Document:

<PAGE>

                                                                    EXHIBIT 10.8

                                                                  EXECUTION COPY

                          CANADIAN SECURITY AGREEMENT

                         Dated as of September 30, 1999

                                      From

                     GEORGE F. PETTINOS (CANADA) LIMITED,

                                  as Debtor,

                                      to

                      BANQUE NATIONALE DE PARIS (CANADA),

                 as Canadian Sub-Agent for the Canadian Lenders

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
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                                                                            Page
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<S>                                                                         <C>
                              ARTICLE I SECURITY

1.1   Terms Incorporated by Reference......................................... 1
1.2   Grant of Security....................................................... 1
1.3   Obligations Secured..................................................... 2
1.4   Attachment.............................................................. 2
1.5   Accounts................................................................ 3
1.6   Scope of Security Interest.............................................. 3
1.7   Care and Custody of Collateral.......................................... 3
1.8   Debtor's Dealings with Collateral....................................... 4
1.9   Insurance............................................................... 4
1.10  Leases.................................................................. 5

                            ARTICLE II ENFORCEMENT

2.1   Default................................................................. 5
2.2   Remedies................................................................ 5
2.3   Additional Rights....................................................... 6
2.4   Concerning the Receiver................................................. 7
2.5   Appointment of Attorney................................................. 7
2.6   Dealing with the Collateral and the Security Interest................... 7
2.7   Standards of Sale....................................................... 8
2.8   Dealings by Third Parties............................................... 8
2.9   Indemnity and Expenses.................................................. 8

                              ARTICLE III GENERAL

3.1   Release and Discharge................................................... 9
3.2   No Merger, Etc.......................................................... 9
3.3   Waivers, Etc............................................................ 9
3.4   Further Assurances......................................................10
3.5   Successors and Assigns..................................................10
3.6   Headings, Etc...........................................................10
3.7   Severability............................................................10
3.8   Governing Law...........................................................10
</TABLE>

Schedule I     -  Intellectual Property
Schedule II    -  Collateral Locations
Schedule III   -  Deposit Accounts
Schedule IV    -  Financing Statements

                                       i

<PAGE>

                          CANADIAN SECURITY AGREEMENT

          Canadian Security Agreement dated as of September 30, 1999 made by
George F. Pettinos (Canada) Limited (the "Debtor"), a corporation duly
                                          ------
incorporated under the laws of Ontario, Canada, to and in favor of Banque
Nationale de Paris (Canada), as Canadian Sub-Agent (the "Sub-Agent") pursuant to
                                                         ---------
a Credit Agreement dated as of September 30, 1999 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"; unless otherwise
                                           ----------------
defined herein, the terms used herein and not otherwise defined herein having
the respective meanings set forth in the Credit Agreement) by and among Better
Minerals & Aggregates Company, a Delaware corporation formerly known as "USS
Intermediate Holdco, Inc.", as Borrower, the Debtor, as Canadian Borrower, BMAC
Holdings, Inc., the Initial Lenders named therein, and Banque Nationale de
Paris, as Agent, Swing Line Bank and Initial Issuing Bank.

          WHEREAS, the Canadian Lenders will either make a Canadian Borrower
Advance or accept Bankers' Acceptances (collectively, the "Advances") as
                                                           --------
provided in the Credit Agreement; and

          WHEREAS, the Debtor has agreed to execute and deliver this security
agreement to and in favour of the Sub-Agent, for the benefit of the Canadian
Lenders as security for the payment and performance of the obligations, present
or future, direct or indirect, absolute or contingent, matured or unmatured, of
the Debtor to the Canadian Lenders pursuant to the Credit Agreement;

          NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Debtor hereby agrees with the Sub-Agent for the benefit of the
Canadian Lenders as follows:

                                   ARTICLE I

                                   SECURITY

          1.1  Terms Incorporated by Reference.  Terms defined in the Personal
Property Security Act (Ontario) (as amended from time to time, the "PPSA") and
                                                                    ----
used in this security agreement shall have the same meaning herein.
<PAGE>

                                                                               2

          1.2  Grant of Security.  (1) Subject to Section 1.6, the Debtor
hereby (i) mortgages and charges to the Sub-Agent, for the benefit of the
Canadian Lenders, as and by way of a fixed mortgage and charge; (ii) pledges to
the Sub-Agent, for the benefit of the Canadian Lenders; (iii) assigns and
transfers to the Sub-Agent, for the benefit of the Canadian Lenders, as and by
way of a specific transfer and assignment; and (iv) grants to the Sub-Agent, for
the benefit of the Canadian Lenders, a security interest in all of the Debtor's
right, title and interest in and to the personal property and undertaking of the
Debtor now owned or hereafter acquired (collectively, the "Collateral"),
                                                           ----------
including, without limitation, any and all of the Debtor's:

          (a) inventory, including goods held for sale or lease, goods furnished
     or to be furnished to third parties under contracts of lease, consignment
     or service, goods which are raw materials or work in process, goods used in
     or procured for packing, and materials used or consumed in the business of
     the Debtor (collectively, the "Inventory");
                                    ---------

          (b) equipment, fixtures and other goods of every kind and description,
     all licenses and other rights and all records, files, charts, plans,
     drawings, specifications, manuals and comments relating thereto
     (collectively, the "Equipment");
                         ---------

          (c) accounts, due or accruing, and all agreements, books, accounts,
     invoices, letters, documents and papers recording, evidencing or relating
     thereto;

          (d) deposit accounts, including, without limitation, the Deposit
     Accounts and the Canadian Cash Collateral Account (as such terms are
     hereinafter defined), all funds held therein and all certificates and
     instruments, if any, from time to time, representing any such deposit
     accounts, together with all interest, dividends, cash, instruments and
     other property from time to time received, receivable or otherwise
     distributed in respect of or in exchange for any or all of such deposit
     accounts;

          (e) money, documents of title, chattel paper, instruments and
     securities;

          (f) intangibles including all security interests, goodwill, choses in
     action and other contractual benefits (including, without limitation, all
     benefits under insurance policies and any hedge agreements) and all trade
     marks, trade mark registrations and pending trade mark applications,
     patents and pending patent applications and copyrights and other
     intellectual property (collectively, the "Intellectual Property") including
                                               ---------------------
     the Intellectual Property described in Schedule I hereto;

          (g) substitutions and replacements of and increases, additions and,
     where applicable, accessions to the property described in Sections
     1.2(l)(a)-(f) inclusive; and

          (h) proceeds in any form derived directly or indirectly from any
     dealing with all or any part of the property described in Sections
     1.2(l)(a)-(g) inclusive or the proceeds therefrom.

          (2) Without limiting the generality of the foregoing, the Collateral
shall include all personal property of the Debtor now or hereafter located on or
about or in transit to or
<PAGE>

                                                                               3

from the locations set out in Schedule II hereto. The Debtor shall promptly
inform the Sub-Agent in writing of any other location at which the Collateral
consisting of tangible personal property may in the future be located.

          1.3  Obligations Secured.  The mortgages, charges, pledges, transfers,
assignments and security interest granted hereby (collectively, the "Security
                                                                    ---------
Interest") by the Debtor secure payment to the Canadian Lenders and
---------
performance of all Obligations of the Debtor  now or hereafter existing under or
in respect of the Loan Documents, whether direct or indirect, absolute or
contingent, matured or unmatured, at any time due or accruing, owing by the
Debtor to the Canadian Lenders pursuant to the Credit Agreement.

          1.4  Attachment.  (1) The Debtor and the Sub-Agent hereby
acknowledge that (i) value has been given; (ii) the Debtor has rights in the
Collateral; (iii) they have not agreed to postpone the time of attachment of the
Security Interest; and (iv) the Debtor has received a duplicate original copy of
this security agreement.

          (2)  If at any time the Debtor acquires Collateral consisting of
chattel paper, instruments, securities or negotiable documents of title
(collectively, "Negotiable Collateral"), the Debtor will, forthwith upon receipt
                ---------------------
by the Debtor, deliver to the Sub-Agent, for the benefit of the Canadian
Lenders, such Negotiable Collateral and shall, at the request of the Sub-Agent,
(i) cause the transfer thereof to the Sub-Agent to be registered wherever, in
the reasonable opinion of the Sub-Agent, such registration may be required or
advisable; (ii) duly endorse the same for transfer in blank or as the Sub-Agent
may reasonably direct; and (iii) forthwith deliver to the Sub-Agent any and all
consents or other instruments or documents which may be necessary to effect the
transfer of the Negotiable Collateral to the Sub-Agent or any third party.

          1.5  Accounts.  So long as any Advance shall remain outstanding
under the Credit Agreement, the Debtor shall maintain deposit accounts in the
Province of Ontario ("Deposit Accounts") only with banks that are listed on
                      ----------------
Schedule III (as such Schedule may be amended or supplemented from time to time)
and shall maintain with one of the banks listed on Schedule III a concentration
account into which all cash receipts and from which all cash disbursements of
its business in the normal course shall flow (the "Canadian Cash Collateral
                                                   ------------------------
Account").
-------

          1.6  Scope of Security Interest.  (1)  To the extent that the
creation of the Security Interest would constitute a breach or permit the
acceleration of any agreement, right, license or permit to which the Debtor is a
party, the Security Interest shall not attach thereto but the Debtor shall hold
its interest therein in trust for the Sub-Agent and the Canadian Lenders, and
shall assign such agreement, right, license or permit to the Sub-Agent, for the
benefit of the Canadian Lenders, or as it may direct forthwith upon obtaining
the consent of the other party thereto.
<PAGE>

                                                                               4

          (2) Subject to Section 2.2, the grant of the Security Interest in the
Intellectual Property shall not affect in any way the Debtor's rights to
commercially exploit the Intellectual Property, to defend the Intellectual
Property, to enforce the Debtor's rights therein or with respect thereto against
third parties in any court or to the claim and be entitled to receive any
damages with respect to any infringement thereof.

          1.7  Care and Custody of Collateral.  (1)  The Sub-Agent shall not
be bound to collect, dispose of, realize, protect or enforce any of the Debtor's
right, title and interest in and to the Collateral or to institute proceedings
for the purpose thereof and, without limiting the generality of the foregoing,
the Sub-Agent shall not be required to take any steps necessary to preserve
rights against prior parties in respect of any Negotiable Collateral.

          (2) The Sub-Agent shall not have any obligation to keep Collateral in
its possession identifiable.

          (3) The Sub-Agent may, at any time upon (a) the occurrence and during
the continuance of an Event of Default and (b) either the making of the request
or the granting of the consent specified by Section 6.01 of the Credit Agreement
to authorize the Agent to declare the "Advances" under and as defined therein
due and payable pursuant to the provisions of such Section 6.01 or the making of
the demand specified in Section 6.02 of the Credit Agreement to require the
Borrower to pay amounts in respect of Letters of Credit or the Debtor to pay
amounts in respect of Bankers' Acceptances (i) notify any person obligated on an
account or on chattel paper or any obligor on an instrument to make payment
thereunder to the Sub-Agent whether or not the Debtor was theretofore making
collections thereon; and (ii) assume control of any proceeds arising from the
Collateral.

          1.8  Debtor's Dealings with Collateral.  (1)  The Debtor shall not,
without the prior written consent of the Sub-Agent, sell, exchange, lease,
release or abandon or otherwise dispose of the Collateral except as permitted
under the Credit Agreement.

          (2) The Debtor represents and warrants as follows:

          (a) All of the Equipment and Inventory are located on or about or in
     transit to or from the locations specified in Schedule II hereto.

          (b) The Debtor is the legal and beneficial owner of the Collateral
     free and clear of any Liens, except for the Liens permitted in the Loan
     Documents and for the security interests created by this security
     agreement.  Except for the Financing Statements listed on Schedule IV
     hereto, no effective financing statement or other instrument similar in
     effect covering all or any part of the Collateral is on file in any
     recording office, except such as may have been filed in favour of the Sub-
     Agent, for the benefit of the Canadian
<PAGE>

                                                                               5

     Lenders, relating to this security agreement or as otherwise permitted in
     the Loan Documents.

          (c) Except to the extent located on or in leased property or subject
     to operating leases, the Debtor has exclusive possession and control of the
     Equipment and Inventory other than Inventory in transit to the Debtor from
     locations outside Canada.

          (d) This security agreement creates a valid security interest in the
     Collateral of the Debtor, securing the payment of the Obligations of the
     Debtor.

          1.9  Insurance.  (1)  The Debtor shall, at its own expense, maintain
insurance in accordance with Section 5.01(d) of the Credit Agreement.  Each
policy for liability insurance shall provide for all losses to be paid on behalf
of the Sub-Agent and the Debtor as their interests may appear, and each policy
for property damage insurance shall provide for all losses to be paid directly
to the Sub-Agent, for the ratable benefit of the Canadian Lenders.  Each such
policy shall in addition (i) name the Debtor and the Sub-Agent as insured
parties thereunder (without any representation or warranty by or obligation upon
the Sub-Agent) as their interests may appear, (ii) contain the agreement by the
insurer that any loss thereunder with respect to damage to the Debtor's property
in an amount in excess of $500,000 shall be payable to the Sub-Agent
notwithstanding any action, inaction or breach of representation or warranty by
the Debtor, (iii) provide that there shall be no recourse against the Sub-Agent
for payment of premiums or other amounts with respect thereto and (iv) provide
that at least ten days' prior written notice of cancellation or of lapse shall
be given to the Sub-Agent by the insurer.  The Debtor shall, as often as the
Sub-Agent reasonably requests, deliver to the Sub-Agent original or duplicate
policies of such insurance.  Further, the Debtor shall, at the reasonable
request of the Sub-Agent, duly execute and deliver instruments of assignment of
such insurance policies to comply with the requirements of Section 3.4 and use
reasonable efforts to cause the insurers to acknowledge notice of such
assignment.

          (2) Reimbursement under any liability insurance maintained by the
Debtor pursuant to this Section 1.9 may be paid directly to the Person who shall
have incurred liability covered by such insurance.  In case of any loss
involving damage to Equipment or Inventory when Section 1.9(3) is not
applicable, the Debtor shall be permitted to use any proceeds to make or cause
to be made the necessary repairs to or replacements or substitutions of or
additions to such Equipment, Inventory, fixed assets, real property or
improvements relating to property covered by such payments (replacements or
substitutions to be of such same type of property), and any proceeds of
insurance maintained by the Debtor pursuant to this Section 1.9 shall be paid
and applied pursuant to the terms of the Credit Agreement.

          (3) Upon (i) the occurrence and during the continuance of any Event of
Default and (ii) either the making of the request or the granting of the consent
specified in Section 6.01 of the Credit Agreement to authorize the Agent to
declare the "Advances" under and
<PAGE>

                                                                               6

as defined therein due and payable pursuant to the provisions of such Section
6.01 or the making of the demand specified in Section 6.02 of the Credit
Agreement to require the Borrower to pay amounts in respect of Letters of Credit
or the Debtor to pay amounts in respect of Bankers' Acceptances, all insurance
payments in respect of such Equipment or Inventory shall be paid to and applied
by the Sub-Agent as specified in Section 2.2.

          1.10  Leases.  The last day of the term of any lease, oral or
written, or any agreement therefor, now held or hereafter acquired by the Debtor
shall be excepted from the Security Interests and shall not form part of the
Collateral but the Debtor shall stand possessed of such one day remaining upon
trust to assign and dispose of the same as the Sub-Agent directs.  If any such
lease or agreement therefor entered into by the Debtor in the ordinary course of
business of such Debtor contains a provision which provides in effect that such
lease or agreement may not be assigned, sub-leased, charged or made the subject
of any encumbrance without the consent of the lessor, the application of the
Security Interests to any such lease or agreement shall be conditional upon such
consent being obtained.

                                   ARTICLE II

                                  ENFORCEMENT

          2.1  Default.  The Security Interest shall be and become enforceable
against the Debtor upon (i) the occurrence and during the continuance of an
Event of Default and (ii) either the making of the request or the granting of
the consent specified by Section 6.01 of the Credit Agreement to authorize the
Agent to declare the "Advances" under and as defined therein due and payable
pursuant to the provisions of such Section 6.01 or the making of the demand
specified in Section 6.02 of the Credit Agreement to require the Borrower to pay
amounts in respect of Letters of Credit or the Debtor to pay amounts in respect
of Bankers' Acceptances.

          2.2  Remedies.  Whenever the Security Interest has become enforceable,
the Sub-Agent may, for the benefit of the Canadian Lenders, realize upon the
Collateral and enforce the rights of the Sub-Agent and the Canadian Lenders by:

          (a)  entry onto any premises where Collateral consisting of tangible
     personal property may be located;

          (b)  taking possession of the Collateral by any method permitted by
     law;

          (c)  sale or lease of the Collateral;

          (d)  collection of any proceeds arising in respect of the Collateral;
<PAGE>

                                                                               7

          (e) collection, realization or sale of or other dealing with the
     accounts;

          (f) the appointment by instrument in writing of a receiver (which term
     as used in this security agreement includes a receiver and manager) or
     agent of the Collateral;

          (g) the institution of proceedings in any court of competent
     jurisdiction for the appointment of a receiver of the Collateral;

          (h) the institution of proceedings in any court of competent
     jurisdiction for sale or foreclosure of the Collateral;

          (i) filing proofs of claim and other documents to establish claims in
     any proceeding relating to the Debtor; and

          (j) any other remedy or proceeding authorized or permitted under the
     PPSA or otherwise by law or equity.

Such remedies may be exercised from time to time separately or in combination
and are in addition to and not in substitution for any other rights of the Sub-
Agent and the Canadian Lenders however created.  Neither the Sub-Agent nor any
Canadian Lender shall be bound to exercise any such right or remedy, and the
exercise of such rights and remedies shall be without prejudice to the rights of
the Sub-Agent or any Canadian Lender in respect of the Obligations including the
right to claim for any deficiency.

          2.3  Additional Rights.  In addition to the remedies of the Sub-
Agent and the Canadian Lenders set forth in Section 2.2, the Sub-Agent may,
whenever the Security Interest has become enforceable,

          (a) require the Debtor, at the Debtor's expense, to assemble the
     Collateral at a place or places designated by notice in writing given by
     the Sub-Agent to the Debtor;

          (b) require the Debtor, by notice in writing given by the Sub-Agent to
     the Debtor, to disclose to the Sub-Agent the location or locations of the
     Collateral;

          (c) repair, process, modify, complete or otherwise deal  with  the
     Collateral and prepare for the disposition of the Collateral, whether on
     the premises of the Debtor or otherwise;

          (d) carry on all or any part of the business or businesses of the
     Debtor and, to the exclusion of all others including the Debtor, enter
     upon, occupy and use all of any of the premises, buildings, plant,
     undertaking and other property of or used by the Debtor for such time as
     the Sub-Agent sees fit, free of charge, and neither the Sub-Agent nor any
<PAGE>

                                                                               8

     Canadian Lender shall be liable to the Debtor for any act, omission or
     negligence in so doing or for any rent, charges, depreciation or damages
     incurred in connection therewith or resulting therefrom;

          (e) borrow for the purpose of carrying on the business of the Debtor
     or for the maintenance, preservation of protection of the Collateral and
     mortgage, charge, pledge or grant a security interest in the Collateral,
     whether or not in priority to the Security Interest, to secure repayment;
     and

          (f) demand, commence, continue or defend any judicial or
     administrative proceedings for the purpose of protecting, seizing,
     collecting, realizing or obtaining possession or payment of the Collateral,
     and give valid and effectual receipts and discharges therefor and
     compromise or give time for the payment or performance of all or any part
     of the accounts or any other obligation of any third party to the Debtor.

          2.4  Concerning the Receiver.  (1)  Any receiver appointed by the
Sub-Agent, for the benefit of the Canadian Lenders, shall be vested with the
rights and remedies which could have been exercised by the Sub-Agent or the
Canadian Lenders in respect of the Debtor or the Collateral and such other
powers and discretions as are granted in the instrument of appointment and any
instrument or instruments supplemental thereto.  The identity of the receiver,
any replacement thereof and any remuneration thereof shall be within the sole
and unfettered discretion of the Sub-Agent.

          (2) Any receiver appointed by the Sub-Agent for the benefit of the
Canadian Lenders shall act as agent for the Sub-Agent for the purposes of taking
possession of the Collateral, but otherwise and for all other purposes (except
as provided below), as agent for the Debtor.  The receiver may sell, lease, or
otherwise dispose of Collateral as agent for the Debtor or as agent for the Sub-
Agent, for the benefit of the Canadian Lenders, as the Sub-Agent may determine
in its discretion.  The Debtor agrees to ratify and confirm all actions of the
receiver acting as agent for the Debtor, and to release and indemnify the
receiver in respect of all such actions.

          (3) The Sub-Agent, in appointing or refraining from appointing any
receiver, shall not incur liability to the receiver, the Debtor or otherwise and
shall not be responsible for any misconduct or negligence of such receiver.

          2.5  Appointment of Attorney.  The Debtor hereby irrevocably
appoints the Sub-Agent (and any officer thereof) as attorney of the Debtor (with
full power of substitution) upon (i) the occurrence and during the continuance
of an Event of Default and (ii) either the making of the request or the granting
of the consent specified by Section 6.01 of the Credit Agreement to authorize
the Agent to declare the "Advances" under and as defined therein due and payable
pursuant to the provisions of such Section 6.01 or the making of the demand
<PAGE>

                                                                               9

specified in Section 6.02 of the Credit Agreement to require the Borrower to pay
amounts in respect of Letters of Credit or the Debtor to pay amounts in respect
of Bankers' Acceptances, to exercise in the name of and on behalf of the Debtor
any of the Debtor's right (including the right of disposal), title and interest
in and to the Collateral including the execution, endorsement and delivery of
any agreements, documents, instruments, securities, documents of title and
chattel paper and any notices, receipts, assignments or verifications of the
accounts.  All acts of any such attorney are hereby ratified and approved, and
such attorney shall not be liable for any act, failure to act or any other
matter or thing in connection therewith, except for its own negligence or wilful
misconduct.

          2.6  Dealing with the Collateral and the Security Interest  .  (1)
The Sub-Agent, for the benefit of the Canadian Lenders, shall not be obliged to
exhaust its recourse against the Debtor or any other Person or Persons or
against any other security it may hold in respect of the Obligations before
realizing upon or otherwise dealing with the Collateral in such manner as the
Sub-Agent  may consider desirable.

          (2) The Sub-Agent may grant extensions or other indulgences, take and
give up securities, accept compositions, grant releases and discharges and
otherwise deal with the Debtor and with other parties, sureties or securities as
the Sub-Agent may see fit without prejudice to the Obligations or the rights of
the Sub-Agent and the Canadian Lenders in respect of the Collateral.

          (3) Subject to section 2.7, the Sub-Agent shall not be (i) liable or
accountable for any failure to collect, realize or obtain payment in respect of
the Collateral; (ii) bound to institute proceedings for the purpose of
collecting, enforcing, realizing or obtaining payment of the Collateral or for
the purpose of preserving any rights of the Sub-Agent, the Canadian Lenders, the
Debtor or any other parties in respect thereof; (iii) responsible for any loss
occasioned by any sale or other dealing with the Collateral or by the retention
of or failure to sell or otherwise deal therewith; or (iv) bound to protect the
Collateral from depreciating in value or becoming worthless.

          2.7  Standards of Sale.  Without prejudice to the ability of the
Sub-Agent to dispose, for the benefit of the Canadian Lenders, of the Collateral
in any manner which is commercially reasonable, the Debtor acknowledges that a
disposition of Collateral by the Sub-Agent  which takes place substantially in
accordance with the following provisions shall be deemed to be commercially
reasonable:

          (a) Collateral may be disposed of in whole or in part;

          (b) Collateral may be disposed of by public auction, public tender or
     private contract, with or without advertising and without any other
     formality;
<PAGE>

                                                                              10

          (c) any purchaser or lessee of such Collateral may be a customer of
     the Sub-Agent or any Canadian Lender or a permitted assignee hereunder,
     provided that the Collateral is purchased or leased by such customer on the
     basis of fair market value with regard to existing circumstances;

          (d) a disposition of Collateral may be on such terms and conditions as
     to credit or otherwise as the Sub-Agent, in its sole discretion, may deem
     advantageous; and

          (e) the Sub-Agent may establish an upset or reserve bid or price in
     respect of the Collateral;

but in no event shall any sale of Collateral be inconsistent with the standards
that are generally used by reasonable persons in dispositions of like
Collateral.

          2.8  Dealings by Third Parties.  No person dealing with the Sub-
Agent or its agent or a receiver shall be required (i) to determine whether the
Security Interest has become enforceable; (ii) to determine whether the powers
which the Sub-Agent or its agent is purporting to exercise have become
exercisable; (iii) to determine whether any money remains due to the Sub-Agent
by the Debtor; (iv) to determine the necessity or expediency of the stipulations
and conditions subject to which any sale or lease shall be made; (v) to
determine the propriety or regularity of any sale or of any other dealing by the
Sub-Agent with the Collateral; or (vi) to see to the application of any money
paid to the Sub-Agent.

          2.9  Indemnity and Expenses.  (1)  Subject to Section 2.13(g) of the
Credit Agreement, the Debtor agrees to indemnify the Sub-Agent and each Canadian
Lender in connection with any claims, losses and liabilities resulting from this
security agreement to the extent required by, and in accordance with the
provisions of, Section 8.04(b) of the Credit Agreement.

          (2) Subject to Section 2.13(g) of the Credit Agreement, the Debtor
agrees to pay the Sub-Agent such amounts of any fees and expenses incurred by
the Sub-Agent in connection with the administration of this security agreement
as is required by, and in accordance with the provisions of, Sections 8.04(a)
and (b) of the Credit Agreement.
<PAGE>

                                                                              11

                                  ARTICLE III

                                    GENERAL

          3.1  Release and Discharge.  (1) Upon any sale, lease, transfer or
other disposition of any item of any item of Collateral in accordance with the
terms of the Loan Documents, the Sub-Agent will, at the Debtor's expense,
execute and deliver to the Debtor such documents as the Debtor shall reasonably
request to evidence the release of such item of Collateral from the assignment
and security interest granted hereby; provided, however, that (i) at the time of
                                      --------  -------
such request and such release, no Event of Default shall have occurred and be
continuing, (ii) except to the extent such sale, lease or transfer or other
disposition is permitted under Section 5.02(e) of the Credit Agreement, the
Debtor shall have delivered to the Sub-Agent, at least ten Business Days prior
to the date of the proposed release, a written request for release describing
the item of Collateral and the terms of the sale, lease, transfer or other
disposition in reasonable detail, including, without limitation, the price
thereof and any expenses in connection therewith, together with a form of
release for execution by the Sub-Agent and a certification by the Debtor to the
effect that the transaction is in compliance with the Loan Documents and as to
such other matters as the Sub-Agent may reasonably request and (iii) the
proceeds of any such sale, lease, transfer or other disposition required to be
applied in accordance with Section 2.07 of the Credit Agreement shall be paid
to, or in accordance with the instructions of, the Sub-Agent at the closing.

          (2) The Security Interest shall be discharged, and all rights to the
Collateral shall revert to the Debtor, at the expense of the Debtor upon, but
only upon, the latest of the payment in full in cash of the Obligations
constituting an Advance or other Obligations then due and payable, the
Termination Date and the Termination or expiration of all Bank Hedge Agreements.
The Sub-Agent and the Canadian Lenders shall, at the Debtor's expense, execute
and deliver to the Debtor such releases and discharges as the Debtor or its
counsel may reasonably require to evidence such termination and promptly release
and return Collateral in its possession.

          3.2  No Merger, Etc.  No judgment recovered by the Sub-Agent or any
Canadian Lender in connection herewith shall operate by way of merger of or in
any way affect the Security Interest, which is in addition to and not in
substitution for any other security now or hereafter held by the Sub-Agent or
any Canadian Lender on its behalf in respect of the Obligations.

          3.3  Waivers, Etc.  No amendment, consent or waiver by the Sub-Agent
shall be effective unless made in writing and signed by an authorized officer of
the Sub-Agent and then such amendment, waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.
<PAGE>

                                                                              12

          3.4  Further Assurances.  The Debtor shall from time to time,
whether before or after the Security Interest shall have become enforceable, do
all such acts and things and execute and deliver all such deeds, transfers,
assignments and instruments as the Sub-Agent may reasonably require to protect
the Collateral or perfect the Security Interest or to enable the Sub-Agent to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, and the Debtor shall, from time to time after the Security Interest
has become enforceable, do all such acts and things and execute and deliver all
such deeds, transfers, assignments and instruments as the Sub-Agent may
reasonably require for facilitating the sale of the Collateral in connection
with any realization thereof.

          3.5  Successors and Assigns.  This security agreement shall be
binding upon the Debtor and its respective successors and assigns, and shall
enure, together with the rights and remedies of each of the Sub-Agent and the
Debtor hereunder and their respective successors and assigns, to the benefit of
the Sub-Agent and the Canadian Lenders and the Debtor, respectively, and their
respective successors and assigns.

          3.6  Headings, Etc.  The division of this security agreement into
sections and subsections and the insertion of headings are for convenience of
reference only and shall not affect the construction or interpretation thereof.

          3.7  Severability.  If any provisions of this security agreement
shall be deemed by any court of competent jurisdiction to be invalid or void,
the remaining provisions shall remain in full force and effect.

          3.8  Governing Law.  This security agreement shall be governed by
and construed in accordance with the laws of the Province of Ontario and the
laws of Canada applicable therein and shall be treated in all respects as an
Ontario contract.
<PAGE>

                                                                              13

          IN WITNESS WHEREOF the Debtor has duly executed this security
agreement under the hands of its proper officers duly authorized in that behalf
as of the day and year first above written.

                                            GEORGE F. PETTINOS (CANADA) LIMITED

                                            Per:  /s/
                                                 ----------------------------
                                            Authorized Signing Officer
<PAGE>

                                                                      SCHEDULE I

                             INTELLECTUAL PROPERTY
                             ---------------------

                      GEORGE F. PETTINOS (CANADA) LIMITED
                      -----------------------------------
<PAGE>

                                                                     SCHEDULE II

                             COLLATERAL, LOCATIONS
                             ---------------------

                      GEORGE F. PETTINOS (CANADA) LIMITED
                      -----------------------------------

Street Address    County and     Lessor     Expiration     Annual Rental
                     State                     Date            Loss

<PAGE>

                                                                    SCHEDULE III

                                DEPOSIT ACCOUNTS
                                ----------------

                      GEORGE F. PETTINOS (CANADA) LIMITED
                      -----------------------------------

NAME AND ADDRESS OF BANK                          ACCOUNT NUMBER
------------------------                          --------------
<PAGE>

                                                                     SCHEDULE IV

                              FINANCING STATEMENTS
                              --------------------

                      GEORGE F. PETTINOS (CANADA) LIMITED
                      -----------------------------------
<PAGE>

                                                               EXHIBIT G TO THE
                                                               CREDIT AGREEMENT
                                                         AS SEPARATELY EXECUTED

                          CANADIAN SECURITY AGREEMENT

                         Dated as of September 30, 1999

                                      From

                     GEORGE F. PETTINOS (CANADA) LIMITED,

                                  as Debtor,

                                      to

                      BANQUE NATIONALE DE PARIS (CANADA),

                 as Canadian Sub-Agent for the Canadian Lenders
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
                              ARTICLE I SECURITY

1.1   Terms Incorporated by Reference......................................... 1
1.2   Grant of Security....................................................... 1
1.3   Obligations Secured..................................................... 2
1.4   Attachment.............................................................. 2
1.5   Accounts................................................................ 3
1.6   Scope of Security Interest.............................................. 3
1.7   Care and Custody of Collateral.......................................... 3
1.8   Debtor's Dealings with Collateral....................................... 4
1.9   Insurance............................................................... 4
1.10  Leases.................................................................. 5

                            ARTICLE II ENFORCEMENT

2.1   Default................................................................. 5
2.2   Remedies................................................................ 5
2.3   Additional Rights....................................................... 6
2.4   Concerning the Receiver................................................. 7
2.5   Appointment of Attorney................................................. 7
2.6   Dealing with the Collateral and the Security Interest................... 7
2.7   Standards of Sale....................................................... 8
2.8   Dealings by Third Parties............................................... 8
2.9   Indemnity and Expenses.................................................. 8

                              ARTICLE III GENERAL

3.1   Release and Discharge................................................... 9
3.2   No Merger, Etc.......................................................... 9
3.3   Waivers, Etc............................................................ 9
3.4   Further Assurances......................................................10
3.5   Successors and Assigns..................................................10
3.6   Headings, Etc...........................................................10
3.7   Severability............................................................10
3.8   Governing Law...........................................................10
</TABLE>

Schedule I     -  Intellectual Property
Schedule II    -  Collateral Locations
Schedule III   -  Deposit Accounts
Schedule IV    -  Financing Statements

                                       i<PAGE>

                                                                    EXHIBIT 10.9

                                                                  EXECUTION COPY

                                PARENT GUARANTY

                         Dated as of September 30, 1999

                                      From

                              BMAC HOLDINGS, INC.,

                                 as Guarantor,
                                 -- ---------

                                  in favor of

                       THE SECURED PARTIES REFERRED TO IN
                    THE CREDIT AGREEMENT REFERRED TO HEREIN

<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
Section                                                                   Page
<S>                                                                       <C>
Section 1.    Guaranty                                                       1

Section 2.    Guaranty Absolute                                              1

Section 3.    Waivers and Acknowledgments                                    2

Section 4.    Subrogation                                                    3

Section 5.    Payments Free and Clear of Taxes, Etc                          3

Section 6.    Representations and Warranties                                 5

Section 7.    [Intentionally Omitted.]                                       6

Section 8.    [Intentionally Omitted.]                                       6

Section 9.    Amendments, Etc                                                6

Section 10.   Notices, Etc                                                   6

Section 11.   No Waiver; Remedies                                            6

Section 12.   Right of Set-off                                               7

Section 13.   Continuing Guaranty; Assignments under the Credit Agreement    7

Section 14.   Execution in Counterparts                                      7

Section 15.   Governing Law; Jurisdiction; Waiver of Jury Trial, Etc         7
</TABLE>

                                       i

<PAGE>

                                 PARENT GUARANTY

          PARENT GUARANTY dated as of September 30, 1999 made by BMAC Holdings,
Inc., a Delaware corporation (the "Guarantor"), in favor of the Secured Parties
                                   ---------
(as defined in the Credit Agreement referred to below).

          PRELIMINARY STATEMENT.  Better Minerals & Aggregates Company, a
Delaware corporation formerly known as "USS Intermediate Holdco, Inc." (the
"Borrower"), the Guarantor and George F. Pettinos (Canada) Limited, a
---------
corporation organized and existing under the laws of Ontario Canada (the
"Canadian Borrower"), have entered into a Credit Agreement dated as of September
------------------
30, 1999 (said agreement, as it may hereafter be amended or otherwise modified
from time to time, being the "Credit Agreement"; the terms defined therein and
                              ----------------
not otherwise defined herein being used herein as therein defined), with certain
Lender Parties party thereto and Banque Nationale de Paris, as Agent for such
Lender Parties and as Swing Line Bank and Initial Issuing Bank.  It is a
condition precedent to the making of Advances, the purchasing, accepting or
renewing of a Bankers' Acceptance and the issuance of Letters of Credit by the
Lender Parties under the Credit Agreement and the entry by the Hedge Banks into
Bank Hedge Agreements with the Loan Parties from time to time that the Guarantor
shall have executed and delivered this Guaranty.

          NOW, THEREFORE, in consideration of the premises and in order to
induce the Lender Parties to make Advances and Drawings and to issue Letters of
Credit under the Credit Agreement from time to time and the Hedge Banks to enter
into Bank Hedge Agreements with the Loan Parties from time to time, the
Guarantor hereby agrees as follows:

          Section 1.  Guaranty.  The Guarantor hereby unconditionally and
                      --------
irrevocably guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all Obligations of the Loan Parties
now or hereafter existing under the Loan Documents, whether for principal,
interest, fees, expenses or otherwise (such Obligations being the "Guaranteed
                                                                   ----------
Obligations").  Without limiting the generality of the foregoing, the
-----------
Guarantor's liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by the Borrower or the Canadian
Borrower to the Agent or any other Secured Party under the Loan Documents but
for the fact that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization or similar proceeding involving such Borrower or
such Canadian Borrower.
<PAGE>

          Section 2.  Guaranty Absolute.  The Guarantor guarantees that the
                      -----------------
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Agent or any other Secured Party with respect thereto.  The Obligations of the
Guarantor under this Guaranty are independent of the Guaranteed Obligations or
any other Obligations of any other Loan Party under the Loan Documents, and a
separate action or actions may be brought and prosecuted against the Guarantor
to enforce this Guaranty, irrespective of whether any action is brought against
the Borrower, the Canadian Borrower or any other Loan Party or whether the
Borrower, the Canadian Borrower or any other Loan Party is joined in any such
action or actions.  The liability of the Guarantor under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and the Guarantor
hereby irrevocably waives any defenses it may now or hereafter have in any way
relating to, any or all of the following:

          (a) any lack of validity or enforceability of any Loan Document or any
     agreement or instrument relating thereto;

          (b) any change in the time, manner or place of payment of, or in any
     other term of, all or any of the Guaranteed Obligations or any other
     Obligations of any other Loan Party under the Loan Documents, or any other
     amendment or waiver of or any consent to departure from any Loan Document,
     including, without limitation, any increase in the Guaranteed Obligations
     resulting from the extension of additional credit to the Borrower, the
     Canadian Borrower or any of their Subsidiaries or otherwise;

          (c) any taking, exchange, release or non-perfection of any Collateral,
     or any taking, release or amendment or waiver of or consent to departure
     from any other guaranty, for all or any of the Guaranteed Obligations;

          (d) any manner of application of Collateral, or proceeds thereof, to
     all or any of the Guaranteed Obligations, or any manner of sale or other
     disposition of any Collateral for all or any of the Guaranteed Obligations
     or any other Obligations of any other Loan Party under the Loan Documents
     or any other assets of the Borrower, the Canadian Borrower or any of their
     Subsidiaries;

          (e) any change, restructuring or termination of the corporate
     structure or existence of the Borrower, the Canadian Borrower or any of
     their Subsidiaries;

          (f) any failure of any Secured Party to disclose to the Borrower, the
     Canadian Borrower, the Guarantor or any other Loan Party any information
     relating to the financial condition, operations, properties or prospects of
     any other Loan Party now or in the future known to any Secured Party (the
     Guarantor waiving any duty on the part of the Secured Parties to disclose
     such information); or

          (g) any other circumstance (including, without limitation, any statute
     of limitations) or any existence of or reliance on any representation by
     the Agent or any other Secured Party that might otherwise constitute a
     defense available to, or a discharge

                                       2
<PAGE>

     of, the Borrower, the Canadian Borrower, the Guarantor, any other Loan
     Party or any other guarantor or surety.

          This Guaranty shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any of the Guaranteed Obligations is
rescinded or must otherwise be returned by any Secured Party or any other Person
upon the insolvency, bankruptcy or reorganization of the Borrower, the Canadian
Borrower or any other Loan Party or otherwise, all as though such payment had
not been made.

          Section 3.  Waivers and Acknowledgments.  (a)  The Guarantor hereby
                      ---------------------------
waives promptness, diligence, notice of acceptance and any other notice with
respect to any of the Guaranteed Obligations and this Guaranty and any
requirement that the Agent or any other Secured Party protect, secure, perfect
or insure any Lien or any property subject thereto or exhaust any right or take
any action against the Borrower, the Canadian Borrower or any other Person or
any Collateral.

          (b) The Guarantor hereby waives any right to revoke this Guaranty, and
acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

          (c) The Guarantor acknowledges that it will receive substantial direct
and indirect benefits from the financing arrangements contemplated by the Loan
Documents and that the waivers set forth in this Section 3 are knowingly made in
contemplation of such benefits.

          Section 4.  Subrogation.  The Guarantor will not exercise any rights
                      -----------
that it may now or hereafter acquire against the Borrower, the Canadian Borrower
or any other insider guarantor that arise from the existence, payment,
performance or enforcement of the Guarantor's Obligations under this Guaranty or
any other Loan Document, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution or indemnification and any
right to participate in any claim or remedy of the Agent or any other Secured
Party against any Loan Party or any other insider guarantor or any Collateral,
whether or not such claim, remedy or right arises in equity or under contract,
statute or common law, including, without limitation, the right to take or
receive from any Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all of the Obligations constituting an Advance or Drawing and all other
Guaranteed Obligations or amounts payable under this Guaranty shall have been
paid in full in cash, all Bank Hedge Agreements shall have expired or terminated
and the Commitments shall have expired or terminated.  If any amount shall be
paid to the Guarantor in violation of the preceding sentence at any time prior
to the later of the payment in full in cash of the Guaranteed Obligations and
all other amounts payable under this Guaranty and the later of (i) the
Termination Date and (ii) the expiration or termination of all Bank Hedge
Agreements, such amount shall be held in trust for the benefit of the Agent and
the other Secured Parties and shall forthwith be paid to the Agent to be
credited and applied to the Guaranteed Obligations and all other amounts payable
under this Guaranty, whether matured or unmatured, in accordance with the terms
of the Loan Documents.  If (i) the Guarantor shall make payment to the Agent or
any other Secured Party of all or any part of the Guaranteed Obligations, (ii)
all of the

                                       3
<PAGE>

Guaranteed Obligations payable under this Guaranty shall be paid in full in cash
and (iii) the Termination Date shall have occurred and all Bank Hedge Agreements
shall have expired or terminated, the Agent and the other Secured Parties will,
at the Guarantor's request and expense, execute and deliver to the Guarantor
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to the Guarantor of an
interest in the Guaranteed Obligations resulting from such payment by the
Guarantor.

          Section 5.  Payments Free and Clear of Taxes, Etc.  (a)  Any and all
                      -------------------------------------
payments by the Guarantor hereunder shall be made, in accordance with Section
2.14 of the Credit Agreement, free and clear of and without deduction or
withholding for any and all Taxes.  If the Guarantor shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder to any Lender
Party or the Agent, (i) the sum payable shall be increased as may be necessary
so that after making all required deductions or withholdings (including
deductions applicable to additional sums payable under this Section 5) such
Lender Party or the Agent (as the case may be) receives an amount equal to the
sum it would have received had no such deductions or withholdings been made,
(ii) the Guarantor shall make such deductions or withholdings and (iii) the
Guarantor shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

          (b) In addition, the Guarantor shall pay any Other Taxes.

          (c) The Guarantor shall indemnify each Lender Party and the Agent for
the full amount of Taxes and Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 5 paid by such Lender Party or the Agent (as the case may be) and any
liability (including penalties, additions to tax, interest and expenses) arising
therefrom or with respect thereto.  This indemnification shall be made within 30
days from the date such Lender Party or the Agent (as the case may be) makes
written demand therefor and provides the Guarantor with evidence of such
liability reasonably satisfactory to the Guarantor.

          (d) Within 30 days after the date of any payment of Taxes, the
Guarantor shall furnish to the Agent, at its address referred to in Section 8.02
of the Credit Agreement, the original receipt of payment thereof, a certified
copy of such receipt or other evidence of payment reasonably acceptable to the
Agent.  In the case of any payment hereunder by or on behalf of the Guarantor
through an account or branch outside the United States or on behalf of the
Guarantor by a payor that is not a United States person, if the Guarantor
determines that no Taxes are payable in respect thereof, the Guarantor shall
furnish, or shall cause such payor to furnish, to the Agent, at such address, an
opinion of counsel acceptable to the Agent stating that such payment is exempt
from Taxes.  For purposes of this subsection (d) and subsection (e), the terms
"United States" and "United States person" shall have the meanings specified in
--------------       --------------------
Section 7701 of the Internal Revenue Code.

          (e) Each Lender Party organized under the laws of a jurisdiction
outside the United States shall, on or prior to the date of its execution and
delivery of the Credit Agreement in the case of each Initial Lender or the
Initial Issuing Bank, as the case may be, and on the date

                                       4
<PAGE>

of the Assignment and Acceptance pursuant to which it became a Lender Party in
the case of each other Lender Party, and from time to time thereafter if
requested in writing by the Guarantor or the Agent (but only so long thereafter
as such Lender Party remains lawfully able to do so and in any event prior to
the date of the first payment to such Lender Party hereunder), provide the Agent
and the Guarantor with two duly completed and executed copies of Internal
Revenue Service (the "IRS") Form 1001 or 4224, as appropriate, or any successor
                      ---
form prescribed by the IRS, certifying (if it is the case) that such Lender
Party is exempt from or is entitled to a reduced rate of United States
withholding tax on payments pursuant to this Guaranty or in respect of any
Bankers' Acceptances or to the extent permitted by law, as an alternative to
such Form 1001 or 4224, each such Lender Party may provide the Guarantor and the
Agent with two duly completed and executed copies of IRS Form W-8, or any
successor form prescribed by the IRS, certifying that such Lender Party is
exempt from United States federal withholding tax pursuant to Section 871(h) or
Section 881(c) of the Internal Revenue Code, together with an annual certificate
in form and substance satisfactory to the Guarantor or the Agent stating that
such Lender Party is not a "person" described in Section 871(h)(3) or 881(c)(3)
of the Internal Revenue Code. If the forms provided by a Lender Party at the
time such Lender Party first becomes a party to the Credit Agreement indicate a
tax rate with respect to Home Jurisdiction Withholding Tax in excess of zero,
withholding tax at such rate shall be considered excluded from Taxes unless and
until such Lender Party provides the appropriate form certifying that a lesser
rate applies, whereupon such withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided,
                                                                  --------
however, that, if at the date of the Assignment and Acceptance pursuant to
-------
which a Lender Party becomes a party to this Guaranty, the Lender Party assignor
was entitled to payments under subsection (a) in respect of Home Jurisdiction
Withholding Tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) Home
Jurisdiction Withholding Tax, if any, applicable with respect to the Lender
Party assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information not substantially similar
to the information necessary to compute the tax payable and information required
on the date hereof by IRS Form 1001 or 4224, and which a Lender Party reasonably
considers to be confidential, the Lender Party shall give notice thereof to the
Guarantor and shall not be obligated to include in such form or document such
confidential information.

          (f) For any period with respect to which a Lender Party has failed to
provide the Guarantor with the appropriate form described in subsection (e) duly
completed and executed (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender Party shall not be entitled to indemnification under subsection (a) or
(c) of this Section 5 with respect to Taxes imposed by the United States by
reason of such failure; provided, however, that should a Lender Party become
                        --------  -------
subject to Taxes because of its failure to deliver a form required hereunder,
the Guarantor shall take such steps as such Lender Party shall reasonably
request at such Lender Party's sole expense to assist such Lender Party to
recover such Taxes.

                                       5
<PAGE>

          (g) Any Lender Party claiming additional amounts payable pursuant to
this Section 5 shall use reasonable efforts (consistent with its internal policy
and legal and regulatory restrictions) to file any certificate or document
requested by the Guarantor or to change the jurisdiction of its Applicable
Lending Office if the making of such filing or change would avoid the need for
or reduce the amount of any such additional amounts which may thereafter accrue
and would not, in the sole judgment of such Lender Party, be disadvantageous to
such Lender Party.

          (h) If any Lender Party receives a refund of any Taxes or Other Taxes
paid by the Guarantor pursuant to Section 5(a), Section 5(b), or Section 5(c),
such Lender Party shall, within 30 days of such receipt, pay to the Guarantor
the amount so received, net of all out-of-pocket expenses of such Lender Party
with respect thereto, provided, however, that such Lender Party shall (i) be
                      --------  -------
required to pay to the Guarantor only such amounts as such Lender Party, in its
sole discretion, determines is attributable to Taxes or Other Taxes paid by the
Guarantor pursuant to Section 5(a), Section 5(b) or Section 5(c), and (ii) have
the sole discretion to determine whether to contest the imposition of any Taxes
or Other Taxes, regardless of whether such Taxes or Other Taxes were correctly
or legally asserted.

          Section 6.  Representations and Warranties.  The Guarantor hereby
                      -------------------------------
represents and warrants as follows:

          (a) The Guarantor (i) is a corporation duly organized, validly
     existing and in good standing under the laws of the jurisdiction of its
     incorporation, (ii) is duly qualified and in good standing as a foreign
     corporation in each other jurisdiction in which it owns or leases property
     or in which the conduct of its business requires it to so qualify or be
     licensed except where the failure to so qualify or be licensed is not
     reasonably expected to have a Material Adverse Effect and (iii) has all
     requisite corporate power and authority to own or lease and operate its
     properties and to carry on its business as now conducted and as proposed to
     be conducted, except to the extent that the failure to do so is not
     reasonably expected to have a Material Adverse Effect.

          (b) The execution, delivery and performance by the Guarantor of this
     Guaranty are within the Guarantor's corporate powers, have been duly
     authorized by all necessary corporate action, and do not (i) contravene the
     Guarantor's charter or bylaws, (ii) violate any law (including, without
     limitation, the Securities Exchange Act of 1934), rule, regulation
     (including, without limitation, Regulations T, U and X of the Board of
     Governors of the Federal Reserve System), order, writ, judgment,
     injunction, decree, determination or award, (iii) conflict with or result
     in the breach of, or constitute a default under, any loan agreement,
     contract, indenture, mortgage, deed of trust, lease or other instrument
     binding on or affecting the Guarantor, any of its Subsidiaries or any of
     its or their properties, the effect of which conflict, breach or default is
     reasonably likely to have a Material Adverse Effect or (iv) except for the
     Liens created under the Loan Documents, result in or require the creation
     or imposition of any Lien upon or with respect to any of the properties of
     the Guarantor or any of its Subsidiaries.  The Guarantor is not in
     violation of any such law, rule, regulation, order, writ, judgment,
     injunction, decree,

                                       6
<PAGE>

     determination or award, or in breach of any such contract, loan agreement,
     indenture, mortgage, deed of trust, lease or other instrument, the
     violation or breach of which is reasonably expected to have a Material
     Adverse Effect.

          (c) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by the Guarantor of this Guaranty and (ii) the
     exercise by the Agent, any Lender Party or any Hedge Bank or any Lender
     Party of its rights under this Guaranty.

          (d) This Guaranty has been duly executed and delivered by the
     Guarantor. This Guaranty is the legal, valid and binding obligation of the
     Guarantor, enforceable against the Guarantor in accordance with its terms
     except as may be limited by bankruptcy, insolvency, reorganization,
     moratorium or other laws relating to or limiting creditors' rights or by
     equitable principles generally.

          (e) There are no conditions precedent to the effectiveness of this
     Guaranty that have not been satisfied or waived.

          (f) The Guarantor has, independently and without reliance upon the
     Agent, any Lender Party or any Hedge Bank and based on such documents and
     information as it has deemed appropriate, made its own credit analysis and
     decision to enter into this Guaranty.

          (g) The Guarantor owns no material assets other than the Pledged
     Shares (as defined in the Parent Guarantor Security Agreement).

          Section 7.  [Intentionally Omitted.]

          Section 8.  [Intentionally Omitted.] .

          Section 9.  Amendments, Etc.  No amendment or waiver of any provision
                      ----------------
of this Guaranty and no consent to any departure by the Guarantor therefrom
shall in any event be effective unless the same shall be in writing and signed
by the Agent and the Guarantor, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that any provision of this Guaranty may be amended or
       --------  -------
waived in accordance with Section 8.01 of the Credit Agreement.

          Section 10.  Notices, Etc.  All notices and other communications
                       -------------
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered to it, if to the
Guarantor, addressed to it at c/o D. George Harris & Associates, Inc., 399 Park
Avenue, 32nd Floor, New York, NY 10022, Attention: Treasurer, telecopier number
(212) 207-6440, if to the Agent or any Lender Party, at its address specified in
the Credit Agreement, if to any Hedge Bank, at its address specified in the Bank
Hedge Agreement to which it is a party, or as to any party at such other address
as shall be

                                       7
<PAGE>

designated by such party in a written notice to each other party. All such
notices and other communications shall, when mailed, telegraphed, telecopied or
delivered, be effective when received by the addressee.

          Section 11.  No Waiver; Remedies.  No failure on the part of the
                       --------------------
Agent or any other Secured Party to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

          Section 12.  Right of Set-off.  Upon (a) the occurrence and during
                       ----------------
the continuance of any Event of Default and (b) either the making of the request
or the granting of the consent specified by Section 6.01 of the Credit Agreement
to authorize the Agent to declare the Advances and all other amounts payable
under the Credit Agreement and the other Loan Documents to be due and payable
pursuant to the provisions of said Section 6.01 or making of the demand
specified by Section 6.02 of the Credit Agreement requiring the Borrower to pay
amounts in respect of Letters of Credit or the Canadian Borrower to pay amounts
in respect of Bankers' Acceptances, each Lender Party and each of its respective
affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender Party or such Affiliate to
or for the credit or the account of the Guarantor against any and all of the
Obligations of the Guarantor now or hereafter existing under this Guaranty,
whether or not such Lender Party shall have made any demand under this Guaranty
and although such Obligations may be unmatured.  Each Lender Party agrees
promptly to notify the Guarantor after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.  The rights of each Lender Party and
its respective Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender Party and its respective Affiliates may have.

          Section 13.  Continuing Guaranty; Assignments under the Credit
                       -------------------------------------------------
Agreement.  This Guaranty is a continuing guaranty and shall (a) remain in full
---------
force and effect until the later of the payment in full in cash of the
Guaranteed Obligations constituting an Advance and all other Guaranteed
Obligations or amounts payable under this Guaranty and the later of (i) the
Termination Date and (ii) the expiration or termination of all Bank Hedge
Agreements, (b) be binding upon the Guarantor, its successors and assigns and
(c) inure to the benefit of and be enforceable by the Agent and the other
Secured Parties and their successors, transferees and assigns.  Without limiting
the generality of the foregoing clause (c), any Secured Party may assign or
otherwise transfer all or any portion of its rights and obligations under the
Credit Agreement (including, without limitation, all or any portion of its
Commitment, the Advances owing to it and the Note or Notes held by it) to any
other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Secured Party herein or otherwise,
in each case as and to the extent provided in Section 8.07 of the Credit
Agreement.

                                       8
<PAGE>

          Section 14.  Execution in Counterparts.  This Guaranty may be
                       -------------------------
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Guaranty by telecopier shall be effective as delivery of a manually executed
counterpart of this Guaranty.

          Section 15.  Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.
                       ------------------------------------------------------
(a)  This Guaranty shall be governed by, and construed in accordance with, the
laws of the State of New York.

          (b) The Guarantor hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Guaranty or any of the other Loan Documents to which
it is or is to be a party, or for recognition or enforcement of any judgment,
and the Guarantor hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in any
such New York State court or, to the extent permitted by law, in such federal
court.  The Guarantor agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.  Nothing in this
Guaranty shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Guaranty or any of the other Loan
Documents to which it is or is to be a party in the courts of any jurisdiction.

          (c) The Guarantor irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Guaranty or any of the other Loan Documents
to which it is or is to be a party in any New York State or federal court.  The
Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

                                       9
<PAGE>

          (d) The Guarantor hereby irrevocably waives all right to trial by jury
in any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to any of the Loan Documents, the
transactions contemplated thereby or the actions of the Agent or any other
Secured Party in the negotiation, administration, performance or enforcement
thereof.

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

                              BMAC HOLDINGS, INC.

                                  By: /s/ Richard Nick
                                      ----------------------------------
                                      Name: Richard Nick
                                      Title: Vice President

                                       10
<PAGE>

                                                              EXHIBIT H TO THE

                                                              CREDIT AGREEMENT
                                                        AS SEPARATELY EXECUTED

                                PARENT GUARANTY

                         Dated as of September 30, 1999

                                      From

                              BMAC HOLDINGS, INC.,

                                 as Guarantor,
                                 -- ---------

                                  in favor of

                       THE SECURED PARTIES REFERRED TO IN
                    THE CREDIT AGREEMENT REFERRED TO HEREIN
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
Section                                                                   Page
<S>                                                                       <C>
Section 1.    Guaranty                                                       1

Section 2.    Guaranty Absolute                                              1

Section 3.    Waivers and Acknowledgments                                    2

Section 4.    Subrogation                                                    3

Section 5.    Payments Free and Clear of Taxes, Etc                          3

Section 6.    Representations and Warranties                                 5

Section 7.    [Intentionally Omitted.]                                       6

Section 8.    [Intentionally Omitted.]                                       6

Section 9.    Amendments, Etc                                                6

Section 10.   Notices, Etc                                                   6

Section 11.   No Waiver; Remedies                                            6

Section 12.   Right of Set-off                                               7

Section 13.   Continuing Guaranty; Assignments under the Credit Agreement    7

Section 14.   Execution in Counterparts                                      7

Section 15.   Governing Law; Jurisdiction; Waiver of Jury Trial, Etc         7
</TABLE>

                                       i

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