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Exhibit 4.8  

 
 

AMENDMENT NO. 3
  TO
  CREDIT AGREEMENT    
  

        THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT ("Amendment") is dated as
of May 31, 2002, by and among WEIDER NUTRITION GROUP, INC., a Utah corporation
("Borrower"); DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation f/k/a Bankers Trust
Company (in its individual capacity, hereinafter referred to as "DBTCo") and the other financial institutions signatories hereto as lenders hereunder
(DBTCo and such other financial institutions, together with all other financial institutions from time to time parties to the Credit Agreement referred to herein below as lenders thereunder, each a
"Lender" and, collectively, the "Lenders"); and DBTCo, acting in its capacity as agent (in such
capacity, hereinafter referred to as "Agent") for itself and the other Lenders. Capitalized terms used herein but not otherwise defined herein shall
have the respective meanings assigned to such terms in the Credit Agreement. 

WITNESSETH:  

        WHEREAS, Borrower, Agent and Lenders have entered into that certain Credit Agreement dated as of June 30,
2000, as amended (the "Credit Agreement"), pursuant to which Lenders have agreed to make certain loans and other financial accommodations to or for the
account of Borrower; and 

        WHEREAS, Borrower, Agent and Lenders have agreed to further amend the Credit Agreement, on the terms and subject to the conditions set
forth herein; 

        NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the respective parties hereto hereby agree as follows: 

        1.    Certain Waivers.    Effective upon satisfaction of the conditions precedent set forth in  Section 2 below, and in reliance upon the representations and warranties of Borrower set forth herein and in the other Credit Documents, Agent
and Lenders hereby agree as follows: 

        1.1  Notwithstanding the respective provisions of Section 2.4(f)(i) of
the Credit Agreement and Section 3.2 of Amendment No. 2 to the Credit Agreement dated as of August 28, 2001, if the Subordinated
Note Redemption Date (as defined herein below) occurs on or prior to June 15, 2002, Borrower shall not be required to make mandatory repayments of principal of the outstanding Terms Loans with
the net cash proceeds of asset sales consummated during the fiscal year of Borrower ending May 31, 2002, to the extent such net cash proceeds do not exceed $2,500,000. 

        1.2  Notwithstanding the provisions of Section 2.4(f)(iv) of the Credit
Agreement, if the Subordinated Note Redemption Date occurs on or prior to June 15, 2002, Borrower shall not be required to make a mandatory repayment of principal of the outstanding Terms Loans
in the amount of the Excess Cash Flow Payment for the fiscal year of Borrower ending May 31, 2002, to the extent such Excess Cash Flow Payment does not exceed $1,500,000. 

        2.    Amendment to Credit Agreement.    Effective upon satisfaction of the conditions
precedent set forth in Section 2 below, and in reliance upon the representations and warranties of Borrower set forth herein and in the other
Credit Documents, the Credit Agreement is hereby amended as follows: 

        2.1  Section 1.1 of the Credit Agreement is hereby amended by inserting
the following defined terms therein in the appropriate alphabetical order: 

        "Subordination Agreement" shall mean that certain Subordination Agreement dated as of
June 30, 2000, between Agent and Subordinated Lenders. 

 

        "Subordinated Note Redemption Date" shall have the meaning ascribed to that term in  Section 8.8(a).

        2.2  The definition of the term "Borrowing Base" set forth in  Section 1.1 of the Credit Agreement is hereby amended by deleting clause (ii) thereof in
its entirety and substituting the following language therefor: 

        (ii)  the lesser of $22,500,000 or sixty-five percent (65%) of the Eligible Inventory,  minus

        2.3  Section 2.4(e) of the Credit Agreement is hereby amended by
inserting the following language therein immediately following the table of scheduled repayments of principal on the Term Loans set forth therein: 

provided, that, notwithstanding the foregoing, (i) Borrower shall not be required to make the
installment of principal on the Term Loans set forth above and scheduled to occur on May 31, 2002, until June 15, 2002, and, in any event, if the Subordinated Note Redemption Date occurs
on or prior to June 15, 2002, Borrower shall not be required to make such installment of principal on the Term Loans on such or any other date; and  (ii) from and after the Subordinated Note
Redemption Date, in lieu of the respective installments of principal on the Term Loans set forth above and
scheduled to occur after such date, commencing on August 31, 2002, and on the last day of each fiscal quarter of Borrower ending thereafter, Borrower shall be required to repay the aggregate
outstanding principal amount of the Term Loans by an amount equal to $928,000. 

        2.4  Section 8.8(a) of the Credit Agreement is hereby deleted in its entirety and the following language is hereby
substituted therefor: 

        (a)    Borrower
may (i) make interest payments under the Subordinated Notes, to the extent and at the times permitted pursuant
to the Subordination Agreement; and (ii) notwithstanding the terms and provisions of the Subordination Agreement, on or prior to June 15, 2002,
Borrower may redeem Subordinated Notes in an aggregate principal amount not exceeding $5,000,000 (the consummation date of such redemption being the "Subordinated Note
Redemption Date), so long as (x) immediately before and after giving effect to such redemption, no Default or Event of Default
shall have occurred and be continuing, and (y) immediately prior thereto, and in addition to any previous repayments of principal on the Term Loans made
pursuant to Section 2.4(e) or (f), respectively, Borrower shall have  (A) requested a Borrowing in the
amount of $10,000,000, and (B) authorized and directed Agent to use the
full amount of the proceeds thereof to repay the then outstanding principal amount of the Term Loans. 

        2.5  Annex 1 to the Credit Agreement is hereby deleted in its entirety and  Exhibit A hereto is hereby substituted therefor. 

        3.    Conditions Precedent.    This Amendment shall become effective as of the date hereof
upon satisfaction in full of each of the following conditions: 

        (a)    Agent shall have received a copy of this Amendment, duly executed and delivered by each of the Credit Parties and the
Lenders, together with all other acknowledgments and/or consents, if any, requested by it, each of which shall be in form and substance satisfactory to Agent; and 

        (b)    Agent shall have received in immediately available Dollars for the ratable account of the Lenders an amendment fee in the
amount of $84,189. 

2

 

        4.    Representations, Warranties and Covenants.    

        4.1  Borrower hereby represents and warrants to Agent and each of the Lenders that, after giving effect to this Amendment: 

        (a)    All representations and warranties contained in the Credit Agreement and the other Credit Documents are true and correct
in all material respects on and as of the date of this Amendment, in each case as if then made, other than representations and warranties that expressly relate solely to an earlier date (in which case
such representations and warranties remain true and correct in all material respects on and as of such earlier date, except for changes permitted by the Credit Agreement); 

        (b)    No Default or Event of Default has occurred which is continuing; 

        (c)    This Amendment and the Credit Agreement, as amended hereby, constitute the legal, valid and binding obligations of
Borrower and are enforceable against Borrower in accordance with their respective terms, except as such enforceability may be limited by (i) the effect
of any applicable bankruptcy, insolvency reorganization, moratorium or similar laws affecting creditors' rights generally and (ii) general principles of
equity; and 

        (d)    The execution and delivery of this Agreement and the other Credit Documents contemplated hereby  (i) does not and will not contravene,
conflict with, violate or constitute a default under the certificate of incorporation or bylaws of any Credit
Party, or any applicable law, rule, regulation, judgment, decree or order or any agreement, indenture or instrument to which any Credit Party is a party or is bound or which is binding upon or
applicable to all or any portion of any Credit Party's property, and (ii) does
not require the consent or approval of any Person, except for any such consents or approvals which have been obtained and remain in full force and effect. 

        5.    Reference to and Effect on the Credit Agreement and the Other Credit Documents.    

        5.1    Upon the effectiveness of this Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder",
"hereof", "herein" or words of like import, and each reference in each of the other Credit Documents to the "Credit Agreement" shall in each case mean and be a reference to the Credit Agreement as
amended hereby. 

        5.2    Except as expressly set forth herein, (i) the execution and delivery of
this Amendment shall in no way affect any of the respective rights, powers or remedies of Agent or any of the Lenders with respect to any Default or Event of Default nor constitute a waiver of any
provision of the Credit Agreement or any of the other Credit Documents and (ii) all of the respective terms and provisions of the Credit Agreement, the
other Credit Documents and all other documents, instruments, amendments and agreements executed and/or delivered by Borrower pursuant thereto or in connection therewith shall remain in full force and
effect and are hereby ratified and confirmed in all respects. The execution and delivery of this Amendment by Agent and the respective Lenders shall in no way obligate Agent or any of the Lenders, at
any time hereafter, to consent to any other amendment or modification of any term or provision of the Credit Agreement or any of the other Credit Documents, whether of a similar or different nature. 

        5.3    Borrower (and each other Credit Party which executed an acknowledgement hereof, by such execution), in its respective
capacities under the each of the Credit Documents to which it is a party (including the capacities of obligor, grantor, mortgagor, pledgor, guarantor, indemnitor and assignor, as applicable, and each
other similar capacity, if any, in which such Credit Party has granted Liens on all or any part of the properties or assets of such Credit Party, or otherwise acts as an accommodation party,
guarantor, indemnitor or surety with respect to all or any part of the Obligations), hereby (a) agrees that, except as otherwise expressly set forth
herein, the terms and 

3

 

provisions hereof shall not affect in any way any payment, performance, observance or other obligations or liabilities of such Credit Party under the Credit Agreement or any of the other Credit
Documents, all of which obligations and liabilities shall remain in full force and effect and extend to the further loans, extensions of credit and other Obligations provided for thereunder, and each
of which obligations and liabilities are hereby ratified, confirmed and reaffirmed in all respects; and (b) to the extent such Credit Party has granted
Liens on any of its properties or assets pursuant to any of the Credit Documents to secure the prompt and complete payment, performance and/or observance of all or any part of the Obligations,
acknowledges, ratifies, confirms and reaffirms such grant of Liens, and acknowledges and agrees that all of such Liens are intended and shall be deemed and construed to secure to the fullest extent
set forth therein all now existing and hereafter arising Obligations under and as defined in this Credit Agreement, as amended, restated, supplemented and otherwise modified and in effect from time to
time. 

        6.    Governing Law.    THE VALIDITY, INTERPRETATION AND ENFORCEMENT
OF THIS AMENDMENT SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW
PRINCIPLES.

        7.    Headings.    Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose. 

        8.    Counterparts.    This Amendment may be executed or otherwise authenticated in any number
of counterparts and by the different parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument. Any such counterpart which may be delivered by facsimile, email or similar electronic transmission shall be deemed the equivalent of an originally signed counterpart and shall be
fully admissible in any enforcement proceedings regarding this Amendment. 

-Remainder of Page Intentionally Left Blank-
[Signature Pages Follow-]

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

	 	 	BORROWER:
	

 	
 	

 	
 	

 
	 	 	WEIDER NUTRITION GROUP, INC., a Utah corporation
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	

 	
 	

 
	 	 	AGENT AND LENDER:
	

 	
 	

 	
 	

 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, in its respective capacities as Agent and Lender
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

5

 

	 	 	LENDER:
	

 	
 	

 	
 	

 
	 	 	DIME COMMERCIAL CORP.
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	

 	
 	

 
	 	 	LENDER:
	

 	
 	

 	
 	

 
	 	 	KEY BANK NATIONAL ASSOCIATION
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	

 	
 	

 
	 	 	LENDER:
	

 	
 	

 	
 	

 
	 	 	LASALLE BANK NATIONAL ASSOCIATION
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	

 	
 	

 
	 	 	LENDER:
	

 	
 	

 	
 	

 
	 	 	US BANK NATIONAL ASSOCIATION
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	

 	
 	

 
	 	 	LENDER:
	

 	
 	

 	
 	

 
	 	 	ZIONS FIRST NATIONAL BANK
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

6

 
 

EXHIBIT A
  TO
  AMENDMENT NO. 3 TO CREDIT AGREEMENT
  DATED AS OF MAY 31, 2002    
  

AMENDED ANNEX I TO CREDIT AGREEMENT

Attached. 

 
 

ANNEX I
  TO
  CREDIT AGREEMENT
  DATED AS OF JUNE 30, 2000    
  

LENDERS; COMMITMENTS; LENDING OFFICES

        1.    DEUTSCHE BANK TRUST COMPANY AMERICAS:    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	13,333,333.33
	Term Loan Commitment:	 	$	4,694,666.67
	Aggregate Commitment:	 	$	18,028,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	10,000,000.00
	Term Loan Commitment:	 	$	2,472,444.44
	Aggregate Commitment:	 	$	12,472,444.44

Domestic
Lending Office and LIBOR Lending Office: 

31
West 52nd Street

New York, New York 10019 

        2.    DIME COMMERCIAL CORP.:    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	10,000,000.00
	Term Loan Commitment:	 	$	3,521,000.00
	Aggregate Commitment:	 	$	13,521,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	7,500,000.00
	Term Loan Commitment:	 	$	1,854,333.33
	Aggregate Commitment:	 	$	9,354,333.33

Domestic
Lending Office and LIBOR Lending Office: 

1180
Avenue of the Americas

Suite 510

New York, New York 10036 

        3.    KEY BANK NATIONAL ASSOCIATION:    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	10,000,000.00
	Term Loan Commitment:	 	$	3,521,000.00
	Aggregate Commitment:	 	$	13,521,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	7,500,000.00
	Term Loan Commitment:	 	$	1,854,333.33
	Aggregate Commitment:	 	$	9,354,333.33

Domestic
Lending Office and LIBOR Lending Office: 

50
South Main Street

Salt Lake City, Utah 84130-0815 

        4.    LASALLE BANK NATIONAL ASSOCIATION:    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	10,000,000.00
	Term Loan Commitment:	 	$	3,521,000.00
	Aggregate Commitment:	 	$	13,521,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	7,500,000.00
	Term Loan Commitment:	 	$	1,854,333.33
	Aggregate Commitment:	 	$	9,354,333.33

Domestic
Lending Office and LIBOR Lending Office: 

135
South LaSalle Street

Chicago, Illinois 60603 

        5.    US BANK NATIONAL ASSOCIATION    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	6,666,666.67
	Term Loan Commitment:	 	$	2,347,333.33
	Aggregate Commitment:	 	$	9,014,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	5,000,000.00
	Term Loan Commitment:	 	$	1,236,222.22
	Aggregate Commitment:	 	$	6,236,222.22

Domestic
Lending Office and LIBOR Lending Office: 

15
West South Temple

Suite 600

Salt Lake City, Utah 84101 

        6.    ZIONS FIRST NATIONAL BANK:    

        A.    At all times prior to the Subordinated Note Redemption Date:    

	Revolving Loan Commitment:	 	$	10,000,000.00
	Term Loan Commitment:	 	$	3,521,000.00
	Aggregate Commitment:	 	$	13,521,000.00

        B.    At all times from and after the Subordinated Note Redemption
Date:    

	Revolving Loan Commitment:	 	$	7,500,000.00
	Term Loan Commitment:	 	$	1,854,333.33
	Aggregate Commitment:	 	$	9,354,333.33

Domestic
Lending Office and LIBOR Lending Office: 

One
South Main Street

Suite 200

Salt Lake City, Utah 84111 

 
 

ACKNOWLEDGMENT    
  

        Reference is hereby made to that certain Subordination Agreement dated as of June 30, 2000 (the "Subordination
Agreement"), executed by the undersigned, WYNNCHURCH CAPITAL PARTNERS, L.P., a Delaware limited partnership, and  WYNNCHURCH CAPITAL PARTNERS CANADA,
L.P., an Alberta limited partnership (collectively, the "Subordinated
Holders"), in favor of DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation f/k/a Bankers Trust Company, acting
in its capacity as Agent for the Lenders from time to time under the Credit Agreement referred to in the foregoing Amendment No. 3 to Credit Agreement (the
"Amendment"). 

        Each
Subordinated Holder hereby acknowledges (i) receipt of a copy of the Amendment and  (ii) that the terms and provisions thereof do not affect in any way the
obligations and liabilities of such Subordinated Holder under the Subordination
Agreement or any of the other Credit Documents, all of which obligations and liabilities remain in full force and effect and each of which is hereby reaffirmed. 

	 	 	WYNNCHURCH CAPITAL PARTNERS, L.P.
	

 	
 	

 	
 	

 	
 	

 
	 	 	By:	 	Wynnchurch Partners, L.P.
	 	 	Its:	 	General Partner
	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	By:	 	Wynnchurch Management, Inc.
	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	By:	 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	

 	
 	

 	
 	

 	
 	

 
	 	 	WYNNCHURCH CAPITAL PARTNERS CANADA, L.P.
	

 	
 	

 	
 	

 	
 	

 
	 	 	By:	 	Wynnchurch Partners Canada, L.P.
	 	 	Its:	 	General Partner
	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	By:	 	Wynnchurch Canada, GP, Inc.
	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	By:	 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

Dated
as of May 31, 2002 

 
 

ACKNOWLEDGMENT    
  

        Reference is hereby made to that certain Guaranty dated as of June 30, 2000 (the "Guaranty"), executed by
the undersigned, WEIDER NUTRITION INTERNATIONAL, INC., a Delaware corporation ("WNI"), in favor
of DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation f/k/a Bankers Trust Company, acting in its capacity as Agent for the Lenders
from time to time under the Credit Agreement referred to in the foregoing Amendment No. 3 to Credit Agreement (the "Amendment"). 

        WNI
hereby acknowledges (i) receipt of a copy of the Amendment and (ii) that the terms and
provisions thereof do not affect in any way the obligations and liabilities of WNI under the Guaranty or any of the other Credit Documents, all of which obligations and liabilities remain in full
force and effect and each of which is hereby reaffirmed. 

	 	 	WEIDER NUTRITION INTERNATIONAL, INC.
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

Dated
as of May 31, 2002 

 
 

ACKNOWLEDGMENT    
  

        Reference is hereby made to that certain Guaranty dated as of June 30, 2000 (the "Guaranty"), executed by
the undersigned, WNG HOLDINGS (INTERNATIONAL), INC., a Nevada corporation ("WHI"), in favor of  DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation f/k/a Bankers Trust Company, acting in its capacity as Agent for the Lenders from
time to time under the Credit Agreement referred to in the foregoing Amendment No. 3 to Credit Agreement (the "Amendment"). 

        WHI
hereby acknowledges (i) receipt of a copy of the Amendment and (ii) that the terms and
provisions thereof do not affect in any way the obligations and liabilities of WHI under the Guaranty or any of the other Credit Documents, all of which obligations and liabilities remain in full
force and effect and each of which is hereby reaffirmed. 

	 	 	WNG HOLDINGS (INTERNATIONAL), INC.
	

 	
 	

 	
 	

 
	 	 	By:	 	

	 	 	Name:	 	

	 	 	Title:	 	

Dated
as of May 31, 2002 

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AMENDMENT NO. 3 TO CREDIT AGREEMENT

EXHIBIT A TO AMENDMENT NO. 3 TO CREDIT AGREEMENT DATED AS OF MAY 31, 2002

ANNEX I TO CREDIT AGREEMENT DATED AS OF JUNE 30, 2000

ACKNOWLEDGMENT

ACKNOWLEDGMENT

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Exhibit 10.14  

 
 

EMPLOYMENT AGREEMENT    
  

BRUCE J. WOOD

PARTIES  

        This Employment Agreement (this "Agreement") effective as of June 1, 2002, (the "Effective Date") is entered into by and between Weider Nutrition
Group, Inc., a Utah corporation with offices at 2002 South 5070 West, Salt Lake City, Utah 84104-4836 (the "Company") and Bruce J. Wood residing at 3983 East Alta Approach, Sandy,
Utah 84092 ("Executive"). 

TERMS OF AGREEMENT  

        In consideration of the mutual covenants in this Agreement, the parties agree as follows: 

        1.    Definitions.    For purposes of this Agreement, the terms listed below shall be defined as indicated. 

        Affiliate:    A domestic or foreign business entity controlled by, controlling, under common control with, or in joint venture
with, the applicable person or entity. 

        Annual Bonus:    See Sectionn 3.2. 

        Base Salary:    The salary described in Section 3.1 for a 12 month period. 

        Board:    The Board of Directors of the Company. 

        Change in Control:    The occurrence of both (a) and (b) below. 

        (a)    Change in the Board.    There is a change in the composition of the Board over a period of twelve consecutive
months (or less) such that a majority of the Board members (rounded up to the nearest whole number) ceases to be comprised of individuals who either (i) have been Board members continuously
since the beginning of such period or (ii) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in
clause (i) who were still in office at the time such election or nomination was approved by the Board; and 

        (b)    One of:    

        (i)    Sale of Assets.    The sale of all or substantially all of the assets and business of the Company in
substantially a single transaction; 

        (ii)    Merger.    The merger or consolidation of the Company with and into another corporation if, following such
merger or consolidation, persons who were not direct or indirect shareholders of the Company immediately prior to such event (other than persons in which such original shareholders themselves have an
interest) ("New Shareholders"), will collectively own stock in the surviving corporation representing both (A) more than 30% of the surviving corporation's total equity value and
(B) more than that percentage of the surviving corporation's total equity value owned by the Weider Group, provided, however, that such merger or
consolidation shall not be covered by this paragraph (ii) if the Weider Group owns 30% or more of the surviving corporation's total equity value and no New Shareholders who constitute a "group"
within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 own more than that percentage of the surviving corporation's total equity value owned by the Weider Group; or 

        (iii)    Sale of Stock.    Acquisition of 50% or more of the fair market value of the outstanding capital stock of the
Company by one or more other persons if, following such acquisition, persons who were not direct or indirect shareholders of the Company 

 

immediately prior to such event (other than persons in which such original shareholders themselves have an interest), will collectively own stock of the Company representing more than 50% of the
Company's total equity value. 

        Competition Date:    See Section 7.4. 

        Confidential Information:    All secret proprietary information of the Company and its Affiliates, not otherwise publicly
disclosed, whether or not discovered or developed by Executive, known by Executive as a consequence of Executive's employment with the Company at any time as an employee or agent. Without limiting the
generality of the foregoing, such proprietary information shall include (a) customer lists; (b) acquisition, expansion, marketing, financial and other business information and plans;
(c) research and development; (d) computer programs; (e) sources of supply; (f) identity of specialized consultants and contractors and confidential information developed
by them for the Company and its Affiliates; (g) purchasing, operating and other cost data; (h) special customer needs, cost and pricing data; (i) manufacturing methods;
(j) quality control information; (k) inventory techniques; (l) employee information; any of which information is not generally known in the industries in which the Company and its
Affiliates are conducting business or shall at any time during Executive's employment conduct business including (without limitation) the Nutraceutical Industry. Confidential Information also includes
the overall business, financial, expansion and acquisition plans of the Company and its Affiliates, and includes information contained in manuals, memoranda, projections, minutes, plans, drawings,
designs, formula books, specifications, computer programs and records, whether or not legended or otherwise identified by the Company and its Affiliates as Confidential Information, as well as
information which is the subject of meetings and discussions and not so recorded. Notwithstanding the foregoing, Confidential Information shall not include (i) information, from a source other
than the Company, which is in Executive's possession on the date hereof or subsequently becomes available to Executive so long as such information was lawfully obtained and is not, to the knowledge of
Executive, subject to another confidentiality agreement or obligation of secrecy to the Company or another person, or (ii) information which becomes generally available to the public other than
directly or indirectly as a result of disclosure by Executive. 

        Closing Price:    The closing price, as reported in the Wall Street Journal, of a share of Common Stock (or any successor
Company's equivalent shares) on the principal exchange on which such shares are traded (currently the New York Stock Exchange), subject to equitable adjustment for stock splits, recapitalizations or
similar transactions including stock received or exchanged on any merger, consolidation or similar event. 

        Common Stock:    Class A common stock of Company. 

        Developments:    Those discoveries, inventions, improvements, advances, methods, practices and techniques, concepts and ideas,
whether or not patentable, relating to or arising out of Executive's employment activities with the Company and/or the Products. 

        Effective Date:    See preamble. 

        Employment Period:    The period from the Effective Date through the Expiration Date, except as terminated earlier or extended
as provided in this Agreement. 

        Equity Awards:    Restricted stock or other equity awards granted pursuant to the Option Plan. 

        Expiration Date:    May 31, 2004. 

        Inventions:    Those discoveries, developments, concepts and ideas, whether or not patentable, relating to the present, future
and prospective activities and Products and Services of the Company and its Affiliates, which such activities and Products and Services are known to Executive by virtue of Executive's employment with
the Company and its Affiliates. 

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        Option Plan:    The Company's 1997 Equity Plan, as amended. 

        Options:    Stock option awards granted pursuant to the Option Plan. 

        Nutraceutical Industry:    The manufacture and sale of nutritional products whether in the form of drinks, bars, herbs,
minerals, supplements, powders, vitamins or pills or otherwise but not the food and beverage industry generally. 

        Products and Services:    All products or services sold, rented, leased, rendered or otherwise made available to its customers
by the Company and its Affiliates, or otherwise the subject of the business of the Company and its Affiliates. 

        Weider Group:    Weider Health and Fitness (or its successor) and its Affiliates. 

        2.    Employment.    Subject to the terms and conditions of this Agreement, Executive hereby agrees to continue his
employment as the Chief Executive Officer of the Company reporting to the Board and to continue to perform to the best of Executive's ability, experience and talent those acts and duties and to
furnish those services to the Company and its Affiliates in connection with and related to such position as the Board shall from time to time direct, provided such acts and directives are consistent
with the duties of a chief executive officer. Executive shall continue to use Executive's best and most diligent efforts to promote the interests of the Company and its Affiliates. Executive shall
continue to devote his full business time to his duties to the Company. Executive shall continue to be provided with secretarial services, an office and similar support services and facilitates as
appropriate to Executive's position and responsibilities. 

        3.    Compensation and Benefits; Disability.    

        3.1.    Salary.    During the Employment Period, the Company shall pay Executive a Base Salary at an annual rate of
$440,000, payable in equal installments pursuant to the Company's customary payroll policies in force at the time of payment (but in no event less frequently than monthly), less required payroll
deductions. Executive's Base Salary shall be subject to review and increase in the sole discretion of the Compensation Committee of the Board. 

        3.2.    Annual Bonus.    In addition to Executive's Base Salary, during the Employment Period Executive shall be
eligible to participate in a Bonus Plan established by the Board or the Board's Compensation Committee for senior executives. The Bonus Plan will correspond to the Company's fiscal year and payments
under the Bonus Plan shall be paid to Executive within 120 days after the end of the Company's fiscal year. If, for any Company fiscal year, the Company achieves the targets of its financial
plan approved by the Board, Executive's Annual Bonus shall not be less than 100% of his Base Salary actually paid for such fiscal year. Subject to the foregoing, 80% of the amount of Executive's
Annual Bonus under the Bonus Plan shall be determined on the basis of reasonable quantitative factors and 20% of the amount of Executive's Annual Bonus under the Bonus Plan shall be determined on the
basis of reasonable qualitative factors. 

        3.3.    Other Benefits.    Executive shall be entitled, during the Employment Period, to participate, in any life
insurance, disability insurance, health insurance or hospital plans or other fringe benefits or benefit plans presently in effect and hereafter maintained by the Company for executives generally.
Executive shall also be entitled to an automobile allowance in the amount of $900 per month. 

        3.4.    Vacation.    Executive shall be entitled to such amount of vacation time as is the current Company policy for
senior executives, but in no event less than four weeks per year. 

        3.5.    Expenses.    Pursuant to the Company's customary policies in force at the time of payment, Executive shall be
promptly reimbursed, against presentation of vouchers or receipts 

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therefor, for all authorized expenses properly incurred by Executive on the Company's behalf in the performance of Executive's duties hereunder. 

        4.    Employment Period.    

        4.1.    Termination of Employment Period.    The Employment Period shall continue through the Expiration Date unless
terminated prior to such date by the earliest of (a) Executive's discharge for cause pursuant to Section 5.1, (b) Executive's discharge without cause pursuant to
Section 5.3, (c) Executive's death, (d) Executive's termination because of disability, pursuant to Section 5.4(b) or (e) termination of this Agreement by Executive
pursuant to Section 5.2 or unless extended pursuant to the following sentence. The Employment Period shall automatically be extended for up to three successive one year terms unless either
party hereto gives written notice of non-extension to the other (pursuant to Section 9) no later than three months prior to the end of the otherwise applicable term. In all events,
the post employment provisions of Section 7 shall survive termination of the Employment Period. 

        5.    Termination of Employment.    

        5.1.    By Company for Cause.    The Company may discharge Executive and terminate this Agreement for cause. As used
in this Section, "cause" shall mean any one or more than one of the following: 

        (a)  Gross
or willful misconduct of Executive during (i) the Employment Period or (ii) any prior period of employment of Executive in an executive capacity by
any person or entity if not disclosed to the Company prior to the execution hereof; 

        (b)  Executive's
conviction of a fraud or felony during the Employment Period; 

        (c)  Failure
to follow substantive written directions or resolutions of the Board; 

        (d)  drug
or alcohol abuse; or 

        (e)  any
material breach of any of the terms of this Agreement which is not corrected after notice and a reasonable cure period not to exceed 15 days. 

Upon
discharge of Executive for cause, the Company shall be relieved and discharged of all obligations to make payments to Executive which would otherwise be due under this Agreement, except as to
Base Salary earned for actual services rendered prior to the date of discharge. 

        5.2.    By Executive.    Executive may terminate this Agreement for cause. As used in this Section 5.2, "cause"
shall mean the Company's material breach of any of the terms of this Agreement. It shall also constitute "cause" hereunder if a business entity not affiliated with the Weider Group acquires 50% or
more of the fair market value of the outstanding capital stock of the Company and Executive does not become the chief executive officer of the principal operating business of such entity. 

        5.3.    By Company without Cause.    The Company may, on 30 days written notice to Executive, terminate this
Agreement without cause at any time during the Employment Period. 

        5.4.    Termination on Executive's Death or Disability.    

        (a)  This
Agreement and the Employment Period shall terminate, and the Company shall be relieved and discharged of all obligations to make further payment to Executive after
the date of the death of Executive, except as described in subsection (c). 

        (b)  If,
during the Employment Period, Executive shall become ill, disabled, or otherwise incapacitated so as to be unable regularly to perform Executive's usual duties for a
period in 

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excess of 180 total days during any consecutive 12 months, then the Company shall have the right to terminate this Agreement on 10 days' notice to Executive. 

        (c)  In
case of terminations of employment described in subsections (a) and (b), the Company shall pay to Executive, or his estate, all salary earned for actual
services rendered prior to the date of termination and, in addition, a pro-rated bonus at the level of 100% of his Base Salary (calculated as the product of his then rate of Annual Base
Salary and the fraction of the fiscal year elapsed through the date of termination of Executive's employment). 

        6.    Payments on Certain Terminations.    

        6.1.    Severance Payments.    Upon a termination of Executive's employment pursuant to Sections 5.2 or 5.3 or a
notice of non-renewal given by the Company pursuant to Section 4.1: 

        (a)  the
Company shall make payments to Executive, as liquidated damages in lieu of all other claims, of an amount equal to the sum of 

          (i)  Executive's
Base Salary and 

        (ii)  the
greater of Executive's Annual Bonus for the prior year or Executive's Base Salary. Such amount shall be paid in 12 equal monthly installments. The Company shall
have no obligation to make such payments in the event of a breach by Executive of Executive's covenants in Section 7; 

        (b)  all
Options (or Equity Awards) that would have become exercisable (or fully vested) on the next following anniversary of the date of grant shall thereupon become
exercisable (or fully vested); and, 

        (c)  all
otherwise exercisable Options shall remain exercisable until at least the 90th day following such termination of employment. 

        6.2.    Treatment of Stock Options Upon Death or Disability.    Upon a termination of Executive's employment pursuant
to Sections 5.4(a) or (b), all Options (or Equity Awards) that would have become exercisable (or fully vested) on the next following anniversary of the date of grant shall thereupon become exercisable
(or fully vested). 

        7.    Inventions, Confidential Information and Related Matters.    

        7.1.    Assignment of Inventions.    All Inventions which are at any time made by Executive, acting alone or in
conjunction with others, including those made (a) during Executive's employment under this Agreement, or (b) any extensions or modifications hereof, or (c) if based on or related
to any Confidential Information, made by Executive within one year after the termination of such employment or retention, whichever shall occur later, shall be the property of the Company and its
Affiliates. Executive agrees that Executive shall, at the cost and expense of the Company and its Affiliates, execute formal application for U.S. and other patents, and also do all other acts and
things (including, among others,
the execution and delivery of instruments of further assurance or confirmation) deemed by the Company and its Affiliates to be necessary or desirable at any time to perfect the full assignment to the
Company and its Affiliates of Executive's right and title (if any) to such Inventions. 

        7.2.    Restrictions on Use and Disclosure.    Except as required by Executive's duties hereunder, Executive shall
never, directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential Information or Inventions without the prior written consent of the Board. Nothing in this Section shall
prevent disclosure of information which has been completely disclosed in a published patent or other integrated publication of general circulation, nor shall this Section govern the right to use
Inventions for which a patent may have issued. 

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        7.3.    Return of Documents and Materials.    Upon termination of Executive's employment, Executive shall forthwith
deliver to the Company all Confidential Information and Inventions embodied in any form, including all copies, then in Executive's possession or control, whether prepared by Executive or others, as
well as all other Company property in Executive's possession or control. 

        7.4.    Competitive Activities.    From the date hereof and (a) during the term of this Agreement and
(b) thereafter until the "Competition Date" which shall be 

          (i)  in
the case of terminations of Executive's employment pursuant to Sections 5.2 or 5.3, the six month anniversary of the date of such termination, or 

        (ii)  in
the case of any other termination of Executive's employment, the twelve month anniversary of the date of such termination, 

Executive
shall not, directly or indirectly, within the territorial United States, become an employee or consultant or otherwise render services to, lend funds to, serve on the board of, invest in
(other than as a 1% or less shareholder of a publicly-traded corporation) or guarantee the debts of, any of: TwinLabs, Rexall Sundown, Leiner Health Products, Perrigo, NBTY, the Solgar division of
American Home Products, Nutraceutical, Inc. or Pharmavite or any newly created, successor or acquired businesses of same which competes with the Company in the Nutraceutical Industry or any
business newly created by Executive following termination of employment which competes with the Company in the Nutraceutical Industry. The Board may in its sole discretion give Executive written
approval to engage in such activities or render such services after termination of this Agreement if Executive and such prospective firm or business organization gives the Company written assurances,
satisfactory to the Board in its sole discretion, that the integrity of the Confidential Information, the Inventions and the good will of the Company and its majority owned Affiliates will not be
jeopardized by such employment. Executive shall, for a period of 12 months after the Competition Date notify the Company of any change in
address and identify each subsequent employment or business activity in which Executive shall engage during such 12 months, stating the name and address of the employer or business organization
and the nature of Executive's position. 

        7.5.    Solicitation of Executives.    From the date hereof until 12 months after the termination of
Executive's employment with the Company, Executive shall not, without the prior written approval of the Board of the Company, directly or indirectly, solicit, raid, entice or induce any person who
presently is or at any time during the term hereof shall be an employee of the Company or its majority owned Affiliates and who was or is eligible for a grant under the Option Plan or any successor
plan, to become employed by any other person, firm or corporation in any business in competition with the Company. 

        8.    No Other Contracts.    Executive represents and warrants that neither the execution and delivery of this
Agreement by Executive nor the performance by Executive of Executive's obligations hereunder, shall constitute a default under or a breach of the terms of any other agreement, indenture or contract to
which Executive is a party or by which Executive is bound, nor shall the execution and delivery of this Agreement by Executive or the performance of Executive's duties and obligations hereunder give
rise to any claim or charge against either Executive or the Company based upon any other contract, indenture or agreement to which Executive is a party or by which Executive is bound. 

        9.    Notices.    Any notices or communication given by any party hereto to the other party shall be in writing and
personally delivered or mailed by registered or certified mail, return receipt requested, postage prepaid. Notices shall be addressed to the parties at the addresses set forth above. Mailed notices
shall be deemed given when received. Any person entitled to receive notice may designate in 

6

 

writing, by notice to the others, such other address to which notices to such party shall thereafter be sent. 

        10.    Miscellaneous.    

        10.1.    Entire Agreement.    This Agreement contains the entire understanding of the parties in respect of its
subject matter and supersedes all prior oral and written agreements and understandings between the parties with respect to such subject matter. 

        10.2.    Amendment; Waiver.    This Agreement may not be amended, supplemented, canceled or discharged, except by
written instrument executed by the party affected thereby. No failure to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof. No waiver of
any preceding or succeeding breach of this Agreement. 

        10.3.    Binding Effect; Assignment.    The rights and obligations of this Agreement shall bind and inure to the
benefit of any successor or successors of the Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the Company's business and properties; Executive's
rights or obligations under this Agreement may not be assigned by Executive. 

        10.4.    Headings.    The headings contained in this Agreement (except those in Section 1) are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement. 

        10.5.    Governing Law; Interpretation.    This Agreement shall be construed in accordance with and governed for all
purposes by the laws and public policy of the State of Utah applicable to contracts executed and to be wholly performed within such State. Service of process in any dispute shall be effective
(a) upon the Company, if served on any senior officer of the Company; (b) upon Executive, if served at Executive's residence last known to the Company. Executive acknowledges that breach
of Sections 7.1 through 7.5 would entail irreparable injury and that, in addition to the Company's other express and implied remedies, the Company shall be entitled to injunctive and other equitable
relief to prevent any actual, intended or likely such breach. 

        10.6.    Further Assurances.    Each party agrees at any time, and from time-to-time, to
execute, acknowledge, deliver and perform, and/or cause to be executed, acknowledged, delivered and performed, all such further acts, deeds assignments, transfers, conveyances, powers of attorney
and/or assurances as may be necessary, and/or proper to carry out the provisions and/or intent of this Agreement. 

        10.7.    Gender; Singular/Plural.    In this Agreement, the use of one gender (e.g., "he", "she" and "it") shall mean
each other gender; and the singular shall mean the plural, and vice versa, all as the context may require. 

        10.8.    Severability.    The parties acknowledge that the terms of this Agreement are fair and reasonable at the date
signed by them. However, in light of the possibility of a change of conditions or differing interpretations by a court of what is fair and reasonable, the parties stipulate as follows: if any one or
more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of the provisions
contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be
construed, by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law. 

        10.9.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which will be deemed an
original. 

        10.10.    Indemnification.    The Company indemnifies Executive to the full extent available under the Company's
Articles of Incorporation and Bylaws. 

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EXECUTION

        The
parties, intending to be legally bound, executed this Agreement as of the date first above written, whereupon it became effective in accordance with its terms. 

	BRUCE J. WOOD	 	WEIDER NUTRITION INTERNATIONAL, INC.
	

 	
 	

 	
 	

 
	
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