Document:

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TABLE
OF CONTENTS

 

	
  ARTICLE I SECURITY INTERESTS

  	
  2

  
	
   

  	
  1.1

  	
  Grant of Security
  Interests

  	
  2

  
	
   

  	
  1.2

  	
  Power of Attorney

  	
               
  3

  
	
  ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
  3

  
	
   

  	
  2.1

  	
  Chief Executive
  Office/Inventory and Equipment Locations

  	
  3

  
	
   

  	
  2.2

  	
  State of Incorporation

  	
  3

  
	
   

  	
  2.3

  	
  Trade Names; Change of
  Name

  	
  4

  
	
  ARTICLE III PROVISIONS CONCERNING ALL COLLATERAL

  	
  5

  
	
   

  	
  3.1

  	
  Protection of
  Administrative Agent's Security

  	
  5

  
	
   

  	
  3.2

  	
  Warehouse Receipts
  Non-Negotiable; Third-Party Acknowledgments

  	
  5

  
	
   

  	
  3.3

  	
  Further Actions

  	
  5

  
	
   

  	
  3.4

  	
  Financing Statements

  	
  5

  
	
  ARTICLE IV REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

  	
  5

  
	
   

  	
  4.1

  	
  Remedies; Obtaining the
  Collateral Upon Default

  	
  5

  
	
   

  	
  4.2

  	
  Remedies; Disposition of
  the Collateral

  	
  7

  
	
   

  	
  4.3

  	
  Waiver of Claims

  	
  7

  
	
   

  	
  4.4

  	
  Application of Proceeds

  	
  8

  
	
   

  	
  4.5

  	
  Remedies Cumulative

  	
  10

  
	
   

  	
  4.6

  	
  Discontinuance of
  Proceedings

  	
  11

  
	
  ARTICLE V INDEMNITY

  	
  11

  
	
   

  	
  5.1

  	
  Indemnity

  	
  11

  
	
   

  	
  5.2

  	
  Indemnity Obligations
  Secured by Collateral; Survival

  	
  12

  
	
  ARTICLE VI DEFINITIONS

  	
  12

  
	
  ARTICLE VII MISCELLANEOUS

  	
  16

  
	
   

  	
  7.1

  	
  Notices

  	
  16

  
	
   

  	
  7.2

  	
  Waiver; Amendment

  	
  16

  
	
   

  	
  7.3

  	
  Obligations Absolute

  	
  17

  
	
   

  	
  7.4

  	
  Successors and Assigns

  	
  17

  
	
   

  	
  7.5

  	
  Headings Descriptive

  	
  17

  
	
   

  	
  7.6

  	
  Severability

  	
  17

  
	
   

  	
  7.7

  	
  GOVERNING LAW

  	
  17

  
	
   

  	
  7.8

  	
  Each Guarantor's Duties

  	
  17

  
	
   

  	
  7.9

  	
  Termination; Release

  	
  18

  
	
   

  	
  7.10

  	
  Counterparts

  	
  18

  
	
   

  	
  7.11

  	
  The Administrative Agent

  	
  19

  
	
   

  	
  7.12

  	
  US Bank

  	
  19

  
	
   

  	
  7.13

  	
  Additional Guarantors

  	
  19

  
	
   

  	
  7.14

  	
  Amended and Restated

  	
  19

  
	
  ARTICLE VIII SPECIAL PROVISIONS CONCERNING ACCOUNTS;
  CONTRACT RIGHTS;  INSTRUMENTS

  	
  20

  
	
   

  	
  8.1

  	
  Additional
  Representations and Warranties

  	
  20

  
	
   

  	
  8.2

  	
  Maintenance of Records

  	
  20

  
	
   

  	
  8.3

  	
  Modification of Terms;
  etc

  	
  20

  
	
   

  	
  8.4

  	
  Collection

  	
  21

  
	
   

  	
  8.5

  	
  Instruments

  	
  21

  
	
   

  	
  8.6

  	
  Further Actions

  	
  21

  
	
  ARTICLE IX SPECIAL PROVISIONS CONCERNING MARKS

  	
  21

  
	
   

  	
  9.1

  	
  Additional
  Representations and Warranties

  	
  21

  
	
   

  	
  9.2

  	
  Licenses and Assignments

  	
  22

  
	
   

  	
  9.3

  	
  Infringements

  	
  22

  
	
   

  	
  9.4

  	
  Preservation of Marks

  	
  22

  
	
   

  	
  9.5

  	
  Maintenance of
  Registration

  	
  22

  
	
   

  	
  9.6

  	
  Future Registered Marks

  	
  22

  
	
   

  	
  9.7

  	
  Remedies

  	
  23

  
	
  ARTICLE X SPECIAL PROVISIONS CONCERNING PATENTS AND
  COPYRIGHTS AND TRADE SECRETS

  	
  23

  
	
   

  	
  10.1

  	
  Additional
  Representations and Warranties

  	
  23

  
	
   

  	
  10.2

  	
  Licenses and Assignments

  	
  24

  
	
   

  	
  10.3

  	
  Infringements

  	
  24

  
	
   

  	
  10.4

  	
  Maintenance of Patents

  	
  24

  
	
   

  	
  10.5

  	
  Prosecution of Patent
  Application

  	
  24

  
	
   

  	
  10.6

  	
  Other Patents and
  Copyrights

  	
  24

  
	
   

  	
  10.7

  	
  Remedies

  	
  24

  

 

	
  ANNEX A

  	
  Schedule of Chief Executive Offices

  
	
  ANNEX B

  	
  Schedule of Inventory and
  Equipment Locations

  
	
  ANNEX C

  	
  Schedule of Trade, Fictitious and
  Other Names

  
	
  ANNEX D

  	
  Schedule of Marks

  
	
  ANNEX E

  	
  Schedule of License Agreements and
  Assignments

  
	
  ANNEX F

  	
  Schedule of Patents and Copyrights

  
	
  ANNEX G

  	
  Schedule of Copyrights and
  Applications

  
	
  ANNEX H

  	
  Assignment of Security Interest in
  U.S. Trademarks and Patents

  
	
  ANNEX I

  	
  Assignment of Security Interest in
  U.S. Copyrights

  

 

 

 

      xxx

AMENDED
AND RESTATED

SUBSIDIARY GUARANTOR SECURITY AGREEMENT

between

VISION-EASE LENS, INC.,

VISION-EASE LENS AZUSA, INC.,

DEUTSCHE
BANK TRUST COMPANY AMERICAS 

(formerly
named Bankers Trust Company),

as Administrative Agent

and

U.S. BANK NATIONAL ASSOCIATION

Dated
as of September 27, 2002

 

AMENDED
AND RESTATED SUBSIDIARY GUARANTOR SECURITY AGREEMENT

THIS AMENDED AND RESTATED SUBSIDIARY
GUARANTOR SECURITY AGREEMENT (this "Agreement"), dated as of
September 27, 2002, is among the undersigned (each a "Guarantor"
and, together with any other entity that becomes party hereto pursuant to Section
7.13 hereof, collectively, the "Guarantors"), DEUTSCHE
BANK TRUST COMPANY AMERICAS (formerly named Bankers Trust Company), as
administrative agent (the "Administrative Agent") and U.S.
BANK NATIONAL ASSOCIATION ("US Bank") for the benefit of (i)
the Lenders and the Agent under the Credit Agreement hereinafter referred to
(such Lenders and the Agent are hereinafter called the "Bank Creditors"),
(ii) if one or more Lenders (or any Affiliate thereof) enter into one or more
(A) interest rate protection agreements (including, without limitation,
interest rate swaps, caps, floors, collars and similar agreements),
(B) foreign exchange contracts, currency swap agreements or other similar
agreements or arrangements designed to protect against the fluctuations in
currency values and/or (C) other types of hedging agreements from time to
time (collectively, the "Interest Rate Protection or Other Hedging
Agreements") with, or guaranteed by, Borrower, any such Lender or
Lenders or any Affiliate of such Lender or Lenders (even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any
reason) so long as any such Lender or Affiliate participates in the extension
of such Interest Rate Protection or Other Hedging Agreements and their
subsequent assigns, if any (collectively, the "Other Creditors")
and (iii) US Bank as lender under the US Bank Letter of Credit Facility (as
defined below) (the "LC Creditor" and, together with the Other
Creditors and the Bank Creditors, hereinafter called the "Secured
Creditors").  Except as
otherwise defined herein, terms used herein and defined in the Credit Agreement
(as hereinafter defined) shall be used herein as so defined.

W I T N E S S E T H :

WHEREAS, BMC Industries, Inc. (the "Borrower"),
the financial institutions (the "Lenders") from time to time
party thereto and Bankers Trust Company, as Administrative Agent (together with
any successor agent, the "Agent"), have entered into an
Amended and Restated Credit Agreement, dated as of June 25, 1998, providing for
the making of Loans and the issuance of, and participation in, Letters of
Credit as contemplated therein (as used herein, the term "Credit
Agreement" means the Credit Agreement described above in this paragraph,
as in effect on the date hereof and as amended by that certain Second Amendment
and Restatement Agreement dated as of October 12, 2001 and as amended and
restated by that certain Third Amended and Restated Credit Agreement dated as
of the date hereof, as the same may be amended, modified, extended, renewed,
replaced, restated or supplemented from time to time, and including any
agreement extending the maturity of or restructuring of all or any portion of
the Indebtedness under such agreement or any successor agreements);

WHEREAS, Borrower may at any time and
from time to time enter into, or guarantee, one or more Interest Rate
Protection or Other Hedging Agreements with one or more Other Creditors;

WHEREAS, Borrower, Administrative Agent
and US Bank previously entered into a Security Agreement dated as of October
12, 2001 (the "Original Security Agreement");

WHEREAS, it is a condition precedent to
each of the above-described extensions of credit that Borrower shall have
executed and delivered this Agreement which shall amend and restate the
Original Security Agreement in its entirety; and

WHEREAS, pursuant to the Amended and
Restated Subsidiary Guarantee Agreement, dated October 12, 2001, each Guarantor
has jointly and severally guaranteed to the Secured Creditors the payment when
due of certain obligations of Borrower and each Guarantor under or with respect
to the Loan Documents, the Interest Rate Protection or Other Hedging Agreements
and the US Bank Letter of Credit Facility (provided that at no time shall there
be more than $2,000,000 under the US Bank Letter of Credit Facility secured by
the Security Documents);

WHEREAS, each Guarantor desires to enter
into this Agreement in order to satisfy the condition described in the
preceding paragraph;

NOW, THEREFORE, in consideration of the
extensions of credit to be made to Borrower and other benefits accruing to each
Guarantor, the receipt and sufficiency of which are hereby acknowledged, each
Guarantor hereby makes the following representations and warranties to the
Administrative Agent for the benefit of the Secured Creditors and hereby
covenants and agrees with the Administrative Agent for the benefit of the
Secured Creditors as follows:

ARTICLE I

SECURITY INTERESTS
1.1             
Grant of Security Interests.  (a)  As security for the prompt and complete payment
and performance when due of all of the Obligations, each Guarantor does hereby
pledge and grant to the Administrative Agent for the benefit of the Secured
Creditors, a continuing security interest of first priority (subject to Liens
evidenced by Permitted Filings and other Permitted Liens) in, all of the right,
title and interest of such Guarantor in, to and under all of the following,
whether now existing or hereafter from time to time acquired:  (i) each and every Account, (ii) all
Contracts, together with all Contract Rights arising thereunder, (iii) all
Inventory, (iv) all Equipment, (v) Marks, together with the registrations and
right to all renewals thereof, and the goodwill of the business of such
Guarantor symbolized by the Marks, (vi) all Patents and Copyrights, and all
reissues, renewals or extensions thereof, (vii) all computer programs of such
Guarantor and all intellectual property rights therein and all other
proprietary information of such Guarantor, including, but not limited to, Trade
Secrets, (viii) all other Goods, General Intangibles, Chattel Paper, Documents,
Investment Property and Instruments, and (ix) policies now or at any time
hereafter in the possession or under control of such Guarantor or its respective
bailees and any interest therein, (xii) all vehicles, aircraft, vessels,
barges, railcars, rolling stock and fixtures owned by such Guarantor, together
with accessions thereto and replacement parts therefor, and (xiii) all Proceeds
and products of any and all of the foregoing (all of the above, collectively,
the "Collateral").

(b)  The security interests of
the Administrative Agent under this Agreement extend to all Collateral of the
kind which is the subject of this Agreement which any Guarantor may acquire at
any time during the continuation of this Agreement.

1.2             
Power of Attorney.  
Each Guarantor hereby constitutes and appoints the Administrative Agent
its true and lawful attorney, with full power after the occurrence of and
during the continuance of an Event of Default (in the name of such Guarantor or
otherwise), in the Administrative Agent's reasonable discretion, to take any
action and to execute any instrument required by this Agreement if such
Guarantor has failed to do so after demand by the Administrative Agent.

ARTICLE II

GENERAL REPRESENTATIONS, WARRANTIES AND
COVENANTS

Each Guarantor represents, warrants and
covenants, which representations, warranties and covenants shall survive
execution and delivery of this Agreement, as follows:

2.1             
Chief Executive Office/Inventory and Equipment Locations.  The chief executive office of such Guarantor
is located at the address indicated on Annex A hereto.  All Inventory and Equipment held on the date
hereof by such Guarantor is located at one of the locations shown on Annex B
hereto (other than (i) immaterial portions of Inventory or Equipment or (ii)
Equipment out for repair).    Prior to
January 1, 2002, such Guarantor shall not (x) move its chief executive office
to any of the States of Mississippi, Alabama or Florida, or (y) move any
Inventory or Equipment to any of the States of Mississippi, Alabama or Florida
until (i) it shall have given to the Administrative Agent not less than 30 days'
prior written notice of its intention to do so, (ii) with respect to such move,
it shall have taken all action, reasonably satisfactory to the Administrative
Agent, to maintain the security interest of the Administrative Agent in the
Collateral intended to be granted and perfected under the Uniform Commercial
Code hereby at all times fully perfected and in full force and effect, (iii) at
the reasonable request of the Administrative Agent, it shall have furnished a
customary opinion of counsel reasonably acceptable to the Administrative Agent
to the effect that all financing or continuation statements and amendments or
supplements thereto have been filed in the appropriate filing office or
offices, and all other actions (including, without limitation, the payment of
all filing fees and taxes, if any, payable in connection with such filings)
have been taken, in order to perfect (and maintain the perfection and priority
of) the security interest granted hereby and (iv) the Administrative Agent
shall have received evidence that all other actions (including, without
limitation, the payment of all filing fees and taxes, if any, payable in
connection with such filings) have been taken, in order to perfect (and
maintain the perfection and priority of) the security interest granted hereby.

2.2             
State of Incorporation.  The state of incorporation of each Guarantor is indicated on Annex
A hereto.  No Guarantor will change
its state of incorporation except as in accordance with the last sentence of
this Section 2.2.  No Guarantor
shall establish a new state of incorporation until (i) it shall have given to
the Administrative Agent not less than 30 days' prior written notice of its
intention to do so, clearly describing such new state of incorporation and
providing such other information in connection therewith as the Administrative
Agent may reasonably request, (ii) with respect to such new state of
incorporation, it shall have taken all action, reasonably satisfactory to the
Administrative Agent, to maintain the security interest of the Administrative
Agent in the Collateral intended to be granted and perfected under the Uniform
Commercial Code hereby at all times fully perfected and in full force and
effect, (iii) at the reasonable request of the Administrative Agent, it shall
have furnished a customary opinion of counsel reasonably acceptable to the Administrative
Agent to the effect that all financing or continuation statements and
amendments or supplements thereto have been filed in the appropriate filing
office or offices, and all other actions (including, without limitation, the
payment of all filing fees and taxes, if any, payable in connection with such
filings) have been taken, in order to perfect (and maintain the perfection and
priority of) the security interest granted hereby and (iv) the Administrative
Agent shall have received evidence that all other actions (including, without
limitation, the payment of all filing fees and taxes, if any, payable in
connection with such filings have been taken, in order to perfect (and maintain
the perfection and priority of) the security interest granted hereby.

2.3             
Trade Names; Change of Name.  No Guarantor operates in any jurisdiction under, nor in the
preceding 12 months has operated in any jurisdiction under, any trade names,
fictitious names or other names (including, without limitation, any names of
divisions or operations) except its legal name and such other trade, fictitious
or other names as are listed on Annex C hereto.  The corporation identification number or
other applicable formation identification number shall be set forth across from
the exact legal name of each Guarantor identified in Annex C.  No Guarantor shall change its legal name or
assume or operate in any jurisdiction under any trade, fictitious or other name
in any manner which might make any financing statement or continuation
statement filed in connection therewith seriously misleading except those names
listed on Annex C hereto and new names (including, without limitation,
any names of divisions or operations) established in accordance with the last
sentence of this Section 2.3.  No
Guarantor shall assume or operate in any jurisdiction under any new trade,
fictitious or other name that would make any financing statement or
continuation statement filed in connection therewith, seriously misleading
until (i) it shall have given to the Administrative Agent not less than 30 days'
prior written notice of its intention so to do, clearly describing such new
name and the jurisdictions in which such new name shall be used and providing
such other information in connection therewith as the Administrative Agent may
reasonably request, (ii) with respect to such new name, it shall have taken all
action to maintain the security interest of the Administrative Agent in the
Collateral intended to be granted hereby at all times fully perfected and in
full force and effect, (iii) at the reasonable request of the Administrative
Agent, it shall have furnished a customary opinion of counsel reasonablyacceptable to the Administrative Agent
to the effect that all financing or continuation statements and amendments or
supplements thereto have been filed in the appropriate filing office or
offices, and (iv) the Administrative Agent shall have received evidence that
all other actions (including, without limitation, the payment of all filing
fees and taxes, if any, payable in connection with such filings) have been
taken, in order to perfect (and maintain the perfection and priority of) the
security interest granted hereby.

ARTICLE
III

PROVISIONS CONCERNING ALL COLLATERAL

3.1             
Protection of Administrative Agent's Security.  No Guarantor will do anything to impair the
rights of the Administrative Agent in the Collateral other than dispositions,
the creation of Liens and other encumbrances and other actions permitted
hereunder and under the Credit Agreement and other Loan Documents.  

3.2             
Warehouse Receipts Non-Negotiable; Third-Party
Acknowledgments.  Each Guarantor
agrees that if any warehouse receipt or receipt in the nature of a warehouse
receipt is issued with respect to any of its Inventory, such warehouse receipt
or receipt in the nature thereof shall not be "negotiable" (as such
term is used in Section 7-104 of the Uniform Commercial Code as in
effect in any relevant jurisdiction or under other relevant law).  Where Collateral with a fair market value of
greater than $100,000 is in the possession of a third party, each Guarantor
will promptly notify Administrative Agent of the occurrence of any such fact
and will join with the Administrative Agent in notifying the third party of the
Administrative Agent's security interest and obtaining an acknowledgment from
the third party that it is holding the Collateral for the benefit of the
Administrative Agent.

3.3             
Further Actions.  
Each Guarantor will, at its own expense, make, execute, endorse,
acknowledge, file and/or deliver to the Administrative Agent from time to time
such lists, descriptions and designations of its Collateral, warehouse
receipts, receipts in the nature of warehouse receipts, bills of lading,
documents of title, vouchers, invoices, schedules, confirmatory assignments,
conveyances, financing statements, transfer endorsements, powers of attorney,
certificates, reports and other assurances or instruments and take such further
steps relating to the Collateral and other property or rights covered by the
security interest hereby granted, which the Administrative Agent deems
reasonably appropriate or advisable to perfect, preserve or protect its
security interest in the Collateral.  

3.4             
Financing Statements.  
Each Guarantor agrees to deliver to the Administrative Agent such
financing statements, in form reasonably acceptable to the Administrative
Agent, as the Administrative Agent may from time to time reasonably request or
as are reasonably  necessary (or
desirable in the reasonable opinion of the Administrative Agent) to establish
and maintain a valid, enforceable, first priority perfected security interest
(subject only to Permitted Liens) in the Collateral as provided herein and the
other rights and security contemplated hereby all in accordance with the
Uniform Commercial Code as enacted in any and all relevant jurisdictions or any
other relevant law.  Each Guarantor will
pay any applicable filing fees, recordation taxes and related expenses relating
to its Collateral.  Each Guarantor
hereby authorizes the Administrative Agent to file any such Uniform Commercial
Code financing statements without the signature of such Guarantor where
permitted by law.

ARTICLE
IV

REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

4.1             
Remedies; Obtaining the Collateral Upon Default.  Each Guarantor agrees that, if any Event of
Default shall have occurred and be continuing, then and in every such case,
subject to any mandatory requirements of applicable law then in effect, the
Administrative Agent, in addition to any rights now or hereafter existing under
applicable law, shall have all rights as a secured creditor under the Uniform
Commercial Code in all relevant jurisdictions and may:

(a)            personally,
or by agents or attorneys, immediately take possession of the Collateral or any
part thereof, from such Guarantor or any other Person who then has possession
of any part thereof with or without notice or process of law, and for that
purpose may enter upon such Guarantor's premises where any of the Collateral is
located and remove the same and use in connection with such removal any and all
services, supplies, aids and other facilities of such Guarantor; and

(b)            instruct the
obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting
the Collateral to make any payment required by the terms of such agreement,
instrument or other obligation directly to the Administrative Agent and may
exercise any and all remedies of such Guarantor in respect of such Collateral;
and

(c)            sell,
assign or otherwise liquidate, or direct such Guarantor to sell, assign or
otherwise liquidate, any or all of the Collateral or any part thereof, and take
possession of the proceeds of any such sale or liquidation; and

(d)            take possession of the Collateral or
any part thereof, by directing such Guarantor in writing to deliver the same to
the Administrative Agent at any place or places reasonably designated by the
Administrative Agent, in which event such Guarantor shall at its own expense:

(i)             forthwith cause the same to be moved to the
place or places so designated by the Administrative Agent and there delivered
to the Administrative Agent, and

(ii)             store and keep any Collateral so delivered to
the Administrative Agent at such place or places pending further action by the
Administrative Agent as provided in Section 6.2 hereof, and

(iii)             while the Collateral shall be so stored and kept, provide
such guards and maintenance services as shall be necessary to protect the same
and to preserve and maintain them in good condition; and 

(e)            license
or sublicense (to the extent not in violation of the license), whether on an
exclusive or nonexclusive basis, any Marks (together with associated goodwill),
Patents or Copyrights included in the Collateral for such term and on such
conditions and in such manner as the Administrative Agent shall in its sole
judgment determine (taking into account such provisions as may be necessary to
protect and preserve such Marks, Patents or Copyrights); and

it being understood that each Guarantor's obligation so to
deliver the Collateral is of the essence of this Agreement and that,
accordingly, upon application to a court of equity having jurisdiction, the
Administrative Agent shall be entitled to seek a decree requiring specific
performance by such Guarantor of said obligation.

4.2             
Remedies; Disposition of the Collateral.  If an Event of Default shall have occurred
and be continuing, then any Collateral repossessed by the Administrative Agent
under or pursuant to Section 4.1 hereof and any other Collateral whether
or not so repossessed by the Administrative Agent, may be sold, assigned,
leased or otherwise disposed of under one or more contracts or as an entirety,
and without the necessity of gathering at the place of sale the property to be
sold, and in general in such manner, at such time or times, at such place or
places and on such terms as the Administrative Agent may, in compliance with
any mandatory requirements of applicable law, determine to be commercially
reasonable.  Any of the Collateral may
be so sold, leased or otherwise disposed of, in the condition in which the same
existed when taken by the Administrative Agent or after any overhaul or repair
at the expense of the relevant Guarantor which the Administrative Agent shall
determine to be commercially reasonable.  
Any such disposition which shall be a private sale or other private
proceedings permitted by such requirements shall be made upon not less than 10
days' written notice to the relevant Guarantor specifying the time at which
such disposition is to be made and the intended sale price or other
consideration therefor, and shall be subject, for the 10 days after the giving
of such notice, to the right of such Guarantor or any nominee of such Guarantor
to acquire the Collateral involved at a price or for such other consideration
at least equal to the intended sale price or other consideration so
specified.  Any such disposition which
shall be a public sale permitted by such requirements shall be made upon not
less than 10 days' written notice to the relevant Guarantor specifying the time
and place of such sale and, in the absence of applicable requirements of law,
shall be by public auction (which may, at the Administrative Agent's option, be
subject to reserve), after publication of notice of such auction not less than
10 days prior thereto in two newspapers in general circulation in the City of
New York or in such other locations as may be necessary in order for the sale
to be "commercially reasonable" (as such term is used in Article 9
Part V of the New York Uniform Commercial Code).  To the extent permitted by any such requirement of law, the
Administrative Agent and the Secured Creditors may bid for and become the
purchaser of the Collateral or any item thereof, offered for sale in accordance
with this Section without accountability to such Guarantor.  If, under mandatory requirements of
applicable law, the Administrative Agent shall be required to make disposition
of the Collateral within a period of time which does not permit the giving of
notice to the relevant Guarantor as hereinabove specified, the Administrative
Agent need give such Guarantor only such notice of disposition as shall be
reasonably practicable in view of such mandatory requirements of applicable
law.  Each Guarantor agrees to do or
cause to be done all such other acts and things as may be reasonably necessary
to make such sale or sales of all or any portion of the Collateral valid and
binding and in compliance with any and all applicable laws, regulations,
orders, writs, injunctions, decrees or awards of any and all courts,
arbitrators or governmental instrumentalities, domestic or foreign, having
jurisdiction over any such sale or sales, all at such Guarantor's expense.

4.3             
Waiver of Claims.  
Except as otherwise provided in this Agreement, EACH GUARANTOR HEREBY
WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING
IN CONNECTION WITH THE ADMINISTRATIVE AGENT'S TAKING POSSESSION OR THE
ADMINISTRATIVE AGENT'S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT
LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR
REMEDIES AND ANY SUCH RIGHT WHICH SUCH GUARANTOR WOULD OTHERWISE HAVE UNDER THE
CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, and each
Guarantor hereby further waives, to the extent permitted by law:

(a)            all damages
occasioned by such taking of possession except any damages which are the direct
result of the Administrative Agent's gross negligence or willful misconduct;

(b)            all other
requirements as to the time, place and terms of sale or other requirements with
respect to the enforcement of the Administrative Agent's rights hereunder; and

(c)            all rights
of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any applicable law in order to prevent or delay the
enforcement of this Agreement or the absolute sale of the Collateral or any
portion thereof, and such Guarantor, for itself and all who may claim under it,
insofar as it or they now or hereafter lawfully may, hereby waives the benefit
of all such laws.

Any sale of, or the grant of options to purchase, or any
other realization upon, any Collateral shall operate to divest all right,
title, interest, claim and demand, either at law or in equity, of such Guarantor
therein and thereto, and shall be a perpetual bar both at law and in equity
against such Guarantor and against any and all Persons claiming or attempting
to claim the Collateral so sold, optioned or realized upon, or any part
thereof, from, through and under such Guarantor.

4.4             
Application of Proceeds.  (a)  All moneys collected
by the Administrative Agent (or, to the extent the Pledge Agreement or any
Mortgage to which any Guarantor is a party requires proceeds of Collateral
under such agreement to be applied in accordance with the provisions of this
Agreement, the Pledgee or Mortgagee under such other agreement) upon any sale
or other disposition of the Collateral, together with all other moneys received
by the Administrative Agent hereunder, shall be applied as follows:  

(i)            first,
to the payment of all amounts owing the Administrative Agent of the type
described in clauses (iii) and (iv) of the definition of "Obligations";

(ii)            second,
to the extent proceeds remain after the application pursuant to the preceding
clause (i), an amount equal to the outstanding Primary Obligations shall be
paid to the Secured Creditors as provided in Section 4.4(e) hereof, with
each Secured Creditor receiving an amount equal to such outstanding Primary
Obligations or, if the proceeds are insufficient to pay in full all such
Primary Obligations, its Pro Rata Share of the amount remaining to be
distributed;

(iii)            third,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) and (ii), an amount equal to the outstanding Secondary Obligations
shall be paid to the Secured Creditors as provided in Section 4.4(e),
with each Secured Creditor receiving an amount equal to its outstanding
Secondary Obligations or, if the proceeds are insufficient to pay in full all
such Secondary Obligations, its Pro Rata Share of the amount remaining to be
distributed; and

(iv)            fourth,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iii), inclusive, and following the termination of this
Agreement pursuant to Section 7.9(a) hereof, to such Guarantor or to
whomever may be lawfully entitled to receive such surplus.

(b)         For
purposes of this Agreement (i) "Pro Rata Share" shall mean,
when calculating a Secured Creditor's portion of any distribution or amount,
that amount (expressed as a percentage) equal to a fraction the numerator of
which is the then unpaid amount of such Secured Creditor's Primary Obligations
or Secondary Obligations, as the case may be, and the denominator of which is
the then outstanding amount of all Primary Obligations or Secondary
Obligations, as the case may be, (ii) "Primary Obligations"
shall mean (A) in the case of the Credit Agreement Obligations, all principal
of, and interest on, all Loans, all Unpaid Drawings theretofore made (together
with all interest accrued thereon), and the aggregate Stated Amounts of all
Letters of Credit issued (or deemed issued) under the Credit Agreement, and all
Fees and (B) in the case of the Other Obligations, all amounts due under the
Interest Rate Protection or Other Hedging Agreements (other than indemnities,
fees (including, without limitation, attorneys' fees) and similar obligations
and liabilities) and (iii) "Secondary Obligations" shall mean
all Obligations other than Primary Obligations.

(c)         When
payments to Secured Creditors are based upon their respective Pro Rata Shares,
the amounts received by such Secured Creditors hereunder shall be applied (for
purposes of making determinations under this Section 4.4 only) (i)
first, to their Primary Obligations and (ii) second, to their Secondary
Obligations.  If any payment to any
Secured Creditor of its Pro Rata Share of any distribution would result in
overpayment to such Secured Creditor, such excess amount shall instead be
distributed in respect of the unpaid Primary Obligations or Secondary
Obligations, as the case may be, of the other Secured Creditors, with each
Secured Creditor whose Primary Obligations or Secondary Obligations, as the
case may be, have not been paid in full to receive an amount equal to such
excess amount multiplied by a fraction the numerator of which is the unpaid
Primary Obligations or Secondary Obligations, as the case may be, of such
Secured Creditor and the denominator of which is the unpaid Primary Obligations
or Secondary Obligations, as the case may be, of all Secured Creditors entitled
to such distribution.

(d)         Each
of the Secured Creditors agrees and acknowledges that if the Bank Creditors are
to receive a distribution on account of undrawn amounts with respect to Letters
of Credit issued (or deemed issued) under the Credit Agreement (which shall
only occur after all outstanding Loans and Unpaid Drawings with respect to such
Letters of Credit have been paid in full), such amounts shall be paid to the
Agent under the Credit Agreement and held by it, for the equal and ratable
benefit of the Bank Creditors, as cash security for the repayment of
Obligations owing to the Bank Creditors as such.  If any amounts are held as cash security pursuant to the
immediately preceding sentence, then upon the termination of all outstanding
Letters of Credit, and after the application of all such cash security to the
repayment of all Obligations owing to the Bank Creditors after giving effect to
the termination of all such Letters of Credit, if there remains any excess
cash, such excess cash shall be returned by the Agent to the Administrative
Agent for distribution in accordance with Section 4.4(a) hereof.

(e)         Except
as set forth in Section 4.4(d) hereof, all payments required to be made
hereunder shall be made (i) if to the Bank Creditors, to the Agent under the
Credit Agreement for the account of the Bank Creditors, and (ii) if to the
Other Creditors, to the trustee, paying agent or other similar representative
(each a "Representative") for the Other Creditors or, in the
absence of such a Representative, directly to the Other Creditors.

(f)          For
purposes of applying payments received in accordance with this Section 4.4,
the Administrative Agent shall be entitled to rely upon (i) the Agent under the
Credit Agreement and (ii) the Representative for the Other Creditors or, in the
absence of such a Representative, upon the Other Creditors for a determination
(which the Agent, each Representative for any Secured Creditors and the Secured
Creditors agree (or shall agree) to provide upon request of the Administrative
Agent) of the outstanding Primary Obligations and Secondary Obligations owed to
the Bank Creditors or the Other Creditors, as the case may be.  Unless it has actual knowledge (including by
way of written notice from a Bank Creditor or an Other Creditor) to the
contrary, the Agent and each Representative, in furnishing information pursuant
to the preceding sentence, and the Administrative Agent, in acting hereunder,
shall be entitled to assume that no Secondary Obligations are outstanding.  Unless it has actual knowledge (including by
way of written notice from an Other Creditor) to the contrary, the
Administrative Agent, in acting hereunder, shall be entitled to assume that no
Interest Rate Protection or Other Hedging Agreements are in existence.

(g)         It
is understood and agreed that each Guarantor shall remain jointly and severally
liable to the extent of any deficiency between the amount of the proceeds of the
Collateral hereunder and the aggregate amount of the sums referred to in
clauses (i) through (iii), inclusive, of Section 4.4(a) hereof.

4.5             
Remedies Cumulative.  
Each and every right, power and remedy hereby specifically given to the
Administrative Agent shall be in addition to every other right, power and
remedy specifically given under this Agreement, the Interest Rate Protection or
Other Hedging Agreements, the other Loan Documents or now or hereafter existing
at law or in equity, or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from
time to time or simultaneously and as often and in such order as may be deemed
expedient by the Administrative Agent.  
All such rights, powers and remedies shall be cumulative and the
exercise or the beginning of the exercise of one shall not be deemed a waiver
of the right to exercise any other or others.  
No delay or omission of the Administrative Agent in the exercise of any
such right, power or remedy and no renewal or extension of any of the
Obligations and no course of dealing between any Guarantor and the
Administrative Agent or any holder of any of the Obligations shall impair any
such right, power or remedy or shall be construed to be a waiver of any Default
or Event of Default or an acquiescence therein.  No notice to or demand on any Guarantor in any case shall entitle
it to any other or further notice or demand in similar or other circumstances
or constitute a waiver of any of the rights of the Administrative Agent to any
other or further action in any circumstances without notice or demand.  In the event that the Administrative Agent
shall bring any suit to enforce any of its rights hereunder and shall be
entitled to judgment, then in such suit the Administrative Agent may recover
reasonable expenses, including reasonable attorneys' fees, and the amounts
thereof shall be included in such judgment.

4.6             
Discontinuance of Proceedings.  In case the Administrative Agent shall have
instituted any proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall
have been discontinued or abandoned for any reason or shall have been
determined adversely to the Administrative Agent, then and in every such case
each Guarantor, the Administrative Agent and each holder of any of the
Obligations shall be restored to their former positions and rights hereunder
with respect to the Collateral subject to the security interest created under this
Agreement (except to the extent of any such adverse determination), and all
rights, remedies and powers of the Administrative Agent shall continue (a) as
if no such proceeding had been instituted, in the case of any such proceeding
so discontinued or abandoned, or (b) as if no proceeding had been instituted,
except to the extent of the determination, in the case of any such proceeding
so adversely determined.

ARTICLE V

INDEMNITY

5.1             
Indemnity.  (a)  Each Guarantor
agrees to indemnify and hold harmless the Administrative Agent and each Secured
Creditor and their respective successors, assigns, employees, agents and
servants (individually an "Indemnitee," and collectively the "Indemnitees")
from and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and to
reimburse each Indemnitee for all costs and expenses, including reasonable
attorneys' fees, growing out of or resulting from this Agreement or the
exercise by any Indemnitee of any right or remedy granted to it hereunder or
under any Interest Rate Hedging Agreement or under any other Loan Document (but
excluding any claims, demands, losses, judgments and liabilities or expenses to
the extent incurred by reason of gross negligence or willful misconduct of such
Indemnitee).  If and to the extent that
the obligations of such Guarantor under this Section 5.1(a) are
unenforceable for any reason, such Guarantor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

(b)         Without
limiting the application of Section 5.1(a) hereof, each Guarantor agrees
to pay, or reimburse the Administrative Agent for any and all reasonable fees,
costs and expenses of whatever kind or nature incurred in connection with the
creation, preservation or protection of the Administrative Agent's Liens on,
and security interest in, the Collateral, including, without limitation, all
reasonable fees and taxes in connection with the recording or filing of
instruments and documents in public offices, payment or discharge of any taxes
or Liens upon or in respect of the Collateral, premiums for insurance with
respect to the Collateral and all other reasonable fees, costs and expenses in
connection with protecting, maintaining or preserving the Collateral and the
Administrative Agent's interest therein, whether through judicial proceedings
or otherwise, or in defending or prosecuting any actions, suits or proceedings
arising out of or relating to the Collateral.

(c)         Without
limiting the application of Section 5.1(a) or (b) hereof, each Guarantor
agrees to pay, indemnify and hold each Indemnitee harmless from and against any
loss, costs, damages and expenses which such Indemnitee may suffer, expend or
incur in consequence of or growing out of any misrepresentation by such
Guarantor in this Agreement, any Interest Rate Protection or Other Hedging
Agreement, any other Loan Document or in any writing contemplated by or made or
delivered pursuant to or in connection with this Agreement, any Interest Rate
Protection or Other Hedging Agreement or any other Loan Document.

(d)         If
and to the extent that the obligations of any Guarantor under this Section
5.1 are unenforceable for any reason, each Guarantor hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law.

5.2             
Indemnity Obligations Secured by Collateral; Survival.  Any amounts paid by any Indemnitee as to
which such Indemnitee has the right to reimbursement shall constitute
Obligations secured by the Collateral prior to the release of the Collateral
pursuant to the terms hereof.  The
indemnity obligations of each Guarantor contained in this Article V
shall continue in full force and effect notwithstanding the full payment of all
the Notes issued under the Credit Agreement, the termination of all Interest
Rate Protection or Other Hedging Agreements and the payment of all other
Obligations (but excluding any unasserted contingent and indemnification
obligations which survive the termination hereof) and notwithstanding the
discharge thereof.

ARTICLE
VI

DEFINITIONS

The following terms shall have the
meanings herein specified.  Such
definitions shall be equally applicable to the singular and plural forms of the
terms defined.

"Account" shall have the
meaning provided in the Uniform Commercial Code.

"Administrative Agent"
shall have the meaning provided in the first paragraph of this Agreement.

"Agent" shall have the
meaning provided in the first WHEREAS clause of this Agreement.

"Agreement" shall mean
this Amended and Restated Security Agreement as the same may be modified,
supplemented, extended, renewed, replaced, restated or amended from time to
time in accordance with its terms.

"Guarantor" shall have
the meaning provided in the first paragraph of this Agreement.

"Bank Creditor" shall
have the meaning provided in the first paragraph of this Agreement.

"Borrower" shall have
the meaning provided in the first WHEREAS clause of this Agreement.

"Chattel
Paper" shall have the meaning provided in the Uniform Commercial Code.

"Class" shall have the
meaning provided in Section 7.2 of this Agreement.

"Collateral" shall have
the meaning provided in Section 1.1(a) of this Agreement.

"Contract Rights" shall
mean all rights of a Guarantor (including, without limitation, all rights to
payment) under each Contract.

"Contracts" shall mean
all contracts between a Guarantor and one or more additional parties
(including, without limitation, (i) each partnership agreement to which a
Guarantor is a party and (ii) any Interest Rate Protection or Other Hedging
Agreements), but excluding licenses, agreements and leases, which are
immaterial to the operations of an Guarantor, to the extent that the terms thereof
prohibit the assignment of, or granting of a security interest in, such
licenses, agreements or leases.

"Copyrights" shall mean
any United States copyright which a Guarantor now owns or hereafter acquires,
including any registrations of any Copyrights in the United States Copyright
Office, as well as any application for a United States copyright registration
now or hereafter made with the United States Copyright Office by a Guarantor.

"Credit
Agreement" shall have the meaning provided in the first WHEREAS clause
of this Agreement.

"Credit Agreement Obligations"
shall have the meaning provided in the definition of "Obligations" in
this Article VI.

"Default" shall mean any
event which, with notice or lapse of time, or both, would constitute an Event
of Default.

"Deposit Accounts" shall
have the meaning provided in the Uniform Commercial Code.

"Documents" shall have
the meaning provided in the Uniform Commercial Code.

"Equipment" shall mean
any "equipment," as such term is defined in the Uniform Commercial Code,
now or hereafter owned by a Guarantor.

"Event of Default" shall
mean any Event of Default under, and as defined in, the Credit Agreement and
shall in any event, without limitation, include any payment default on any of
the Obligations after the expiration of any applicable grace period.

"General Intangibles"
shall have the meaning provided in the Uniform Commercial Code.

"Goods" shall have the
meaning provided in the Uniform Commercial Code.

"Indemnitee"
shall have the meaning provided in Section 5.1 of this Agreement.

"Instrument" shall have
the meaning provided in Article 9 of the Uniform Commercial Code.

"Interest Rate Protection or
Other Hedging Agreements" shall have the meaning provided in the first
paragraph of this Agreement.

"Inventory" shall mean
all "inventory" as such term is defined in the Uniform Commercial
Code, now or hereafter owned by a Guarantor.

"Investment Property"
shall have the meaning ascribed thereto in Article 9 of the UCC.

"LC Creditor" shall have
the meaning provided in the first WHEREAS clause of this Agreement.

"Lenders" shall have the
meaning provided in the first WHEREAS clause of this Agreement.

"Lenders" shall have the
meaning provided in the first WHEREAS clause of this Agreement.

"Letter-of-Credit Rights"
shall have the meaning provided in the Uniform Commercial Code.

"Marks" shall mean all
right, title and interest in and to any trademarks and service marks and trade
names now held or hereafter acquired by a Guarantor, which are registered in
the United States Patent and Trademark Office or in any similar office or
agency of the United States or any state thereof or any political subdivision
thereof and any application for such trademarks and service marks, as well as
any unregistered marks used by a Guarantor in the United States and trade dress
including logos, designs, trade names, company names, business names,
fictitious business names and other business identifiers in connection with
which any of these registered or unregistered marks are used in the United
States, but excluding all intent-to-use trademark applications for which an
application to allege use under 15 U.S.C. §1051(c) and/or for which a statement
of use under 15 U.S.C. §1051(d) has not been filed, which applications are
identified in Annex D (III).

"Obligations"
shall mean (i) the full and prompt payment when due (whether at the stated
maturity, by acceleration or otherwise) of all obligations (including, without
limitation, all "Obligations" as such term is defined in the Credit
Agreement and all obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities of
Borrower and each Guarantor now existing or hereafter incurred under, arising
out of or in connection with the Credit Agreement or any other Loan Document to
which Borrower or any Guarantor is a Party and the due performance and
compliance by Borrower and each Guarantor with all of the terms, conditions and
agreements contained in each such Loan Document (all such obligations and liabilities
being herein collectively called the "Credit Agreement Obligations");
(ii) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but
for the automatic stay under Section 362(a) of the Bankruptcy Code,
would become due) and liabilities of Borrower now existing or hereafter
incurred under, arising out of or in connection with (x) any Interest Rate
Protection or Other Hedging Agreement, whether such Interest Rate Protection or
Other Hedging Agreement is now in existence or hereafter arising and the due
performance and compliance by Borrower with all of the terms, conditions and
agreements contained therein and (y) the US Bank Letter of Credit Facility up
to a maximum amount of $2,000,000 (provided that at no time shall there be more
than $2,000,000 under the US Bank Letter of Credit Facility secured by the
Security Documents) (all such obligations and liabilities described in this
clause (ii) being herein collectively called the "Other Obligations");
(iii) any and all sums advanced by the Administrative Agent in order to
preserve the Collateral or preserve its security interest in the Collateral;
(iv) in the event of any proceeding for the collection or enforcement of
any indebtedness, obligations, or liabilities of Borrower or any Guarantor
referred to in clauses (i) and (ii), after an Event of Default shall have
occurred and be continuing, the reasonable expenses of taking, holding,
preparing for sale or lease, selling or otherwise disposing of or realizing on
the Collateral, or of any exercise by the Administrative Agent of its rights
hereunder, together with reasonable attorneys' fees and court costs; and (v)
all amounts paid by any Indemnitee as to which such Indemnitee has the right to
reimbursement under Section 6.1 of this Agreement.  It is acknowledged and agreed that the "Obligations"
shall include extensions of credit of the types described above, whether
outstanding on the date of this Agreement or extended from time to time after
the date of this Agreement.

"Other Creditors" shall
have the meaning provided in the first paragraph of this Agreement.

"Other Obligations"
shall have the meaning provided in the definition of "Obligations" in
this Article VI.

"Patents" shall mean any
United States patent now or hereafter owned by a Guarantor, as well as any
application for a United States patent now or hereafter owned by such
Guarantor, but excluding patents and applications for patents that such
Guarantor is prohibited by written contract from assigning or granting a
security interest in.

"Permitted
Filings" shall mean any filing or similar item that was a matter of
public record on October 12, 2001, with respect to Collateral secured by the
Original Security Agreement, or on the date hereof, with respect to any other
Collateral.  

"Primary Obligations"
shall have the meaning provided in Section 4.4(b) of this Agreement.

"Pro Rata Share" shall
have the meaning provided in Section 4.4(b) of this Agreement.

"Proceeds" shall have
the meaning provided in the Uniform Commercial Code.

"Representative"
shall have the meaning provided in Section 5.4(e) of this Agreement.

"Required Secured Creditors"
shall mean (i) the Required Lenders (or, to the extent required by Article
XI of the Credit Agreement, all of the Lenders) under the Credit Agreement
so long as any Credit Agreement Obligations remain outstanding and (ii) in
any situation not covered by preceding clause (i), the holders of a majority of
the outstanding principal amount of the Other Obligations.

"Requisite Creditors"
shall have the meaning provided in Section 7.2 of this Agreement.

"Secondary Obligations"
shall have the meaning provided in Section 4.4(b) of this Agreement.

"Secured Creditors"
shall have the meaning provided in the first paragraph of this Agreement.

"Termination
Date" shall have the meaning provided in Section 7.9 of this
Agreement.

"Trade Secrets" shall
mean any know-how, technology, product formulations, procedures and product and
manufacturing specifications or standards now or hereafter utilized by a
Guarantor in such Guarantor's business.

"Uniform Commercial Code"
or "UCC" shall mean the Uniform Commercial Code as now or
hereafter in effect from time to time in the State of New York or any other
applicable jurisdiction.

"US Bank Letter of Credit
Facility" means that certain revolving letter of credit facility in
effect on the date hereof pursuant to that certain Continuing Reimbursement
Agreement for Commercial Letters of Credit, dated as of July 14, 2000 by and
among the LC Creditor and the Borrower providing for commercial letters of
credit; provided, however, that at no time shall there be more
than a maximum amount of $2,000,000 under the US Bank Letter of Credit Facility
secured by the Security Documents. 

ARTICLE
VII

MISCELLANEOUS

7.1             
Notices.  All
such notices and communications hereunder shall be sent or delivered in
accordance with the terms of the Credit Agreement.

7.2             
Waiver; Amendment.  
None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by each Guarantor and the Administrative Agent (with the written consent
of the Required Lenders, or to the extent required by Section 11.1 of
the Credit Agreement, all the Lenders); provided, however, that
any change, waiver, modification or variance affecting the rights and benefits
of a single Class of Secured Creditors (and not all Secured Creditors in a like
or similar manner) shall require the written consent of the Requisite Creditors
of such affected Class.  For the purpose
of this Agreement, the term "Class" shall mean each class of
Secured Creditors, i.e., whether (i) the Bank Creditors as holders
of the Credit Agreement Obligations or (ii) the Other Creditors as the holders
of the Other Obligations; and the term "Requisite Creditors"
of any Class shall mean each of (A) with respect to the Credit Agreement
Obligations, the Required Lenders and (B) with respect to the Other
Obligations, the holders of at least a majority of all obligations outstanding
from time to time under the Interest Rate Protection Agreements or Other
Hedging Agreements.

7.3             
Obligations Absolute.  
The obligations of each Guarantor hereunder shall remain in full force
and effect without regard to, and shall not be impaired by, (a) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation
or the like of such Guarantor; (b) any exercise or non-exercise, or any waiver
of, any right, remedy, power or privilege under or in respect of this
Agreement, any other Loan Document or any Interest Rate Protection or Other
Hedging Agreement except as specifically set forth in a waiver granted pursuant
to Section 7.2 hereof; or (c) any amendment to or modification of any
Loan Document or any Interest Rate Protection or Other Hedging Agreement or any
security for any of the Obligations; whether or not such Guarantor shall have
notice or knowledge of any of the foregoing.

7.4             
Successors and Assigns.  This Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of the
Administrative Agent, each Secured Creditor and each Guarantor and their
respective successors and assigns, provided that no Guarantor may transfer or assign
any or all of its rights or obligations hereunder without the written consent
of the Required Secured Creditors.  All
agreements, statements, representations and warranties made by each Guarantor
herein or in any certificate or other instrument delivered by such Guarantor or
on its behalf under this Agreement shall be considered to have been relied upon
by the Secured Creditors and shall survive the execution and delivery of this
Agreement, the other Loan Documents and the Interest Rate Protection or Other
Hedging Agreements regardless of any investigation made by the Secured
Creditors or on their behalf.

7.5             
Headings Descriptive.  
The headings of the several sections of this Agreement are inserted for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Agreement.

7.6             
Severability.  
Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

7.7             
GOVERNING LAW.  
THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF
THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS AND DECISIONS OF SAID STATE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

7.8             
Each Guarantor's Duties.  It is expressly agreed, anything herein contained to the contrary
notwithstanding, that each Guarantor shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the
Administrative Agent shall not have any obligations or liabilities with respect
to any Collateral by reason of or arising out of this Agreement, nor shall the
Administrative Agent be required or obligated in any manner to perform or
fulfill any of the obligations of such Guarantor under or with respect to any
Collateral.

7.9             
Termination; Release.  
(a)  After the Termination Date, this Agreement shall
automatically terminate (provided that all indemnities set forth herein
including, without limitation, in Section 5.1 hereof shall survive such
termination) and the Administrative Agent, at the request and expense of the
Guarantors, will execute and deliver to each Guarantor a proper instrument or
instruments (including Uniform Commercial Code termination statements on form
UCC-3) acknowledging the satisfaction and termination of this Agreement, and
will duly assign, transfer and deliver to each Guarantor (without recourse and
without any representation or warranty) such of the Collateral of such
Guarantor as has not theretofore been sold or otherwise applied or released
pursuant to this Agreement.  As used in
this Agreement, "Termination Date" shall mean the date upon
which all Interest Rate Protection or Other Hedging Agreements have been
terminated, no Note under the Credit Agreement is outstanding (and all Loans
have been repaid in full), all Letters of Credit have been terminated and all
Obligations (as defined in the Credit Agreement) then outstanding (other than
any indemnities described in Section 5.1 hereof and in Section 11.4
of the Credit Agreement with respect to which no claim has been asserted) have
been paid in full in cash.

(b)         In
the event that any part of the Collateral is sold or otherwise disposed of in
connection with a sale or other disposition permitted by Section 8.7 of
the Credit Agreement or is otherwise released at the direction of the Required
Lenders (or all the Lenders if required by Section 11.1 of the Credit
Agreement) and the proceeds of such sale or sales or from such release are
applied in accordance with the provisions of Section 4.4 of the Credit
Agreement, to the extent required to be so applied, such Collateral will be
sold free and clear of the Liens created by this Agreement and the
Administrative Agent, at the request and expense of the Guarantors, will duly
assign, transfer and deliver to the relevant Guarantor (without recourse and
without any representation or warranty) such of the Collateral as is then being
(or has been) so sold or released and has not theretofore been released
pursuant to this Agreement.  The Administrative
Agent shall also be entitled to and is hereby authorized and directed to duly
assign, transfer and deliver such of the Collateral as provided in Section
11.20(b) of the Credit Agreement.

(c)         At
any time that an Guarantor desires that the Administrative Agent take any
action to acknowledge or give effect to any release of Collateral pursuant to
the foregoing Section 7.9(a) or (b), as the case may be, it shall
deliver to the Administrative Agent a certificate signed by an Authorized
Officer stating that the release of the respective Collateral is permitted
pursuant to Section 7.9(a) or (b), as the case may be.

(d)         The
Administrative Agent shall have no liability whatsoever to any Secured Creditor
as a result of any release of Collateral by it in accordance with this Section
7.9.

7.10         
Counterparts.  This Agreement may be executed
in any number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument.  A set of counterparts
executed by all the parties hereto shall be lodged with each Guarantor and the
Administrative Agent.

7.11         
The Administrative Agent.  The Administrative Agent will hold in accordance with this
Agreement all items of the Collateral at any time received under this
Agreement.  It is expressly understood
and agreed by the parties hereto and each Secured Creditor, by accepting the
benefits of this Agreement, acknowledges and agrees that the obligations of the
Administrative Agent as holder of the Collateral and interests therein and with
respect to the disposition thereof, and otherwise under this Agreement, are
only those expressly set forth in this Agreement and as provided in the Uniform
Commercial Code in the State of New York.  
The Administrative Agent shall act hereunder on the terms and conditions
set forth in Article IX and Section 11.18 of the Credit
Agreement.

7.12         
US Bank.  (a) US
Bank as LC Creditor under the US Bank Letter of Credit Facility and in its
capacity as a Secured Party hereunder hereby irrevocably designates and
appoints Bankers Trust Company as Administrative Agent under this Agreement and
irrevocably authorizes Bankers Trust Company to act as its Administrative Agent
and to take such action on its behalf under the provisions of this Agreement
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent under this Agreement and the Loan Documents,
together with such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the
contrary in this Agreement, the Administrative Agent shall not have any duties
or responsibilities with respect to US Bank in its capacity LC Creditor under
the US Bank Letter of Credit Facility or any fiduciary relationship with US
Bank, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

            (b)            For avoidance of doubt, US Bank
expressly acknowledges that all rights and remedies of the Administrative Agent
hereunder shall be exercised by the Administrative Agent in accordance with the
applicable provisions of the Credit Agreement, and no consent of, or notice to,
US Bank shall be required with respect thereto and US Bank shall not undertake
any separate action with respect to the Collateral.  The sole right of US Bank hereunder shall be to receive its
proportionate share of any proceeds received by the Administrative Agent
hereunder in accordance with the terms hereof.  

7.13         
Additional Guarantors.  
It is understood and agreed that any Subsidiary of Borrower that is
required to become a party to this Agreement after the Restatement Date
pursuant to Section 7.12 of the Credit Agreement shall automatically
become a party hereunder upon the execution and delivery by such Subsidiary of
an instrument in the form of Exhibit A hereto and the delivery of same
to the Administrative Agent, with the same force and effect as if originally
named as a party herein.  The execution
and delivery of any instrument adding an additional party to this Agreement
shall not require the consent of any party hereunder or of any Secured
Creditor.  The rights and obligations of
each party hereunder shall remain in full force and effect notwithstanding the
addition of any new party hereto. 

7.14         
Amended and Restated.  
This Agreement amends and restates the Subsidiary Guarantor Security
Agreement, dated October 12, 2001, among Deutsche Bank Trust Company Americas,
U.S. Bank National Association, Vision-Ease Lens, Inc. and Vision-Ease Lens
Azusa, Inc. (the "Original Subsidiary Guarantor Security Agreement")
and is not in satisfaction of payment of any obligations thereunder and does
not constitute a novation of the Original Subsidiary Guarantor Security
Agreement but rather shall relate back to the time of the Original Subsidiary
Guarantor Security Agreement for the purposes of filing and perfection.

ARTICLE VIII 

SPECIAL
PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS

8.1             
Additional Representations and Warranties.  As of the time when each of its Accounts
arises, each Guarantor shall be deemed to have represented and warranted that
such Account, and all records, papers and documents of each Guarantor relating
thereto (if any) are genuine and in all material respects what they purport to
be, and that all papers and documents of Guarantor (if any) relating thereto to
the best knowledge of each Guarantor (i) will represent the genuine,
legal, valid and binding obligation of the account debtor evidencing
indebtedness unpaid and owed by the respective account debtor arising out of
the performance of labor or services or the sale or lease and delivery of the
merchandise listed therein, or both, (ii) will be the only original
writings of Guarantor and embodying such obligation of the account debtor named
therein (other than copies created for general accounting purposes), (iii) will
evidence true and valid obligations, enforceable in accordance with their
respective terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium and general principles of equityand (iv) will be in material compliance and will conform in all
material respects with all applicable federal, state and local laws and
applicable laws of any relevant foreign jurisdiction.

8.2             
Maintenance of Records.  Each Guarantor will keep and maintain at its own cost and expense
accurate and complete records of its Accounts and Contracts, including, but not
limited to, records of all payments received, all credits granted thereon, all
merchandise returned and all other dealings therewith, and such Guarantor will
make the same available on such Guarantor's premises to the Administrative
Agent for inspection, at such Guarantor's own cost and expense (not to exceed
reasonable costs and expenses), at any and all reasonable times upon prior
notice to an Responsible Officer of such Guarantor.  At the request of the Administrative Agent and upon the
occurrence and during the continuance of an Event of Default, each Guarantor
shall, at its own cost and expense, deliver all tangible evidence of its
Accounts and Contract Rights (including, without limitation, all documents
evidencing the Accounts and all Contracts) and such books and records to the
Administrative Agent or to its representatives (copies of which evidence and
books and records may be retained by such Guarantor).  Upon the occurrence and during the continuance of an Event of
Default, if the Administrative Agent so directs, each Guarantor shall legend,
in form and manner reasonably satisfactory to the Administrative Agent, the
Accounts and the Contracts, as well as books, records and documents of such
Guarantor evidencing or pertaining to such Accounts and Contracts with an
appropriate reference to the fact that the Administrative Agent and that the
Administrative Agent has a security interest therein.

8.3             
Modification of Terms; etc.  No Guarantor shall rescind or cancel any indebtedness evidenced
by any Account or under any Contract, or modify any term relating to such
indebtedness or make any adjustment with respect thereto, or extend or renew
the same, or compromise or settle any material dispute, claim, suit or legal
proceeding relating thereto, or sell any Account or Contract, or interest
therein, without the prior written consent of the Administrative Agent (not to
be unreasonably withheld or delayed), except as permitted by Section 8.4
hereof or the Credit Agreement.  Each
Guarantor will duly fulfill in all material respects all obligations on its part
to be fulfilled under or in connection with the Accounts and Contracts and will
do nothing to impair the rights of the Administrative Agent in the Accounts or
Contracts.

8.4             
Collection.  
Each Guarantor shall endeavor to cause to be collected from the account
debtor named in each of its Accounts or obligor under any Contract, as and when
due (including, without limitation, amounts which are delinquent, such amounts
to be collected in accordance with sound business judgement) any and all
amounts owing under or on account of such Account or Contract, and apply
forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Account or under such Contract, except that, unless
an Event of Default has occurred and is continuing, each Guarantor may allow in
the ordinary course of business as adjustments to amounts owing under its
Accounts and Contracts (i) an extension or renewal of the time or times of
payment, or settlement for less than the total unpaid balance, which such Guarantor
finds appropriate in accordance with sound business judgment and (ii) a
refund or credit due as a result of returned or damaged merchandise or
improperly performed services or for other reasons which such Guarantor finds
appropriate in accordance with sound business judgment.  The reasonable costs and expenses
(including, without limitation, reasonable attorneys' fees) of collection,
whether incurred by a Guarantor or the Administrative Agent, shall be borne by
such Guarantor. 

8.5             
Instruments.  If
any Guarantor owns or acquires any Instrument constituting Collateral, such
Guarantor will within 15 days notify the Administrative Agent thereof, and upon
request by the Administrative Agent will promptly deliver such Instrument to
the Administrative Agent appropriately endorsed to the order of the
Administrative Agent as further security hereunder.

8.6             
Further Actions.  
Each Guarantor will, at its own expense, make, execute, endorse,
acknowledge, file and/or deliver to the Administrative Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports
and other assurances or instruments and take such further steps relating to its
Accounts, Contracts, Instruments and other property or rights covered by the
security interest hereby granted, as the Administrative Agent may reasonably
require.

ARTICLE IX 

SPECIAL
PROVISIONS CONCERNING MARKS

9.1             
Additional Representations and Warranties.  Each Guarantor represents and warrants that
it is the true and lawful exclusive owner of or otherwise has the right to use
the Marks listed in Annex D(I) and D(II) hereto for such
Guarantor and that said listed Marks include all the United States federal
trademark registrations or applications registered in the United States Patent
and Trademark Office.  Each Guarantor
represents and warrants that it owns or is licensed to use or is not prohibited
from using all Marks that it uses.  Each
Guarantor further warrants that, except as set forth in Annex D(IV), it
is aware of no third party claim that any aspect of such Guarantor's present or
contemplated business operations infringes or will infringe any Mark.  Each Guarantor represents and warrants that
it is the owner of record of or otherwise has the right to use all United
States registrations and applications listed in Annex D(I) and D(II)
hereto and that said registrations are valid, subsisting, have not been
canceled and that, except as set forth in Annex D(IV), No Guarantor is
aware of any third-party claim that any of said registrations is invalid or
unenforceable.  Each Guarantor hereby
grants to the Administrative Agent an absolute power of attorney to sign, upon
the occurrence and during the continuance of an Event of Default, any document
which may be required by the United States Patent and Trademark Office in order
to effect an absolute assignment of all right, title and interest in each Mark
and associated goodwill, and record the same.

9.2             
Licenses and Assignments.  Other than the license agreements listed on Annex E hereto
and any extensions or renewals thereof, each Guarantor hereby agrees not to
divest itself of any right under any Mark absent prior written approval of the
Administrative Agent (which shall not be unreasonably withheld or delayed),
except that such Guarantor may license any of its rights in such a Mark in the
ordinary course of business provided that such license does not
materially interfere with the business of such Guarantor.

9.3             
Infringements.  
Each Guarantor agrees, promptly upon learning thereof, to notify the
Administrative Agent in writing of the name and address of, and to furnish such
pertinent information that may be available with respect to (except for any
privileged communication), any party who may be infringing or otherwise
violating any of such Guarantor's rights in and to any Mark to the extent that
such Guarantor reasonably believes that such infringement or violation is
material to its business, or with respect to any party claiming that Borrower's
use of any Mark violates any property right of that party.  Each Guarantor further agrees, if consistent
with good business practice and unless otherwise agreed by the Administrative
Agent, to diligently prosecute any Person infringing any Mark to the extent
that such Guarantor reasonably believes that such infringement is material to
its business.

9.4             
Preservation of Marks.  
Each Guarantor agrees to use its Marks in interstate commerce during the
time in which this Agreement is in effect, sufficiently to preserve such Marks
as trademarks or service marks registered under the laws of the United States;
provided that, to the extent permitted by the Credit Agreement, no Guarantor
shall be obligated to preserve any Mark in the event such Guarantor determines,
in its reasonable business judgment, that the preservation of such Mark is no
longer desirable in the conduct of its business.

9.5             
Maintenance of Registration.  Each Guarantor shall, at its own expense, diligently process all
documents required by the Trademark Act of 1946, 15 U.S.C. §§ 1051 et
seq. to maintain trademark registrations, including but not limited to
affidavits of use and applications for renewals of registration in the United
States Patent and Trademark Office for all of its Marks pursuant to 15 U.S.C.
§§ 1058(a), 1059 and 1065, and shall pay all fees and disbursements in
connection therewith and shall not abandon any such filing of affidavit of use
or any such application of renewal prior to the exhaustion of all reasonable
administrative and judicial remedies without prior written consent of the
Administrative Agent (which consent will not be unreasonably withheld or
delayed) except if, in its reasonable business judgment, such action is no
longer desirable in the conduct of its business.

9.6             
Future Registered Marks.  If any Mark registration issues hereafter to a Guarantor as a
result of any application now or hereafter pending before the United States
Patent and Trademark Office, within 60 days of receipt of such certificate,
such Guarantor shall deliver to the Administrative Agent a copy of such
certificate, and a grant of security in such Mark to the Administrative Agent,
confirming the grant thereof hereunder, the form of such confirmatory grant to
be substantially the same as the form hereof.

9.7             
Remedies.  If an
Event of Default shall occur and be continuing, the Administrative Agent may,
by written notice to the Guarantors, take any or all of the following
actions:  (i) declare the entire right,
title and interest of each Guarantor in and to each of such Guarantor's Marks
together with the goodwill of the business associated therewith, together with
all trademark rights and rights of protection to the same, vested in the
Administrative Agent for the benefit of the Secured Creditors, in which event
such rights, title and interest shall immediately vest, in the Administrative
Agent for the benefit of the Secured Creditors, in which case the
Administrative Agent shall be entitled to exercise the power of attorney
referred to in Section 9.1 to execute, cause to be acknowledged and
notarized and record said absolute assignment with the applicable agency; (ii)
take and use or sell the Marks together with the goodwill of such Guarantor's
business symbolized by the Marks and the right to carry on the business and use
the assets of such Guarantor in connection with which the Marks have been used;
and (iii) direct such Guarantor to refrain, in which event such Guarantor
shall refrain, from using the Marks in any manner whatsoever, directly or
indirectly, and, if requested by the Administrative Agent, change such
Guarantor's corporate name to eliminate therefrom any use of any Mark and
execute such other and further documents that the Administrative Agent may
request to further confirm this and to transfer ownership of the Marks and any
registrations and any trademark application in the United States Patent and
Trademark Office or any equivalent government agency or office in any foreign
jurisdiction to the Administrative Agent.

ARTICLE X

SPECIAL
PROVISIONS CONCERNING PATENTS AND COPYRIGHTS AND TRADE SECRETS

10.1         
Additional Representations and Warranties.  Each Guarantor represents and warrants that
it is the true and lawful exclusive owner of or otherwise has the right to use
(i) all material Trade Secrets necessary to operate the business of such
Guarantor, (ii) the Patents listed in Annex F hereto for such Guarantor
and (iii) the Copyrights listed in Annex G hereto for such Guarantor,
that to the best of its knowledge said Patents include all the United States
patents and applications for United States patents that such Guarantor now owns
or otherwise has the right to use (except for any patent that such Guarantor
does not have the right to assign or grant a security interest in) and that
said Copyrights constitute all the United States copyrights registered with the
United States Copyright Office and applications for United States copyrights
that such Guarantor now owns or otherwise has the right to use and that in each
case are necessary in the conduct of the business of such Guarantor.  Each Guarantor represents and warrants that
it owns or is licensed to practice under all Patents and Copyrights that it now
uses or practices under.  Each Guarantor
further warrants that, except as set forth in Schedule F(I), it is aware
of no third party claim that any aspect of such Guarantor's present or
contemplated business operations infringes or will infringe any patent or any
copyright or which such Guarantor has misappropriated any Trade Secrets or
proprietary information.  Each Guarantor
hereby grants to the Administrative Agent an absolute power of attorney to
sign, upon the occurrence and during the continuance of any Event of Default,
any document which may be required by the United States Patent and Trademark
Office or the United States Copyright Office in order to effect an absolute
assignment of all right, title and interest in each Patent and Copyright, and
record the same.

10.2         
Licenses and Assignments.  Other than the license agreements listed on Annex E hereto
and any extensions or renewals thereof, Each Guarantor hereby agrees not to
divest itself of any right under any Patent or Copyright absent prior written
approval of the Administrative Agent except that such Guarantor may license any
of its rights to such Patent or Copyright in the ordinary course of business
provided that such license does not materially interfere with the business of
such Guarantor or any Subsidiary consistent with past practices or as is
consistent with its existing licensing strategy.

10.3         
Infringements.  
Each Guarantor agrees, promptly upon learning thereof, to furnish the
Administrative Agent in writing with all pertinent information (except for any
privileged information)available to such Guarantor with respect to any
infringement or other violation of such Guarantor's rights in and to any Patent
or Copyright to the extent that such Guarantor reasonably believes that such
infringement or violation is material to its business, or with respect to any
claim that practice of any Patent or Copyright violates any property right of a
third party, or with respect to any misappropriation of any Trade Secret by
such Guarantor or any claim that such Guarantor's practice of any Trade Secret
violates any property right of a third party.  
Each Guarantor further agrees, consistent with good business practice
and absent direction of the Administrative Agent to the contrary, diligently to
prosecute any Person infringing any Patent or Copyright or any Person
misappropriating any of such Guarantor's Trade Secrets to the extent that such
Guarantor reasonably believes that such infringement or misappropriation is
material to its business.

10.4         
Maintenance of Patents.  At its own expense, each Guarantor shall make timely payment of
all post-issuance fees required pursuant to 35 U.S.C. § 41 to maintain in
force rights under each Patent except if, in its reasonable business judgment,
such maintenance of such Patent is no longer desirable in the conduct of its
business.

10.5         
Prosecution of Patent Application.  At its own expense, each Guarantor shall
diligently prosecute all applications for Patents listed in Annex F
hereto for such Guarantor and shall not abandon any such application prior to
exhaustion of all reasonable administrative and judicial remedies, absent
written consent of the Administrative Agent; provided, however,
that to the extent permitted by the Credit Agreement, no Guarantor shall be
obligated to prosecute any application in the event such Guarantor determines,
in its reasonable business judgment, that the prosecuting of such application
is no longer necessary or desirable in the conduct of its business.

10.6         
Other Patents and Copyrights.  Within 60 days of its acquisition of a Patent or Copyright, or of
its filing of an application for a Patent or Copyright, each Guarantor shall deliver
to the Administrative Agent a copy of said Patent or Copyright or such
application, as the case may be, with a grant of security as to such Patent or
Copyright, as the case may be, confirming the grant thereof hereunder, the form
of such confirmatory grant to be substantially the same as the form hereof.

10.7         
Remedies.  If an
Event of Default shall occur and be continuing, the Administrative Agent may by
written notice to Guarantors, take any or all of the following actions:  (i) declare the entire right, title, and
interest of Guarantors in each of the Patents and Copyrights vested in the
Administrative Agent for the benefit of the Secured Creditors, in which event
such right, title, and interest shall immediately vest in the Administrative
Agent for the benefit of the Secured Creditors, in which case the
Administrative Agent shall be entitled to exercise the power of attorney
referred to in Section 10.1 hereof to execute, cause to be acknowledged
and notarized and record said absolute assignment with the applicable agency;
(ii) take and practice or sell the Patents and Copyrights; and (iii) direct
Guarantors to refrain, in which event each Guarantor shall refrain, from
practicing the Patents and using the Copyrights directly or indirectly, and
each Guarantor shall execute such other and further documents as the
Administrative Agent may request further to confirm this and to transfer
ownership of the Patents and Copyrights to the Administrative Agent for the
benefit of the Secured Creditors.

 

[Signature Page Follows]

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

VISION-EASE
LENS, INC.,

as
Guarantor

                        By:  /s/ Bradley D. Carlson

                        Name:  Bradley D. Carlson

                        Title:  Treasurer

VISION-EASE
LENS AZUSA, INC.,

as
Guarantor

                        By:  /s/ Bradley D. Carlson

                        Name:  Bradley D. Carlson

                        Title:  Treasurer

DEUTSCHE BANK TRUST COMPANY AMERICAS,

(formerly named Bankers Trust Company),

 as Administrative Agent

                        By:  /s/ Mary Jo Jolly

                        Name:  Mary Jo Jolly

                        Title:  Assistant Vice President

 

U.S.
BANK NATIONAL ASSOCIATION

                        By:  /s/ Nicholas G. Myers

                        Name:  Nicholas G. Myers

                        Title:  Assistant Vice PresidentDocument

FIRST AMENDMENT TO MORTGAGE

This FIRST AMENDMENT TO MORTGAGE
(this "Amendment"), effective as of September 27, 2002, is made by
and between VISION-EASE LENS, INC.,
a Minnesota corporation (the "Mortgagor"), having an office at
One Meridian Crossings, Suite 850, Minneapolis, Minnesota 55423, and DEUTSCHE BANK TRUST COMPANY AMERICAS
(formerly named Bankers Trust Company), as administrative agent for the Lenders
(in such capacity, hereinafter, the "Mortgagee") and as a
Lender, having an office at 130 Liberty Street, New York, New York 10006.

WITNESSETH:

WHEREAS,
Mortgagor executed in favor of Bankers Trust Company (now named Deutsche Bank
Trust Company Americas), as Administrative Agent, that certain Mortgage,
Assignment of Leases and Rents and Fixture Filing (the "Mortgage")
dated as of October 12, 2001 and recorded October 15, 2001 with the
Office of the Clerk and Recorder of Anoka County, Minnesota as Document
No. 1610955, relating to the real estate legally described on Exhibit A
attached hereto and made a part hereof (the "Property");

WHEREAS,
Mortgagor, Mortgagee, certain banks and financial institutions party thereto
and Bank One, N.A., as "Documentation Agent" have entered into that
certain Third Amended and Restated Credit Agreement of even date herewith (the "Third
Amended and Restated Credit Agreement"), further amending and
restating that certain Credit Agreement (as defined in the Mortgage); and

WHEREAS, in
connection with the Third Amended and Restated Credit Agreement, Mortgagor and
Mortgagee desire to amend the Mortgage in certain respects as hereinafter
provided.  All capitalized terms not
specifically defined herein shall have the respective meanings given or
ascribed to them in the Mortgage or, if not defined in the Mortgage, the Third
Amended and Restated Credit Agreement.

NOW THEREFORE, for
Ten Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Mortgagor and Mortgagee hereby
agree as follows:

1.          Effective Date.  The terms and provisions of this Amendment
shall become effective as of the date hereof (the "Effective Date").

2.            Amendment of "Mortgagee".  All references to "Mortgagee" in
the Mortgage shall hereinafter refer to Deutsche Bank Trust Company Americas
(formerly named Bankers Trust Company) as administrative agent for the Lenders
and as a Lender.

3.            Replacement of
Paragraph 35.  Paragraph 35 of the
Mortgage is hereby deleted in its entirety and replaced with the following: 

  

"35.      Maturity
Date.  The latest obligation secured
by this Mortgage matures on May 14, 2004."

  

4.            Severability.  If any provision of this Amendment is held
to be illegal, invalid or unenforceable under present or future laws, such
provision shall be fully severable and this Amendment shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part hereof, and the remaining provisions hereof or thereof shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision which shall be construed as similar in terms
as may be possible while remaining legal, valid and enforceable.

5.            Successors and
Assigns.  This Amendment shall be
binding upon Mortgagor and its successors and assigns, and shall inure to the benefit
of Mortgagee and its successors and assigns.

6.            Governing Law.  This Amendment shall be governed by and
shall be construed and enforced in accordance with the internal laws of the
State of Minnesota (without regard to conflicts of law principles) and
applicable laws of the United States.

7.            Counterparts.  This Amendment may be executed in one or
more counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument.

8.            Headings.  The headings of sections and paragraphs in
this Amendment are for convenience and reference only and shall not be
construed in any way to limit or define the content, scope, or intent of the
provisions.

9.            Reaffirmation of
Mortgage.  Except as specifically
modified by this Amendment, all other terms of the Mortgage shall remain in
full force and effect.  Any and all
references in the Mortgage to the "Mortgage" shall mean the Mortgage,
as amended by this Amendment.

[Signature and Notary Pages Follow]

    IN WITNESS WHEREOF,
Mortgagor and Mortgagee have executed this Amendment intending same to be
effective as of the date first written above.

MORTGAGOR:

VISION-EASE LENS, INC., a
Minnesota corporation

By:  /s/ Bradley D. Carlson

Name:  Bradley D. Carlson

Title:  Treasurer

 

MORTGAGEE:

DEUTSCHE BANK TRUST COMPANY AMERICAS
(formerly named Bankers Trust

Company),
as administrative agent for the

Lenders
and as a Lender

By:  /s/ Mary Jo Jolly

Name:  Mary Jo Jolly

Title:  Assistant Vice President

 

 

  	STATE OF MINNESOTA	)
	 	)	ss.
	COUNTY OF HENNEPIN	)

The
foregoing instrument was acknowledged before me this 7th day of August, 2002,
by Bradley D. Carlson, the Treasurer of Vision-Ease Lens, Inc., a Minnesota
corporation, on behalf of said corporation.

/s/
Julie K. Uhrich

Notary
Public

 

  	STATE OF NEW YORK	)
	 	)	ss.
	COUNTY OF NEW YORK	)

The
foregoing instrument was acknowledged before me this 27th day of September,
2002, by Mary Jo Jolly, the Assistant Vice President of Deutsche Bank Trust
Company Americas (formerly named Bankers Trust Company), on behalf of said
entity.

/s/
Mary E. Somoza

Notary
Public

 

THIS INSTRUMENT WAS

PREPARED BY AND AFTER

RECORDING SHOULD BE

RETURNED TO:

Winston & Strawn

35 West Wacker Drive

Chicago, Illinois 60601

Attn: Ankur Gupta, Esq.

 

 

EXHIBIT A

TO

FIRST AMENDMENT TO MORTGAGE

 

 

Mortgagor:       VISION-EASE LENS, INC., a Minnesota
corporation

 

	Mortgagee:	 DEUTSCHE BANK TRUST COMPANY AMERICAS
(formerly named Bankers Trust Company), as administrative agent for the Lenders
and as a Lender

 

The
Land described in the referenced instrument is located in Anoka County,
Minnesota, and is described as follows:

    Lot 1,
Block 1, A.E.C. Energy Park Second Addition, according to the recorded plat
thereof, in the County of Anoka, State of Minnesota.

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