount due to the Lenders hereunder or under
         any other Credit Document in respect of the Pledgor's obligations
         hereunder in any currency (the "Original Currency") into another
         currency (the "Other Currency") the Pledgor to the fullest extent that
         it may effectively do so, agrees that the rate of exchange used shall
         be that at which, in accordance with normal banking procedures, the
         Agent could purchase the Original Currency with the Other Currency at
         its principal offices in Charlotte, North Carolina on the Business Day
         on which the Agent is open for the transaction of its banking business
         at such offices immediately preceding the day on which any such
         judgment, or any relevant part thereof, is paid or otherwise satisfied.

                  (b)      The obligation of the Pledgor in respect of any sum
         due in the Original Currency from it to the Agent or the Lenders
         hereunder or under any other Credit Document in respect of the
         Pledgor's obligation hereunder shall, notwithstanding any judgment in
         any Other Currency, be discharged only to the extent that on the
         Business Day following receipt by the Agent of any sum adjudged to be
         so due in such Other Currency or of any other sum in any Other Currency
         the Agent may, in accordance with its normal banking procedures,
         purchase the Original Currency with such Other Currency. If the amount
         of the Original Currency so purchased is less than the sum originally
         due to the Agent and the Lenders in the Original Currency, the Pledgor
         shall, as a separate obligation and notwithstanding any such judgment,
         indemnify the Agent

                                       14

<PAGE>

         against such loss, and if the amount of the Original Currency so
         purchased exceeds the sum originally due to the Lenders, the Agent
         shall remit such excess to the Pledgor.

                  [remainder of page intentionally left blank]

                                       15

<PAGE>

         Each of the parties hereto has caused a counterpart of this Pledge
Agreement to be duly executed and delivered as of the date first above written.

PLEDGOR:                            HB-PS HOLDING COMPANY, INC.,
                                    a Delaware corporation

                                    By:   /s/ J.C. Butler, Jr.
                                       --------------------------------------
                                    Name:  J.C. Butler, Jr.
                                    Title: Treasurer

<PAGE>

Accepted and agreed to as of the date first above written.

                                    WACHOVIA BANK, NATIONAL ASSOCIATION,
                                    as Agent

                                    By:    /s/ Steven J. Haas
                                       --------------------------------------
                                    Name:  Steven J. Haas
                                    Title: Director

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