Document:

Exhibit 4.6

 

	
  THIS INSTRUMENT PREPARED

  	
   

  	
   

  
	
  OUTSIDE OF THE STATE OF

  	
   

  	
   

  
	
  OHIO BY AND

  	
   

  	
   

  
	
  AFTER RECORDING RETURN TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Latham & Watkins LLP

  	
   

  	
   

  
	
  885 Third Avenue

  	
   

  	
   

  
	
  New York, NY 10022

  	
   

  	
   

  
	
  Attn:  Mathieu Streiff, Esq.

  	
   

  	
  Shelby County, Ohio

  

 

 

OPEN-END CORRECTION SECOND MORTGAGE, SECURITY AGREEMENT,

ASSIGNMENT OF

LEASES AND RENTS, FINANCING STATEMENT AND

FIXTURE FILING

(TOTAL INDEBTEDNESS NOT TO EXCEED $865,000,000)

 

BY

 

PLAYTEX MANUFACTURING, INC.,

Mortgagor,

 

TO

 

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,

as Trustee,

 

Relating to Premises in:

 

Shelby County, Ohio

 

DATED:  As of February 19, 2004

 

 

 

OPEN-END
CORRECTION SECOND MORTGAGE, SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND

RENTS, FINANCING STATEMENT AND FIXTURE FILING

(TOTAL INDEBTEDNESS NOT TO EXCEED
$865,000,000)

 

Shelby County, State of Ohio

 

THIS OPEN-END CORRECTION
SECOND MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, FINANCING
STATEMENT AND FIXTURE FILING (“Second Mortgage”), is made as of February 19, 2004, by PLAYTEX
MANUFACTURING, INC., a Delaware corporation, with its principal office at 300
Nyala Farms Road, Westport, Connecticut 06880 (“Mortgagor”), to WELLS FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, a national banking association, with an office at 213 Court
Street, Suite 703, Middletown, Connecticut 06547, as mortgagee and secured
party, in its capacity as trustee for the holders of the Notes and Note
Obligations as hereinafter defined (together with any successors or assigns in
such capacity, the “Trustee” or “Mortgagee”).

 

I.

RECITALS

 

WHEREAS, an Open-End
Second Mortgage, Security Agreement, Assignment of Leases and Rents, Financing
Statement and Fixture Filing was filed by Mortgagor for the benefit of
Mortgagee with the Shelby County Recorder’s Office on March 2, 2004 (the “Original
Filing”);

 

WHEREAS, Mortgagor is a
national banking association and the sole purpose of filing this correction
Second Mortgage is to correct the misclassification of Mortgagee as a Delaware
corporation in the Original Filing;

 

WHEREAS, Mortgagor is the
owner and holder of fee simple title in and to all of the real estate located
in the County of Shelby and State of Ohio (the “State”), and more fully
described in Exhibit A attached hereto (the “Premises”), which
Premises forms a portion of the Property described below;

 

WHEREAS, on
the date hereof, Playtex Products, Inc. (“Issuer”) entered into that
certain Indenture (as the same may be amended, restated, supplemented or
otherwise modified and in effect from time to time, hereinafter the “Indenture”)
by and among the Issuer, the guarantors named therein (each, a “Guarantor,”
and collectively, the “Guarantors”) and the Trustee, pursuant to which
Issuer is issuing 8%
Senior Secured Notes due 2011 (the “Notes”)

 

 

and the
Guarantors are guarantying payment of the Notes and all other Note Obligations
(as defined in the Indenture);

 

WHEREAS,
Mortgagor is a Guarantor under the Indenture and has issued a Guaranty to
secure the payment of the Notes and all other Note Obligations (the “Guaranty”);

 

WHEREAS, Mortgagor wishes
to provide further assurance and security to the holders of the Notes and the
Note Obligations and the Trustee, and as a condition to the issuance of the
Notes under the Indenture, Mortgagor has agreed to grant to the Trustee, for the equal and ratable benefit of the holders
of the Notes and the Note Obligations, a security interest in and a second
mortgage lien upon the Property (as hereinafter defined), subject to the
Permitted Prior Liens (as such term is defined in the Indenture), to secure all
of the Issuer’s obligations under the Indenture and Mortgagor’s obligations
under the Guaranty;

 

WHEREAS, on the date
hereof, Issuer entered into that certain Credit Agreement by and among each of
the financial institutions named therein (the “Lenders”), General
Electric Capital Corporation, as agent (the “Agent”), GECC Capital
Markets Group, Inc., as lead arranger, and certain subsidiaries of the Issuer
as credit parties, pursuant to which Mortgagor granted to the Agent, on behalf
of the Lenders, a security interest in and first mortgage lien upon the
Property (the “First Mortgage”); and

 

WHEREAS, this Second
Mortgage, and all rights and authority conveyed to Mortgagee hereby, shall be
subordinate to the First Mortgage for as long as the First Mortgage is
outstanding.  All capitalized terms used
herein but not defined herein shall have the meanings ascribed to them in the
Indenture.

 

II.

THE GRANT

 

NOW, THEREFORE, in order
to secure the payment of the Issuer’s and the Guarantors’ obligations under the
Indenture, Mortgagor’s obligations under the Guaranty and this Second Mortgage,
and the Issuer’s and the Guarantors’ obligations under the other Note Documents
that may now or hereafter become owing from the Issuer or any Guarantor to the
holders of Notes or Note Obligations or the Trustee (the “Secured
Indebtedness”), and in consideration of Ten and No/100 Dollars ($10.00) in
hand paid by Mortgagee to Mortgagor, the Recitals above stated, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Mortgagor GRANTS, BARGAINS, SELLS, ASSIGNS, RELEASES,
ALIENS, TRANSFERS, WARRANTS, DEMISES, CONVEYS and MORTGAGES to Mortgagee and
its successors and assigns (for
the equal and ratable benefit of the holders of the Notes and the Note
Obligations) forever (and grants to Mortgagee and its successors and assigns (for the equal and ratable benefit of the holders
of the Notes and the Note Obligations) forever a continuing security interest
in and to) all of Mortgagor’s estate, right, claim and interest in and to the
Premises, together with all of Mortgagor’s estate, right, claim and interest in
and to the following described property, all of which other property is pledged

 

 

primarily on a
parity with the Premises and not secondarily (the Premises and the following
described rights, interests, claims and property are collectively referred to
as the “Property”):

 

(a)           all buildings, structures and other
improvements of every kind and description now or hereafter erected, situated,
or placed upon the Premises (the “Improvements”), together with any and
all personal property now or hereafter owned by Mortgagor and located in or on,
forming part of, attached to, used or intended to be used in connection with,
or incorporated in any such 
Improvements, including all extensions of, additions to, betterments,
renewals of, substitutions for and replacements for any of the foregoing;

 

(b)           all claims, demands, rights, title
and interest of Mortgagor now owned or hereafter acquired, including without
limitation, any after-acquired title, franchise, license, remainder or
reversion, in and to any and all (i) land or vaults lying within the
right-of-way of any street, avenue, way, passage, highway, or alley, open or
proposed, vacated or otherwise, adjoining the Premises; (ii) alleys, sidewalks,
streets, avenues, strips and gores of land belonging, adjacent or pertaining to
the Premises or the Improvements; (iii) storm and sanitary sewer, water, gas,
electric, railway and telephone services relating to the Premises and the
Improvements; (iv) development rights, air rights, water, water rights, water
stock, gas, oil, minerals, coal and other substances of any kind or character
underlying or relating to the Premises or any part thereof; and (v) tenements,
hereditaments, easements, appurtenances, other rights, liberties, reservations,
allowances and privileges relating to the Premises or the Improvements or in
any way now or hereafter appertaining thereto, including homestead and any other
claims at law or in equity;

 

(c)           all right, title and interest of
Mortgagor in any and all leases, subleases, management agreements,
arrangements, concessions or agreements, written or oral, relating to the use
and occupancy of the Premises or the Improvements or any portion thereof, now
or hereafter existing or entered into (collectively “Leases”);

 

(d)           all rents, issues, profits,
royalties, revenue, advantages, income, avails, claims against guarantors, all
cash or security deposits, advance rentals, deposits or payments given and
other benefits now or hereafter derived directly or indirectly from the
Premises and Improvements under the Leases or otherwise (collectively “Rents”),
subject to the right, power and authority granted to Mortgagee pursuant to Section
3.8 hereof;

 

(e)           all right, title and interest of
Mortgagor in and to all options to purchase or lease the Premises or the
Improvements or any portion thereof or interest therein, or any other rights,
interests or greater estates in the rights and properties comprising the
Property now owned or hereafter acquired by Mortgagor;

 

(f)            any interests, estates or other
claims of every name, kind or nature, both in law and in equity, which
Mortgagor now has or may acquire in the Premises and Improvements or other
rights, interests or properties comprising the Property now owned or hereafter
acquired;

 

 

(g)           all rights of Mortgagor to any and
all plans and specifications, designs, drawings and other matters prepared for
any construction on the Premises or regarding the Improvements;

 

(h)           all rights of Mortgagor under any
contracts executed by Mortgagor with any provider of goods or services for or
in connection with any construction undertaken on or services performed or to
be performed in connection with the Premises or the Improvements;

 

(i)            all right, title and interest of
Mortgagor in and to all tangible personal property (“Personal Property”)
now or hereafter owned by Mortgagor and located in, on or at the Premises or
the Improvements and used or useful in connection therewith, including, without
limitation:

 

(i)            all building materials and equipment
located upon the Premises and intended for construction, reconstruction,
alteration, repair or incorporation in or to the Improvements now or hereafter
to be constructed thereon, whether or not yet incorporated in such Improvements
(all of which shall be deemed to be included in the Property upon delivery
thereto);

 

(ii)           all machines, machinery, fixtures,
apparatus, equipment or articles used in supplying heating, gas, electricity,
air-conditioning, water, light, power, plumbing, sprinkler, waste removal,
refrigeration, ventilation, and all fire sprinklers, alarm systems, protection,
electronic monitoring equipment and devices;

 

(iii)          all window, structural, maintenance
and cleaning equipment and rigs; and

 

(iv)          all fixtures now or hereafter owned by
Mortgagor and attached to or contained in and used or useful in connection with
the Premises or the Improvements; and

 

(j)            all the estate, interest, right,
title or other claim or demand which the Mortgagor now has or may hereafter
have or acquire with respect to (i) proceeds of insurance in effect with
respect to the Property and (ii) any and all awards, claims for damages,
judgments, settlements and other compensation made for or consequent upon the
taking by condemnation, eminent domain or any like proceeding, or by any
proceeding or purchase in lieu thereof, of the whole or any part of the
Property, including, without limitation, any awards and compensation resulting
from a change of grade of streets and awards and compensation for severance
damages (collectively “Awards”).

 

TO HAVE AND TO HOLD the
Property hereby mortgaged and conveyed or so intended, unto the Mortgagee, its
successors and assigns, forever, for the uses and purposes

 

 

herein set forth,
subject, however, only to the Permitted Prior Liens, including the First
Mortgage.

 

This Second Mortgage, and
all rights and authority conveyed to Mortgagee hereby, shall be subordinate to
the First Mortgage for as long as the First Mortgage is outstanding.

 

The Mortgagor hereby
covenants with the Mortgagee:  (i) that
at the execution and delivery hereof, Mortgagor owns the Property and has good,
indefeasible estate therein, in fee simple; (ii) that the Property is free from
all encumbrances and exceptions to title (and any claim of any other person)
other than Permitted Prior Liens; (iii) that it has good and lawful right to
sell, mortgage and convey the Property; and (iv) that Mortgagor and its
successors and assigns shall forever warrant and defend the Property against
all claims and demands whatsoever.

 

If and when the Secured
Indebtedness has been indefensibly paid in full and the Issuer and Guarantors
have performed and observed all of the agreements, terms, conditions,
provisions and warranties contained herein and in the Indenture and in all of
the other Note Documents applicable to the Issuer and Guarantors and there
exist no commitments of the holders of the Notes or the Note Obligations under
the Note Documents which could give rise to Secured Indebtedness, then this
Second Mortgage and the estate, right and interest of the Mortgagee in and to
the Property shall cease and shall be released at the cost of Mortgagor, but
otherwise shall remain in full force and effect.

 

III.

GENERAL AGREEMENTS

 

3.1           Payment of Indebtedness.  Mortgagor shall pay promptly and when due
all amounts owing by Mortgagor in respect of the Secured Indebtedness at the
times and in the manner provided in the Indenture, the Notes, this Second
Mortgage, or any of the other Note Documents. 
The Notes bear interest at 8% annually and the latest scheduled final
maturity date of such Notes is currently March 1, 2011.

 

3.2           Impositions.  Except as otherwise permitted under Section
4.05 of the Indenture, Mortgagor shall pay prior to delinquency, all
general taxes, special taxes, special assessments, water charges, sewer
charges, and any other charges, fees, taxes, claims, levies, expenses, liens
and assessments, ordinary or extraordinary, governmental or nongovernmental,
statutory or otherwise (all of the foregoing being herein collectively referred
to as “Impositions”), that may be asserted against the Property or any
part thereof or Mortgagor’s interest therein.

 

3.3           Payment of Impositions by Mortgagee.  Upon the occurrence and during the
continuance of an Event of Default (as hereinafter defined), Mortgagee is
hereby authorized to make or advance, in the place and stead of Mortgagor, any
payment relating to Impositions. 
Mortgagee may do so according to any bill, statement, or estimate
procured from the appropriate public office without inquiry into the accuracy
or the validity of any Impositions, lien, sale, forfeiture, or related title or
claim.  Mortgagee is further authorized
to make or advance, in place of Mortgagor, unless such matter is being properly
contested by Mortgagor in accordance with

 

 

Section 4.05
of the Indenture, any payment relating to any apparent or threatened adverse
title, lien, statement of lien, encumbrance, claim, charge, or payment
otherwise relating to any other purpose herein and hereby authorized, but not
enumerated in this Section 3.3, with written notice to Mortgagor
whenever, in Mortgagee’s judgment and discretion, such advance is necessary to
protect the full security intended to be created by this Second Mortgage.  All such advances and indebtedness
authorized by this Section 3.3 shall constitute Secured Indebtedness and
shall be repayable by Mortgagor upon demand with interest at nine percent (9%)
per annum (the “Default Rate”).

 

3.4           Condemnation and Eminent Domain.  Mortgagor shall give Mortgagee prompt notice
of all proceedings, instituted or threatened, seeking condemnation or a taking
by eminent domain or like process (herein collectively called “Taking”),
of all or any part of the Property or affecting any related easement or
appurtenance (including severance of, consequential damage to, or change in
grade of streets), and shall deliver to Mortgagee copies of any and all papers
served in connection with any such proceeding. 
Mortgagee (or, after entry of decree of foreclosure, the purchaser at
the foreclosure sale or decree creditor, as the case may be) is hereby
authorized at its option to participate in such proceeding and control the same
and to be represented therein by counsel of its own choice, and Mortgagor will
deliver, or cause to be delivered to Mortgagee such instruments as may be
requested by it from time to time to permit such participation or control.  Mortgagor must obtain Mortgagee’s consent,
which consent shall not be unreasonably withheld, to settle any such
proceeding.  Mortgagor hereby assigns,
transfers and sets over unto Mortgagee the entire proceeds of any and all
Awards resulting from any Taking. 
Mortgagee is hereby authorized to collect and receive from the
condemnation authorities all Awards and is further authorized to give
appropriate receipts and acquittances. 
Such Award or payment, less the amount of any expenses incurred in
litigating, arbitrating, compromising, or settling any claim arising out of a
Taking, shall be applied in the same manner as if they were proceeds from a
casualty loss covered by insurance in accordance with Section 10.06
of the Indenture and in accordance with Section 3.5 hereafter.

 

3.5           Restoration.  In the event there shall be casualty loss or
a Taking, and Mortgagee elects or is required to cause the applicable insurance
proceeds or Award to be applied to restore, repair or replace the Property (“Restoration”),
Mortgagee shall disburse such insurance proceeds or Award in accordance with
disbursement procedures reasonably acceptable to Mortgagee, including, without
limitation, such procedures as are customarily utilized by construction lenders
to insure the lien free completion of construction projects.  No such insurance proceeds or Award shall be
disbursed unless the following conditions are satisfied promptly upon the
occurrence of the casualty loss or Taking (but in no event later than one
hundred eighty (180) days following such occurrence):

 

(a)           Mortgagee shall have received and
approved (which approval shall not be unreasonably withheld) complete plans and
specifications for the Restoration;

 

(b)           Mortgagee shall have received and
approved a construction contract for the work of Restoration with one or more contractors
acceptable to Mortgagee; and

 

 

(c)           Mortgagee shall have received copies
of all permits and approvals required in connection with the Restoration.

 

3.6           Maintenance of Property.  Mortgagor shall:

 

(a)           promptly repair, restore, replace or
rebuild any material portion of the Property which may become damaged,
destroyed, altered, removed, severed, or demolished, whether or not proceeds of
insurance are available or sufficient for the purpose, with replacements at
least equal in quality and condition as previously existed, free from any
security interest in, encumbrances on or reservation of title thereto except
the lien of this Second Mortgage and Permitted Prior Liens;

 

(b)           keep the Property in good condition
and repair, without waste, and free from mechanics’, materialmen’s or like
liens or claims except for Permitted Prior Liens; and

 

(c)           not make any material alterations in
the Property, which would reasonably be expected to cause a material diminution
of the value of the Property or cause violation of any law applicable to the
use and occupancy of the Property, except as required by law or municipal
ordinance or in the ordinary course of business.

 

3.7           Prohibited Liens;
Prohibited Transfers.

 

(a)           Except as otherwise permitted in Section
4.12 of the Indenture, Mortgagor shall not create, suffer, or permit to be
created or filed against the Property any Lien superior or inferior to the lien
created by this Second Mortgage.

 

(b)           Except as otherwise provided in Section
4.10 of the Indenture, Mortgagor may not sell, lease or convey all or any
part of the Property or any interest therein.

 

3.8           Assignment of Leases
and Rents.

 

(a)           All right, title, and interest of
Mortgagor in and to all Leases and Rents are hereby transferred and assigned
simultaneously herewith to Mortgagee. 
Although it is the intention of the parties that the assignment
contained in this paragraph shall be a present assignment, it is expressly
understood and agreed, anything to the contrary notwithstanding, that Mortgagee
shall not exercise any of the rights or powers conferred upon it by this
paragraph unless an Event of Default shall exist and be continuing under this
Second Mortgage.

 

(b)           Following the occurrence of an Event
of Default and during the continuance thereof, (a) Mortgagee shall have the
rights and powers as are provided herein, (b) this Second Mortgage shall
constitute a direction to each lessee under the Leases and each guarantor
thereof to pay all Rents directly to Mortgagee without proof of the Event of
Default, and (c) Mortgagee shall have the authority, as Mortgagor’s
attorney-in-fact (such authority being coupled with an interest and
irrevocable), to sign

 

 

the name of
Mortgagor and to bind Mortgagor on all papers and documents relating to the
operation, leasing and maintenance of the Property.

 

(c)           If Mortgagor, as lessor under any
Lease, shall neglect or refuse to perform, observe and keep any of the
covenants, provisions and agreements contained in such Lease, then Mortgagee
may perform and comply with any such Lease covenants, agreements and provisions
with written notice to Mortgagor.  All
reasonable costs and expenses incurred by Mortgagee in complying with such
covenants, agreements, and provisions shall constitute Secured Indebtedness and
shall be payable upon demand with interest payable at the Default Rate.

 

(d)           Mortgagee shall not be obligated to
perform or discharge any obligation, duty or liability under any Lease, and
Mortgagor shall and does hereby agree, except to the extent of Mortgagee’s
gross negligence or willful misconduct, to indemnify and hold the Mortgagee
harmless of and from any and all liability, loss or damage which it may or
might incur under any Lease or under or by reason of their assignments and of
and from any and all claims and demands whatsoever which may be asserted
against it by reason of alleged obligations or undertakings on its part to
perform or discharge any of the terms, covenants or agreements contained in
such Lease.  Should Mortgagee incur any
such liability, loss or damage under any Lease or under or by reason of its
assignment to Mortgagee, or in the defense of any claims or demands, the amount
thereof, including costs, expenses and reasonable attorneys’ fees, shall
constitute Secured Indebtedness and shall be payable upon demand with interest
payable at the Default Rate.

 

3.9           Uniform Commercial Code.

 

(a)           This Second Mortgage constitutes a
Security Agreement as that term is used in the Uniform Commercial Code in the
State (the “Code”) with respect to any part of the Property which may or
might now or hereafter be or be deemed to be personal property, fixtures or
property other than real estate (including all replacements thereof, additions
thereto and substitutions therefor) (collectively, the “Personal Property
Collateral”).  All of Mortgagor’s
right, title and interest in the Personal Property Collateral is hereby
assigned to Mortgagee to secure the payment of the Secured Indebtedness.

 

(b)           At any time after an Event of Default
has occurred and shall be continuing, Mortgagee shall have the remedies of a
secured party under the Code, including without limitation the right to take
immediate and exclusive possession of the Personal Property Collateral or any
part thereof.  The remedies of Mortgagee
hereunder are cumulative and the exercise of any one or more of the remedies
provided for herein or under the Code shall not be construed as a waiver of any
of the other remedies of the Mortgagee, including having the Personal Property
Collateral deemed part of the realty upon any foreclosure so long as any part
of the Secured Indebtedness remains unsatisfied.

 

(c)           This Second Mortgage is intended to
be a “fixture filing” for purposes of the Code with respect to the items of
Property which are or may become fixtures relating

 

 

to the Premises
upon recording of this Second Mortgage in the real estate records of the proper
office.  The addresses of Mortgagor
(Debtor) and Mortgagee (Secured Party) are set forth in Section 5.1
hereof.

 

(d)           The Mortgagor hereby directs that the
Mortgagee shall cause to be recorded in the County in which the Premises are
located, as well as with the applicable offices of the State, such financing
statements and fixture filings as shall be necessary in order to perfect and
preserve the priority of Mortgagee’s lien upon the Personal Property
Collateral.

 

3.10         Releases.  Without notice and without regard to the
consideration therefor, and to the existence at that time of any inferior
liens, Mortgagee may release from the lien created hereby all or any part of
the Property, or release from liability any person obligated to repay any of
the Obligations, without affecting the liability of any party to any of the
Notes, this Second Mortgage, or any of the other Note Documents (including
without limitation any guaranty given as additional security) and without in
any way affecting the priority of the lien created hereby.  Mortgagee may agree with any liable party to
extend the time for payment of any part or all of the Obligations.  Such agreement shall not in any way release
or impair the lien created by this Second Mortgage or reduce or modify the
liability of any person or entity obligated personally to repay the
Obligations, but shall extend the lien created by this Second Mortgage as
against the title of all parties having any interest in the Property.

 

3.11         Further Assurances.  Mortgagor agrees that, upon the request of
Mortgagee from time to time, it will, at Mortgagor’s sole cost and expense,
execute, acknowledge and deliver all such additional instruments and further
assurances of title and will do or cause to be done all such further acts and
things as may reasonably be necessary to fully effectuate the intent of this
Second Mortgage.  In the event that
Mortgagor shall fail to do any of the foregoing, Mortgagee may, in its sole
discretion, do so in the name of Mortgagor, and Mortgagor hereby appoints
Mortgagee as its attorney-in-fact to do any of the foregoing.

 

IV.

EVENT OF DEFAULT AND REMEDIES

 

4.1           Event of Default.  The occurrence of an “Event of Default,” as
such term is defined in the Indenture, shall constitute an “Event of Default”
under this Second Mortgage.

 

4.2           Foreclosure
and Remedies.  When all or any part
of the Secured Indebtedness shall become due, whether by acceleration or
otherwise, Mortgagee shall have the right to foreclose the lien hereof for such
Secured Indebtedness or part thereof and/or exercise any right, power or remedy
provided in this Second Mortgage or any of the other Note Documents.

 

4.3           Remedies Cumulative and Non-Waiver.  No remedy or right of Mortgagee hereunder or
under the Notes, or any of the Note Documents or otherwise, or available under
applicable law, shall be exclusive of any other right or remedy.  Each such remedy or right shall be in
addition to every other remedy or right now or hereafter existing under any
such document or under applicable law. 
No delay in the exercise of, or omission to exercise, any remedy or

 

 

right accruing on the
occurrence of any Event of Default shall impair any such remedy or right or be construed
to be a waiver of any such Event of Default or an acquiescence therein, nor
shall it affect any subsequent Event of Default of the same or a different
nature, nor shall it extend or affect any grace period.  Every remedy or right may be exercised
concurrently or independently, when and as often as may be deemed expedient by
the Mortgagee.  All obligations of the
Mortgagor, and all rights, powers and remedies of the Mortgagee shall be in
addition to, and not in limitation of, those provided by law or in the Notes or
contained in any of the Note Documents or any other written agreement or
instrument relating to any of the Secured Indebtedness or any security
therefor.

 

4.4           Expenses.  In any proceeding to foreclose or partially
foreclose the lien of this Second Mortgage, there shall be allowed and
included, as additional indebtedness in the judgment or decree resulting
therefrom, all reasonable expenses paid or incurred by or on behalf of
Mortgagee in the protection of the Property and the exercise of Mortgagee’s
rights and remedies hereunder, which expenses may be estimated as to items to
be expended after entry of any judgment or decree of foreclosure.  Such expenses shall include:  reasonable attorney’s fees, appraiser’s
fees, outlays for documentary and expert evidence, stenographer’s charges,
publication costs, survey costs, and costs of procuring all abstracts of title,
title searches and examinations, title insurance policies, and any similar data
and assurances with respect to title to the Property as Mortgagee may deem
reasonably necessary either to prosecute any such proceeding or to evidence to
bidders at any sale pursuant to such decree the true condition of the title to
or value of the Premises or the Property. 
All such expenses shall be due and payable by Mortgagor upon demand with
interest thereon at the Default Rate.

 

4.5           Mortgagee’s Performance of Mortgagor’s
Obligations.  Following the
occurrence of an Event of Default and during the continuance thereof,
Mortgagee, either before or after acceleration of the Secured Indebtedness or
the foreclosure of the lien hereof and during the period of redemption, if any,
may, but shall not be required to (a) make any payment or perform any act
herein, in the Notes or any other Note Document which is required of Mortgagor
(whether or not Mortgagor is personally liable therefor) in any form and manner
deemed expedient to Mortgagee; (b) make full or partial payments of principal
or interest on any permitted prior mortgage or encumbrance and purchase, discharge,
compromise or settle any tax lien or other prior lien on title or claim
thereof, or redeem from any tax sale or forfeiture affecting the Premises, or
contest any Impositions; and (c) complete construction, furnishing and
equipping of the Improvements upon the Premises and rent, operate and manage
the Premises and such Improvements and pay operating costs and expenses,
including management fees, of every kind and nature in connection therewith, so
that the Premises and Improvements shall be operational and usable for their
intended purposes.  All monies paid for
any of the purposes herein authorized, and all expenses paid or incurred in
connection therewith, including reasonable attorneys’ fees, shall constitute
Secured Indebtedness, and shall become due and payable upon demand and with
interest thereon at the Default Rate. 
Mortgagee, in making any payment hereby authorized: (x) for the payment
of Impositions, may do so according to any bill or statement, without inquiry
into the validity of any tax, assessment, sale, forfeiture, tax lien or title
or claim thereof; (y) for the purchase, discharge, compromise or settlement of
any other prior lien, may do so without inquiry as to the validity or amount of
any claim or lien which may

 

 

be asserted; or (z) for
the completion of construction, furnishing or equipping of the Improvements or
the Premises or the rental, operation or management of the Premises or the
payment of operating cost and expenses thereof, may do so in such amounts and
to such persons as Mortgagee may reasonably deem appropriate and may enter into
such contracts therefor as Mortgagee may deem appropriate or may perform the
same itself.

 

4.6           Right of Possession.  Following the occurrence of an Event of
Default and during the continuance thereof, Mortgagor shall, immediately upon
Mortgagee’s demand, surrender to Mortgagee, and Mortgagee shall be entitled to
take actual possession of the Property or any part thereof, personally or by
its agent or attorneys.  Mortgagee may
enter upon and take and maintain possession or may apply to the court in which
a foreclosure is pending to be placed in possession of all or any part of the
Property, together with all documents, books, records, papers, and accounts of
Mortgagor or the then owner of the Property relating thereto.  Mortgagee may exclude Mortgagor, such owner,
and any agents and servants from the Property. 
As attorney-in-fact or agent of Mortgagor or such owner, or in its own
name Mortgagee may hold, operate, manage, and control all or any part of the
Property, either personally or by its agents. 
Mortgagee shall have full power to use such measures, legal or
equitable, as it may deem proper or necessary to enforce the payment or
security of the rents, issues, deposits, profits, and avails of the Property,
including actions for recovery of rent, actions in forcible detainer, and
actions in distress for rent, all without notice to Mortgagor.

 

4.7           Application of Income Received by
Mortgagee.  Mortgagee, in the
exercise of the rights and powers hereinabove conferred upon it, shall have
full power to use and apply the avails, rents, issues and profits of the
Property to the payment of or on account of the following, in such order as
Mortgagee may determine:  (i) to the
payment of the operating expenses of the Property including cost of management
thereof, established claims for damages, if any, and premiums on insurance
hereinabove authorized; (ii) to the payment of taxes and special assessments
now due or which may hereafter become due on the Premises; (iii) to all other
items which may under the terms hereof constitute Secured Indebtedness
additional to that evidenced by the Notes, with interest thereon as provided
herein or in the other Note Documents; and (iv) to all principal and interest
remaining unpaid on the Notes.

 

4.8           Appointment of Receiver.  Upon, or at any time after, the filing of a
complaint to foreclose (or partially foreclose) this Second Mortgage, the court
in which such complaint is filed shall, upon petition by Mortgagee, appoint a
receiver for the Property.  Such
appointment may be made either before or after foreclosure sale, without
notice, without regard to the solvency or insolvency, at the time of
application for such receiver, of the person or persons, if any, liable for the
payment of the Secured Indebtedness, without regard to the value of the
Property at such time and whether or not the same is occupied as a homestead,
and without bond being required of the applicant.  Mortgagee or any employee of Mortgagee thereof may be appointed
as such receiver.  Such receiver shall
have all powers and duties prescribed by applicable law, including the power to
take possession, control, and care of the Property and to collect all rents
thereof during the pendency of such foreclosure suit and, in the event of a
sale and deficiency, where Mortgagor has not waived its statutory rights of
redemption, during the full statutory period of redemption, as well as during
any further times when Mortgagor or its

 

 

devisees, legatees,
heirs, executors, administrators, legal representatives, successors, or
assigns, except for the intervention of such receiver, would be entitled to
collect such rents.  The court from time
to time, either before or after entry of judgment of foreclosure, may authorize
the receiver to apply the net income in his hands in payment in whole or in
part of:  (a) the indebtedness secured
hereby, or by any decree foreclosing this Second Mortgage, or any tax, special
assessment or other lien which may be or become superior to the lien hereof or
of such decree, provided such application is made prior to foreclosure sale,
and (b) the deficiency in case of a sale and deficiency.

 

4.9           Foreclosure Sale.  In the event of any foreclosure sale, the
Property may be sold in one or more parcels. 
Mortgagee may bid for and acquire the Property or any part thereof at
any sale made under or by virtue of this Second Mortgage and, in lieu of paying
cash therefor, may make settlement for the purchase price by crediting against
the purchase price the unpaid amounts due and owing in respect of any Notes,
Obligations or any other liabilities after deducting from the sales price the
expenses of the sale and the costs of the action or proceedings and any other
sums that Mortgagee is authorized to deduct under this Second Mortgage or
applicable law.

 

4.10         Application of Proceeds of
Foreclosure Sale.  The proceeds of
any foreclosure sale of the Property shall be distributed and applied in the
following order of priority:  first, to
all costs and expenses incident to the foreclosure proceedings, including all
such items as are mentioned in Section 4.4 above; second, to all other
items which may under the terms hereof constitute Secured Indebtedness
additional to that evidenced by the Notes, with interest thereon as provided
herein or in the other Note Documents; third, to all principal and interest
remaining unpaid on the Notes; and fourth, any surplus to Mortgagor, its
successors or assigns, as their rights may appear or to any other party legally
entitled thereto.

 

4.11         Adjournment of Foreclosure Sale.  Mortgagee may adjourn from time to time any
sale by it to be made under or by virtue of this Second Mortgage by
announcement at the time and place appointed for such sale or for such
adjourned sale or sales, and, except as otherwise provided by any applicable
provisions of law, Mortgagee, without further notice or publication, may make
such sale at the time and place to which the same shall be so adjourned.

 

4.12         Insurance Upon Foreclosure.  In case of an insured loss after foreclosure
proceedings have been instituted, the proceeds of any insurance policy or
policies, if not applied in repairing, restoring, replacing or rebuilding any
portion of the Property, shall be used to pay the amount due in accordance with
any decree of foreclosure that may be entered in any such proceedings, and the
balance, if any, shall be paid as the court may direct.  In case of the foreclosure of this Second
Mortgage, the court in its judgment may provide that the judgment creditor may
cause a new or additional loss clause to be attached to each of said policies
making the loss thereunder payable to said judgment creditor; and any such
foreclosure judgment may further provide, unless the right of redemption has
been waived, that in case of redemption under said judgment, then, and in every
such case, the redemptory may cause the preceding loss clause attached to each
insurance policy to be canceled and a new loss clause to be attached thereto,
making the loss thereunder payable to such redemptory.

 

 

4.13         Waiver of Statutory Rights.  To the extent permitted under the laws of
Ohio, Mortgagor shall not apply for or avail itself of any appraisement,
valuation, redemption, stay, extension, or exemption laws, or any so-called
“moratorium laws,” now existing or hereafter enacted, in order to prevent or
hinder the enforcement or foreclosure of this Second Mortgage, and Mortgagor
hereby waives the benefit of such laws. 
Mortgagor, for itself and all who may claim through or under it, waives
any and all rights to have the Property and estates comprising the Property
marshaled upon any foreclosure of the lien of this Second Mortgage, and agrees
that any court having jurisdiction to foreclose such lien may order the
Property sold in its entirety. 
Mortgagor further waives any and all rights of redemption from
foreclosure and from sale under any order or decree of foreclosure of the lien
created by this Second Mortgage, for itself and on behalf of: (i) any trust
estate of which the Premises are a part; (ii) all beneficially interested
persons; (iii) each and every person acquiring any interest in the Property or
title to the Premises subsequent to the date of this Second Mortgage; and (iv)
all other persons to the extent permitted by the provisions of laws of the
State in which the Premises are located.

 

4.14         Effect of Judgment.  The obtaining of any judgment by Mortgagee
and any levy of any execution under any judgment upon the Property shall not
affect in any manner or to any extent the Lien of this Second Mortgage upon the
Property or any part thereof, or any Liens, powers, rights and remedies of
Mortgagee hereunder, but such Liens, powers, rights and remedies shall continue
unimpaired as before until the judgment or levy is satisfied.

 

V.

MISCELLANEOUS

 

5.1           Notices.  Any notice or other communication required
shall be in writing addressed to the respective party as set forth below and
may be personally served, telecopied, sent by overnight courier service or U.S.
mail and shall be deemed to have been given: (a) if delivered in person, when
delivered; (b) if delivered by fax, on the date of transmission if transmitted
on a Business Day before 4:00 p.m. New York Time; (c) if delivered by overnight
courier, one (1) Business Day after delivery to the courier properly addressed;
or (d) if delivered by U.S. mail, four (4) Business Days after deposit with
postage prepaid and properly addressed.

 

Notices shall be
addressed as follows:

 

(i)            If to Mortgagor:

 

PLAYTEX
MANUFACTURING, INC.

300 Nyala
Farms Road

Westport,
Connecticut 06880

ATTN:  William Stammer

Fax:  (203) 341-4260

 

 

with a copy
to:

 

HAAS WHEAT
& PARTNERS, L.P.

300 Crescent
Court, Suite 1700

Dallas, Texas
75201

ATTN:  Todd Robichaux

Fax:  (214) 871-8316

 

(ii)                                  If
to Mortgagee:

 

WELLS FARGO
BANK MINNESOTA, NATIONAL

ASSOCIATION CORPORATE TRUST SERVICES

213 Court
Street, Suite 703

Middletown,
Connecticut 06547

ATTN: Joseph
P. O’Donnell

Fax:  (806) 704-6219

 

5.2           Time of Essence.  Time is of the essence of this Second
Mortgage.

 

5.3           Covenants Run with Land.  All of the covenants of this Second Mortgage
shall run with the land constituting the Premises.

 

5.4           GOVERNING LAW.  THIS
MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PROVISIONS THEREOF, PROVIDED, HOWEVER, THAT WITH
RESPECT TO THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIEN OF
THIS MORTGAGE ON REAL PROPERTY, THE LAWS OF THE STATE WHERE THE MORTGAGED
PROPERTY IS LOCATED SHALL APPLY WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PROVISIONS THEREOF AND PROVIDED, FURTHER, THAT, WITH RESPECT TO
ANY PERSONAL PROPERTY INCLUDED IN THE MORTGAGED PROPERTY, THE CREATION OF THE
SECURITY INTEREST SHALL BE GOVERNED BY THE UNIFORM COMMERCIAL CODE AS IN EFFECT
FROM TIME TO TIME IN THE STATE OF NEW YORK (THE “NY UCC”) AND THE PERFECTION,
THE EFFECT OF PERFECTION OR NON-PERFECTION AND PRIORITY OF THE SECURITY
INTEREST WILL BE GOVERNED IN ACCORDANCE WITH MANDATORY CHOICE OF LAW RULES SET
FORTH IN THE NY UCC.

 

5.5           Severability.  If any provision of this Second Mortgage, or
any paragraph, sentence, clause, phrase, or word, or their application, in any
circumstance, is held invalid, the validity of the remainder of this Second
Mortgage shall be construed as if such invalid part were never included.

 

 

5.6           Non-Waiver.  Unless expressly provided in this Second
Mortgage to the contrary, no consent or waiver, express or implied, by any
party, to or of any breach or default by any other party shall be deemed a
consent to or waiver of the performance by such defaulting party of any other
obligations or the performance by any other party of the same, or of any other,
obligations.

 

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

 

5.8           Grammar.  As used in this Second Mortgage, the
singular shall include the plural, and masculine, feminine, and neuter pronouns
shall be fully interchangeable, where the context so requires.

 

5.9           Deed in Trust.  If title to the Property or any part thereof
is now or hereafter becomes vested in a trustee, any prohibition or restriction
against the creation of any lien on the Property shall be construed as a
similar prohibition or restriction against the creation of any lien on or
security interest in the beneficial interest of such trust.

 

5.10         Successors and Assigns.  This Second Mortgage shall be binding upon
Mortgagor, its successors, assigns, legal representatives, and all other
persons or entities claiming under or through Mortgagor.  The word “Mortgagee,” when used herein,
shall include each of: (i) the Agent in its capacity as a Lender and as Agent
for the Lenders; and (ii) the Lenders, together with each of their successors,
assigns and legal representatives.

 

5.11         Counterparts.  This Second Mortgage may be executed in any
number of separate counterparts, each of which shall collectively and separately
constitute one Second Mortgage.

 

5.12         Mortgagee in Possession.  Nothing contained in this Second Mortgage
shall be construed as constituting Mortgagee a mortgagee in possession in the
absence of the actual taking of possession of the Property.

 

5.13         Incorporation of Credit Agreement;
No Conflicts.  The terms of the
Indenture are incorporated by reference herein as though set forth in full
detail.  In the event of any conflict
between the terms and provisions of Section 3.9 of this Second Mortgage
and the Security Agreement, the terms and provisions of the Security Agreement
shall control; in the event of a conflict between any other term or provision
of this Second Mortgage and the Indenture, the terms and provisions of the
Indenture shall control.

 

5.14         Special Ohio Provisions.  Notwithstanding anything contained herein to
the contrary:

 

(a)           In
addition to any other sum secured hereby, this Second Mortgage shall also
secure the issuance of additional Notes as permitted under the Indenture as
well as the unpaid principal balance of, plus accrued interest on, any amount
of money loaned, advanced, disbursed or paid under or pursuant to the Indenture
by Mortgagee to or for the account and

 

 

benefit of the Issuer after this Second Mortgage is delivered to and
filed with the Recorder’s Office, Shelby County, Ohio, for recording (herein
called a “Future Advance”).  Any
such Future Advance is to be made by Mortgagee pursuant to the terms of the
Notes and the Indenture, and is to be evidenced by Notes.  The maximum amount of the principal sum
which is evidenced and secured by the Notes and this Second Mortgage, exclusive
of interest, penalties and charges, and which may be unpaid and outstanding at
any time is $865,000,000, such principal sum representing the amount disbursed
on the date hereof and the amount of all such Future Advances, but exclusive of
accrued interest thereon and also exclusive of any sums advanced as provided in
Section 5.14(b) hereof, it being intended by this Section 5.14(a)
to acknowledge, affirm and comply with the provisions of §5301.232 of the Ohio
Revised Code.

 

(b)           In
addition to any other sum secured hereby, this Second Mortgage shall also
secure the unpaid principal balance, plus the accrued interest thereon, of any
advance made or any amount paid by Mortgagee, after this Second Mortgage is
delivered to and filed for recording with the Recorder’s Office of Shelby
County in Ohio, in order to pay any real estate taxes, assessments, insurance
premiums or other costs and expenses incurred in connection with the operation,
protection or preservation of the Property or any part thereof or this Second
Mortgage as provided in other provisions of this Second Mortgage, it being
intended by this Section 5.14(b) to acknowledge, affirm and comply with
the provisions of §5301.232 of the Ohio Revised Code.

 

(c)           Mortgagor
covenants and agrees with Mortgagee that Mortgagee may, at its option, do all
things provided to be done by a mortgagee under §1311.14 of the Ohio Revised
Code, and any amendments or supplements thereto, for the protection of
Mortgagee’s interest in the Property.

 

(d)           With
respect to any agreement by Mortgagor in this Second Mortgage or the Note
Documents to pay Mortgagee’s attorneys’ fees and disbursements incurred in
connection with the enforcement therewith, Mortgagor agrees that each such
agreement is a “contract of indebtedness” and that attorneys’ fees and
disbursements referenced therein are those which are a reasonable amount, all
as contemplated by Ohio Revised Code Section 1301.21, as such Section may
hereafter be amended.  Mortgagor further
agrees that the indebtedness incurred in connection with this Second Mortgage
and the Note Documents is not incurred for purposes that are primarily
personal, family or household in nature and confirms that the total amount owed
on the contract of indebtedness exceeds One Hundred Thousand and No/100 Dollars
($100,000.00).

 

5.15         No Strict Construction.  The parties hereto have participated jointly
in the negotiation and drafting of this Second Mortgage.  In the event an ambiguity or question of
intent or interpretation arises, this Second Mortgage shall be construed as if
drafted jointly by the parties hereto and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of this
Second Mortgage.

 

(SIGNATURE PAGE FOLLOWS)

 

 

IN WITNESS
WHEREOF, Mortgagor has duly signed and delivered this Second Mortgage as of the
date first above written.

 

	
   

  	
  PLAYTEX
  MANUFACTURING, INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
           /s/
  William Stammer 

  
	
   

  	
  Name:

  	
      William
  Stammer

  
	
   

  	
  Title:

  	
      Associate
  General Counsel

  
	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Glenn A. Forbes

  
	
   

  	
  Name: 

  	
      Glenn
  A. Forbes

  
	
   

  	
  Title: 

  	
  Executive
  Vice President and Chief Financial Officer

  
							

 

S-1

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
  SS

  
	
  COUNTY OF
  NEW YORK

  	
  )

  	
   

  	
   

  

 

The foregoing instrument
was acknowledged before me this 19th day of February, 2004, by William Stammer
as Associate General Counsel and Glenn A. Forbes as Chief Financial Officer, of
PLAYTEX MANUFACTURING, INC., a Delaware corporation, on behalf of the
corporation.

 

IN WITNESS WHEREOF, I
have hereunto set my hand and official seal.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
      /s/
  Mathieu B. Streiff

  	
   

  
	
   

  	
  Notary
  Public in and for

  
	
   

  	
  said County
  and State

  
				

 

[SEAL]

 

 

This instrument was prepared
by:  Mathieu B. Streiff, Esq., Latham
& Watkins LLP, 885 Third Avenue, Suite 1000, New York, New York 10022.

 

S-2

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

A-1Exhibit 4.7

 

Tax Parcel ID#s:

ED-05-077.06-01-02.00-000

ED-05-067.19-02-11.01-000

ED-05-068.18-01-24.00-000

ED-05-067.19-02-04.00-000

 

Prepared By:  Latham &
Watkins LLP

885 Third Avenue

New York, NY 10022

Attn:  Mathieu Streiff, Esq.

 

 

CORRECTION SECOND MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF

LEASES AND RENTS, FINANCING STATEMENT AND

FIXTURE FILING

 

BY

 

PLAYTEX MANUFACTURING, INC.,

Mortgagor,

 

TO

 

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,

as Trustee,

 

Relating to Premises in:

 

Kent County, Delaware

 

DATED:  As of February 19, 2004

 

 

 

CORRECTION
SECOND MORTGAGE, SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND

RENTS,
FINANCING STATEMENT AND FIXTURE FILING

 

Kent County, State of Delaware

 

Maximum Principal Indebtedness Not to Exceed $865,000,000

 

THIS CORRECTION SECOND
MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, FINANCING
STATEMENT AND FIXTURE FILING (“Second Mortgage”), is made as of February 19, 2004, by PLAYTEX
MANUFACTURING, INC., a Delaware corporation, with its principal office at 300
Nyala Farms Road, Westport, Connecticut 06880 (“Mortgagor”), to WELLS FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, a national banking association, with an office at 213 Court
Street, Suite 703, Middletown, Connecticut 06547, as mortgagee and secured
party, in its capacity as trustee for the holders of the Notes and Note
Obligations as hereinafter defined (together with any successors or assigns in
such capacity, the “Trustee” or “Mortgagee”).

 

I.

RECITALS

 

WHEREAS, a Second
Mortgage, Security Agreement, Assignment of Leases and Rents, Financing
Statement and Fixture Filing was filed by Mortgagor for the benefit of
Mortgagee with the Kent County Recorder of Deeds on February 25, 2004 (the “Original
Filing”);

 

WHEREAS, Mortgagor is a
national banking association and the sole purpose of filing this correction
Second Mortgage is to correct the misclassification of Mortgagee as a Delaware
corporation in the Original Filing;

 

WHEREAS, Mortgagor is the
owner and holder of fee simple title in and to all of the real estate located
in the County of Kent and State of Delaware (the “State”), and more
fully described in Exhibit A attached hereto (the “Premises”),
which Premises forms a portion of the Property described below;

 

WHEREAS, on
the date hereof, Playtex Products, Inc. (“Issuer”) entered into that
certain Indenture (as the same may be amended, restated, supplemented or
otherwise modified and in effect from time to time, hereinafter the “Indenture”)
by and among the Issuer, the guarantors named therein (each, a “Guarantor,”
and collectively, the “Guarantors”) and the Trustee, pursuant to which
Issuer is issuing 8%
Senior Secured Notes due 2011 (the “Notes”)  and the Guarantors are guarantying payment of
the Notes and all other Note Obligations (as defined in the Indenture);

 

 

WHEREAS,
Mortgagor is a Guarantor under the Indenture and has issued a Guaranty to
secure the payment of the Notes and all other Note Obligations (the “Guaranty”);

 

WHEREAS, Mortgagor wishes
to provide further assurance and security to the holders of the Notes and the
Note Obligations and the Trustee, and as a condition to the issuance of the
Notes under the Indenture, Mortgagor has agreed to grant to the Trustee, for the equal and ratable benefit of the holders
of the Notes and the Note Obligations, a security interest in and a second
mortgage lien upon the Property (as hereinafter defined), subject to the
Permitted Prior Liens (as such term is defined in the Indenture), to secure all
of the Issuer’s obligations under the Indenture and Mortgagor’s obligations
under the Guaranty;

 

WHEREAS, on the date
hereof, Issuer entered into that certain Credit Agreement by and among each of
the financial institutions named therein (the “Lenders”), General
Electric Capital Corporation, as agent (the “Agent”), GECC Capital
Markets Group, Inc., as lead arranger, and certain subsidiaries of the Issuer
as credit parties, pursuant to which Mortgagor granted to the Agent, on behalf
of the Lenders, a security interest in and first mortgage lien upon the Property
(the “First Mortgage”); and

 

WHEREAS, this Second
Mortgage, and all rights and authority conveyed to Mortgagee hereby, shall be
subordinate to the First Mortgage for as long as the First Mortgage is
outstanding.  All capitalized terms used
herein but not defined herein shall have the meanings ascribed to them in the
Indenture.

 

II.

THE GRANT

 

NOW, THEREFORE, in order
to secure the payment of the Issuer’s and the Guarantors’ obligations under the
Indenture, Mortgagor’s obligations under the Guaranty and this Second Mortgage,
and the Issuer’s and the Guarantors’ obligations under the other Note Documents
that may now or hereafter become owing from the Issuer or any Guarantor to the
holders of Notes or Note Obligations or the Trustee (the “Secured Indebtedness”),
and in consideration of Ten and No/100 Dollars ($10.00) in hand paid by
Mortgagee to Mortgagor, the Recitals above stated, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Mortgagor GRANTS, BARGAINS, SELLS, ASSIGNS, RELEASES, ALIENS,
TRANSFERS, WARRANTS, DEMISES, CONVEYS and MORTGAGES to Mortgagee and its
successors and assigns (for
the equal and ratable benefit of the holders of the Notes and the Note
Obligations) forever (and grants to Mortgagee and its successors and assigns (for the equal and ratable benefit of the holders
of the Notes and the Note Obligations) forever a continuing security interest
in and to) all of Mortgagor’s estate, right, claim and interest in and to the
Premises, together with all of Mortgagor’s estate, right, claim and interest in
and to the following described property, all of which other property is pledged
primarily on a parity with the

 

 

Premises and not
secondarily (the Premises and the following described rights, interests, claims
and property are collectively referred to as the “Property”):

 

(a)           all buildings, structures and other
improvements of every kind and description now or hereafter erected, situated,
or placed upon the Premises (the “Improvements”), together with any and
all personal property now or hereafter owned by Mortgagor and located in or on,
forming part of, attached to, used or intended to be used in connection with,
or incorporated in any such  Improvements,
including all extensions of, additions to, betterments, renewals of,
substitutions for and replacements for any of the foregoing;

 

(b)           all claims, demands, rights, title
and interest of Mortgagor now owned or hereafter acquired, including without
limitation, any after-acquired title, franchise, license, remainder or
reversion, in and to any and all (i) land or vaults lying within the
right-of-way of any street, avenue, way, passage, highway, or alley, open or
proposed, vacated or otherwise, adjoining the Premises; (ii) alleys, sidewalks,
streets, avenues, strips and gores of land belonging, adjacent or pertaining to
the Premises or the Improvements; (iii) storm and sanitary sewer, water, gas,
electric, railway and telephone services relating to the Premises and the
Improvements; (iv) development rights, air rights, water, water rights, water
stock, gas, oil, minerals, coal and other substances of any kind or character
underlying or relating to the Premises or any part thereof; and (v) tenements,
hereditaments, easements, appurtenances, other rights, liberties, reservations,
allowances and privileges relating to the Premises or the Improvements or in
any way now or hereafter appertaining thereto, including homestead and any
other claims at law or in equity;

 

(c)           all right, title and interest of
Mortgagor in any and all leases, subleases, management agreements,
arrangements, concessions or agreements, written or oral, relating to the use
and occupancy of the Premises or the Improvements or any portion thereof, now
or hereafter existing or entered into (collectively “Leases”);

 

(d)           all rents, issues, profits,
royalties, revenue, advantages, income, avails, claims against guarantors, all
cash or security deposits, advance rentals, deposits or payments given and
other benefits now or hereafter derived directly or indirectly from the
Premises and Improvements under the Leases or otherwise (collectively “Rents”),
subject to the right, power and authority granted to Mortgagee pursuant to Section
3.8 hereof;

 

(e)           all right, title and interest of
Mortgagor in and to all options to purchase or lease the Premises or the
Improvements or any portion thereof or interest therein, or any other rights,
interests or greater estates in the rights and properties comprising the
Property now owned or hereafter acquired by Mortgagor;

 

 

(f)            any interests, estates or other
claims of every name, kind or nature, both in law and in equity, which
Mortgagor now has or may acquire in the Premises and Improvements or other
rights, interests or properties comprising the Property now owned or hereafter
acquired;

 

(g)           all rights of Mortgagor to any and
all plans and specifications, designs, drawings and other matters prepared for
any construction on the Premises or regarding the Improvements;

 

(h)           all rights of Mortgagor under any
contracts executed by Mortgagor with any provider of goods or services for or
in connection with any construction undertaken on or services performed or to
be performed in connection with the Premises or the Improvements;

 

(i)            all right, title and interest of
Mortgagor in and to all tangible personal property (“Personal Property”)
now or hereafter owned by Mortgagor and located in, on or at the Premises or
the Improvements and used or useful in connection therewith, including, without
limitation:

 

(i)            all building materials and equipment
located upon the Premises and intended for construction, reconstruction,
alteration, repair or incorporation in or to the Improvements now or hereafter
to be constructed thereon, whether or not yet incorporated in such Improvements
(all of which shall be deemed to be included in the Property upon delivery
thereto);

 

(ii)           all machines, machinery, fixtures,
apparatus, equipment or articles used in supplying heating, gas, electricity,
air-conditioning, water, light, power, plumbing, sprinkler, waste removal,
refrigeration, ventilation, and all fire sprinklers, alarm systems, protection,
electronic monitoring equipment and devices;

 

(iii)          all window, structural, maintenance
and cleaning equipment and rigs; and

 

(iv)          all fixtures now or hereafter owned by
Mortgagor and attached to or contained in and used or useful in connection with
the Premises or the Improvements; and

 

(j)            all the estate, interest, right,
title or other claim or demand which the Mortgagor now has or may hereafter
have or acquire with respect to (i) proceeds of insurance in effect with
respect to the Property and (ii) any and all awards, claims for damages,
judgments, settlements and other compensation made for or consequent upon the
taking by condemnation, eminent domain or any like proceeding, or by any
proceeding or purchase in lieu thereof, of the whole or any part of the
Property, including, without limitation, any awards and compensation resulting
from a change of grade of streets and awards and compensation for severance
damages (collectively “Awards”).

 

 

TO HAVE AND TO HOLD the
Property hereby mortgaged and conveyed or so intended, unto the Mortgagee, its
successors and assigns, forever, for the uses and purposes herein set forth,
subject, however, only to the Permitted Prior Liens, including the First
Mortgage.

 

The Mortgagor hereby
covenants with the Mortgagee:  (i) that
at the execution and delivery hereof, Mortgagor owns the Property and has good,
indefeasible estate therein, in fee simple; (ii) that the Property is free from
all encumbrances and exceptions to title (and any claim of any other person)
other than Permitted Prior Liens; (iii) that it has good and lawful right to
sell, mortgage and convey the Property; and (iv) that Mortgagor and its successors
and assigns shall forever warrant and defend the Property against all claims
and demands whatsoever.

 

If and when
the Secured Indebtedness has been indefensibly paid in full and the Issuer and
Guarantors have performed and observed all of the agreements, terms,
conditions, provisions and warranties contained herein and in the Indenture and
in all of the other Note Documents applicable to the Issuer and Guarantors and
there exist no commitments of the holders of the Notes or the Note Obligations
under the Note Documents which could give rise to Secured Indebtedness, then
this Second Mortgage and the estate, right and interest of the Mortgagee in and
to the Property shall cease and shall be released at the cost of Mortgagor, but
otherwise shall remain in full force and effect.

 

III.

GENERAL AGREEMENTS

 

3.1           Payment of Indebtedness.  Mortgagor shall pay promptly and when due
all amounts owing by Mortgagor in respect of the Secured Indebtedness at the
times and in the manner provided in the Indenture, the Notes, this Second
Mortgage, or any of the other Note Documents. 
The Notes bear interest at 8% annually and the latest scheduled final
maturity date of such Notes is currently March 1, 2011.

 

3.2           Impositions.  Except as otherwise permitted under Section
4.05 of the Indenture, Mortgagor shall pay prior to delinquency, all
general taxes, special taxes, special assessments, water charges, sewer
charges, and any other charges, fees, taxes, claims, levies, expenses, liens
and assessments, ordinary or extraordinary, governmental or nongovernmental,
statutory or otherwise (all of the foregoing being herein collectively referred
to as “Impositions”), that may be asserted against the Property or any
part thereof or Mortgagor’s interest therein.

 

3.3           Payment of Impositions by Mortgagee.  Upon the occurrence and during the
continuance of an Event of Default (as hereinafter defined), Mortgagee is
hereby authorized to make or advance, in the place and stead of Mortgagor, any
payment relating to Impositions. 
Mortgagee may do so according to any bill, statement, or estimate
procured from the appropriate public office without inquiry into the accuracy
or the validity of any Impositions, lien, sale, forfeiture, or related title or
claim.  Mortgagee is further authorized
to make or advance, in place of Mortgagor, unless such matter is being properly

 

 

contested by Mortgagor in
accordance with Section 4.05 of the Indenture, any payment relating to
any apparent or threatened adverse title, lien, statement of lien, encumbrance,
claim, charge, or payment otherwise relating to any other purpose herein and
hereby authorized, but not enumerated in this Section 3.3, with written
notice to Mortgagor whenever, in Mortgagee’s judgment and discretion, such
advance is necessary to protect the full security intended to be created by
this Second Mortgage.  All such advances
and indebtedness authorized by this Section 3.3 shall constitute Secured
Indebtedness and shall be repayable by Mortgagor upon demand with interest at
nine percent (9%) per annum (the “Default Rate”).

 

3.4           Condemnation and Eminent Domain.  Mortgagor shall give Mortgagee prompt notice
of all proceedings, instituted or threatened, seeking condemnation or a taking
by eminent domain or like process (herein collectively called “Taking”),
of all or any part of the Property or affecting any related easement or
appurtenance (including severance of, consequential damage to, or change in
grade of streets), and shall deliver to Mortgagee copies of any and all papers
served in connection with any such proceeding. 
Mortgagee (or, after entry of decree of foreclosure, the purchaser at
the foreclosure sale or decree creditor, as the case may be) is hereby
authorized at its option to participate in such proceeding and control the same
and to be represented therein by counsel of its own choice, and Mortgagor will
deliver, or cause to be delivered to Mortgagee such instruments as may be
requested by it from time to time to permit such participation or control.  Mortgagor must obtain Mortgagee’s consent,
which consent shall not be unreasonably withheld, to settle any such
proceeding.  Mortgagor hereby assigns,
transfers and sets over unto Mortgagee the entire proceeds of any and all
Awards resulting from any Taking. 
Mortgagee is hereby authorized to collect and receive from the
condemnation authorities all Awards and is further authorized to give
appropriate receipts and acquittances. 
Such Award or payment, less the amount of any expenses incurred in litigating,
arbitrating, compromising, or settling any claim arising out of a Taking, shall
be applied in the same manner as if they were proceeds from a casualty loss
covered by insurance in accordance with Section 10.06 of the
Indenture and in accordance with Section 3.5 hereafter.

 

3.5           Restoration.  In the event there shall be casualty loss or
a Taking, and Mortgagee elects or is required to cause the applicable insurance
proceeds or Award to be applied to restore, repair or replace the Property (“Restoration”),
Mortgagee shall disburse such insurance proceeds or Award in accordance with
disbursement procedures reasonably acceptable to Mortgagee, including, without
limitation, such procedures as are customarily utilized by construction lenders
to insure the lien free completion of construction projects.  No such insurance proceeds or Award shall be
disbursed unless the following conditions are satisfied promptly upon the
occurrence of the casualty loss or Taking (but in no event later than one
hundred eighty (180) days following such occurrence):

 

(a)           Mortgagee shall have received and
approved (which approval shall not be unreasonably withheld) complete plans and
specifications for the Restoration;

 

 

(b)           Mortgagee shall have received and
approved a construction contract for the work of Restoration with one or more
contractors acceptable to Mortgagee; and

 

(c)           Mortgagee shall have received copies
of all permits and approvals required in connection with the Restoration.

 

3.6           Maintenance of Property.  Mortgagor shall:

 

(a)           promptly repair, restore, replace or
rebuild any material portion of the Property which may become damaged,
destroyed, altered, removed, severed, or demolished, whether or not proceeds of
insurance are available or sufficient for the purpose, with replacements at
least equal in quality and condition as previously existed, free from any
security interest in, encumbrances on or reservation of title thereto except
the lien of this Second Mortgage and Permitted Prior Liens;

 

(b)           keep the Property in good condition
and repair, without waste, and free from mechanics’, materialmen’s or like
liens or claims except for Permitted Prior Liens; and

 

(c)           not make any material alterations in
the Property, which would reasonably be expected to cause a material diminution
of the value of the Property or cause violation of any law applicable to the
use and occupancy of the Property, except as required by law or municipal
ordinance or in the ordinary course of business.

 

3.7           Prohibited Liens; Prohibited
Transfers.

 

(a)           Except as otherwise permitted in Section
4.12 of the Indenture, Mortgagor shall not create, suffer, or permit to be
created or filed against the Property any Lien superior or inferior to the lien
created by this Second Mortgage.

 

(b)           Except as otherwise provided in Section
4.10 of the Indenture, Mortgagor may not sell, lease or convey all or any
part of the Property or any interest therein.

 

3.8           Assignment of Leases and
Rents.

 

(a)           This Second Mortgage is intended to
assign leases and rents pursuant to 25 Del.  C.  § 2121.  All right, title, and interest of Mortgagor
in and to all Leases and Rents are hereby transferred and assigned
simultaneously herewith to Mortgagee. 
Although it is the intention of the parties that the assignment
contained in this paragraph shall be a present assignment, it is expressly
understood and agreed, anything to the contrary notwithstanding, that Mortgagee
shall not exercise any of the rights or powers conferred upon it by this
paragraph unless an Event of Default shall exist and be continuing under this
Second Mortgage.

 

 

(b)           Following the occurrence of an Event
of Default and during the continuance thereof, (a) Mortgagee shall have the
rights and powers as are provided herein, (b) this Second Mortgage shall
constitute a direction to each lessee under the Leases and each guarantor
thereof to pay all Rents directly to Mortgagee without proof of the Event of
Default, and (c) Mortgagee shall have the authority, as Mortgagor’s
attorney-in-fact (such authority being coupled with an interest and
irrevocable), to sign the name of Mortgagor and to bind Mortgagor on all papers
and documents relating to the operation, leasing and maintenance of the
Property.

 

(c)           If Mortgagor, as lessor under any
Lease, shall neglect or refuse to perform, observe and keep any of the covenants,
provisions and agreements contained in such Lease, then Mortgagee may perform
and comply with any such Lease covenants, agreements and provisions with
written notice to Mortgagor.  All
reasonable costs and expenses incurred by Mortgagee in complying with such
covenants, agreements, and provisions shall constitute Secured Indebtedness and
shall be payable upon demand with interest payable at the Default Rate.

 

(d)           Mortgagee shall not be obligated to
perform or discharge any obligation, duty or liability under any Lease, and
Mortgagor shall and does hereby agree, except to the extent of Mortgagee’s
gross negligence or willful misconduct, to indemnify and hold the Mortgagee
harmless of and from any and all liability, loss or damage which it may or
might incur under any Lease or under or by reason of their assignments and of
and from any and all claims and demands whatsoever which may be asserted
against it by reason of alleged obligations or undertakings on its part to
perform or discharge any of the terms, covenants or agreements contained in
such Lease.  Should Mortgagee incur any
such liability, loss or damage under any Lease or under or by reason of its
assignment to Mortgagee, or in the defense of any claims or demands, the amount
thereof, including costs, expenses and reasonable attorneys’ fees, shall
constitute Secured Indebtedness and shall be payable upon demand with interest
payable at the Default Rate.

 

3.9           Uniform Commercial Code.

 

(a)           This Second Mortgage constitutes a
Security Agreement as that term is used in the Uniform Commercial Code in the
State (the “Code”) with respect to any part of the Property which may or
might now or hereafter be or be deemed to be personal property, fixtures or
property other than real estate (including all replacements thereof, additions
thereto and substitutions therefor) (collectively, the “Personal Property
Collateral”).  All of Mortgagor’s
right, title and interest in the Personal Property Collateral is hereby
assigned to Mortgagee to secure the payment of the Secured Indebtedness.

 

(b)           At any time after an Event of Default
has occurred and shall be continuing, Mortgagee shall have the remedies of a
secured party under the Code, including without limitation the right to take
immediate and exclusive possession of the Personal Property

 

 

Collateral or any
part thereof.  The remedies of Mortgagee
hereunder are cumulative and the exercise of any one or more of the remedies
provided for herein or under the Code shall not be construed as a waiver of any
of the other remedies of the Mortgagee, including having the Personal Property
Collateral deemed part of the realty upon any foreclosure so long as any part
of the Secured Indebtedness remains unsatisfied.

 

(c)           This Second Mortgage is intended to
be a “fixture filing” for purposes of the Code with respect to the items of
Property which are or may become fixtures relating to the Premises upon
recording of this Second Mortgage in the real estate records of the proper
office.  The addresses of Mortgagor
(Debtor) and Mortgagee (Secured Party) are set forth in Section 5.1
hereof.

 

(d)           The Mortgagor hereby directs and
authorizes Mortgagee to cause to be recorded in the County in which the
Premises are located, as well as with the applicable offices of the State, such
financing statements, fixture filings and other documents, including amendments
and continuations thereof, as shall be necessary in order to perfect and
preserve the priority of Mortgagee’s lien upon the Personal Property
Collateral.

 

3.10         Releases.  Without notice and without regard to the
consideration therefor, and to the existence at that time of any inferior
liens, Mortgagee may release from the lien created hereby all or any part of
the Property, or release from liability any person obligated to repay any of the
Obligations, without affecting the liability of any party to any of the Notes,
this Second Mortgage, or any of the other Note Documents (including without
limitation any guaranty given as additional security) and without in any way
affecting the priority of the lien created hereby.  Mortgagee may agree with any liable party to extend the time for
payment of any part or all of the Obligations. 
Such agreement shall not in any way release or impair the lien created
by this Second Mortgage or reduce or modify the liability of any person or
entity obligated personally to repay the Obligations, but shall extend the lien
created by this Second Mortgage as against the title of all parties having any
interest in the Property.

 

3.11         Further Assurances.  Mortgagor agrees that, upon the request of
Mortgagee from time to time, it will, at Mortgagor’s sole cost and expense,
execute, acknowledge and deliver all such additional instruments and further
assurances of title and will do or cause to be done all such further acts and
things as may reasonably be necessary to fully effectuate the intent of this
Second Mortgage.  In the event that
Mortgagor shall fail to do any of the foregoing, Mortgagee may, in its sole
discretion, do so in the name of Mortgagor, and Mortgagor hereby appoints
Mortgagee as its attorney-in-fact to do any of the foregoing.

 

IV.

EVENT OF DEFAULT AND REMEDIES

 

 

4.1           Event of Default.  The occurrence of an “Event of Default,” as
such term is defined in the Indenture, shall constitute an “Event of Default”
under this Second Mortgage.

 

4.2           Foreclosure and Remedies.  When all or any part of the Secured
Indebtedness shall become due, whether by acceleration or otherwise, Mortgagee
shall have the right to foreclose the lien hereof for such Secured Indebtedness
or part thereof and/or exercise any right, power or remedy provided in this
Second Mortgage or any of the other Note Documents.

 

4.3           Remedies Cumulative and Non-Waiver.  No remedy or right of Mortgagee hereunder or
under the Notes, or any of the Note Documents or otherwise, or available under
applicable law, shall be exclusive of any other right or remedy.  Each such remedy or right shall be in
addition to every other remedy or right now or hereafter existing under any
such document or under applicable law. 
No delay in the exercise of, or omission to exercise, any remedy or
right accruing on the occurrence of any Event of Default shall impair any such
remedy or right or be construed to be a waiver of any such Event of Default or
an acquiescence therein, nor shall it affect any subsequent Event of Default of
the same or a different nature, nor shall it extend or affect any grace
period.  Every remedy or right may be
exercised concurrently or independently, when and as often as may be deemed
expedient by the Mortgagee.  All
obligations of the Mortgagor, and all rights, powers and remedies of the
Mortgagee shall be in addition to, and not in limitation of, those provided by
law or in the Notes or contained in any of the Note Documents or any other
written agreement or instrument relating to any of the Secured Indebtedness or
any security therefor.

 

4.4           Expenses.  In any proceeding to foreclose or partially
foreclose the lien of this Second Mortgage, there shall be allowed and
included, as additional indebtedness in the judgment or decree resulting
therefrom, all reasonable expenses paid or incurred by or on behalf of
Mortgagee in the protection of the Property and the exercise of Mortgagee’s
rights and remedies hereunder, which expenses may be estimated as to items to
be expended after entry of any judgment or decree of foreclosure.  Such expenses shall include:  reasonable attorney’s fees, appraiser’s
fees, outlays for documentary and expert evidence, stenographer’s charges,
publication costs, survey costs, and costs of procuring all abstracts of title,
title searches and examinations, title insurance policies, and any similar data
and assurances with respect to title to the Property as Mortgagee may deem
reasonably necessary either to prosecute any such proceeding or to evidence to
bidders at any sale pursuant to such decree the true condition of the title to
or value of the Premises or the Property. 
All such expenses shall be due and payable by Mortgagor upon demand with
interest thereon at the Default Rate.

 

4.5           Mortgagee’s Performance of Mortgagor’s
Obligations.  Following the
occurrence of an Event of Default and during the continuance thereof,
Mortgagee, either before or after acceleration of the Secured Indebtedness or
the foreclosure of the lien hereof and during the period of redemption, if any,
may, but shall not be required to (a) make any payment or perform any act
herein, in the Notes or any other Note Document which is required of Mortgagor
(whether or not Mortgagor is personally liable

 

 

therefor) in any form and
manner deemed expedient to Mortgagee; (b) make full or partial payments of
principal or interest on any permitted prior mortgage or encumbrance and
purchase, discharge, compromise or settle any tax lien or other prior lien on
title or claim thereof, or redeem from any tax sale or forfeiture affecting the
Premises, or contest any Impositions; and (c) complete construction, furnishing
and equipping of the Improvements upon the Premises and rent, operate and
manage the Premises and such Improvements and pay operating costs and expenses,
including management fees, of every kind and nature in connection therewith, so
that the Premises and Improvements shall be operational and usable for their
intended purposes.  All monies paid for
any of the purposes herein authorized, and all expenses paid or incurred in
connection therewith, including reasonable attorneys’ fees, shall constitute
Secured Indebtedness, and shall become due and payable upon demand and with
interest thereon at the Default Rate.  Mortgagee,
in making any payment hereby authorized: (x) for the payment of Impositions,
may do so according to any bill or statement, without inquiry into the validity
of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof;
(y) for the purchase, discharge, compromise or settlement of any other prior
lien, may do so without inquiry as to the validity or amount of any claim or
lien which may be asserted; or (z) for the completion of construction,
furnishing or equipping of the Improvements or the Premises or the rental,
operation or management of the Premises or the payment of operating cost and
expenses thereof, may do so in such amounts and to such persons as Mortgagee
may reasonably deem appropriate and may enter into such contracts therefor as
Mortgagee may deem appropriate or may perform the same itself.

 

4.6           Right of Possession.  Following the occurrence of an Event of
Default and during the continuance thereof, Mortgagor shall, immediately upon
Mortgagee’s demand, surrender to Mortgagee, and Mortgagee shall be entitled to
take actual possession of the Property or any part thereof, personally or by
its agent or attorneys.  Mortgagee may
enter upon and take and maintain possession or may apply to the court in which
a foreclosure is pending to be placed in possession of all or any part of the
Property, together with all documents, books, records, papers, and accounts of
Mortgagor or the then owner of the Property relating thereto.  Mortgagee may exclude Mortgagor, such owner,
and any agents and servants from the Property. 
As attorney-in-fact or agent of Mortgagor or such owner, or in its own
name Mortgagee may hold, operate, manage, and control all or any part of the
Property, either personally or by its agents. 
Mortgagee shall have full power to use such measures, legal or
equitable, as it may deem proper or necessary to enforce the payment or
security of the rents, issues, deposits, profits, and avails of the Property,
including actions for recovery of rent, actions in forcible detainer, and
actions in distress for rent, all without notice to Mortgagor.

 

4.7           Application of Income Received by
Mortgagee.  Mortgagee, in the
exercise of the rights and powers hereinabove conferred upon it, shall have
full power to use and apply the avails, rents, issues and profits of the
Property to the payment of or on account of the following, in such order as
Mortgagee may determine:  (i) to the
payment of the operating expenses of the Property including cost of management
thereof, established claims for damages, if any, and premiums on insurance
hereinabove authorized; (ii) to the payment of taxes and special assessments
now due or which may hereafter become

 

 

due on the Premises; (iii) to
all other items which may under the terms hereof constitute Secured
Indebtedness additional to that evidenced by the Notes, with interest thereon
as provided herein or in the other Note Documents; and (iv) to all principal
and interest remaining unpaid on the Notes.

 

4.8           Appointment of Receiver.  Upon, or at any time after, the filing of a
complaint to foreclose (or partially foreclose) this Second Mortgage, the court
in which such complaint is filed shall, upon petition by Mortgagee, appoint a
receiver for the Property.  Such appointment
may be made either before or after foreclosure sale, without notice, without
regard to the solvency or insolvency, at the time of application for such
receiver, of the person or persons, if any, liable for the payment of the
Secured Indebtedness, without regard to the value of the Property at such time
and whether or not the same is occupied as a homestead, and without bond being
required of the applicant.  Mortgagee or
any employee of Mortgagee thereof may be appointed as such receiver.  Such receiver shall have all powers and
duties prescribed by applicable law, including the power to take possession,
control, and care of the Property and to collect all rents thereof during the
pendency of such foreclosure suit and, in the event of a sale and deficiency,
where Mortgagor has not waived its statutory rights of redemption, during the
full statutory period of redemption, as well as during any further times when
Mortgagor or its devisees, legatees, heirs, executors, administrators, legal
representatives, successors, or assigns, except for the intervention of such
receiver, would be entitled to collect such rents.  The court from time to time, either before or after entry of
judgment of foreclosure, may authorize the receiver to apply the net income in
his hands in payment in whole or in part of: 
(a) the indebtedness secured hereby, or by any decree foreclosing this
Second Mortgage, or any tax, special assessment or other lien which may be or
become superior to the lien hereof or of such decree, provided such application
is made prior to foreclosure sale, and (b) the deficiency in case of a sale and
deficiency.

 

4.9           Foreclosure Sale.  In the event of any foreclosure sale, the
Property may be sold in one or more parcels. 
Mortgagee may bid for and acquire the Property or any part thereof at
any sale made under or by virtue of this Second Mortgage and, in lieu of paying
cash therefor, may make settlement for the purchase price by crediting against
the purchase price the unpaid amounts due and owing in respect of any Notes,
Obligations or any other liabilities after deducting from the sales price the
expenses of the sale and the costs of the action or proceedings and any other
sums that Mortgagee is authorized to deduct under this Second Mortgage or
applicable law.

 

4.10         Application of Proceeds of
Foreclosure Sale.  The proceeds of
any foreclosure sale of the Property shall be distributed and applied in the
following order of priority:  first, to
all costs and expenses incident to the foreclosure proceedings, including all
such items as are mentioned in Section 4.4 above; second, to all other
items which may under the terms hereof constitute Secured Indebtedness
additional to that evidenced by the Notes, with interest thereon as provided
herein or in the other Note Documents; third, to all principal and interest
remaining unpaid on the Notes; and fourth, any surplus to Mortgagor, its
successors or assigns, as their rights may appear or to any other party legally
entitled thereto.

 

 

4.11         Adjournment of Foreclosure Sale.  Mortgagee may adjourn from time to time any
sale by it to be made under or by virtue of this Second Mortgage by
announcement at the time and place appointed for such sale or for such
adjourned sale or sales, and, except as otherwise provided by any applicable
provisions of law, Mortgagee, without further notice or publication, may make
such sale at the time and place to which the same shall be so adjourned.

 

4.12         Insurance Upon Foreclosure.  In case of an insured loss after foreclosure
proceedings have been instituted, the proceeds of any insurance policy or
policies, if not applied in repairing, restoring, replacing or rebuilding any
portion of the Property, shall be used to pay the amount due in accordance with
any decree of foreclosure that may be entered in any such proceedings, and the
balance, if any, shall be paid as the court may direct.  In case of the foreclosure of this Second
Mortgage, the court in its judgment may provide that the judgment creditor may
cause a new or additional loss clause to be attached to each of said policies
making the loss thereunder payable to said judgment creditor; and any such
foreclosure judgment may further provide, unless the right of redemption has
been waived, that in case of redemption under said judgment, then, and in every
such case, the redemptory may cause the preceding loss clause attached to each
insurance policy to be canceled and a new loss clause to be attached thereto,
making the loss thereunder payable to such redemptory.

 

4.13         Waiver of Statutory Rights.  To the extent permitted under the laws of
Delaware, Mortgagor shall not apply for or avail itself of any appraisement,
valuation, redemption, stay, extension, or exemption laws, or any so-called
“moratorium laws,” now existing or hereafter enacted, in order to prevent or
hinder the enforcement or foreclosure of this Second Mortgage, and Mortgagor
hereby waives the benefit of such laws. 
Mortgagor, for itself and all who may claim through or under it, waives
any and all rights to have the Property and estates comprising the Property marshaled
upon any foreclosure of the lien of this Second Mortgage, and agrees that any
court having jurisdiction to foreclose such lien may order the Property sold in
its entirety.  Mortgagor further waives
any and all rights of redemption from foreclosure and from sale under any order
or decree of foreclosure of the lien created by this Second Mortgage, for
itself and on behalf of: (i) any trust estate of which the Premises are a part;
(ii) all beneficially interested persons; (iii) each and every person acquiring
any interest in the Property or title to the Premises subsequent to the date of
this Second Mortgage; and (iv) all other persons to the extent permitted by the
provisions of laws of the State in which the Premises are located.

 

4.14         Effect of Judgment.  The obtaining of any judgment by Mortgagee
and any levy of any execution under any judgment upon the Property shall not
affect in any manner or to any extent the Lien of this Second Mortgage upon the
Property or any part thereof, or any Liens, powers, rights and remedies of
Mortgagee hereunder, but such Liens, powers, rights and remedies shall continue
unimpaired as before until the judgment or levy is satisfied.

 

V.

MISCELLANEOUS

 

 

5.1           Notices.  Any notice or other communication required
shall be in writing addressed to the respective party as set forth below and
may be personally served, telecopied, sent by overnight courier service or U.S.
mail and shall be deemed to have been given: (a) if delivered in person, when
delivered; (b) if delivered by fax, on the date of transmission if transmitted
on a Business Day before 4:00 p.m. New York Time; (c) if delivered by overnight
courier, one (1) Business Day after delivery to the courier properly addressed;
or (d) if delivered by U.S. mail, four (4) Business Days after deposit with
postage prepaid and properly addressed.

 

Notices shall be
addressed as follows:

 

(i)            If to Mortgagor:

 

PLAYTEX
MANUFACTURING, INC.

300 Nyala
Farms Road

Westport,
Connecticut 06880

ATTN:  William Stammer

Fax:  (203) 341-4260

 

with a copy
to:

 

HAAS WHEAT
& PARTNERS, L.P.

300 Crescent
Court, Suite 1700

Dallas, Texas
75201

ATTN:  Todd Robichaux

Fax:  (214) 871-8316

 

(ii)                                  If
to Mortgagee:

 

WELLS FARGO
BANK MINNESOTA, NATIONAL ASSOCIATION

CORPORATE TRUST SERVICES

213 Court
Street, Suite 703

Middletown,
Connecticut 06547

ATTN: Joseph
P. O’Donnell

Fax:  (806) 704-6219

 

5.2           Time of Essence.  Time is of the essence of this Second
Mortgage.

 

5.3           Covenants Run with Land.  All of the covenants of this Second Mortgage
shall run with the land constituting the Premises.

 

 

5.4           GOVERNING LAW.  THIS
MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PROVISIONS THEREOF, PROVIDED, HOWEVER, THAT WITH
RESPECT TO THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIEN OF
THIS MORTGAGE ON REAL PROPERTY, THE LAWS OF THE STATE WHERE THE MORTGAGED
PROPERTY IS LOCATED SHALL APPLY WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PROVISIONS THEREOF AND PROVIDED, FURTHER, THAT, WITH RESPECT TO
ANY PERSONAL PROPERTY INCLUDED IN THE MORTGAGED PROPERTY, THE CREATION OF THE
SECURITY INTEREST SHALL BE GOVERNED BY THE UNIFORM COMMERCIAL CODE AS IN EFFECT
FROM TIME TO TIME IN THE STATE OF NEW YORK (THE “NY UCC”) AND THE PERFECTION,
THE EFFECT OF PERFECTION OR NON-PERFECTION AND PRIORITY OF THE SECURITY
INTEREST WILL BE GOVERNED IN ACCORDANCE WITH MANDATORY CHOICE OF LAW RULES SET
FORTH IN THE NY UCC.

 

5.5           Severability.  If any provision of this Second Mortgage, or
any paragraph, sentence, clause, phrase, or word, or their application, in any
circumstance, is held invalid, the validity of the remainder of this Second
Mortgage shall be construed as if such invalid part were never included.

 

5.6           Non-Waiver.  Unless expressly provided in this Second
Mortgage to the contrary, no consent or waiver, express or implied, by any
party, to or of any breach or default by any other party shall be deemed a
consent to or waiver of the performance by such defaulting party of any other
obligations or the performance by any other party of the same, or of any other,
obligations.

 

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

 

5.8           Grammar.  As used in this Second Mortgage, the
singular shall include the plural, and masculine, feminine, and neuter pronouns
shall be fully interchangeable, where the context so requires.

 

5.9           Deed in Trust.  If title to the Property or any part thereof
is now or hereafter becomes vested in a trustee, any prohibition or restriction
against the creation of any lien on the Property shall be construed as a
similar prohibition or restriction against the creation of any lien on or
security interest in the beneficial interest of such trust.

 

5.10         Successors and Assigns.  This Second Mortgage shall be binding upon
Mortgagor, its successors, assigns, legal representatives, and all other
persons or entities claiming under or through Mortgagor.  The word “Mortgagee,” when used herein,
shall include each of: (i) the Agent in its

 

 

capacity as a Lender and as
Agent for the Lenders; and (ii) the Lenders, together with each of their successors,
assigns and legal representatives.

 

5.11         Counterparts.  This Second Mortgage may be executed in any
number of separate counterparts, each of which shall collectively and
separately constitute one Second Mortgage.

 

5.12         Mortgagee in Possession.  Nothing contained in this Second Mortgage
shall be construed as constituting Mortgagee a mortgagee in possession in the
absence of the actual taking of possession of the Property.

 

5.13         Incorporation of Indenture; No
Conflicts.  The terms of the
Indenture are incorporated by reference herein as though set forth in full
detail.  In the event of any conflict
between the terms and provisions of Section 3.9 of this Second Mortgage
and the Security Agreement, the terms and provisions of the Security Agreement
shall control; in the event of a conflict between any other term or provision
of this Second Mortgage and the Indenture, the terms and provisions of the
Indenture shall control.

 

5.14         Special Delaware Provisions.  Notwithstanding anything contained herein to
the contrary:

 

(a)           This
Second Mortgage is intended to apply to future advances pursuant to 25 Del.
C. § 2118.  This Second
Mortgage secures not only existing indebtedness or advances made
contemporaneously with the execution hereof, if any, but also future principal
advances, with all interest accrued thereon, to or for the benefit of Issuer up
to a maximum principal amount of Eight Hundred Sixty-Five Million Dollars
($865,000,000), made pursuant to the terms of the Indenture, this Second
Mortgage, the other Note Documents and other documents evidencing the Secured
Indebtedness (as the same may be modified, amended or supplemented from time to
time), the terms of all of which are incorporated herein by reference.  All such future advances, whether such advances
are obligatory, optional or both and whether made before or after default or
maturity or other similar event, shall be secured by this Second Mortgage to
the same extent as if such future advances were made contemporaneously with the
execution of this Second Mortgage, even though no advance may have been made at
the time of execution of this Second Mortgage and even though no indebtedness
is outstanding at the time any advance is made.  Any lien attaching to the Property after the date hereof shall be
under, subject and subordinate to all Secured Indebtedness, including, without
limitation, future advances (regardless of when made) secured hereby.  This Second Mortgage shall also secure, in
addition to the maximum principal amount specified herein, disbursements and
other advances made for the payment of taxes, assessments, maintenance, care,
protection or insurance on the Property, for the discharge of liens having
priority over the lien of this Second Mortgage, for the curing of waste of the
Property, for indemnification obligations regarding environmental liabilities
of the Property, and for service charges and expenses incurred by reason of a
default hereunder, including, without limitation, late charges, attorney’s fees
and court costs, together with interest on all such disbursements at the
Default rate, and all other charges, disbursements, advances, costs and
expenses now or hereafter permitted by law. 
The preference and priority of the lien of this Second Mortgage shall
extend to any

 

 

and all modifications of this Second Mortgage or of the obligations
secured by this Second Mortgage, except to the extent expressly limited by
applicable law.  Notwithstanding the
foregoing, Mortgagee shall have no obligation to make any disbursements or
advance any sums as a result of this section.

 

5.15         No Strict Construction.  The parties hereto have participated jointly
in the negotiation and drafting of this Second Mortgage.  In the event an ambiguity or question of
intent or interpretation arises, this Second Mortgage shall be construed as if
drafted jointly by the parties hereto and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of
this Second Mortgage.

 

 

IN WITNESS WHEREOF,
Mortgagor has duly executed this Second Mortgage with the intent that the
document be executed and delivered as a sealed instrument, and affixed its seal
or adopted as its seal the marking appearing beside its execution below, all as
of the date and year first above written.

 

	
  Signed,
  sealed and delivered

  	
  PLAYTEX
  MANUFACTURING, INC.,

  
	
  in the
  presence of:

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
      /s/    unreadable

  	
   

  	
  By: 

  	
  /s/ William
  Stammer

  	
   

  
	
  Witness

  	
   

  	
  Name:  William Stammer

  
	
   

  	
   

  	
  Title:    Associate
  General Counsel

  
	
   

  	
   

  
	
   

  	
  Attest:

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  McColgan

  	
   

  
	
   

  	
   

  	
  Name:  John McColgan

  
	
   

  	
   

  	
  Title:   Vice
  President

  
							

 

S-1

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
  SS

  
	
  COUNTY OF
  NEW YORK

  	
  )

  	
   

  	
   

  

 

The foregoing
instrument was acknowledged before me this 19th day of February, 2004, by
William Stammer, Associate General Counsel and Assistant Secretary of PLAYTEX
MANUFACTURING, INC., a Delaware corporation, on behalf of the corporation.

 

 

	
   

  	
  /s/ Michele
  Auteri

  
	
   

  	
  Notary Public

  
	
   

  	
  Name:  Michelle Auteri

  
	
   

  	
  My Commission
  Expires:  April 14, 2006

  
	
   

  	
   

  
	
   

  	
   

  
	
  [NOTARY
  SEAL]

  	
   

  

 

S-1

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]