Document:

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                                                                   Exhibit 10.13

                                                                       EXHIBIT A

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                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                                 printCafe, Inc.

                         and certain of its Subsidiaries

                                   in favor of

                               Iris Graphics Inc.

                          Dated as of December 31, 2001

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                                Table of Contents

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                                                                                                                PAGE

<S>              <C>                                                                                         <C>
SECTION 1.        DEFINED TERMS...................................................................................1
         1.1      Definitions.....................................................................................1
         1.2      Other Definitional Provisions...................................................................4

SECTION 2.        Guarantee.......................................................................................4
         2.1      Guarantee.......................................................................................4
         2.2      Right of Contribution...........................................................................5
         2.3      No Subrogation..................................................................................5
         2.4      Amendments, etc. with respect to the Borrower Obligations.......................................5
         2.5      Guarantee Absolute and Unconditional............................................................6
         2.6      Reinstatement...................................................................................6
         2.7      Payments........................................................................................6

SECTION 3.        GRANT OF SECURITY INTEREST......................................................................6

SECTION 4.        REPRESENTATIONS AND WARRANTIES..................................................................7
         4.1      Title; No Other Liens...........................................................................7
         4.2      Perfected First Priority Liens..................................................................8
         4.3      Jurisdiction of Organization; Chief Executive Office............................................8
         4.4      Inventory and Equipment.........................................................................8
         4.5      Farm Products...................................................................................8
         4.6      Investment Property.............................................................................8
         4.7      Receivables.....................................................................................9
         4.8      Contracts.......................................................................................9
         4.9      Intellectual Property...........................................................................9

SECTION 5.        COVENANTS......................................................................................10
         5.1      Delivery of Instruments, Certificated Securities and Chattel Paper.............................10
         5.2      Maintenance of Insurance.......................................................................10
         5.3      Payment of Obligations.........................................................................10
         5.4      Maintenance of Perfected Security Interest; Further Documentation..............................11
         5.5      Changes in Locations, Name, etc................................................................11
         5.6       Notices.......................................................................................11
         5.7      Investment Property............................................................................11
         5.8      Receivables....................................................................................12
         5.9      Contracts......................................................................................12
         5.10     Intellectual Property..........................................................................13

SECTION 6.        REMEDIAL PROVISIONS............................................................................14
         6.1      Certain Matters Relating to Receivables........................................................14
         6.2      Communications with Obligors; Grantors Remain Liable...........................................14
         6.3      Pledged Stock..................................................................................15
         6.4      Proceeds to be Turned Over To Lender...........................................................16
         6.5      Application of Proceeds........................................................................16
         6.6      Code and Other Remedies........................................................................16
         6.7      Registration Rights............................................................................17
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<S>              <C>                                                                                         <C>
         6.8      Deficiency.....................................................................................17

SECTION 7.        THE LENDER.....................................................................................18
         7.1      The Lender's Appointment as Attorney-in-Fact, etc..............................................18
         7.2      Duty of the Lender.............................................................................19
         7.3      Execution of Financing Statements..............................................................19
         7.4      Authority of the Lender........................................................................19

SECTION 8.        MISCELLANEOUS..................................................................................20
         8.1      Amendments in Writing..........................................................................20
         8.2      Notices........................................................................................20
         8.3      No Waiver by Course of Conduct; Cumulative Remedies............................................20
         8.4      Enforcement Expenses; Indemnification..........................................................20
         8.5      Successors and Assigns.........................................................................20
         8.6      Set-Off........................................................................................20
         8.7      Counterparts...................................................................................21
         8.8      Severability...................................................................................21
         8.9      Section Headings...............................................................................21
         8.10     Integration....................................................................................21
         8.11     GOVERNING LAW..................................................................................21
         8.12     Submission To Jurisdiction; Waivers............................................................21
         8.13     Acknowledgements...............................................................................22
         8.14     Additional Grantors............................................................................22
         8.15     Releases.......................................................................................22
         8.16     Prior Liens....................................................................................22
         8.17     WAIVER OF JURY TRIAL...........................................................................23
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SCHEDULES
---------

Schedule 1........Notice Addresses
Schedule 2........Investment Property
Schedule 3........Perfection Matters
Schedule 4........Jurisdictions of Organization and Chief Executive Offices
Schedule 5........Inventory and Equipment Locations
Schedule 6........Intellectual Property
Schedule 7........Material Contracts

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                       GUARANTEE AND COLLATERAL AGREEMENT

                  GUARANTEE AND COLLATERAL AGREEMENT, dated as of December 31,
2001, made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, the "GRANTORS"), in favor of
Iris Graphics Inc., as Lender (the "LENDER"), party to the Credit Agreement,
dated as of December 31, 2001 (as amended, supplemented or otherwise modified
from time to time, the "CREDIT AGREEMENT"), between printCafe, Inc. (the
"BORROWER") and the Lender.

                              W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, pursuant to the Credit Agreement, the Lender has
agreed to make a Term Loan to the Borrower upon the terms and subject to the
conditions set forth therein;

                  WHEREAS, the Borrower is a member of an affiliated group of
companies that includes each other Grantor;

                  WHEREAS, the proceeds of the Term Loan under the Credit
Agreement will be used in part to enable the Borrower to make valuable transfers
to one or more of the other Grantors in connection with the operation of their
respective businesses;

                  WHEREAS, the Borrower and the other Grantors are engaged in
related businesses, and each Grantor will derive substantial direct and indirect
benefit from the making of the Term Loan under the Credit Agreement; and

                  WHEREAS, it is a condition precedent to the obligation of the
Lender to make the Term Loan to the Borrower under the Credit Agreement that the
Grantors shall have executed and delivered this Agreement to the Lender;

                  NOW, THEREFORE, in consideration of the premises and to induce
the Lender to enter into the Credit Agreement and to make the Term Loan to the
Borrower thereunder, each Grantor hereby agrees with the Lender as follows:

                            SECTION 1. DEFINED TERMS

         1.1 DEFINITIONS. (a). Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement, and the following terms are used herein as defined in the
New York UCC: Accounts, Certificated Security, Chattel Paper, Documents,
Equipment, Farm Products, General Intangibles, Instruments, Inventory,
Letter-of-Credit Rights and Supporting Obligations.

         (b) The following terms shall have the following meanings:

                  "AGREEMENT": this Guarantee and Collateral Agreement, as the
same may be amended, supplemented or otherwise modified from time to time.

                  "BORROWER OBLIGATIONS": the collective reference to the unpaid
principal of and interest (including, without limitation, any PIK Interest) on
the Term Loan and all other obligations and liabilities of the Borrower
(including, without limitation, interest accruing at the then applicable rate
provided in the Credit Agreement after the maturity of the Loan and interest
accruing at the then applicable rate provided

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in the Credit Agreement after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) to the Lender, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, the Credit
Agreement, this Agreement, the other Loan Documents, or any other document
(other than the Warrant) made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all fees and disbursements of counsel to the Lender that are
required to be paid by the Borrower pursuant to the terms of any of the
foregoing agreements).

                  "COLLATERAL": as defined in Section 3.

                  "COLLATERAL ACCOUNT": any collateral account established by
the Lender as provided in Section 6.1 or 6.4.

                  "CONTRACTS": the material contracts and agreements listed in
SCHEDULE 7, as the same may be amended, supplemented or otherwise modified from
time to time, including, without limitation, (i) all rights of any Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of any Grantor to damages arising thereunder and
(iii) all rights of any Grantor to perform and to exercise all remedies
thereunder.

                  "COPYRIGHTS": (i) all copyrights arising under the laws of the
United States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished (including,
without limitation, those listed in SCHEDULE 6), all registrations and
recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United
States Copyright Office, and (ii) the right to obtain all renewals thereof.

                  "COPYRIGHT LICENSES": any written agreement naming any Grantor
as licensor or licensee (including, without limitation, those listed in SCHEDULE
6), granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

                  "DEPOSIT ACCOUNT": as defined in the Uniform Commercial Code
of any applicable jurisdiction and, in any event, including, without limitation,
any demand, time, savings, passbook or like account maintained with a depositary
institution.

                  "FOREIGN SUBSIDIARY": any Subsidiary organized under the laws
of any jurisdiction outside the United States of America.

                  "FOREIGN SUBSIDIARY VOTING STOCK": the voting Capital Stock of
any Foreign Subsidiary.

                  "GUARANTOR OBLIGATIONS": with respect to any Guarantor, all
obligations and liabilities of such Guarantor which may arise under or in
connection with this Agreement (including, without limitation, Section 2) or any
other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Lender that are required to be paid by such
Guarantor pursuant to the terms of this Agreement or any other Loan Document).

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                  "GUARANTORS": the collective reference to each Grantor other
than the Borrower.

                  "INTELLECTUAL PROPERTY": the collective reference to all
rights, priorities and privileges relating to intellectual property, whether
arising under United States, multinational or foreign laws or otherwise,
including, without limitation, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all
rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

                  "INTERCOMPANY NOTE": any promissory note evidencing loans made
by any Grantor to the Borrower or any of its Subsidiaries.

                  "INVESTMENT PROPERTY": the collective reference to (i) all
"investment property" as such term is defined in Section 9-102(a)(49) of the New
York UCC (other than any Foreign Subsidiary Voting Stock excluded from the
definition of "Pledged Stock") and (ii) whether or not constituting "investment
property" as so defined, all Pledged Notes and all Pledged Stock.

                  "ISSUERS": the collective reference to each issuer of any
Investment Property.

                  "NEW YORK UCC": the Uniform Commercial Code as from time to
time in effect in the State of New York.

                  "OBLIGATIONS": (i) in the case of the Borrower, the Borrower
Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

                  "PATENTS": (i) all letters patent of the United States, any
other country or any political subdivision thereof, all reissues and extensions
thereof and all goodwill associated therewith, including, without limitation,
any of the foregoing referred to in SCHEDULE 6, (ii) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in SCHEDULE 6, and (iii) all rights to obtain
any reissues or extensions of the foregoing.

                  "PATENT LICENSE": all agreements, whether written or oral,
providing for the grant by or to any Grantor of any right to manufacture, use or
sell any invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in SCHEDULE 6.

                  "PLEDGED NOTES": all promissory notes listed on SCHEDULE 2,
all Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (other than promissory notes
issued in connection with extensions of trade credit by any Grantor in the
ordinary course of business).

                  "PLEDGED STOCK": the shares of Capital Stock listed on
SCHEDULE 2, together with any other shares, stock certificates, options,
interests or rights of any nature whatsoever in respect of the Capital Stock of
any Person that may be issued or granted to, or held by, any Grantor while this
Agreement is in effect; PROVIDED that in no event shall more than 66% of the
total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be
required to be pledged hereunder.

                  "PROCEEDS": all "proceeds" as such term is defined in Section
9-102(a)(64) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

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                                                                               4

                  "RECEIVABLE": any right to payment for goods sold or leased or
for services rendered, whether or not such right is evidenced by an Instrument
or Chattel Paper and whether or not it has been earned by performance
(including, without limitation, any Account).

                  "SECURITIES ACT": the Securities Act of 1933, as amended.

                  "TRADEMARKS": (i) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, including, without limitation, any of the foregoing
referred to in SCHEDULE 6, and (ii) the right to obtain all renewals thereof.

                  "TRADEMARK LICENSE": any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in SCHEDULE 6.

         1.2 OTHER DEFINITIONAL PROVISIONS. (a) The words "hereof," "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

         (b) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

         (c) Where the context requires, terms relating to the Collateral or any
part thereof, when used in relation to a Grantor, shall refer to such Grantor's
Collateral or the relevant part thereof.

                              SECTION 2. GUARANTEE

         2.1 GUARANTEE. (a) Each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees to the Lender and its
respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Borrower Obligations.

         (b) Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under the
other Loan Documents shall in no event exceed the amount which can be guaranteed
by such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

         (c) Each Guarantor agrees that the Borrower Obligations may at any time
and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Lender.

         (d) The guarantee contained in this Section 2 shall remain in full
force and effect until all the Borrower Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full and the Commitments shall be terminated,
notwithstanding

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that from time to time during the term of the Credit Agreement the Borrower may
be free from any Borrower Obligations.

         (e) No payment made by the Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by the Lender from the
Borrower, any of the Guarantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Borrower Obligations shall be deemed to modify, reduce, release or otherwise
affect the liability of any Guarantor hereunder which shall, notwithstanding any
such payment (other than any payment made by such Guarantor in respect of the
Borrower Obligations or any payment received or collected from such Guarantor in
respect of the Borrower Obligations), remain liable for the Borrower Obligations
up to the maximum liability of such Guarantor hereunder until the Borrower
Obligations are paid in full.

         2.2 RIGHT OF CONTRIBUTION. Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor's right of contribution
shall be subject to the terms and conditions of Section 2.3. The provisions of
this Section 2.2 shall in no respect limit the obligations and liabilities of
any Guarantor to the Lender, and each Guarantor shall remain liable to the
Lender for the full amount guaranteed by such Guarantor hereunder.

         2.3 NO SUBROGATION. Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by the Lender,
no Guarantor shall be entitled to be subrogated to any of the rights of the
Lender against the Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Lender for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing to
the Lender by the Borrower on account of the Borrower Obligations are paid in
full and the Commitments are terminated. If any amount shall be paid to any
Guarantor on account of such subrogation rights at any time when all of the
Borrower Obligations shall not have been paid in full, such amount shall be held
by such Guarantor in trust for the Lender, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Lender in the exact form received by such Guarantor (duly indorsed by
such Guarantor to the Lender, if required), to be applied against the Borrower
Obligations, whether matured or unmatured, in such order as the Lender may
determine.

         2.4 AMENDMENTS, ETC. WITH RESPECT TO THE BORROWER OBLIGATIONS. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Lender may be rescinded by the Lender and any of the
Borrower Obligations continued, and the Borrower Obligations, or the liability
of any other Person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Lender, and the Credit
Agreement and the other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Lender may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held
by the Lender for the payment of the Borrower Obligations may be sold,
exchanged, waived, surrendered or released. The Lender shall not have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

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         2.5 GUARANTEE ABSOLUTE AND UNCONDITIONAL. Each Guarantor waives any and
all notice of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by the Lender upon the guarantee
contained in this Section 2 or acceptance of the guarantee contained in this
Section 2; the Borrower Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one
hand, and the Lender, on the other hand, likewise shall be conclusively presumed
to have been had or consummated in reliance upon the guarantee contained in this
Section 2. Each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower or any of
the Guarantors with respect to the Borrower Obligations. Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (a) the validity or enforceability of the Credit Agreement or
any other Loan Document, any of the Borrower Obligations or any other collateral
security therefor or guarantee or right of offset with respect thereto at any
time or from time to time held by the Lender, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by the Borrower or any other Person against
the Lender, or (c) any other circumstance whatsoever (with or without notice to
or knowledge of the Borrower or such Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Borrower for the
Borrower Obligations, or of such Guarantor under the guarantee contained in this
Section 2, in bankruptcy or in any other instance. When making any demand
hereunder or otherwise pursuing its rights and remedies hereunder against any
Guarantor, the Lender may, but shall be under no obligation to, make a similar
demand on or otherwise pursue such rights and remedies as it may have against
the Borrower, any other Guarantor or any other Person or against any collateral
security or guarantee for the Borrower Obligations or any right of offset with
respect thereto, and any failure by the Lender to make any such demand, to
pursue such other rights or remedies or to collect any payments from the
Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any
release of the Borrower, any other Guarantor or any other Person or any such
collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Lender against any Guarantor. For the purposes hereof
"demand" shall include the commencement and continuance of any legal
proceedings.

         2.6 REINSTATEMENT. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations is rescinded or
must otherwise be restored or returned by the Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or any
Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, the Borrower or any
Guarantor or any substantial part of its property, or otherwise, all as though
such payments had not been made.

         2.7 PAYMENTS. Each Guarantor hereby guarantees that payments hereunder
will be paid to the Lender without set-off or counterclaim in Dollars to an
account specified by the Lender.

                     SECTION 3. GRANT OF SECURITY INTEREST

                  Each Grantor hereby assigns, transfers and grants to the
Lender a security interest in all of the following property now owned or at any
time hereafter acquired by such Grantor or in which such Grantor now has or at
any time in the future may acquire any right, title or interest (collectively,
the "COLLATERAL"), as collateral security for the prompt and complete payment
and performance when due (whether at the stated maturity, by acceleration or
otherwise) of such Grantor's Obligations,:

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         (a) all Accounts;

         (b) all Chattel Paper;

         (c) all Contracts;

         (d) all Deposit Accounts;

         (e) all Documents;

         (f) all Equipment;

         (g) all General Intangibles;

         (h) all Instruments;

         (i) all Intellectual Property;

         (j) all Inventory;

         (k) all Investment Property;

         (l) all Letter-of-Credit Rights;

         (m) all other property not otherwise described above;

         (n) all books and records pertaining to the Collateral; and

         (o) to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing; provided, however, that notwithstanding any of the other provisions
set forth in this Section 3, this Agreement shall not constitute a grant of a
security interest in (i) the Shareholder Notes and (ii) any property to the
extent that such grant of a security interest is prohibited by any Requirements
of Law of a Governmental Authority, requires a consent not obtained of any
Governmental Authority pursuant to such Requirement of Law or is prohibited by,
or constitutes a breach or default under or results in the termination of or
requires any consent not obtained under, any contract, license, agreement,
instrument or other document evidencing or giving rise to such property or, in
the case of any Investment Property, Pledged Stock or Pledged Note, any
applicable shareholder or similar agreement, except to the extent that such
Requirement of Law or the term in such contract, license, agreement, instrument
or other document or shareholder or similar agreement providing for such
prohibition, breach, default or termination or requiring such consent is
ineffective under applicable law.

                   SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Lender to enter into the Credit Agreement and to
induce the Lenders to make the Term Loan to the Borrower thereunder, each
Grantor hereby represents and warrants to the Lender that:

         4.1 TITLE; NO OTHER LIENS. Except for the security interest granted to
the Lender pursuant to this Agreement and the Permitted Liens, such Grantor owns
or has the right to use each item of the Collateral

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free and clear of any and all Liens or claims of others. No financing statement
or other public notice with respect to all or any part of the Collateral is on
file or of record in any public office, except such as have been filed in favor
of the Lender, pursuant to this Agreement or as are permitted by the Credit
Agreement. For the avoidance of doubt, it is understood and agreed that any
Grantor may, as part of its business, grant licenses to third parties to use
Intellectual Property owned by, licensed to, or developed by a Grantor. For
purposes of this Agreement and the other Loan Documents, such licensing
activity, and any restrictions arising as a result therefrom, shall not
constitute a "Lien" or "claim of others" on, or an impairment of, such
Intellectual Property. The Lender understands that any such licenses may be
exclusive to the applicable licensees, and such exclusivity provisions, may
limit the ability of the Lender to utilize, sell, lease or transfer the related
Intellectual Property or otherwise realize value from such Intellectual Property
pursuant hereto. The Lender further understands that a Grantor may be granted
licenses by third parties to use Intellectual Property, which licenses may limit
the ability of Lender to utilize, sell, Lease or transfer the related
Intellectual Property or otherwise realize value from such Intellectual Property
pursuant hereto. For purposes of this Agreement and the other Loan Documents,
such licensing activity and the limitations imposed thereby shall not constitute
a "Lien" or "claim of others" on, or an impairment of, such Intellectual
Property.

         4.2 PERFECTED FIRST PRIORITY LIENS. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on SCHEDULE 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Lender in completed and
duly executed form) will constitute valid perfected security interests in all of
the Collateral in favor of the Lender, as collateral security for such Grantor's
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except for Permitted Liens.

         4.3 JURISDICTION OF ORGANIZATION; CHIEF EXECUTIVE OFFICE. On the date
hereof, such Grantor's jurisdiction of organization, identification number from
the jurisdiction of organization (if any), and the location of such Grantor's
chief executive office or sole place of business or principal residence, as the
case may be, are specified on SCHEDULE 4. Such Grantor has furnished to the
Lender a certified charter, certificate of incorporation or other organization
document, of a date which shall not be prior to September 1, 2001, and long-form
good standing certificate as of a date which is recent to the date hereof.

         4.4 INVENTORY AND EQUIPMENT. On the date hereof, the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on SCHEDULE
5.

         4.5 FARM PRODUCTS. None of the Collateral constitutes, or is the
Proceeds of, Farm Products.

         4.6 INVESTMENT PROPERTY. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock, if less, 66% of the outstanding Foreign
Subsidiary Voting Stock of each relevant Issuer.

         (b) All the shares of the Pledged Stock have been duly and validly
issued and are fully paid and nonassessable.

         (c) Each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

<PAGE>
                                                                               9

         (d) Such Grantor is the record and beneficial owner of, and has good
and marketable title to, the Investment Property pledged by it hereunder, free
of any and all Liens or options in favor of, or claims of, any other Person,
except the security interest created by this Agreement.

         4.7 RECEIVABLES. (a) No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Lender.

         (b) None of the obligors on any Receivables in an amount not exceeding
$500,000 is a Governmental Authority.

         (c) The amounts represented by such Grantor to the Lender from time to
time as owing to such Grantor in respect of the Receivables will at such times
be accurate.

         4.8 CONTRACTS. (a) No consent of any party (other than such Grantor) to
any Contract is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement, except as has been
obtained.

         (b) Each Contract is in full force and effect and constitutes a valid
and legally enforceable obligation of the parties thereto, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

         (c) No consent or authorization of, filing with or other act by or in
respect of any Governmental Authority is required in connection with the
execution, delivery, performance, validity or enforceability of any of the
Contracts by any party thereto other than those which have been duly obtained,
made or performed, are in full force and effect and do not subject the scope of
any such Contract to any material adverse limitation, either specific or general
in nature.

         (d) Neither such Grantor nor (to the best of such Grantor's knowledge)
any of the other parties to the Contracts is in default in the performance or
observance of any of the terms thereof.

         (e) The right, title and interest of such Grantor in, to and under the
Contracts are not subject to any defenses, offsets, counterclaims or claims.

         (f) Such Grantor has delivered or made available to the Lender a
complete and correct copy of each Contract, including all amendments,
supplements and other modifications thereto.

         (g) No amount payable to such Grantor under or in connection with any
Contract is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Lender.

         (h) None of the parties to any Contract is a Governmental Authority.

         4.9 INTELLECTUAL PROPERTY. (a) SCHEDULE 6 lists all registered
Intellectual Property owned by such Grantor in its own name on the date hereof.

         (b) On the date hereof, all material Intellectual Property owned by the
Grantor is valid, subsisting, unexpired and enforceable, has not been abandoned
and does not, to the Grantor's knowledge, infringe the intellectual property
rights of any other Person.

<PAGE>
                                                                              10

         (c) Except as set forth in SCHEDULE 6, on the date hereof, none of the
Intellectual Property is the subject of any licensing or franchise agreement
pursuant to which such Grantor is the licensor or franchisor.

         (d) No holding, decision or judgment has been rendered by any
Governmental Authority, against any Grantor as a party to any proceeding giving
rise to such holding, decision or judgment, which would limit, cancel or
question the validity of, or such Grantor's rights in, any Intellectual Property
in any respect that could reasonably be expected to have a Material Adverse
Effect.

         (e) No action or proceeding is pending, or, to the knowledge of such
Grantor, threatened, on the date hereof against any Grantor (i) seeking to
limit, cancel or question the validity of any Intellectual Property owned by any
Grantor or such Grantor's ownership interest therein, or (ii) which, if
adversely determined, would have a material adverse effect on the value of any
Intellectual Property.

                              SECTION 5. COVENANTS

                  Each Grantor covenants and agrees with the Lender that, from
and after the date of this Agreement until the Obligations shall have been paid
in full and the Commitment shall have terminated:

         5.1 DELIVERY OF INSTRUMENTS, CERTIFICATED SECURITIES AND CHATTEL PAPER.
If any amount payable under or in connection with any of the Collateral shall be
or become evidenced by any Instrument, Certificated Security or Chattel Paper,
such Instrument, Certificated Security or Chattel Paper shall be immediately
delivered to the Lender, duly indorsed in a manner satisfactory to the Lender,
to be held as Collateral pursuant to this Agreement.

         5.2 MAINTENANCE OF INSURANCE. (a) Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory and Equipment against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Lender and (ii) to the
extent requested by the Lender, insuring such Grantor and the Lender against
liability for personal injury and property damage relating to such Inventory and
Equipment, such policies to be in such form and amounts and having such coverage
as may be reasonably satisfactory to the Lender.

         (b) All such insurance shall (i) provide that no cancellation, material
reduction in amount or material change in coverage thereof shall be effective
until at least 30 days after receipt by the Lender of written notice thereof,
(ii) name the Lender as insured party or loss payee, (iii) if reasonably
requested by the Lender, include a breach of warranty clause and (iv) be
reasonably satisfactory in all other respects to the Lender.

         (c) The Borrower shall deliver to the Lender a report of a reputable
insurance broker with respect to such insurance substantially concurrently with
each delivery of the Borrower's audited annual financial statements and such
supplemental reports with respect thereto as the Lender may from time to time
reasonably request.

         5.3 PAYMENT OF OBLIGATIONS. Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed
upon the Collateral or in respect of income or profits therefrom, as well as all
claims of any kind (including, without limitation, claims for labor, materials
and supplies) against or with respect to the Collateral, except that no such
charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings, reserves in conformity with
GAAP with respect thereto have been provided on the books of such Grantor and
such proceedings could

<PAGE>
                                                                              11

not reasonably be expected to result in the sale, forfeiture or loss of any
material portion of the Collateral or any interest therein.

         5.4 MAINTENANCE OF PERFECTED SECURITY INTEREST; FURTHER DOCUMENTATION.
(a) Such Grantor shall maintain the security interest created by this Agreement
as a perfected security interest having at least the priority described in
Section 4.2 and shall defend such security interest against the claims and
demands of all Persons whomsoever, subject to the rights of such Grantor under
the Loan Documents to dispose of the Collateral.

         (b) Such Grantor will furnish to the Lender from time to time
statements and schedules further identifying and describing the assets and
property of such Grantor and such other reports in connection therewith as the
Lender may reasonably request, all in reasonable detail.

         (c) At any time and from time to time, upon the written request of the
Lender, and at the sole expense of such Grantor, such Grantor will promptly and
duly execute and deliver, and have recorded, such further instruments and
documents and take such further actions as the Lender may reasonably request for
the purpose of obtaining or preserving the full benefits of this Agreement and
of the rights and powers herein granted, including, without limitation, (i)
filing any financing or continuation statements under the Uniform Commercial
Code (or other similar laws) in effect in any jurisdiction with respect to the
security interests created hereby and (ii) in the case of Investment Property,
Deposit Accounts, Letter-of-Credit Rights and any other relevant Collateral,
taking any actions necessary to enable the Lender to obtain "control" (within
the meaning of the applicable Uniform Commercial Code) with respect thereto.

         5.5 CHANGES IN LOCATIONS, NAME, ETC. Such Grantor will not, except upon
15 days' prior written notice and delivery to the Lender of (a) all additional
executed financing statements and other documents reasonably requested by the
Lender to maintain the validity, perfection and priority of the security
interests provided for herein and (b) if applicable, a written supplement to
SCHEDULE 5 showing any additional location at which Inventory or Equipment shall
be kept:

         (i) change its jurisdiction of organization or the location of its
     chief executive office or sole place of business or principal residence
     from that referred to in Section 4.3; or

         (ii) change its name.

         5.6 NOTICES. Such Grantor will advise the Lender promptly, in
reasonable detail, of:

         (a) any Lien (other than security interests created hereby or Liens
permitted under the Credit Agreement) on any of the Collateral which would
adversely affect the ability of the Lender to exercise any of its remedies
hereunder; and

         (b) of the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.

         5.7 INVESTMENT PROPERTY. (a) If such Grantor shall become entitled to
receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Lender, hold the
same in trust for the Lender and deliver the same forthwith to the Lender in the
exact form received, duly indorsed by such Grantor to the Lender, if required,
together with an undated stock power covering

<PAGE>
                                                                              12

such certificate duly executed in blank by such Grantor and with, if the Lender
so requests, signature guaranteed, to be held by the Lender, subject to the
terms hereof, as additional collateral security for the Obligations. Any sums
paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Lender to be held by it
hereunder as additional collateral security for the Obligations, and in case any
distribution of capital shall be made on or in respect of the Investment
Property or any property shall be distributed upon or with respect to the
Investment Property pursuant to the recapitalization or reclassification of the
capital of any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Lender, be delivered to the Lender to be held by it hereunder as
additional collateral security for the Obligations. If any sums of money or
property so paid or distributed in respect of the Investment Property shall be
received by such Grantor, such Grantor shall, until such money or property is
paid or delivered to the Lender, hold such money or property in trust for the
Lender, segregated from other funds of such Grantor, as additional collateral
security for the Obligations.

         (b) Without the prior written consent of the Lender, such Grantor will
not (i) vote to enable, or take any other action to permit, any Issuer to issue
any Capital Stock of any nature or to issue any other securities convertible
into or granting the right to purchase or exchange for any Capital Stock of any
nature of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Investment Property or
Proceeds thereof (except pursuant to a transaction expressly permitted by the
Credit Agreement), (iii) create, incur or permit to exist any Lien or option in
favor of, or any claim of any Person with respect to, any of the Investment
Property or Proceeds thereof, or any interest therein, except for the security
interests created by this Agreement or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Lender to
sell, assign or transfer any of the Investment Property or Proceeds thereof.

         (c) In the case of each Grantor which is an Issuer, such Issuer agrees
that (i) it will be bound by the terms of this Agreement relating to the
Investment Property issued by it and will comply with such terms insofar as such
terms are applicable to it, (ii) it will notify the Lender promptly in writing
of the occurrence of any of the events described in Section 5.7(a) with respect
to the Investment Property issued by it and (iii) the terms of Sections 6.3(c)
and 6.7 shall apply to it, MUTATIS MUTANDIS, with respect to all actions that
may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the
Investment Property issued by it.

         5.8 RECEIVABLES. (a) Other than in the ordinary course of business
consistent with its past practice, such Grantor will not (i) grant any extension
of the time of payment of any Receivable, (ii) compromise or settle any
Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Receivable, (iv) allow any
credit or discount whatsoever on any Receivable or (v) amend, supplement or
modify any Receivable in any manner that could adversely affect the value
thereof.

         (b) Such Grantor will deliver to the Lender a copy of each material
demand, notice or document received by it that questions or calls into doubt the
validity or enforceability of more than 5% of the aggregate amount of the then
outstanding Receivables.

         5.9 CONTRACTS. (a) Such Grantor will, to the extent consistent with
prudent business practices, perform and comply in all material respects with all
its obligations under the Contracts.

         (b) Such Grantor will not amend, modify, terminate or waive any
provision of any Contract in any manner which could reasonably be expected to
materially adversely affect the value of such Contract as Collateral.

<PAGE>
                                                                              13

         (c) Such Grantor will, to the extent consistent with prudent business
practices, exercise promptly and diligently each and every material right which
it may have under each Contract (other than any right of termination).

         (d) Such Grantor will deliver to the Lender a copy of each material
demand, notice or document received by it relating in any way to any Contract
that questions the validity or enforceability of such Contract.

         5.10 INTELLECTUAL PROPERTY. (a) With respect to each material Trademark
owned by a Grantor, such Grantor will, except to the extent the Grantor
determines, in accordance with prudent business practices, to change the
Trademark associated with such goods or services, or to cease offering the goods
or services with which the Trademark is associated, (i) continue to use such
Trademark on each and every trademark class of goods applicable to its current
line as reflected in its current catalogs, brochures and price lists in order to
maintain such Trademark in full force free from any claim of abandonment for
non-use, (ii) maintain as in the past the quality of products and services
offered under such Trademark, (iii) use such Trademark with the appropriate
notice of registration and all other notices and legends required by applicable
Requirements of Law, (iv) not adopt or use any mark which is confusingly similar
or a colorable imitation of such Trademark unless the Lender shall obtain a
perfected security interest in such mark pursuant to this Agreement, and (v) not
(and not permit any licensee or sublicensee thereof to) do any act or knowingly
omit to do any act whereby such Trademark may become invalidated or impaired in
any way

         (b) Such Grantor will not (and will not authorize any licensee or
sublicensee thereof to) do any act, or omit to do any act, whereby any material
Patent owned by it may become forfeited, abandoned or dedicated to the public in
any jurisdiction where such action or omission could reasonably be expected to
adversely affect the value of such Patent.

         (c) Such Grantor (i) will employ each material Copyright and (ii) will
not (and will not authorize any licensee or sublicensee thereof to) do any act
or knowingly omit to do any act whereby any material portion of the Copyrights
may become invalidated or otherwise impaired. Such Grantor will not and will not
authorize any licensee or sublicense thereof to do any act whereby any material
portion of the Copyrights may fall into the public domain.

         (d) Such Grantor will not (and will not authorize any licensee or
sublicensee thereof to) do any act that knowingly uses any material Intellectual
Property to infringe the intellectual property rights of any other Person.

         (e) Such Grantor will notify the Lender promptly if it knows, or has
reason to know, that any application or registration relating to any material
Intellectual Property owned by it may become forfeited, abandoned or dedicated
to the public, or of any adverse determination or development (including,
without limitation, 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 court or tribunal in any country) regarding such
Grantor's ownership of, or the validity of, any material Intellectual Property
owned by it or such Grantor's right to register the same or to own and maintain
the same.

         (f) Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Intellectual Property 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, such Grantor shall report such
filing to the Lender within five Business Days after the last day of the fiscal
quarter in which such filing occurs. Upon request of the

<PAGE>
                                                                              14

Lender, such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Lender may reasonably
request to evidence the Lender's security interest in any Copyright, Patent or
Trademark and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby.

         (g) Such Grantor will take all reasonable and necessary steps, to the
extent consistent with prudent business practices, including, without
limitation, 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
each application (and to obtain the relevant registration arising from such
application) and to maintain each registration of the material Intellectual
Property owned by Grantor, including, without limitation, filing of applications
for renewal, affidavits of use and affidavits of incontestability.

         (h) In the event that any material Intellectual Property owned by a
Grantor is infringed, misappropriated or diluted by a third party, such Grantor
shall (i) take such actions as such Grantor shall reasonably deem appropriate
under the circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the Lender
after it learns thereof and to the extent consistent with prudent business
practices, sue for infringement, misappropriation or dilution, seek injunctive
relief where appropriate and use reasonable efforts to recover damages for such
infringement, misappropriation or dilution.

                         SECTION 6. REMEDIAL PROVISIONS

         6.1 CERTAIN MATTERS RELATING TO RECEIVABLES. (a) The Lender shall have
the right to make test verifications of the Receivables twice a year (and if an
Event of a Default shall have occurred and be continuing, at any time and from
time to time) in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as
the Lender may require in connection with such test verifications. At any time
and from time to time, upon the Lender's request and at the expense of the
relevant Grantor, such Grantor shall cause independent public accountants or
others satisfactory to the Lender to furnish to the Lender reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Receivables.

         (b) The Lender hereby authorizes each Grantor to collect such Grantor's
Receivables, subject to the Lender's direction and control, and the Lender may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default. If required by the Lender at any time
after the occurrence and during the continuance of an Event of Default, any
payments of Receivables, when collected by any Grantor, (i) shall be forthwith
(and, in any event, within two Business Days) deposited by such Grantor in the
exact form received, duly indorsed by such Grantor to the Lender if required, in
a Collateral Account maintained under the sole dominion and control of the
Lender, subject to withdrawal by the Lender only as provided in Section 6.5, and
(ii) until so turned over, shall be held by such Grantor in trust for the
Lender, segregated from other funds of such Grantor. Each such deposit of
Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

         (c) At the Lender's reasonable request, each Grantor shall deliver to
the Lender all original and other documents evidencing, and relating to, the
agreements and transactions which gave rise to the Receivables, including,
without limitation, all original orders, invoices and shipping receipts.

         6.2 COMMUNICATIONS WITH OBLIGORS; GRANTORS REMAIN LIABLE. (a) Upon the
occurrence and continuance of an Event of Default, the Lender may, in its own
name or in the name of others, or at any

<PAGE>
                                                                              15

time in the name of a Grantor, communicate with obligors under the Receivables
and parties to the Contracts to verify with them to the Lender's satisfaction
the existence, amount and terms of any Receivables or Contracts.

         (b) Upon the request of the Lender at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall notify
obligors on the Receivables and parties to the Contracts that the Receivables
and the Contracts have been assigned to the Lender and that payments in respect
thereof shall be made directly to the Lender.

         (c) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of the Receivables and Contracts to observe and perform
all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto. The Lender shall not have any obligation or liability under any
Receivable (or any agreement giving rise thereto) or Contract by reason of or
arising out of this Agreement or the receipt by the Lender of any payment
relating thereto, nor shall the Lender be obligated in any manner to perform any
of the obligations of any Grantor under or pursuant to any Receivable (or any
agreement giving rise thereto) or Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as
to the sufficiency of any performance by any party thereunder, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

         6.3 PLEDGED STOCK. (a) Unless an Event of Default shall have occurred
and be continuing and the Lender shall have given notice to the relevant Grantor
of the Lender's intent to exercise its corresponding rights pursuant to Section
6.3(b), each Grantor shall be permitted to receive all cash dividends paid in
respect of the Pledged Stock and all payments made in respect of the Pledged
Notes, in each case paid in the normal course of business of the relevant Issuer
and consistent with past practice, to the extent permitted in the Credit
Agreement, and to exercise all voting and corporate or other organizational
rights with respect to the Investment Property; provided, however, that no vote
shall be cast or corporate or other organizational right exercised or other
action taken which, in the Lender's reasonable judgment, would impair the
Collateral or which would be inconsistent with or result in any violation of any
provision of the Credit Agreement, this Agreement or any other Loan Document.

         (b) If an Event of Default shall occur and be continuing and the Lender
shall give notice of its intent to exercise such rights to the relevant Grantor
or Grantors, (i) the Lender shall have the right to receive any and all cash
dividends, payments or other Proceeds paid in respect of the Investment Property
and make application thereof to the Obligations in such order as the Lender may
determine, and (ii) any or all of the Investment Property shall be registered in
the name of the Lender or its nominee, and the Lender or its nominee may
thereafter exercise (x) all voting, corporate and other rights pertaining to
such Investment Property at any meeting of shareholders of the relevant Issuer
or Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Lender of any right, privilege or option pertaining to such Investment
Property, and in connection therewith, the right to deposit and deliver any and
all of the Investment Property with any committee, depositary, transfer agent,
registrar or other designated agency upon such terms and conditions as the
Lender may determine), all without liability except to account for property
actually received by it, but the Lender shall have no duty to any Grantor to
exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

<PAGE>
                                                                              16

         (c) Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with any
instruction received by it from the Lender in writing that (x) states that an
Event of Default has occurred and is continuing and (y) is otherwise in
accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall
be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the Lender.

         6.4 PROCEEDS TO BE TURNED OVER TO LENDER. In addition to the rights of
the Lender specified in Section 6.1 with respect to payments of Receivables, if
an Event of Default shall occur and be continuing, all Proceeds received by any
Grantor consisting of cash, checks and other near-cash items shall be held by
such Grantor in trust for the Lender, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Lender in the exact form received by such Grantor (duly indorsed by such
Grantor to the Lender, if required). All Proceeds received by the Lender
hereunder shall be held by the Lender in a Collateral Account maintained under
its sole dominion and control. All Proceeds while held by the Lender in a
Collateral Account (or by such Grantor in trust for the Lender) shall continue
to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 6.5.

         6.5 APPLICATION OF PROCEEDS. At such intervals as may be agreed upon by
the Borrower and the Lender, or, if an Event of Default shall have occurred and
be continuing, at any time at the Lender's election, the Lender may apply all or
any part of Proceeds constituting Collateral, whether or not held in any
Collateral Account, in payment of the Obligations in such order as the Lender
may elect, and any part of such funds which the Lender elects not so to apply
and deems not required as collateral security for the Obligations shall be paid
over from time to time by the Lender to the Borrower or to whomsoever may be
lawfully entitled to receive the same. Any balance of such Proceeds remaining
after the Obligations shall have been paid in full and the Commitment shall have
terminated, and shall be paid over to the Borrower or to whomsoever may be
lawfully entitled to receive the same.

         6.6 CODE AND OTHER REMEDIES. If an Event of Default shall occur and be
continuing, the Lender may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the New York UCC or any other applicable law.
Without limiting the generality of the foregoing, the Lender, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon any
Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Lender or elsewhere upon such terms and conditions as it may deem advisable
and at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. The Lender shall have the right
upon any such public sale or sales, and, to the extent permitted by law, upon
any such private sale or sales, to purchase the whole or any part of the
Collateral so sold, free of any right or equity of redemption in any Grantor,
which right or equity is hereby waived and released. Each Grantor further
agrees, at the Lender's request, to assemble the Collateral and make it
available to the Lender at places which the Lender shall reasonably select,
whether at such Grantor's premises or elsewhere. The Lender shall apply the net
proceeds of any action taken by it pursuant to this Section 6.6, after deducting
all reasonable costs and expenses of every kind incurred in connection therewith
or incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of the Lender hereunder, including,
without limitation, reasonable attorneys' fees and disbursements,

<PAGE>
                                                                              17

to the payment in whole or in part of the Obligations, in such order as the
Lender may elect, and only after such application and after the payment by the
Lender of any other amount required by any provision of law, including, without
limitation, Section 9-615(a)(3) of the New York UCC, need the Lender account for
the surplus, if any, to any Grantor. To the extent permitted by applicable law,
each Grantor waives all claims, damages and demands it may acquire against the
Lender arising out of the exercise by them of any rights hereunder. If any
notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.

         6.7 REGISTRATION RIGHTS. (a) If the Lender shall determine to exercise
its right to sell any or all of the Pledged Stock pursuant to Section 6.6, and
if in the opinion of the Lender it is necessary or advisable to have the Pledged
Stock, or that portion thereof to be sold, registered under the provisions of
the Securities Act, the relevant Grantor will cause the Issuer thereof to (i)
execute and deliver, and cause the directors and officers of such Issuer to
execute and deliver, all such instruments and documents, and do or cause to be
done all such other acts as may be, in the opinion of the Lender, necessary or
advisable to register the Pledged Stock, or that portion thereof to be sold,
under the provisions of the Securities Act, (ii) use its best efforts to cause
the registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of
the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of the
Lender, 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. Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or "Blue Sky" laws of any and all
jurisdictions which the Lender shall designate and to make available to its
security holders, as soon as practicable, an earnings statement (which need not
be audited) which will satisfy the provisions of Section 11(a) of the Securities
Act.

         (b) Each Grantor recognizes that the Lender may be unable to effect a
public sale of any or all the Pledged Stock, by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws or
otherwise, and may be compelled to resort to one or more private sales thereof
to a restricted group of purchasers which will be obliged to agree, among other
things, to acquire such securities for their own account for investment and not
with a view to the distribution or resale thereof. Each Grantor acknowledges and
agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Lender shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

         (c) Each Grantor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the Pledged Stock pursuant to this Section 6.7 valid and
binding and in compliance with any and all other applicable Requirements of Law.
Each Grantor further agrees that a breach of any of the covenants contained in
this Section 6.7 will cause irreparable injury to the Lender, that the Lender
has no adequate remedy at law in respect of such breach and, as a consequence,
that each and every covenant contained in this Section 6.7 shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no Event of Default has occurred under the
Credit Agreement.

         6.8 DEFICIENCY. Each Grantor shall remain liable for any deficiency if
the proceeds of any sale or other disposition of the Collateral are insufficient
to pay its Obligations and the fees and disbursements of any attorneys employed
by the Lender to collect such deficiency.

<PAGE>
                                                                              18

                             SECTION 7. THE LENDER

         7.1 THE LENDER'S APPOINTMENT AS ATTORNEY-IN-FACT, ETC. (a) Each Grantor
hereby irrevocably constitutes and appoints the Lender and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, for
the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Lender the power and right, on behalf of such Grantor, without notice to or
assent by such Grantor, to do any or all of the following:

         (i) in the name of such Grantor or its own name, or otherwise, take
     possession of and indorse and collect any checks, drafts, notes,
     acceptances or other instruments for the payment of moneys due under
     any Receivable or Contract or with respect to any other Collateral and
     file any claim or take any other action or proceeding in any court of
     law or equity or otherwise deemed appropriate by the Lender for the
     purpose of collecting any and all such moneys due under any Receivable
     or Contract or with respect to any other Collateral whenever payable;

         (ii) in the case of any Intellectual Property, execute and deliver, and
     have recorded, any and all agreements, instruments, documents and
     papers as the Lender may request to evidence the Lender's security
     interest in such Intellectual Property and the goodwill and general
     intangibles of such Grantor relating thereto or represented thereby;

         (iii)pay or discharge taxes and Liens levied or placed on or threatened
     against the Collateral, effect any repairs or any insurance called for
     by the terms of this Agreement and pay all or any part of the premiums
     therefor and the costs thereof;

         (iv) execute, in connection with any sale provided for in Section 6.6
     or 6.7, any indorsements, assignments or other instruments of
     conveyance or transfer with respect to the Collateral; and

     (v) (1) direct any party liable for any payment under any of the
     Collateral to make payment of any and all moneys due or to become due
     thereunder directly to the Lender or as the Lender shall direct; (2)
     ask or demand for, collect, and receive payment of and receipt for, any
     and all moneys, claims and other amounts due or to become due at any
     time in respect of or arising out of any Collateral; (3) sign and
     indorse any invoices, freight or express bills, bills of lading,
     storage or warehouse receipts, drafts against debtors, assignments,
     verifications, notices and other documents in connection with any of
     the Collateral; (4) commence and prosecute any suits, actions or
     proceedings at law or in equity in any court of competent jurisdiction
     to collect the Collateral or any portion thereof and to enforce any
     other right in respect of any Collateral; (5) defend any suit, action
     or proceeding brought against such Grantor with respect to any
     Collateral; (6) settle, compromise or adjust any such suit, action or
     proceeding and, in connection therewith, give such discharges or
     releases as the Lender may deem appropriate; (7) assign any Copyright,
     Patent or Trademark (along with the goodwill of the business to which
     any such Copyright, Patent or Trademark pertains), throughout the world
     for such term or terms, on such conditions, and in such manner, as the
     Lender shall in its sole discretion determine; and (8) generally, sell,
     transfer, pledge and make any agreement with respect to or otherwise
     deal with any of the Collateral as fully and completely as though the
     Lender were the absolute owner thereof for all purposes, and do, at the
     Lender's option and such Grantor's expense, at any time, or from time
     to time, all acts and things which the Lender deems necessary to
     protect, preserve or realize upon the Collateral and the Lender's
     security interests therein and to effect the intent of this Agreement,
     all as fully and effectively as such Grantor might do.

<PAGE>
                                                                              19

     Anything in this Section 7.1(a) to the contrary notwithstanding, the Lender
agrees that it will not exercise any rights under the power of attorney provided
for in this Section 7.1(a) unless an Event of Default shall have occurred and be
continuing.

         (b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Lender, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

         (c) The expenses of the Lender incurred in connection with actions
undertaken as provided in this Section 7.1, together with interest thereon at a
rate per annum equal to the highest rate per annum at which interest would then
be payable on any category of past due ABR Loans under the Credit Agreement,
from the date of payment by the Lender to the date reimbursed by the relevant
Grantor, shall be payable by such Grantor to the Lender on demand.

         (d) Each Grantor hereby ratifies all that said attorneys shall lawfully
do or cause to be done by virtue hereof. All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby are
released.

         7.2 DUTY OF THE LENDER. The Lender's sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the New York UCC or otherwise, shall be to
deal with it in the same manner as the Lender deals with similar property for
its own account. Neither the Lender nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Lender hereunder are solely to protect the Lender's interests
in the Collateral and shall not impose any duty upon the Lender to exercise any
such powers. The Lenders shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they
nor any of their officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct.

         7.3 EXECUTION OF FINANCING STATEMENTS. Pursuant to any applicable law,
each Grantor authorizes the Lender to file or record financing statements and
other filing or recording documents or instruments with respect to the
Collateral without the signature of such Grantor in such form and in such
offices as the Lender determines appropriate to perfect the security interests
of the Lender under this Agreement. Each Grantor authorizes the Lender to use
the collateral description "all personal property" in any such financing
statements. Each Grantor hereby ratifies and authorizes the filing by the Lender
of any financing statement with respect to the Collateral made prior to the date
hereof.

         7.4 AUTHORITY OF THE LENDER. Each Grantor acknowledges that the rights
and responsibilities of the Lender under this Agreement with respect to any
action taken by the Lender or the exercise or non-exercise by the Lender of any
option, voting right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Agreement shall be governed by the
Credit Agreement and by such other agreements with respect thereto as may exist
from time to time among them.

<PAGE>
                                                                              20

                            SECTION 8. MISCELLANEOUS

         8.1 AMENDMENTS IN WRITING. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 8.1 of the Credit Agreement.

         8.2 NOTICES. All notices, requests and demands to or upon the Lender or
any Grantor hereunder shall be effected in the manner provided for in Section
8.2 of the Credit Agreement; provided that any such notice, request or demand to
or upon any Guarantor shall be addressed to such Guarantor at its notice address
set forth on SCHEDULE 1.

         8.3 NO WAIVER BY COURSE OF CONDUCT; CUMULATIVE REMEDIES. The Lender
shall not by any act (except by a written instrument pursuant to Section 8.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the Lender, any
right, power or privilege hereunder shall operate as a waiver thereof. No single
or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. A waiver by the Lender of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the Lender
would otherwise have on any future occasion. The rights and remedies herein
provided are cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by law.

         8.4 ENFORCEMENT EXPENSES; INDEMNIFICATION. (a) Each Guarantor agrees to
pay or reimburse the Lender for all its costs and expenses incurred in
collecting against such Guarantor under the guarantee contained in Section 2 or
otherwise enforcing or preserving any rights under this Agreement and the other
Loan Documents to which such Guarantor is a party, including, without
limitation, the fees and disbursements of counsel to each Lender and of counsel
to the Lender.

         (b) Each Guarantor agrees to pay, and to save the Lender harmless from,
any and all liabilities with respect to, or resulting from any delay in paying,
any and all stamp, excise, sales or other taxes which may be payable or
determined to be payable with respect to any of the Collateral or in connection
with any of the transactions contemplated by this Agreement.

         (c) Each Guarantor agrees to pay, and to save the Lender harmless from,
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Agreement to the extent the Borrower would be required to
do so pursuant to Section 8.5 of the Credit Agreement.

         (d) The agreements in this Section 8.4 shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreement and the
other Loan Documents.

         8.5 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Lender and their successors and assigns; provided that no Grantor may assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Lender.

         8.6 SET-OFF. Each Grantor hereby irrevocably authorizes the Lender at
any time and from time to time, without notice to such Grantor or any other
Grantor, any such notice being expressly waived by such Grantor to the extent
permitted by applicable law, upon any amount becoming due and payable by such
Grantor hereunder (whether at the stated maturity, by acceleration or
otherwise), to set off and

<PAGE>
                                                                              21

appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Lender or any branch or agency thereof to or for the credit or the
account of the Borrower, as the case may be. The Lender agrees promptly to
notify such Grantor after any such setoff and application made by the Lender,
provided that the failure to give such notice shall not affect the validity of
such setoff and application.

         8.7 COUNTERPARTS. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

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

         8.9 SECTION HEADINGS. The Section headings used in this Agreement are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

         8.10 INTEGRATION. This Agreement and the other Loan Documents represent
the agreement of the Grantors, the Lenders with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by the Lender relative to subject matter hereof and thereof not
expressly set forth or referred to herein or in the other Loan Documents.

         8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

         8.12 SUBMISSION TO JURISDICTION; WAIVERS. Each Grantor hereby
irrevocably and unconditionally:

         (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;

         (b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

         (c) agrees that service of process in any such action or proceeding may
be effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the Lender
shall have been notified pursuant thereto;

<PAGE>
                                                                              22

         (d) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law or shall limit the right to sue
in any other jurisdiction; and

         (e) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.

         8.13 ACKNOWLEDGEMENTS. Each Grantor hereby acknowledges that:

         (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents to which it is a party;

         (b) the Lender does not have a fiduciary relationship with or duty to
any Grantor arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between the Grantors and the Lender
in connection herewith or therewith is solely that of debtor and creditor; and

         (c) no joint venture is created hereby or by the other Loan Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Grantors and the Lender.

         8.14 ADDITIONAL GRANTORS. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 5.9 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex 1 hereto.

         8.15 RELEASES. (a) At such time as the Term Loan and the other
Obligations shall have been paid in full, the Commitments have been terminated
and the Collateral shall be released from the Liens created hereby, and this
Agreement and all obligations (other than those expressly stated to survive such
termination) of the Lender and each Grantor hereunder shall terminate, all
without delivery of any instrument or performance of any act by any party, and
all rights to the Collateral shall revert to the Grantors. At the request and
sole expense of any Grantor following any such termination, the Lender shall
deliver to such Grantor any Collateral held by the Lender hereunder, and execute
and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination.

         (b) If any of the Collateral shall be sold, transferred or otherwise
disposed of by any Grantor in a transaction permitted by the Credit Agreement,
then the Lender, at the request and sole expense of such Grantor, shall execute
and deliver to such Grantor all releases or other documents reasonably necessary
or desirable for the release of the Liens created hereby on such Collateral. At
the request and sole expense of the Borrower, a Guarantor shall be released from
its obligations hereunder in the event that all the Capital Stock of such
Guarantor shall be sold, transferred or otherwise disposed of in a transaction
permitted by the Credit Agreement; PROVIDED that the Borrower shall have
delivered to the Lender, at least ten Business Days prior to the date of the
proposed release, a written request for release identifying the relevant
Guarantor and the terms of the sale or other disposition in reasonable detail,
including the price thereof and any expenses in connection therewith, together
with a certification by the Borrower stating that such transaction is in
compliance with the Credit Agreement and the other Loan Documents.

         8.16 PRIOR LIENS. The obligations of certain of the Grantors hereunder
are subject to the provisions of agreements entered into in connection with the
National City Debt and the M Data Debt. The Lender acknowledges that with
respect to the collateral covered by the respective agreements, the Liens
securing the National City Debt and the M Data Debt have priority over the Liens
granted pursuant to this Agreement. It shall not be a breach of this Agreement
for the Grantors to comply with their obligations with respect to the collateral
securing the National City Debt and the M Data Debt.

<PAGE>
                                                                              23

         8.17 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

<PAGE>

                  IN WITNESS WHEREOF, each of the undersigned has caused this
Guarantee and Collateral Agreement to be duly executed and delivered as of the
date first above written.

                           PRINTCAFE, INC.

                           By:  /s/ Marc D. Olin
                                -------------------------------------------
                                Name: Marc D. Olin
                                Title: President and Chief Executive Officer

                           A.H.P. SYSTEMS, INC.
                           AUTOMATION, INC.
                           CONSTELLATION SOFTWARE OF NEW HAMPSHIRE, INC.
                           LOGIC ASSOCIATES, INC.
                           LOGIC COVALENT CORPORATION
                           M DATA, INC.
                           PRINTCAFE SYSTEMS, INC.
                           PRINTCAFE IP MANAGEMENT, INC.
                           PROGRAMMED SOLUTIONS, INC.

                           By:  /s/ Marc D. Olin
                                -------------------------------------------
                                Name: Marc D. Olin
                                Title: President and Chief Executive Officer

<PAGE>

                         ACKNOWLEDGEMENT AND CONSENT***

         The undersigned hereby acknowledges receipt of a copy of the Guarantee
and Collateral Agreement dated as of December 31, 2001 (the "AGREEMENT"), made
by the Grantors parties thereto for the benefit of Iris Graphics Inc., as
Lender. The undersigned agrees for the benefit of the Lender as follows:

                  1. The undersigned will be bound by the terms of the Agreement
and will comply with such terms insofar as such terms are applicable to the
undersigned.

                  2. The undersigned will notify the Lender promptly in writing
of the occurrence of any of the events described in Section 5.7(a) of the
Agreement.

                  3. The terms of Sections 6.3(c) and 6.7 of the Agreement shall
apply to it, MUTATIS MUTANDIS, with respect to all actions that may be required
of it pursuant to Section 6.3(c) or 6.7 of the Agreement.

                                          [NAME OF ISSUER]

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

                                          Address for Notices:

                                          --------------------------------------

                                          --------------------------------------

                                          --------------------------------------

                                          Fax:

---------------------
*** This consent is necessary only with respect to any Issuer which is not also
    a Grantor.

<PAGE>

                                                                      Annex 1 to
                                              GUARANTEE AND COLLATERAL AGREEMENT

                  ASSUMPTION AGREEMENT, dated as of __________ ___, 200_, made
by ______________________________ (the "ADDITIONAL GRANTOR"), in favor of Iris
Graphics Inc., as the lender (the "LENDER") party to the Credit Agreement
referred to below. All capitalized terms not defined herein shall have the
meaning ascribed to them in such Credit Agreement.

                              W I T N E S S E T H :
                              - - - - - - - - - -

                  WHEREAS, printCafe, Inc. (the "BORROWER") and the Lender have
entered into a Credit Agreement, dated as of December 31, 2001 (as amended,
supplemented or otherwise modified from time to time, the "CREDIT AGREEMENT");

                  WHEREAS, in connection with the Credit Agreement, the Borrower
and certain of its Subsidiaries (other than the Additional Grantor) have entered
into the Guarantee and Collateral Agreement, dated as of December 31, 2001 (as
amended, supplemented or otherwise modified from time to time, the "GUARANTEE
AND COLLATERAL AGREEMENT"), in favor of the Lender;

                  WHEREAS, the Credit Agreement requires the Additional Grantor
to become a party to the Guarantee and Collateral Agreement; and

                  WHEREAS, the Additional Grantor has agreed to execute and
deliver this Assumption Agreement in order to become a party to the Guarantee
and Collateral Agreement;

                  NOW, THEREFORE, IT IS AGREED:

                  1. GUARANTEE AND COLLATERAL AGREEMENT. By executing and
delivering this Assumption Agreement, the Additional Grantor, as provided in
Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party
to the Guarantee and Collateral Agreement as a Grantor thereunder with the same
force and effect as if originally named therein as a Grantor and, without
limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor thereunder. The information set forth
in Annex 1-A hereto is hereby added to the information set forth in the
Schedules to the Guarantee and Collateral Agreement. The Additional Grantor
hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

                  2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

<PAGE>
                                                                               2

                  IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                          [ADDITIONAL GRANTOR]

                                          By:___________________________
                                               Name:
                                               Title:

<PAGE>

                                                                    Annex 1-A to
                                                            ASSUMPTION AGREEMENT

                            SUPPLEMENT TO SCHEDULE 1

                            SUPPLEMENT TO SCHEDULE 2

                            SUPPLEMENT TO SCHEDULE 3

                            SUPPLEMENT TO SCHEDULE 4

                            SUPPLEMENT TO SCHEDULE 5

                            SUPPLEMENT TO SCHEDULE 6

                            SUPPLEMENT TO SCHEDULE 7<PAGE>

                                                                   Exhibit 10.14

                                 PRINTCAFE, INC.

                            SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT

                                DECEMBER 31, 2001
<PAGE>

                                TABLE OF CONTENTS

                                                                           PAGE

1.   PURCHASE AND SALE OF STOCK AND NOTES.....................................1
     1.1   Sale and Issuance of Stock and Notes...............................1
     1.2   Closing; Delivery..................................................1

2.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY............................1
     2.1   Organization, Good Standing and Qualification......................2
     2.2   Capitalization.....................................................2
     2.3   Rights of Registration and Voting Rights...........................3
     2.4   Subsidiaries; Joint Ventures.......................................3
     2.5   Authorization......................................................4
     2.6   Valid Issuance of Securities.......................................4
     2.7   Governmental Consents..............................................4
     2.8   Litigation.........................................................5
     2.9   Intellectual Property..............................................5
     2.10  Confidential Information and Invention Assignment Agreements.......5
     2.11  Compliance with Other Instruments..................................6
     2.12  Agreements; Action.................................................6
     2.13  No Conflict of Interest............................................7
     2.14  Title to Property and Assets.......................................7
     2.15  Financial Statements...............................................7
     2.16  Changes............................................................8
     2.17  Distributions......................................................9
     2.18  Tax Returns and Payments...........................................9
     2.19  Insurance..........................................................9
     2.20  Employee Benefit Plans.............................................9
     2.21  Labor Agreements and Actions.......................................9
     2.22  Compliance with Environmental Requirements........................10
     2.23  Permits...........................................................10
     2.24  Private Offering..................................................10
     2.25  Brokers and Finders...............................................11
     2.26  Certificate of Incorporation......................................11
     2.27  Bylaws............................................................11
     2.28  Disclosure........................................................11
     2.29  Compliance with Other Laws........................................11
     2.30  Investment Company................................................11

3.   INTERPRETATION..........................................................11

4.   REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS........................11
     4.1   Authorization.....................................................11
     4.2   Purchase Entirely for Own Account.................................12

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

     4.3   Disclosure of Information.........................................12
     4.4   Restricted Securities.............................................12
     4.5   No Public Market..................................................12
     4.6   Legends...........................................................12
     4.7   Qualified Institutional Buyer or Accredited Investor..............13
     4.8   Foreign Investors.................................................13
     4.9   Manner of Offering................................................13
     4.10  Nature of Purchaser...............................................14

5.   COVENANTS OF THE COMPANY................................................14
     5.1   Compliance........................................................14
     5.2   Performance.......................................................14
     5.3   Books and Records.................................................14
     5.4   Renewals and Good Standing........................................14
     5.5   Principal Business................................................14
     5.6   Proprietary Information and Assignment Agreement..................14
     5.7   Stock Options.....................................................14
     5.8   Securities Filings................................................15
     5.9   Investment of Funds...............................................15
     5.10  Survival of Company's Covenants...................................15

6.   CONDITIONS OF THE PURCHASERS' OBLIGATIONS AT THE CLOSING................15
     6.1   Representations and Warranties....................................15
     6.2   Performance.......................................................15
     6.3   Compliance Certificate............................................15
     6.4   Qualifications....................................................15
     6.5   Written Consents..................................................15
     6.6   Stock Certificates................................................16
     6.7   Restated Certificate..............................................16
     6.8   Restated Investors' Rights Agreement..............................16
     6.9   Restated Co-Sale Agreement........................................16
     6.10  Restated Voting Agreement.........................................16
     6.11  Confidential Information and Invention Assignment Agreement.......16
     6.12  No Material Adverse Change........................................16
     6.13  Company Legal Opinions............................................17
     6.14  No Litigation.....................................................17
     6.15  Proceedings and Documents.........................................17
     6.16  Closing Documents.................................................17
     6.17  Other Transactions................................................17
     6.18  General...........................................................18

7.   CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSING..................18

                                       ii
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

     7.1   Representations and Warranties....................................18
     7.2   Performance.......................................................18
     7.3   Qualifications....................................................18

8.   Miscellaneous...........................................................18
     8.1   Survival of Warranties............................................18
     8.2   Entire Agreement..................................................19
     8.3   Transfer; Successors and Assigns..................................19
     8.4   Governing Law.....................................................19
     8.5   Counterparts......................................................19
     8.6   Titles and Subtitles..............................................19
     8.7   Notices...........................................................19
     8.8   Finder's Fee......................................................19
     8.9   Attorneys' Fees...................................................20
     8.10  Amendments and Waivers of Agreement...............................20
     8.11  Severability......................................................20
     8.12  Delays or Omissions...............................................20
     8.13  Confidentiality...................................................20
     8.14  Exculpation Among Purchasers......................................21
     8.15  Indemnification...................................................21
     8.16  Press Release.....................................................21
     8.17  Use of Proceeds...................................................21

                                      iii
<PAGE>

                                 PRINTCAFE, INC.

                   SERIES F PREFERRED STOCK PURCHASE AGREEMENT
                   -------------------------------------------

       This Series F Preferred Stock Purchase Agreement (this "AGREEMENT") is
made as of December 31, 2001 by and among printCafe, Inc., a Delaware
corporation (the "COMPANY"), and the investors listed on EXHIBIT A attached
hereto (each a "PURCHASER" and together the "PURCHASERS").

       In consideration of the mutual promises, covenants and conditions
hereinafter set forth, the parties hereto hereby agree as follows:

1. PURCHASE AND SALE OF STOCK AND NOTES.

       1.1 SALE AND ISSUANCE OF STOCK.

           (a) The Company shall adopt and file with the Secretary of State of
the State of Delaware on or before the Closing (as defined in Section 1.2(a)
below) the Sixth Amended and Restated Certificate of Incorporation in the form
attached hereto as EXHIBIT B (the "RESTATED CERTIFICATE").

           (b) Subject to the terms and conditions of this Agreement, each
Purchaser identified on EXHIBIT A hereto agrees to purchase at the Closing (as
defined below), and the Company agrees to sell and issue to each Purchaser at
the Closing that number of shares of the Company's Series F Preferred Stock (the
"SERIES F PREFERRED STOCK"), $0.0001 par value per share set forth opposite each
such Purchaser's name on EXHIBIT A attached hereto at a purchase price equal to
$4.00 per share of Series F Preferred Stock. The shares of Series F Preferred
Stock issued to the Purchasers pursuant to this Agreement shall be hereinafter
referred to as the "STOCK."

       1.2 CLOSING; DELIVERY.

           (a) The purchase and sale of the Stock shall take place at the
executive offices of the Company, at 10:00 a.m., on December 31, 2001, or at
such other time and place as the Company and the Purchasers mutually agree upon,
orally or in writing (which time and place are designated as the "CLOSING" and
the date of which is designated the "CLOSING DATE").

           (b) At the Closing, the Company shall deliver to each Purchaser a
certificate representing the Stock being purchased by such Purchaser against
payment of the purchase price therefor by check payable to the Company or by
wire transfer to the Company's bank account, or by cancellation of the
promissory notes set forth opposite such Purchaser's name on EXHIBIT A.

2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents
and warrants to each Purchaser that (acknowledging that each Purchaser is
relying on the representations and warranties set forth in this Section 2 in
connection with the purchase of

<PAGE>

the Stock by such Purchaser), except as set forth on the Schedule of Exceptions
attached hereto as EXHIBIT C:

       2.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to
carry on its business. The Company is duly qualified as a foreign corporation or
is otherwise duly qualified to transact business and is in good standing in each
jurisdiction in which the failure so to qualify would, either individually or in
the aggregate, have a material adverse effect on its business or properties.

       2.2 CAPITALIZATION. Immediately prior to the Closing, and prior to giving
effect to the Reverse Stock Split (as defined in the Restated Certificate), the
authorized capital of the Company shall consist of:

           (a) 70,789,957 shares of Preferred Stock, of which (i) 2,455,798
shares have been designated Series A Preferred Stock, all of which will be
issued and outstanding immediately prior to the Closing, (ii) 10,090,707 shares
have been designated Series A-1 Preferred Stock, 9,564,885 of which will be
issued and outstanding immediately prior to the Closing, (iii) 31,186,312 shares
have been designated Series B Preferred Stock, all of which will be issued and
outstanding immediately prior to the Closing, (iv) 1,915,080 have been
designated Series C Preferred Stock, all of which will be issued and outstanding
immediately prior to the Closing, (v) 283,125 shares have been designated Series
D Preferred Stock, all of which will be issued and outstanding immediately prior
to the Closing, (vi) 20,333,333 shares have been designated Series E-1 Preferred
Stock, 17,375,000 of which will be issued and outstanding immediately prior to
the Closing, and (vii) 4,525,602 shares have been designated Series F Preferred
Stock, none of which will be issued and outstanding immediately prior to the
Closing. The rights, privileges and preferences of the Preferred Stock are as
stated in the Restated Certificate. All of the outstanding shares of Preferred
Stock have been duly authorized, fully paid and nonassessable and issued in
compliance with all applicable federal and state securities laws.

           (b) 100,000,000 shares of Class A Common Stock, 9,751,683 of which
are issued and outstanding immediately prior to the Closing. All of the
outstanding shares of Common Stock have been duly authorized, fully paid and are
nonassessable and issued in compliance with all applicable federal and state
securities laws.

           (c) The Company has reserved (i) 380,915 shares of Class A Common
Stock and 525,822 shares of Series A-1 Preferred Stock (collectively, "OPTION
STOCK") for issuance to officers, directors, employees and consultants of the
Company pursuant to its 1999 Revised Stock Plan duly adopted by the Board of
Directors and approved by the Company's stockholders (the "1999 REVISED STOCK
PLAN"), and (ii) 10,000,000 shares of Class A Common Stock for issuance to
officers, directors, employees and consultants of the Company pursuant to its
2000 Incentive Stock Plan duly adopted by the Board of Directors and approved by
the Company's stockholders (the "2000 INCENTIVE STOCK PLAN" and, together with
the 1999 Revised Stock Plan, the "STOCK PLANS"). Of such reserved shares of
Option Stock under the 1999 Revised Stock Plan, no shares have been issued
pursuant to restricted stock purchase agreements, options

                                       2
<PAGE>

to purchase 380,915 shares of Class A Common Stock and 525,822 shares of Series
A-1 Preferred Stock have been granted, of which options to purchase 297,633
shares of Class A Common Stock and 362,370 shares of Series A-1 Preferred Stock
are currently outstanding, and no shares of Class A Common Stock remain
available for issuance to officers, directors, employees and consultants
pursuant to the 1999 Revised Stock Plan. Of such reserved shares of Class A
Common Stock under the 2000 Incentive Stock Plan, no shares have been issued
pursuant to restricted stock purchase agreements, options to purchase 8,283,936
shares of Class A Common Stock are currently outstanding, and 1,716,064 shares
of Class A Common Stock remain available for issuance to officers, directors,
employees and consultants pursuant to the 2000 Incentive Stock Plan.

           (d) Except for outstanding options issued pursuant to the Stock Plans
and the warrants listed in Section 2.2 of the Schedule of Exceptions, there are
no outstanding options, warrants, rights (including conversion or preemptive
rights and rights of first refusal or similar rights) or agreements, orally or
in writing, for the purchase or acquisition from the Company of any shares of
its capital stock. The shares of Common Stock described in Section 4(n)(ii)(B)
of Division B of the Restated Certificate include shares of Common Stock
issuable upon conversion of shares of Series E-1 Preferred Stock issuable upon
exercise of options therefor that may be issued to employees of the Company.

           (e) Attached to Section 2.2 of the Schedule of Exceptions is a true,
correct and complete capitalization table of the Company prepared by the Company
on a pro forma basis after giving effect to the transactions contemplated
hereby, including the Reverse Stock Split.

       2.3 RIGHTS OF REGISTRATION AND VOTING RIGHTS. Except as contemplated in
the Fifth Amended and Restated Investors' Rights Agreement, in the form attached
hereto as EXHIBIT D (the "RESTATED INVESTORS' RIGHTS Agreement"), the Company
has not granted or agreed to grant any registration rights, including piggyback
registration rights, to any person or entity. To the Company's knowledge, except
as contemplated in the Fourth Amended and Restated Voting Agreement, in the form
attached hereto as EXHIBIT E (the "RESTATED VOTING Agreement"), no stockholder
of the Company has entered into any agreements with respect to the voting of
capital stock of the Company. Except as contemplated by the Restated
Certificate, the Restated Voting Agreement and the Fourth Amended and Restated
Right of First Refusal and Co-Sale Agreement, in the form attached hereto as
EXHIBIT F (the "RESTATED CO-SALE AGREEMENT"), there are no stockholders
agreements, pledge agreements, buy-sell arrangements, rights of first refusal or
proxies related to any securities of the Company to which the Company is subject
or a party or to which, to the Company's knowledge, any stockholder, officer,
director or affiliate of the Company is a party or subject.

       2.4 SUBSIDIARIES; JOINT VENTURES. The Company does not currently own or
control, directly or indirectly, any interest in any other corporation,
association, or other business entity other than the subsidiaries set forth on
Schedule 2.4 of the Schedule of Exceptions (the "SUBSIDIARIES"). The Company,
either directly or through one of its Subsidiaries, holds all of the issued and
outstanding capital stock of each of the Subsidiaries. The Company is not a
participant in any joint venture, partnership or similar arrangement.

                                       3
<PAGE>

       2.5 AUTHORIZATION. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement, the Restated Investors' Rights Agreement, the
Restated Voting Agreement and the Restated Co-Sale Agreement (collectively, the
"TRANSACTION DOCUMENTS"), the performance of all obligations of the Company
hereunder and thereunder and the authorization, issuance and delivery of the
Stock and the Common Stock issuable upon conversion of the Stock (together, the
"SECURITIES") has been taken or will be taken prior to the Closing, and the
Transaction Documents, when executed and delivered by the Company, shall
constitute valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and other laws of general application affecting
enforcement of creditors' rights generally, as limited by laws relating to the
availability of specific performance, injunctive relief, or other equitable
remedies, or (ii) to the extent the indemnification provisions contained in the
Restated Investors' Rights Agreement may be limited by applicable federal or
state securities laws. All corporate action on the part of the Company and its
predecessors, officers, directors, stockholders and subsidiaries necessary for
the authorization, execution and/or delivery, as applicable, for all past
corporate actions was obtained.

       2.6 VALID ISSUANCE OF SECURITIES. The Stock that is being issued to the
Purchasers hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration expressed herein, will be duly and validly
issued, fully paid and nonassessable and free and clear of all preemptive
rights, rights of first refusal, liens, charges, restrictions, claims and any
other encumbrances imposed by or through the Company other than restrictions on
transfer under this Agreement, the Restated Investors' Rights Agreement, the
Restated Co-Sale Agreement and applicable state and federal securities laws of
the United States. Based in part upon the representations of the Purchasers in
this Agreement and subject to the provisions of Section 2.7 below, the Stock
will be issued in compliance with all applicable federal and state securities
laws. The Common Stock issuable upon conversion of the Stock has been duly and
validly reserved for issuance and, upon issuance in accordance with the terms of
the Restated Certificate, shall be duly and validly issued, fully paid and
nonassessable and free and clear of all preemptive rights, rights of first
refusal, liens, charges, restrictions, claims and any other encumbrances imposed
by or through the Company other than restrictions on transfer under this
Agreement, the Restated Investors' Rights Agreement, the Restated Co-Sale
Agreement and applicable federal and state securities laws and, based in part on
the representations of the Purchasers set forth in Section 4 hereof, will be
issued in compliance with all applicable federal and state securities laws of
the United States and, where applicable, provincial securities laws of Canada.

       2.7 GOVERNMENTAL CONSENTS. No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any
federal, state or local governmental authority of the United States is required
in connection with the consummation of the transactions contemplated by this
Agreement, except for filings pursuant to applicable state securities laws and
Regulation D of the Securities Act of 1933, as amended (the "SECURITIES ACT").
Based in part on the representations of the Purchasers set forth in Section 4
hereof, the offer, sale and issuance of the Stock, in accordance with the terms
hereof for the consideration

                                       4
<PAGE>

expressed herein, are exempt from the registration requirements of Section 5 of
the Securities Act and from the qualification requirements of applicable state
securities laws.

       2.8 LITIGATION. There is no action, suit, proceeding or investigation
pending or, to the Company's knowledge, currently threatened against the Company
or any of the Subsidiaries, or any basis therefor known to the Company, that
questions the validity of the Transaction Documents or the right of the Company
to enter into them, or to consummate the transactions contemplated hereby or
thereby, or that might result, either individually or in the aggregate, in any
material adverse change in the financial condition, assets, liabilities,
operations or financial performance of the Company, or any change in the current
equity ownership of the Company. Neither the Company nor any of the Subsidiaries
is a party or subject to the provisions of any order, writ, injunction, judgment
or decree of any court or government agency or instrumentality. There is no
action, suit, proceeding or investigation by the Company or any of the
Subsidiaries currently pending or which the Company or any of the Subsidiaries
intends to initiate. The foregoing includes, without limitation, actions pending
or threatened (or any basis therefor known to the Company) involving the prior
employment of any of the Company's employees, their use in connection with the
Company's business of any information or technologies allegedly proprietary to
any of their former employers, or their obligations under any agreements with
prior employers.

       2.9 INTELLECTUAL PROPERTY. The Company owns or possesses sufficient legal
rights to all patents, trademarks, service marks, tradenames, copyrights, trade
secrets, licenses, information and proprietary rights and processes
(collectively, "INTELLECTUAL PROPERTY RIGHTS") necessary for its business
without any conflict with, or infringement of, the rights of others. To the
Company's knowledge, no third party is infringing or violating any of the
Company's Intellectual Property Rights. The Company has not received any written
communications alleging that the Company has violated or, by conducting its
business, would violate any of the Intellectual Property Rights of any other
person or entity. Except with respect to license agreements entered into in the
ordinary course of the Company's business, there are no outstanding options,
licenses or agreements of any kind related to the foregoing, nor is the Company
bound by, or a party to, any options, licenses or agreements of any kind with
respect to Intellectual Property of any other forms.

       2.10 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENTS. Each
officer, independent contractor, consultant and employee of the Company
(collectively, "SERVICE PROVIDERS") has entered into an agreement with the
Company regarding confidentiality, non-solicitation of employees and customers
and assignment of all Intellectual Property Rights, technical information and
other information developed and/or worked on by such Service Provider while
employed or engaged with the Company (each, a "CONFIDENTIALITY AND INVENTION
ASSIGNMENT AGREEMENT"). To the Company's knowledge, (i) no past or present
Service Provider is in violation of any term of any Confidentiality and
Invention Assignment Agreement between the Company and such Service Provider;
and (ii) it is not nor will it be necessary to use any inventions of any of its
Service Providers (or persons it currently intends to hire) made prior to their
employment or engagement by the Company. Each Service Provider hired or engaged
by the Company after the date hereof shall, prior to their employment or
engagement with the Company, enter into a Confidentiality and Invention
Assignment Agreement with the Company.

                                       5
<PAGE>

       2.11 COMPLIANCE WITH OTHER INSTRUMENTS. The Company is not in violation
in any respect or default of any provisions of its Restated Certificate or
Bylaws or of any provision, instrument, agreement, commitment, arrangement,
license, judgment, order, writ, decree or contract to which it is a party or by
which it is bound or of any provision of federal or state statute, rule or
regulation applicable to the Company, which violation or default is reasonably
likely to result in a material adverse effect on the financial condition,
assets, liabilities, operations or financial performance of the Company. No
event has occurred which with the passage of time or the giving of notice, or
both, would constitute a material breach of or default under any of the
foregoing, which material violation or breach or default is reasonably likely to
result in a material adverse effect on the financial condition, assets,
liabilities, operations or financial performance of the Company. The execution,
delivery and performance of the Transaction Documents and the consummation of
the transactions contemplated thereby will not result in any such violation or
breach or be in conflict with or constitute, with or without the passage of time
and giving of notice, either a default under any such provision, agreement,
commitment, arrangement, license, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company. Neither the execution or delivery of
this Agreement, nor the carrying on of the Company's business by the employees
of the Company, nor the conduct of the Company's business as proposed, will
conflict in any material respect with or result in a material breach of the
terms, conditions, or provisions of, or constitute a default under, any
contract, covenant or instrument under which any of the Company's employees is
now obligated.

       2.12 AGREEMENTS; ACTION.

           (a) There are no agreements, understandings or proposed transactions
between the Company and any of its officers, directors, affiliates or any
affiliate thereof.

           (b) Except as explicitly contemplated by the Transaction Documents,
and agreements entered into in the ordinary course of business, there are no
agreements, understandings, instruments, contracts or proposed transactions to
which the Company or any of the Subsidiaries is a party or by which it is bound
that involve (i) obligations (contingent or otherwise) of, or payments to, the
Company or any of the Subsidiaries in excess of $50,000, (ii) the license of any
patent, copyright, trade secret or other proprietary right to or from the
Company or any of the Subsidiaries, or (iii) the grant of rights to manufacture,
produce, assemble, license, market, or sell its products to any other person or
affect the Company's exclusive right to develop, manufacture, assemble,
distribute, market or sell its products.

           (c) Neither the Company nor any of the Subsidiaries has (i) declared
or paid any dividends, or authorized or made any distribution upon or with
respect to any class or series of its capital stock, (ii) incurred any
indebtedness for money borrowed or incurred any other liabilities individually
in excess of $50,000 or in excess of $100,000 in the aggregate, (iii) made any
loans or advances to any person, other than ordinary advances to the Company's
employees for business expenses, or (iv) sold, exchanged or otherwise disposed
of any of its assets or rights, other than the sale of its inventory in the
ordinary course of business.

                                       6
<PAGE>

           (d) Except as disclosed in Section 2.12 of the Schedule of Exceptions
or as set out in the Transaction Documents, the Company has not entered into any
binding letters of intent with any corporation, partnership, association, other
business entity or any individual regarding (i) the consolidation or merger of
the Company with or into any such corporation or other business entity, (ii) the
sale, conveyance or disposition of all or substantially all of the assets of the
Company or a transaction or series of transactions in which more than 50% of the
voting power of the company is disposed of, or (iii) any other form of
acquisition, liquidation, dissolution or winding-up of the Company.

       2.13 NO CONFLICT OF INTEREST. The Company is not indebted, directly or
indirectly, to any of its officers or directors, in any amount whatsoever, other
than in connection with expenses or advances of expenses incurred in the
ordinary course of business or relocation expenses of employees. None of the
Company's officers or directors are, directly or indirectly, indebted to the
Company (other than in connection with purchases of the Company's stock) or, to
the Company's knowledge, have any direct or indirect ownership interest in any
firm or corporation with which the Company is affiliated or with which the
Company has a business relationship, or any firm or corporation which competes
with the Company (other than ownership of stock in, but not exceeding two
percent (2%) of the outstanding capital stock of, any publicly traded company
that competes with the Company). To the Company's knowledge, none of the
Company's officers or directors are, directly or indirectly, interested in any
material contract with the Company. The Company is not a guarantor of any
indebtedness of any other person, firm or corporation.

       2.14 TITLE TO PROPERTY AND ASSETS. The Company has good and valid title
to all of its properties and assets, both real and personal, and has good title
to all its leasehold interests, in each case free and clear of all mortgages,
liens, pledges, loans, security interests, conditional sales agreements,
encumbrances or charges, except for Permitted Liens (as defined below). The
Company owns or leases all properties and assets reasonably necessary to the
operation of its business as now conducted. With respect to the property and
assets it leases, the Company is in compliance with such leases and, to the
Company's knowledge, holds a valid leasehold interest free of any liens, claims
or encumbrances, except for Permitted Liens. For purposes of this Agreement,
"Permitted Liens" shall mean any (a) mechanics', carriers', workers' and other
similar liens arising in the ordinary course of business which are not
delinquent and which in the aggregate are not material in amount, and do not
interfere with the present use of the assets of the Company to which they apply;
(b) liens for current taxes and assessments not yet due and payable; (c) liens
and encumbrances that have arisen in the ordinary course of business and that do
not (in any case or in the aggregate) materially detract from the value of the
assets subject thereto or materially impair the operations of the Company; and
(d) with respect to any asset of the Company which consists of a leasehold or
other possessory interest in real property, all encumbrances, covenants,
imperfections in title, easements, restrictions and other title matters (whether
or not the same are recorded) not known to the Company to which the underlying
fee estate in such real property is subject which were not created by or
incurred by the Company.

       2.15 FINANCIAL STATEMENTS. Attached hereto as EXHIBIT G are the unaudited
consolidated balance sheet, statement of operations and statement of cash flows
of the Company for the fiscal year ended December 31, 2000 and the unaudited
consolidated balance sheet,

                                       7
<PAGE>

statement of operations and statement of cash flows of the Company for the nine
months ended September 30, 2001 (collectively, the "FINANCIAL STATEMENTS"). The
Financial Statements have been prepared in accordance with generally accepted
accounting principles consistently applied (except that the unaudited financial
statements do not contain footnotes and are subject to normal year-end audit
adjustments). The Financial Statements are complete in all material respects and
in accordance with the books and records of the Company and fairly present the
financial condition and operating results of the Company as of the dates, and
for the periods, indicated therein (except that the unaudited financial
statements do no contain footnotes and are subject to normal year-end audit
adjustments). Except as set forth in the Financial Statements, the Company has
no material liabilities, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to September 30, 2001,
(ii) obligations under contracts and commitments incurred in the ordinary course
of business and not required under generally accepted accounting principles to
be reflected in the Financial Statements, and (iii) performance obligations of
the Company under the Transaction Documents.

       2.16 CHANGES. Since September 30, 2001 there has not been:

           (a) any change in the assets, liabilities, financial condition or
operating results of the Company from that reflected in the Financial
Statements, except changes in the ordinary course of business that have not
been, in the aggregate, materially adverse;

           (b) any damage, destruction, loss or other occurrence or development
materially and adversely affecting the business, properties or financial
condition of the Company;

           (c) any waiver or compromise by the Company of a valuable right or
any material debt owed to it;

           (d) any satisfaction or discharge of any lien, claim, or encumbrance
or payment of any obligation by the Company, except in the ordinary course of
business and that is not material to the assets, business, properties or
financial condition or operating results of the Company;

           (e) any material change or amendment to a material contract or
agreement by which the Company or any of its assets or properties is bound or
subject;

           (f) any material change or amendment in any compensation arrangement
or agreement with any employee, officer, director or stockholder;

           (g) any sale, assignment or transfer of any patents, trademarks,
copyrights, trade secrets or other intangible assets;

           (h) any resignation or termination of employment of any officer or
key employee of the Company; and the Company, is not aware of any impending
resignation or termination of employment of any such officer or key employee;

                                       8
<PAGE>

           (i) any mortgage, pledge, transfer of a security interest in, or
lien, created by the Company, with respect to any of its material properties or
assets, except for Permitted Liens;

           (j) any loans or guarantees made by the Company to or for the benefit
of its employees, officers or directors, or any members of their immediate
families, other than travel advances and other advances made in the ordinary
course of its business;

           (k) any declaration, setting aside or payment or other distribution
in respect to any of the Company's capital stock, or any direct or indirect
redemption, purchase, or other acquisition of any of such stock by the Company;

           (l) to the Company's knowledge, any other event or condition of any
character that might materially and adversely affect the business, properties or
financial condition of the Company; or

           (m) any arrangement or commitment by the Company to do any of the
things described in this Section 2.16.

       2.17 DISTRIBUTIONS. There has been no declaration or payment by the
Company of any dividend, nor any distribution by the Company of any assets of
any kind, to any of its stockholders.

       2.18 TAX RETURNS AND PAYMENTS. The Company has filed all tax returns and
reports as required by applicable law and such tax returns and reports are true
and correct in all material respects. The Company has paid all taxes, fees,
assessments and other governmental charges upon the Company, or upon any of its
properties, income, or franchises, shown in such returns and on assessments
received by the Company to be due as of the date hereof and no such taxes or
assessments are being contested.

       2.19 INSURANCE. The Company has in full force and effect fire and
casualty insurance policies, with extended coverage, sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed, and the Company has such other insurance
policies and coverages as are customary in the Company's industry.

       2.20 EMPLOYEE BENEFIT PLANS. Section 2.20 of the Schedule of Exceptions
sets forth all currently effective employment contracts, deferred compensation
arrangements, bonus plans, incentive plans, profit sharing plans, retirement
agreements or other employee compensation agreements. The Company does not have
any Employee Benefit Plan as defined in the Employee Retirement Income Security
Act of 1974, as amended.

       2.21 LABOR AGREEMENTS AND ACTIONS. The Company is not bound by or subject
to (and none of its assets or properties is bound by or subject to) any written
or oral, express or implied, contract, commitment or arrangement with any labor
union, and no labor union has requested or, to the knowledge of the Company, has
sought to represent any of the employees, representatives or agents of the
Company. There is no strike or other labor dispute

                                       9
<PAGE>

involving the Company pending, or to the knowledge of the Company threatened,
which could have a material adverse effect on the financial condition, assets,
liabilities, operations or financial performance of the Company, nor is the
Company aware of any labor organization activity involving its employees. The
employment of each officer and employee of the Company is terminable at the will
of the Company. The services of each consultant and independent contractor is
terminable by the Company upon not more than thirty (30) days prior written
notice. To its knowledge, the Company has complied in all material respects with
all applicable state and federal equal employment opportunity laws and with
other laws related to employment.

       2.22 COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS. To the Company's
knowledge, it has obtained all material permits, licenses and other
authorizations required under federal, state and local laws relating to
pollution or protection of the environment. The Company has not violated any
applicable Environmental Law, the violation of which is reasonably likely to
result in a material adverse change in the financial condition, assets,
liabilities, operations or financial performance of the Company. To the
knowledge of the Company, there are no present requirements of any applicable
Environmental Law which are due to be imposed upon it which will materially
increase its cost of complying with the Environmental Laws. All past on-site
generation, treatment, storage and disposal of Waste, including Hazardous Waste,
by the Company and, to its knowledge, by its predecessors have been done in
compliance with the currently applicable Environmental Laws, and all past
off-site treatment, storage and disposal of Waste, including Hazardous Waste,
generated by the Company and, to its knowledge, by its predecessors have been
done in compliance with the currently applicable Environmental Laws. As used in
this Agreement, the terms (i) "Environmental Laws" include, but are not limited
to, any federal, state, local or foreign law, statute, charter or ordinance, and
any rule, regulation, binding interpretation, binding policy, permit, order,
court order or consent decree issued pursuant to any of the foregoing, which
pertains to, governs or otherwise regulates any of the following activities,
including, without limitation, (a) the emission, discharge, release or spilling
of any substance into the air, surface water, groundwater, soil or substrata;
(b) the manufacturing, processing, sale, generation, treatment, storage,
disposal labeling or other management of any Waste, Hazardous Substance or
Hazardous Waste, and (ii) "Waste," "Hazardous Substance," and "Hazardous Waste"
include any substance defined as such by any applicable Environmental Law.

       2.23 PERMITS. The Company and each of the Subsidiaries has all
franchises, permits, licenses and any similar authority necessary for the
conduct of its business, the lack of which could materially and adversely affect
the business, properties or financial condition of the Company and, to its
knowledge, it can obtain, without undue burden or expense, any similar authority
for the conduct of its business as planned to be conducted. The Company is not
in default in any material respect under any of such franchises, permits,
licenses or other similar authority.

       2.24 PRIVATE OFFERING. Neither the Company nor anyone acting on its
behalf has offered any of the Stock or similar securities for issuance or sale
to, or solicited any offer to acquire any of the same from, anyone so as to make
the issuance and sale of the Stock subject to registration requirements of
Section 5 of the Securities Act.

                                       10
<PAGE>

       2.25 BROKERS AND FINDERS. The Company has not retained any investment
banker, broker, finder or any other third party in connection with the
transactions contemplated by this Agreement.

       2.26 CERTIFICATE OF INCORPORATION. At the time of Closing, the Company's
certificate of incorporation on file with the Secretary of the State of Delaware
shall be in the form of the Restated Certificate, and no action shall have been
taken to amend or modify such Restated Certificate.

       2.27 BYLAWS. The Bylaws of the Company are in the form attached hereto as
EXHIBIT H and no action has been taken to amend or modify such Bylaws.

       2.28 DISCLOSURE. The Company has made available to the Purchasers all
material information relating to the Company. This Agreement, including all
representations herein by the Company, and any exhibits hereto or any
certificate furnished or to be furnished to Purchasers at the Closing, taken
together, do not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained herein
or therein not misleading in light of the circumstances under which they were
made.

       2.29 COMPLIANCE WITH OTHER LAWS. The Company has complied in all material
respects with all laws, statutes, rules, regulations and orders of federal,
state, local and foreign agencies and authorities, applicable to its business,
properties and operations.

       2.30 INVESTMENT COMPANY. The Company is not an "investment company" or a
company "controlled" by an "investment company," within the meaning of the
Investment Company Act of 1940, as amended.

3. INTERPRETATION.

           (a) For the purposes of the representations and warranties contained
in Section 2, whenever "to the Company's knowledge" or "to its knowledge" is
used, it means to the knowledge of the officers and directors of the Company
after making such diligent inquiry as may be reasonable under the circumstances.

           (b) For the purposes of the representations and warranties contained
in Section 2, all references to the "Company" shall be deemed to include the
Subsidiaries.

4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser hereby
represents and warrants to the Company that:

       4.1 AUTHORIZATION. Such Purchaser has full power and authority to enter
into the Transaction Documents. The Transaction Documents, when executed and
delivered by the Purchaser, will constitute valid and legally binding
obligations of the Purchaser, enforceable in accordance with their respective
terms, except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and any other laws of general
application affecting enforcement of creditors' rights generally, and as limited
by laws relating to the availability of a specific performance, injunctive
relief, or other equitable remedies, or (b) to

                                       11
<PAGE>

the extent the indemnification provisions contained in the Restated Investors'
Rights Agreement may be limited by applicable federal or state securities laws.

       4.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made with the
Purchaser in reliance upon the Purchaser's representations to the Company. The
Purchaser hereby confirms that the Securities to be acquired by the Purchaser
will be acquired for investment for the Purchaser's own account, not as a
nominee or agent, and not with a view to the resale or distribution of any part
thereof in violation of the Securities Act, and that the Purchaser has no
present intention of selling, granting any participation in, or otherwise
distributing the same in violation of the Securities Act. The Purchaser further
represents that the Purchaser does not presently have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Securities. The Purchaser has not been formed for the specific purpose of
acquiring the Securities.

       4.3 DISCLOSURE OF INFORMATION. The Purchaser has had an opportunity to
discuss the Company's business, management, financial affairs and the terms and
conditions of the offering of the Stock with the Company's management and has
had an opportunity to review the Company's facilities. The Purchaser understands
that such discussions, as well as any other written information delivered by the
Company to the Purchaser, were intended to describe the aspects of the Company's
business which it believes to be material.

       4.4 RESTRICTED SECURITIES. The Purchaser understands that the Securities
have not been, and will not be, registered under the Securities Act, by reason
of a specific exemption from the registration provisions of the Securities Act
which depends upon, among other things, the bona fide nature of the investment
intent and the accuracy of the Purchaser's representations as expressed herein.
The Purchaser understands that the Securities are "restricted securities" under
applicable U.S. federal and state securities laws and that, pursuant to these
laws, the Purchaser must hold the Securities indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and qualification
requirements is available. The Purchaser acknowledges that the Company has no
obligation to register or qualify the Securities for resale except as set forth
in the Restated Investors' Rights Agreement. The Purchaser further acknowledges
that if an exemption from registration or qualification is available, it may be
conditioned on various requirements, including, but not limited to, the time and
manner of sale, the holding period for the Securities, and on requirements
relating to the Company which are outside of the Purchaser's control, and which
the Company is under no obligation and may not be able to satisfy except as
specifically provided in the Restated Investors' Rights Agreement.

       4.5 NO PUBLIC MARKET. The Purchaser understands that no public market now
exists for any of the securities issued by the Company, and that the Company has
made no assurances that a public market will ever exist for the Securities.

       4.6 LEGENDS. The Purchaser understands that the Securities, and any
securities issued in respect of or exchange for the Securities, may bear one or
all of the following legends:

                                       12
<PAGE>

           (a) "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933."

           (b) Any legend set forth in the other Transaction Documents.

           (c) Any legend required by the Blue Sky laws of any state to the
extent such laws are applicable to the shares represented by the certificate so
legended.

       4.7 QUALIFIED INSTITUTIONAL BUYER OR ACCREDITED INVESTOR. The Purchaser
is a "Qualified Institutional Buyer" as defined in Rule 144A under the
Securities Act (a "QIB") or an "accredited investor" as defined in Rule 501(a)
of Regulation D promulgated under the Securities Act.

       4.8 FOREIGN INVESTORS. If the Purchaser is not a United States person (as
defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as
amended), such Purchaser hereby represents that it has satisfied itself as to
the full observance of the laws of its jurisdiction in connection with any
invitation to subscribe for the Securities or any use of this Agreement,
including (i) the legal requirements within its jurisdiction for the purchase of
the Securities, (ii) any foreign exchange restrictions applicable to such
purchase, (iii) any governmental or other consents that may need to be obtained,
and (iv) the income tax and other tax consequences, if any, that may be relevant
to the purchase, holding, redemption, sale, or transfer of the Securities. Such
Purchaser's subscription and payment for and continued beneficial ownership of
the Securities, will not violate any applicable securities or other laws of the
Purchaser's jurisdiction. Furthermore, if the Purchaser is not a "U.S. person"
as defined in Regulation S under the Securities Act, Purchaser hereby represents
and warrants that it is not acquiring the Shares for the account or benefit of
any U.S. person and no offer to purchase the Shares was made to the undersigned
while the undersigned was in the United States. If the Purchaser is not a "U.S.
person" as defined in Regulation S under the Securities Act, Purchaser agrees to
resell the Shares only in accordance with the provisions of Rule 903(b)(3) of
Regulation S under the Securities Act, pursuant to registration under the
Securities Act, or pursuant to an available exemption from registration; and the
undersigned agrees not to engage in hedging transactions with regard to the
Shares unless in compliance with the Securities Act.

       4.9 MANNER OF OFFERING. The offer to sell the Stock was communicated to
such Purchaser by the Company in such a manner that such Purchaser was able to
ask questions of and receive answers from the Company concerning the terms and
conditions of this transaction and that at no time was such Purchaser presented
with or solicited by any leaflet, public promotional meeting, newspaper or
magazine article, radio or television advertisement or any other form of
advertising or general solicitation.

                                       13
<PAGE>

       4.10 NATURE OF PURCHASER. By reason of the Purchaser's business or
financial experience, such Purchaser has the capacity to protect its own
interest in connection with this transaction.

5. COVENANTS OF THE COMPANY. The Company covenants and agrees with each
Purchaser that:

       5.1 COMPLIANCE. The Company shall comply with all laws, rules,
regulations and orders, the non-compliance with which could materially and
adversely affect the financial condition, assets, liabilities, operations or
financial performance of the Company or its obligations under this Agreement or
any other agreement with each Purchaser.

       5.2 PERFORMANCE. The Company shall diligently observe and perform or
cause to be observed all covenants to be observed or performed under the
Transaction Documents and under any other agreement between the Company and each
Purchaser.

       5.3 BOOKS AND RECORDS. The Company shall maintain complete and accurate
records and books of account in which entries shall be made in accordance with
generally accepted accounting principles consistently applied, reflecting all
transactions of the Company and its subsidiaries, if any.

       5.4 RENEWALS AND GOOD STANDING. The Company shall (a) do all things
necessary to obtain, promptly renew and maintain in good standing from time to
time, all approvals, leases, licenses, permits and consents as are required to
own, develop and operate the business, assets or operations of the Company and
undertaking, except where the failure to obtain, renew or maintain in good
standing such approvals, leases, licenses, permits and consents is not
reasonably likely to result in a material adverse change in the Company's
financial condition, assets, liabilities, operations or financial performance
and (b) perform its obligations under this Agreement and all other agreements
between the Company and each Purchaser.

       5.5 PRINCIPAL BUSINESS. Prior to the initial public offering of the
Company's Common Stock, the Company shall not change its principal business or
engage in any other business from that which it is engaged on the date of this
Agreement without the written consent of at least two-thirds of the holders of
shares of Stock converted or convertible into Common Stock.

       5.6 PROPRIETARY INFORMATION AND ASSIGNMENT AGREEMENT. The Company shall
require all future officers, directors and employees of the Company and each
subsidiary of the Company to execute and deliver a proprietary information and
assignment agreement and shall require all future consultants and independent
contractors to the Company to execute and deliver a consulting agreement which
provides substantially similar protection from misappropriation to the
intellectual property of the Company.

       5.7 STOCK OPTIONS. All stock options granted by the Company shall have a
term of ten (10) years and shall be exercisable, over time, based upon continued
employment over a vesting period to be determined by the Company's Board of
Directors. The per share

                                       14
<PAGE>

exercise price of all options granted by the Company will be no less than the
fair market value on the date of grant as determined by the Board of Directors
in good faith. Unless otherwise specifically approved by the Board of Directors,
options granted by the Company will not accelerate upon a change of control of
the Company or any subsidiary of the Company.

       5.8 SECURITIES FILINGS. Within the prescribed time after the Closing, the
Company shall file all documents and take all proceedings required to be taken
by it to permit the Stock to be distributed to each Purchaser in compliance with
applicable federal and state securities laws and the applicable securities
legislation in Canada.

       5.9 INVESTMENT OF FUNDS. The Company shall not make any investments in
any securities, other than high grade commercial paper or other form of
comparable security.

       5.10 SURVIVAL OF COMPANY'S COVENANTS. The covenants of the Company set
forth in this Section 5 will survive the completion of the transactions
contemplated by this Agreement and will continue in full force and effect for
the benefit of each Purchaser until the earlier to occur of (a) five (5) years
from the Closing, or (b) the consummation of an IPO (as defined in the Restated
Certificate).

6. CONDITIONS OF THE PURCHASERS' OBLIGATIONS AT THE CLOSING. The obligations of
each Purchaser to the Company under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

       6.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties of
the Company contained in Section 2 shall be true and correct in all respects on
and as of the Closing with the same effect as though such representations and
warranties had been made on and as of the date of the Closing, it being
understood that, where any such representation or warranty includes a
materiality or material adverse effect exception, this Section 6.1 shall not
abrogate such exception.

       6.2 PERFORMANCE. The Company shall have performed and complied in all
material respects with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with
by it on or before the Closing.

       6.3 COMPLIANCE CERTIFICATE. The President or CEO of the Company shall
deliver to the Purchasers at the Closing a certificate certifying that the
conditions specified in Sections 6.1 and 6.2 have been fulfilled.

       6.4 QUALIFICATIONS. All authorizations, approvals or permits, if any, of
any governmental authority or regulatory body of the United States or of any
state that are required to be obtained prior to the Closing in connection with
the lawful issuance and sale of the Stock pursuant to this Agreement shall be
obtained and effective as of the Closing.

       6.5 WRITTEN CONSENTS. The Company shall have obtained and delivered to
the Purchasers any and all written waivers, permits, consents and approvals
required to be obtained prior to the Closing in connection with the consummation
of the transactions

                                       15
<PAGE>

contemplated by the Transaction Documents in a form and content reasonably
acceptable to the Purchasers.

       6.6 STOCK CERTIFICATES. The Company shall have delivered to the
Purchasers executed stock certificates in form and content acceptable to the
Purchasers ("STOCK CERTIFICATES") and sufficient to transfer to and vest in each
Purchaser good and valid title to the purchased Stock free of any lien created
by or through the Company.

       6.7 RESTATED CERTIFICATE. The Company shall have filed the Restated
Certificate with the Secretary of State of the State of Delaware on or prior to
the Closing, which shall continue to be in full force and effect as of the
Closing.

       6.8 RESTATED INVESTORS' RIGHTS AGREEMENT. The Company, each Purchaser,
and the existing parties to the Fourth Amended and Restated Investors' Rights
Agreement entered into by the Company and the stockholders party thereto
necessary to amend such agreement pursuant to Section 3.2 thereof shall have
executed and delivered the Restated Investors' Rights Agreement in substantially
the form attached as EXHIBIT D.

       6.9 RESTATED CO-SALE AGREEMENT. The Company, each Purchaser, and the
existing parties to the Third Amended and Restated Co-Sale Agreement entered
into by the Company and the stockholders party thereto necessary to amend such
agreement pursuant to Section 4.2 thereof shall have executed and delivered the
Restated Co-Sale Agreement in substantially the form attached as EXHIBIT F.

       6.10 RESTATED VOTING AGREEMENT. The Company, each Purchaser, and the
existing parties to the Third Amended and Restated Voting Agreement entered into
by the Company and the stockholders party thereto necessary to amend such
agreement pursuant to Section 5.6 thereof shall have executed and delivered the
Restated Voting Agreement in substantially the form attached as EXHIBIT E.

       6.11 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT. The
Company and each of its Service Providers (other than as set forth on Section
2.10 of the Schedule of Exceptions) shall have entered into a Confidential
Information and Invention Assignment Agreement, in substantially the form
provided to the Purchasers.

       6.12 NO MATERIAL ADVERSE CHANGE. Except as set forth on the Schedule of
Exceptions, there shall have been no material adverse change in the Company's
financial condition, assets, liabilities, operations or financial performance
since September 30, 2001 (it being understood that none of the following shall
be deemed, in and of itself, to constitute a material adverse change in the
financial condition, assets, liabilities, operations or financial performance of
the Company since September 30, 2001: (a) a change that results from conditions
generally affecting the U.S. economy or the world economy; (b) a change that
results from conditions generally affecting the Company's industry; (c) a change
that results from the announcement or pendency of the transactions contemplated
hereby; and (d) a change that results from the taking of any action required by
this Agreement).

                                       16
<PAGE>

       6.13 COMPANY LEGAL OPINION. Morgan, Lewis & Bockius LLP, special counsel
for the Company, shall have delivered a legal opinion to the Purchasers in the
form attached hereto as EXHIBIT I.

       6.14 NO LITIGATION. There shall be no action, suit or proceeding or
investigation instituted or threatened to set aside the transactions provided
for herein or to enjoin or prevent the consummation of the transactions
contemplated hereby.

       6.15 PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings in
connection with the transactions contemplated hereby and all documents and
instruments incident to such transactions shall be in form and substance
satisfactory to each Purchaser and its counsel and each Purchaser shall have
received all such counterpart originals or certified or other copies of such
documents as it may reasonably request.

       6.16 CLOSING DOCUMENTS. The Company shall have delivered the following
documents to each of the Purchasers:

           (a) copies certified by the Secretary of the Company of the
resolutions duly adopted by the Company's board of directors authorizing and
approving: (i) the execution, delivery and performance of the Transaction
Documents and each of the other agreements contemplated hereby, (ii) the
Restated Certificate and the filing of the Restated Certificate with the
Secretary of the State of Delaware, (iii) the reservation for issuance upon
conversion of the Series F Preferred Stock of an aggregate number of shares of
Common Stock equal to the total number of shares initially issuable upon
conversion, and (iv) consummation of all other transactions contemplated by the
Transaction Documents;

           (b) copies certified by the Secretary of the Company of the
resolutions of the Company's stockholders authorizing and approving the Restated
Certificate and the filing of the Restated Certificate with the Delaware
Secretary of the State;

           (c) copies certified by the Secretary of the Company of the Restated
Certificate (as filed with the Delaware Secretary of the State) and the
Company's Bylaws, each as in effect at the Closing;

           (d) a good standing certificate with respect to the Company from the
Delaware Secretary of State; and

           (e) such other documents relating to the transactions contemplated by
this Agreement as the Purchasers or their counsel may reasonably request.

       6.17 OTHER TRANSACTIONS. The Company shall have effected the following
transactions prior to or contemporaneous with the Closing:

           (a) the Company and Iris Graphics, Inc. shall have entered into the
Credit Agreement dated December 31, 2001, and the proceeds of the Term Loan (as
defined in the Credit Agreement) shall be used to repay the promissory notes to
the former shareholders of Logic Associates, Inc.;

                                       17
<PAGE>

           (b) the Company and each of Richard Hagen, Steven Peterson and
Patricia Peterson (the "Hagen Noteholders") shall have entered into agreements
amending those certain Subordinated Non-Negotiable Promissory Notes by and
between the Company and each of the Hagen Noteholders, dated March 8, 2000, as
amended, providing for a prepayment of $4,000,000 upon the Closing and the
repayment of the remaining outstanding principal balance over a three-year
period commencing January 1, 2003 and extending the maturity date with respect
to the remaining principal amount under each of the notes to a date not earlier
than May 30, 2003; and

           (c) the Company and each of Michael Miller and Neil Miller (the
"Miller Noteholders") shall have entered into an agreement amending that certain
Subordinated Non-Negotiable Promissory Note among the Company and the Miller
Noteholders, dated March 10, 2000, providing for the repayment of the
outstanding principal balance over a two-year period commencing January 1, 2003.

       6.18 GENERAL.

           (a) Each Purchaser's obligations under Section 1 shall be contingent
upon the performance by each other Purchaser of its obligations under Section 1.

           (b) In any event the Purchasers may in their sole discretion waive
any conditions to the Closing and close. No such waiver shall be effective
unless it shall be in writing and signed by each Purchaser.

7. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSING. The obligations of
the Company to each Purchaser under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

       7.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties of
each Purchaser contained in Section 4 shall be true and correct in all material
respects on and as of the Closing with the same effect as though such
representations and warranties had been made on and as of the Closing.

       7.2 PERFORMANCE. All covenants, agreements and conditions contained in
this Agreement to be performed by the Purchasers on or prior to the Closing
shall have been performed or complied with in all material respects.

       7.3 QUALIFICATIONS. All authorizations, approvals or permits, if any, of
any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the
Stock pursuant to this Agreement shall be obtained and effective as of the
Closing.

8. MISCELLANEOUS.

       8.1 SURVIVAL OF WARRANTIES. Unless otherwise set forth in this Agreement,
the warranties and representations of the Company contained in Section 2 hereof
shall survive

                                       18
<PAGE>

the execution and delivery of this Agreement and the Closing for a period of two
(2) years following the Closing.

       8.2 ENTIRE AGREEMENT. This Agreement and the other Transaction Documents
together with all exhibits and schedules hereto and thereto constitute the
entire agreement between the Company and the Purchasers relative to the subject
matter hereof and thereof. Any previous agreement or negotiations between the
Company and the Purchasers concerning the subject matter hereof is superseded by
this Agreement and the Transaction Documents except for any agreements relating
to confidentiality.

       8.3 TRANSFER; SUCCESSORS AND ASSIGNS. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

       8.4 GOVERNING LAW. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of law.

       8.5 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

       8.6 TITLES AND SUBTITLES. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

       8.7 NOTICES. Any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by telegram or fax, or five (5) days
after being deposited in the U.S. mail, as certified or registered mail, with
postage prepaid, addressed to the party to be notified at such party's address
as set forth on the signature page or EXHIBIT A hereto, or as subsequently
modified by written notice, and if to the Company, with a copy (not constituting
notice) to Morgan, Lewis & Bockius LLP, One Oxford Centre, Thirty-Second Floor,
Pittsburgh, Pennsylvania 15219, Attention: Marlee S. Myers.

       8.8 FINDER'S FEE. Each party represents that it neither is nor will be
obligated for any finder's fee or commission in connection with this
transaction. Each Purchaser agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Purchaser or any of its officers, employees,
or representatives is responsible. The Company agrees to indemnify and hold
harmless each Purchaser from any liability for any commission or compensation in
the nature of a finder's fee

                                       19
<PAGE>

(and the costs and expenses of defending against such liability or asserted
liability) for which the Company or any of its officers, employees or
representatives is responsible.

       8.9 ATTORNEYS' FEES. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of any of the
Transaction Documents, the prevailing party shall be entitled to reasonable
attorneys' fees, costs and necessary disbursements in addition to any other
relief to which such party may be entitled.

       8.10 AMENDMENTS AND WAIVERS OF AGREEMENT. Any term of this Agreement may
be amended or waived only with the written consent of the Company and at least
seventy-five percent (75%) of the holders of shares of Stock converted or
convertible into the Common Stock. Any amendment or waiver effected in
accordance with this Section 8.10 shall be binding upon the Purchasers and each
transferee of the Stock (or the Common Stock issuable upon conversion thereof),
each future holder of all such securities, and the Company.

       8.11 SEVERABILITY. If one or more provisions of this Agreement are held
to be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of this
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of this Agreement shall be enforceable in accordance with its terms.

       8.12 DELAYS OR OMISSIONS. No delay or omission to exercise any right,
power or remedy accruing to any party under this Agreement, upon any breach or
default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-breaching or non-defaulting party nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and signed
by the party charged with such waiver and such waiver shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

       8.13 CONFIDENTIALITY. Each party hereto agrees that, except with the
prior written permission of the other party, it shall at all times keep
confidential and not divulge, furnish or make accessible to anyone any
confidential information, knowledge or data concerning or relating to the
business or financial affairs of the other parties to which such party has been
or shall become privy by reason of this Agreement, discussions or negotiations
relating to this Agreement, the performance of its obligations hereunder or the
ownership of the Stock purchased hereunder; PROVIDED, HOWEVER, that the
receiving party may disclose such information (i) on a confidential basis to its
attorneys, accountants, consultants and other professionals to the extent
necessary to obtain their services in connection with its investment in the
Company, (ii) to any prospective purchaser of Stock from such receiving party as
long as such prospective purchaser agrees in writing to be bound by the
provisions of this Section 8.13, (iii) on a confidential basis

                                       20
<PAGE>

to any affiliate or partner of such receiving party and (iv) as required by
judicial decree or applicable law. Notwithstanding the foregoing, any Purchaser
may disclose summary financial information and a narrative description of the
Company's business to partners or potential partners of such Purchaser. The
provisions of this Section 8.13 shall be in addition to, and not in substitution
for, the provisions of any separate nondisclosure agreement executed by the
parties hereto with respect to the transactions contemplated hereby.

       8.14 EXCULPATION AMONG PURCHASERS. Each Purchaser acknowledges that it is
not relying upon any person, firm or corporation, other than the Company and its
officers and directors, in making its investment or decision to invest in the
Company. Each Purchaser agrees that no Purchaser nor the respective controlling
persons, officers, directors, partners, agents, or employees of any Purchaser
shall be liable to any other Purchaser for any action heretofore or hereafter
taken or omitted to be taken by any of them in connection with the purchase of
the Securities.

       8.15 INDEMNIFICATION. The Company shall defend, indemnify and hold the
Purchasers harmless from and against any and all claims, liabilities, damages,
losses and expenses, including reasonable attorney's fees and expenses and costs
of suit, arising out of any breach of the representations and warranties, and
out of any and all breaches of covenants, warranties, stipulations, agreements
and certifications made by or on behalf of the Company, in the Transaction
Documents or in any document delivered hereunder or thereunder.

       8.16 PRESS RELEASE. Upon the consummation of the transactions
contemplated hereby, the Company may issue a press release identifying any
Purchaser by name, subject to the prior approval by such Purchaser of such press
release, which approval will not be unreasonably withheld.

       8.17 USE OF PROCEEDS. Except as set forth in Section 6.18 of this
Agreement, the proceeds the Company shall receive upon the consummation of the
transactions contemplated hereby shall be solely used for product development,
working capital and other general corporate purposes and not for investment
purposes other than high grade commercial paper or other instruments.

                            [Signature Pages Follow]

                                       21
<PAGE>

       The parties have executed this Series F Preferred Stock Purchase
Agreement as of the date first written above.

                                       COMPANY:

                                       PRINTCAFE, INC.

                                       By: /s/ Marc D. Olin
                                           -------------------------------------
                                       Name: Marc D. Olin
                                       Title: President and
                                              Chief Executive Officer

                                       Address: 40 24th Street
                                                Pittsburgh, PA 15222
                                                Attn: President
                                                Fax: (412) 456-1151

          SIGNATURE PAGE TO SERIES F PREFERRED STOCK PURCHASE AGREEMENT
<PAGE>

                                      PURCHASERS:

                                      MELLON VENTURES II, L.P.
                                      By its general partner
                                      MVMA II L.P.

                                      By its general partner
                                      MVMA Inc.

                                      By: /s/ Ryan Busch
                                          --------------------------------------
                                      Name: Ryan Busch
                                      Title: Vice President

                                      HARBOURVEST PARTNERS VI -
                                      DIRECT FUND L.P.

                                      By: HarbourVest VI - Direct Associates LLC

                                          By: HarbourVest Partners, LLC

                                              By: /s/ Robert Wadsworth
                                                  ------------------------------
                                              Name:  Robert Wadsworth
                                              Title: Managing Director

                                      SELIGMAN NEW TECHNOLOGIES FUND II, INC.

                                      By: J. & W. Seligman & Co. Incorporated,
                                          its investment adviser

                                      By:  /s/ Vishal Saluja
                                          --------------------------------------
                                          Name: Vishal Saluja
                                          Title: Vice President

          SIGNATURE PAGE TO SERIES F PREFERRED STOCK PURCHASE AGREEMENT
<PAGE>

                                       WEISS, PECK & GREER, L.L.C.

                                       By: /s/ Benjamin James Taylor
                                           -------------------------------------
                                       Name:
                                       Title:

          SIGNATURE PAGE TO SERIES F PREFERRED STOCK PURCHASE AGREEMENT
<PAGE>

                                    EXHIBITS
                                    --------

Exhibit A  - Schedule of Purchasers

Exhibit B  - Form of Amended and Restated Certificate of Incorporation

Exhibit C  - Schedule of Exceptions to Representations and Warranties

Exhibit D  - Form of Restated Investors' Rights Agreement

Exhibit E  - Form of Restated Voting Agreement

Exhibit F  - Form of Restated Co-Sale Agreement

Exhibit G  - Financial Statements

Exhibit H  - Form of Bylaws

Exhibit I  - Form of Opinion of Morgan, Lewis & Bockius LLP
<PAGE>

                                    EXHIBIT A
                                    ---------

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
                                                                                            SHARES OF SERIES F
              NAME/ADDRESS/FAX NO.                            PURCHASE PRICE                  PREFERRED STOCK
              --------------------                            --------------                  ---------------

<S>                                                <C>                                      <C>
   Mellon Ventures II, L.P.                        Cash                       5,161,644          1,861,048
   c/o Mellon Ventures, Inc.                       Cancelled Note             750,000
   Attn: Ryan Busch                                Cancelled Note             750,000
   One Mellon Center, Suite 5210                   Cancelled Note             750,000
   Pittsburgh, PA 15258-0001                       Interest on Notes          32,548
                                                   ====================================
   Fax: (412) 236-3593                             Total Purchase Price       7,444,192

   HarbourVest Partners VI - Direct Fund L.P.                    4,652,620                       1,163,155
   Attn: Ofer Nemorivsky
   One Financial Center, 44th Floor
   Boston, MA 02111
   Fax: (617) 350-0305

   Weiss, Peck & Greer, L.L.C.                                   754,944                          188,736
   Attn: Ben Taylor
   555 California Street, Suite 3130
   San Francisco, CA 94104
   Fax: (415) 989-5108

   Seligman New Technologies Fund II, Inc.                       2,791,572                          697,893
   c/o J. & W. Seligman and Co. Incorporated
   100 Park Avenue
   New York, NY 10017
   Attn: Dennis Crilly
   Fax: (212) 922-5731
</TABLE>

                                      A-1

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