Document:

<PAGE>

                                                                    Exhibit 10.7

                                                                  EXECUTION COPY

                                  $100,000,000

                         AMERICAN ROCK SALT COMPANY LLC

                      9 1/2% Senior Secured Notes due 2014

                               PURCHASE AGREEMENT

                                                                   March 5, 2004

JEFFERIES & COMPANY, INC.
520 Madison Avenue
12th Floor
New York, NY  10022

Ladies and Gentlemen:

        American Rock Salt Company LLC, a New York limited liability company
(the "Company") hereby agrees with you as follows:

        1. Issuance of Notes. Subject to the terms and conditions herein
contained, the Company proposes to issue and sell to Jefferies & Company, Inc.
(the "Initial Purchaser") $100,000,000 aggregate principal amount of 9 1/2%
Senior Secured Notes due 2014 (each a "Note" and, collectively, the "Notes").
The Notes will be issued pursuant to an indenture (the "Indenture"), to be dated
as of March 17, 2004, between the Company and U.S. Bank National Association, as
trustee (the "Trustee"). Capitalized terms used, but not defined herein, shall
have the meanings set forth in the Indenture.

        The Notes will be offered and sold to the Initial Purchaser pursuant to
an exemption from the registration requirements under the Securities Act of
1933, as amended (the "Act"). Upon original issuance thereof, and until such
time as the same is no longer required under the applicable requirements of the
Act, the Notes shall bear the legends set forth in the final offering circular,
dated the date hereof (the "Final Offering Circular"). The Company has prepared
a preliminary offering circular, dated February 20, 2004 (the "Preliminary
Offering Circular"), and the Final Offering Circular relating to the offer and
sale of the Notes (the "Offering"). "Offering Circular" means, as of any date or
time referred to in this Agreement, the most recent offering circular (whether
the Preliminary Offering Circular or the Final Offering Circular, and any
amendment or supplement to either such document), including exhibits and
schedules thereto.

        In connection with the sale of the Notes, the Company is concurrently
entering into a new senior secured credit facility between the Company and
Manufacturers and Traders Trust Company, which provides for (i) a revolving loan
facility in an aggregate principal amount of up to $30.0 million outstanding at
any time and (ii) a term loan facility in an amount of $32.1 million
(collectively, as amended, supplemented, modified, extended or restated from
time to time, the "Credit Agreement").

        2. Terms of Offering. The Initial Purchaser has advised the Company, and
the Company understands, that the Initial Purchaser will make offers to sell
(the "Exempt Resales") some or all of the Notes purchased by the Initial
Purchaser hereunder on the terms set forth in the Final Offering Circular, as

<PAGE>

amended or supplemented, to persons (the "Subsequent Purchasers") whom the
Initial Purchaser (i) reasonably believes to be "qualified institutional buyers"
as defined in Rule 144A under the Act ("QIBs"), as such Rule may be amended from
time to time, (ii) reasonably believes (based upon written representations made
by such persons to the Initial Purchaser) to be institutional "accredited
investors" ("Accredited Investors") as defined in Rule 501(a)(1), (2), (3) or
(7) under the Act or (iii) reasonably believes to be non-U.S. persons in
reliance upon Regulation S under the Act.

        Pursuant to the terms of the Collateral Agreements, all of the
obligations under the Indenture and the Notes will be secured by a first
priority lien and security interest in substantially all of the assets of the
Company and its Subsidiaries (except for a prior ranking lien by the lenders
under the Credit Agreement) in favor of the Trustee, as secured party for itself
and for the benefit of the holders of the Notes, the Exchange Notes and the
Private Exchange Notes (the "Secured Parties").

        Holders of the Notes (including Subsequent Purchasers) will have the
registration rights set forth in the registration rights agreement applicable to
the Notes (the "Registration Rights Agreement"), to be executed on and dated as
of the Closing Date (as hereinafter defined). Pursuant to the Registration
Rights Agreement, the Company will agree, among other things, to file with the
Securities and Exchange Commission (the "SEC") (a) a registration statement
under the Act (the "Exchange Offer Registration Statement") relating to senior
secured notes (the "Exchange Notes") which shall be identical to the Notes
(except that the Exchange Notes shall have been registered pursuant to such
registration statement and will not be subject to restrictions on transfer or
contain additional interest provisions) to be offered in exchange for the Notes
(such offer to exchange being referred to as the "Exchange Offer"), and/or (b)
under certain circumstances, a shelf registration statement pursuant to Rule 415
under the Act (the "Shelf Registration Statement") relating to the resale by
certain holders of the Notes. If required under the Registration Rights
Agreement, the Company will issue Exchange Notes to the Initial Purchaser (the
"Private Exchange Notes"). If the Company fails to satisfy its obligations under
the Registration Rights Agreement, it will be required to pay additional
interest to the holders of the Notes under certain circumstances, as set forth
in the Registration Rights Agreement.

        This Agreement, the Indenture, the Collateral Agreements, the
Registration Rights Agreement, the Notes, the Exchange Notes and the Private
Exchange Notes are collectively referred to herein as the "Documents."

        3. Purchase, Sale and Delivery. On the basis of the representations,
warranties, agreements and covenants herein contained and subject to the terms
and conditions herein set forth, the Company agrees to issue and sell to the
Initial Purchaser, and the Initial Purchaser agrees to purchase from the
Company, the Notes at a purchase price of 97% of the principal amount thereof.
Delivery to the Initial Purchaser of and payment for the Notes shall be made at
a closing (the "Closing") to be held at 10:00 a.m., New York time, on March 17,
2004 (the "Closing Date") at the Rochester, New York offices of Harris Beach
LLP, or at such other location as agreed to by the Initial Purchaser and the
Company.

        The Company shall deliver to the Initial Purchaser one or more
certificates representing the Notes in definitive form, registered in such names
and denominations as the Initial Purchaser may request, against payment by the
Initial Purchaser of the purchase price therefor by immediately available
federal funds bank wire transfer to such bank account or accounts as the Company
shall designate to the Initial Purchaser at least two business days prior to the
Closing Date. The certificates representing the Notes in definitive form shall
be made available to the Initial Purchaser for inspection at the New York
offices of Mayer, Brown, Rowe & Maw LLP (or such other place as shall be
reasonably acceptable to the Initial Purchaser) not later than 10:00 a.m. one
business day immediately preceding the Closing Date. Notes to be represented by
one or more definitive global securities in book-entry form will be deposited on
the

                                        2

<PAGE>

Closing Date, by or on behalf of the Company, with The Depository Trust Company
("DTC") or its designated custodian, and registered in the name of Cede & Co.

        4. Representations and Warranties of the Company. The Company represents
and warrants to the Initial Purchaser that, as of the date hereof and as of the
Closing Date:

        (a) The Preliminary Offering Circular as of its date did not, and the
Final Offering Circular as of its date did not, and as of the Closing Date will
not, and each supplement or amendment thereto as of its date will not, contain
any untrue statement of a material fact or omit to state any material fact
(except, in the case of the Preliminary Offering Circular, for pricing terms and
other financial terms intentionally left blank) necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading; provided, however, that the Company makes no representation or
warranty as to the information furnished in writing to the Company by the
Initial Purchaser specifically for use therein. No injunction or order has been
issued that either (i) asserts that any of the transactions contemplated by this
Agreement or any other Document is subject to the registration requirements of
the Act or (ii) would prevent or suspend the issuance or sale of any of the
Notes or the use of the Preliminary Offering Circular, the Final Offering
Circular or any amendment or supplement thereto, in any jurisdiction. Each of
the Preliminary Offering Circular and the Final Offering Circular, as of their
respective dates, contained, and the Final Offering Circular, as amended or
supplemented, as of the Closing Date, will contain, all the information
specified in, and meet the requirements of, Rule 144A(d)(4) under the Act. There
are no related party transactions that would be required to be disclosed in the
Final Offering Circular if the Final Offering Circular were a prospectus
included in a registration statement on Form S-1 filed under the Act that are
not disclosed in the Final Offering Circular.

        (b) The Company (i) has been duly formed, is validly existing and is in
good standing under the laws of its jurisdiction of organization, (ii) has all
requisite power and authority to carry on its business and to own, lease and
operate its properties and assets, and (iii) is duly qualified or licensed to do
business and is in good standing as a foreign corporation, partnership or other
entity, as the case may be, authorized to do business in each jurisdiction in
which the nature of such businesses or the ownership or leasing of such
properties requires such qualification, except where the failure to be so
qualified would not, individually or in the aggregate, have a material adverse
effect on (A) the properties, business, prospects, operations, earnings, assets,
liabilities or condition (financial or otherwise) of the Company, (B) the
ability of the Company to perform its obligations in all material respects under
any Document, (C) the enforceability of any Collateral Agreement or the
attachment, perfection or priority of any of the Liens intended to be created
thereby or (D) the validity of any of the Documents or the consummation of any
of the transactions contemplated therein (each, a "Material Adverse Effect").

        (c) All of the issued and outstanding Capital Stock of the Company has
been duly authorized and validly issued, are fully paid and nonassessable, and
was not issued in violation of, and is not subject to, any preemptive or similar
rights. The table under the caption "Capitalization" in the Final Offering
Circular (including the footnotes thereto) sets forth, as of its date, the
capitalization of the Company. There are no outstanding (A) options, warrants or
other rights for third parties to purchase from the Company, (B) agreements,
contracts, arrangements or other obligations of the Company to issue to third
parties or (C) other rights of third parties to convert any obligation into or
exchange any securities for, in the case of each of clauses (A) through (C),
Capital Stock of or other ownership or equity interests in the Company.

        (d) No holder of securities of the Company, other than the holders of
the Notes, will be entitled to have such securities registered under the
registration statements required to be filed by the

                                        3

<PAGE>

Company with respect to the Exchange Notes and Private Exchange Notes pursuant
to the Registration Rights Agreement.

        (e) The Company has all the requisite power and authority to execute,
deliver and perform its obligations under the Documents to which it is a party
and to consummate the transactions contemplated thereby.

        (f) This Agreement has been duly and validly authorized, executed and
delivered by the Company. Each of the Indenture and the Collateral Agreements
have been duly and validly authorized by the Company. Each of this Agreement,
the Indenture and the Collateral Agreements, when executed and delivered by the
Company, will constitute a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except that the
enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, receivership, moratorium, fraudulent conveyance or other similar
laws now or hereafter in effect relating to creditors' rights generally and (ii)
general principles of equity (whether applied by a court of law or equity) and
the discretion of the court before which any proceeding therefor may be brought.

        (g) The Registration Rights Agreement has been duly and validly
authorized by the Company. The Registration Rights Agreement, when executed and
delivered by the Company, will constitute a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms,
except that (A) the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, receivership, moratorium, fraudulent conveyance or
other similar laws now or hereafter in effect relating to creditors' rights
generally and (ii) general principles of equity (whether applied by a court of
law or equity) and the discretion of the court before which any proceeding
therefor may be brought and (B) any rights to indemnity or contribution
thereunder may be limited by federal and state securities laws and public policy
considerations.

        (h) The Notes, when issued, will be in the form contemplated by the
Indenture. The Indenture meets the requirements for qualification under the
Trust Indenture Act of 1939, as amended (the "TIA"). The Notes, Exchange Notes
and Private Exchange Notes have each been duly and validly authorized by the
Company and, in the case of the Notes, when delivered to and paid for by the
Initial Purchaser in accordance with the terms of this Agreement and the
Indenture, will have been duly executed, issued and delivered and will be legal,
valid and binding obligations of the Company, entitled to the benefit of the
Indenture, the Collateral Agreements and the Registration Rights Agreement, and
enforceable against the Company in accordance with their terms, except that the
enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, receivership, moratorium, fraudulent conveyance or other similar
laws now or hereafter in effect relating to creditors' rights generally and (ii)
general principles of equity (whether applied by a court of law or equity) and
the discretion of the court before which any proceeding therefor may be brought.
Upon and following delivery to the Initial Purchaser, the Notes will rank pari
passu with all senior Indebtedness of the Company that is outstanding on the
date hereof or that may be incurred hereafter and senior to all other
subordinated Indebtedness of the Company that is outstanding on the date hereof
or that may be incurred hereafter.

        (i) The Company is not in violation of its certificate of formation,
operating agreement or any other organizational documents (the "Charter
Documents"). The Company is not (i) in violation of any federal, state, local or
foreign statute, law (including, without limitation, common law) or ordinance,
or any judgment, decree, rule, regulation or order (collectively, "Applicable
Law") of any federal, state, local and other governmental authority,
governmental or regulatory agency or body, court, arbitrator or self-regulatory
organization, domestic or foreign (each, a "Governmental Authority"), or (ii) in
breach of or default under any bond, debenture, note or other evidence of
indebtedness, indenture, mortgage, deed of trust, lease or any other agreement
or instrument to which any of them is a party or by which any of

                                        4

<PAGE>

them or their respective property is bound (collectively, "Applicable
Agreements"), other than as disclosed in the Final Offering Circular. There
exists no condition that, with the passage of time or otherwise, would (a)
constitute a violation of such Charter Documents or Applicable Laws, (b)
constitute a breach of or default under any Applicable Agreement or (c) result
in the imposition of any penalty or the acceleration of any indebtedness.

        (j) Neither the execution, delivery or performance of the Documents nor
the consummation of any transactions contemplated therein will conflict with,
violate, constitute a breach of or a default (with the passage of time or
otherwise) under, require the consent of any person (other than consents already
obtained and in full force and effect) under, result in the imposition of any
liens, security interests, mortgages, pledges, charges, equities, claims or
restrictions on transferability or encumbrances of any kind (collectively,
"Liens") on any assets of the Company (except for Liens created pursuant to the
Documents and the Credit Agreement), or result in an acceleration of
indebtedness under or pursuant to (i) the Charter Documents, (ii) any Applicable
Agreement, or (iii) any Applicable Law. After consummation of the Offering and
transactions contemplated in the Documents, no Default or Event of Default under
the Indenture will exist.

        (k) When executed and delivered, the Documents will conform in all
material respects to the descriptions thereof in the Final Offering Circular.

        (l) No consent, approval, authorization or order of any Governmental
Authority, or third party is required for the issuance and sale by the Company
of the Notes to the Initial Purchaser or the consummation by the Company of the
other transactions contemplated hereby, except such as have been obtained (and
are in full force and effect) and such as may be required under state securities
or "Blue Sky" laws in connection with the purchase and resale of the Notes by
the Initial Purchaser.

        (m) There is no action, claim, suit, demand, hearing, notice of
violation or deficiency, or proceeding, domestic or foreign (collectively,
"Proceedings"), pending or, to the knowledge of the Company, threatened, that
either (i) seeks to restrain, enjoin, prevent the consummation of, or otherwise
challenge any of the Documents or any of the transactions contemplated therein,
or (ii) except as described in the Offering Circular, would, individually or in
the aggregate, have a Material Adverse Effect. The Company is not subject to any
judgment, order, decree, rule or regulation of any Governmental Authority that
would, individually or in the aggregate, have a Material Adverse Effect.

        (n) The Company possesses all licenses, permits, certificates, consents,
orders, approvals and other authorizations from, and has made all declarations
and filings with, all Governmental Authorities, presently required or necessary
to own or lease, as the case may be, and to operate its properties and to carry
on its business as now or proposed to be conducted as set forth in the Final
Offering Circular ("Permits"), except where the failure to obtain such Permits
would not, individually or in the aggregate, have a Material Adverse Effect; the
Company has fulfilled and performed all of its obligations with respect to such
Permits and no event has occurred which allows, or after notice or lapse of time
would allow, revocation or termination thereof or results in any other material
impairment of the rights of the holder of any such Permit; and the Company has
not received any notice of any proceeding relating to revocation or modification
of any such Permit, except as described in the Final Offering Circular or except
where such revocation or modification would not, individually or in the
aggregate, have a Material Adverse Effect.

        (o) The Company has good and marketable title to all real property owned
by it and good title to all personal property owned by it and good and
indefeasible title to all leasehold estates in real and personal property being
leased by it and, as of the Closing Date, will be free and clear of all Liens
(other than Permitted Liens). All Applicable Agreements to which the Company is
a party or by which it is

                                        5

<PAGE>

bound are valid and enforceable against the Company and, to the knowledge of the
Company, are valid and enforceable against the other party or parties thereto
and are in full force and effect with only such exceptions as would not,
individually or in the aggregate, have a Material Adverse Effect. The assets of
the Company include all of the assets and properties necessary or required in,
or otherwise material to, the conduct of the Company's business as currently
conducted and as proposed to be conducted (as described in the Final Offering
Circular), and such assets are in good working condition, except where the
failure of such assets to be in working condition would not, individually or in
the aggregate, have a Material Adverse Effect.

        (p) All Tax returns required to be filed by the Company have been filed
and all such returns are true, complete, and correct in all material respects.
All material Taxes that are due from the Company have been paid other than those
(i) currently payable without penalty or interest or (ii) being contested in
good faith and by appropriate proceedings and for which adequate reserves have
been established in accordance with generally accepted accounting principles of
the United States, consistently applied ("GAAP"). There are no actual or, to the
knowledge of the Company after due inquiry, proposed Tax assessments against the
Company that would, individually or in the aggregate, have a Material Adverse
Effect. The accruals and reserves on the books and records of the Company in
respect of any material Tax liability for any period not finally determined are
adequate to meet any assessments of Tax for any such period. For purposes of
this Agreement, the term "Tax" and "Taxes" shall mean all federal, state, local
and foreign taxes, and other assessments of a similar nature (whether imposed
directly or through withholding), including, without limitation, any interest,
additions to tax, or penalties applicable thereto.

        (q) The Company owns, or is licensed under, and has the right to use,
all patents, patent rights, licenses, inventions, copyrights, know-how
(including, without limitation, trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks and trade names (collectively, "Intellectual
Property") necessary for the conduct of its business and, as of the Closing
Date, will be free and clear of all Liens, other than Permitted Liens. No claims
or notices of any potential claim have been asserted by any person challenging
the use of any such Intellectual Property by the Company or questioning the
validity or effectiveness of the Intellectual Property or any license or
agreement related thereto (other than any claims that, if successful, would not,
individually or in the aggregate, have a Material Adverse Effect). The use of
such Intellectual Property by the Company will not infringe on the Intellectual
Property rights of any other person.

        (r) The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (i) material transactions are
executed in accordance with management's general or specific authorization, (ii)
material transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP, and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with
management's general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any material
differences.

        (s) The audited financial statements and related notes of the Company
contained in the Final Offering Circular (the "Financial Statements") present
fairly the financial position, results of operations and cash flows of the
Company, as of the respective dates and for the respective periods to which they
apply and have been prepared in accordance with GAAP and the requirements of
Regulation S-X of the Act. The financial data set forth under "Summary Financial
Data" and "Selected Financial Information" included in the Final Offering
Circular have been prepared on a basis consistent with that of the Financial
Statements and present fairly the financial position and results of
operations of the Company as of the respective dates and for the respective
periods indicated. All other financial, statistical, and market and
industry-related data included in the Final Offering Circular are fairly and
accurately presented and are

                                        6

<PAGE>

based on or derived from sources that the Company believes to be reliable and
accurate. PricewaterhouseCoopers LLP are independent public accountants with
respect to the Company.

        (t) The pro forma financial information and the related notes of the
Company set forth in the Final Offering Circular include assumptions that were
made in good faith and provide a reasonable basis for presenting the significant
effects directly attributable to the transactions and events described therein.
The related pro forma adjustments give appropriate effect to those assumptions
and the pro forma adjustments reflect the proper application of those
adjustments to the historical financial statement amounts in the pro forma
financial data included in the Final Offering Circular.

        (u) Subsequent to the respective dates as of which information is given
in the Final Offering Circular, except as adequately disclosed in the Final
Offering Circular, (i) the Company has not incurred any liabilities, direct or
contingent, that are material, individually or in the aggregate, to the Company,
or has entered into any transactions not in the ordinary course of business,
(ii) there has not been any material decrease in the Capital Stock or any
material increase in long-term indebtedness or any material increase in
short-term indebtedness of the Company, or any payment of or declaration to pay
any dividends or any other distribution with respect to the Company, and (iii)
there has not been any material adverse change in the properties, business,
prospects, operations, earnings, assets, liabilities or condition (financial or
otherwise) of the Company (each of clauses (i), (ii) and (iii), a "Material
Adverse Change") since September 30, 2003. To the knowledge of the Company after
due inquiry, there is no event that is reasonably likely to occur, which if it
were to occur, would, individually or in the aggregate, have a Material Adverse
Effect, except such events that have been adequately disclosed in the Final
Offering Circular.

        (v) No "nationally recognized statistical rating organization" (as such
term is defined for purposes of Rule 436(g)(2) under the Act) (i) has imposed
(or has informed the Company that it is considering imposing) any condition
(financial or otherwise) on the Company retaining any rating assigned to the
Company or to any securities of the Company, or (ii) has indicated to the
Company that it is considering (A) the downgrading, suspension, or withdrawal
of, or any review for a possible change that does not indicate the direction of
the possible change in, any rating so assigned, or (B) any change in the outlook
for any rating of the Company or any securities of the Company.

        (w) All indebtedness represented by the Notes is being incurred for the
purposes described in the Offering Circular and in good faith. On the Closing
Date, the Company (i) will be solvent, (ii) will have sufficient capital with
which to conduct the business it is presently conducting and presently
anticipates conducting and (iii) will be able to pay its debts as they mature.

        (x) The Company has not and, to its knowledge after due inquiry, no one
acting on its behalf has, (i) taken, directly or indirectly, any action
designed to cause or to result in, or that has constituted or which might
reasonably be expected to constitute, the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of any of
the Notes, (ii) sold, bid for, purchased, or paid anyone any compensation for
soliciting purchases of, any of the Notes, or (iii) except as disclosed in the
Final Offering Circular, paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Company.

        (y) Without limiting any provision herein, no registration under the Act
and no qualification of the Indenture under the TIA is required for the sale of
the Notes to the Initial Purchaser as contemplated hereby or for the Exempt
Resales, assuming (i) that the purchasers in the Exempt Resales are QIBs or
Accredited Investors or non-U.S. persons and (ii) the accuracy of the Initial
Purchaser's representations contained herein regarding the absence of general
solicitation in connection with the sale of the Notes to the Initial Purchaser
and in the Exempt Resales.

                                        7

<PAGE>

        (z) The Notes are eligible for resale pursuant to Rule 144A under the
 Act and no other securities of the Company are of the same class (within the
 meaning of Rule 144A under the Act) as the Notes and listed on a national
 securities exchange registered under Section 6 of the Securities Exchange Act
 of 1934, as amended (the "Exchange Act"), or quoted in a U.S. automated
 inter-dealer quotation system. No securities of the Company of the same class
 as the Notes have been offered, issued or sold by the Company or any of its
 Affiliates within the six-month period immediately prior to the date hereof.

        (aa) Neither of the Company nor any of its Affiliates or other persons
 acting on behalf of the Company has offered or sold the Notes by means of any
 general solicitation or general advertising within the meaning of Rule 502(c)
 under the Act or, with respect to Notes sold outside the United States to
 non-U.S. persons (as defined in Rule 902 under the Act), by means of any
 directed selling efforts within the meaning of Rule 902 under the Act, and the
 Company, each Affiliate of the Company and each other person acting on behalf
 of the Company have complied with and will implement the "offering
 restrictions" within the meaning of such Rule 902; provided, that no
 representation is made in this subsection with respect to the actions of the
 Initial Purchaser.

        (bb) Each of the Company and each ERISA Affiliate has fulfilled its
 obligations, if any, under the minimum funding standards of Section 302 of the
 Employee Retirement Income Security Act of 1974, as amended ("ERISA") with
 respect to each "pension plan" (as defined in Section 3(2) of ERISA), subject
 to Section 302 of ERISA which the Company or any ERISA Affiliate sponsors or
 maintains, or with respect to which it has (or within the last three years had)
 any obligation to make contributions, and each such plan is in compliance in
 all material respects with the presently applicable provisions of ERISA and the
 Code (as defined below). Neither the Company nor any ERISA Affiliate has
 incurred any unpaid liability to the Pension Benefit Guaranty Corporation
 (other than for the payment of premiums in the ordinary course) or to any such
 plan under Title IV of ERISA. "ERISA Affiliate" means a corporation, trade or
 business that is, along with the Company, a member of a controlled group of
 corporations or a controlled group of trades or businesses, as described in
 Section 414 of the Internal Revenue Code of 1986, as amended (the "Code") or
 Section 4001 of ERISA.

        (cc) (i) no labor strike, work stoppage, slowdown, or other material
labor dispute is pending against the Company, or, to the knowledge of the
Company, after due inquiry, threatened against the Company; (ii) there is no
worker's compensation liability, experience or matter that could be reasonably
expected to have a Material Adverse Effect; (iii) to the knowledge of the
Company, after due inquiry, there is no threatened or pending liability against
the Company pursuant to the Worker Adjustment Retraining and Notification Act of
1988, as amended ("WARN"), or any similar state or local law; (iv) there is no
employment-related charge, complaint, grievance, investigation, unfair labor
practice claim, or inquiry of any kind, pending against the Company that could,
individually or in the aggregate, have a Material Adverse Effect; (v) to the
knowledge of the Company, after due inquiry, no employee or agent of the Company
has committed any act or omission giving rise to liability for any violation
identified in subsection (iii) and (iv) above, other than such acts or omissions
that would not, individually or in the aggregate, have a Material Adverse
Effect; and (vi) no term or condition of employment exists through arbitration
awards, settlement agreements, or side agreements that is contrary to the
express terms of any applicable collective bargaining agreement. (dd) None of
the transactions contemplated in the Documents or the application by the Company
of the proceeds of the Notes will violate or result in a violation of Section 7
of the Exchange Act (including, without limitation, Regulation T (12 C.F.R. Part
220), Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224) of
the Board of Governors of the Federal Reserve System).

        (ee) The Company is not an open-end investment company, unit investment
trust or face-amount certificate company that is or is required to be registered
under Section 8 of the United States

                                        8

<PAGE>

Investment Company Act of 1940, as amended (the "Investment Company Act"); and
the Company is not and, after giving effect to the offering and sale of the
Notes and the application of the proceeds thereof as described in the Final
Offering Circular, will not be an "investment company" as defined in the
Investment Company Act.

        (ff) The Company has not engaged any broker, finder, commission agent or
other person (other than the Initial Purchaser and Cohen & Company, LLC) in
connection with the Offering or any of the transactions contemplated in the
Documents, and the Company is not under any obligation to pay any broker's fee
or commission in connection with such transactions (other than commissions or
fees to the Initial Purchaser and Cohen & Company, LLC).

        (gg) The Company (i) is in compliance with all applicable foreign,
federal, state and local laws and regulations relating to the protection of the
environment or hazardous or toxic substances of wastes, pollutants or
contaminants ("Environmental Laws"), (ii) has received and is in compliance with
all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business and (iii) has not received notice of
any actual or potential liability for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants, in each case except where such non-compliance with Environmental
Laws, failure to receive and comply with required permits, licenses or other
approvals, or liability would not, individually or in the aggregate, have a
Material Adverse Effect, whether or not arising from transactions in the
ordinary course of business. The Company has not been named as a "potentially
responsible party" under the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended.

        In the ordinary course of its business, the Company periodically reviews
the effect of Environmental Laws on the business, operations and properties of
the Company, in the course of which it identifies and evaluates associated costs
and liabilities (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance with
Environmental Laws, or any permit, license or approval, any related constraints
on operating activities and any potential liabilities to third parties). On the
basis of such review, the Company has reasonably concluded that such associated
costs would not have a Material Adverse Effect.

        (hh) As of the Closing Date, except as described in the Offering
Circular and as provided in the Credit Agreement, there will be no encumbrances
or restrictions on the ability of any Subsidiary of the Company (x) to pay
dividends or make other distributions on such Subsidiary's Capital Stock or to
pay any indebtedness to the Company or any other Subsidiary of the Company, (y)
to make loans or advances or pay any indebtedness to, or investments in, the
Company or any other Subsidiary of the Company or (z) to transfer any of its
property or assets to the Company or any other Subsidiary of the Company.

        (ii) Each certificate signed by any officer of the Company delivered to
the Initial Purchaser shall be deemed a representation and warranty by the
Company (and not individually by such officer) to the Initial Purchaser with
respect to the matters covered thereby.

        (jj) The Company is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the business in which it is engaged. All policies of insurance
insuring the Company or its business, assets, employees, officers and directors
are in full force and effect. The Company is in compliance with the terms of
such policies and instruments in all material respects, and there are no claims
by the Company under any such policy or instrument as to which any insurance
company is denying liability or defending under a reservation of rights clause.
The Company has not been refused any insurance coverage sought or applied for,
and the Company has no reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to

                                        9

<PAGE>

continue its business at a cost that would not, individually or in the
aggregate, have a Material Adverse Effect.

        (kk) All information certified to by an officer of the Company in the
Perfection Certificate, dated as of March 17, 2004 (the "Perfection
Certificate") is true and correct as of the date hereof and will be true and
correct as of the Closing Date.

        (ll) (a) Upon:

                (i) execution and delivery of the Collateral Agreements by the
        Company and the Collateral Agent (as defined therein) and compliance by
        the Company with its obligations thereunder; and

                (ii)    (A) the filing or recording of the Collateral Agreements
                        or appropriate financing statements with the
                        appropriate filing records, registry, or other public
                        office, together with the payment of the requisite
                        filing or recordation fees related thereto,

                        (B) in the case of Motor Vehicles (as defined in the
                        Security Agreement), upon the recordation or notation of
                        the Collateral Agent's security interest on the
                        certificates of title or ownership in respect of such
                        Motor Vehicles and the filing of the Uniform Commercial
                        Code financing statements delivered by the Company
                        having an interest in such Motor Vehicles to the
                        Collateral Agent with respect to such Motor Vehicles,

                        (C) in the case of Collateral comprised of any deposit
                        account and cash, checks, drafts, notes, bills of
                        exchange, money orders and other like instruments held
                        therein, upon the execution and delivery of a Deposit
                        Account Agreement (as defined in the Security
                        Agreement), by the Company, the Administrative Agent and
                        the depositary at which such deposit account is
                        maintained, the Administrative Agent will for the
                        benefit of the Secured Parties have "control" (as
                        defined in Section 9-104(a) of the New York UCC) over
                        such deposit account and all cash, checks, drafts,
                        notes, bills of exchange, money orders and other like
                        instruments held therein and such security interest will
                        be a valid perfected security interest (subject in
                        priority only to the Liens securing the Credit
                        Agreement); and

                        (D) the filing of appropriately completed Uniform
                        Commercial Code Form UCC-1 financing statements (the
                        "Financing Statements") naming the Company as a debtor
                        and the Collateral Agent as the secured party in the
                        appropriate filing office in New York, together with the
                        payment of the requisite filing fees related thereto,

                the security interest of the Collateral Agent in the Collateral
                (as defined in the Collateral Agreements) will be a valid and
                enforceable perfected security interest, which security interest
                will be superior to and prior to the rights of all third persons
                other than holders of Permitted Liens.

                (b) As of the Closing Date, except with respect to Permitted
        Liens, there will be no currently effective financing statement,
        security agreement, chattel mortgage, real estate mortgage or other
        document filed or recorded with any filing records, registry, or other
        public

                                       10

<PAGE>

        office, that purports to cover, affect or give notice of any present or
        possible future Lien on, or security interest in, any assets or property
        of the Company or any rights thereunder.

        5. Covenants of the Company. The Company hereby agrees:

        (a) To (i) advise the Initial Purchaser promptly after obtaining
knowledge (and, if requested by the Initial Purchaser, confirm such advice in
writing) of (A) the issuance by any state securities commission of any stop
order suspending the qualification or exemption from qualification of any of the
Notes for offer or sale in any jurisdiction, or the initiation of any proceeding
for such purpose by any state securities commission or other regulatory
authority, or (B) the happening of any event that makes any statement of a
material fact made in the Final Offering Circular untrue or that requires the
making of any additions to or changes in the Final Offering Circular in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, (ii) use its reasonable best efforts to prevent the
issuance of any stop order or order suspending the qualification or exemption
from qualification of any of the Notes under any state securities or Blue Sky
laws, and (iii) if, at any time, any state securities commission or other
regulatory authority shall issue an order suspending the qualification or
exemption from qualification of any of the Notes under any such laws, use its
reasonable best efforts to obtain the withdrawal or lifting of such order at the
earliest possible time.

        (b) To (i) furnish the Initial Purchaser, without charge, as many copies
of the Final Offering Circular, and any amendments or supplements thereto, as
the Initial Purchaser may reasonably request, and (ii) promptly prepare, upon
the Initial Purchaser's reasonable request, any amendment or supplement to the
Final Offering Circular that the Initial Purchaser, upon advice of legal
counsel, determines may be necessary in connection with Exempt Resales (and the
Company hereby consents to the use of the Preliminary Offering Circular and the
Final Offering Circular, and any amendments and supplements thereto, by the
Initial Purchaser in connection with Exempt Resales).

        (c) Not to amend or supplement the Final Offering Circular prior to the
Closing Date or at any time prior to the completion of the resale by the Initial
Purchaser of all of the Notes purchased by the Initial Purchaser, unless the
Initial Purchaser shall previously have been advised thereof and shall have
provided its written consent thereto.

        (d) So long as the Initial Purchaser shall hold any of the Notes, (i) if
any event shall occur as a result of which, in the reasonable judgment of the
Company or the Initial Purchaser, it becomes necessary or advisable to amend or
supplement the Final Offering Circular in order to make the statements therein,
in light of the circumstances under which they were made, not misleading, or if
it is necessary to amend or supplement the Final Offering Circular to comply
with Applicable Law, to prepare, at the expense of the Company, an appropriate
amendment or supplement to the Final Offering Circular (in form and substance
reasonably satisfactory to the Initial Purchaser) so that (A) as so amended or
supplemented, the Final Offering Circular will not include an untrue statement
of material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading, and (B) the Final Offering Circular will comply with Applicable
Law and (ii) if in the reasonable judgment of the Company or the Initial
Purchaser it becomes necessary or advisable to amend or supplement the Final
Offering Circular so that the Final Offering Circular will contain all of the
information specified in, and meet the requirements of, Rule 144A(d)(4) of the
Act, to prepare an appropriate amendment or supplement to the Final Offering
Circular (in form and substance reasonably satisfactory to the Initial
Purchaser) so that the Final Offering Circular, as so amended or
supplemented, will contain the information specified in, and meet the
requirements of, such Rule.

        (e) To cooperate with the Initial Purchaser and the Initial Purchaser's
counsel in connection with the qualification of the Notes under the securities
or Blue Sky laws of such jurisdictions as the Initial

                                       11

<PAGE>

Purchaser may request and continue such qualification in effect so long as
reasonably required for Exempt Resales.

        (f) Whether or not any of the Offering or the transactions contemplated
under the Documents are consummated or this Agreement is terminated, to pay (i)
all costs, expenses, fees and taxes incidental to and in connection with: (A)
the preparation, printing and distribution of the Preliminary Offering Circular
and the Final Offering Circular and all amendments and supplements thereto
(including, without limitation, financial statements and exhibits), and all
other agreements, memoranda, correspondence and other documents prepared and
delivered in connection herewith, (B) the negotiation, printing, processing and
distribution (including, without limitation, word processing and duplication
costs) and delivery of, each of the Documents and the Intercreditor Agreement,
(C) the preparation, issuance and delivery of the Notes, (D) the qualification
of the Notes for offer and sale under the securities or Blue Sky laws of the
several states (including, without limitation, the fees and disbursements of the
Initial Purchaser's counsel relating to such registration or qualification), (E)
furnishing such copies of the Preliminary Offering Circular and the Final
Offering Circular, and all amendments and supplements thereto, as may reasonably
be requested for use by the Initial Purchaser and (F) the performance of the
Company's obligations under the Registration Rights Agreement, including but not
limited to the Exchange Offer, the Exchange Offer Registration Statement and any
Shelf Registration Statement, (ii) all fees and expenses of counsel, accountants
and any other experts or advisors retained by the Company, (iii) all expenses
and listing fees in connection with the application for quotation of the Notes
on the Private Offerings, Resales and Trading Automated Linkages ("PORTAL")
market, (iv) all fees and expenses (including fees and expenses of counsel) of
the Company in connection with approval of the Notes by DTC for "book-entry"
transfer, (v) all fees charged by rating agencies in connection with the rating
of the Notes, (vi) all fees and expenses (including reasonable fees and expenses
of counsel) of the Trustee and the Collateral Agent and all sub-collateral
agents, and (vii) all fees and expenses incurred in connection with the creation
and perfection of the security interests under each Collateral Agreement
(including, without limitation, filing and recording fees, search fees, taxes
and costs of title policies). If the sale of the Notes provided for herein is
not consummated because any condition to the obligations of the Initial
Purchaser set forth in Section 7 hereof is not satisfied, because this Agreement
is terminated pursuant to Section 9 hereof or because of any failure, refusal or
inability on the part of the Company to perform all obligations and satisfy all
conditions on its part to be performed or satisfied hereunder (other than in
each such case solely by reason of a default by the Initial Purchaser on its
obligations hereunder after all conditions hereunder have been satisfied in
accordance herewith), the Company agrees to promptly reimburse the Initial
Purchaser in cash upon demand for 75% of the reasonable fees and disbursements
of Mayer, Brown, Rowe & Maw LLP, counsel for the Initial Purchaser; provided,
however, that such amount shall not exceed $200,000.

        (g) To use the proceeds of the Offering in the manner described in the
Final Offering Circular under the caption "Use of Proceeds."

        (h) To do and perform all things required to be done and performed under
the Documents both prior to and after the Closing Date.

        (i) Not to, and to ensure that no affiliate (as defined in Rule 501(b)
of the Act) of the Company will, sell, offer for sale or solicit offers to buy
or otherwise negotiate in respect of any "security" (as defined in the Act) that
would be integrated with the sale of the Notes in a manner that would require
the registration under the Act of the sale to the Initial Purchaser or to the
Subsequent Purchasers of the Notes.

        (j) For so long as any of the Notes remain outstanding, during any
period in which the Company is not subject to Section 13 or 15(d) of the
Exchange Act, to make available, upon request and

                                       12

<PAGE>

without cost, to any owner of the Notes in connection with any sale thereof and
any prospective Subsequent Purchasers of such Notes from such owner, the
information required by Rule 144A(d)(4) under the Act.

        (k) To comply with the representation letter of the Company to DTC
relating to the approval of the Notes by DTC for "book entry" transfer.

        (l) To use its reasonable best efforts to effect the inclusion of the
Notes in PORTAL and to use its reasonable best efforts to maintain the listing
of the Notes on PORTAL for so long as the Notes are outstanding.

        (m) For so long as any of the Notes remain outstanding, to furnish to
the Initial Purchaser copies of all reports and other communications (financial
or otherwise) furnished by the Company to the Trustee or to the holders of the
Notes and, as soon as available, copies of any reports or financial statements
furnished to or filed by the Company with the SEC or any national securities
exchange on which any class of securities of the Company may be listed.

        (n) Except in connection with the Exchange Offer or the filing of the
Shelf Registration Statement, not to, and not to authorize or permit any person
acting on its behalf to, (i) distribute any offering material in connection with
the offer and sale of the Notes other than the Preliminary Offering Circular and
the Final Offering Circular and any amendments and supplements to the Final
Offering Circular prepared in compliance with this Agreement, or (ii) solicit
any offer to buy or offer to sell the Notes by means of any form of general
solicitation or general advertising (including, without limitation, as such
terms are used in Regulation D under the Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Act.

        (o) During the two year period after the Closing Date (or such shorter
period as may be provided for in Rule 144(k) under the Act, as the same may be
in effect from time to time), to not, and to not permit any future Subsidiaries
of either the Company or any other affiliates (as defined in Rule 144A under the
Act) controlled by the Company to, resell any of the Notes which constitute
"restricted securities" under Rule 144 that have been reacquired by the Company,
any future Subsidiaries of the Company or any other affiliates (as defined in
Rule 144A under the Act) controlled by the Company, except pursuant to an
effective registration statement under the Act.

        (p) The Company shall pay all stamp, documentary and transfer taxes and
other duties, if any, which may be imposed by the United States or any political
subdivision thereof or taxing authority thereof or therein with respect to the
issuance of the Notes or the sale thereof to the Initial Purchaser.

        6. Representations and Warranties of the Initial Purchaser. The Initial
Purchaser represents and warrants that:

        (a) It is a QIB and it will offer the Notes for resale only upon the
terms and conditions set forth in this Agreement and in the Final Offering
Circular.

        (b) It is not acquiring the Notes with a view to any distribution
thereof that would violate the Act or the securities laws of any state of the
United States or any other applicable jurisdiction. In connection with the
Exempt Resales, it will solicit offers to buy the Notes only from, and will
offer and sell the Notes only to, (A) persons reasonably believed by the Initial
Purchaser to be QIBs or (B) persons reasonably believed by the Initial Purchaser
to be Accredited Investors or (C) non-U.S. persons reasonably believed by the
Initial Purchaser to be a purchaser referred to in Regulation S under the Act;

                                       13

<PAGE>

provided, however, that in purchasing such Notes, such persons are deemed to
have represented and agreed as provided under the caption "Notice to Investors"
contained in the Final Offering Circular.

        (c) No form of general solicitation or general advertising in violation
of the Act has been or will be used nor will any offers in any manner involving
a public offering within the meaning of Section 4(2) of the Act or, with respect
to Notes to be sold in reliance on Regulation S, by means of any directed
selling efforts be made by such Initial Purchaser or any of its representatives
in connection with the offer and sale of any of the Notes.

        (d) The Initial Purchaser will deliver to each Subsequent Purchaser of
the Notes, in connection with its original distribution of the Notes, a copy of
the Final Offering Circular, as amended and supplemented at the date of such
delivery.

        7. Conditions. The obligations of the Initial Purchaser to purchase the
Notes under this Agreement are subject to the satisfaction of each of the
following conditions or waiver thereof by the Initial Purchaser:

        (a) All the representations and warranties of the Company contained in
this Agreement and in each of the Documents and the Perfection Certificate shall
be true and correct as of the date hereof and at the Closing Date. On or prior
to the Closing Date, the Company and each other party to the Documents (other
than the Initial Purchaser) shall have performed or complied with all of the
agreements and satisfied all conditions on their respective parts to be
performed, complied with or satisfied pursuant to the Documents (other than
conditions to be satisfied by such other parties, which the failure to so
satisfy would not, individually or in the aggregate, have a Material Adverse
Effect).

        (b) No injunction, restraining order or order of any nature by a
Governmental Authority shall have been issued as of the Closing Date that would
prevent or materially interfere with the consummation of the Offering or any of
the transactions contemplated under the Documents; and no stop order suspending
the qualification or exemption from qualification of any of the Notes in any
jurisdiction shall have been issued and no Proceeding for that purpose shall
have been commenced or, to the knowledge of the Company after due inquiry, be
pending or contemplated as of the Closing Date.

        (c) No action shall have been taken and no Applicable Law shall have
been enacted, adopted or issued that would, as of the Closing Date, prevent the
consummation of the Offering or any of the transactions contemplated under the
Documents. No Proceeding shall be pending or, to the knowledge of the Company
after due inquiry, threatened other than Proceedings that (A) if adversely
determined would not, individually or in the aggregate, adversely affect the
issuance or marketability of the Notes, and (B) would not, individually or in
the aggregate, have a Material Adverse Effect.

        (d) Subsequent to the respective dates as of which data and information
are given in the Final Offering Circular, there shall not have been any Material
Adverse Change.

        (e) The Notes shall have been designated PORTAL securities in accordance
with the rules and regulations adopted by the National Association of Securities
Dealers, Inc. relating to trading in the PORTAL market.

        (f) On or after the date hereof, (i) there shall not have occurred any
downgrading, suspension or withdrawal of, nor shall any notice have been given
of any potential or intended downgrading, suspension or withdrawal of, or of any
review (or of any potential or intended review) for a possible change that does
not indicate the direction of the possible change in, any rating of the Company
or any securities of the Company (including, without limitation, the placing of
any of the foregoing ratings on

                                       14

<PAGE>

credit watch with negative or developing implications or under review with an
uncertain direction) by any "nationally recognized statistical rating
organization" as such term is defined for purposes of Rule 436(g)(2) under the
Act, (ii) there shall not have occurred any change, nor shall any notice have
been given of any potential or intended change, in the outlook for any rating of
the Company or any securities of the Company by any such rating organization and
(iii) no such rating organization shall have given notice that it has assigned
(or is considering assigning) a lower rating to the Notes than that on which the
Notes were marketed.

        (g) The proceeds of the Offering will be used in the manner described in
the Final Offering Circular under the caption "Use of Proceeds."

        (h) The Initial Purchaser shall have received on the Closing Date:

                (i) certificates dated the Closing Date, signed by (1) the
        Chairman or Vice Chairman of the Company and (2) the principal financial
        or accounting officer of the Company, on behalf of the Company, to the
        effect that (a) the representations and warranties set forth in Section
        4 hereof are true and correct in all material respects with the same
        force and effect as though expressly made at and as of the Closing Date,
        (b) the Company has complied with all agreements and satisfied all
        conditions in all material respects on its part to be performed or
        satisfied at or prior to the Closing Date, (c) at the Closing Date,
        since the date hereof or since the date of the most recent financial
        statements in the Final Offering Circular (exclusive of any amendment or
        supplement thereto after the date hereof), no event or events have
        occurred, no information has become known nor does any condition exist
        that, individually or in the aggregate, would have a Material Adverse
        Effect, (d) since the date of the most recent financial statements in
        the Final Offering Circular (exclusive of any amendment or supplement
        thereto after the date hereof), other than as described in the Final
        Offering Circular or contemplated hereby, the Company has not incurred
        any liabilities or obligations, direct or contingent, not in the
        ordinary course of business, that are material to the Company, taken as
        a whole, or entered into any transactions not in the ordinary course of
        business that are material to the business, condition (financial or
        otherwise) or results of operations or prospects of the Company, and
        there has not been any change in the Capital Stock or long-term
        indebtedness of the Company that is material to the business, condition
        (financial or otherwise) or results of operations or prospects of the
        Company, and (e) the sale of the Notes has not been enjoined
        (temporarily or permanently).

                (ii) a certificate, dated the Closing Date, executed by the
        Secretary of the Company, certifying such matters as the Initial
        Purchaser may reasonably request.

                (iii) a certificate of solvency, dated the Closing Date,
        executed by the principal financial or accounting officer of the Company
        substantially in the form previously approved by the Initial Purchaser.

                (iv) the opinion of Harris Beach LLP, counsel to the Company,
        dated the Closing Date, substantially in the form of Exhibit A attached
        hereto.

                (v) an opinion, dated the Closing Date, of Mayer, Brown, Rowe &
        Maw LLP, counsel to the Initial Purchaser, in form satisfactory to the
        Initial Purchaser covering such matters as are customarily covered in
        such opinions.

        (i) The Initial Purchaser shall have received from
PricewaterhouseCoopers LLP, independent auditors, with respect to the Company,
(A) a customary comfort letter, dated the date of the Final Offering Circular,
in form and substance reasonably satisfactory to the Initial Purchaser, with

                                       15

<PAGE>

respect to the financial statements and certain financial information contained
in the Final Offering Circular, and (B) a customary "bring down" comfort letter,
dated the Closing Date, in form and substance reasonably satisfactory to the
Initial Purchaser, to the effect that PricewaterhouseCoopers LLP reaffirms the
statements made in its letter furnished pursuant to clause (A) above.

        (j) Each of the Documents shall have been executed and delivered by all
parties thereto, and the Initial Purchaser shall have received a fully executed
original of each Document.

        (k) The Initial Purchaser shall have received copies of all opinions,
certificates, letters and other documents delivered under or in connection with
the Offering or any transaction contemplated in the Documents.

        (l) The Initial Purchaser shall have received the Final Offering
Circular, and the terms of each Document shall conform in all material respects
to the description thereof in the Final Offering Circular.

        (m) None of the parties to any of the Documents shall be in breach or
default of any of their respective obligations in any material respect.

        (n) The Collateral Agent shall have received (with a copy for the
Initial Purchaser) on the Closing Date:

                (i) appropriately completed copies of Uniform Commercial Code
        financing statements naming the Company as a debtor and the Collateral
        Agent as the secured party, or other similar instruments or documents to
        be filed under the UCC of all jurisdictions as may be necessary or, in
        the reasonable opinion of the Collateral Agent and its counsel,
        desirable to perfect the security interests of the Collateral Agent
        pursuant to the Security Agreement;

                (ii) appropriately completed copies of Uniform Commercial Code
        Form UCC-3 termination statements, if any, necessary to release all
        Liens (other than Permitted Liens) of any Person in any collateral
        described in any Security Agreement previously granted by any Person;

                (iii) certified copies of Uniform Commercial Code Requests for
        Information or Copies (Form UCC-11), or a similar search report
        certified by a party acceptable to the Collateral Agent, dated a date
        reasonably near to the Closing Date, listing all effective financing
        statements which name the Company (under its present name and any
        previous names) as the debtor, together with copies of such financing
        statements (none of which shall cover any collateral described in any
        Collateral Agreement, other than such financing statements that evidence
        Permitted Liens);

                (iv) such other approvals, opinions, or documents as the
        Collateral Agent may reasonably request in form and substance reasonably
        satisfactory to the Collateral Agent; and

                (v) the Collateral Agent and its counsel shall be satisfied that
        (i) the Lien granted to the Collateral Agent, for the benefit of the
        Secured Parties in the collateral described above is of the priority
        described in the Final Offering Circular; and (ii) no Lien exists on any
        of the collateral described above other than the Lien created in favor
        of the Collateral Agent, for the benefit of the Secured Parties,
        pursuant to a Collateral Agreement, in each case subject to the
        Permitted Liens.

        (o) All Financing Statements or other similar financing statements
and Uniform Commercial Code Form UCC-3 termination statements required pursuant
to clause (o)(i) and (ii) above (collectively,

                                       16

<PAGE>

the "Filing Statements") shall have been delivered to CT Corporation System or
another similar filing service company acceptable to the Collateral Agent (the
"Filing Agent"). The Filing Agent shall have acknowledged in a writing
reasonably satisfactory to the Collateral Agent and its counsel (i) the Filing
Agent's receipt of all Filing Statements, (ii) that the Filing Statements have
either been submitted for filing in the appropriate filing offices or will be
submitted for filing in the appropriate offices within ten days following the
Closing Date and (iii) that the Filing Agent will notify the Collateral Agent
and its counsel of the results of such submissions within 30 days following the
Closing Date.

        (p) The Initial Purchaser shall have received prior to or
contemporaneously with the Closing a payoff letter from the lender or agent
under the Company's existing secured credit facility in form and substance
satisfactory to the Initial Purchaser.

        (q) The Company shall have delivered the following documents and
instruments with regard to each Premises prior to or contemporaneously with the
Closing:

                (i) to the Collateral Agent, as mortgagee, fully executed
        counterparts of Mortgages, each dated as of the Closing Date, duly
        executed by the Company, together with evidence of the completion (or
        satisfactory arrangements for the completion), of all recordings and
        filings of such Mortgage as may be necessary to create a valid,
        perfected Lien, subject to Permitted Liens, against the properties to be
        covered thereby;

                (ii) to the Collateral Agent, mortgagee's title insurance
        policies in favor of the Collateral Agent, as mortgagee for the ratable
        benefit of the Collateral Agent and the Secured Parties, in amounts and
        in form and substance and issued by insurers reasonably acceptable to
        the Collateral Agent, with respect to the property purported to be
        covered by such Mortgages, insuring that title to such property is
        marketable and that the interests created by the Mortgages constitute
        valid Liens thereon free and clear of all Liens, defects and
        encumbrances other than Permitted Liens, and such policies shall also
        include, to the extent available, a revolving credit endorsement and
        such other endorsements as the Collateral Agent shall reasonably request
        and shall be accompanied by evidence of the payment in full of all
        premiums thereon;

                (iii) to the Collateral Agent, with respect to each of the
        covered Premises, the most recent survey of such Premises, together with
        either (A) an updated survey certification in favor of the Trustee and
        the Collateral Agent from the applicable surveyor stating that, based on
        a visual inspection of the property and the knowledge of the surveyor,
        there has been no change in the facts depicted in the survey or (B) an
        affidavit from the Company stating that there has been no change, other
        than, in each case, changes that do not materially adversely affect the
        use by the Company of such Premises for the Company's business as so
        conducted, or intended to be conducted, at such Premises; and

                (iv) to the Collateral Agent, with respect to each Premises that
        is the subject of such Mortgages, such filings, surveys, local counsel
        opinions and fixture filings, along with such other documents,
        instruments, certificates and agreements, as the Collateral Agent and
        its counsel shall reasonably request or that are required to be
        delivered pursuant to the Indenture.

        (r) The Initial Purchaser shall have received prior to or
contemporaneously with the Closing executed Acknowledgments of Liens for each of
the Company's Salt Handling and Storage Agreements in form and substance
satisfactory to the Initial Purchaser.

        (s) The Initial Purchaser shall have received prior to or
contemporaneously with the Closing an executed Landlord Consent from Retsof
Realty LLC and the principals of Retsof Realty LLC in favor

                                       17

<PAGE>

of the Secured Parties confirming that the Secured Parties or their assignees
will be entitled to receive a long term lease of the "Fuller Plant Site" in
Retsof, NY on the same financial terms as the existing lease for such premises
in form and substance satisfactory to the Initial Purchaser.

        8. Indemnification and Contribution.

        (a) The Company agrees to indemnify and hold harmless the Initial
Purchaser, and each person, if any, who controls the Initial Purchaser within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act, against
any losses, claims, damages or liabilities of any kind to which the Initial
Purchaser or such controlling person may become subject under the Act, the
Exchange Act or otherwise, insofar as any such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon:

                (i) any untrue statement or alleged untrue statement of any
        material fact contained in any Offering Circular or any amendment or
        supplement thereto;

                (ii) the omission or alleged omission to state, in any Offering
        Circular or any amendment or supplement thereto, a material fact
        required to be stated therein or necessary to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading; or

                (iii) any breach by the Company of its representations,
        warranties and agreements set forth herein;

and, subject to the provisions hereof, will reimburse, as incurred, the Initial
Purchaser and each such controlling person for any legal or other expenses
reasonably incurred by the Initial Purchaser or such controlling person in
connection with investigating, defending against or appearing as a third-party
witness in connection with any such loss, claim, damage, liability or action in
respect thereof; provided, however, the Company will not be liable in any such
case to the extent (but only to the extent) that any such loss, claim, damage or
liability is finally judicially determined by a court of competent jurisdiction
in a final, unappealable judgment, to have resulted solely from any untrue
statement or alleged untrue statement or omission or alleged omission made in
any Offering Circular or any amendment or supplement thereto in reliance upon
and in conformity with written information concerning the Initial Purchaser
furnished to the Company by or on behalf of the Initial Purchaser specifically
for use therein. This indemnity agreement will be in addition to any liability
that the Company may otherwise have to the indemnified parties. The Company
shall not be liable under this Section 8 for any settlement of any claim or
action effected without its prior written consent, which consent shall not be
unreasonably withheld or delayed; and provided further, however, that this
indemnity, as to the Preliminary Offering Circular, shall not inure to the
benefit of the Initial Purchaser (or any person controlling such Initial
Purchaser) on account of any loss, claim, damage or liability arising from the
sale of Notes to any person by such Initial Purchaser if such Initial Purchaser
failed to send or give a copy of the Final Offering Circular (as the same may be
supplemented or amended) to such person at or prior to the written confirmation
of the sale of the Notes to such person, and the untrue statement or alleged
untrue statement or omission or alleged omission of a material fact in such
Preliminary Offering Circular was corrected in the Final Offering Circular,
unless such failure resulted from noncompliance by the Company with Section
5(b).

        (b) The Initial Purchaser agrees to indemnify and hold harmless each of
the Company, its directors, officers and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act against any losses, claims, damages or liabilities of any kind to
which the Company or any such director, officer or controlling person may become
subject under the Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect

                                       18

<PAGE>

thereof) are finally judicially determined by a court of competent jurisdiction
in a final, unappealable judgment, to have resulted solely from (i) any untrue
statement or alleged untrue statement of any material fact contained in any
Offering Circular or any amendment or supplement thereto or (ii) the omission or
the alleged omission to state therein a material fact required to be stated in
any Offering Circular or any amendment or supplement thereto or necessary to
make the statements therein not misleading, in each case to the extent (but only
to the extent) that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information concerning such Initial Purchaser, furnished to the Company
or its agents by or on behalf of the Initial Purchaser specifically for use
therein; and, subject to the limitation set forth immediately preceding this
clause, will reimburse, as incurred, any legal or other expenses incurred by the
Company or any such director, officer or controlling person in connection with
any such loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability that the Initial
Purchaser may otherwise have to the indemnified parties.

        (c) As promptly as reasonably practical after receipt by an indemnified
party under this Section 8 of notice of the commencement of any action for which
such indemnified party is entitled to indemnification under this Section 8, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party of the
commencement thereof in writing; but the omission to so notify the indemnifying
party (i) will not relieve such indemnifying party from any liability under
paragraph (a) or (b) above unless and only to the extent it is materially
prejudiced as a result thereof and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraphs (a) and (b) above. In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may determine,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party;
provided, however, that if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the defendants in any such action include both the
indemnified party and the indemnifying party, and the indemnified party shall
have been advised by counsel in writing that there may be one or more legal
defenses available to it and/or other indemnified parties that are different
from or additional to those available to the indemnifying party, or (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after receipt by the indemnifying party of notice of the institution of
such action, then, in each such case, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party
or parties and such indemnified party or parties shall have the right to select
separate counsel to defend such action on behalf of such indemnified party or
parties at the expense of the indemnifying party. After notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof and approval by such indemnified party of counsel appointed to
defend such action, the indemnifying party will not be liable to such
indemnified party under this Section 8 for any legal or other expenses, other
than reasonable costs of investigation, subsequently incurred by such
indemnified party in connection with the defense thereof, unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the immediately preceding sentence (it being understood, however,
that in connection with such action the indemnifying party shall not be liable
for the expenses of more than one separate counsel (in addition to local
counsel) in any one action or separate but substantially similar actions in the
same jurisdiction arising out of the same general allegations or circumstances,
designated by the Initial Purchaser in the case of paragraph (a) of this Section
8 or the Company in the case of paragraph (b) of this Section 8, representing
the indemnified parties under such paragraph (a) or paragraph (b), as the case
may be, who are parties to such action or actions) or (ii) the indemnifying
party has authorized in writing the employment of counsel for the indemnified
party at the expense of the indemnifying party. After such notice from the
indemnifying party to such indemnified

                                       19

<PAGE>

party, the indemnifying party will not be liable for the costs and expenses of
any settlement of such action effected by such indemnified party without the
prior written consent of the indemnifying party (which consent shall not be
unreasonably withheld), unless such indemnified party waived in writing its
rights under this Section 8, in which case the indemnified party may effect such
a settlement without such consent.

        (d) No indemnifying party shall be liable under this Section 8 for any
settlement of any claim or action (or threatened claim or action) effected
without its written consent, which shall not be unreasonably withheld, but if a
claim or action settled with its written consent, or if there be a final
judgment for the plaintiff with respect to any such claim or action, each
indemnifying party jointly and severally agrees, subject to the exceptions and
limitations set forth above, to indemnify and hold harmless each indemnified
party from and against any and all losses, claims, damages or liabilities (and
legal and other expenses as set forth above) incurred by reason of such
settlement or judgment. No indemnifying party shall, without the prior written
consent of the indemnified party (which consent shall not be unreasonably
withheld), effect any settlement or compromise of any pending or threatened
proceeding in respect of which the indemnified party is or could have been a
party, or indemnity could have been sought hereunder by the indemnified party,
unless such settlement (A) includes an unconditional written release of the
indemnified party, in form and substance satisfactory to the indemnified party,
from all liability on claims that are the subject matter of such proceeding and
(B) does not include any statement as to an admission of fault, culpability or
failure to act by or on behalf of the indemnified party.

        (e) In circumstances in which the indemnity agreement provided for in
the preceding paragraphs of this Section 8 is unavailable to, or insufficient to
hold harmless, an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contributions, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties, on the one hand, and the indemnified party, on the other, from
the Offering or (ii) if the allocation provided by the foregoing clause (i) is
not permitted by applicable law, not only such relative benefits but also the
relative fault of the indemnifying party or parties, on the one hand, and the
indemnified party, on the other, in connection with the statements or omissions
or alleged statements or omissions that resulted in such losses, claims, damages
or liabilities (or actions in respect thereof). The relative benefits received
by the Company, on the one hand, and the Initial Purchaser, on the other, shall
be deemed to be in the same proportion as the total proceeds from the Offering
(before deducting expenses) received by the Company bear to the total discounts
and commissions received by the Initial Purchaser. The relative fault of the
parties shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the
Company, on the one hand, or the Initial Purchaser, on the other, the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission or alleged statement or omissions, and any
other equitable considerations appropriate in the circumstances.

        (f) The Company and the Initial Purchaser agree that it would not be
equitable if the amount of such contribution determined pursuant to the
immediately preceding paragraph (e) were determined by pro rata or per capita
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the first sentence of the
immediately preceding paragraph (e). Notwithstanding any other provision of this
Section 8, the Initial Purchaser shall not be obligated to make contributions
hereunder that in the aggregate exceed the total discounts, commissions and
other compensation received by such Initial Purchaser under this Agreement, less
the aggregate amount of any damages that such Initial Purchaser has otherwise
been required to pay by reason of the untrue or alleged untrue statements or the
omissions or alleged omissions to state a material fact. No person guilty of

                                       20

<PAGE>

fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of the immediately preceding
paragraph (e), each person, if any, who controls the Initial Purchaser within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall
have the same rights to contribution as the Initial Purchaser, and each director
of the Company, each officer of the Company and each person, if any, who
controls the Company within the meaning of Section 15 of the Act or Section 20
of the Exchange Act, shall have the same rights to contribution as the Company.

        9. Termination. The Initial Purchaser may terminate this Agreement at
 any time on or prior to the Closing Date by written notice to the Company if
 any of the following has occurred:

        (a) since the date hereof, any Material Adverse Effect or development
 involving or reasonably expected to result in a prospective Material Adverse
 Effect that could, in the Initial Purchaser's reasonable judgment, be expected
 to (i) make it impracticable or inadvisable to proceed with the offering or
 delivery of the Notes on the terms and in the manner contemplated in the Final
 Offering Circular, or (ii) materially impair the investment quality of any of
 the Notes;

        (b) the failure of the Company to satisfy the conditions contained in
 Section 7(a) hereof on or prior to the Closing Date;

        (c) any outbreak or escalation of hostilities or other national or
 international calamity or crisis, including acts of terrorism, or material
 adverse change or disruption in economic conditions in, or in the financial
 markets of, the United States (it being understood that any such change or
 disruption shall be relative to such conditions and markets as in effect on the
 date hereof), if the effect of such outbreak, escalation, calamity, crisis, act
 or material adverse change in the economic conditions in, or in the financial
 markets of, the United States could be reasonably expected to make it, in the
 Initial Purchaser's sole judgment, impracticable or inadvisable to market or
 proceed with the offering or delivery of the Notes on the terms and in the
 manner contemplated in the Final Offering Circular or to enforce contracts for
 the sale of any of the Notes;

        (d) the suspension or limitation of trading generally in securities on
 the New York Stock Exchange, the American Stock Exchange or the NASDAQ National
 Market or any setting of limitations on prices for securities on any such
 exchange or NASDAQ National Market;

        (e) the enactment, publication, decree or other promulgation after the
 date hereof of any Applicable Law that in the Initial Purchaser's counsel's
 reasonable opinion materially and adversely affects, or could be reasonably
 expected to materially and adversely affect, the properties, business,
 prospects, operations, earnings, assets, liabilities or condition (financial or
 otherwise) of the Company and any future Subsidiaries of the Company, taken as
 a whole;

        (f) any securities of the Company shall have been downgraded or
placed on any "watch list" for possible downgrading by any "nationally
recognized statistical rating organization," as such term is defined for
purposes of Rule 436(g)(2) under the Act; or

        (g) the declaration of a banking moratorium by any Governmental
Authority; or the taking of any action by any Governmental Authority after the
date hereof in respect of its monetary or fiscal affairs that in the Initial
Purchaser's opinion could reasonably be expected to have a material adverse
effect on the financial markets in the United States or elsewhere.

        10. Survival of Representations and Indemnities. The representations and
warranties, covenants, indemnities and contribution and expense reimbursement
provisions and other agreements,

                                       21

<PAGE>

representations and warranties of the Company set forth in or made pursuant to
this Agreement shall remain operative and in full force and effect, and will
survive, regardless of (i) any investigation, or statement as to the results
thereof, made by or on behalf of the Initial Purchaser, (ii) acceptance of the
Notes, and payment for them hereunder, and (iii) any termination of this
Agreement.

        11. Default by the Initial Purchaser. If the Initial Purchaser shall
breach its obligations to purchase the Notes that it has agreed to purchase
hereunder on the Closing Date and arrangements satisfactory to the Company for
the purchase of such Notes are not made within 36 hours after such default, this
Agreement shall terminate with respect to such Initial Purchaser without
liability on the part of the Company. Nothing herein shall relieve the Initial
Purchaser from liability for its default.

        12. Information Supplied by the Initial Purchaser. The statements set
forth in the first and second sentences of the third paragraph and the second
sentence of the tenth paragraph under the heading "Plan of Distribution" in the
Offering Circular (to the extent such statements relate to the Initial
Purchaser) constitute the only information furnished by the Initial Purchaser to
the Company or its Subsidiaries for the purposes of Sections 2(a) and 9 hereof.

        13. Miscellaneous.

        (a) Notices given pursuant to any provision of this Agreement shall be
addressed as follows: (i) if to the Company, to: American Rock Salt Company LLC,
3846 Retsof Road, Retsof, New York 14539, Attention: Chief Financial Officer,
with a copy to: Harris Beach LLP, 99 Garnsey Road, Pittsford, New York 14534,
Attention: Christopher D. Jagel, Esq., and (ii) if to the Initial Purchaser, to:
Jefferies & Company, Inc., 520 Madison Avenue, 12th Floor, New York, NY 10022,
Attention: Lloyd H. Feller, Esq., with a copy to: Mayer, Brown, Rowe & Maw LLP,
1675 Broadway, New York, New York 10019-5820, Attention: Ronald S. Brody, Esq.,
(or in any case to such other address as the person to be notified may have
requested in writing).

        (b) This Agreement has been and is made solely for the benefit of and
shall be binding upon the Company, the Initial Purchaser and, to the extent
provided in Section 8 hereof, the controlling persons, officers, directors,
partners, employees, representatives and agents referred to in Section 8, and
their respective heirs, executors, administrators, successors and assigns, all
as and to the extent provided in this Agreement, and no other person shall
acquire or have any right under or by virtue of this Agreement. The term
"successors and assigns" shall not include a purchaser of any of the Notes from
the Initial Purchaser merely because of such purchase. Notwithstanding the
foregoing, it is expressly understood and agreed that each purchaser who
purchases Notes from the Initial Purchaser is intended to be a beneficiary of
the Company's covenants contained in the Registration Rights Agreement to the
same extent as if the Notes were sold and those covenants were made directly to
such purchaser by the Company, and each such purchaser shall have the right to
take action against the Company to enforce, and obtain damages for any breach
of, those covenants.

        (c) THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND
CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED WHOLLY THEREIN, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

        (d) THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY (I) SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS SITTING IN THE
BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN ANY SUIT OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE

                                       22

<PAGE>

TRANSACTIONS CONTEMPLATED HEREBY; AND (II) WAIVES (A) ITS RIGHT TO A TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE
TRANSACTIONS CONTEMPLATED HEREBY, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE INITIAL PURCHASER AND
FOR ANY COUNTERCLAIM RELATED TO ANY OF THE FOREGOING AND (B) ANY OBJECTION WHICH
IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

        (e) This Agreement may be signed in various counterparts, which together
shall constitute one and the same instrument.

        (f) The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

        (g) If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

        (h) This Agreement may be amended, modified or supplemented, and waivers
or consents to departures from the provisions hereof may be given, provided that
the same are in writing and signed by all of the signatories hereto.

                  [Remainder of page intentionally left blank]

                                       23

<PAGE>

        Please confirm that the foregoing correctly sets forth the agreement
between the Company and the Initial Purchaser.

                                             Very truly yours,

                                             AMERICAN ROCK SALT COMPANY LLC

                                             By:  /s/ Neil L. Cohen
                                                 ------------------------
                                                 Name:  Neil L. Cohen
                                                 Title: Vice Chairman

Accepted and Agreed to:
JEFFERIES & COMPANY, INC.

By: /s/ Mark Q. Davis

   -------------------------
   Name:  Mark Q. Davis
   Title: Managing Director

                                                              Purchase Agreement

<PAGE>

                                                                       EXHIBIT A

                               FORM OF OPINIONS OF
                                HARRIS BEACH LLP

        Set forth below are the proposed opinions to be included in the proposed
form of opinion of Harris Beach LLP. This Exhibit A will be replaced with the
actual form of opinion and it is our intent to negotiate the form of such
opinion in its entirety (including the assumptions, qualifications and
limitations to be contained therein).

        (i) The Company is duly formed, validly existing and in good standing
under the laws of the State of New York.

        (ii) The Company has all requisite power and authority to carry on its
business and to own, lease and operate its properties and assets described in
the Final Offering Circular and to execute, deliver and perform its obligations
under the Subject Documents and to consummate the transactions contemplated
thereby.

        (iii) The Company is duly qualified or licensed to do business and is in
good standing as a foreign corporation, as the case may be, authorized to do
business in each jurisdiction in which the nature of such business or the
ownership or leasing of such properties requires such qualification, except
where the failure to be so qualified could not, singly or in the aggregate,
reasonably be excepted to have a Material Adverse Effect.

        (iv) The authorized, issued and outstanding Capital Stock of the Company
is as set forth in the Final Offering Circular under the caption
"Capitalization." All of the outstanding Capital Stock of the Company has been
duly authorized and validly issued, is fully paid and non-assessable and was not
issued in violation of any preemptive or similar rights.

        (v) The Notes are in the form contemplated by the Indenture. The
execution, delivery and performance of the Notes have been duly and validly
authorized by the Company, and when executed and delivered in accordance with
the terms of the Purchase Agreement and the Indenture (assuming the due
authorization, execution and delivery of the Indenture by the Trustee and due
authentication and delivery of the Notes by the Trustee in accordance with the
Indenture), will be the valid and legally binding obligations of the Company,
entitled to the benefits of the Indenture, the Collateral Agreements and the
Registration Rights Agreement, and enforceable against the Company in accordance
with their terms.

        (vi) The execution, delivery and performance of the Exchange Notes and
the Private Exchange Notes have been duly and validly authorized by the Company,
and when executed and delivered by the Company in accordance with the terms of
the Registration Rights Agreement and the Indenture (assuming the due
authorization, execution and delivery of the Registration Rights Agreement and
the Indenture by the Trustee and due authentication and delivery of the Exchange
Notes and the Private Exchange Notes by the Trustee in accordance with the
Indenture), will be the valid and legally binding obligations of the Company,
entitled to the benefits of the Indenture, the Collateral Agreements and the
Registration Rights Agreement, and enforceable against the Company in accordance
with their terms.

        (vii) The Company has all requisite power and authority to execute,
deliver and perform its obligations under the Registration Rights Agreement. The
execution, delivery and performance of the Registration Rights Agreement has
been duly and validly authorized by the Company. The Registration

<PAGE>

Rights Agreement, when executed and delivered by the Company, will constitute a
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms.

        (viii) The Company has all requisite power and authority to execute,
deliver and perform its obligations under the Purchase Agreement and to
consummate the transactions contemplated thereby. The execution, delivery and
performance of the Purchase Agreement and the consummation of the transactions
contemplated thereby by the Company has been duly and validly authorized by the
Company. The Purchase Agreement has been duly and validly executed and delivered
by the Company.

        (ix) The Indenture is in sufficient form for qualification under the
TIA. Each of the Indenture and the Collateral Agreements has been duly and
validly authorized by the Company. Each of the Indenture and the Collateral
Agreements, when executed and delivered by the Company, will constitute a legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms.

        (x) When executed and delivered, the Subject Documents will conform in
all material respects to the descriptions thereof in the Final Offering
Circular.

        (xi) To the best of our knowledge, except as disclosed in the Final
Offering Circular, there are no Proceedings pending or threatened that either
(i) seek to restrain, enjoin, prevent the consummation of, or otherwise
challenge any of the Subject Documents or any of the transactions contemplated
therein, or (ii) could, singly or in the aggregate, reasonably be expected to
have a Material Adverse Effect. To the best of our knowledge, the Company is not
subject to any judgment, order, decree, rule or regulation of any Governmental
Authority that could, singly or in the aggregate, reasonably be expected to have
a Material Adverse Effect.

        (xii) The Company is not in violation of its Charter Documents. The
Company is not (i) in violation of any Applicable Law of any Governmental
Authority, or (ii) to the best of our knowledge, in breach of or default under
any Applicable Agreements, other than as disclosed in the Final Offering
Circular or breaches or defaults that could not, singly or in the aggregate,
reasonably be expected to have a Material Adverse Effect. There exists no
condition that, with the passage of time or otherwise, would (a) constitute a
violation of such Charter Documents or Applicable Laws or (b) constitute a
breach of or default under any Applicable Agreement or (c) result in the
imposition of any penalty or the acceleration of any indebtedness, other than
breaches, penalties or defaults that could not, singly or in the aggregate,
reasonably be expected to have a Material Adverse Effect. All Applicable
Agreements are in full force and effect and are legal, valid and binding
obligations, and no default has occurred or is continuing thereunder, other than
such defaults that could not, singly or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

        (xiii) No consent, approval, authorization or order of any Governmental
Authority, or third party is required for the issuance and sale by the Company
of the Notes to the Initial Purchaser, the execution, delivery or performance by
the Company of any Subject Document to which it is a party or the consummation
by the Company of the other transactions contemplated by the Purchase Agreement,
except such as have been obtained and such as may be required under state
securities or "Blue Sky" laws in connection with the purchase and resale of the
Notes by the Initial Purchaser.

        (xiv) It is not necessary in connection with the offer, sale and
delivery of the Notes to the Initial Purchaser and to each Subsequent Purchaser
in the manner contemplated by the Purchase Agreement and the Final Offering
Circular to register the Notes under the Act or to qualify the Indenture under
the TIA.

<PAGE>

        (xviii) Neither the issuance and sale by the Company of the Notes as
contemplated by the Purchase Agreement nor the application by the Company of the
proceeds therefrom violates Regulation T, U or X of the Board of Governors of
the Federal Reserve System.

        (xv) Neither the execution, delivery or performance by the Company of
the Subject Documents to which it is a party nor the consummation of any
transactions contemplated therein will conflict with, violate, constitute a
breach of or a default (with the passage of time or otherwise) under, require
the consent of any person (other than consents already obtained) under, result
in the imposition of a Lien on any assets of the Company (except pursuant to the
Subject Documents or the Credit Agreement), or result in an acceleration of
indebtedness under or pursuant to (i) the Charter Documents of the Company, (ii)
any Applicable Agreement, other than such breaches, violations or defaults that
could not, singly or in the aggregate, reasonably be expected to have a Material
Adverse Effect, or (iii) any Applicable Law. After consummation of the Offering
and transactions contemplated in the Subject Documents, no Default or Event of
Default will exist.

        (xvi) The Company is not an open-end investment company, unit investment
trust or face-amount certificate company that is or is required to be registered
under Section 8 of the Investment Company Act; and the Company is not and, after
giving effect to the offering and sale of the Notes and the application of the
proceeds therefrom as described in the Final Offering Circular, will not be an
"investment company" (as defined in the Investment Company Act) or a subsidiary
thereof.

        (xvii) No registration under the Act of the Notes is required in
connection with the issuance and sale of the Notes to the Initial Purchaser as
contemplated by the Purchase Agreement and the Final Offering Circular or in
connection with the initial resale of the Notes by the Initial Purchaser in
accordance with Section 6 of the Purchase Agreement, and, prior to the
commencement of the Exchange Offer or the effectiveness of the Shelf
Registration Statement, the Indenture is not required to be qualified under the
TIA, in each case assuming (i) (A) that the purchasers who buy the Notes in the
initial resale thereof are qualified institutional buyers as defined in Rule
144A promulgated under the Act, (B) that the purchasers who buy the Notes in the
initial resale thereof are institutional "accredited investors" as defined in
Rule 501(a)(1), (2), (3) or (7) under the Act or (C) that the offer or sale of
the Notes is made in an offshore transaction as defined in Regulation S, (ii)
the accuracy of the Initial Purchaser's representations in Section 6 of the
Purchase Agreement and those of the Company contained in the Purchase Agreement
regarding the absence of a general solicitation in connection with the sale of
the Notes to the Initial Purchaser and the initial resale thereof and (iii) the
due performance by the Initial Purchaser of the agreements set forth in Section
6 of the Purchase Agreement.

        (xviii) (A)     The Security Agreement creates a valid and enforceable
                        security interest in favor of the Collateral Agent for
                        the benefit of the Secured Parties in those types of
                        Collateral (as defined in the Security Agreement) in
                        which a security interest may be created under Article 9
                        of the Uniform Commercial Code as in effect in the State
                        of New York (the "New York UCC") (such Collateral, the
                        "Article 9 Collateral").

                (B)     The financing  statements attached hereto as Annex I
                        naming the Company as debtor and the Collateral Agent as
                        secured party to be filed in the filing offices in the
                        States identified in Schedule I hereto are in
                        appropriate form for filing and, when duly filed in such
                        filing offices identified in Schedule I hereto, will
                        result in the perfection of all security interests in
                        all Article 9 Collateral which can be perfected under
                        the Uniform Commercial Code as in effect in such State,
                        by the filing of a financing statement in such State. No
                        further action will be required in order to perfect such
                        security interests and to preserve, protect and continue
                        such

<PAGE>

                        perfection, except for the filing of periodic
                        continuation statements with respect to such financing
                        statements. To our knowledge, no mortgage, recording,
                        registration, stamp or other similar tax or fee will be
                        due upon the execution, delivery, recordation, filing or
                        performance, as the case may be, of any financing
                        statements referred to in this paragraph (xviii)(B),
                        except nominal filing fees.

                (C)     Upon the execution and delivery of each Deposit Account
                        Agreement (as defined in the Security Agreement) by each
                        Subject Person that maintains a deposit account with a
                        depositary, the Control Collateral Sub-Agent and such
                        depositary, the Control Collateral Sub-Agent for the
                        benefit of the Secured Parties will have "control" (as
                        defined in Section 9-104(a) of the New York UCC) over
                        each deposit account listed in such Deposit Account
                        Agreement and all cash, checks, drafts, notes, bills of
                        exchange, money orders and other like instruments held
                        therein. No recordation or filing need be made, and no
                        other action need be taken, in order to perfect or
                        maintain the perfection of the Control Collateral
                        Sub-Agent's security interest in such deposit accounts
                        or any cash, checks, drafts, notes, bills of exchange,
                        money orders or other like instruments held therein.

        (xix) [additional opinions related to mortgage previously provided.]

        We have participated in conferences with officers of the Company,
representatives of the independent certified public accountants of the Company,
and representatives of the Initial Purchaser and its counsel, at which
conferences the contents of the Final Offering Circular and related matters were
discussed and, although we have not independently verified and are not passing
upon and assume no responsibility for the accuracy, completeness or fairness of
the statements contained in the Final Offering Circular (except as set forth in
paragraph (xi) above), on the basis of the foregoing, nothing has come to our
attention that causes us to believe that the Final Offering Circular as of its
date contained, or on the Closing Date contains, an untrue statement of a
material fact or omitted or omits to state a material fact necessary to make the
statements contained therein, in the light of the circumstances under which they
were made, not misleading (it being understood that we express no view with
respect to the financial statements and notes thereto or other financial data
included in the Final Offering Circular).

<PAGE>

Definitions:  These would be worked into the preamble of the opinion.

        Generally: Capitalized terms used herein but not defined shall have the
meanings given to them in the Purchase Agreement.

        Collateral Agreements: The Security Agreement, the Mortgage and the

----------.

        Subject Documents:  All of the Documents.<PAGE>

                                                                    Exhibit 10.8

                                                                  EXECUTION COPY

                          PLEDGE AND SECURITY AGREEMENT

        This PLEDGE AND SECURITY AGREEMENT (as amended, supplemented, amended
and restated or otherwise modified from time to time, this "Pledge and Security
Agreement"), dated as of March 17, 2004, is made by American Rock Salt Company
LLC, a New York limited liability company (the "Issuer") and each Domestic
Restricted Subsidiary (as defined in the Indenture) of the Issuer which may from
time to time hereafter become a party hereto pursuant to Section 7.5 (each,
individually, an "Additional Grantor", and collectively, the "Additional
Grantors", and together with the Issuer, each such Domestic Restricted
Subsidiary, each, individually, a "Grantor", and collectively, the "Grantors"),
in favor of U.S. Bank National Association, as collateral agent (together with
its successor(s) thereto, in such capacity, the "Collateral Agent") for each of
the Secured Parties.

                              W I T N E S S E T H :

        WHEREAS, the Issuer, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of March 17, 2004 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Indenture"), and in connection therewith, the Issuer has issued (the "Notes
Issuance") its Senior Secured Notes due 2014 (and, if applicable, its Senior
Secured Notes due 2014, Series B issued in exchange therefor) (collectively, the
"Notes");

        WHEREAS, the Grantors have entered into that certain Credit Agreement,
dated as of March 17, 2004 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Loan Agreement") among the financial
institutions party thereto (the "Senior Lenders") as lenders and Manufacturers
and Traders Trust Company, as the senior collateral agent (the "Agent"),
pursuant to which the Senior Lenders have agreed to make certain loans and other
financial accommodations to the Grantors from time to time, which Loan Agreement
is referenced as the "Credit Agreement" under the Indenture, and the other
Grantors hereto have each entered into various agreements granting Liens to the
Agent for the benefit of the Senior Lenders as well;

        WHEREAS, as a condition precedent to the Notes Issuance, each Grantor is
required to execute and deliver this Pledge and Security Agreement;

        WHEREAS, each Grantor has duly authorized the execution, delivery and
performance of this Pledge and Security Agreement; and

        WHEREAS, it is in the best interests of each Grantor to execute this
Pledge and Security Agreement inasmuch as such Grantor will derive substantial
direct and indirect benefits from proceeds of the Notes issued by the Issuer;

        NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the Holders
to acquire the Notes and maintain the Indebtedness evidenced thereby, each
Grantor agrees, for the benefit of each Secured Party, as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

        Section 1.1. Certain Terms. The following terms (whether or not
underscored) when used in this Pledge and Security Agreement, including its
preamble and recitals, shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

        "Additional Grantor" and "Additional Grantors" are defined in the
preamble.

        "Agent" is defined in the second recital.

        "Collateral" is defined in Section 2.1.

        "Collateral Agent" is defined in the preamble.

        "Computer Hardware and Software Collateral" means:

                (a) all computer and other electronic data processing hardware,
        integrated computer systems, central processing units, memory units,
        display terminals, printers, features, computer elements, card readers,
        tape drives, hard and soft disk drives, cables, electrical supply
        hardware, generators, power equalizers, accessories and all peripheral
        devices and other related computer hardware;

                (b) all software programs (including both source code, object
        code and all related applications and data files), whether now owned,
        licensed or leased or hereafter acquired by any Grantor, designed for
        use on the computers and electronic data processing hardware described
        in clause (a) above;

                (c) all firmware associated therewith;

                (d) all documentation (including flow charts, logic diagrams,
        manuals, guides and specifications) with respect to such hardware,
        software and firmware described in the preceding clauses (a) through
        (c); and

                (e) all rights with respect to all of the foregoing, including
        any and all copyrights, licenses, options, warranties, service
        contracts, program services, test rights, maintenance rights, support
        rights, improvement rights, renewal rights and indemnifications and any
        substitutions, replacements, additions or model conversions of any of
        the foregoing.

        "Control Agreement" means an agreement in form and substance
satisfactory to the Collateral Agent which provides for the Collateral Agent to
have "control" (as defined in Section 8-106 of the U.C.C., as such term relates
to investment property (other than certificated Capital Stock or commodity
contracts), or as used in Section 9-106 of the U.C.C., as such term relates to
commodity contracts).

                                        2

<PAGE>

        "Copyright Collateral" means all copyrights (including all copyrights
for semiconductor chip product mask works) of each Grantor, whether statutory or
common law, registered or unregistered, now or hereafter in force throughout the
world including all of such Grantor's right, title and interest in and to all
copyrights registered in the United States Copyright Office or anywhere else in
the world and also including the copyrights referred to in Item A of Schedule V
attached hereto, and all applications for registration thereof, whether pending
or in preparation, all copyright licenses, including each copyright license
referred to in Item B of Schedule V attached hereto, the right to sue for past,
present and future infringements of any thereof, all rights corresponding
thereto throughout the world, all extensions and renewals of any thereof and all
proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages and proceeds of suit.

        "Distributions" means all non-cash dividends paid on Capital Stock,
liquidating dividends paid on Capital Stock, shares of Capital Stock resulting
from (or in connection with the exercise of) stock splits, reclassifications,
warrants, options, non-cash dividends, mergers, consolidations, and all other
distributions (whether similar or dissimilar to the foregoing) on or with
respect to any Capital Stock constituting Collateral, but shall not include
Dividends.

        "Dividends" means cash dividends and cash distributions with respect to
any Capital Stock constituting Collateral that are not a liquidating dividend.

        "Grantor" and "Grantors" are defined in the preamble.

        "Indenture" is defined in the first recital.

        "Intellectual Property Collateral" means, collectively, the Computer
Hardware and Software Collateral, the Copyright Collateral, the Patent
Collateral, the Trademark Collateral and the Trade Secrets Collateral.

        "Issuer" is defined in the preamble.

        "Loan Agreement" is defined in the second recital.

        "Master Deposit Account" means a deposit account of the Issuer to be
established and maintained with the Collateral Agent upon the occurrence of an
Event of Default.

        "Material Adverse Effect" means a material adverse effect on

                (a) the business, operating results or condition (financial or
        otherwise) of the Issuer and its Subsidiaries, taken as a whole;

                (b) the ability of any Grantor to perform its obligations under
        any of the Related Documents, including the payment of any principal,
        interest, fees, expenses or other amounts under or in respect of any of
        the Related Documents; or

                (c) the validity or enforceability of any of the Related
        Documents or any of the rights or remedies of the Collateral Agent or
        any other Secured Party under any of the Related Documents.

                                        3

<PAGE>

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

        "Notes" is defined in the first recital.

        "Notes Issuance" is defined in the first recital.

        "Patent Collateral" means:

                (a) all letters patent and applications for letters patent,
        including all patent applications in preparation for filing and
        including each patent and patent application referred to in Item A of
        Schedule III attached hereto;

                (b) all reissues, divisions, continuations,
        continuations-in-part, extensions, renewals and reexaminations of any of
        the items described in clause (a);

                (c) all patent licenses, including each patent license referred
        to in Item B of Schedule III attached hereto; and

                (d) all proceeds of, and rights associated with, the foregoing
        (including license royalties and proceeds of infringement suits), the
        right to sue third parties for past, present or future infringements of
        any patent or patent application, including any patent or patent
        application referred to in Item A of Schedule III attached hereto, and
        for breach or enforcement of any patent license, including any patent
        license referred to in Item B of Schedule III attached hereto, and all
        rights corresponding thereto throughout the world.

        "Pledge and Security Agreement" is defined in the preamble.

        "Receivables" is defined in clause (c) of Section 2.1.

        "Related Contracts" is defined in clause (c) of Section 2.1.

        "Related Documents" means the Indenture, the Notes, this Pledge and
Security Agreement, the Trademark Security Agreement, the Patent Security
Agreement, if any, the Copyright Security Agreement, if any, and the Mortgages.

        "SEC" means the Securities and Exchange Commission.

        "Secured Obligations" is defined in Section 2.2.

        "Secured Parties" means the Collateral Agent, the Trustee and the
Holders.

        "Securities Act" is defined in Section 6.2.

        "Senior Lenders" is defined in the second recital.

        "Sinking Fund Collateral Account" means the account established with the
Agent pursuant to the Escrow and Security Agreement made by Issuer in favor of
the Agent into which all sinking fund payments required to be made pursuant to
the terms of the Credit Agreement

                                        4

<PAGE>

must be deposited and in which account the Agent and Senior Lenders have a
first-priority security interest.

        "Subsidiary" with respect to any Person, means (1) any corporation of
which the outstanding Capital Stock having at least a majority of the votes
entitled to be cast in the election of directors under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person; or (2) any
other Person of which at least a majority of the voting interest under ordinary
circumstances is at the time, directly or indirectly, owned by such Person.

        "Trademark Collateral" means:

                (a) all trademarks, trade names, corporate names, company names,
        business names, fictitious business names, trade styles, service marks,
        certification marks, collective marks, logos, other source of business
        identifiers, prints and labels on which any of the foregoing have
        appeared or appear, designs and general intangibles of a like nature
        (all of the foregoing items in this clause (a) being collectively called
        a "Trademark"), now existing anywhere in the world or hereafter adopted
        or acquired, whether currently in use or not, all registrations and
        recordings thereof and all applications in connection therewith, whether
        pending or in preparation for filing, including registrations,
        recordings and applications in the United States Patent and Trademark
        Office or in any office or agency of the United States of America or any
        State thereof or any foreign country, including those referred to in
        Item A of Schedule IV attached hereto;

                (b) all Trademark licenses, including each Trademark license
        referred to in Item B of Schedule IV attached hereto;

                (c) all reissues, extensions or renewals of any of the items
        described in clause (a) and (b);

                (d) all of the goodwill of the business connected with the use
        of, and symbolized by the items described in, clauses (a) and (b); and

                (e) all proceeds of, and rights associated with, the foregoing,
        including any claim by any Grantor against third parties for past,
        present or future infringement or dilution of any Trademark, Trademark
        registration or Trademark license, including any Trademark, Trademark
        registration or Trademark license referred to in Item A and Item B of
        Schedule IV attached hereto, or for any injury to the goodwill
        associated with the use of any such Trademark or for breach or
        enforcement of any Trademark license.

        "Trade Secrets Collateral" means all common law and statutory trade
secrets and all other confidential or proprietary or useful information and all
know-how obtained by or used in or contemplated at any time for use in the
business of any Grantor (all of the foregoing being collectively called a "Trade
Secret"), whether or not such Trade Secret has been reduced to a writing or
other tangible form, including all documents and things embodying, incorporating
or referring in any way to such Trade Secret, all Trade Secret licenses,
including each Trade Secret license referred to in Schedule VI attached hereto,
and including the right to sue for and to enjoin

                                        5

<PAGE>

and to collect damages for the actual or threatened misappropriation of any
Trade Secret and for the breach or enforcement of any such Trade Secret license.

        "U.C.C." means the Uniform Commercial Code as in effect from time to
time in the State of New York; provided, that if, with respect to any U.C.C.
financing statement or by reason of any provisions of law, the perfection or the
effect of perfection or non-perfection of the security interests granted to the
Collateral Agent pursuant to the applicable Related Document is governed by the
Uniform Commercial Code as in effect in a jurisdiction of the United States
other than New York, then "U.C.C." means the Uniform Commercial Code as in
effect from time to time in such other jurisdiction for purposes of the
provisions of each Related Document and any U.C.C. financing statement relating
to such perfection or effect of perfection or non-perfection.

        Section 1.2. Indenture Definitions. Unless otherwise defined herein or
the context otherwise requires, terms used in this Pledge and Security
Agreement, including its preamble and recitals, have the meanings provided in
the Indenture.

        Section 1.3. U.C.C. Definitions. Unless otherwise defined herein or in
the Indenture or the context otherwise requires and whether or not capitalized,
terms for which meanings are provided in Article 8 or Article 9 of the U.C.C.
are used in this Pledge and Security Agreement, including its preamble and
recitals, with such meanings.

                                   ARTICLE II

                                SECURITY INTEREST

        Section 2.1. Grant of Security Interest. Each Grantor hereby assigns,
pledges, hypothecates, charges, mortgages, delivers, and transfers to the
Collateral Agent for its benefit and the ratable benefit of each of the Secured
Parties, and hereby grants to the Collateral Agent for its benefit and the
ratable benefit of each of the Secured Parties, a continuing security interest
in all of the following property, whether tangible or intangible, whether now or
hereafter existing, owned or acquired by such Grantor, and wherever located
(collectively the "Collateral"):

                (a) (i) all investment property in which such Grantor has an
        interest (including the Capital Stock of each issuer of such Capital
        Stock described in Schedule I hereto) and (ii) all other Capital Stock
        which are interests in limited liability companies or partnerships in
        which such Grantor has an interest (including the Capital Stock of each
        issuer of such Capital Stock described in Schedule I hereto), in each
        case together with Dividends and Distributions payable in respect of the
        Collateral described in the foregoing clauses (a)(i) and (a)(ii), and;

                (b) all goods, including all equipment and inventory;

        and all accessions thereto, products thereof and documents therefor (any
        and all such inventory, materials, goods, accessions, products and
        documents being the "Inventory");

                                        6

<PAGE>

                (c) all accounts, contracts, contract rights, chattel paper,
        documents, instruments, promissory notes and general intangibles
        (including tax refunds and payment intangibles), whether or not arising
        out of or in connection with the sale or lease of goods or the rendering
        of services, and all rights now or hereafter existing in and to all
        security agreements, guaranties, leases and other contracts securing or
        otherwise relating to any such accounts, contracts, contract rights,
        chattel paper, documents, instruments, promissory notes, and general
        intangibles and payment intangibles (all of the foregoing being the
        "Receivables", and any and all such security agreements, guaranties,
        leases and other contracts being the "Related Contracts");

                (d) all deposit accounts (including the Master Deposit Account)
        and all cash, checks, drafts, notes, bills of exchange, money orders and
        other like instruments, if any, now owned or hereafter acquired, held
        therein (or in sub-accounts thereof) and all certificates and
        instruments, if any, from time to time representing or evidencing such
        investments, and all interest, earnings and proceeds in respect thereof;

                (e) all Intellectual Property Collateral;

                (f) all letter of credit rights;

                (g) all commercial tort claims in which such Grantor has rights
        (including as a plaintiff);

                (h) all books, records, writings, data bases, information and
        other property relating to, used or useful in connection with,
        evidencing, embodying, incorporating or referring to, any of the
        foregoing in this Section;

                (i) all other property and rights of every kind and description
        and interests therein; and

                (j) all products, offspring, rents, issues, profits, returns,
        income, supporting obligations and proceeds of and from any and all of
        the foregoing Collateral (including proceeds which constitute property
        of the types described in clauses (a) through (i), and, to the extent
        not otherwise included, all payments under insurance (whether or not the
        Collateral Agent is the loss payee thereof), or any indemnity, warranty
        or guaranty, payable by reason of loss or damage to or otherwise with
        respect to any of the foregoing Collateral).

Notwithstanding the foregoing, "Collateral" shall not include (a) any general
intangibles or other rights arising under any contracts or licenses (other than,
in each of the foregoing cases, any right to receive payments) or other
documents described in such clause as to which the grant of a security interest
would constitute a violation of a valid and enforceable restriction in favor of
a third party on such grant, unless and until any required consents shall have
been obtained; (b) investment property consisting of Capital Stock of an issuer
that is a Foreign Subsidiary of such Grantor, in excess of 65% of the total
combined voting power of all Capital Stock of each such Foreign Subsidiary; (c)
the Sinking Fund Collateral Account and (d) any Capital Stock and other
securities of a Subsidiary to the extent that the pledge of such Capital Stock
and other securities results in the Issuer being required to file separate
financial statements of each Subsidiary with

                                        7

<PAGE>

the SEC, but only to the extent necessary to not be subject to such requirement.
Each Grantor agrees to use reasonable efforts to obtain any such required
consent in respect of the general intangibles or other rights referred to above
in clause (a).

        Section 2.2. Security for Obligations. This Pledge and Security
Agreement secures the payment of all Obligations of the Issuer now or hereafter
existing under the Indenture, the Notes and each other Related Document to which
the Issuer is or may become a party, whether for principal, interest, costs,
fees, expenses or otherwise, and all Obligations of each Grantor now or
hereafter existing under its Subsidiary Guarantee, this Pledge and Security
Agreement and each other Related Document to which such Grantor is or may become
a party (all such obligations of such Grantor being the "Secured Obligations").

        Section 2.3. Delivery of Certificated Securities and Intercompany Notes.
All Collateral comprised of Intercompany Notes and certificated Capital Stock
shall be delivered to and held by or on behalf of (and, in the case of the
Intercompany Notes, endorsed to the order of) the Collateral Agent pursuant
hereto, shall be in suitable form for transfer by delivery, and shall be
accompanied by all necessary instruments of transfer or assignment, duly
executed in blank.

        Section 2.4. Dividends on Securities and Payments on Intercompany Notes.
In the event that any Dividend is to be paid on any Capital Security that
constitutes Collateral or any payment of principal or interest is to be made on
any Intercompany Note at a time when no Default of the nature referred to in
clause (7) of Section 6.01 of the Indenture or Event of Default has occurred and
is continuing or would result there from such Dividend or payment may be paid
directly to the applicable Grantor. If any such Default or Event of Default has
occurred and is continuing, then any such Dividend or payment shall be paid
directly to the Collateral Agent.

        Section 2.5. Continuing Security Interest; Transfer of Notes. This
Pledge and Security Agreement shall create a continuing security interest in the
Collateral and shall

                (a) remain in full force and effect until payment in full in
        cash of all Secured Obligations,

                (b) be binding upon each Grantor, its successors, transferees
        and assigns, and

                (c) inure, together with the rights and remedies of the
        Collateral Agent hereunder, to the benefit of the Collateral Agent and
        each other Secured Party.

Without limiting the generality of the foregoing clause (c), any Holder may
assign or otherwise transfer (in whole or in part) any Note held by it to any
other Person, and such other Person shall thereupon become vested with all the
rights and benefits in respect thereof granted to such Holder under any Related
Document (including this Pledge and Security Agreement) or otherwise, subject,
however, to any contrary provisions in such assignment or transfer, and to the
provisions of Sections 2.14 and 2.15 of the Indenture. Upon the payment in full
in cash of all Secured Obligations, the security interest granted herein shall
terminate and all rights to the Collateral shall revert to such Grantor. Upon
any such termination, the Collateral Agent will, at such Grantor's sole expense,
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such termination. Upon (i) the sale, transfer or
other disposition of Collateral in accordance with Section 4.16 of the Indenture
or (ii) the

                                        8

<PAGE>

payment in full in cash of all Secured Obligations, the security interests
granted herein shall automatically terminate with respect to (x) such Collateral
(in the case of clause (i)) or (y) all Collateral (in the case of clause (ii)).
Upon any such sale, transfer, disposition or termination, the Collateral Agent
will, at such Grantor's sole expense, deliver to such Grantor, without any
representations, warranties or recourse of any kind whatsoever, all applicable
certificated securities and all applicable Intercompany Notes, together with all
other applicable Collateral held by the Collateral Agent hereunder, and execute
and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination (including such documents as such Grantor
shall reasonably request to remove the notation of the Collateral Agent as
lienholder on any certificate of title for any applicable Motor Vehicle).

        Section 2.6. Grantor Remains Liable. Anything herein to the contrary
notwithstanding

                (a) each Grantor shall remain liable under the contracts and
        agreements included in the Collateral to the extent set forth therein,
        and shall perform all of its duties and obligations under such contracts
        and agreements to the same extent as if this Pledge and Security
        Agreement had not been executed,

                (b) the exercise by the Collateral Agent of any of its rights
        hereunder shall not release any Grantor from any of its duties or
        obligations under any such contracts or agreements included in the
        Collateral, and

                (c) neither the Collateral Agent nor any other Secured Party
        shall have any obligation or liability under any such contracts or
        agreements included in the Collateral by reason of this Pledge and
        Security Agreement, nor shall the Collateral Agent or any other Secured
        Party be obligated to perform any of the obligations or duties of any
        Grantor thereunder or to take any action to collect or enforce any claim
        for payment assigned hereunder.

        Section 2.7. Security Interest Absolute. This Pledge and Security
Agreement shall in all respects be a continuing, absolute, unconditional and
irrevocable grant of security interest, and shall remain in full force and
effect until all of the Security Obligations have been paid in full. All rights
of the Collateral Agent and the security interests granted to the Collateral
Agent (for its benefit and the ratable benefit of each other Secured Party)
hereunder, and all obligations of each Grantor hereunder, shall be absolute and
unconditional and irrevocable, irrespective of

                (a) any lack of validity, legality or enforceability of the
        Indenture, any Note or any other Related Document;

                (b) the failure of any Secured Party

                        (i) to assert any claim or demand or to enforce any
                right or remedy against the Issuer, any other Grantor or any
                other Person under the provisions of the Indenture, any Note,
                any other Related Document or otherwise, or

                        (ii) to exercise any right or remedy against any other
                guarantor of, debtor or obligor with respect to, or collateral
                securing, any Secured Obligations;

                                        9

<PAGE>

                (c) any change in the time, manner or place of payment of, or in
        any other term of, all or any of the Secured Obligations or any other
        extension, compromise or renewal of any Secured Obligations;

                (d) any reduction, limitation, impairment or termination of any
        Secured Obligations for any reason, including any claim of waiver,
        release, surrender, alteration or compromise, and shall not be subject
        to (and each Grantor hereby waives any right to or claim of) any defense
        or setoff, counterclaim, recoupment or termination whatsoever by reason
        of the invalidity, illegality, nongenuineness, irregularity, compromise,
        unenforceability of, or any other event or occurrence affecting, any
        Secured Obligations or otherwise;

                (e) any amendment to, rescission, waiver, or other modification
        of, or any consent to departure from, any of the terms of the Indenture,
        any Note or any other Related Document;

                (f) any addition, exchange, release, surrender or non-perfection
        of any collateral (including the Collateral), or any amendment to or
        waiver or release of or addition to or consent to departure from any
        guaranty, for any of the Secured Obligations; or

                (g) any other circumstances which might otherwise constitute a
        defense available to, or a legal or equitable discharge of, the Issuer,
        any other Grantor, any surety or any guarantor, debtor or obligor.

        Section 2.8. Postponement of Subrogation, etc. Each Grantor hereby
agrees that it will not exercise any rights which it may acquire by reason of
any payment made hereunder, whether by way of subrogation, reimbursement or
otherwise, until the prior payment in full in cash of all Secured Obligations.
Any amount paid to any Grantor on account of any payment made hereunder prior to
the payment in full in cash of all Secured Obligations shall be held in trust
for the benefit of the Secured Parties and shall immediately be paid to the
Secured Parties and credited and applied against the Secured Obligations,
whether matured or unmatured, in accordance with the terms of the Indenture;
provided, however, that if

                (a) such Grantor has made payment to the Secured Parties of all
        or any part of the Secured Obligations, and

                (b) all Secured Obligations have been paid in full in cash,

each Secured Party agrees that, at the requesting Grantor's request and sole
expense, the Secured Parties will execute and deliver to such Grantor
appropriate documents (without recourse and without representation or warranty)
necessary to evidence the transfer by subrogation to such Grantor of an interest
in the Secured Obligations resulting from such payment by such Grantor. In
furtherance of the foregoing, for so long as any Secured Obligations remain
outstanding, each Grantor shall refrain from taking any action or commencing any
proceeding against the Issuer or any other Grantor (or its successors or
assigns, whether in connection with a bankruptcy proceeding or otherwise) to
recover any amounts in respect of payments made under this Pledge and Security
Agreement to any Secured Party.

                                       10

<PAGE>

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

        Section 3.1. Representations and Warranties. Each Grantor represents and
warrants to each Secured Party insofar as the representations and warranties
contained herein are applicable to such Grantor and its properties, as set forth
in this Article III.

        Section 3.2. As to Capital Stock of Subsidiaries. With respect to any
Subsidiary of any Grantor that is

                (a) a corporation, business trust, joint stock company or
        similar Person, all Capital Stock issued by such Subsidiary are duly
        authorized and validly issued, fully paid and non-assessable, and
        represented by a certificate; and

                (b) a partnership or limited liability company, no Capital Stock
        issued by such Subsidiary (i) are dealt in or traded on securities
        exchanges or in securities markets, (ii) expressly provide that such
        Capital Stock are a security governed by Article 8 of the U.C.C. or
        (iii) are held in a securities account.

The percentage of the issued and outstanding Capital Stock of each Subsidiary
pledged by any Grantor hereunder are as set forth in Schedule I hereto.

        Section 3.3. As to Intercompany Notes. In the case of each Intercompany
Note, all of such Intercompany Notes have been duly authorized, executed,
endorsed, issued and delivered, and are the legal, valid and binding obligation
of the issuers thereof, and are not in default.

        Section 3.4. Grantor Name, Location, etc. The jurisdiction in which each
Grantor is located for purposes of Sections 9-301 and 9-307 of the U.C.C. is set
forth in Item A of Schedule II hereto. Set forth in Item B of Schedule II is
each location a secured party would have filed a U.C.C. financing statement to
perfect a security interest in equipment, inventory and general intangibles
owned by each Grantor in the past five years. No Grantor has any trade names
other than those set forth in Item C of Schedule II hereto. During the past five
years preceding the date hereof, no Grantor has been known by any legal name
different from the one set forth on the signature page hereto, nor has such
Grantor been the subject of any merger or other corporate reorganization, except
as set forth in Item D of Schedule II hereto. The name set forth on the
signature page is the true and correct name of such Grantor. Each Grantor's
federal taxpayer identification number is (and, during the four months preceding
the date hereof, such Grantor has not had a federal taxpayer identification
number different from that) set forth in Item E of Schedule II hereto. No
Grantor is a party to any federal contract except as set forth in Item F of
Schedule II hereto. No Grantor maintains any deposit accounts with any Person
except as set forth in Item G of Schedule II hereto.

        Section 3.5. Ownership, No Liens, etc. Such Grantor owns its Collateral
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest created by this Pledge and Security Agreement except as
permitted by the Indenture. No effective financing statement or other instrument
similar in effect covering all or any part of the Collateral is on file in any
recording office, except such as may have been filed in favor of the Collateral
Agent

                                       11

<PAGE>

relating to this Pledge and Security Agreement or as have been filed in
connection with Liens permitted pursuant to Section 4.18 of the Indenture or as
to which a duly executed termination statement relating to such financing
statement or other instrument has been delivered to the Collateral Agent on the
Closing Date.

        Section 3.6. Possession and Control. Each Grantor agrees that it will
maintain exclusive possession of its goods, instruments, promissory notes and
inventory, other than (a) inventory in transit in the ordinary course of
business, (b) inventory which is in the possession or control of a warehouseman,
bailee agent or other Person (other than a Person controlled by or under common
control with such Grantor) that has been notified of the security interest
created in favor of the Secured Parties pursuant to this Pledge and Security
Agreement, and has agreed to hold such inventory subject to the Secured Parties'
Lien and waive any Lien held by it against such inventory and (c) instruments or
promissory notes that have been delivered to the Collateral Agent or the Agent,
as applicable, pursuant to Section 3.7.

        Section 3.7. Negotiable Documents, Instruments and Chattel Paper. Such
Grantor has, contemporaneously herewith, delivered to the Agent, in accordance
with the Intercreditor Agreement, possession of all originals of all negotiable
documents, instruments and chattel paper currently owned or held by such Grantor
(duly endorsed in blank).

        Section 3.8. Intellectual Property Collateral. With respect to any
Intellectual Property Collateral the loss, impairment or infringement of which
could reasonably be expected to have a Material Adverse Effect:

                (a) such Intellectual Property Collateral is subsisting and has
 not been adjudged invalid or unenforceable, in whole or in part;

                (b) such Intellectual Property Collateral is valid and
 enforceable;

                (c) such Grantor has made all necessary filings and recordations
        to protect its interest in such Intellectual Property Collateral (except
        with respect to Intellectual Property Collateral that it is acquiring on
        the date hereof, in which case, such Grantor agrees to promptly (and in
        any event within 15 Business Days of the date hereof) deliver to the
        United States Patent and Trademark Office for filing on proper forms,
        together with the necessary filing fees, all necessary filings and
        recordations to protect its interest in such newly-acquired Intellectual
        Property Collateral), including recordations of all of its interests in
        the Patent Collateral, if any, and Trademark Collateral in the United
        States Patent and Trademark Office and in corresponding offices in
        countries in which the failure to so file and/or record could reasonably
        be expected to have a Material Adverse Effect and its claims to the
        Copyright Collateral, if any, in the United States Copyright Office and
        in corresponding offices in countries in which the failure to so file
        and/or record could reasonably be expected to have a Material Adverse
        Effect;

                (d) such Grantor is the exclusive owner of the entire and
        unencumbered right, title and interest in and to such Intellectual
        Property Collateral and no claim has been made that the use of such
        Intellectual Property Collateral does or may violate the asserted rights
        of any third party; and

                                       12

<PAGE>

                (e) such Grantor has performed and will continue to perform all
        acts and has paid and will continue to pay all required fees and taxes
        to maintain each and every such item of Intellectual Property Collateral
        in full force and effect throughout the world, as applicable.

Such Grantor owns directly or is entitled to use by license or otherwise, all
patents, Trademarks, Trade Secrets, copyrights, mask works, licenses,
technology, know-how, processes and rights with respect to any of the foregoing
used in or necessary for the conduct of such Grantor's business.

        Section 3.9. Validity, etc. This Pledge and Security Agreement creates a
valid continuing security interest in the Collateral securing the payment of the
Secured Obligations, and, subject to the Intercreditor Agreement and Liens of
the type referred to in clause (xiii) of the definition of "Permitted Liens" in
the Indenture:

                (a) in the case of Collateral comprised of certificated
        securities or instruments, upon the delivery of such Collateral to the
        Agent, such security interest will be a valid first priority perfected
        security interest;

                (b) in the case of Collateral comprised of uncertificated
        securities and other investment property (other than certificated
        Securities), upon the Agent obtaining "control" (as defined in Section
        8-106 of the U.C.C., as such term relates to investment property (other
        than certificated securities or commodity contracts), or as used in
        Section 9-106 of the U.C.C., as such term relates to commodity
        contracts) of such Collateral and the filing of the Uniform Commercial
        Code financing statements delivered by the Grantor having an interest in
        such Collateral to the Collateral Agent with respect to such Collateral,
        such security interest will be a valid first priority perfected security
        interest;

                (c) in the case of Collateral comprised of Motor Vehicles, upon
        the recordation or notation of the Collateral Agent's Lien on the
        certificates of title or ownership in respect of such Motor Vehicles and
        the filing of the Uniform Commercial Code financing statements delivered
        by the Grantor having an interest in such Motor Vehicles to the
        Collateral Agent with respect to such Collateral, such security interest
        will be a valid first priority perfected security interest;

                (d) in the case of all other Collateral, upon the filing in the
        jurisdiction of incorporation or formation of the applicable Grantor
        Uniform Commercial Code financing statements delivered by the Grantor to
        the Collateral Agent with respect to such Collateral, such security
        interest will be a valid first priority perfected security interest
        (except to the extent a Uniform Commercial Code financing statement was
        previously filed in connection with Liens permitted pursuant to Section
        4.18 of the Indenture and such financing statement remains effective in
        respect of such Collateral).

Each Grantor agrees to deliver UCC-1 and UCC-3 financing statements to a filing
agent acceptable to the Collateral Agent and make any other filings reasonably
necessary to perfect the security interests contemplated hereby at the sole
expense of such Grantor.

                                       13

<PAGE>

        Section 3.10. Authorization, Approval, etc. Except as have been obtained
or made and are in full force and effect (or otherwise provided for to the
satisfaction of the Agents), no authorization, approval or other action by, and
no notice to or filing with, any governmental authority or regulatory body is
required either

                (a) for the grant by such Grantor of the security interest
        granted hereby, the pledge by such Grantor of any Collateral pursuant
        hereto or for the execution, delivery and performance of this Pledge and
        Security Agreement by such Grantor,

                (b) for the perfection of or the exercise by the Collateral
        Agent of its rights and remedies hereunder, or

                (c) for the exercise by the Collateral Agent of the voting or
        other rights provided for in this Pledge and Security Agreement, or,
        except with respect to any Capital Stock issued by a Subsidiary of such
        Grantor, as may be required in connection with a disposition of such
        Capital Stock by laws affecting the offering and sale of securities
        generally, the remedies in respect of the Collateral pursuant to this
        Pledge and Security Agreement.

                                   ARTICLE IV

                                    COVENANTS

        Section 4.1. Certain Covenants. Each Grantor covenants and agrees that,
so long as any portion of the Secured Obligations shall remain unpaid, such
Grantor will, unless the Trustee shall otherwise consent in writing, perform,
comply with and be bound by the obligations set forth in this Article IV.

        Section 4.2. As to Investment Property and Intercompany Notes; Etc.

        SECTION 4.2.1. Capital Stock of Subsidiaries. No Grantor will allow any
of its Subsidiaries that is

                (a) a corporation, business trust, joint stock company or
        similar Person, to issue uncertificated securities; and

                (b) a partnership or limited liability company, to (i) issue
        Capital Stock that are to be dealt in or traded on securities exchanges
        or in securities markets, (ii) expressly provide in its organic
        documents that its Capital Stock are securities governed by Article 8 of
        the U.C.C., or (iii) place such Subsidiary's Capital Stock in a
        securities account.

        SECTION 4.2.2. Investment Property (other than Certificated Securities).
With respect to any investment property (other than certificated securities) of
such Grantor, such Grantor shall (a) cause a Control Agreement relating to such
investment property to be executed and delivered in favor of the Collateral
Agent and (b) deliver Uniform Commercial Code financing statements which when
filed will result in the Collateral Agent having a first priority perfected
security interest in such investment property.

                                       14

<PAGE>

        SECTION 4.2.3. Stock Powers, etc. Such Grantor agrees that all
certificated securities constituting Collateral delivered by such Grantor
pursuant to this Pledge and Security Agreement will be accompanied by duly
executed undated blank stock powers, or other equivalent instruments of transfer
acceptable to the Collateral Agent. Grantor will, from time to time upon the
request of the Collateral Agent, promptly deliver to the Collateral Agent such
stock powers, instruments, and similar documents, satisfactory in form and
substance to the Collateral Agent, with respect to such Collateral as the
Collateral Agent may reasonably request and will, from time to time upon the
request of the Collateral Agent after the occurrence of any Event of Default,
promptly transfer any securities constituting Collateral into the name of any
nominee designated by the Collateral Agent.

        SECTION 4.2.4. Continuous Pledge. Such Grantor will, at all times, keep
pledged to the Collateral Agent pursuant hereto on a first priority perfected
basis all investment property constituting Collateral, all Dividends and
Distributions with respect thereto, all Intercompany Notes, all interest,
principal and other proceeds received by the Collateral Agent with respect to
the Intercompany Notes, and all other Collateral and other securities,
instruments, proceeds, and rights from time to time received by or distributable
to such Grantor in respect of any of the foregoing Collateral and will not
permit any Subsidiary of such Grantor to issue any securities which shall not
have been immediately duly pledged hereunder on a first priority perfected
basis.

        SECTION 4.2.5. Voting Rights; Dividends, etc. Such Grantor agrees:

                (a) after any Default of the nature referred to in clause (7) of
        Section 6.01 of the Indenture or any Event of Default shall have
        occurred and be continuing, promptly upon receipt of notice thereof by
        such Grantor and without any request therefor by the Collateral Agent,
        to deliver (properly endorsed where required hereby or requested by the
        Collateral Agent) to the Collateral Agent all Dividends, Distributions,
        all interest, all principal, all other cash payments, and all proceeds
        of the Collateral, all of which shall be held by the Collateral Agent as
        additional Collateral for use in accordance with clause (b) of Section
        6.1; and

                (b) after any Event of Default shall have occurred and be
        continuing and the Collateral Agent has notified such Grantor of the
        Collateral Agent's intention to exercise its voting power under this
        Section 4.2.5(b)

                        (i) the Collateral Agent may exercise (to the exclusion
                of such Grantor) the voting power and all other incidental
                rights of ownership with respect to any securities or other
                investment property constituting Collateral and such Grantor
                hereby grants the Collateral Agent an irrevocable proxy,
                exercisable under such circumstances, to vote such securities
                and such other Collateral; and

                        (ii) promptly to deliver to the Collateral Agent such
                additional proxies and other documents as may be necessary to
                allow the Collateral Agent to exercise such voting power.

All Dividends, Distributions, interest, principal, cash payments, payment
intangibles and proceeds which may at any time and from time to time be held by
such Grantor but which such

                                       15

<PAGE>

Grantor is then obligated to deliver to the Collateral Agent, shall, until
delivery to the Collateral Agent, be held by such Grantor separate and apart
from its other property in trust for the Collateral Agent. The Collateral Agent
agrees that unless an Event of Default shall have occurred and be continuing and
the Collateral Agent shall have given the notice referred to in Section
4.2.5(b), such Grantor shall have the exclusive voting power with respect to any
securities constituting Collateral and the Collateral Agent shall, upon the
written request of such Grantor, promptly deliver such proxies and other
documents, if any, as shall be reasonably requested by such Grantor which are
necessary to allow such Grantor to exercise voting power with respect to any
such securities; provided, however, that no vote shall be cast, or consent,
waiver, or ratification given, or action taken by such Grantor that would
violate any provision of the Indenture or any other Related Document (including
this Pledge and Security Agreement).

        SECTION 4.2.6. Amendment of Organic Documents. Such Grantor will not
amend, supplement or otherwise modify, or permit, consent or suffer to occur any
amendment, supplement or modification of any terms or provisions contained in,
or applicable to, any certificate of incorporation, formation, LLC agreement,
operating agreement, shareholder agreement or similar document of any issuer of
any Capital Security comprising the Collateral in which it has an equity
interest if the effect thereof is to impair, or is in any manner adverse to, the
rights or interests of the Collateral Agent or any other Secured Party hereunder
or under the Indenture or any other Related Document, without the prior written
consent of the Collateral Agent and the Holder or Holders of at least a majority
in aggregate principal amount of the outstanding Notes. No Grantor will change
its name or place of incorporation or organization or federal taxpayer
identification number except upon 30 days' prior written notice to the
Collateral Agent. If any Grantor is organized outside of the United States, it
will not change its "location" as determined in accordance with Sections 9-301
and 9-307 of the U.C.C. and as set forth in Item A of Schedule II hereto except
upon 30 days' prior written notice to the Collateral Agent.

        Section 4.3. As to Receivables. (a) Each Grantor shall have the right to
collect all Receivables so long as no Default of the nature set forth in clause
(7) of Section 6.01 of the Indenture nor any Event of Default shall have
occurred and be continuing; provided, however, that such Grantor agrees to
promptly deposit all payments received by such Grantor on account of the
Receivables, whether in the form of cash, checks, drafts, notes, bills of
exchange, money orders or other like instruments or otherwise, in a deposit
account in precisely the form in which received (but with any endorsements of
such Grantor necessary for deposit or collection).

        (b) All proceeds of Collateral received by such Grantor shall be
deposited into a deposit account of such Grantor, unless, during the occurrence
and continuance of an Event of Default, such Grantor is otherwise notified in
writing by the Collateral Agent. Following any such notice by the Collateral
Agent to such Grantor pursuant to this Section 4.4(b), all proceeds of
Collateral received by such Grantor shall be delivered in kind to the Master
Deposit Account (which shall be established by the Issuer with the Collateral
Agent if such Master Deposit Account is not then existing) or any other account
or accounts specified by the Collateral Agent. Proceeds of Collateral received
by such Grantor shall, prior to deposit in the Master Deposit Account or such
other account or accounts specified by the Collateral Agent, be held separate
and apart from, and not commingled with, all other property and in express trust
for the benefit of the Collateral Agent until delivery thereof is made to the
Master Deposit Account or such other account or accounts.

                                       16

<PAGE>

        (c) Following and during the continuance of an Event of Default, such
Grantor shall transfer all funds out of each of its deposit accounts that is not
the Master Deposit Account (other than, in the aggregate, cash or Cash
Equivalent Investments in all deposit accounts (other than the Master Deposit
Account) that do not exceed at any time $10,000) for deposit into the Master
Deposit Account at the close of business each day or, if not commercially
reasonable to do so, no less frequently than once every five Business Days.

        (d) The Collateral Agent shall have the right to apply any amount in
each deposit account (including the Master Deposit Account) to the payment of
any Secured Obligations which are due and payable or payable upon demand or to
the payment of any Secured Obligations at any time that an Event of Default
shall have occurred and be continuing.

        (e) With respect to each deposit account maintained with the Collateral
Agent (including the Master Deposit Account), it is hereby agreed that (i)
deposits in each such deposit account are subject to a security interest as
contemplated hereby, (ii) each such deposit account shall be under the sole
dominion and control of the Collateral Agent and (iii) the Collateral Agent
shall have the sole right of withdrawal over each such deposit account;
provided, however, that, unless and until the Collateral Agent shall notify the
applicable Grantors that an Event of Default shall have occurred and be
continuing and that during the continuance thereof, no such Grantor shall
withdraw any of the funds contained in any such deposit account (which notice
may be given by telephone if promptly confirmed in writing or by facsimile), any
such Grantor may at any time withdraw any of the funds contained in its deposit
account for use in any lawful manner not inconsistent with the provisions of
this Pledge and Security Agreement, the Indenture or any other Related Document.

        Section 4.4. Motor Vehicles. (a) Each Grantor shall deliver to the
Collateral Agent the original of the certificate of title or ownership listing
the Collateral Agent as lienholder for (i) any Motor Vehicle owned by such
Grantor that has a fair market value of at least $50,000 or (ii) at the request
of the Collateral Agent, any other Motor Vehicle owned by such Grantor.

        (b) Upon the acquisition after the date hereof by such Grantor of (i)
any Motor Vehicle having a fair market value of at least $50,000 or (ii) any
other Motor Vehicle for which the Collateral Agent has requested the original of
the certificate of title or ownership thereof, such Grantor shall deliver to the
Collateral Agent originals of the certificates of title or ownership for such
Motor Vehicles, together with the manufacturer's statement of origin with the
Collateral Agent listed as lienholder.

        (c) Without limiting Section 5.1, such Grantor hereby appoints the
Collateral Agent as its attorney-in-fact, effective the date hereof, and
terminating upon the termination of this Pledge and Security Agreement, for the
purpose of (i) executing on behalf of such Grantor title or ownership
applications for filing with appropriate state agencies to enable Motor Vehicles
now owned or hereafter acquired by such Grantor to be retitled and the
Collateral Agent listed as lienholder thereon, (ii) filing such applications
with such state agencies and (iii) executing such other documents and
instruments on behalf of, and taking such other action in the name of, such
Grantor as the Collateral Agent may deem necessary or advisable to accomplish
the purposes hereof (including, without limitation, the purpose of creating in
favor of the Collateral Agent a perfected lien on the Motor Vehicles and
exercising the rights and remedies of the Collateral

                                       17

<PAGE>

Agent under Section 6.1 hereof). This appointment as attorney-in-fact is
irrevocable and coupled with an interest.

        (d) Any certificates of title or ownership delivered pursuant to the
terms hereof shall be accompanied by odometer statements for each Motor Vehicle
covered thereby.

        Section 4.5. As to Collateral. (a) Until the occurrence and continuance
of a Default of the nature set forth in clause (7) of Section 6.01 of the
Indenture or an Event of Default, and such time as the Collateral Agent shall
notify such Grantor of the revocation of such power and authority such Grantor
(i) may in the ordinary course of its business (except as otherwise permitted
under the Indenture), at its own expense, sell, lease or furnish under the
contracts of service any of the Inventory normally held by such Grantor for such
purpose, and use and consume, in the ordinary course of its business (except as
otherwise permitted under the Indenture), any raw materials, work in process or
materials normally held by such Grantor for such purpose, (ii) will, at its own
expense, endeavor to collect, as and when due, all amounts due with respect to
any of the Collateral, including the taking of such action with respect to such
collection as the Collateral Agent may reasonably request following the
occurrence of a Default of the nature set forth in clause (7) of Section 6.01 of
the Indenture or an Event of Default or, in the absence of such request, as such
Grantor may deem advisable, and (iii) may grant, in the ordinary course of
business (except as otherwise prohibited under the Indenture), to any party
obligated on any of the Collateral, any rebate, refund or allowance to which
such party may be lawfully entitled, and may accept, in connection therewith,
the return of goods, the sale or lease of which shall have given rise to such
Collateral. The Collateral Agent, however, may, at any time following a Default
of the nature set forth in clause (7) of Section 6.01 of the Indenture or an
Event of Default, whether before or after any revocation of such power and
authority or the maturity of any of the Secured Obligations, notify any parties
obligated on any of the Collateral to make payment to the Collateral Agent of
any amounts due or to become due thereunder and enforce collection of any of the
Collateral by suit or otherwise and surrender, release, or exchange all or any
part thereof, or compromise or extend or renew for any period (whether or not
longer than the original period) any indebtedness thereunder or evidenced
thereby. Upon request of the Collateral Agent following a Default of the nature
set forth in clause (f) of Section 6.01 of the Indenture or an Event of Default,
such Grantor will, at its own expense, notify any parties obligated on any of
the Collateral to make payment to the Collateral Agent of any amounts due or to
become due thereunder.

        (b) Following a Default of the nature set forth in clause (7) of Section
6.01 of the Indenture or an Event of Default, the Collateral Agent is authorized
to endorse, in the name of such Grantor, any item, howsoever received by the
Collateral Agent, representing any payment on or other proceeds of any of the
Collateral.

        Section 4.6. As to Intellectual Property Collateral. Each Grantor
covenants and agrees to comply with the following provisions as such provisions
relate to any Intellectual Property Collateral of such Grantor:

                (a) such Grantor shall not, unless such Grantor shall either (i)
        reasonably and in good faith determine (and notice of such determination
        shall have been delivered to the Collateral Agent) that any of the
        Patent Collateral is of negligible economic value to such

                                       18

<PAGE>

        Grantor, or (ii) have a valid business purpose to do otherwise, do any
        act, or omit to do any act, whereby any of the Patent Collateral may
        lapse or become abandoned or dedicated to the public or unenforceable;

                (b) such Grantor shall not, and such Grantor shall not permit
        any of its licensees to, unless such Grantor shall either (i) reasonably
        and in good faith determine (and notice of such determination shall have
        been delivered to the Collateral Agent) that any of the Trademark
        Collateral is of negligible economic value to such Grantor, or (ii) have
        a valid business purpose to do otherwise,

                        (i) fail to continue to use any of the Trademark
                Collateral in order to maintain all of the Trademark Collateral
                in full force free from any claim of abandonment for non-use,

                         (ii) fail to maintain as in the past the quality of
                products and services offered under all of the Trademark
                Collateral in a manner which might reasonably be expected to
                cause material impairment of any such Trademark Collateral,

                        (iii) fail to employ all of the Trademark Collateral
                registered with any Federal or state or foreign authority with
                an appropriate notice of such registration,

                        (iv) adopt or use any other Trademark which is
                confusingly similar or a colorable imitation of any of the
                Trademark Collateral,

                        (v) use any of the Trademark Collateral registered with
                any Federal or state or foreign authority except for the uses
                for which registration or application for registration of all of
                the Trademark Collateral has been made, and

                        (vi) do or permit any act or knowingly omit to do any
                act whereby any of the Trademark Collateral may lapse or become
                invalid or unenforceable;

                (c) such Grantor shall not, unless such Grantor shall either (i)
        reasonably and in good faith determine (and notice of such determination
        shall have been delivered to the Collateral Agent) that any of the
        Copyright Collateral or any of the Trade Secrets Collateral is of
        negligible economic value to such Grantor, or (ii) have a valid business
        purpose to do otherwise, do or permit any act or knowingly omit to do
        any act whereby any of the Copyright Collateral or any of the Trade
        Secrets Collateral may lapse or become invalid or unenforceable or
        placed in the public domain except upon expiration of the end of an
        unrenewable term of a registration thereof;

                (d) such Grantor shall notify the Collateral Agent immediately
        if it knows, or has reason to know, that any application or registration
        relating to any material item of the Intellectual Property Collateral
        may become abandoned or dedicated to the public or placed in the public
        domain or invalid or unenforceable, or of any adverse determination or
        development (including the institution of, or any such determination or
        development in, any proceeding in the United States Patent and Trademark
        Office, the United States Copyright Office or any foreign counterpart
        thereof or any court) regarding such

                                       19

<PAGE>

        Grantor's ownership of any of the Intellectual Property Collateral, its
        right to register the same or to keep and maintain and enforce the same;

                (e) in the event such Grantor or any of its agents, employees,
        designees or licensees shall file an application for the registration of
        any Intellectual Property Collateral with the United States Patent and
        Trademark Office, the United States Copyright Office or any similar
        office or agency in any other country or any political subdivision
        thereof, it shall promptly inform the Collateral Agent, and upon request
        of the Collateral Agent, execute and deliver any and all agreements,
        instruments, documents and papers as the Collateral Agent may reasonably
        request to evidence the Collateral Agent's security interest in such
        Intellectual Property Collateral and the goodwill and general
        intangibles of such Grantor relating thereto or represented thereby;

                (f) such Grantor shall take all necessary steps, including in
        any proceeding before the United States Patent and Trademark Office, the
        United States Copyright Office or any similar office or agency in any
        other country or any political subdivision thereof, to maintain and
        pursue any application (and to obtain the relevant registration) filed
        with respect to, and to maintain any registration of, the Intellectual
        Property Collateral, including the filing of applications for renewal,
        affidavits of use, affidavits of incontestability and opposition,
        interference and cancellation proceedings and the payment of fees and
        taxes (except to the extent that dedication, abandonment or invalidation
        is permitted under the foregoing clauses (a), (b) and (c)); and

                (g) such Grantor shall, contemporaneously herewith, execute and
        deliver to the Collateral Agent a Patent Security Agreement and a
        Trademark Security Agreement in the forms of Exhibits A and B hereto,
        respectively, and shall execute and deliver to the Collateral Agent any
        other document required to acknowledge or register or perfect the
        Collateral Agent's interest in any part of the Intellectual Property
        Collateral.

        Section 4.7. Insurance. Such Grantor will maintain or cause to be
maintained with responsible insurance companies insurance with respect to its
business and properties (including the Equipment and Inventory) against such
casualties and contingencies and of such types and in such amounts as is
required pursuant to the Indenture and will, upon the request of the Collateral
Agent, furnish a certificate of a reputable insurance broker setting forth the
nature and extent of all insurance maintained by such Grantor in accordance with
this Section.

        Section 4.8. Further Assurances, etc. Such Grantor agrees that, from
time to time at its own expense, it will promptly execute and deliver all
further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Collateral Agent may request, in order to
perfect, preserve and protect any security interest granted or purported to be
granted hereby or to enable the Collateral Agent to exercise and enforce its
rights and remedies hereunder with respect to any Collateral. Without limiting
the generality of the foregoing, subject to the Intercreditor Agreement, such
Grantor will

                (a) if any Receivable shall be evidenced by a promissory note or
        other instrument, negotiable document or chattel paper, deliver and
        pledge to the Collateral Agent hereunder such promissory note,
        instrument, negotiable document or chattel paper

                                       20

<PAGE>

        duly endorsed and accompanied by duly executed instruments of transfer
        or assignment, all in form and substance satisfactory to the Collateral
        Agent;

                (b) execute and file such financing or continuation statements,
        or amendments thereto, and such other instruments or notices (including
        any assignment of claim form under or pursuant to the federal assignment
        of claims statute, 31 U.S.C. Section 3726, any successor or amended
        version thereof or any regulation promulgated under or pursuant to any
        version thereof), as may be necessary or desirable, or as the Collateral
        Agent may request, in order to perfect and preserve the security
        interests and other rights granted or purported to be granted to the
        Collateral Agent hereby;

                (c) promptly execute and deliver all further instruments, and
        take all further action, that may be necessary or desirable, or that the
        Collateral Agent may reasonably request, in order to perfect and protect
        any security interest granted or purported to be granted hereby or to
        enable the Collateral Agent to exercise and enforce its rights and
        remedies hereunder with respect to any Collateral;

                (d) cause the Collateral Agent to be listed as the lienholder on
        the certificate of title or ownership relating to (i) any Motor Vehicle
        owned by such Grantor that has a fair market value of at least $50,000
        or (ii) at the request of the Collateral Agent, any other Motor Vehicle
        owned by such Grantor;

                (e) furnish to the Collateral Agent, from time to time at the
        Collateral Agent's request, statements and schedules further identifying
        and describing the Collateral and such other reports in connection with
        the Collateral as the Collateral Agent may reasonably request, all in
        reasonable detail;

                (f) do all things reasonably requested by the Collateral Agent
        in order to enable the Collateral Agent to have control (as such term is
        defined in Article 8 and Article 9 of any applicable Uniform Commercial
        Code relevant to the creation, perfection or priority of Collateral
        consisting of investment property, deposit accounts, electronic chattel
        paper and letter of credit rights) over any Collateral; and

                (g) notify the Collateral Agent if such Grantor reasonably
        believes it is entitled to recover a commercial tort claim the value of
        which is in excess of $50,000 and such Grantor take all such action
        reasonably requested by the Collateral Agent to grant to the Collateral
        Agent and perfect a security interest in such commercial tort claim.

With respect to the foregoing and the grant of the security interest hereunder,
such Grantor hereby authorizes the Collateral Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral without the signature of such Grantor where permitted
by law. A carbon, photographic or other reproduction of this Pledge and Security
Agreement or any financing statement covering the Collateral or any part thereof
shall be sufficient as a financing statement where permitted by law.

                                       21

<PAGE>

                                    ARTICLE V

                              THE COLLATERAL AGENT

        Section 5.1. Collateral Agent Appointed Attorney-in-Fact. Each Grantor
hereby irrevocably appoints the Collateral Agent such Grantor's
attorney-in-fact, with full authority in the place and stead of such Grantor and
in the name of such Grantor or otherwise, from time to time in the Collateral
Agent's discretion, following the occurrence and continuation of a Default of
the nature set forth in clause (7) of Section 6.01 of the Indenture or an Event
of Default, to take any action and to execute any instrument which the
Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Pledge and Security Agreement, including:

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

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

                (c) to file any claims or take any action or institute any
        proceedings which the Collateral Agent may deem necessary or desirable
        for the collection of any of the Collateral or otherwise to enforce the
        rights of the Collateral Agent with respect to any of the Collateral;
        and

                (d) to perform the affirmative obligations of such Grantor
        hereunder (including all obligations of such Grantor pursuant to Section
        4.10).

Such Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

        Section 5.2. Collateral Agent May Perform. If any Grantor fails to
perform any agreement contained herein, the Collateral Agent may itself perform,
or cause performance of, such agreement, and the expenses of the Collateral
Agent incurred in connection therewith shall be payable by such Grantor pursuant
to Section 6.4.

        Section 5.3. Collateral Agent Has No Duty. In addition to, and not in
limitation of, Section 2.6, the powers conferred on the Collateral Agent
hereunder are solely to protect its interest (on behalf of the Secured Parties)
in the Collateral and shall not impose any duty on it to exercise any such
powers. Except for reasonable care of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent
shall have no duty as to any Collateral or responsibility for

                (a) ascertaining or taking action with respect to calls,
        conversions, exchanges, maturities, tenders or other matters relative to
        any Investment Property, whether or not the Collateral Agent has or is
        deemed to have knowledge of such matters, or

                (b) taking any necessary steps to preserve rights against prior
        parties or any other rights pertaining to any Collateral.

                                       22

<PAGE>

        Section 5.4. Reasonable Care. The Collateral Agent is required to
exercise reasonable care in the custody and preservation of any of the
Collateral in its possession; provided, however, the Collateral Agent shall be
deemed to have exercised reasonable care in the custody and preservation of any
of the Collateral, if it takes such action for that purpose as any Grantor
reasonably requests in writing at times other than upon the occurrence and
during the continuance of any Event of Default, but failure of the Collateral
Agent to comply with any such request at any time shall not in itself be deemed
a failure to exercise reasonable care.

                                   ARTICLE VI

                                    REMEDIES

        Section 6.1. Certain Remedies. If any Event of Default shall have
occurred and be continuing:

                (a) The Collateral Agent may exercise in respect of the
        Collateral, in addition to other rights and remedies provided for herein
        or otherwise available to it, all the rights and remedies of a secured
        party on default under the U.C.C. (whether or not the U.C.C. applies to
        the affected Collateral) and also may

                        (i) require each Grantor to, and such Grantor hereby
                agrees that it will, at its expense and upon request of the
                Collateral Agent forthwith, assemble all or part of the
                Collateral as directed by the Collateral Agent and make it
                available to the Collateral Agent at a place to be designated by
                the Collateral Agent which is reasonably convenient to both
                parties, and

                        (ii) without notice except as specified below, sell the
                Collateral or any part thereof in one or more parcels at public
                or private sale, at any of the Collateral Agent's offices or
                elsewhere, for cash, on credit or for future delivery, and upon
                such other terms as the Collateral Agent may deem commercially
                reasonable. Each Grantor agrees that, to the extent notice of
                sale shall be required by law, at least ten days' prior notice
                to such Grantor of the time and place of any public sale or the
                time after which any private sale is to be made shall constitute
                reasonable notification. The Collateral Agent shall not be
                obligated to make any sale of Collateral regardless of notice of
                sale having been given. The Collateral Agent may adjourn any
                public or private sale from time to time by announcement at the
                time and place fixed therefor, and such sale may, without
                further notice, be made at the time and place to which it was so
                adjourned.

                (b) All cash proceeds received by the Collateral Agent in
        respect of any sale of, collection from, or other realization upon, all
        or any part of the Collateral shall be applied by the Collateral Agent
        against, all or any part of the Secured Obligations as follows:

                        (i) first, to the payment of any amounts payable to the
                Collateral Agent pursuant to Section 7.07 of the Indenture and
                Section 6.4;

                                       23

<PAGE>

                        (ii) second, to the equal and ratable payment of Secured
                Obligations, in accordance with each Secured Party's Secured
                Obligations owing to it under or pursuant to the Indenture or
                any other Related Document, applied

                                (A) first to fees and expense reimbursements
                        then due to such Secured Party,

                                (B) then to interest due to such Secured Party,
                        and

                                (C) then to pay the remaining outstanding
                        Secured Obligations; and

                        (iii) fourth, to be held as additional collateral
                security until the payment in full in cash of all of the Secured
                Obligations, after which such remaining cash proceeds shall be
                paid over to the applicable Grantor or to whomsoever may be
                lawfully entitled to receive such surplus.

                (c) The Collateral Agent may,

                        (i) transfer all or any part of the Collateral into the
                name of the Collateral Agent or its nominee, with or without
                disclosing that such Collateral is subject to the lien and
                security interest hereunder,

                        (ii) notify the parties obligated on any of the
                Collateral to make payment to the Collateral Agent of any amount
                due or to become due thereunder,

                        (iii) enforce collection of any of the Collateral by
                suit or otherwise, and surrender, release or exchange all or any
                part thereof, or compromise or extend or renew for any period
                (whether or not longer than the original period) any obligations
                of any nature of any party with respect thereto,

                        (iv) endorse any checks, drafts, or other writings in
                such Grantor's name to allow collection of the Collateral,

                        (v) take control of any proceeds of the Collateral, and

                        (vi) execute (in the name, place and stead of such
                Grantor) endorsements, assignments, stock powers and other
                instruments of conveyance or transfer with respect to all or any
                of the Collateral.

        Section 6.2. Securities Laws. If the Collateral Agent shall determine to
exercise its right to sell all or any of the Collateral pursuant to Section 6.1,
each Grantor agrees that, upon request of the Collateral Agent, such Grantor
will, at its own expense:

                (a) execute and deliver, and cause each issuer of the Collateral
        contemplated to be sold and the directors and officers thereof to
        execute and deliver, all such instruments and documents, and do or cause
        to be done all such other acts and things, as may be necessary or, in
        the opinion of the Collateral Agent, advisable to register such
        Collateral

                                       24

<PAGE>

        under the provisions of the Securities Act of 1933, as from time to time
        amended (the "Securities Act"), and to cause the registration statement
        relating thereto to become effective and to remain effective for such
        period as prospectuses are required by law to be furnished, and to make
        all amendments and supplements thereto and to the related prospectus
        which, in the opinion of the Collateral Agent, are necessary or
        advisable, all in conformity with the requirements of the Securities Act
        and the rules and regulations of the Securities and Exchange Commission
        applicable thereto;

                (b) use its best efforts to qualify the Collateral under the
        state securities or "Blue Sky" laws and to obtain all necessary
        governmental approvals for the sale of the Collateral, as requested by
        the Collateral Agent;

                (c) cause each such issuer to make available to its security
        holders, as soon as practicable, an earnings statement that will satisfy
        the provisions of Section 11(a) of the Securities Act; and

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

Each Grantor further acknowledges the impossibility of ascertaining the amount
of damages that would be suffered by the Collateral Agent or the Secured Parties
by reason of the failure by any Grantor to perform any of the covenants
contained in this Section and, consequently, agrees that, if such Grantor shall
fail to perform any of such covenants, it shall pay, as liquidated damages and
not as a penalty, an amount equal to the value (as reasonably determined by the
Collateral Agent) of the Collateral on the date the Collateral Agent shall
demand compliance with this Section.

        Section 6.3. Compliance with Restrictions. Each Grantor agrees that in
any sale of any of the Collateral whenever an Event of Default shall have
occurred and be continuing, the Collateral Agent is hereby authorized to comply
with any limitation or restriction in connection with such sale as it may be
advised by counsel is necessary in order to avoid any violation of applicable
law (including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders
and purchasers to Persons who will represent and agree that they are purchasing
for their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any governmental regulatory authority or official,
and such Grantor further agrees that such compliance shall not result in such
sale being considered or deemed not to have been made in a commercially
reasonable manner, nor shall the Collateral Agent be liable nor accountable to
such Grantor for any discount allowed by the reason of the fact that such
Collateral is sold in compliance with any such limitation or restriction.

        Section 6.4. Indemnity and Expenses.

                (a) Each Grantor jointly and severally agrees to indemnify the
        Collateral Agent from and against any and all claims, losses and
        liabilities arising out of or resulting from

                                       25

<PAGE>

        this Pledge and Security Agreement (including enforcement of this Pledge
        and Security Agreement), except claims, losses or liabilities resulting
        from the Collateral Agent's gross negligence or wilful misconduct.

                (b) Each Grantor will upon demand pay to the Collateral Agent
        the amount of any and all reasonable expenses, including the reasonable
        fees and disbursements of its counsel and of any experts and agents,
        which the Collateral Agent may incur in connection with

                        (i) the administration of this Pledge and Security
                Agreement,

                        (ii) the custody, preservation, use or operation of, or
                the sale of, collection from, or other realization upon, any of
                the Collateral,

                        (iii) the exercise or enforcement of any of the rights
                of the Collateral Agent or the Secured Parties hereunder, and

                        (iv) the failure by any Grantor to perform or observe
                any of the provisions hereof.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

        Section 7.1. Related Document. This Pledge and Security Agreement is a
Related Document executed pursuant to the Indenture and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance
with the provisions of Article I thereof.

        Section 7.2. Amendments; etc. No amendment to or waiver of any provision
of this Pledge and Security Agreement nor consent to any departure by any
Grantor herefrom, shall in any event be effective unless the same shall be in
writing and signed by the Collateral Agent (on behalf of (x) the Holders or (y)
the Holder or Holders of at least a majority in aggregate principal amount of
the outstanding Notes, as the case may be), and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

        Section 7.3. Protection of Collateral. The Collateral Agent may from
time to time, at its option, perform any act which each Grantor agrees hereunder
to perform and which such Grantor shall fail to perform after being requested in
writing so to perform (it being understood that no such request need be given
after the occurrence and during the continuance of an Event of Default) and the
Collateral Agent may from time to time take any other action which the
Collateral Agent reasonably deems necessary for the maintenance, preservation or
protection of any of the Collateral or of its security interest therein.

        Section 7.4. Addresses for Notices. All notices and other communications
provided for hereunder shall be in writing (including telegraphic communication)
and, if to any Grantor, mailed or telecopied or delivered to it, addressed to it
in care of the Issuer at the address of the

                                       26

<PAGE>

Issuer specified in the Indenture, if to the Collateral Agent, mailed or
telecopied or delivered to it, addressed to it at the address of the Collateral
Agent specified in the Indenture. All such notices and other communications,
when mailed and properly addressed with postage prepaid or if properly addressed
and sent by pre-paid courier service, shall be deemed given when received; any
such notice or communication, if transmitted by telecopier, shall be deemed
given when transmitted and electronically confirmed.

        Section 7.5. Additional Grantors. Upon the execution and delivery by any
other Person of an instrument in the form of Annex I hereto, such Person shall
become a "Grantor" hereunder with the same force and effect as if originally
named as a Grantor herein. The execution and delivery of any such instrument
shall not require the consent of any other Grantor hereunder. The rights and
obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Pledge and
Security Agreement.

        Section 7.6. Section Captions. Section captions used in this Pledge and
Security Agreement are for convenience of reference only, and shall not affect
the construction of this Pledge and Security Agreement.

        Section 7.7. Severability. Wherever possible each provision of this
Pledge and Security Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Pledge
and Security Agreement shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Pledge and Security Agreement.

        Section 7.8. Counterparts. This Pledge and Security Agreement may be
executed by the parties hereto in several counterparts, each of which shall be
deemed an original and all of which shall constitute together but one and the
same agreement.

        Section 7.9. Governing Law, Entire Agreement, etc. THIS PLEDGE AND
SECURITY AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR
PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT
OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
THAN THE STATE OF NEW YORK. THIS PLEDGE AND SECURITY AGREEMENT AND THE OTHER
RELATED DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO
WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY PRIOR
AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

        Section 7.10. Intercreditor Agreement.

        (a) In case of any conflict or inconsistency between this Pledge and
Security Agreement and the Intercreditor Agreement or with respect to the rights
and obligations of the parties prior

                                       27

<PAGE>

to enforcement and the conditions and terms on which security interests may be
enforced, the Intercreditor Agreement shall control; provided, however, that the
terms of the Intercreditor Agreement shall not increase the obligations of, or
adversely affect any rights, of any Grantor, in each case under this Pledge and
Security Agreement.

        (b) Not in limitation but in furtherance of the foregoing, any provision
of this Pledge and Security Agreement that provides for the Collateral Agent to
have "control" of any Collateral consisting of investment property for purposes
of Article 8 or 9 of the U.C.C. shall be deemed satisfied if the Agent shall
have control of such Collateral (including, in the case of any such Collateral
consisting of certificated securities by the delivery of such Collateral to the
Agent) so long as the conditions described in Section 9-314(c) of the U.C.C.
shall not be satisfied prior to the Collateral Agent obtaining control of any
such Collateral following the relinquishment of such control by the Agent unless
the Lien of the Collateral Agent in such Collateral is terminated or released in
accordance with the terms hereof or the Intercreditor Agreement.

        (c) Prior to the termination of the Loan Agreement, in the event that
any obligation of a Grantor conflicts with an obligation of such Grantor under
the Loan Documents executed pursuant to (and as defined in) the Loan Agreement,
such Grantor will first comply with its obligation under such Loan Documents,
and then, to the extent possible, comply with its obligations hereunder.

        (d) Notwithstanding anything herein to the contrary, the lien and
security interest granted to the Collateral Agent pursuant to this Pledge and
Security Agreement and the exercise of any right or remedy by the Collateral
Agent hereunder are subject to the provisions of the Intercreditor Agreement. In
the event of any conflict between the terms of the Intercreditor Agreement and
this Pledge and Security Agreement, the terms of the Intercreditor Agreement
shall govern. The security interests created hereunder are subject to, and
expressly subordinated to the Liens in favor of the Agent.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       28

<PAGE>

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

                                              AMERICAN ROCK SALT COMPANY LLC, a
                                              New York limited liability company

                                              By:  /s/  Neil L. Cohen
                                                 -------------------------------
                                                 Name:  Neil L. Cohen
                                                 Title: Vice Chairman

                                              U.S BANK NATIONAL ASSOCIATION, as
                                              Collateral Agent

                                              By:  /s/  Frank P. Leslie III
                                                 -------------------------------
                                                 Name:  Frank P. Leslie III
                                                 Title: Vice President

                                                   Pledge and Security Agreement

<PAGE>

                                                                       EXHIBIT A

                                                to Pledge and Security Agreement

                            PATENT SECURITY AGREEMENT

        This PATENT SECURITY AGREEMENT (this "Agreement"), dated as of
__________ __, ____, is made between __________, a ____________ (the "Grantor"),
and U.S. Bank National Association, as collateral agent (together with its
successor(s) thereto, in such capacity the "Collateral Agent") for each of the
Secured Parties;

                              W I T N E S S E T H :

        WHEREAS, the Issuer, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of March 17, 2004 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Indenture"), and in connection therewith, the Issuer has issued (the "Notes
Issuance") its Senior Secured Notes due 2014 (and, if applicable, its Senior
Secured Notes due 2014, Series B issued in exchange therefor) (collectively, the
"Notes");

        WHEREAS, the Grantors have entered into that certain Credit Agreement,
dated as of March 17, 2004 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Loan Agreement") among the financial
institutions party thereto (the "Senior Lenders") as lenders and Manufacturers
and Traders Trust Company, as the senior collateral agent (the "Agent"),
pursuant to which the Senior Lenders have agreed to make certain loans and other
financial accommodations to the Grantors from time to time, which Loan Agreement
is referenced as the "Credit Agreement" under the Indenture, and the other
Grantors hereto have each entered into various agreements granting Liens to the
Agent for the benefit of the Senior Lenders as well;

        WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Pledge and Security Agreement, dated as of March 17, 2004 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Pledge and Security Agreement");

        WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Patent Collateral (as defined
below) to secure all Secured Obligations;

        WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

        WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Issuer;

<PAGE>

        NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Holders to acquire the
Notes and maintain the Indebtedness evidenced thereby, the Grantor agrees, for
the benefit of each Secured Party, as follows:

        SECTION 1. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided (or incorporated by reference) in the
Pledge and Security Agreement.

        SECTION 2. Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby mortgage, pledge
and hypothecate to the Collateral Agent, and grant to the Collateral Agent a
security interest in, for its benefit and the benefit of each Secured Party, all
of the following property (the "Patent Collateral"), whether now owned or
hereafter acquired or existing by it:

                (a) all letters patent and applications for letters patent
        throughout the world, including all patent applications in preparation
        for filing anywhere in the world and including each patent and patent
        application referred to in Item A of Schedule III attached hereto;

                (b) all reissues, divisions, continuations,

        continuations-in-part, extensions, renewals and reexaminations of any of
        the items described in clause (a);

                (c) all patent licenses, including each patent license referred
        to in Item B of Schedule III attached hereto; and

                (d) all proceeds of, and rights associated with, the foregoing
        (including license royalties and proceeds of infringement suits), the
        right to sue third parties for past, present or future infringements of
        any patent or patent application, including any patent or patent
        application referred to in Item A of Schedule III attached hereto, and
        for breach or enforcement of any patent license, including any patent
        license referred to in Item B of Schedule III attached hereto, and all
        rights corresponding thereto throughout the world.

        SECTION 3. Pledge and Security Agreement. This Agreement has been
executed and delivered by the Grantor for the purpose of registering the
security interest of the Collateral Agent in the Patent Collateral with the
United States Patent and Trademark Office and corresponding offices in other
countries of the world, such registration will be completed by, and at the cost
of the Grantor. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the
Collateral Agent for its benefit and the benefit of each Secured Party under the
Pledge and Security Agreement. The Pledge and Security Agreement (and all rights
and remedies of the Collateral Agent and each Secured Party thereunder) shall
remain in full force and effect in accordance with its terms.

                                       -2-

<PAGE>

        SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, and upon delivery to the Collateral Agent of an
Officer's Certificate and an Opinion of Counsel the Collateral Agent shall, at
the Grantor's expense, execute and deliver to the Grantor all instruments and
other documents as may be necessary or proper to release the lien on and
security interest in the Patent Collateral which has been granted hereunder.

        SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Collateral Agent with respect to
the security interest in the Patent Collateral granted hereby are more fully set
forth in the Pledge and Security Agreement, the terms and provisions of which
(including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

        SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

        SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

        SECTION 8. Intercreditor Agreement. Notwithstanding anything herein to
the contrary, the lien and security interest granted to the Collateral Agent
pursuant to the Pledge and Security Agreement and the exercise of any right or
remedy by the Collateral Agent hereunder, in each case in respect of any
Collateral are subject to the provisions of the Intercreditor Agreement,
including the grantor of security interest in this Agreement. In the event of
any conflict between the terms of the Intercreditor Agreement and this
Agreement, the terms of the Intercreditor Agreement shall govern.

                                       -3-

<PAGE>

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

                                             [NAME OF GRANTOR], a ____________
                                             -------------

                                             By :
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             U.S BANK NATIONAL ASSOCIATION, as
                                             Collateral Agent

                                             By :
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                       -4-

<PAGE>

                                                                       EXHIBIT B

                                                to Pledge and Security Agreement

                          TRADEMARK SECURITY AGREEMENT

        This TRADEMARK SECURITY AGREEMENT (this "Agreement"), dated as of
__________ __, ____, is made between _____________________, a ___________
__________ (the "Grantor"), and U.S. Bank National Association, collateral agent
(together with its successor(s) thereto, in such capacity the "Collateral
Agent") for each of the Secured Parties;

                              W I T N E S S E T H :

        WHEREAS, the Issuer, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of March 17, 2004 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Indenture"), and in connection therewith, the Issuer has issued (the "Notes
Issuance") its Senior Secured Notes due 2014 (and, if applicable, its Senior
Secured Notes due 2014, Series B issued in exchange therefor) (collectively, the
"Notes");

        WHEREAS, the Grantors have entered into that certain Credit Agreement,
dated as of March 17, 2004 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Loan Agreement") among the financial
institutions party thereto (the "Senior Lenders") as lenders and Manufacturers
and Traders Trust Company, as the senior collateral agent (the "Agent"),
pursuant to which the Senior Lenders have agreed to make certain loans and other
financial accommodations to the Grantors from time to time, which Loan Agreement
is referenced as the "Credit Agreement" under the Indenture, and the other
Grantors hereto have each entered into various agreements granting Liens to the
Agent for the benefit of the Senior Lenders as well;

        WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Pledge and Security Agreement, dated as of March 17, 2004 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Pledge and Security Agreement");

        WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Trademark Collateral (as
defined below) to secure all Secured Obligations;

        WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

<PAGE>

        WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Issuer;

        NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Holders to acquire the
Notes and maintain the Indebtedness evidenced thereby, the Grantor agrees, for
the benefit of each Secured Party, as follows:

        SECTION 1. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided (or incorporated by reference) in the
Pledge and Security Agreement.

        SECTION 2. Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby mortgage, pledge
and hypothecate to the Collateral Agent, and grant to the Collateral Agent a
security interest in, for its benefit and the benefit of each Secured Party, all
of the following property (the "Trademark Collateral"), whether now owned or
hereafter acquired or existing by it:

                (a) all trademarks, trade names, corporate names, company names,
        business names, fictitious business names, trade styles, service marks,
        certification marks, collective marks, logos, other source of business
        identifiers, prints and labels on which any of the foregoing have
        appeared or appear, designs and general intangibles of a like nature
        (all of the foregoing items in this clause (a) being collectively called
        a "Trademark"), now existing anywhere in the world or hereafter adopted
        or acquired, whether currently in use or not, all registrations and
        recordings thereof and all applications in connection therewith, whether
        pending or in preparation for filing, including registrations,
        recordings and applications in the United States Patent and Trademark
        Office or in any office or agency of the United States of America or any
        State thereof or any foreign country, including those referred to in
        Item A of Schedule IV attached hereto;

                (b) all Trademark licenses, including each Trademark license
        referred to in Item B of Schedule IV attached hereto;

                (c) all reissues, extensions or renewals of any of the items
        described in clause (a) and (b);

                (d) all of the goodwill of the business connected with the use
        of, and symbolized by the items described in, clauses (a) and (b); and

                (e) all proceeds of, and rights associated with, the foregoing,
        including any claim by the Grantor against third parties for past,
        present or future infringement or dilution of

                                       -2-

<PAGE>

        any Trademark, Trademark registration or Trademark license, including
        any Trademark, Trademark registration or Trademark license referred to
        in Item A and Item B of Schedule IV attached hereto, or for any injury
        to the goodwill associated with the use of any such Trademark or for
        breach or enforcement of any Trademark license.

        SECTION 3. Pledge and Security Agreement. This Agreement has been
executed and delivered by the Grantor for the purpose of registering the
security interest of the Collateral Agent in the Trademark Collateral with the
United States Patent and Trademark Office and corresponding offices in other
countries of the world, such registration will be completed by. and at the cost
of the Grantor. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the
Collateral Agent for its benefit and the benefit of each Secured Party under the
Pledge and Security Agreement. The Pledge and Security Agreement (and all rights
and remedies of the Collateral Agent and each Secured Party thereunder) shall
remain in full force and effect in accordance with its terms.

        SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, and upon delivery to the Collateral Agent of an
Officer's Certificate and an Opinion of Counsel the Collateral Agent shall, at
the Grantor's expense, execute and deliver to the Grantor all instruments and
other documents as may be necessary or proper to release the lien on and
security interest in the Trademark Collateral which has been granted hereunder.

        SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Collateral Agent with respect to
the security interest in the Trademark Collateral granted hereby are more fully
set forth in the Pledge and Security Agreement, the terms and provisions of
which (including the remedies provided for therein) are incorporated by
reference herein as if fully set forth herein.

        SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

        SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

        SECTION 8. Intercreditor Agreement. Notwithstanding anything herein to
the contrary, the lien and security interest granted to the Collateral Agent
pursuant to the Pledge and Security Agreement and the exercise of any right or
remedy by the Collateral Agent hereunder, in each case in respect of any
Collateral are subject to the provisions of the Intercreditor Agreement,
including the grantor of security interest in this Agreement. In the event of
any conflict between the terms of the Intercreditor Agreement and this
Agreement, the terms of the Intercreditor Agreement shall govern.

                                       -3-

<PAGE>

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

                                             [NAME OF GRANTOR], a ____________
                                             -------------

                                             By :
                                                 -----------------------
                                                 Name:
                                                 Title:

                                             U.S. BANK NATIONAL ASSOCIATION, as
                                             Collateral Agent

                                             By :

                                                 -------------------------------
                                                 Name:
                                                 Title:

                                       -4-

<PAGE>

                                                                       EXHIBIT C

                                                to Pledge and Security Agreement

                          COPYRIGHT SECURITY AGREEMENT

        This COPYRIGHT SECURITY AGREEMENT (this "Agreement"), dated as of
__________ __, ____, is made between _____________________, a __________ (the
"Grantor"), and U.S. Bank National Association as collateral agent (together
with its successor(s) thereto, in such capacity the "Collateral Agent") for each
of the Secured Parties;

                              W I T N E S S E T H :

        WHEREAS, the Issuer, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of March 17, 2004 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Indenture"), and in connection therewith, the Issuer has issued (the "Notes
Issuance") its Senior Secured Notes due 2014 (and, if applicable, its Senior
Secured Notes due 2014, Series B issued in exchange therefor) (collectively, the
"Notes");

        WHEREAS, the Grantors have entered into that certain Credit Agreement,
dated as of March 17, 2004 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Loan Agreement") among the financial
institutions party thereto (the "Senior Lenders") as lenders and Manufacturers
and Traders Trust Company, as the senior collateral agent (the "Agent"),
pursuant to which the Senior Lenders have agreed to make certain loans and other
financial accommodations to the Grantors from time to time, which Loan Agreement
is referenced as the "Senior Credit Facility" under the Indenture, and the other
Grantors hereto have each entered into various agreements granting Liens to the
Agent for the benefit of the Senior Lenders as well;

        WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Pledge and Security Agreement, dated as of March 17, 2004 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Pledge and Security Agreement");

        WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Copyright Collateral (as
defined below) to secure all Secured Obligations;

        WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

<PAGE>

        WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Issuer;

        NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Holders to acquire the
Notes and maintain the Indebtedness evidenced thereby, the Grantor agrees, for
the benefit of each Secured Party, as follows:

        SECTION 1. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided (or incorporated by reference) in the
Pledge and Security Agreement.

        SECTION 2. Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby mortgage, pledge
and hypothecate to the Collateral Agent, and grant to the Collateral Agent a
security interest in, for its benefit and the benefit of each Secured Party, all
of the following property (the "Copyright Collateral"), whether now owned or
hereafter acquired or existing by it, being all copyrights (including all
copyrights for semi-conductor chip product mask works) of the Grantor, whether
statutory or common law, registered or unregistered, now or hereafter in force
throughout the world including all of the Grantor's right, title and interest in
and to all copyrights registered in the United States Copyright Office or
anywhere else in the world and also including the copyrights referred to in Item
A of Schedule V attached hereto, and all applications for registration thereof,
whether pending or in preparation, all copyright licenses, including each
copyright license referred to in Item B of Schedule V attached hereto, the right
to sue for past, present and future infringements of any thereof, all rights
corresponding thereto throughout the world, all extensions and renewals of any
thereof and all proceeds of the foregoing, including licenses, royalties,
income, payments, claims, damages and proceeds of suit.

        SECTION 3. Pledge and Security Agreement. This Agreement has been
executed and delivered by the Grantor for the purpose of registering the
security interest of the Collateral Agent in the Copyright Collateral with the
United States Copyright Office and corresponding offices in other countries of
the world, such registration will be completed by, and at the expense of the
Grantor. The security interest granted hereby has been granted as a supplement
to, and not in limitation of, the security interest granted to the Collateral
Agent for its benefit and the benefit of each Secured Party under the Pledge and
Security Agreement. The Pledge and Security Agreement (and all rights and
remedies of the Collateral Agent and each Secured Party thereunder) shall remain
in full force and effect in accordance with its terms.

        SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, and upon delivery to the Collateral Agent of an
Officer's Certificate and an Opinion of Counsel the Collateral Agent shall, at
the Grantor's expense, execute and deliver to the

                                       -2-

<PAGE>

Grantor all instruments and other documents as may be necessary or proper to
release the lien on and security interest in the Copyright Collateral which has
been granted hereunder.

        SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Collateral Agent with respect to
the security interest in the Copyright Collateral granted hereby are more fully
set forth in the Pledge and Security Agreement, the terms and provisions of
which (including the remedies provided for therein) are incorporated by
reference herein as if fully set forth herein.

        SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

        SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

        SECTION 8. Intercreditor Agreement. Notwithstanding anything herein to
the contrary, the lien and security interest granted to the Collateral Agent
pursuant to the Pledge and Security Agreement and the exercise of any right or
remedy by the Collateral Agent hereunder, in each case in respect of any
Collateral are subject to the provisions of the Intercreditor Agreement,
including the grantor of security interest in this Agreement. In the event of
any conflict between the terms of the Intercreditor Agreement and this
Agreement, the terms of the Intercreditor Agreement shall govern.

                                       -3-

<PAGE>

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

                                             [NAME OF GRANTOR], a ____________
                                             -------------

                                             By :
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             U.S. BANK NATIONAL ASSOCIATION, as
                                             Collateral Agent

                                             By :
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                       -4-

<PAGE>

                                                                         ANNEX I

                                                to Pledge and Security Agreement

                   SUPPLEMENT TO PLEDGE AND SECURITY AGREEMENT

        This SUPPLEMENT NO. ___, dated as of ________ __, ____ (this
"Supplement"), to the Pledge and Security Agreement, dated as of March 17, 2004
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the "Pledge and Security Agreement"), among the initial signatories
thereto and each other Person which from time to time thereafter became a party
thereto pursuant to Section 7.5 thereof (each, individually, a "Grantor", and,
collectively, the "Grantors"), in favor of U.S. Bank National Association, as
collateral agent (together with its successor(s) thereto, in such capacity the
"Collateral Agent") for each of the Secured Parties (such and other capitalized
terms being used herein with the meanings provided, or incorporated by
reference, in the Pledge and Security Agreement), is made by the undersigned.

                              W I T N E S S E T H:

        WHEREAS, the Issuer, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of March 17, 2004 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Indenture"), and in connection therewith, the Issuer has issued (the "Notes
Issuance") its Senior Secured Notes due 2014 (and, if applicable, its Senior
Secured Notes due 2014, Series B issued in exchange therefor) (collectively, the
"Notes");

        WHEREAS, the Grantors have entered into that certain Credit Agreement,
dated as of March 17, 2004 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Loan Agreement") among the financial
institutions party thereto (the "Senior Lenders") as lenders and Manufacturers
and Traders Trust Company, as the senior collateral agent (the "Agent"),
pursuant to which the Senior Lenders have agreed to make certain loans and other
financial accommodations to the Grantors from time to time, which Loan Agreement
is referenced as the "Senior Credit Facility" under the Indenture, and the other
Grantors hereto have each entered into various agreements granting Liens to the
Agent for the benefit of the Senior Lenders as well;

        WHEREAS, pursuant to the Pledge and Security Agreement, the undersigned
is required to execute and deliver this Supplement;

        WHEREAS, the undersigned has duly authorized the execution, delivery and
performance of this Supplement and the Pledge and Security Agreement;

<PAGE>

        WHEREAS, the Pledge and Security Agreement provides that additional
parties may become Grantors under the Pledge and Security Agreement by execution
and delivery of an instrument in the form of this Supplement;

        WHEREAS, pursuant to the provisions of Section 7.5 of the Pledge and
Security Agreement, the undersigned is becoming an Additional Grantor under the
Pledge and Security Agreement; and

        WHEREAS, the undersigned desires to become a Grantor under the Pledge
and Security Agreement in order to induce the Holders to acquire the Notes and
maintain the Indebtedness evidenced thereby as consideration therefor;

        NOW, THEREFORE, the undersigned agrees, for the benefit of each Secured
Party, as follows:

        SECTION 1. In accordance with the Pledge and Security Agreement, the
undersigned by its signature below becomes a Grantor under the Pledge and
Security Agreement with the same force and effect as if it were an original
signatory thereto as a Grantor and the undersigned hereby

                (a) agrees to all the terms and provisions of the Pledge and
        Security Agreement applicable to it as a Grantor thereunder;

                (b) assigns and pledges to the Collateral Agent for its benefit
        and the ratable benefit of each of the Secured Parties, and grants to
        the Collateral Agent for its benefit and the ratable benefit of each of
        the Secured Parties, a security interest in all of the following,
        whether now or hereafter existing or acquired by the undersigned (its
        "Collateral"):

                        (i) (A) all investment property in which the undersigned
                has an interest (including the Capital Stock of each issuer of
                such Capital Stock described in Schedule I hereto the
                undersigned) and (B) all other Capital Stock which are interests
                in limited liability companies or partnerships in which the
                undersigned has an interest (including the Capital Stock of each
                issuer of such Capital Stock described in Schedule I hereto), in
                each case together with Dividends and Distributions payable in
                respect of the Collateral described in the foregoing clauses
                (b)(i) and (b)(ii);

                        (ii) all goods, including equipment and inventory;

                        (iii) all accounts, contracts, contract rights, chattel
                paper, documents, instruments, promissory notes and general
                intangibles (including tax refunds and payment intangibles) of
                the undersigned, whether or not arising out of or in connection
                with the sale or lease of goods or the rendering of services,
                and all

                                       -2-

<PAGE>

                rights of the undersigned now or hereafter existing in and to
                all security agreements, guaranties, leases and other contracts
                securing or otherwise relating to any such accounts, contracts,
                contract rights, chattel paper, documents, instruments,
                promissory notes, general intangibles and payment intangibles
                (any and all such accounts, contracts, contract rights, chattel
                paper, documents, instruments, promissory notes and general
                intangibles being the "Receivables", and any and all such
                security agreements, guaranties, leases and other contracts
                being the "Related Contracts");

                        (iv) all deposit accounts of the undersigned and all
                cash, checks, drafts, notes, bills of exchange, money orders and
                other like instruments, if any, now owned or hereafter acquired,
                held therein (or in sub-accounts thereof) and all certificates
                and instruments, if any, from time to time representing or
                evidencing such investments, and all interest, earnings and
                proceeds in respect thereof;

                        (v) all Intellectual Property Collateral of the
                undersigned;

                        (vi) letter of credit rights;

                        (vii) all commercial tort claims in which such Grantor
                has rights (including as a plaintiff);

                        (viii) all books, records, writings, data bases,
                information and other property relating to, used or useful in
                connection with, evidencing, embodying, incorporating or
                referring to, any of the foregoing in this Section;

                        (ix) all of the undersigned's other property and rights
                of every kind and description and interests therein; and

                        (x) all products, offspring, rents, issues, profits,
                returns, income, supporting obligations and proceeds of and from
                any and all of the foregoing Collateral (including proceeds
                which constitute property of the types described in subclauses
                (b)(i) through (b)(x), proceeds deposited from time to time in
                any lock box or deposit account of the undersigned, and, to the
                extent not otherwise included, all payments under insurance
                (whether or not the Collateral Agent is the loss payee thereof),
                or any indemnity, warranty or guaranty, payable by reason of
                loss or damage to or otherwise with respect to any of the
                foregoing Collateral);

        provided, however, that "Collateral" shall not include (a) any general
        intangibles or other rights arising under any contracts or licenses
        (other than, in each of the foregoing cases, any right to receive
        payments) or other documents described in such clause as to which the
        grant of a security interest would constitute a violation of a valid and
        enforceable restriction in favor of a third party on such grant, unless
        and until any required consents shall have been obtained; (b) investment
        property consisting of Capital Stock of an issuer

                                       -3-

<PAGE>

        that is a Foreign Subsidiary of such Grantor, in excess of 65% of the
        total combined voting power of all Capital Stock of each such Foreign
        Subsidiary; (c) the Sinking Fund Collateral Account and (d) any Capital
        Stock and other securities of a Subsidiary to the extent that the pledge
        of such Capital Stock and other securities results in the Issuer being
        required to file separate financial statements of each Subsidiary with
        the SEC, but only to the extent necessary to not be subject to such
        requirement. Each Grantor agrees to use reasonable efforts to obtain any
        such required consent in respect of the general intangibles or other
        rights referred to above in clause (b)(i);

                (c) agrees that each of the Schedules attached hereto shall be
        deemed to be a Schedule thereto; and

                (d) represents and warrants that the representations and
        warranties made by it as a Grantor thereunder are true and correct on
        and as of the date hereof.

In furtherance of the foregoing, each reference to a "Grantor" or "Additional
Grantor" in the Pledge and Security Agreement shall be deemed to include the
undersigned.

        SECTION 2. The undersigned hereby represents and warrants that this
Supplement has been duly authorized, executed and delivered by the undersigned
and constitutes a legal, valid and binding obligation of the undersigned,
enforceable against it in accordance with its terms.

        SECTION 3. Except as expressly supplemented hereby, the Pledge and
Security Agreement shall remain in full force and effect in accordance with its
terms.

        SECTION 4. In the event any one or more of the provisions contained in
this Supplement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and in the Pledge and Security Agreement shall not in any way be affected
or impaired.

        SECTION 5. Without limiting the provisions of the Indenture (or any
other Related Document, including the Pledge and Security Agreement), the
undersigned agrees to reimburse the Collateral Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including reasonable
attorneys' fees and expenses of the Collateral Agent.

        SECTION 6. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. THIS SUPPLEMENT, THE PLEDGE
AND SECURITY AGREEMENT AND THE OTHER RELATED DOCUMENTS CONSTITUTE THE ENTIRE
UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND THEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

                                       -4-

<PAGE>

        SECTION 7. This Supplement hereby incorporates by reference the
provisions of the Pledge and Security Agreement, which provisions are deemed to
be a part hereof, and this Supplement shall be deemed to be a part of the Pledge
and Security Agreement. Unless otherwise defined herein or the context otherwise
requires, terms used in this Supplement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Pledge and
Security Agreement.

        SECTION 8. This Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of
which shall constitute together but one and the same agreement.

                                       -5-

<PAGE>

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

                                             [NAME OF ADDITIONAL GRANTOR], a
                                              ------------ -------------

                                             By :
                                                 -------------------------------
                                                 Name:
                                                 Title:

ACKNOWLEDGED AND ACCEPTED BY:

U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent

By :

    ----------------------------
    Name:
    Title:

                                       -6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]